Proposal for a COUNCIL DECISION on the conclusion of an Agreement between the European Community and the Russian Federation amending the Agreement between the European Coal and Steel Community and the Government of the Russian Federation on trade in certain steel products.

(presented by the Commission)

EXPLANATORY MEMORANDUM

The European Coal and Steel Community and the Government of the Russian Federation concluded an Agreement on 9 July 2002 on trade for certain steel products.

The agreed minute n° 2 of the Agreement provides that, should there be a problem similar to the one identified during the negotiations leading to the Agreement (that is the circumvention of the Agreement by exporting boron alloyed steel products not covered by the Agreement at prices competing with non-alloyed steel products covered by the Agreement), the Parties shall enter into consultations to find an acceptable solution. Such a problem arose and the Parties entered into consultations. As a result, the Parties agreed to extend the scope of the product coverage of the Agreement with corresponding quantitative limits and to conclude a new Agreement amending that Agreement.

This proposal for a Council Decision approves the new Agreement.

2003/0192 (ACC)

Proposal for a COUNCIL DECISION on the conclusion of an Agreement between the European Community and the Russian Federation amending the Agreement between the European Coal and Steel Community and the Government of the Russian Federation on trade in certain steel products

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C [...], [...], p. [...].

Whereas:

(1) The Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part [2], entered into force on 1 December 1997.

[2] OJ L 327, 28.11.1997, p. 3.

(2) Article 21 of the Partnership and Cooperation Agreement provides that trade in European Coal and Steel Community ( hereinafter referred to as the 'ECSC') products shall be governed by Title III, save for Article 15 thereof, and by the provisions of an Agreement.

(3) The ECSC and the Government of the Russian Federation concluded on 9 July 2002 such an Agreement on trade in certain steel products [3], approved on behalf of the ECSC by the Commission Decision 2002/603/ECSC of 8 July 2002 [4].

[3] OJ L 195, 24.7.2002, p. 55.

[4] OJ L 195, 24.7.2002, p. 54.

(4) The ECSC Treaty expired on 23 July 2002 ; the Parties agreed under Article 10(2) of the above mentioned Agreement that it will be continued and that all rights and obligations shall be maintained after such expiry.

(5) The Parties entered into consultations as provided for in the agreed minute N° 2 of the above mentioned Agreement and concluded that the product coverage of the Agreement has to be extended to also include product groups SA 5 and SA 6 with corresponding quantitative limits,

HAS DECIDED AS FOLLOWS:

Article 1

1. The Agreement between the European Community and the government of the Russian Federation amending the Agreement between the ECSC and the Government of the Russian Federation concerning trade in certain steel products is hereby approved on behalf of the European Community.

2. The text of the Agreement [5] is attached to this Decision.

[5] See page x of this Official Journal.

Article 2

The President of the Council is hereby authorised to designate the persons empowered to sign the Agreement referred to in Article 1.

Done at Brussels, [...]

For the Council

The President

AGREEMENT between the European Community and the Government of the Russian Federation amending the Agreement between the European Coal and Steel Community and the Government of the Russian Federation on trade in certain steel products

THE EUROPEAN COMMUNITY,

of the one part, and

THE GOVERNMENT OF THE RUSSIAN FEDERATION,

of the other part,

being the Parties to this Agreement,

Whereas the Parties are desirous to promote the orderly and equitable development of trade in steel between the European Community (hereinafter referred to as 'the Community') and the Russian Federation (hereinafter referred to as 'Russia');

Whereas the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part, entered into force on 1 December 1997;

Whereas Article 21 of the Partnership and Cooperation Agreement provides that trade in European Coal and Steel Community ( hereinafter referred to as the 'ECSC') products shall be governed by Title III, save for Article 15 thereof, and by the provisions of an Agreement;

Whereas the ECSC and the Government of the Russian Federation concluded on 9 July 2002 such an Agreement on trade in certain steel products, hereinafter referred to as "the Agreement";

Whereas the ECSC Treaty expired on 23 July 2002 ; that the Community took over all rights and obligations contracted by the former; that the Agreement is not affected by such expiry as further stipulated in its Article 10;

Whereas in order to address the concerns raised by the Community in view of the important increase of imports into the Community of boron-alloyed steel products from Russia, the Parties entered into consultations as provided for in the agreed minute N° 2 of the Agreement and concluded that the product coverage of the Agreement has to be extended to also include product groups SA 5 and SA 6;

HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:

THE COMMISSION OF THE EUROPEAN COMMUNITIES:

THE GOVERNMENT OF THE RUSSIAN FEDERATION:

WHO HAVE AGREED AS FOLLOWS:

Article 1

The Agreement is amended as follows :

1. Annex I of the Agreement is replaced by the attached Annex I.

2. Annex II of the Agreement is replaced by the attached Annex II.

Article 2

The Parties agree that imports into the Community from Russia, of products falling within product groups SA 5 and SA 6 as defined in the attached Annex I, as from 1.1.2003 until the entry into force of this Agreement, shall be deducted from the quantitative limits of those product groups for the year 2003 set out in the attached Annex II.

Article3

Imports into the Community of goods falling within product groups SA 5 and SA 6 accompanied by a surveillance document [6] issued before the date of entry into force of this Agreement do not require an import authorization as referred to in the Agreement, notably in its Article 9, paragraph 2 of the Protocol A.

[6] Issued in accordance with Commission Regulation 76/2002 (OJ L 16, 18.1.2002, p.3.)

Article 4

This Agreement shall enter into force on the day of its signature.

Article 5

This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Russian languages, each of these texts being equally authentic.

Done at [...] on [...]

For the European Community

For the Government of the Russian Federation

ANNEX I

>TABLE POSITION>

ANNEX II

QUANTITATIVE LIMITS

(tonnes)

>TABLE POSITION>

Notes:

SA and SB are product categories

SA1 to SA6 and SB1 to SB3 are product groups