Proposal for a COUNCIL DECISION on the position to be taken by the Community in the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, concerning the improvement of the trade arrangements for processed agricultural products foreseen in Protocol 3 of the Europe Agreement between the European Community and the Republic of Poland

(presented by the Commission)

EXPLANATORY MEMORANDUM

Under the terms of Article 20 of the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, approved by the Decision of the Council and of the Commission (93/743/EC,ECSC,Euratom) of 13 December 1993 [1], Protocol 3 lays down the trade arrangements for the processed agricultural products which are listed therein. In accordance with Article 2(1) of the Protocol adjusting trade aspects of the Europe Agreement to take account of the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the outcome of the Uruguay Round negotiations on agriculture, and the improvements to the existing preferential arrangements approved by Council Decision (2002/63/EC) of 23 October 2001 [2], Protocol 3 to the Europe Agreement has been amended by Annex H to that Protocol.

[1] OJ L 348, 31.12.1993, p. 1.

[2] OJ L 27, 30.1.2002, p. 4.

During the debate on the mandate proposed by the Commission to improve the agricultural components of the Europe Agreements, the Member States asked the Commission to negotiate in parallel improved access to the markets for processed agricultural products. The relevant provisions of the above-mentioned Protocol No 3 form the legal basis for these negotiations.

Following this request from the Council, the Commission departments have started negotiations with a delegation of the Republic of Poland in order to improve access to the markets.

The two parties have reached a technical agreement which envisages the reduction of import duties for the products under quota and the introduction of new reduced-duty quotas, an increase in the amounts of the quotas to take account of traditional trade flows, and reductions in import duties on a wide range of products.

It is therefore proposed to the Council that it adopt this Proposal for a Decision of the Association Council to amend the Annexes to Protocol 3.

2002/0300 (ACC)

Proposal for a COUNCIL DECISION on the position to be taken by the Community in the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, concerning the improvement of the trade arrangements for processed agricultural products foreseen in Protocol 3 of the Europe Agreement between the European Community and the Republic of Poland

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Whereas:

(1) The Europe Agreement [3] establishes an association between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part.

[3] OJ L 348, 31.12.1993, p. 3.

(2) Protocol 3, as amended by the Protocol adjusting trade aspects of the Europe Agreement [4] to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the outcome of the Uruguay Round negotiations on agriculture, lays down the trade arrangements for processed agricultural products between the Community and Poland.

[4] OJ L 27, 30.1.2002, p. 3.

(3) Under Article 1(2) of Protocol 3 the Association Council decides in particular on any amendment of the duties mentioned in the annexes to Protocol 3 and on the increase or abolition of tariff quotas.

(4) Under the second indent of Article 2(1) of this Protocol, the Association Council also decides that the duties applied may be reduced in response to reductions resulting from mutual concessions relating to processed agricultural products.

(5) It is therefore necessary to decide on the position to be taken by the Community with regard to these decisions.

HAS DECIDED AS FOLLOWS:

Sole article

The position to be taken by the Community in the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, concerning the improvement of Protocol 3 on the bilateral trade of processed agricultural products, shall be based on the Proposal for a Decision of the Association Council annexed to this Decision

Done at Brussels, [...]

For the Council

The President

ANNEX

Proposal for an

EC-POLAND ASSOCIATION COUNCIL DECISION NO... /2002

on the improvement of the trade arrangements for processed agricultural products foreseen in Protocol 3 of the Europe Agreement

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, and in particular Article 1(2) of Protocol 3,

Whereas:

(1) Protocol 3, as amended by the Protocol adjusting trade aspects of the Europe Agreement [5] to take into account the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union and the outcome of the Uruguay Round negotiations on agriculture, lays down the trade arrangements for processed agricultural products between the Community and Poland.

[5] OJ L 27, 30.1.2002, p. 3.

(2) Under Article 1(2) of Protocol 3 the Association Council decides in particular on any amendment of the duties mentioned in the annexes to this Protocol and on the increase or abolition of tariff quotas.

(3) Under the second indent of Article 2(1) of this Protocol, the Association Council also decides that the duties applied may be reduced in response to reductions resulting from mutual concessions relating to processed agricultural products.

(4) The annual quotas provided for in Annexes I and II to this Decision should be opened for the year 2003.

HAS DECIDED AS FOLLOWS:

Article 1

Annexes I and II to Protocol 3 on the trade in processed agricultural products between the Community and Poland are replaced by Annexes I and II to this Decision.

Article 2

This Decision shall enter into force on 1 January 2003.

Done at Brussels, [...]

For the Association Council The President

Annex 1

Table 1: Annual tariff quotas applicable upon import into the Community of goods originating in Poland

EAR : see table 4

>TABLE POSITION>

Table 2- Duties applicable upon import into the Community of goods originating in Poland

EA is the agricultural component calculated in accordance with Annex I of Council Reg (EC) Nr 2658/87

>TABLE POSITION>

Table 3 : Schedule of reduction of duties applicable upon import into the Community of goods originating in Poland

This schedule does not prejudge the date of accession. The obligations of membership will, on accession supersede this schedule.

>TABLE POSITION>

Table 4: Basic amounts taken into consideration in calculating the reduced agricultural components (EAR) and additional duties applicable on importation into the Community of goods listed in Table 1

Basic Product // Preferential rate on 1.1.2003 (EUR/100 kg)

//

Common wheat // 6,653

Durum wheat // 10,326

Rye // 6,483

Barley // 6,483

Maize // 6,577

Long-grain husked rice // 18,502

Skimmed-milk powder // 23,760

Whole-milk powder // 26,086

Butter // 37,912

White sugar // 29,350

Annex 2

Table 1: Quotas applicable upon import into Poland of goods originating in the Community

>TABLE POSITION>

* In addition a fixed specific duty of 0.0012 EUR is levied per 1%(w/w) sucrose.

Table 2- Duties applicable upon import into Poland of goods originating in the Community

>TABLE POSITION>

* In addition a fixed specific duty of 0.0017 EUR is levied per 1%(w/w) sucrose.

Table 3 : Schedule of reduction of duties applicable upon import into Poland of goods originating in the Community

This schedule does not prejudge the date of accession. The obligations of membership will, on accession supersede this schedule.

>TABLE POSITION>

>TABLE POSITION>