Proposal for a COUNCIL REGULATION adopting autonomous measures concerning the importation of fish and fishery products originating in the Republic of Hungary

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 May 2000, the Council authorised the Commission to undertake negotiations on behalf of the Community with the Republic of Hungary to liberalise reciprocal trade in fish and fishery products.

Negotiations were held on 13 October 2000 and 14 December 2000.The two parties agreed on a model for simple, gradual and reciprocal tariff concessions, whose details have been recorded in the Agreed Minutes signed by each head of delegation. The main commitments made by the Community as a result of the conclusion of negotiations are as follows:

The Community shall apply a 50% reduction of the tariff duties applied to all fish and fishery products at the date of entry into force of the agreement. The following year, a further 25% reduction of the tariff duties will be applied. Two years after the date of entry into force of the agreement, the Community shall eliminate the tariff duties on all fish and fishery products.

A Protocol laying down the new trade arrangements for fish and fishery products has to be added to the Europe Agreement between the Community and the Republic of Hungary. Pending the completion of internal procedures required for the entry into force of the additional Protocol, it is proposed that, through a Council Regulation, the Community adopts autonomous measures enabling the concessions made to Hungary to apply as early as 1 January 2002. A swift implementation of the agreement is desirable in order to introduce the gradual liberalisation of trade in fish and fishery products and to give a positive political sign to Hungary in the context of the accession process.

The adoption of the proposed autonomous measures will bring forward the effective starting date for the gradual liberalisation of trade in fish and fishery products between the Community and the Republic of Hungary. It is therefore necessary to ensure that this circumstance is taken into account at the time when the new Additional Protocol to the Europe Agreement enters into force. For this purpose, the Commission will propose the conclusion of an interpretative Exchange of Letters with Hungary.

In light of the above, the Council is requested to adopt the attached Regulation implementing, on an autonomous basis, the concessions agreed between the Community and Hungary.

2002/0010 (ACC)

Proposal for a COUNCIL REGULATION adopting autonomous measures concerning the importation of fish and fishery products originating in the Republic of Hungary

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) A Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, was signed in Brussels on 16 December 1991 and entered into force on 1 February 1994 [1].

[1] OJ L 347, 31.12.1993.

(2) In accordance with the directives issued by the Council on 29 May 2000, negotiations with Hungary on a new Additional Protocol to the Europe Agreement were concluded on 14 December 2000.

(3) The new Additional Protocol, based on Article 20(5) and Article 23 of the Europe Agreement, provides for concessions on fish and fishery products.

(4) A swift implementation of the agreement forms an essential part of the results of the negotiations for the conclusion of a new Additional Protocol to the Europe Agreement with Hungary.

(5) Hungary will take all useful legislative provisions, on an autonomous basis, in order to enable the reciprocal and simultaneous implementation of concessions to the Community provided for in the Additional Protocol.

(6) It is therefore appropriate for the Community to adopt autonomous measures introducing the concessions provided for in the new Additional Protocol to the Europe Agreement.

HAS ADOPTED THIS REGULATION:

Article 1

1. The arrangements for the importation into the Community of fish and fishery products originating in the Republic of Hungary, as set out in Article 2 below, shall modify the Europe Agreement with the Republic of Hungary.

2. From the date of entry into force of the new Additional Protocol to the Europe Agreement with Hungary, the concessions provided therein shall apply taking account of the implementation measures already adopted by both Parties, in a reciprocal manner, in advance of that date. Accordingly, on the date of entry into force of the Additional Protocol, its provisions shall replace and supersede the relevant provisions of this Regulation.

Article 2

As from 1 January 2002, the Community shall apply a 50% reduction of the tariff duties applied to all fish and fishery products as defined in Article 1 of Council Regulation (EC) No 104/2000. [2]

[2] OJ L 17, 21.1.2000, p. 22.

As from 1 January 2003, the Community shall apply a further 25% reduction of the tariff duties as they were at the time this Regulation became applicable.

As from 1 January 2004, the Community shall eliminate the tariff duties on all fish and fishery products.

Article 3

The calculation of the reductions mentioned in Article 2 will be carried out using common mathematical principles.

In particular, the following rules shall apply:

(a) all the figures which have less than 50 (included) after the decimal point should be rounded down to the nearest whole number;

(b) all the figures which have more than 50 after the decimal point should be rounded up to the nearest whole number;

(c) all the tariffs below 2% should automatically be fixed at 0%.

Article 4

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities.

It shall apply from 1 January 2002.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

FINANCIAL STATEMENT

1. Title of operation

Proposal to adopt autonomous measures bringing forward in time the application of the provisions of an Additional Protocol to the Europe Agreement with Hungary laying down the trade arrangements for fish and fishery products. Reciprocal concessions have been agreed and will be implemented over a period of three years, leading to full liberalisation of trade in the products concerned.

2. Budget heading(s) involved

Chapter 12, Article 120

3. Legal basis

Article 133 of the Treaty establishing the European Community

4. Description of operation

4.1 General objective

Full trade liberalisation in fish and fishery products in preparation for accession of Hungary to the European Community.

5. Classification of expenditure or revenue

5.1 Type of revenue involved

Import duties

6. Type of expenditure or revenue

- The proposed operation will cause a reduction in import duties levied on fish and fishery products originating in Hungary,

- However, the operation will also cause a reduction in import duties paid by the Community's operators when exporting fishery products to Hungary.

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

The cost of the operation has been based on trade in 1998, 1999 and 2000. Due to the unpredictable levels of trade and the varying rates of duty applied to the products concerned, an average estimated duty level of 12% has been used to calculate the duty levied in 1998, 1999 and 2000. Import duties levied in 1999 showed an increase of almost 4% over 1998; however, duties in 2000 showed a decrease of almost 30% over 1999. No increase in duty level has thus been used to calculate the estimated import duties foreseen. The estimated duty has been reduced by 50% for year one and a further 25% for year two.

As the entry into force of the arrangements is expected to take place ion 1 January 2002, the estimated cost will be made as though 2002 is year one, 2003 is year two, 2004 is year three.

7.2 Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

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