Proposal for a COUNCIL DECISION relating to the conclusion of an Agreement between the European Community and the Republic of Bulgaria concerning fishery products, in the form of an additional Protocol completing the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 May 2000, the Council approved the negotiating mandate for the Commission to undertake negotiations with the associated CEECs, including the Republic of Bulgaria, to conclude reciprocal tariff concessions in the fisheries sector. As a result, negotiations were held with the Republic of Bulgaria on 4 October 2001 and 10 January 2002 to finalise these bilateral concessions. The details of the bilateral concessions are contained in Agreed Minutes that were signed on behalf of the Commission and the Bulgarian authorities on 10 January 2002. The two parties agreed on a model for gradual and reciprocal liberalisation of trade on all fish and fishery products.

The agreement states that both the Community and the Republic of Bulgaria, from the date of entry into force of the agreement, will remove the customs tariff duties applied to certain fish and fishery products listed in a specific Annex. The Community and the Republic of Bulgaria also agree to apply, from the date of entry into force of this agreement, a 30% ad valorem reduction of the customs tariff duties applied to all the remaining fish and fishery products. The following year a further reduction of 30% will be applied and two years after the entry into force of the agreement, full free trade of all fish and fishery products will be applied.

The Commission is of the opinion that the results of the technical negotiations represent a balanced and acceptable result which, in a simple administrative manner, and on a gradual basis, will lead to full free trade, without any exceptions, between the Republic of Bulgaria and the European Community.

The present proposal is one of a series on which the Council is being asked to take a decision. It adheres to the same principles of gradual liberalisation of trade in fish and fishery products as the earlier proposals.

In light of the above, the Council is requested to adopt the present decision to add a Protocol concerning trade concessions in the fisheries sector to the Europe Agreement with the Republic of Bulgaria.

2002/0099 (ACC)

Proposal for a COUNCIL DECISION relating to the conclusion of an Agreement between the European Community and the Republic of Bulgaria concerning fishery products, in the form of an additional Protocol completing the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Whereas:

(1) It is desirable to complete by means of an additional Protocol the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part [1], so as to provide for preferential conditions for the importation into the Community of fish and fishery products originating in the Republic of Bulgaria, and into the Republic of Bulgaria of fish and fishery products originating in the Community;

[1] OJ L 358 of 31.12.1994, p.3.

(2) To that end a new Protocol laying down the trade arrangements for fish and fishery products should be added to the said Europe Agreement;

(3) The Agreement in the form of a Protocol should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement between the European Community and the Republic of Bulgaria in the form of an additional Protocol concerning fishery products, completing the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, is hereby approved on behalf of the Community.

The text of the Agreement in the form of a Protocol is attached to this Decision.

Article 2

The President of the Council is authorised to designate the person empowered to sign the Agreement in order to bind the Community.

Done at Brussels,

For the Council

The President

ANNEX

AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY

AND THE REPUBLIC OF BULGARIA

CONCERNING FISHERY PRODUCTS

IN THE FORM OF AN ADDITIONAL PROTOCOL

COMPLETING THE EUROPE AGREEMENT

ESTABLISHING AN ASSOCIATION BETWEEN

THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES,

OF THE ONE PART, AND THE REPUBLIC OF BULGARIA

OF THE OTHER PART

ADDITIONAL PROTOCOL

LAYING DOWN THE TRADE ARRANGEMENTS FOR

FISH AND FISHERY PRODUCTS BETWEEN

THE EUROPEAN COMMUNITY AND THE REPUBLIC OF BULGARIA

THE EUROPEAN COMMUNITY, hereinafter referred to as 'the Community' of the one part, and

THE GOVERNMENT OF THE REPUBLIC OFBULGARIA, of the other part,

WHEREAS the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, hereinafter referred to as 'the Europe Agreement', was signed in Brussels on 8 March 1993 and entered into force on 1 February 1995;

WHEREAS technical negotiations based on Articles 21(5) and 24 of the Europe Agreement were carried out and successfully concluded between the Community and the Republic of Bulgaria to agree on reciprocal tariff concessions in the fisheries sector;

WHEREAS the Community and the Republic of Bulgaria also agreed on an administratively simple manner of implementing the negotiated tariff concessions as soon as possible on a gradual basis;

HAVE DECIDED to apply the agreed tariff concessions in view of establishing full free trade of all fish and fishery products:

Article 1

From the date of entry into force of this Protocol, both Parties shall apply full free trade for all the products specified in the Annex to this Protocol.

From date of entry into force of this Protocol, both Parties shall apply a 30 % ad valorem reduction of the customs tariff duties applied by the Community and by the Republic of Bulgaria respectively for all remaining fish and fishery products as defined in Article 1 of the Council Regulation (EC) No 104/2000.

One year after the date of entry into force of this Protocol, both Parties shall apply a further 30 % ad valorem reduction of the customs tariff duties as they were at the time of entry into force of this Protocol.

Two years after the date of entry into force of this Protocol, or if commonly agreed before this date, full free trade of all fish and fishery products will be applied.

Article 2

The calculation of the reductions mentioned in Article 1 will be carried out by using common mathematics principles taking into account that:

(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 3

This Protocol will enter into force on the first day of the month following the date on which the Parties have notified each other of the accomplishment of their internal procedures.

Article 4

This Protocol may be amended by decision of the Association Council.

ANNEX

List of products referred to in Article 1(1) of the Protocol.

Tariff No // Description

0301 93 // -- Carp, live

0302 69 11 // ---- Carp, fresh or chilled

0303 21 // -- Trout (Salmo trutta,Oncorhynchus mykiss, Oncorhynchus clarki, Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster), excluding livers and roes, frozen:

0303 50 00 // - Herrings ( Clupea harengus, Clupea pallasii), excluding livers and roes, frozen

0303 71 // -- Sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus sprattus), frozen:

0303 74 // -- Mackerel ( Scomber scombrus, Scomber australasicus, Scomber japonicus), frozen:

0303 79 // -- Other frozen fishes:

0304 10 19 // ---- Fillets of other freshwater fish, fresh or chilled

ex 0304 10 38 // ---- Fillets of herring and mackerel, fresh or chilled

ex 0304 10 91 // --- Other fresh or chilled meat of freshwater fish other than of trout

0304 20 // - Frozen fillets:

0304 90 // - Other fish meat, frozen:

0305 30 // - Fish fillets, dried, salted or in brine, but not smoked:

0305 41 00 // -- Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha, Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou and Oncorhynchus rhodurus), Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho), smoked

0305 49 // -- Other smoked fish, including fillets:

0305 69 // -- Other salted but not dried or smoked fish and other fish in brine:

Tariff No // Description

0306 13 30 // -- Shrimps of the genus Crangon, frozen

0306 23 31 // ---- Shrimps of the genus Crangon, fresh, chilled or cooked by steaming or by boiling in water

0306 23 39 // ---- Other

0307 31 10 // --- Mussels (Mytilus spp.), live, fresh or chilled

0307 39 10 // --- Mussels (Mytilus spp.), other than live, fresh or chilled

0307 49 // -- Cuttle fish (Sepia officinalis, Rossia macrosoma, Sepiola spp.) and squid (Ommastrephes spp., Loligo spp., Nototodarus spp., Sepioteuthis spp.) other than live, fresh or chilled

0307 99 13 // ---- Striped venus and other species of the family Veneridae, frozen

0511 91 // -- Products of fish or crustaceans, molluscs or other aquatic invertebrates; dead animals of Chapter 3:

1604 12 // -- Herrings, prepared or preserved:

1604 14 // -- Tunas, skipjack and bonito (Sarda spp.), prepared or preserved:

1604 19 10 // --- Salmonidae, other than salmon, prepared or preserved

1604 19 91 // ---- Fillets, raw, merely coated with batter or breadcrumbs, whether or not prefried in oil, deep frozen

1604 19 92 // ----- Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus), prepared or preserved

1604 19 93 // ----- Coalfish (Pollachius virens), prepared or preserved

1604 19 94 // ----- Hake ( Merluccius spp., Urophycis spp.), prepared or preserved

1604 20 // - Other prepared or preserved fish:

1604 30 // - Caviar and caviar substitutes:

1605 20 // - Prepared or preserved shrimps and prawns:

1605 90 // - Prepared or preserved molluscs and other aquatic invertebrates

2301 20 00 // - Flours, meals and pellets, of fish or of crustaceans, molluscs or other aquatic invertebrates

FINANCIAL STATEMENT

1. Title of operation

Proposal to add a Protocol to the Europe Agreement with the Republic of Bulgaria implementing an agreement on concessions on fish and fishery products. These concessions have been agreed and will be implemented over a period of two years, leading to full trade liberalisation of the products concerned.

2. Budget heading(s) involved

Chapter 12, Article 120

3. Legal basis

Article 133 in conjunction with Article 300(2) of the Treaty establishing the European Community

4. Description of operation

4.1 General objective

Full trade liberalisation of trade in fish and fishery products in preparation for accession of the Republic of Bulgaria to the European Union

5. Classification of expenditure or revenue

5.3 Type of revenue involved

Import duties

6. Type of expenditure or revenue

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

- But the operation will also cause a reduction in import duties paid by the Communities operators when importing fishery products into Bulgaria.

7. Financial impact

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

The following table gives the data for the years 1998, 1999 and 2000products.

>TABLE POSITION>

The estimated average duty level for fishery products is 12%.

Because of some phytosanitary problems affecting the Bulgarian products the imports data shows a decrease and it is clear that the lost of import customs duties will largely be compensated by the reductions on our imports to Bulgaria.

7.2 Itemised breakdown of cost

Commitment appropriation EUR million (at current price)

>TABLE POSITION>