EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 26.10.2004 
COM(2004) 739 final 
2004/0255 (ACC)   
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 2007/2000 intr oducing exceptional trade measures for 
countries and territories participating in or linked to the European Union’s Stabilisation 
and Association process, amending Re gulation (EC) No 2820/98, and repealing 
Regulations (EC) No 1763/1999 and (EC) No 6/2000 
  
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM  
1. Under the Stabilisation and Associati on Process, the Comm unity has granted 
unlimited duty-free access to the Community  market for nearly all agricultural 
commodities, including sugar, from the Western Balkans. The key aim of these measures is to revitalise the Western Balk an economies through a privileged access to 
the EU market. 
2. Steep increases in the levels  of sugar imports, in particul ar from Croatia as well as 
from Serbia and Montenegro, have raised questions about the economic sustainability 
of the developments in that sector. Gi ven current market conditions, the trade 
concessions encourage the Western Balk an countries to e xport their domestic 
production of originating sugar to the Co mmunity market while supplying domestic 
consumption from imported sugar (notably cane sugar from Brazil). However, this is 
not a sound development in the long term. 
3. The conclusions of the Thessaloniki Summ it highlighted the objective of future 
Western Balkan accessions to the European Union. To achieve this goal, these countries should develop their economies on the basis of sustainable development, 
market integration and alignment with Comm unity structures. In addition, the current 
incentives for the Western Balkans to export domestic production and import for 
domestic consumption create trade flow s for which third countries can seek 
compensation as and when the Western Balkans join the EU. 
4. The modification of the import regime fo r each of the Western Balkans countries, 
while allowing the respect of present trade co ncessions will prepare their sector for the 
adjustments needed to perform within a realistic and economically sustainable 
environment. 
5. Alongside this proposal, the Commission is presenting a draft recommendation to the 
Council in order to authoris e it to negotiate similar changes to the preferential 
arrangements in the respective bilateral agreements with Croatia and the former Yugoslav Republic of Macedonia. The prefer ential treatment on sugar should also be 
taken into account in the context of the ongoing negotiations for a new Stabilisation and Association Agreement with Albania. 
6. The present proposal includes an amendment to  the text of Article 1(1) of Regulation 
(EC) No 2007/2000 to clarify that preferenti al Community wine im ports benefit only 
from tariff quotas, rather than unlimited duty-free acc ess, under the autonomous 
measures. 
 
EN 3   EN 2004/0255 (ACC) 
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 2007/2000 intr oducing exceptional trade measures for 
countries and territories participating in or linked to the European Union’s Stabilisation 
and Association process, amending Re gulation (EC) No 2820/98, and repealing 
Regulations (EC) No 1763/1999 and (EC) No 6/2000 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing th e European Community, and in particular 
Article 133 thereof, 
Having regard to the proposal from the Commission1, 
Whereas: (1) Under Council Regulation (EC) No 2007/2000
2, the Community has extended 
duty-free access to imports from the countri es concerned of most agricultural goods, 
including sugar. 
(2) In the case of sugar, the duty-free access for unlimited quantities has created an 
incentive for Western Balkan production at le vels that are unsustainable in view of 
foreseeable developments. 
(3) The modification of the import regime for each of the Western Balkans countries, 
while allowing the respect of present trade co ncessions will prepare their sector for the 
adjustments needed to perform within a realistic and economically sustainable 
environment. 
(4) Article 1(1) of Regulation (EC) No 2007/2000 should be amended to clarify that 
preferential Community wine  imports from the Western Balkans benefit only from 
tariff quotas, rather than unlimited duty-fr ee access, under the autonomous measures, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EC) No 2007/2000 is amended as follows: 
                                                 
1 OJ C [...], [...], p. [...]. 
2 OJ L 240, 23.9.2000, p. 1. Regulation as last amended by Regulation (EC) No 607/2003, (OJ L 96, 
3.4.2003, p. 18). 
 
EN 4   EN (1) Article 1 is modified as follows: 
(a) in paragraph 1, the text “other than those of heading Nos 0102, 0201, 0202 and 
1604 of the Combined Nomenclature” is replaced by “other than those of 
heading Nos 0102, 0201, 0202, 1604, 1701, 1702 and  2204 of the Combined 
Nomenclature”; 
(b) the following paragraph 3 is added: 
“3. Imports of sugar products under headi ng Nos 1701 and 1702 of the 
Combined Nomenclature  originating in Albania, Bosnia and Herzegovina 
and Serbia and Montenegro, incl uding Kosovo, shall benefit from 
concessions provided for in Article 4.” 
(2) In Article 4, the following paragraph 4 is added: 
“4. Imports of sugar products under heading Nos 1701 and 1702 of the Combined 
Nomenclature originating in Albania, Bosnia and Herzegovina and Serbia and 
Montenegro, including Kosovo, shall be s ubject to the following duty-free tariff 
quotas: 
(a) 1 000 tonnes  for sugar products originating in Albania; 
(b) 12 000 tonnes for sugar products originating in Bosnia and Herzegovina;  
(c) 150 000 tonnes  for sugar products  originating in Serb ia and Montenegro, 
including Kosovo”. 
(3) The title of Article 6 is replaced by  "I mplementation of tariff quotas for ‘baby beef’ 
and sugar".  
(4) In Article 6 the following subparagraph is added: 
"The detailed rules for implementing the tariff quotas for ‘baby beef’ and sugar 
products under heading Nos 1701 and 1702 shall be determined by the Commission 
in accordance with the procedure laid dow n in Article 42(2) of Regulation (EC) 
No 1260/2001." 
Article 2 
This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union . 
This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
Done at Brussels, 
 For the Council 
 The President 
 
EN 5   EN FINANCIAL STATEMENT  
  
1. BUDGET HEADING: 
Chapter 10 – Agricultural duties  APPROPRIATIONS: 
Budget 2004 EUR 858,975 millions 
2. TITLE: 
Council Regulation amending Regulation (EC) No 2007/2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union’s Stabilisation and Association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC) 
No 1763/1999 and (EC) No 6/2000. 
3. LEGAL BASIS: 
Articles 133 and of the Treaty 
4. AIMS: 
To amend to preferential arrangements for the Community’s imports of sugar from Albania, Bosnia and Herzegovina, and Serbia and Montenegro, including Kosovo. 
5. FINANCIAL IMPLICATIONS 12 MONTH 
PERIOD 
 
(EUR million) CURRENT 
FINANCIAL 
YEAR 2004 
(EUR million) FOLLOWING 
FINANCIAL 
YEAR 2005 
(EUR million) 
5.0 EXPENDITURE 
– CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTIONS) 
– NATIONAL AUTHORITIES 
– OTHER – – – 
5.1 REVENUE 
– OWN RESOURCES OF THE EC  
(LEVIES/CUSTOMS DUTIES) 
– NATIONAL – – – 
  2004 2005 2006 2007 
5.0.1 ESTIMATED EXPENDITURE (1) (1) (1) (1) 
5.1.1 ESTIMATED REVENUE – – – – 
5.2 METHOD OF CALCULATION: 
– 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET?  
YES / NO 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 
THE CURRENT BUDGET?  
YES / NO 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? YES / NO 
6.3 WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? YES / NO 
OBSERVATIONS:  
The establishment of the duty-free quotas for the imports of sugar from the above mentioned countries has no 
financial impact for the EU budget.