[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 17.10.2007

COM(2007) 437 final

Proposal for a

COUNCIL DECISION

on a Community Position concerning a Decision of the EC – the former Yugoslav Republic of Macedonia Stabilisation and Association Council amending Protocol 2 (on steel products) to the Stabilisation and Association Agreement

(presented by the Commission)

EXPLANATORY MEMORANDUM

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, entered into force on 1 April 2004.

The Stabilisation and Association Council established by Article 108 of the said Agreement surpervises the implementation of that Agreement and examines any major issues arising within the framework of the Agreement and any other bilateral or international issues of mutual interest.

As provided for in Article 7(1) and (2) of Protocol 2 on steel products to the said Agreement, both sides have established a rapid information system on trade in steel products, in the form of a double-checking system, without quantitative limits, for the import into the Community of steel products originating in the former Yugoslav Republic of Macedonia. Given the progress made in the restructuring of the steel industry of the former Yugoslav Republic of Macedonia, it is appropriate to abolish the double-checking system. As provided for in Article 7(3) of the same Protocol, the double-checking system may be abolished by means of a Decision of the Stabilisation and Association Council.

The draft decision of the Stabilisation and Association Council abolishing this system has been agreed in technical consultations and confirmed by exchange of letters with the former Yugoslav Republic of Macedonia dated respectively 27 July 2007 and 23 August 2007.

As laid down by Article 2(1) of Council and Commission Decision 2004/239/EC, Euratom of 23 February 2004 on the conclusion of the said Agreement, the Community position in the Stabilisation and Association Council is to be established by decision of the Council, acting on a proposal from the Commission.

The Council is therefore invited to approve the attached proposal for the Community position.

Proposal for a

COUNCIL DECISION

on a Community Position concerning a Decision of the EC – the former Yugoslav Republic of Macedonia Stabilisation and Association Council amending Protocol 2 (on steel products) to the Stabilisation and Association Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the second subparagraph of Article 300(2) thereof,

Having regard to Council and Commission Decision 2004/239/EC, Euratom of 23 February 2004 concerning the conclusion 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[1], and in particular Article 2(1) thereof,

Having regard to the proposal from the Commission[2],

Whereas:

(1) Article 7 of Protocol 2 to the Stabilisation and Association Agreement establishes a double-checking system, without quantitative limits, for the import into the Community of steel products originating in the former Yugoslav Republic of Macedonia.

(2) Annex I to Protocol 2 of the Stabilisation and Association Agreement contains the methodology of this double-checking system.

(3) Article 7(3) of Protocol 2 of the Stabilisation and Association Agreement lays down that the Stabilisation and Association Council may decide to amend Annex I to Protocol 2 or abolish the double-checking system,

HAS DECIDED AS FOLLOWS:

Sole Article

The position to be adopted by the Community within the Stabilisation and Association Council established by Article 108 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, in relation to Article 7 of Protocol 2 to the said Agreement and Annex I to that Protocol shall be based on the draft Decision of the Stabilisation and Association Council annexed to this Decision.

Done at Brussels,

For the Council

The President

ANNEX

Draft

DECISION OF THE EC - THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA STABILISATION AND ASSOCIATION COUNCIL

amending Protocol 2 (on steel products) of the EC – the former Yugoslav Republic of Macedonia Stabilisation and Association Agreement

THE STABILISATION AND ASSOCIATION COUNCIL,

Having regard to 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,

Whereas:

(1) Article 7 of Protocol 2 of the Stabilisation and Association Agreement establishes a double-checking system, without quantitative limits, for the import into the Community of steel products originating in the former Yugoslav Republic of Macedonia.

(2) Important progress has been made in the necessary restructuring and conversion programme for the steel industry in the former Yugoslav Republic of Macedonia.

(3) The need for an administrative procedure for the rapid provision of information on the trend in trade flows in order to increase transparency and to avoid possible diversion of trade has disappeared.

(4) Consequently, there is no longer a need for a double-checking system, without quantitative limits, for the import into the Community of steel products originating in the former Yugoslav Republic of Macedonia. Protocol 2 should therefore be amended accordingly,

HAS DECIDED AS FOLLOWS:

Sole Article

Article 7 of Protocol 2 to the EC – the former Yugoslav Republic of Macedonia Stabilisation and Association Agreement, and Annex I to this Protocol, referring to the aforementioned Article 7, shall be deleted from the Stabilisation and Association Agreement.

This Decision shall enter into force on [1 January 2008].

Done at Brussels, […]

For the Stabilisation and Association Council |

The President |

[1] OJ L 84, 20.3.2004, p. 1.

[2] OJ C […], […], p. […].