Proposal for a COUNCIL DECISION relating to the conclusion of an Agreement between the European Community and the Czech Republic concerning fishery products, in the form of an additional Protocol completing the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 May 2000, the Council approved the negotiating mandate for the Commission to undertake negotiations with the associated CEECs, including the Czech Republic, to conclude reciprocal tariff concessions in the fisheries sector. As a result, negotiations were held with the Czech Republic on 20 October 2000 and 27 March 2001 to finalise these bilateral concessions. The details of the bilateral concessions are contained in Agreed Minutes that were signed on behalf of the Commission and the Czech authorities on 27 March 2001. The two parties agreed on a model for gradual and reciprocal liberalisation of trade on all fish and fishery products.

The agreement states that both the Community and the Czech Republic, from the date of entry into force of the agreement, will apply a one third reduction of the tariff duties applied to all fish and fishery products. The following year a further reduction of one third will be applied and three years after the entry into force of the agreement, full free trade of all fish and fishery products will be applied.

At the entry into force of the agreement the Community will eliminate the tariff quota for live trout mentioned in the Europe Agreement. In addition, at the entry into force of the agreement, the Community will increase the existing tariff quota for live carp to 4000 tonnes. One year after the entry into force of the agreement, the quota will be increased to 4500 tonnes and two years after the entry into force of the agreement, the quota will be increased to 5000 tonnes. Three years after entry into force of the agreement, or earlier, if mutually agreed, the quota for live carp will be eliminated.

The Commission is of the opinion that the results of the technical negotiations represent a balanced and acceptable result which, in a simple administrative manner, and on a gradual basis, will lead to full free trade, without any exceptions, between the Czech Republic and the European Community.

The present proposal is one of a series on which the Council is being asked to take a decision. It adheres to the same principles of gradual liberalisation of trade in fish and fishery products as the earlier proposals.

In light of the above, the Council is requested to adopt the present decision to add a Protocol concerning trade concessions in the fisheries sector to the Europe Agreement with the Czech Republic.

2001/0304 (ACC)

Proposal for a COUNCIL DECISION relating to the conclusion of an Agreement between the European Community and the Czech Republic concerning fishery products, in the form of an additional Protocol completing the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic of the other part

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Whereas:

(1) It is desirable to complete by means of an additional Protocol the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part [1], so as to provide for preferential conditions for the importation into the Community of certain fish and fishery products originating in the Czech Republic, and into the Czech Republic of certain fish and fishery products originating in the Community;

[1] OJ L 360 of 31.12.1994, p. 2.

(2) To that end a new Protocol laying down the trade arrangements for certain fish and fishery products should be added to the said Europe Agreement;

(3) The Agreement in the form of a Protocol should be approved,

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement between the European Community and the Czech Republic in the form of an additional Protocol concerning fishery products, completing the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, is hereby approved on behalf of the Community.

The text of the Agreement in the form of a Protocol is attached to this Decision.

Article 2

1. From the date of entry into force of this Protocol the tariff quota for live trout (order number 09.5261) and the tariff quota for live carp (order number 09.5263) as mentioned in Council Regulation (EC) No 965/97 of 26 May 1997 [2] will no longer be applicable for products originating in the Czech Republic.

[2] OJ L 141, 31.5.1997, p. 1.

2. From the date of entry into force of this Protocol a tariff quota with order number 09.5263 for three annual quota periods for live carp falling under CN subheading 0301 93 00 will be opened at a duty rate of 0%. For the first quota period of 12 months the quota volume will be 4.000 tonnes, for the second quota period of 12 months the quota volume will be 4.500 tonnes and for the third quota period of 12 months the quota volume will be 5.000 tonnes. This quota shall be administered by the Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93 [3]

[3] OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regulation (EC) No 993/2001 (OJ L 141, 28.5.2001, p. 1.

Article 3

The President of the Council is authorised to designate the person empowered to sign the Agreement in order to bind the Community.

Done at Brussels,

For the Council

The President

ANNEX

AGREEMENT

BETWEEN THE EUROPEAN COMMUNITY

AND THE CZECH REPUBLIC

CONCERNING FISHERY PRODUCTS

IN THE FORM OF AN ADDITIONAL PROTOCOL

TO THE EUROPE AGREEMENT

ESTABLISHING AN ASSOCIATION BETWEEN

THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES

OF THE ONE PART, AND THE CZECH REPUBLIC

OF THE OTHER PART PROTOCOL

LAYING DOWN THE TRADE ARRANGEMENTS FOR

CERTAIN FISH AND FISHERY PRODUCTS BETWEEN

THE EUROPEAN COMMUNITY AND THE CZECH REPUBLIC

THE EUROPEAN COMMUNITY, hereinafter referred to as 'the Community' of the one part, and

THE GOVERNMENT OF THE CZECH REPUBLIC, of the other part,

WHEREAS the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, hereinafter referred to as 'the Europe Agreement', was signed in Brussels on 4 October 1993 and entered into force on 1 February 1995;

WHEREAS Chapter III of Title III of the Europe Agreement provides for negotiations to conclude reciprocal tariff concessions in the fisheries sector;

WHEREAS to this effect technical negotiations based on Article 21(5) of the Europe Agreement were carried out and successfully concluded between the Community and the Czech Republic to agree on reciprocal tariff concessions in the fisheries sector;

WHEREAS the negotiated concessions in the fisheries sector shall affect the bilateral concessions granted under the Agreement, which should, therefore, be amended by means of a Protocol adjusting the trade aspects of the Agreement;

WHEREAS the Community and the Czech Republic also agreed on an administratively simple manner of implementing the negotiated tariff concessions as soon as possible on a gradual basis;

HAVE DECIDED to apply the agreed tariff concessions in view of establishing full free trade of all fish and fishery products:

ARTICLE 1

From the date of entry into force of this Protocol for fish and fishery products as defined in Article 1 of Council Regulation (EC) No 104/2000 both Parties shall apply a one third reduction of the tariff duties applied by the Community and the Czech Republic respectively for all fish and fishery products with the exception of products mentioned in Article 2.

One year after the date of entry into force of this trade arrangement, both Parties shall apply a further one third reduction of the tariff duties as they were at the time of the entry into force of this arrangement.

Three years after the date of entry into force of this trade arrangement, or if commonly agreed earlier, full free trade of all fish and fishery products with the exception of those mentioned in Article 2 shall be applied. Any such agreement on earlier application of full free trade of all fish and fishery products shall be implemented in accordance with Article 6 of this Protocol.

ARTICLE 2

At the entry into force of this Protocol the Community will eliminate the tariff quota for live trout mentioned in the Europe Agreement and the Community will apply full free trade for this product originating in the Czech Republic.

ARTICLE 3

At the entry into force of this Protocol, the Community shall increase the tariff quota for products falling under CN subheading 0301 93 00 (live carp) to 4000 tonnes. One year after the entry into force of this Protocol, the quota shall be increased to 4500 tonnes. Two years after the entry into force of this Protocol, the quota shall be increased to 5000 tonnes. Three years after the entry into force of this Protocol or at an earlier date, if commonly agreed, the quota shall be eliminated. Any such agreement on earlier elimination of the quota shall be implemented in accordance with Article 6 of this Protocol.

For quantities imported into the Community above the tariff quotas, the provisions of Article 1 shall apply.

ARTICLE 4

The calculation of the reductions mentioned in Article 1 will be carried out by using common mathematics principles taking into account that:

(a) all the figures which have less than 50 (included) after the decimal point should be rounded down;

(b) all the figures which have more than 50 after the decimal point should be rounded up;

(c) all the tariffs below 2% should automatically be fixed at 0%.

ARTICLE 5

This Protocol will enter into force on the first day of the month following the date on which the Parties have notified each other of the accomplishment of their internal procedures.

ARTICLE 6

This Protocol may be amended by decision of the Association Council.

FINANCIAL STATEMENT

1. Title of operation

Proposal to add a Protocol to the Europe Agreement with the Czech Republic implementing an agreement on concessions on fish and fishery products. These concessions have been agreed and will be implemented over a period of three years, leading to full trade liberalisation of the products concerned.

2. Budget heading(s) involved

Chapter 12, Article 120

3. Legal basis

Article 133 in conjunction with Article 300(2) of the Treaty establishing the European Community

4. Description of operation

4.1 General objective

Full trade liberalisation of trade in fish and fishery products in preparation for accession of the Czech Republic to the European Union

5. Classification of expenditure or revenue

5.3 Type of revenue involved

Import duties

6. Type of expenditure or revenue

- Will the proposed operation cause any change in the level of revenue- If so, what sort of change and what type of revenue is involved-

- The proposed operation will cause a reduction in import duties levied on fish and fishery products originating in the Czech Republic

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

The cost of the operation has been based on trade in 1998, 1999 and 2000. Due to the unpredictable levels of trade and the varying rates of duty applied to the products concerned, an average estimated duty level of 12% has been used to calculate the duty levied in 1998, 1999 and 2000. Import duties levied in 1999 showed a decrease of almost 10% over 1998; duties in 2000 showed an increase of almost 8% over 1999. No increase in duty level has thus been used to calculate the estimated import duties foreseen. The estimated duty has been reduced by one third for year one and a further one third for year two.

As the entry into force of the arrangements is expected to take place in the course of the year 2001, the estimated cost will be made as though 2001 is year one, 2002 is year two, 2003 is year three.

7.2 Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

>TABLE POSITION>