Proposal for a COUNCIL DECISION on a Community position within the EU/Mexico Joint Council concerning the amendments to the Joint Council Decision 2/2000

(presented by the Commission)

EXPLANATORY MEMORANDUM

The EU/Mexico Free Trade area was established by decisions of the EU Mexico Joint Council. Consequently the necessary adaptations to the trade provisions, following the

EU enlargement, are made by means of Joint Council decisions and have not been addressed into the Additional Protocol to the EU/Mexico Agreement that is also submitted for Council approval via another procedure.

Joint Council Decision 2/2000 provides for the establishment of a free trade area for goods in accordance with Article XXIV of the GATT. Current tariff concessions for agricultural products, processed agricultural products and fishery products have been reviewed in order to take account of traditional trade between Mexico and the incoming new EU Member States. In addition, it was necessary to add a list of the entities of the new Member States that are subject to the provisions on public procurement and to make some technical adaptations to the methods of administrative cooperation concerning origin rules.

On 26 January 2004 the Council approved a mandate for the Commission to negotiate those adaptations. Subsequent negotiations with Mexico have permitted to reach an agreement on the provisions contained in the draft EU/Mexico Joint Council Decisions that is attached to this proposal for a Council Decision.

The Commission therefore recommends the Council to adopt the enclosed Council Decision as the EU common position on the proposed EU/Mexico Joint Council Decision in Annex.

2004/0129 (ACC)

Proposal for a COUNCIL DECISION on a Community position within the EU/Mexico Joint Council concerning the amendments to the Joint Council Decision 2/2000

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof, in conjunction with Article 300(2), first subparagraph, first sentence.

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

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

Whereas:

HAS DECIDED AS FOLLOWS:

Sole Article

To adopt as a Community position within the EU-Mexico Joint Council, the annexed draft decision.

Done at Brussels, [...]

For the Council

The President

ANNEX

Decision N° /2004 of the EU-Mexico Joint Council

Of ...

Amending the Joint Council Decision 2/2000 of 23 March 2000

THE JOINT COUNCIL

Having regard to the Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the one part, and the United Mexican States, of the other part, (hereafter the "Agreement") signed in Brussels on 8 December 1997, and in particular Article 5 and Article 10 in conjunction with Article 47 thereof,

Whereas:

1. Following the accession to the European Union 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 (hereinafter "the new Member States") as of 1st May 2004 it is necessary to adapt, with effects from the same date, certain provisions of the Joint Council Decision No 2/2000 of 23 March 2000 concerning trade in goods, certification of origin and government procurement;

2. It is necessary to adopt transitional provisions with respect to the trade in transit or en route between Mexico and the new member States or in temporary storage as of the date of the accession

HAS DECIDED AS FOLLOWS:

Article 1

(1) Annex I of the Joint Council Decision 2/2000 is hereby amended in accordance with the provisions contained in Annex I to this Decision.

(2) The tariff quota for products falling within CN code 08030019 bananas, listed in Annex II to this Decision, will cease to apply when the current WTO quotas are replaced by a tariff-only regime.

(3) Parties agree to meet, at the request of any Party, to discuss the situation of bilateral trade in bananas when the current EU import regime is replaced by a tariff-only regime.

(4) This Article does not affect the content of the review clause set out in Article 10 of Decision 2/2000 of the EC-Mexico Joint Council.

Article 2

(1) The provisions of the Agreement shall be applied to goods exported from either Mexico to one of the new Member States or from one of the new Member States to Mexico, which comply with the provisions of Annex III to the Joint Council Decision No 2/2000 and that on the date of the accession of the new Member States to the European Union are either in transit or en route or are in Mexico or in a new Member State in temporary storage, in a customs warehouse or in a free zone.

(2) Preferential treatment shall 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 movement certificate EUR. 1 issued retrospectively by the customs authorities or the competent governmental authorities of the exporting country together with the documents showing that the goods have been transported directly.

Article 3

Articles 17(4) and 18(2) and Appendix IV of Annex III of Joint Council Decision 2/2000 are hereby amended in accordance with the provisions of Annex III to this decision.

Article 4

(1) The entities of the new Member States listed in Annex IV to this decision are hereby added to the relevant sections of Annex VI, Part B of Joint Council Decision 2/2000.

(2) The list of publications of the new Member States listed in Annex V to this decision are hereby added to Part B of Annex XIII of Joint Council Decision 2/2000.

Article 5

(1) This Decision shall enter into force on the date of its adoption ; article 1, paragraphs 1 and 2 ,will take effect on 1 May 2004.

(2) Notwithstanding paragraph 1, the Parties agree that, pending the completion of the internal procedures of the European Community with a view to the adoption of this Decision, the United Mexican States shall provisionally apply the provisions of this Decision as of 1 May 2004 and until the Joint Council adopts this Decision.

Done in [...], [...]

For the Joint Council [...]

ANNEX I

Tariff elimination schedule of the Community

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ANNEX II

Transitorial quota

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ANNEX III

New language versions of administrative remarks and 'invoice declaration' contained in Annex III to Decision No. 2/2000

1. Article 17(4) of Annex III to Decision No 2/2000 is hereby amended as follows;

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

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2. Article 18(2) of Annex III to Joint Council Decision No. 2/2000 is hereby amended as follows:

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

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3. The following is hereby added to Appendix IV of Annex III to Joint Council Decision No 2/2000:

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ANNEX IV

Central Governmental Entities

1. The following central governmental entities are hereby added to Annex VI Part B, Section 1 of Joint Council Decision 2/2000:

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2. The following bodies and categories of bodies referred to in Annexes I, II, VII, VIII and IX to Directive 93/38/EEC are hereby added to the Attachment to Annex VI, Part B, Section 2, to Joint Council Decision No. 2/2000:

(a) Annex I

"PRODUCTION, TRANSPORT OR DISTRIBUTION OF DRINKING WATER":

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(b) Annex II

"PRODUCTION, TRANSPORT OR DISTRIBUTION OF ELECTRICITY":

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(c) Annex VII

"CONTRACTING ENTITIES IN THE FIELD OF URBAN RAILWAY, TRAMWAY, TROLLEYBUS OR BUS SERVICES":

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(d) Annex VIII

"CONTRACTING ENTITIES IN THE FIELD OF AIRPORT FACILITIES":

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(e) Annex IX

"CONTRACTING ENTITIES IN THE FIELD OF MARITIME OR INLAND PORT OR OTHER TERMINAL FACILITIES":

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ANNEX V

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