Proposal for a COUNCIL DECISION on a Community Position concerning a Decision of the European Community - former Yugoslav Republic of Macedonia Co-operation Council implementing further liberalisation of the trade in agricultural and fisheries products

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, [1] which was concluded to make for early entry into force of the trade and trade-related provisions of the Stabilisation and Association Agreement, entered into force on 1 June 2001.

[1] OJ L 124, 4.5.2001, p. 2.

Article 16 of the said Agreement stipulates that the Community and the former Yugoslav Republic of Macedonia shall examine in the Co-operation Council, product by product and on an orderly and appropriate reciprocal basis, the opportunities for granting each other further concessions with a view to implementing greater liberalisation of the trade in agricultural and fishery products.

Negotiations with the former Yugoslav Republic of Macedonia started in December 2002. They were concluded at negotiators' level on 25 July 2003, and agreed minutes were initialled in form of an exchange of letters.

The former Yugoslav Republic of Macedonia will further liberalise or grant preferences for imports for agricultural (including processed agricultural) and fisheries products originating in the Community.

The agreed minutes were presented to COWEB, which approved the contents on 11 September 2003.

Under Article 37 of the Interim Agreement, the Co-operation Council set up by the Co-operation Agreement signed on 29 April 1997 shall perform the duties assigned to it under the Interim Agreement according to the same modalities as practised in the context of the Co-operation Agreement.

As laid down in Article 3 of Council Decision 97/831/EC of 27 November 1997 concerning the conclusion of the Co-operation Agreement [2], the position to be taken by the Community within the Co-operation Council shall be adopted by the Council acting by a qualified majority on a proposal from the Commission.

[2] OJ L 348, 18.12.1997, p. 1.

The Council is therefore asked to approve the attached proposal.

The Co-operation Council has no power to introduce the same changes to the Stabilisation and Association Agreement. However, Article 32 of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, [3] stipulates that the customs duties on imports or exports already applied in trade between the Community and the former Yugoslav Republic of Macedonia shall not be increased. After the entry into force of the Stabilisation and Association Agreement the Stabilisation and Association Council should, as foreseen in Article 29 of the Stabilisation and Association Agreement, decide to take over the same changes to the Stabilisation and Association Agreement.

[3] OJ C 213 E, 31.7.2001, p. 26.

Proposal for a COUNCIL DECISION on a Community Position concerning a Decision of the European Community - former Yugoslav Republic of Macedonia Co-operation Council implementing further liberalisation of the trade in agricultural and fisheries products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Article 3, para. 2, first sentence of Council Decision 97/831/EC of 27 November 1997 concerning the conclusion of a Co-operation Agreement between the European Community and the former Yugoslav Republic of Macedonia, [4]

[4] OJ L 348, 18.12.1997, p. 1.

Having regard to the proposal from the Commission,

Whereas:

(1) The Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, [5] entered into force on 1 June 2001.

[5] OJ L 124, 4.5.2001, p. 2.

(2) Article 16 of the said Agreement stipulates that the Community and the former Yugoslav Republic of Macedonia shall examine in the Co-operation Council, product by product and on an orderly and appropriate reciprocal basis, the opportunities for granting each other further concessions with a view to implementing greater liberalisation of the trade in agricultural and fishery products.

(3) Negotiations with the former Yugoslav Republic of Macedonia were successfully concluded to this end on 25 July 2003.

HAS DECIDED AS FOLLOWS:

Sole Article

The position concerning a Decision of the European Community - former Yugoslav Republic of Macedonia Co-operation Council implementing further liberalisation of the trade in agricultural and fisheries products shall be based on the draft Decision of the Co-operation Council attached to this Decision.

Done at Brussels,

For the Council

The President

ANNEX

DRAFT

DECISION No ... OF THE European Community - Former Yugoslav Republic of Macedonia Co-operation Council

of ...

implementing further liberalisation of the trade in agricultural and fisheries products

(.../.../...)

THE Co-operation Council,

Having regard to the Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, and in particular Article 16 and Article 38 (1) thereof,

Whereas:

(1) The Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the former Yugoslav Republic of Macedonia, of the other part, entered into force on 1 June 2001.

(2) Article 16 of the said Agreement stipulates that the Community and the former Yugoslav Republic of Macedonia shall examine in the Co-operation Council, product by product and on an orderly and appropriate reciprocal basis, the opportunities for granting each other further concessions with a view to implementing greater liberalisation of the trade in agricultural and fishery products.

(3) Having taken account of the volume of trade in agricultural and fishery products between the Parties, of their particular sensitivities, of the rules of the Community common policies for agriculture and fisheries, of the rules of the agricultural policies of the former Yugoslav Republic of Macedonia, of the role of agriculture in the former Yugoslav Republic of Macedonia's economy, of the production and export potential of its traditional branches and markets, and of the consequences of the accession of the former Yugoslav Republic of Macedonia to the WTO,

HAS DECIded as follows:

Agricultural products

(amending Article 14 (3) and Annexes IV (a) and (b) to the Interim Agreement and adding a new Annex IV (d) to the Interim Agreement)

Article 1

From 1 January 2004 the table in Annex IV (a) of the Interim Agreement shall be replaced by the table in Annex I to this Decision.

Article 2

From 1 January 2004 the table in Annex IV (b) of the Interim Agreement shall be replaced by the table in Annex II to this Decision.

Article 3

1. At the end of Article 14 (3) of the Interim Agreement the following new point (d) is inserted:

"(d) reduce progressively the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IV (d) in accordance with the following timetable:

- on 1 January 2004 each duty shall be reduced to 95 % of MFN,

- on 1 January 2005 each duty shall be reduced to 90 % of MFN,

- on 1 January 2006 each duty shall be reduced to 85 % of MFN,

- on 1 January 2007 each duty shall be reduced to 80 % of MFN,

- on 1 January 2008 each duty shall be reduced to 70 % of MFN,

- on 1 January 2009 each duty shall be reduced to 60 % of MFN,

- on 1 January 2010 each duty shall be reduced to 50 % of MFN,

- on 1 January 2011 the remaining duties shall be abolished."

2. Annex III to this decision is added to the Interim Agreement as Annex IV (d).

Article 4

For those products where during the reduction process referred to in Articles 2 and 3 the preferential tariff duty reaches a residual value of 1 per cent or less for ad valorem duties and of 0.01 euro per kg (or the appropriate specific unit) or less for specific duties, the customs duties shall be eliminated at that point.

Fisheries products

Article 5

(amending Article 15 of the Interim Agreement)

From 1 January 2004, the former Yugoslav Republic of Macedonia shall abolish the customs duties applicable on imports of fish and fisheries products originating in the Community with the exception of products listed in Annex V (b) of the Interim Agreement.

Article 6

(amending Annexes V (a) and (b) to the Interim Agreement)

The expression "Year 3" in the heading of the last column of the tables in Annexes V (a) and (b) to the Interim Agreement are replaced by "Year 3 and beyond".

Processed Agricultural Products

Article 7

(amending Annex II to Protocol 3 of the Interim Agreement)

From 1 January 2004 the table in Annex II to Protocol 3 of the Interim Agreement shall be replaced by the table in Annex IV to this Decision.

General Provisions

Article 8

This Decision shall enter into force on 1 January 2004.

Done at ...

For the Co-operation Council

The Chairman

ANNEX I

Imports into the former Yugoslav Republic of Macedonia of agricultural products originating in the Community (zero-duty tariff)

(referred to in Article 1)

>TABLE POSITION>

ANNEX II

Imports into the former Yugoslav Republic of Macedonia of agricultural products originating in the Community (zero-duty tariff within tariff quotas)

(referred to in Article 2)

>TABLE POSITION>

ANNEX III

Imports into the former Yugoslav Republic of Macedonia of agricultural products originating in the Community (Progressive tariff reduction during the transition period, zero-duty tariff from 1 January 2011)

(referred to in Article 3)

>TABLE POSITION>

>TABLE POSITION>

>TABLE POSITION>

ANNEX IV

Imports into the former Yugoslav Republic of Macedonia of Processed agricultural products originating in the Community

(referred to in Article 7)

Duties applicable to goods originating in the Community on import into the Former Yugoslav Republic of Macedonia

>TABLE POSITION>