establishing the position to be taken on behalf of the European Union within the General Council of the World Trade Organization on the European Union request for an extension of the WTO waiver relating to the autonomous preferential regime for Western Balkans

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The objective of this proposal is to establish the position to be taken by the European Union within the General Council of the World Trade Organization (WTO) concerning an extension of the WTO waiver on autonomous trade preferences which should be granted by the European Union to Western Balkans until 31 December 2021.

This would be the third waiver's extension by the WTO.

On 8 December 2000, the General Council of the WTO agreed to grant the European Union a waiver of its obligations under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the European Union to afford the preferential treatment to the beneficiaries countries for a period through 31 December 2006. On 28 July 2006, the European Union was granted an extension until 31 December 2011. On 5 December 2011, the European Union was granted an extension until 31 December 2016.

•Consistency with existing policy provisions in the policy area

The European Union granted preferential tariffs to the Western Balkans on the basis of Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing duty-free or preferential treatment to products originating in the Western Balkans (Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Kosovo, Montenegro and Serbia). Regulation (EC) No 2007/2000 was substantially amended several times and was codified by Council Regulation (EC) No 1215/2009. Further amendments were introduced in 2011 on the basis of Regulation (EU) No 1336/2011 of the European Parliament and of the Council of 13 December 2011, namely extending the autonomous trade preferences until 31 December 2015. Regulation (EU) No 517/2013 removed Croatia from the scope of Council Regulation (EC) No 1215/2009, following its accession to the EU.

The European Union has adopted the Regulation (EU) No 2423/2015 of the European Parliament and of the Council of 16 December 2015 further amending Council Regulation (EC) No 1215/2009 and renewing the autonomous preferential regime for the Western Balkans until 31 December 2020.

•Consistency with other Union policies

N.a.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides that when a decision having legal effect needs to be taken in a body set up by an international agreement, the Council, on a proposal from the Commission or the High Representative of the Union for Foreign Affairs and Security Policy, shall adopt a decision establishing the position to be adopted on the European Union’s behalf. The granting of a waiver on additional autonomous trade preferences granted by the European Union to the Western Balkans falls under this provision as the decision is taken in a body set up by an international agreement (the WTO General Council or Ministerial Conference) affecting the rights and obligations of the European Union.

•Subsidiarity (for non-exclusive competence)

N.a.

•Proportionality

N.a.

•Choice of the instrument