[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 30.8.2005

COM(2005) 397 final

Proposal for a

COUNCIL DECISION

on a Community position in the Joint Committee on the implementation of Article 66 of the Euro-Mediterranean Interim Association Agreement on Trade and Cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The Interim Association Agreement forms the legal framework governing the bilateral relations between the European Union and the Palestinian Authority (PA).

2. Article 66 the Interim Association Agreement provides for the setting up of the necessary bodies for its implementation. The institutions implementing the Euro-Mediterranean Agreements must be further developed to cope with the increasing technical complexity of the subjects under discussion. These also need to be brought into line with those of other international agreements concluded by the EU. Furthermore, the functioning of the European Neighbourhood Policy and its Action Plans in a wide range of sectoral areas requires the establishment of the proposed s ubcommittee s . EU-PA bilateral relations will develop towards achieving an overall partnership. This requires a coherent approach, which must be ensured by continued close coordination between the constituent parties.

3. An institutional structure consisting of a number of subcommittees has been set up for the implementation of other Euro-Mediterranean partner countries, such as Morocco, Tunisia and Jordan. The present proposal largely follows the same scheme and structure.

4. The Palestinian Authority expressed its willingness to strengthen cooperation in the various areas covered by the provisions of the Association Agreement.

5. In view of the above, the European Commission proposes to the Council that three subcommittees be set up to support the Joint Committee in the implementation of the Association Agreement and the European Neighbourhood Policy Action Plan. The subcommittees will discuss matter of a technical nature that cannot be fully dealt with in the framework of the Joint Committee.

6. The number of subcommittees to be established will be restricted to three to take account of the limited administrative capacity of the Palestinian Authority and of the limited scope of the Interim Agreement.

7. The three subcommittees proposed will be entitled: (i) political dialogue and co-operation, (ii) economic issues and trade, including customs issues and networks, (iii) social issues and environment.

8. The objective, the subjects covered by each subcommittee and the implementing procedures are contained in the rules of procedure annexed.

Proposal for a

COUNCIL DECISION

on a Community position in the Joint Committee on the implementation of Article 66 of the Euro-Mediterranean Interim Association Agreement on Trade and Cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the second subparagraph of Article 300(2) thereof,

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

Whereas:

(1) The Euro-Mediterranean Interim Association Agreement on Trade and Cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, was signed on 24t February 1997 and entered into force on 1stJuly 1997,

(2) Article 66 of that Agreement provides for the setting up of committees (hereafter referred to as subcommittees) to assist the Joint Committee in carrying out its duties,

HAS DECIDED AS FOLLOWS:

Sole Article

The Community position to be adopted in the Joint Committee on the implementation of Article 66 of the Euro-Mediterranean Interim Association Agreement on Trade and Cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, shall be based on the draft Decision of the Joint Committee annexed to this Decision.

The subcommittees shall be chaired by a European Commission representative on behalf of the European Community and its Member States. The Member States shall be informed and may participate in the meetings of the subcommittees in question.

A representative of the Council Presidency shall express the EU's position on matters relating to Titles V and VI of the Treaty on European Union. The Commission shall be fully involved in the preparatory work and in setting the objectives of the subcommittee meetings.

Done at Brussels,

For the Council

The President

Draft

DECISION OF THE EC-PLO JOINT COMMITTEE

Setting up Interim Association Committee subcommittees

The Joint Committee of the Interim Association Agreement between the EC and the PLO (for the benefit of the Palestinian Authority),

Having regard to the Euro-Mediterranean Interim Association Agreement on Trade and Cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part,

Whereas:

(1) The EU's relations with the southern Mediterranean countries are becoming increasingly complex as a result of the implementation of the Euro-Mediterranean Agreements and the continuation of the Euro-Mediterranean partnership. Furthermore, the functioning of the European Neighbourhood Policy and its Action Plans in a wide range of sectoral areas requires the establishment of the proposed subcommittee s.

(2) Whereas the EC-PLO Interim Association Agreement has entered a new phase of implementation in the context of the European Neighbourhood Policy and developments in the region.

(3) Article 66 of the Agreement provides for the setting up of any other committee (hereafter referred to as subcommittees) that can assist it in carrying out its duties,

HAS DECIDED AS FOLLOWS:

Sole Article

The subcommittees of the EC-PLO Joint Committee listed in Annex 1 are hereby set up and the rules of procedure of those subcommittees in Annex 2 hereby adopted.

The subcommittees shall work under the authority of the Joint Committee, to which they shall report after each of their meetings. The above-mentioned subcommittees shall have no decision-making power.

The Joint Committee shall take any action needed to ensure that they operate properly. The Joint Committee may decide to set up further subcommittees or groups or to abolish existing subcommittees or groups.

This Decision shall enter into force on the day of its adoption.

Done at [...]

For the Joint Committee

ANNEX I

EC-PLO INTERIM ASSOCIATION AGREEMENT

SUBCOMMITTEES ATTACHED TO THE JOINT COMMITTEE

(1) Political dialogue and co-operation

(2) Economic Issues and trade, including customs issues and networks

(3) Social issues and environment

ANNEX II

Rules of procedures

EC-PLO Subcommittee Number 1

POLITICAL DIALOGUE AND CO-OPERATION

1. Composition and chair

The subcommittee shall be composed of representatives of the European Community and its Member States and representatives of the Palestinian Authority. It shall be chaired alternately by the two parties.

2. Role

The subcommittee shall work under the authority of the Joint Committee, to which it shall report after each meeting. The subcommittee does not have any decision-making power but may submit proposals to the Joint Committee.

3. Subject matter

The subcommittee shall discuss the implementation of the Interim Association Agreement and the related European Neighbourhood Policy Action Plan including in the areas listed below and shall assess progress on the objectives and actions which have been identified and agreed upon in the Action Plan. Where relevant, co-operation in public administration matters shall be discussed. The subcommittee shall examine any problems that may arise in the sectors listed below and shall suggest possible steps to be undertaken.

- Political dialogue and reform

Political dialogue and cooperation including on foreign and security policy issues;

Co-operation in the areas of combating terrorism, non-proliferation of weapons of mass destruction and illegal arms trade.

- Democracy and rule of law - building the institutions of an independent, democratic and viable Palestinian State

Establishment of an independent, impartial and fully functioning judiciary in line with international standards and strengthening of the separation of powers;

Organisation of transparent general and local elections according to international standards;

Acceleration of constitutional and legislative reform;

Transparency and fight against corruption, public administration and civil service reform.

- Human rights and fundamental freedoms

Legal guarantees for freedom of speech, freedom of the press, freedom of assembly and association in accordance with international standards;

Respect of human rights and basic civil liberties in accordance with the principles of international law, and foster a culture of non-violence, tolerance and mutual understanding.

The above list is not exhaustive and other subjects may be added by the Joint Committee.

The subcommittee may discuss matters relating to one, several or all of the above sectors.

4. Secretariat

A representative of the European Commission and a representative of the Palestinian Authority shall act jointly as permanent secretaries of the subcommittee.

All communications concerning the subcommittee shall be forwarded to the secretaries.

5. Meetings

The subcommittee shall meet whenever circumstances require. A meeting may be convened on the basis of a request from the chairperson of either party, channelled through their secretary, who will pass the request onto the other party. Upon receipt of a request for a subcommittee meeting, the secretary of the other party shall reply within fifteen working days.

In cases of particular urgency, subcommittees may be convened at shorter notice subject to the agreement of both parties. All requests to convene meetings should be in writing.

Each meeting of the subcommittee shall be held at a time and place agreed by both parties.

The meetings shall be convened by the secretary in charge in agreement with the chair. Before each meeting, the chair will be informed of the intended composition of the delegation of each party.

If both parties agree, the subcommittee may invite experts to its meetings to provide the specific information so requested.

6. Agenda of the meetings

All requests for items to be included in the subcommittee agenda shall be forwarded to the secretaries.

A provisional agenda will be drawn up by the chair for each meeting. It shall be forwarded by the secretary in charge to his or her counterpart not later than ten days before the beginning of the meeting.

The provisional agenda shall include the items in respect of which the secretaries have received a request for inclusion in the agenda no later than fifteen days before the beginning of the meeting. Supporting documentation must be received by both parties at least seven days ahead of the meeting. To take account of urgent matters, these time limits may be shortened provided both parties agree.

The agenda shall be adopted by the subcommittee at the beginning of each meeting.

7. Minutes

Minutes shall be taken and agreed by both secretaries after each meeting. A copy of the minutes, including the subcommittee's proposals, shall be forwarded by the secretaries of the subcommittee to the secretaries and chair of the Joint Committee.

8. Publicity

Unless otherwise decided, the meetings of the subcommittee shall not be public.

Rules of procedures

EC-PLO Subcommittee Number 2

ECONOMIC ISSUES AND TRADE, INCLUDING CUSTOMS ISSUES AND NETWORKS

1. Composition and chair

The subcommittee shall be composed of representatives of the European Community and its Member States and representatives of the Palestinian Authority. It shall be chaired alternately by the two parties.

2. Role

The subcommittee shall work under the authority of the Joint Committee, to which it shall report after each meeting. The subcommittee does not have any decision-making power but may submit proposals to the Joint Committee.

3. Subject matter

The subcommittee shall discuss the implementation of the Interim Association Agreement and the related European Neighbourhood Policy Action Plan including in the areas listed below and shall assess progress on the objectives and actions which have been identified and agreed upon in the Action Plan. Where relevant, co-operation in public administration matters shall be discussed. The subcommittee shall examine any problems that may arise in the sectors listed below and shall suggest possible steps to be undertaken.

- Financial accountability and sound management of public finances, including audit

Establishment of a modern and well-functioning system of financial control in line with international best practices;

Transparency of the PA finances, fight against fraud;

Transparency of public procurement operations;

Establishment of a modern and financially sustainable pension system.

- Economic reform and development

Conditions for the establishment and functioning of a market economy, including regulatory framework and administrative capacity.

- Trade-related issues, market and regulatory reform

Development of and facilitation of trade relations between the European Community and the Palestinian Authority, implementation of the trade provisions of the ENP Action Plan and of the Interim Association Agreement, Monitoring bilateral trade issues;

Strengthening of regional cooperation with neighbouring countries;

Development of the regulatory framework for a modern taxation system and institutions based on international best practices;

Revitalising the private sector;

Development of a statistics system based on international best practices.

- Customs issues

General customs procedures, customs nomenclature, valuation;

Rules of origin;

Tariff regimes;

Customs cooperation.

- Energy, Transport and Science and Technology

Cooperation on energy and transport issues;

Cooperation on Science and technology, research and development.

The above list is not exhaustive and other subjects may be added by the Joint Committee.

The subcommittee may discuss matters relating to one, several or all of the above sectors.

4. Secretariat

A representative of the European Commission and a representative of the Palestinian Authority shall act jointly as permanent secretaries of the subcommittee.

All communications concerning the subcommittee shall be forwarded to the secretaries.

5. Meetings

The subcommittee shall meet whenever circumstances require. A meeting may be convened on the basis of a request from the chairperson of either party, channelled through their secretary, who will pass the request onto the other party. Upon receipt of a request for a subcommittee meeting, the secretary of the other party shall reply within fifteen working days.

In cases of particular urgency, subcommittees may be convened at shorter notice subject to the agreement of both parties. All requests to convene meetings should be in writing.

Each meeting of the subcommittee shall be held at a time and place agreed by both parties.

The meetings shall be convened by the secretary in charge in agreement with the chair. Before each meeting, the chair will be informed of the intended composition of the delegation of each party.

If both parties agree, the subcommittee may invite experts to its meetings to provide the specific information so requested.

6. Agenda of the meetings

All requests for items to be included in the subcommittee agenda shall be forwarded to the secretaries.

A provisional agenda will be drawn up by the chair for each meeting. It shall be forwarded by the secretary in charge to his or her counterpart not later than ten days before the beginning of the meeting.

The provisional agenda shall include the items in respect of which the secretaries have received a request for inclusion in the agenda no later than fifteen days before the beginning of the meeting. Supporting documentation must be received by both parties at least seven days ahead of the meeting. To take account of urgent matters, these time limits may be shortened provided both parties agree.

The agenda shall be adopted by the subcommittee at the beginning of each meeting.

7. Minutes

Minutes shall be taken and agreed by both secretaries after each meeting. A copy of the minutes, including the subcommittee's proposals, shall be forwarded by the secretaries of the subcommittee to the secretaries and chair of the Joint Committee.

8. Publicity

Unless otherwise decided, the meetings of the subcommittee shall not be public .

Rules of procedures

EC-PLO Subcommittee Number 3

SOCIAL ISSUES AND ENVIRONMENT

1. Composition and chair

The subcommittee shall be composed of representatives of the European Community and its Member States and representatives of the Palestinian Authority. It shall be chaired alternately by the two parties.

2. Role

The subcommittee shall work under the authority of the Joint Committee, to which it shall report after each meeting. The subcommittee does not have any decision-making power but may submit proposals to the Joint Committee.

3. Subject matter

The subcommittee shall discuss the implementation of the Interim Association Agreement and the related European Neighbourhood Policy Action Plan including in the areas listed below and shall assess progress on the objectives and actions which have been identified and agreed upon in the Action Plan. Where relevant, co-operation in public administration matters shall be discussed. The subcommittee shall examine any problems that may arise in the sectors listed below and shall suggest possible steps to be undertaken.

- Social issues, people-to-people contacts, education, and public health

Promote women’s rights and ensure equal treatment and opportunities for women

Education, training, and youth - development a modern education system based on peace, tolerance and mutual understanding;

Development of a modern public health system.

- Environment

Steps to promote good environmental governance, to aim for prevention of deterioration of the environment, and to enhance co-operation on environmental issues.

The above list is not exhaustive and other subjects may be added by the Joint Committee.

The subcommittee may discuss matters relating to one, several or all of the above sectors.

4. Secretariat

A representative of the European Commission and a representative of the Palestinian Authority shall act jointly as permanent secretaries of the subcommittee.

All communications concerning the subcommittee shall be forwarded to the secretaries.

5. Meetings

The subcommittee shall meet whenever circumstances require. A meeting may be convened on the basis of a request from the chairperson of either party, channelled through their secretary, who will pass the request onto the other party. Upon receipt of a request for a subcommittee meeting, the secretary of the other party shall reply within fifteen working days.

In cases of particular urgency, subcommittees may be convened at shorter notice subject to the agreement of both parties. All requests to convene meetings should be in writing.

Each meeting of the subcommittee shall be held at a time and place agreed by both parties.

The meetings shall be convened by the secretary in charge in agreement with the chair. Before each meeting, the chair will be informed of the intended composition of the delegation of each party.

If both parties agree, the subcommittee may invite experts to its meetings to provide the specific information so requested.

6. Agenda of the meetings

All requests for items to be included in the subcommittee agenda shall be forwarded to the secretaries.

A provisional agenda will be drawn up by the chair for each meeting. It shall be forwarded by the secretary in charge to his or her counterpart not later than ten days before the beginning of the meeting.

The provisional agenda shall include the items in respect of which the secretaries have received a request for inclusion in the agenda no later than fifteen days before the beginning of the meeting. Supporting documentation must be received by both parties at least seven days ahead of the meeting. To take account of urgent matters, these time limits may be shortened provided both parties agree.

The agenda shall be adopted by the subcommittee at the beginning of each meeting.

7. Minutes

Minutes shall be taken and agreed by both secretaries after each meeting. A copy of the minutes, including the subcommittee's proposals, shall be forwarded by the secretaries of the subcommittee to the secretaries and chair of the Joint Committee.

8. Publicity

Unless otherwise decided, the meetings of the subcommittee shall not be public .

[1] OJ C , , p. .