Brussels, 4.01.2005

COM(2004) 848 final

2004/0292 (AVC)

Proposal for a

COUNCIL DECISION

on the signature and provisional application of a Protocol to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

Proposal for a

COUNCIL DECISION

on the conclusion of a Protocol to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

(presented by the Commission)

EXPLANATORY MEMORANDUM

According to the terms of Article 6(2) of the Act of Accession of the new EU Member States to the EU, accession of the new EU Member States to the Euro-Mediterranean Association Agreement is to be agreed by means of a protocol to this Agreement. The same article provides for a simplified procedure, whereby the protocol is to be concluded by the Council, acting unanimously on behalf of the Member States, and by the third country concerned. This procedure is without prejudice to the Community's own competences.

On 10 February 2004 the Council approved a mandate for the Commission to negotiate such a protocol with Morocco. These negotiations have since been completed to the satisfaction of the Commission. The text of the Protocol was initialled by the Commission and the authorities on 30 September 2004 in Brussels.

The attached proposals are for (1) a Council Decision on the signing of the Protocol and (2) a Council Decision on the conclusion of the Protocol.

The text of the protocol negotiated with Morocco is attached. The most important aspects of the protocol are the provisions for the accession of the new Member States to the EU-Morocco Agreement, the inclusion of the new official languages of the EU and, above all, the adaptation of the concession made by Morocco on trade in agricultural products to take account of the EU's enlargement.

The Commission requests the Council to approve the attached draft Council Decisions for the signing and conclusion of the Protocol.

The European Parliament will be called upon to give its assent to this Protocol.

Proposal for a

COUNCIL DECISION

on the signature and provisional application of a Protocol to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 310, in conjunction with Article 300(2), first subparagraph, first sentence, thereof,

Having regard to the Act of Accession of the new Member States to the European Union, and in particular to Article 6(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

On 10 February 2004 the Council authorised the Commission, on behalf of the European Community and its Member States, to negotiate with Morocco an Additional Protocol to the Euro-Mediterranean Association Agreement between the European Community and its Member States, on the one part, and Morocco, on the other part, to take account of the accession of the new Member States to the EU,

These negotiations have since been completed to the satisfaction of the Commission.

The text of the Protocol negotiated with the Morocco provides, in Article 12(2), for the provisional application of the Protocol before its entry into force.

Subject to its possible conclusion at a later date, the Protocol should be signed on behalf of the Community and applied provisionally,

HAS DECIDED AS FOLLOWS:

Article 1

The President of the Council is hereby authorised to designate the person(s) empowered to sign, on behalf of the European Community and its Member States, the Protocol to the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union. The text of the Protocol is annexed to this Decision.

Article 2

The agreement shall be applied provisionally from 1 May 2004, subject to its possible conclusion at a later date.

Done at Brussels,

For the Council

The President

2004/0292 (AVC)

Proposal for a

COUNCIL DECISION

on the conclusion of a Protocol to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 310 in conjunction with the second sentence of the first subparagraph of Article 300(2) and the second subparagraph of Article 300(3) thereof,

Having regard to the Act of Accession of the new Member States to the European Union, and in particular to Article 6(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the assent of the European Parliament,

Whereas:

The Protocol to the Euro-Mediterranean Association Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, was signed on behalf of the European Community and its Member States on

The Protocol should be approved,

HAS DECIDED AS FOLLOWS:

Sole Article

The Protocol to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union, is hereby approved on behalf of the European Community and its Member States. The text of the Protocol is annexed to this Decision.

Done at Brussels,

For the Council

The President

ANNEX - PROTOCOL

to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

Kingdom of Belgium

Czech Republic

Kingdom of Denmark

Federal Republic of Germany

Republic of Estonia

Hellenic Republic

Kingdom of Spain

French Republic

Ireland

Italian Republic

Republic of Cyprus

Republic of Latvia

Republic of Lithuania

Grand Duchy of Luxembourg

Republic of Hungary

Republic of Malta

Kingdom of the Netherlands

Republic of Austria

Republic of Poland

Portuguese Republic

Republic of Slovenia

The Republic of Slovakia,

Republic of Finland

Kingdom of Sweden

United Kingdom of Great Britain and Northern Ireland

(hereinafter referred to as “EC Member States”),

For the Council of the European Union

and

the European Community

(hereinafter referred to as 'the Community'),

For the Council of the European Union and the European Commission

of the one part,

the Kingdom of Morocco,

(hereinafter referred to as “Morocco”),

of the other part

Whereas:

The Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, hereinafter referred to as "the Euro-Mediterranean Agreement" was signed in Brussels on 26 February 1996 and came into force on 1 March 2000.

The Treaty concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the European Union (hereinafter referred to as “the Treaty of Accession”), was signed in Athens on 16 April 2003 and entered into force on 1 May 2004.

Pursuant to Article 6(2) of the Act of Accession, the accession of the new Contracting Parties to the Euro-Mediterranean Agreement shall be agreed by the conclusion of a protocol to the Euro-Mediterranean Agreement.

Consultations pursuant to Article 23(2) of the Euro-Mediterranean Agreement have taken place in order to ensure that account has been taken of the mutual interests of the Community and Morocco,

HAVE AGREED AS FOLLOWS:

Article 1

The Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic hereby become Contracting Parties to the Euro-Mediterranean Agreement between the European Community and its Member States, of the one part, and the Kingdom of Morocco, of the other part, and shall respectively adopt and take note, in the same manner as the other Member States of the Community, of the texts of the Agreement, as well as of the Joint Declarations, Declarations and Exchanges of Letters.

Article 2

To take account of recent institutional developments within the European Union, the Parties agree that following expiry of the Treaty establishing the European Coal and Steel Community, existing provisions in the Agreement referring to the European Coal and Steel Community shall be deemed to refer to the European Community, which has taken over all rights and obligations contracted by the European Coal and Steel Community.

AMENDMENTS TO THE TEXT OF THE EURO-MEDITERRANEAN AGREEMENT INCLUDING ITS ANNEXES AND PROTOCOLS

Article 3 (Agricultural products)

1. Protocols No 1 and 3 to the Euro-Mediterranean Agreement are replaced by Protocols 1 and 3 annexed to this Protocol and their annexes.

Article 4 (Rules of origin)

Protocol 4 shall be amended as follows:

1. Article 19(4) is amended as follows:

Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

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2. Article 20(2) is amended as follows:

The duplicate issued in this way must be endorsed with one of the following words:

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3. Article 22(4) is amended as follows:

In the cases referred to in paragraph 3(a), one of the following phrases shall be entered in box 'Remarks` of the EUR.1 movement certificate:

"PROCEDIMIENTO SIMPLIFICADO", "FORENKLET PROCEDURE", "VEREINFACHTES VERFAHREN", "AΠΛΟΥΣΤΕΥΜΕΝΗ ΔΙΑΔΙΚΑΣΙΑ", "SIMPLIFIED PROCEDURE", "PROCÉDURE SIMPLIFIÉE", "PROCEDURA SEMPLIFICATA", "VEREENVOUDIGDE PROCEDURE", "PROCEDIMENTO SIMPLIFICADO", "YKSINKERTAISTETTU MENETTELY", "FÖRENKLAT FÖRFARANDE", "ZJEDNODUšENÝ POSTUP", "LIHTSUSTATUD TOLLIPROTSEDUUR", "VIENKĀRšOTA PROCEDŪRA", "SUPAPRASTINTA PROCEDURA", "EGYSZERűSÍTETT ELJÁRÁS", "PROCEDURA SIMPLIFIKATA", "PROCEDURA UPROSZCZONA", "POENOSTAVLJEN POSTOPEK", "ZJEDNODUšENÝ POSTUP", [pic]

Article 5 (Chairing of the Association Committee)

Article 82(3) is amended as follows:

"The Association Committee shall be chaired in turn by a representative of the Commission of the European Community and by a representative of the Government of Morocco."

TRANSITIONAL PROVISIONS

Article 6 (Proofs of origin and administrative cooperation)

Proofs of origin properly issued by either Morocco or a new Member State in the framework of preferential agreements or autonomous arrangements applied between them shall be accepted in the respective countries, provided that:

a) the acquisition of such origin confers preferential tariff treatment on the basis of either the preferential tariff measures contained in the Euro-Mediterranean Agreement or in the Community scheme of generalised tariff preferences;

b) the proof of origin and the transport documents were issued no later than the day before the date of accession;

c) the proof of origin is submitted to the customs authorities within the period of four months from the date of accession.

Where goods were declared for importation in either Morocco or a new Member State, prior to the date of accession, under preferential agreements or autonomous arrangements applied between Morocco and that new Member State at that time, proof of origin issued retrospectively under those agreements or arrangements may also be accepted provided that it is submitted to the customs authorities within a period of four months from the date of accession.

Morocco and the new Member States are authorised to retain the authorisations conferring the status of “approved exporters” in the framework of preferential agreements or autonomous arrangements applied between them, provided that:

a) such a provision is also provided for in the agreement concluded between Morocco and the Community prior to the date of accession;

b) the approved exporter applies the rules of origin in force under that agreement.

These authorisations shall be replaced, no later than one year after the date of accession, by new authorisations issued under the conditions of the Agreement.

Requests for subsequent verification of proof of origin issued under the preferential agreements or autonomous arrangements referred to in paragraphs 1 and 2 above shall be accepted by the competent customs authorities of either Morocco or the new Member States for a period of three years after the issue of the proof of origin concerned and may be made by those authorities for a period of three years after acceptance of the proof of origin submitted to those authorities in support of an import declaration.

Article 7 (Goods in transit)

The provisions of the Agreement may be applied to goods exported either from Morocco to one of the new Member States or from one of the new Member States to Morocco, which comply with the provisions of Protocol 4 and which, on the date of accession, are either en route or in temporary storage, in a customs warehouse or in a free zone in Morocco or in that new Member State.

Preferential treatment may be granted in such cases, subject to the submission to the customs authorities of the importing country, within four months from the date of accession, of a proof of origin issued retrospectively by the customs authorities of the exporting country.

GENERAL AND FINAL PROVISIONS

Article 8

Under this Protocol it is agreed that no claim, request or referral can be submitted and no concession pursuant to GATT Articles XXIV.6 and XXVIII can be modified or withdrawn in relation to this enlargement of the Community.

Article 9

For 2004, the volumes of the new tariff quotas and reference quantities and increases in the volume of existing tariff quotas will be calculated as a prorata of the basic volumes, taking into account the part of the period elapsed before the application of this Protocol.

Article 10

This Protocol shall form an integral part of the Euro-Mediterranean Agreement. The annexes to this Protocol shall form an integral part thereof.

Article 11

This Protocol shall be approved by the Community, by the Council of the European Union on behalf of the Member States, and by Morocco in accordance with their own procedures.

The instruments of approval shall be deposited with the General Secretariat of the Council of the European Union.

Article 12

This Protocol shall enter into force on the first day of the first month following the date of the deposit of the last instrument of approval.

The provisions of this Protocol shall apply from 1 May 2004.

Article 13

This Protocol is drawn up in duplicate in each of the official languages of the Contracting Parties, each of these texts being equally authentic.

Article 14

The text of the Euro-Mediterranean Agreement, including the annexes and protocols forming an integral part thereof, and the Final Act together with the declarations annexed thereto shall be drawn up in the Czech, Estonian, Hungarian, Latvian, Lithuanian, Maltese, Polish, Slovak and Slovenian languages and these texts shall be authentic in the same way as the original texts.

The Association Council shall approve these texts

FOR THE MEMBER STATES

FOR THE EUROPEAN COMMUNITY

FOR THE KINGDOM OF MOROCCO,

PROTOCOL 1

concerning the arrangements applicable to imports into the Community of agricultural products originating in Morocco

Article 1

The products listed in Annex 1A, originating in Morocco, shall be admitted for import into the Community in accordance with the conditions set out below and in the Annex.

Import duties shall be either eliminated or reduced by the percentage indicated in respect of each product in column (a) of Annex 1A.

Where the Common Customs Tariff provides for the application of ad valorem customs duties and a specific customs duty in respect of certain products marked by an asterisk in column (a) or (c), the rates of reduction shown in column (a) and in column (c), as referred to in paragraph 3, shall apply only to the ad valorem customs duty.

The customs duties shall be eliminated in respect of certain products within the limits of the tariff quotas shown against them in column (b) of Annex 1A.

The Common Customs Tariff duties in respect of the quantities imported in excess of the quotas shall be reduced at the rates indicated in column (c) of that Annex.

For CN codes 0705 19 00, 0705 29 00, 0706 10 00 and 0706 90 a reference quantity indicated in column (d) shall be set. Should the volume of imports of these products exceed the reference quantity, the Community, having regard to an annual review of trade flows which it shall carry out, may make these products subject to a Community tariff quota, the volume of which shall be equal to the reference quantity. In such a case, for quantities imported in excess of the quota, the Common Customs Tariff duty shall be applied in full.

For the first year of application of the Agreement, except for tomatoes falling within CN code 0702 00 00, the volumes of the tariff quotas for which the quota period began before the entry into application of this agreement shall be calculated as a pro rata of the basic volumes, taking into account the part of the period which elapsed before this date.

For some of the products listed in Annex 1.A and indicated in column (d), the quotas shall be increased from 1 January 2004 to 1 January 2007 on the basis of four equal instalments, each corresponding to 3% of the quota amounts.

If the Community reduces the most-favoured-nation duties it applies, the phasing-out of tariffs as indicated in columns (a) and (c) shall apply to the said reduced duties.

Article 2

For fresh or chilled tomatoes falling within CN code 0702 00 00, for each period from 1 October to 31 May, hereinafter called "marketing years", under the following tariff quotas and subject to paragraph 2:

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a) ad valorem customs duties shall be eliminated,

b) the entry price level from which specific duties will be reduced to zero, hereinafter called the "agreed entry price", shall be EUR 461 per tonne.

When the total quantity of tomatoes originating in Morocco released for free circulation in the Community during a given marketing year does not exceed the sum of the basic monthly quotas and the additional quota applicable for that marketing year, the additional quota for the following marketing year shall be that indicated at line A in paragraph 1 above. Where that condition is not met during a given marketing year, the additional quota for the following year shall be that indicated at line B in paragraph 1 above. However, a maximum tolerance of 1% shall be accepted for the purpose of assessing whether this condition has been met.

Morocco undertakes to ensure that no more than 30% of this additional quota is used during any one month.

Drawings on the basic monthly tariff quotas shall be stopped on 15 January for the months from October to December each marketing year and on the second working day after 1 April for the months from January to March. The following working day, the Commission shall determine the unused quantities under the basic monthly quotas concerned, and these shall be transferred to the additional quota for that marketing year. From the above dates, all retroactive applications under one of the basic monthly tariff quotas which has been closed and any unused quantities to be returned to those quotas shall be taken from or placed in the additional tariff quota for the marketing year concerned.

Morocco shall notify the Commission of weekly exports to the Community within a space of time which allows precise and accurate reporting. That space of time must not exceed 15 days.

Article 3

For the products listed below, the agreed entry price level from which specific duties will be reduced to zero during the periods indicated shall be those set out below, and the ad valorem customs duties shall be eliminated for the quantities and periods fixed in this Article.

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Article 4

For the products referred to in Articles 2 and 3:

- if the entry price of a particular consignment is 2%, 4%, 6% or 8% below the agreed entry price, the specific customs duty under the quota shall be 2%, 4%, 6% or 8% of the agreed entry price;

- if the entry price of a particular consignment is below 92 % of the agreed entry price, the specific customs duty bound in the WTO shall apply;

- these agreed entry prices shall be reduced in the same proportions and at the same pace as the entry prices bound in the WTO.

Article 5

The aim of the specific arrangements provided for in Articles 2 and 3 of this Protocol shall be to preserve the level of Morocco's traditional exports to the Community and to avoid disturbing Community markets.

In order to ensure that the aim described in the first paragraph and Articles 2 and 3 is fully achieved and to improve market stability and continuity of supply, the two Parties shall hold consultations during the second quarter of each year, or at any time if one of the Parties so requests, no more than three working days after such a request.

Consultations shall cover trade during the previous marketing year and the outlook for the coming marketing year, in particular the market situation, production forecasts, estimated production and export prices and possible market developments.

Where necessary, the Parties shall take the necessary steps to ensure that the aim described in the first paragraph of this Article and in Articles 2 and 3 is fully achieved.

Article 6

Without prejudice to other provisions of this Agreement, if, given the particular sensitivity of the agricultural markets, imports of products originating in Morocco which are the subject of concessions granted under this Protocol cause serious disturbance to Community markets within the meaning of Article 25 of the Agreement, both Parties shall hold consultations immediately to find an appropriate solution. Pending such solution, the Community may take the measures it deems necessary.

Article 7

Wine originating in Morocco bearing a registered designation of origin shall be accompanied by a certificate indicating the origin in accordance with the model in Annex IB to this Protocol or by a V I 1 or V I 2 document annotated in accordance with Article 25 of Regulation (EC) No 883/2001 on the certificates and analyses required for imports of wine, grape juice and grape must.

PROTOCOL 3

concerning the arrangements applicable to imports into Morocco of agricultural products originating in the Community

Article 1

The import duties on imports into Morocco of products originating in the Community as listed in the Annex hereto shall be as set in column (a) of the Annex. The successive reductions provided for in this Agreement shall be made by the percentages indicated in columns (c), (e), (g), (i) and (k) for the quantities covered by the tariff quotas indicated in columns (b), (d), (f), (h) and (j).

Without prejudice to paragraph 3, if any erga omnes tariff reduction is applied after this Agreement has been signed, the reduced duty shall replace the duties indicated in column (a) of the Annex for the purposes of paragraph 1 as from the date when that reduction is applied.

For products falling within CN code ex 1001 90 99 as referred to in the Annex, the duty indicated in column (a) of the Annex shall be that applied on 1 October 2003 and shall remain at or below that level for the purposes of calculating the tariff reduction.

If the duty concerned is reduced on an erga omnes basis after that date, the percentage indicated in columns (c), (e), (g), (i) and (k) shall be adjusted according to the following rules:

- if the duty is reduced on an erga omnes basis, the percentage shall be increased by 0.275% per percentage point of reduction;

- if the duty is subsequently increased on an erga omnes basis, the percentage shall be reduced by 0.275% per percentage point of increase;

- if the duty is again adjusted either upwards or downwards, the percentage resulting from the application of the previous indents shall be adjusted using the relevant formula.

Article 2

For cereals falling within CN code ex 1001 90 99, the tariff quota shall be fixed as stipulated in the footnote on page 2 of the Annex on the basis of Moroccan output during the current year, as estimated and published by the Moroccan authorities during May. The quota will be adapted if necessary at the end of July in the light of a communication from the Moroccan authorities fixing the definitive volume of Moroccan output. However, the result of any such adjustment must be adjusted by common accord between the Parties either upwards or downwards by 5% depending on the outcome of the consultations referred to in paragraph 2.

The above tariff quota shall not apply during June and July. During the consultations provided for in the following paragraph, the Parties shall agree to consider whether to extend the timetable in the light of the forecasts for the Moroccan market. However, any extension may not go beyond 31 August.

For the purposes of managing the provisions set out in paragraph 1, and in order to ensure supplies to the Moroccan market as well as the stability and continuity of that market and to stabilise prices on the Moroccan market and preserve traditional trade flows, the following cooperation arrangements shall apply in the cereals sector.

Before the beginning of each marketing year, no later than the second half of May, the parties shall hold consultations.

The purpose of these consultations will be to discuss the market situation for cereals including, in particular, production forecasts for Moroccan common wheat, the situation of stocks, consumption, producer and export prices and possible market development as well as possibilities of adapting supply to demand.

If, after the entry into force of this Agreement, Morocco grants a larger tariff reduction on cereals falling within CN code ex 1001 90 99 to a third country under an international agreement, Morocco undertakes to grant the same tariff reduction to the Community as an autonomous measure.

Article 3

Without prejudice to other provisions of this Agreement, if, given the particular sensitivity of the agricultural markets, imports of products originating in the Community which are the subject of concessions granted under this Protocol, cause serious disturbance to the Moroccan market within the meaning of Article 25 of the Agreement, both Parties shall hold consultations immediately to find an appropriate solution. Pending such solution, Morocco may take the measures it deems necessary.

ANNEX 1A

Protocol 1

Arrangements applying to imports into the Community of agricultural products originating in Morocco

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ANNEX 1B

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Joint declaration

The Parties hereby agree to review the situation regarding the tariff preferences established in Protocol 3, in particular for the following products: animal and vegetable oils and fats falling within CN codes 1515 19 10, 1515 90 60, 1515 90 99, 1516 10 90, 1516 20 95, 1516 20 96 and 1516 20 98 and beet sugar falling within CN code 1701 12 90, in accordance with the objective provided for in Article 16 of the Association Agreement.

Joint declaration

The Parties note that this Agreement shall be applied by the Kingdom of Morocco by means of a tendering procedure for import licences for the purposes of managing the preferential quotas.

If the tendering arrangements are changed or if a system of direct payments is introduced, the Parties agree to hold consultations under Article 20 of the Association Agreement.

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