Draft DECISION No 2/2001 OF THE EC/DENMARK-FAROE ISLANDS JOINT COMMITTEE amending Table II of the Annex to Protocol 1 to the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part - Draft common position of the Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Under Protocol No 1 of the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, [1] signed on 6 December 1996, the Community granted tariff concessions for shrimps, prawns and Norway lobsters, prepared or preserved, from the Faroe Islands, subject to an annual tariff quota of 2 000 tonnes.

[1] OJ No L 53, 22.02.97, p. 2.

2. The Faroe Islands requested that the tariff quota be increased by 4 000 tonnes to an annual total of 6 000 tonnes.

3. Pursuant to Article 36 of the Agreement, which states that at the request of the Faroe Islands, the Commission shall consider improving possibilities of access for specific products, the Commission considers that in view of the structure of the preferential regime already applied to imports into the Community of such products originating from Iceland and Norway in particular, the small risk of any adverse effect on the Community market as a result of a moderate increase in this quota, the satisfactory level of cooperation between the EC and the Faroe Islands in the sector and the exhaustion of the tariff quota for 2000, it is reasonable to approve an increase in the tariff quota of 1 000 tonnes, bringing it to an annual total of 3 000 tonnes

4. The EC/Denmark-Faroe Islands Joint Committee established under Article 31 of the Agreement should therefore adopt a Decision, under Article 34(1), to amend the Annex to Protocol No 1 to the Agreement.

5. In view of the above, the Commission proposes that Council adopt the text of the attached draft Decision, at its earliest convenience, as the Community's common position in the EC/Denmark-Faroe Islands Joint Committee.

Draft DECISION No 2/2001 OF THE EC/DENMARK-FAROE ISLANDS JOINT COMMITTEE amending Table II of the Annex to Protocol 1 to the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part

THE JOINT COMMITTEE,

Having regard to the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, and in particular Article 34(1) thereof,

Whereas:

(1) Under the Annex to Protocol No 1 to the Agreement, the Community granted tariff concessions for shrimps, prawns and Norway lobsters, prepared or preserved, from the Faroe Islands, subject to an annual tariff quota of 2 000 tonnes.

(2) The authorities of the Faroe Islands requested that the tariff concessions granted by the Community for those products be increased.

(3) It is reasonable to authorise such an increase.

(4) Table II of the Annex to Protocol 1 to the Agreement should be amended to this end,

HAS DECIDED AS FOLLOWS:

Article 1

Table II of the Annex to Protocol 1 to the Agreement is amended as follows:

>TABLE POSITION>

Article 2

This Decision shall enter into force on the first day of the second month following the date of its adoption.

Done at Brussels, [...]

For the Joint Committee,

The Chairman

FINANCIAL STATEMENT

1. Budget heading involved:

Chapter 12, Article 120

2. Legal basis:

Article 133 of the Treaty

3. Title of the measure:

Draft Decision No 2/2001 of the EC/Denmark-Faroe Islands Joint Committee amending Protocol 1 to the Agreement

4. Objective:

To improve conditions of access for specific products from the Faroe Islands

5. Method of calculation

5.1. Tariff quotas

>TABLE POSITION>

5.2. Tariff ceilings

Not applicable.

6. Loss of revenue

Raising the quota by 1000 tonnes will entail a loss of revenue averaging EUR 1 336 000 a year.