Proposal for a COUNCIL REGULATION establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for an adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreement with Hungary

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. On 30 March 1999, the Council authorised the Commission to open negotiations for additional mutual agricultural concessions in the framework of the Europe Agreements between the European Community and the associated Central and Eastern European Countries.

2. The negotiations, which have been undertaken in the overall context of the accession process, have been based on Article 20(5) of the Europe Agreement with Hungary. Article 20(5) provides that the Community and Hungary shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions taking account of the volume of trade in agricultural products between them, of their particular sensitivity, of the rules of common agricultural policy of the Community and of the rules of the agricultural policy of the associated country.

3. According to the Council decision, the negotiations should lead to a fair equilibrium, both in terms of exports and imports, between the interests of the European Community and its Member States and those of the associated countries.

4. The result of the negotiations between the Commission and the Republic of Hungary on additional agricultural concessions provides for an immediate and full liberalisation of the imports into the Community of some agricultural products, as well as the exports of those products from the Community to the Republic of Hungary. The scope for concessions within tariff quotas has also been enlarged compared to the reciprocally currently granted concession. As a consequence of the new agreement approximately two thirds of the bilateral trade of agricultural products will be free of custom duties.

5. As a result of the adjustments agreed with Hungary, a new Additional Protocol to the Europe Agreement with Hungary has to be established. A swift implementation of the adjustments forms an essential part of the results of the negotiations for the conclusion of a new Additional Protocol to the Europe Agreement with Hungary. Because of the duration of the procedure for the adoption of such a new protocol, a new Additional Protocol cannot enter into force on 1 July 2000.

6. A Council Regulation, made on an autonomous and transitional basis, would enable such a swift implementation of the results of the negotiations. This present Council Regulation would be replaced by the new additional protocol on the entry into force of the latter. The same model was used in 1997, to take into account the Agreement on Agriculture concluded during the Uruguay Round of Multilateral Trade Negotiations and the consequences of the last EU enlargement.

7. The Republic of Hungary will also take all useful legislative provisions, on an autonomous and transitional basis, in order to implement simultaneously the engagements of the Republic of Hungary issued from the results of the negotiations.

8. The purpose of this proposal is to permit the early implementation, from 1 July 2000, of the results of the agricultural negotiations for the conclusion of new Additional Protocols to the Europe Agreement with Hungary. It provides for the amendments of the Annexes of the Europe Agreement with Hungary, which set out the concessions granted by the Community on imports originating in Hungary.

9. The Council is requested to adopt the proposed Regulation.

2000/0161 (ACC)

Proposal for a COUNCIL REGULATION establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for an adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreement with Hungary

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The Europe Agreement concluded between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part [1], provide for further concessions for certain agricultural products originating in Hungary.

[1] OJ L 347, 31.12.1993, p.2

(2) Improvements to the preferential agreements of the Europe Agreement with Hungary were provided for in the Protocol adjusting trade aspects of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, to take into account of the accession of the Republic of Austria, of the Republic of Finland and of the Kingdom of Sweden to the European Union and the outcome of the Uruguay Round negotiations on agriculture [2]. The Council approved the above-mentioned Protocol on behalf of the Community by Council Decision of 22 October 1998 [3].

[2] OJ L 28, 2.2.1999, p. 3.

[3] OJ L 28, 2.2.1999, p. 1.

(3) In accordance with the directives adopted by the Council on 30 March 1999, the Commission and the Republic of Hungary concluded on 14 April 2000 negotiations on a new Additional Protocol to the Europe Agreement.

(4) The new Additional Protocol, which provide for additional agricultural concessions, will be based on Article 20(5) of the Europe Agreement, establishing that the Community and Hungary shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions.

(5) A swift implementation of the adjustments forms an essential part of the results of the negotiations for the conclusion of a new Additional Protocol to the Europe Agreement with Hungary.

(6) It is therefore appropriate to provide for the adjustment, as an autonomous and transitional measure, of the agricultural concessions provided for in the Europe Agreement with Hungary.

(7) The Republic of Hungary will take all useful legislative provisions, on an autonomous and transitional basis, in order to enable a rapid and simultaneous implementation of the adaptation of the agricultural concessions of the Republic of Hungary provided for in the Europe Agreement.

(8) Since the measures necessary for the implementation of this Regulation are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [4], they should be adopted by use of the management procedure provided for in Article 4 of that Decision.

[4] OJ L 184, 17.7.1999, p. 23.

(9) Commission Regulation (EC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code [5] codified the management rules for tariff quotas designed to be used following the chronological order of dates of customs declarations.

[5] OJ L 253, 11.10.1993, p. 1. Regulation at last amended by Commission Regulation (EC) No 1662/1999 (OJ L 197, 29.7.1999, p. 25).

HAS ADOPTED THIS REGULATION:

Article 1

1. The arrangements for import into the Community applicable to certain agricultural products originating in Hungary as set out in Annex A(a) and A(b) to this Regulation shall replace those set out in Annex VIII to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part.

2. On the entry into force of the new additional protocol adjusting the Europe Agreement referred to in paragraph 1, the concessions provided for in that Protocol shall replace those referred to in Annex A(a) and A(b) to this Regulation.

3. The Commission shall adopt detailed rules for the application of this Regulation in accordance with the procedure laid down in Article 2(2).

Article 2

1. The Commission shall be assisted by the committee instituted by Article 23 of Council Regulation (EC) N° 1766/92 on the common organisation of the market of cereals [6] or, where appropriate, the committee instituted by the relevant provisions of the other Regulations on the common organisation of agricultural markets.

[6] OJ L 181, 1.7.1992, p. 21.

2. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7(3) thereof.

3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

4. Tariff quotas with an order number above 09.5100 shall be administered by the Commission in accordance with articles 308a, 308b and 308c of Regulation (EEC) No 2454/93.

Article 3

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

It shall apply from 1 July 2000.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

ANNEX A(a) Custom duties on imports applicable in the Community to products originating in Hungary and listed below shall be abolished

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(1) As defined in Commission regulation (EC) N° 2204/1999 of 12 October 1999, amending Annex I to Council Regulation (EEC) N° 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff, OJ L 278, 28 October 1999.

ANNEX A(b)

Imports into the Community of the following products originating in Hungary shall be subject to the concessions set out below

(MFN= Most Favoured Nation duty)

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(1) Notwithstanding the rules for the interpretation of the Combined nomenclature, the wording of the description of the products is to be considered as having no more than indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN code. Where ex CN codes are indicated, the preferential scheme is to be determined by application to the CN code and corresponding description taken together.

(2) In cases where a MFN minimum duty exits, the applicable minimum duty is equal to the MFN minimum duty multiplied by the percentage indicated in this column.

(3) The quota for this product is opened for Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and the Slovak Republic. Where it appears likely that total Community imports of live bovine animals may exceed 500 000 heads in a given marketing year the Community may take the management measures needed to protect its market, not withstanding any other rights given under the Agreement.

(4) The quota for this product is opened for Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and the Slovak Republic.

(5) The Community may take into account, in the framework of its legislation and when appropriate the supply needs of its market and the need to maintain its market balance.

(6) Excluding tenderloin presented alone.

(7) Subject to minimum import price arrangements contained in the Annex to the present Annex.

(8) The reduction applies only to the ad valorem part of the duty.

(9) This concession is only applicable to products non-benefiting from any kind of export subsidies.

ANNEX TO ANNEX A(b) Minimum import price arrangement for certain soft fruit for processing

Imports into the Community of the products listed in this Annex originating in Hungary shall be subject to the conditions described below.

1. Minimum import prices are fixed for the following products:

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2. The minimum import prices, as set out in Article 1, will be respected on a consignment by consignment basis. In the case of a customs declaration value being lower than the minimum import price, a countervailing duty will be charged equal to the difference between the minimum import price and the customs declaration value.

3. If the import prices of a given product covered by this Annex show a trend suggesting that the prices could go below the level of the minimum import prices in the immediate future, the European Commission will inform the Hungarian authorities in order to enable them to correct the situation.

4. At the request of either the Community or Hungary, the Association Committee shall examine the functioning of the system or the revision of the level of the minimum import prices. If appropriate, the Association Committee shall take the necessary decisions.

5. To encourage and promote the development of trade and for the mutual benefit of all parties concerned, a consultation meeting will be organised three months before the beginning of each marketing year in the European Community. This consultation meeting will take place between the European Commission and the interested European producers' organisations for the products concerned, of the one part and the authorities', producers' and exporters' organisations of all the associated exporting countries, of the other part.

During this consultation meeting, the market situation for soft fruit including, in particular, forecasts for production, stock situation, price evolution and possible market development, as well as possibilities to adapt supply to demand, will be discussed.

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