Proposal for a COUNCIL DECISION on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Tunisia concerning the reciprocal liberalisation measures and amendment of the agricultural Protocols of the EC/Tunisia Association Agreement

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Article 16 of the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Tunisia, of the other part, which is in force since 1 March 1998, states that the Community and Tunisia are to liberalise gradually their reciprocal trade in agricultural and fishery products.

2. Article 18 of the Euro-Mediterranean Agreement provides that, from 1 January 2000, the Community and Tunisia are to assess the situation with a view to determining the liberalisation measures to be applied by the two Contracting Parties with effect from 1 January 2001.

3. The Council authorised the Commission to begin negotiations with the Kingdom of Morocco, the Republic of Israel and the Republic of Tunisia with a view to negotiating greater liberalisation of agricultural trade with these countries, in keeping with the spirit of the Association Agreement and the Barcelona process.

4. Protocol No 1 of the Agreement on the arrangements applying to imports into the Community of agricultural products originating in Tunisia provides for special arrangements for olive oil originating in that country. These arrangements apply a reduced rate of customs duty to untreated olive oil originating in Tunisia in the period 1 January 1996 to 31 December 1999, up to a maximum of 46 000 tonnes per year.

These arrangements were extended for one year and expire on 31 December 2000. However, definitive arrangements should be introduced in order to avoid a break in the traditional trade in olive oil and to include the concession on olive oil in the Protocol.

5. Following negotiations, the two parties have agreed to amend Protocols Nos 1 and 3 (on agriculture) with a view to further liberalising agricultural trade in keeping with the spirit of the Association Agreement and the Barcelona process.

6. This proposal asks the Council to amend Protocols Nos 1 and 3 of the Association Agreement by means of an Agreement in the form of an exchange of letters.

2000/0334 (ACC)

Proposal for a COUNCIL DECISION on the conclusion of an Agreement in the form of an exchange of letters between the European Community and the Republic of Tunisia concerning the reciprocal liberalisation measures and amendment of the agricultural Protocols of the EC/Tunisia Association Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133, in conjunction with the first sentence of Article 300(2), thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C, p.

Whereas:

(1) Article 16 of the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Tunisia, of the other part [2], which is in force since 1 March 1998, states that the Community and Tunisia are to liberalise gradually their reciprocal trade in agricultural and fishery products.

[2] OJ L 97, 30.3.1998, p. 1.

(2) Article 18 of the Euro-Mediterranean Agreement provides that, from 1 January 2000, the Community and Tunisia are to assess the situation with a view to determining the liberalisation measures to be applied by the two Contracting Parties with effect from 1 January 2001.

(3) The Community and the Republic of Tunisia have agreed to amend Protocols Nos 1 and 3 (on agriculture) by means of an Agreement in the form of an exchange of letters. This Agreement should be approved.

(4) As the measures needed to implement this Decision are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [3], they should be adopted in accordance with the management procedure laid down in Article 4 of that Decision,

[3] OJ L 184, 17.7.1999, p. 23.

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement in the form of an exchange of letters between the European Community and the Republic of Tunisia concerning reciprocal liberalisation measures in respect of agricultural trade is hereby approved on behalf of the Community.

The text of the Agreement is attached to this Decision.

Article 2

1. The Commission shall be assisted by the Management Committee for Cereals established by Article 23 of Council Regulation (EEC) No 1766/92 [4] or, where appropriate, by the committees established by the corresponding provisions of other regulations on the common organisation of markets or by the Customs Code Committee established by Article 248a of Regulation (EEC) No 2913/92 [5].

[4] OJ L 181, 1.7.1992, p. 21. Regulation last amended by Regulation (EC) No 1666/2000 (OJ L 193, 29.7.2000, p. 37).

[5] OJ L 302, 19.10.1992, p. 1.

2. Where reference is made to this paragraph, the management procedure referred to in Article 4 of Decision 1999/468/EC shall apply, with due regard to Article 7(3) of that Decision.

3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

Article 3

The President of the Council is hereby authorised to designate the person empowered to sign the Agreement so as to bind the Community.

Article 4

The Decision shall be published in the Official Journal of the European Communities.

Done at Brussels,

For the Council

The President

ANNEX

AGREEMENT

in the form of an exchange of letters between the European Community and the Republic of Tunisia concerning the reciprocal liberalisation measures and amendment of the agricultural Protocols of the EC/Tunisia Association Agreement

Letter No 1

Letter from the European Community

Brussels, ...... ...... ...

Sir,

I have the honour of referring to the negotiations which took place under Article 16 of the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Tunisia, of the other part, in force since 1 March 1998, which states that the Community and Tunisia are to gradually liberalise their reciprocal trade in agricultural and fishery products.

These negotiations were held in accordance with Article 18 of the Euro-Mediterranean Agreement which stipulates that, from 1 January 2000, the Community and the Republic of Tunisia are to assess the situation with a view to determining the liberalisation measures to be applied by the two Parties with effect from 1 January 2001.

On the conclusion of the negotiations the two Parties agreed to the following:

1. The dates in Article 1(5) of Protocol No 1 are replaced by "from 1 January 2002 to 1 January 2005".

2. In Article 2:

a) the designation "Côteaux de Teboura" in the second sentence should read "Côteaux de Tebourba".

b) the following paragraph is added: "Wines with a designation of origin originating in Tunisia must be accompanied by a certificate indicating their origin in accordance with the model specified in the preferential agreement or by documents V I 1 or V I 2 completed in accordance with Article 9 of Regulation (EEC) No 3590/85 on the certificate and analysis report required for the importation of wine, grape juice and grape must".

3. Article 3 of Protocol No 1 is replaced by the following:

"Article 3

1. Imports of untreated olive oil falling within CN codes 1509 10 10 and 1509 10 90, wholly obtained in Tunisia and transported direct from Tunisia to the Community, shall be allowed enter the Community at a zero rate of duty from 1 January 2001, up to a maximum of 50 000 tonnes.

2. Starting on 1 January 2002, this quantity shall be increased annually by 1 500 tonnes over four years, with a view to achieving an annual quantity of 56 000 tonnes from 1 January 2005.

3. If these imports risk harming the balance on the Community market in olive oil, especially because of the Community's obligations regarding this product in the WTO, the Contracting Parties shall consult each other with a view to finding measures appropriate to the situation, acceptable to both Parties and capable of resolving the problem. "

4. The Annexes to Protocols Nos 1 and 3 are replaced by Annexes 1A and 1B hereto; a new Annex 2, comprising the model certificate for wines with a designation of origin, is hereby added to Protocol No 1.

5. From 1 January 2005 the Community and the Republic of Tunisia will assess the situation with a view to determining the liberalisation measures to be applied by the Community and Tunisia from 1 January 2006, in accordance with the objective laid down in Article 16 of the Association Agreement.

This Agreement shall be approved by the Contracting Parties in accordance with their own procedures.

The provisions of this agreement shall be applicable from 1 January 2001.

I would be grateful if you could confirm the agreement of your Government to the above.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

Letter No 2

Letter from the Republic of Tunisia

Brussels, ...... ...... ...

Sir,

I have the honour to acknowledge receipt of your letter of today's date, worded as follows:

"I have the honour of referring to the negotiations which took place under Article 16 of the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Tunisia, of the other part, in force since 1 March 1998, which states that the Community and Tunisia are to gradually liberalise their reciprocal trade in agricultural and fishery products.

These negotiations were held in accordance with Article 18 of the Euro-Mediterranean Agreement which stipulates that, from 1 January 2000, the Community and the Republic of Tunisia are to assess the situation with a view to determining the liberalisation measures to be applied by the two Parties with effect from 1 January 2001.

On the conclusion of the negotiations the two Parties agreed to the following:

3. The dates in Article 1(5) of Protocol No 1 are replaced by "from 1 January 2002 to 1 January 2005".

4. In Article 2:

a) the designation "Côteaux de Teboura" in the second sentence should read "Côteaux de Tebourba".

b) the following paragraph is added: "Wines with a designation of origin originating in Tunisia must be accompanied by a certificate indicating their origin in accordance with the model specified in the preferential agreement or by documents V I 1 or V I 2 completed in accordance with Article 9 of Regulation (EEC) No 3590/85 on the certificate and analysis report required for the importation of wine, grape juice and grape must".

4. Article 3 of Protocol No 1 is replaced by the following:

"Article 3

1. Imports of untreated olive oil falling within CN codes 1509 10 10 and 1509 10 90, wholly obtained in Tunisia and transported direct from Tunisia to the Community, shall be allowed enter the Community at a zero rate of duty from 1 January 2001, up to a maximum of 50 000 tonnes.

2. Starting on 1 January 2002, this quantity shall be increased annually by 1 500 tonnes over four years, with a view to achieving an annual quantity of 56 000 tonnes from 1 January 2005.

3. If these imports risk harming the balance on the Community market in olive oil, especially because of the Community's obligations regarding this product in the WTO, the Contracting Parties shall consult each other with a view to finding measures appropriate to the situation, acceptable to both Parties and capable of resolving the problem. "

6. The Annexes to Protocols Nos 1 and 3 are replaced by Annexes 1A and 1B hereto; a new Annex 2, comprising the model certificate for wines with a designation of origin, is hereby added to Protocol No 1.

7. From 1 January 2005 the Community and the Republic of Tunisia will assess the situation with a view to determining the liberalisation measures to be applied by the Community and Tunisia from 1 January 2006, in accordance with the objective laid down in Article 16 of the Association Agreement.

This Agreement shall be approved by the Contracting Parties in accordance with their own procedures.

The provisions of this agreement shall be applicable from 1 January 2001.

I would be grateful if you could confirm the agreement of your Government to the above."

The Republic of Tunisia has the honour of confirming its agreement with the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Republic of Tunisia

ANNEX -1 A

Protocol No 1

1. Arrangements applying to imports into the Community of agricultural products originating in Tunisia

2. Designation of origin certificate

>TABLE POSITION>

(*) The rate of reduction applies only to the ad valorem customs duty.

(1) Once Community rules governing potatoes come into force, this period will be extended to 15 April and the reduction in the rate of duty applying to quantities in excess of the quota will be 50%.

(2) Entry under this subheading is subject to the conditions laid down in the relevant Community provisions [see Articles 291 to 300 of Regulation (EEC) No 2454/93 (OJ L 253, 11.10.1993, p. 71) and subsequent amendments].

>TABLE POSITION>

(3) This concession relates only to seeds complying with the directives on the marketing of seeds and plants.

(4) The quantity of tomato concentrate will rise to 4 000 tonnes in accordance with the following timetable: 1.1.2001 - 2 500 tonnes; 1.1.2002 - 2 875 tonnes; 1.1.2003 - 3 250 tonnes; 1.1.2004 - 3 625 tonnes; from 1.1.2005 - 4 000 tonnes.

(*) The rate of reduction applies only to the ad valorem customs duty.

>TABLE POSITION>

(5) Tariff quota common to the six headings relating to mixtures of fruit.

>TABLE POSITION>

(*) The rate of reduction applies only to the ad valorem customs duty.

>TABLE POSITION>

15. We hereby certify that the wine described in this certificate is wine produced within the wine district of ...... ...... ...... and is considered by Tunisian legislation as entitled to the designation of origin'............................'. The alcohol added to this wine is alcohol of vinous origin.

16. (1)

(1) Space reserved for additional details given in the exporting country.

ANNEX 1-B

PROTOCOL No 3

on the arrangements applying to imports into Tunisia of agricultural products originating in the Community

Sole Article

The customs duties on imports into Tunisia of the products originating in the Community listed in the Annex shall not be higher than those shown in column (a) within the limits of the tariff quotas shown in column (b)

>TABLE POSITION>

(*) The quantities imported under the tariff quota opened by Tunisia within the WTO framework under the current access arrangements are deducted from the preferential tariff quota.

(1) The figure of 8 000 tonnes covers all four subheadings.

(2) From 1 July to end February.

(3) The figure of 9 700 tonnes covers all three subheadings.

>TABLE POSITION>

(*) The quantities imported under the tariff quota opened by Tunisia within the WTO framework under the current access arrangements are deducted from the preferential tariff quota.

(**) Overall quota for the eight subheadings.

(4) The rate will be reduced to 0% in five equal steps between 1 January 2001 and 1 January 2005.

(5) From 1 October to 31 May.

(6) Additional quota to the existing one subject to customs duties of 17%.

>TABLE POSITION>