Proposal for a COUNCIL DECISION relating to the conclusion of an Agreement between the European Community and Romania 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 Romania of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 May 2000, the Council authorised the Commission to undertake negotiations with the associated CEECs, including Romania, to conclude reciprocal tariff concessions in the fisheries sector. As a result, negotiations were held with Romania on 26 and 27 April and 29 May 2001 and 12 September 2001 to finalise these bilateral concessions. The details of the bilateral concessions are contained in Agreed Minutes that were initialled on behalf of the Commission and the Romanian authorities on 12 September and 23 October 2001 respectively. 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 Romania, from the date of entry into force of the agreement, will apply to non-sensitive fish and fishery products a 25% reduction of the tariff duties applied to fish and fishery products. One year after the entry into force of the agreement, a further reduction of 25% will be applied and two years after the entry into force of the agreement, a further 25% reduction will be applied. Three years after the entry into force of the agreement, full free trade of all non-sensitive fish and fishery products will be applied.

At the entry into force of the agreement both the Community and Romania will apply to sensitive fish and fishery products (see Annex to the attached proposal for a Protocol to the Europe Agreement) a 25% reduction of the tariff duties applied by the parties. One year after the entry into force of the agreement, a further reduction of 25% will be applied and two years after the entry into force of the agreement, a further 25% reduction will be applied. Six years after the entry into force of the agreement, full free trade of all fish and fishery products will be applied. In the case of Romania's accession before the end of the six year period, full liberalisation will of course be implemented immediately.

The Commission services are 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 Romania and the European Community.

The present proposal follows the same lines as proposals relating to other candidate countries on which the Commission has already taken a decision. It adheres to the same principles of gradual liberalisation of trade in fish and fishery products as the earlier proposals.

The Commission is requested to adopt the attached decision to propose to the Council that a Protocol be added to the Europe Agreement with Romania to implement the agreed concessions on fish and fishery products.

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 Romania.

2003/0055 (ACC)

Proposal for a COUNCIL DECISION relating to the conclusion of an Agreement between the European Community and Romania 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 Romania 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 Romania, of the other part [1], so as to provide for preferential conditions for the importation into the Community of certain fish and fishery products originating in Romania, and into Romania of certain fish and fishery products originating in the Community;

[1] OJ L 357 of 31.12.1994, p.1.

(2) To that end a new Protocol laying down the trade arrangements for certain 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 Romania 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 Romania, 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 shall notify the Community's approval of the Protocol to the Government of Romania according to its Article 4.

Done at Brussels,

For the Council

The President

ANNEX

AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY

AND ROMANIA

CONCERNING FISHERY PRODUCTS

IN THE FORM OF AN ADDITIONAL PROTOCOL

TO THE EUROPE AGREEMENT

ESTABLISHING AN ASSOCIATION BETWEEN

THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES

OF THE ONE PART, AND ROMANIA

OF THE OTHER PARTPROTOCOL

LAYING DOWN THE TRADE ARRANGEMENTS FOR

CERTAIN FISH AND FISHERY PRODUCTS BETWEEN

THE EUROPEAN COMMUNITY AND ROMANIA

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

THE GOVERNMENT OF ROMANIA, of the other part,

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

WHEREAS Chapter III of the Europe Agreement provides for negotiations to conclude reciprocal tariff concessions in the fisheries sector;

WHEREAS to this effect technical negotiations based on Article 24 of the Europe Agreement were carried out and successfully concluded between the Community and Romania to agree on reciprocal tariff concessions in the fisheries sector;

WHEREAS the negotiated concessions in the fisheries sector affect the bilateral concessions granted under the Agreement, which should, therefore, be amended by means of a Protocol adjusting the trade aspects of the Agreement;

WHEREAS the Community and Romania 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 for fish and fishery products as defined in Article 1 of Council Regulation (EC) No 104/2000 both Parties shall apply a 25% reduction of the tariff duties applied by the Community and Romania respectively for all fish and fishery products originating in the Community or Romania with the exception of products mentioned in Article 2.

One year after the date of entry into force of this trade arrangement, both Parties shall apply a further 25% reduction of the tariff duties as they were at the time of the entry into force of this arrangement.

Two years after the date of entry into force of this trade arrangement, both Parties shall apply a further 25% reduction of the tariff duties as they were at the time of the entry into force of this arrangement.

Three years after the date of entry into force of this trade arrangement, or if commonly agreed earlier, full free trade of all fish and fishery products with the exception of those mentioned in Article 2 shall be applied. Any such agreement on earlier application of full free trade of all fish and fishery products shall be implemented in accordance with Article 5 of this Protocol.

ARTICLE 2

Three years after the entry into force of this Protocol both Parties shall apply a 25% reduction of the tariff duties applied by the Community and Romania respectively to the products originating in the Community or Romania falling under the following CN codes [2]: 03019300, 030211, 03022300, 03026180, 03026911, 03026955, 030321, 03033300, 03037180, 03037911, 03037965, 03041015, 03041017, 03041019, 03042015, 03042017, 03042019, 03054945, 03055950, 03056300, 03056990, 160412, 160413, 16041511, 16041519, 16041600.

[2] As defined in Commission Regulation (EC) No 1832/2002 of 1 August 2002 amending Annex 1 to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 290, 28.10.2002, p.1).

Four years after the entry into force of this Protocol both Parties shall apply a further 25% reduction of the tariff duties as they were at the time of the entry into force of this arrangement.

Five years after the entry into force of this Protocol both Parties shall apply a further 25% reduction of the tariff duties as they were at the time of the entry into force of this arrangement.

Six years after the entry into force of this Protocol both Parties shall apply a further 25% reduction of the tariff duties as they were at the time of the entry into force of this arrangement.

ARTICLE 3

The calculation of the reductions mentioned in Articles 1 and 2 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 shall be rounded up;

(c) all the tariffs below 2% shall automatically be fixed at 0%.

ARTICLE 4

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 for acceptance.

ARTICLE 5

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

FINANCIAL STATEMENT

1. Title of operation

Proposal to add a Protocol to the Europe Agreement with Romania implementing an agreement on concessions on fish and fishery products. These concessions have been agreed and will be implemented over a period of six 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

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

5. Classification of expenditure or revenue

Import duties.

6. Type of expenditure or revenue

The proposed operation will cause a reduction in import duties levied on fish and fishery products originating in Romania.

7. Financial impact

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

The cost of the operation has been based on trade in 1999, 2000 and 2001. Due to the unpredictable levels of trade and the varying rates of duty applied to the products concerned, an estimated average duty level of 12% has been used to calculate the duty levied in 1999, 2000 and 2001. Import duties levied in 2000 showed a decrease of about 45% since 1999; duties in 2001 showed a decrease of about 63% since 2000. No increase in duty level has thus been used to calculate the estimated import duties foreseen. The estimated duty has been reduced by 25% for year one, 25% for year two, 25% for year three.

As the entry into force of the arrangements is expected to take place in the course of the year 2002, the estimated cost will be made as though 2002 is year one, 2003 is year two, 2004 is year three.

7.2 Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

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