establishing the position to be taken on behalf of the European Union within the General Council of the WTO on the United States' request for a WTO waiver to extend the AGOA program (AGOA)

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

The objective of this proposal is to establish the position to be taken by the European Union within the General Council of the World Trade Organization (WTO) on the United States' request for a renewal of its WTO waiver and thus allow the European Union to support this waiver request.

The granting of the US request for a renewal of the WTO waiver would allow the US to continue providing duty-free treatment to eligible products originating in beneficiary sub-Saharan African countries designated pursuant to the African Growth and Opportunity Act (AGOA) through 30 September 2025.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides that when a decision having legal effect needs to be taken in a body set up by an international agreement, the Council, on a proposal from the Commission or the High Representative of the Union for Foreign Affairs and Security Policy, shall adopt a decision establishing the position to be adopted on the European Union’s behalf. The granting of a waiver to allow the United States providing preferential tariff treatment to the eligible products originating in beneficiary sub-Saharian African countries designated pursuant to AGOA, falls under this provision as the decision is taken in a body set up by an international agreement (the WTO General Council or Ministerial Conference) affecting the rights and obligations of the European Union.

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

N.a.

4.BUDGETARY IMPLICATIONS

N.a.

5.OTHER ELEMENTS

The Commission will be authorised to take a position on behalf of the European Union to support the United States’ request for a WTO waiver to the extent necessary to permit the United States to provide duty-free treatment to eligible products originating in beneficiary sub-Saharian countries until 30 September 2025.

AGOA's objective is to alleviate poverty and promote stability and sustainable economic development in sub-Saharan Africa by fostering increased trade and investment between the US and the beneficiary countries. AGOA is also intended to encourage regional economic integration and help beneficiary countries participate more fully in the global economy.

According to the United States, the duty-free treatment provided since 2000 under AGOA complements the efforts by other WTO Members to promote growth and development in the region.

The waiver request would be the second extension of the preferential tariff-treatment. On 27 May 2009, the United States was granted a waiver of its obligations under paragraph 1 of Article I and paragraphs 1 and 2 of Article XIII, covering the period until 30 September 2015.

For the European Union, the waiver request does not pose economic concerns since the duty-free treatment does not have a direct impact on the EU trade with the beneficiary countries.

In light of these considerations, the European Union should join the consensus in favour of the waiver request in the WTO General Council.

2015/0215 (NLE)

Proposal for a