Brussels, 18.11.2004

COM(2004) 754 final

2004/0266 (AVC)

.

Proposal for a

COUNCIL DECISION

On the signature and provisional application of a Protocol to the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and the State of Israel, 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 Communities and their Member States, of the one part, and the State of Israel, 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 the State of Israel. These negotiations have since been completed to the satisfaction of the Commission. The text of the Protocol was initialled by the Commission and the Israeli authorities on 29 April 2004 and amended on 19 May 2004 in Brussels.

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

The text of the protocol negotiated with Israel is attached. The most important aspects of the protocol are provision for the accession of the new Member States to the EU-Israel Association Agreement, adaptation of the Protocol on agricultural products and inclusion of the new official languages of the EU.

The Commission would ask the Council to approve the attached draft Council Decisions for the signature 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 Communities and their Member States, of the one part, and the State of Israel, 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 particularArticle 310 in conjunction with Articles 300(2) and 300(3) thereof,

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

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

Whereas:

(1) On 10 February the Council authorised the Commission, on behalf of the European Community and its Member States, to open negotiations with Israel with a view to adjusting the Euro-Mediterranean Association Agreement between the European Community and its Member States, on the one part, and the State of Israel, on the other part, to take account of the accession of the new Member States to the EU.

(2) These negotiations have been concluded to the satisfaction of the Commission.

(3) The text of the Protocol negotiated with the State of Israel provides, in Article 13, for the provisional application of the Protocol before its entry into force.

(4) 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:

Article1

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 State of Israel, 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 attached to this Decision.

Article 2

The European Community and its Member States hereby agree to apply provisionally the terms of the Protocol, subject to its possible conclusion at a later date.

Done at Brussels, […]

For the Council

The President

2004/0266 (AVC)

Proposal for a

COUNCIL DECISION

on the conclusion of a Protocol to the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and the State of Israel, 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 Articles 300(2) and 300(3) thereof,

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

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

Having regard to the assent of the European Parliament,[?]

Whereas:

(1) The Protocol to the Euro-Mediterranean Association Agreement between the European Community and its Member States, of the one part, and the State of Israel, of the other part, was signed on behalf of the European Community and its Member States on.

(2) The Protocol should be approved,

HAS DECIDED AS FOLLOWS:

Sole Article

The Protocol to the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and the State of Israel, 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 attached to this Decision.

Done at Brussels, […]

For the Council

The President

Protocol to the Euro-Mediterranean Agreement

between the European Communities and their Member States, of the one part, and the State of Israel, 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 Kingdom of Belgium,

the Czech Republic,

the Kingdom of Denmark,

the Federal Republic of Germany,

the Republic of Estonia,

the Hellenic Republic,

the Kingdom of Spain,

the French Republic,

Ireland,

the Italian Republic,

the Republic of Cyprus,

the Republic of Latvia,

the Republic of Lithuania,

the Grand Duchy of Luxembourg,

the Republic of Hungary,

the Republic of Malta,

the Kingdom of the Netherlands,

the Republic of Austria,

the Republic of Poland,

the Portuguese Republic,

the Republic of Slovenia,

the Slovak Republic,

the Republic of Finland,

the Kingdom of Sweden,

the United Kingdom of Great Britain and Northern Ireland,

(hereinafter referred to as “Member States”),

represented by the Council of the European Union, and

the European Community and the European Atomic Energy Community,

(hereinafter referred to as “the Communities”),

represented by the Council of the European Union

and the European Commission

of the one part

and the State of Israel

of the other part

WHEREAS the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and the State of Israel, of the other part, hereinafter referred to as “the Euro-Mediterranean Agreement”, was signed in Brussels on 20 November 1995 and entered into force on 1 June 2000;

WHEREAS 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 and the Act of Accession thereto was signed in Athens on 16 April 2003;

WHEREAS, pursuant to Article 6(2) of the Act of Accession the accession of the new Contracting Parties to the Euro-Mediterranean Agreement must be agreed by the conclusion of a protocol to the Euro-Mediterranean Agreement;

WHEREAS consultations pursuant to Article 21 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 Israel,

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, hereinafter “the new Member States” hereby become contracting parties to the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and the State of Israel, 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 the Joint Declarations, Declarations and Exchanges of Letters.

Article 2

To take into account recent institutional developments within the European Union, the Parties agree that following the 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.

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

Article 3 ( Agricultural products)

Protocols No 1 and 2 to the Agreement are replaced by Protocols No 1 and 2 of this Protocol and their Annexes.

Article 4 (Processed agricultural products)

Table 2 of Annex VI to the Euro-Mediterranean Agreement, setting out tariff concessions on imports into Israel of goods originating in the Community, is complemented by one additional tariff concession, defined as follows:

+++++ TABLE +++++

Article 5 (Rules of origin)

Protocol 4 is amended as follows:

1. Article 19 (4) is replaced by the following:

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

ES "EXPEDIDO A POSTERIORI"

CS "VYSTAVENO DODATEČNĔ"

DA "UDSTEDT EFTERFØLGENDE"

DE "NACHTRÄGLICH AUSGESTELLT"

ET "VÄLJA ANTUD TAGASIULATUVALT"

EL "ΕΚΔΟΘΕΝ ΕΚ ΤΩΝ ΥΣΤΕΡΩΝ"

EN "ISSUED RETROSPECTIVELY"

FR "DÉLIVRÉ A POSTERIORI"

IT "RILASCIATO A POSTERIORI"

LV "IZSNIEGTS RETROSPEKTĪVI"

LT "RETROSPEKTYVUSIS IŠDAVIMAS"

HU "KIADVA VISSZAMENŐLEGES HATÁLLYAL"

MT "MAĦRUĠ RETROSPETTIVAMENT"

NL "AFGEGEVEN A POSTERIORI"

PL "WYSTAWIONE RETROSPEKTYWNIE"

PT "EMITIDO A POSTERIORI"

SL "IZDANO NAKNADNO"

SK "VYDANÉ DODATOČNE"

FI "ANNETTU JÄLKIKÄTEEN"

SV "UTFÄRDAT I EFTERHAND"

HE [pic] ”

2. Article 20 (2) is replaced by the following:

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

ES "DUPLICADO"

CS "DUPLIKÁT"

DA "DUPLIKAT"

DE "DUPLIKAT"

ET "DUPLIKAAT"

EL "ΑΝΤΙΓΡΑΦΟ"

EN "DUPLICATE"

FR "DUPLICATA"

IT "DUPLICATO"

LV "DUBLIKĀTS"

LT "DUBLIKATAS"

HU "MÁSODLAT"

MT "DUPLIKAT"

NL "DUPLICAAT"

PL "DUPLIKAT"

PT "SEGUNDA VIA"

SL "DVOJNIK"

SK "DUPLIKÁT"

FI "KAKSOISKAPPALE"

SV "DUPLIKAT"

HE [pic]”

Article 6 (Presidency of the Association Committee)

Article 71 (3) is amended as follows:

‘The Association Committee shall be chaired in turn by a representative of the Commission of the European Communities and by a representative of the Government of the State of Israel.’

CHAPTER TWO: TRANSITIONAL PROVISIONS

Article 7 (Proofs of origin and administrative cooperation)

1. Proofs of origin properly issued by either Israel or a new Member State under preferential agreements or autonomous arrangements applied between them shall be accepted in the respective countries under this Protocol, provided that:

(a) the acquisition of such origin confers preferential tariff treatment on the basis of the preferential tariff measures contained in this Agreement;

(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 a period of four months from the date of accession.

Where goods were declared for importation in either Israel or a new Member State, prior to the date of accession, under preferential agreements or autonomous arrangements applied between Israel 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.

2. Israel and the new Member States are authorised to retain the authorisations with which the status of “approved exporters” has been granted under preferential agreements or autonomous arrangements applied between them, provided that:

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

(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.

3. Requests for subsequent verification of proof of origin issued under the preferential agreements or autonomous arrangements referred to in paragraphs 1 and 2 shall be accepted by the competent customs authorities of either Israel or the 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 8 (Goods in transit)

1. The provisions of the Agreement may be applied to goods exported either from Israel to one of the new Member States or from one of the new Member States to Israel, 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 Israel or in that new Member State.

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

GENERAL AND FINAL PROVISIONS

Article 9

By this Protocol it is agreed that no claim, request or referral can be submitted nor any concession pursuant to GATT 1994 Articles XXIV.6 and XXVIII can be modified or withdrawn in relation to this enlargement of the Community.

Article 10

For the year 2004, the volumes of the new tariff quotas and the increases in the volumes of existing tariff quotas shall be calculated as a pro rata of the basic volumes, taking into account the part of the period elapsed before the date of entry into force of this Protocol.

Article 11

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

Article 1 2

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

2. The Parties shall notify each other of the accomplishment of the corresponding procedures referred to in the preceding paragraph. The instruments of approval shall be deposited with the General Secretariat of the Council of the European Union.

Article 1 3

1. This Protocol shall enter into force on the same day as the Treaty of Accession provided that the instruments of approval of this Protocol have been deposited before that date.

2. If not all the instruments of approval of this Protocol have been deposited before that date, 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.

3. Where the condition laid down in paragraph 1 is not fulfilled this Protocol shall apply provisionally with effect from 1 May 2004.

Article 14

This Protocol is drawn up in duplicate in the Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovak, Slovenian, Spanish, Swedish and Hebrew languages, each of these texts being equally authentic.

A rticle 15

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 STATE OF ISRAEL

ANNEX I

Protocol No 1

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

1. The products listed in the Annex, originating in Israel shall be admitted for importation into the Community, according to the conditions contained hereafter and in the Annex.

2. a) Customs duties are eliminated or reduced as indicated in column “a”.

b) For certain products, for which the Common Customs Tariff foresees the application of an ad valorem duty and a specific duty, the rates of reduction, indicated in columns “a” and “c”, only apply to the ad valorem duty. However, for the products corresponding to the Codes 0105 12 00, 0207, 0404 10, 0407 00, 0709 90 60, 2204 21 and 2209, the duty reductions also apply to the specific duty.

c) For certain products, customs duties are eliminated within the limit of the tariff quotas listed in column “b” for each of them. These tariff quotas shall apply on an annual basis from 1 January to 31 December, unless otherwise specified.

d) For the quantities imported in excess of the quotas, the common customs duties are, according to the product concerned, applied in full or reduced, as indicated in column “c”.

3. For certain products, the exemption of customs duties is granted in the framework of reference quantities as indicated in column “d”.

Should the volume of imports of one 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 the product in question subject to a Community tariff quota, the volume of which shall be equal to the reference quantity. In that case, for quantities imported in excess of the quota, the common customs duty is, according to the product concerned, applied in full or reduced as indicated in column “c”.

4. As indicated in column “e”, for some products, for which neither a quota nor a reference quantity is fixed, the Community may fix a reference quantity as provided for in point 3 if, in the light of the annual review of trade flows which it shall carry out, it establishes that the volume of imports of a product or products threatens to cause difficulties on the Community market. If subsequently, the product is subject to a tariff quota under the conditions set out in point 3, for quantities imported in excess of the quota, the customs duty is, according to the product concerned, applied in full or reduced, as indicated in column “c”.

5. For the first year of application, the volumes of the tariff quotas and the reference quantities shall be calculated as a pro rata of the basic volumes, taking into account the part of the period elapsed before the application of this Protocol.

6. For all the products listed in the Annex, the tariff quota and references quantity volumes are increased from 1 January 2004 to 1 January 2007, in four equal instalments, each corresponding to 3% of these volumes.

ANNEX TO PROTOCOL No 1

+++++ TABLE +++++

ANNEX II

Protocol No 2

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

1. The products listed the Annex originating in the Community shall be admitted for importation into Israel according to the conditions contained herein and in the Annex.

2. Import duties on imports are either eliminated or reduced to the level indicated in column “a”, within the limit of the annual tariff quota listed in column “b”, and subject to the specific provisions indicated in column “e”.

3. For the quantities imported in excess of the tariff quotas, the customs duties are, according to the product concerned, applied in full or reduced as indicated in column “c”.

4. For certain products for which no tariff quota is fixed, reference quantities are fixed as indicated in column “d”.

Should the volume of imports of one of the products exceed the reference quantity, Israel, having regard to an annual review of trade flows which it shall carry out, may make the product in question subject to a tariff quota, the volume of which shall be equal to the reference quantity. In that case, for quantities imported in excess of the quota, the duty referred to in point 3 shall apply.

5. For products for which neither a tariff quota nor a reference quantity is fixed, Israel may fix a reference quantity as provided for in point 4 if, in the light of the annual review of trade flows which it shall carry out, it establishes that the volume of imports of a product or products threatens to cause difficulties on the Israeli market. If subsequently, the product is subjected to a tariff quota under the conditions set out in point 4, the provisions of point 3 shall apply.

6. For the first year of application, the volumes of the tariff quotas and the reference quantities shall be calculated as a pro rata of the basic volumes, taking into account the part of the period elapsed before the date of entry into force of this agreement.

7 For all the products listed in the Annex, the tariff quota and references quantity volumes are increased from 1 January 2004 to 1 January 2007, in four equal instalments, each corresponding to 3% of these volumes.

ANNEX TO PROTOCOL No 2

+++++ TABLE +++++

Declaration by the European Community

The amendments to the Association Agreement adopted under the Additional Protocol do not concern outstanding questions about rules of origin and related issues thereto.

Declaration by the State of Israel

The amendments of the Association Agreement adopted under the Additional Protocol are without prejudice to any future outcome of the issue of rules of origin.

[1] OJ C […] […], p. […]

[2] OJ C […] […], p. […]

[3] OJ C […] […], p. […]

[i] CN codes corresponding to Regulation (EC) No 1789/2003 (OJ L 281 of 30 October 2003).

[ii] Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of t[iii]8BMPVW\`gi‘ his Annex, by the coverage of the CN codes. Where "ex" CN codes are indicated, the preferential scheme is to be determined by the application of the CN codes and corresponding description taken together.

[iv] Duty reduction only applies to ad valorem customs duties except for the products corresponding to the following codes: 0105 12 00, 0207, 0404 10, 0407 00, 0709 90 60, 2204 21 and 2209.

[v] Entry under this subheading is subject to the conditions laid down in the relevant Community provisions (Regulation (EC) No 790/2000 of 14 April 2000 (OJ No L 95, 15.4.2000), and subsequent amendments.

[vi] Within this tariff quota, the specific duty provided in the Community’s list of concessions to the WTO is reduced to zero, for the period from 1 December to 31 May, if the entry price is not less than € 264/tonne, being the entry price agreed between the European Community and Israel. If the entry price for a consignment is 2, 4, 6 or 8 % lower than the agreed entry price, the specific customs quota duty shall be equal respectively to 2, 4, 6 or8% of this agreed entry price. If the entry price of a consignment is less than 92% of the agreed entry price, the specific customs duty bound within the WTOshall apply.

[vii] Notwithstanding the rules for the interpretation of the Harmonised System (HS) or of the Israeli tariff nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the HS codes or of the Israeli tariff codes. Where "ex" HS codes or "ex" Israeli tariff codes are indicated, the preferential scheme is to be determined bythe application of the HS codes or Israeli tariff codes and corresponding description taken together.