Proposal for a COUNCIL DECISION relating to the conclusion of an Additional Protocol adjusting the 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 Poland, of the other part, to take account of the outcome of the negotiations between the parties on new mutual agricultural concessions

(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 with Poland, which have been undertaken in the overall context of the accession process, have been based on Article 20(5) of the Europe Agreement (EA). Article 20(5) of EA provides that the Community and Poland 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 mandate, 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. On this basis negotiations have been undertaken and were concluded between the parties on 26 September 2000.

4. The result of the negotiations between the Commission and the Republic of Poland 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 Poland. 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 customs duties.

5. The results of the adjustments agreed with Poland are to be inserted in an Additional Protocol to the EA. This is done by the present "Protocol on new mutual agricultural concessions". For the first time, improvements to the preferential agricultural regime of the Europe Agreement were provided for in the Protocol adjusting trade aspects of the Europe Agreement [1].

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

6. A swift implementation of the adjustments to allow the entering into force of the new concessions on 1 January 2001 is foreseen, on an autonomous and transitional basis, in Council Regulation (EC) No 2851/2000 [2] of 22 December 2000. The Republic of Poland has also taken all useful legislative provisions, on an autonomous and transitional basis, in order to implement simultaneously the engagements of Poland issued from the results of the negotiations.

[2] OJ L 332, 28.12.2000, p. 7.

7. The present Protocol would replace the above-mentioned autonomous and transitional measures on the day of its entry into force.

8. It is to be noted that, as far as processed agricultural products are concerned, a statement in the minutes of the Council provides that the Commission will duly take into account, during the negotiations, the EU's export interests in this field. The negotiations on the improvement of bilateral trade are currently under way. The outcome of these negotiations will be taken up by Decision of the Association Council according to the different procedure laid down in Protocol 3 to the Europe Agreement.

2002/0145 (ACC)

Proposal for a COUNCIL DECISION relating to the conclusion of an Additional Protocol adjusting the 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 Poland, of the other part, to take account of the outcome of the negotiations between the parties on new mutual agricultural concessions

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) and 300(3) thereof,

Having regard to the proposal from the Commission [3],

[3] OJ C [...] p.

Whereas:

(1) 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 [4], hereinafter referred to as "the Europe Agreement with Poland", provides for certain concessions for certain agricultural products originating in Poland. Article 20(5) of that Agreement provides that the Community and Poland shall examine the possibility of their granting each other further concessions. The Commission has been authorised 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.

[4] OJ L 348, 31.12.1993, p. 2.

(2) The outcome of those negotiations between the Commission and Poland on new agricultural concessions are inserted in an Additional Protocol, hereinafter referred to as "the agricultural Protocol". This agricultural Protocol should be approved with a view to formalising, through an international agreement, the further liberalisation of the trade in agricultural products between the Community and Poland.

(3) By Council Regulation (EC) No 2851/2000 of 22 December 2000 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 the Republic of Poland and repealing Regulation (EC) No 3066/95 [5] the Community implemented, in anticipation of the adoption of the agricultural Protocol, autonomous and transitional measures in order to ensure a rapid and simultaneous implementation of the Protocol by replacement of Annexes VIIIa, VIIIb, Xa, Xb and Xc to the Europe Agreement with Poland.

[5] OJ L 332, 28.12.2000, p. 7.

(4) Appropriate measures should be taken to ensure a smooth transition between the preferential arrangements applied under Regulation (EC) No 2851/2000 and those provided for by the agricultural Protocol.

(5) In accordance with Article 1(2) of Regulation (EC) No 2851/2000, Annexes A(a) and A(b) to that Regulation should be replaced with the corresponding annexes of the agricultural Protocol, and the corresponding order numbers of the quotas should be maintained. It is also necessary to ensure that the provisions for the management of the concessions in Regulation (EC) No 2851/2000 are also applicable to the concessions as established by the agricultural Protocol.

(6) The measures necessary for the implementation of this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [6],

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

HAS DECIDED AS FOLLOWS:

Article 1

The Protocol adjusting the 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 Poland, of the other part, to take account of the outcome of the negotiations between the parties on new mutual agricultural concessions is hereby approved on behalf of the Community.

The text of the Protocol is attached to this Decision.

Article 2

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

Article 3

1. The Commission shall be assisted by the Management Committee for Cereals instituted by Article 22 of Council Regulation (EC) No 1766/92 [7], or, where appropriate, by another Committee instituted by other Regulations on the common organisation of agricultural markets.

[7] OJ L 181, 1.7.1992, p. 2.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision No 1999/468/EC shall apply.

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

3. The Committee shall adopt its rules of procedure.

Article 4

1. Annexes A(a) and A(b) to Regulation (EC) No 2851/2000 are replaced by Annexes A(a) and A(b) to the Protocol attached to this Decision.

The order numbers of column 1 of Annex A(b) to that Regulation shall remain applicable to the same products as those described in Annex A(b) to the Protocol.

2. Article 1(4) and Article 2 of Council Regulation (EC) No 2851/2000 shall apply mutatis mutandis to the concessions provided for in the Protocol attached to this Decision.

3. Paragraphs 1 and 2 shall apply with effect from the date of entry into force of the Protocol attached to this Decision.

Article 5

The President of the Council shall, on behalf of the Community, give the notification provided for in Article 4 of the Protocol.

Done at Brussels,

For the Council

The President

ATTACHMENT

PROTOCOL

ADJUSTING THE 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 POLAND, OF THE OTHER PART, TO TAKE ACCOUNT OF THE OUTCOME OF THE NEGOTIATIONS BETWEEN THE PARTIES ON NEW MUTUAL AGRICULTURAL CONCESSIONS

THE EUROPEAN COMMUNITY,

hereinafter referred to as "the Community",

of the one part, and

THE REPUBLIC OF POLAND,

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 Republic of Poland, of the other part (hereinafter referred to as "the Europe Agreement") was signed in Brussels on 16 December 1991 and entered into force on 1 February 1994 [8];

[8] OJ L 348, 31.12.1993, p. 2.

WHEREAS, for the first time, improvements to the preferential agricultural regime of the Europe Agreement were provided for in the Protocol adjusting trade aspects of the Europe Agreement [9];

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

WHEREAS Article 20(5) of the Europe Agreement provides that the Community and Poland shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other additional agricultural concessions. On this basis negotiations have been undertaken and were concluded between the parties;

WHEREAS,

- from the one side, the Council decided, by virtue of Regulation (EC) No 2851/2000 [10], to apply on a provisional basis, as from 1 January 2001, the European Community concessions resulting from the negotiations for the conclusion of the present Protocol and

[10] OJ L 332, 28.12.2000, p. 7.

- from the other side the Government of the Republic of Poland has taken legislative provisions to apply, as from the same date of 1 January 2001, the equivalent concessions of Poland;

WHEREAS the above mentioned concessions will be replaced on the date of entry into force of this Protocol by the concessions provided for herein,

HAVE DECIDED to determine, by mutual agreement, the adjustments to be made to the trade aspects of the Europe Agreement in the agriculture field and to this end have designated as their Plenipotentiaries:

THE EUROPEAN COMMUNITY:

THE GOVERNMENT OF THE REPUBLIC OF POLAND:

WHO, having exchanged their full powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

Article 1

The arrangements for import into the Community applicable to certain agricultural products originating in Poland as set out in Annex A(a) and A(b) and the arrangements for import into Poland applicable to certain agricultural products originating in the Community as set out in Annex B(a) and B(b) to this Protocol shall replace those set out in Annexes VIIIa, VIIIb, IX, Xa, Xb, Xc and XI 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, as amended by the Protocol adjusting the trade aspects of the Europe Agreement [11].

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

Article 2

The Annexes to this Protocol shall form an integral part thereof. This Protocol shall form an integral part of the Europe Agreement.

Article 3

This Protocol shall be approved by the Community and the Republic of Poland in accordance with their own procedures. The Contracting Parties shall take the necessary measures to implement this Protocol.

Article 4

This Protocol shall enter into force on the first day of the first month following the Contracting Parties' notification of the accomplishment of the corresponding procedures according to Article 3.

Article 5

This Protocol shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Polish languages, each of these texts being equally authentic.

Done at Brussels,

For the European Community For the Republic of Poland

Annexes describing the new preferential trade regime between the Community and Poland

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

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(1) As defined in Commission Regulation (EC) No 2204/1999 of 12.10.1999, amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 278, 28.10.1999, p. 1).

ANNEX A(b)

Imports into the Community of the following products originating in Poland 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 an 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 head in a given marketing year the Community may take the management measures needed to protect its market, notwithstanding 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) This concession is only applicable to products not benefiting from any kind of export subsidies.

(8) In dried egg equivalent (100 kg liquid egg = 25.7 kg of dried egg).

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

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

(11) Co-efficient for conversion to fresh meat = 2,14, providing meat content is > 60%.

(12) In addition to the reduction of the ad valorem part of the duty, five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(13) In addition to the reduction of the ad valorem part of the duty, three additional stages (10%, 12% and 14%), are herewith introduced which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(14) For these CN-codes, the following concessions - applicable for apples imported within, as well as outside, the tariff quota - should be applied: - five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the period 1 January to 14 February, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature. - three additional stages (14%, 16% and 18%) are herewith introduced for the period 15 February to 31 March, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature. - two additional stages (16% and 18%) are herewith introduced for the period 1 April to 15 July, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature. - five additional stages (10%, 12%, 14%, 16% and 18%) are herewith introduced for the period 16 July to 31 December, which have to be used before the application of the full specific duty as mentioned in the Combined Nomenclature.

(15) Entry under this subheading is subject to conditions laid down in the relevant Community provisions (see Articles 291 to 300 of Commission Regulation (EEC) No 2454/93 (OJ L 253, 11.10.1993, p. 71) and subsequent amendments).

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

1. Minimum import prices are fixed as follows for the following products for processing originating in Poland:

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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 Polish authorities in order to enable them to correct the situation.

4. At the request of either the Community or Poland, 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.

ANNEX B(a) Customs duties on imports applicable in Poland to products originating in the Community and listed below shall be abolished

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(1) As defined by the Polish Customs Tariff - Annex to Council of Ministers Regulation of 20 December 2000 (Dz.U. No 119 item 1253, 28 December 2000).

ANNEX B(b)

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

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(1) Notwithstanding the rules for the interpretation of Polish Combined Nomenclature (PCN), the wording of the description of the products should be regarded as indicative; the applicability of the preferential arrangements is determined, in the context of this Annex, by the coverage of the PCN codes.

(2) Heifers of a weight exceeding 220 kg.

(3) Excluding tenderloin presented alone.

(4) Rate of duty applicable. If the applied MFN duty rate ad valorem for this product is reduced, the preferential duty rate ad valorem set out in the 3rd column will be reduced by the same proportion. If the applied MFN minimum/specific duty rate is reduced below the preferential minimum/specific duty, the latter will be reduced to the same level.

(5) Products for which the EU will not grant any export refunds.

(6) This concession in the pigmeat sector will be implemented after the current veterinary restrictions prohibiting the imports of certain pigmeat products into the Community from Poland will be lifted.

(7) Within the framework of the Polish WTO tariff quota.