[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 12.8.2005

COM(2005) 372 final

2005/0152 (AVC)

Proposal for a

COUNCIL DECISION

concluding the additional protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, 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 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

(presented by the Commission)

EXPLANATORY MEMORANDUM

Ten new Member States acceded to the European Union on 1 May 2004. Under Article 6(2) of the Act 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 and the adjustment of the Treaties on which the European Union is founded (hereinafter the ‘Act of Accession’), the accession of the new Member States to the Agreement on Trade, Development and Cooperation (TDCA) with the Republic of South Africa must be approved by concluding a protocol to that Agreement. Article 6(2) provides for a simplified procedure, as the protocols are to be concluded by the Council of the European Union, acting unanimously on behalf of the Member States, and the third country concerned. This procedure is without prejudice to the Community’s own competences.

Consequently, the Commission has negotiated this Additional Protocol, for the EC part on behalf of the European Community and for the national competence part on behalf of the Member States, on the basis of the negotiating directives adopted by the Council on 26 April 2004, and in consultation with a committee of the representatives of the Member States.

The Additional Protocol provides for the necessary technical adaptations of the TDCA that ensue from the accession of the new contracting parties, in particular regarding:

- Institutional provisions: the protocol includes a number of adjustments brought about by the accession of the new Member States to this mixed agreement and an increase in the number of official languages.

- Trade provisions: the TDCA provides for trade liberalisation between the European Union and the Republic of South Africa, which in some cases is limited to tariff quotas. These tariff quotas have been reviewed on the basis of traditional trade between the new Member States, on the one hand, and the Republic of South Africa, on the other. The Additional Protocol makes adjustments to these where required.

- Rules of origin: the multilingual provisions in Protocol 1 to the TDCA concerning the definition of the concept of “originating products” and methods of administrative cooperation have been amended to include the languages of the new Member States.

The Protocol as set out above has been negotiated and agreed with the Republic of South Africa.

On 28 February 2005 the Council adopted a decision[1] on the signing and provisional application of the protocol. The protocol has been signed on 25 June 2005 in Pretoria.

The current proposal is for a Council Decision concluding the protocol.

2005/0152 (AVC)

Proposal for a

COUNCIL DECISION

concluding the additional protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, 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 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

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 Article 300(2), first subparagraph, and the second subparagraph of Article 300(2) thereof,

Having regard to the 2003 Act of Accession, 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 Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part, to take account of the accession of the ten new Member States to the European Union, has been signed on behalf of the European Community and the Member States on 25 June 2005 in accordance with Council Decision 2005/206/EC[2].

(2) Pending its entry into force, the Additional Protocol has been applied on a provisional basis as from 1 May 2004.

(3) The Additional Protocol should be concluded.

HAS DECIDED AS FOLLOWS:

Article 1

The Additional Protocol to the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, 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 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 , is hereby approved on behalf of the European Community and its Member States.

The text of the Additional Protocol[3] is attached to this Decision.

Article 2

The President of the Council shall on behalf of the European Community and its Member States, give the notification provided for in Article 9(2) of the Additional Protocol.

Done at Brussels,

For the Council

The President

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): 21 DEV Activity: 21 03 Geographical Cooperation |

TITLE OF ACTION: |

1. BUDGET LINE(S) + HEADING(S)

None

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): N/A

2.2. Period of application:

From 1 May 2004

2.3. Overall multi-annual estimate of expenditure:

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

€ million ( to three decimal places)

Year 2003 | 2004 | 2005 | 2006 | 2007 | 2008 and subs. Years | Total |

Commitments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

Payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

(b) Technical and administrative assistance and support expenditure (see point 6.1.2)

Commitments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

Payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

Subtotal a+b |

Commitments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 15.0 |

Payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

Commitments/ payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

TOTAL a+b+c |

Commitments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 15.0 |

Payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |

2.4. Compatibility with financial programming and financial perspective

[X] Proposal is compatible with existing financial programming.

Proposal will entail reprogramming of the relevant heading in the financial perspective.

Proposal may require application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue: [4]

[X] Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

OR

Proposal has financial impact – the effect on revenue is as follows:

(NB All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.)

(€ million to one decimal place)

Prior to action [Year n-1] | Situation following action |

Non-comp | Diff | NO | NO | NO | N° [4] |

4. LEGAL BASIS

Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part,

Treaty of Accession of the ten New Member States to the Community.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention [5]

5.1.1. Objectives pursued

Accession of the new Member States to the Agreement on Trade, Development and Cooperation (TDCA) with the Republic of South Africa by the conclusion of a protocol to this Agreement.

5.1.2. Measures taken in connection with ex ante evaluation

No specific ex ante evaluation has been conducted.

5.1.3. Measures taken following ex post evaluation

No specific ex post evaluation has been conducted.

5.2. Action envisaged and budget intervention arrangements

5.3. Methods of implementation

Implementation methods will be consistent with the general implementation rules of the TDCA.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

(The method of calculating the total amounts set out in the table below must be explained by the breakdown in Table 6.2. )

6.1.1. Financial intervention

No financial interventions foreseen.

Commitments (in € million to three decimal places)

Breakdown | 2003 | 2004 | 2005 | 2006 | 2007 | [n+5 and subs. Years] | Total |

No actions planned : | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |

TOTAL |

6.1.2. Technical and administrative assistance, support expenditure and IT expenditure (commitment appropriations) |

[Year n] | [n+1] | [n+2] | [n+3] | [n+4] | [n+5 and subs. years] | Total |

1) Technical and administrative assistance |

a) Technical assistance offices |

b) Other technical and administrative assistance: - intra muros: - extra muros: of which for construction and maintenance of computerised management systems |

Subtotal 1 |

2) Support expenditure |

a) Studies |

b) Meetings of experts |

c) Information and publications |

Subtotal 2 |

TOTAL |

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)[6]

The actions and measures to be funded will be defined by the feasibility study.

Commitments (in € million to three decimal places)

Breakdown | Type of outputs (projects, files ) | Number of outputs (total for years 1…n) | Average unit cost | Total cost (total for years 1…n) |

1 | 2 | 3 | 4=(2X3) |

Action 1 - Measure 1 - Measure 2 Action 2 - Measure 1 - Measure 2 - Measure 3 etc. |

TOTAL COST |

If necessary explain the method of calculation

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

No impact on staff or administrative expenditure is anticipated.

7.1. Impact on human resources

Types of post | Staff to be assigned to management of the action using existing and/or additional resources | Total | Description of tasks deriving from the action |

Number of permanent posts | Number of temporary posts |

Officials or temporary staff | A B C | If necessary, a fuller description of the tasks may be annexed. |

Other human resources |

Total |

7.2. Overall financial impact of human resources

Type of human resources | Amount (€) | Method of calculation * |

Officials Temporary staff |

Other human resources (specify budget line) |

Total |

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

Budget line (number and heading) | Amount € | Method of calculation |

Overall allocation (Title A7) A0701 – Missions A07030 – Meetings A07031 – Compulsory committees 1 A07032 – Non-compulsory committees 1 A07040 – Conferences A0705 – Studies and consultations Other expenditure (specify) |

Information systems (A-5001/A-4300) |

Other expenditure - Part A (specify) |

Total |

The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

I. Annual total (7.2 + 7.3) II. Duration of action III. Total cost of action (I x II) | € years € |

(In the estimate of human and administrative resources required for the action, DGs/Services must take into account the decisions taken by the Commission in its orientation/APS debate and when adopting the preliminary draft budget (PDB). This means that DGs must show that human resources can be covered by the indicative pre-allocation made when the PDB was adopted.

Exceptional cases (i.e. those where the action concerned could not be envisaged when the PDB was being prepared) will have to be referred to the Commission for a decision on whether and how (by means of an amendment of the indicative pre-allocation, an ad hoc redeployment exercise, a supplementary/amending budget or a letter of amendment to the draft budget) implementation of the proposed action can be accommodated.)

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

Follow-up arrangements will be no different from those already planned in the TDCA.

8.2. Arrangements and schedule for the planned evaluation

Arrangements for evaluation will be no different from those already planned in the TDCA.

9 ANTI-FRAUD MEASURES

Fraud prevention and protection measures will be no different from those already planned in the TDCA.

[1] OJ L68 of 15 March 2005, p. 32.

2 OJ L68, 15.03.2005, p.32

3 OJ L68, 15.03.2005, p.33

[2] For further information, see separate explanatory note.

[3] For further information, see separate explanatory note.

[4] For further information, see separate explanatory note.