Proposal for a Council Decision concerning the suspension of the trade and trade-related provisions of the Cooperation Agreement between the European Community and the former Yugoslav Republic of Macedonia signed on 29 April 1997
Date: 2000-10-31
Institutions: European Commission
Subjects: North Macedonia, Yugoslavia, international sanctions, trade agreement, trade restriction

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.10.2000
COM(2000) 680 final

2000/0284 (ACC)
2000/0285 (ACC)

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 2007/2000 by extending to the former
Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia the
exceptional trade measures for countries and territories participating in or
linked to the European Union’s Stabilisation and Association process and
amending Regulation (EC) No 2820/98

Proposal for a

COUNCIL DECISION

concerning the suspension of the trade and trade-related provisions of the
Cooperation Agreement between the European Community and the former
Yugoslav Republic of Macedonia signed on 29 April 1997

(presented by the Commission)

1.

2.

3.

EXPLANATORY MEMORANDUM

The exceptional trade measures for countries and territories participating in
or linked to the European Union’s Stabilisation and Association process
adopted by the Council on 18 September 2000 (Council Regulation (EC)
2007/2000 of 18 September 2000)1 introduced a very high degree of duty-
free access to the EC market (around 95%) for Albania, Bosnia and
Herzegovina, Croatia and Kosovo as defined by UNSC Resolution 1244 of
10 June 1999, granted limited concessions for Montenegrin aluminium
products originating in the FRY and continued the granting of wine
concessions in form of a global tariff quota which equally applies to the
former Yugoslav Republic of Macedonia and Slovenia pending the
conclusion of wine agreements with these countries. These improved
preferences are linked to specific conditions to be respected by the
beneficiaries (economic reforms, regional cooperation, standstill clause) and
contain specific anti-fraud provisions underpinned by a strengthened
temporary suspension clause.

In the light of recent developments in the Federal Republic of Yugoslavia
(FRY),
the General Affairs Council of 9 October 2000 asked the
Commission to submit a proposal on extending to the FRY the benefit of
these exceptional trade measures.

The full extension to the FRY of these autonomous trade preferences will
overrule the limited concessions (tariff quotas) for Montenegrin aluminium
products originating in the FRY contained in Council Regulation (EC)
2007/2000. It is, therefore, proposed to repeal these quotas. On the other
hand, Kosovo, as defined by UNSC Resolution 1244 of 10 June 1999, is
subject to international civil administration by the United Nations Mission in
Kosovo (UNMIK) which has established a separate customs administration.
Therefore, it is proposed to maintain Kosovo as a separate beneficiary for the
autonomous trade preferences.

Recital (11) of Council Regulation (EC) 2007/2000 already indicated that the
equivalent of improved autonomous trade preferences under this Regulation
would be granted to the former Yugoslav Republic of Macedonia, currently
linked to the European Community by a Cooperation Agreement (with trade
preferences at a less preferential
the
negotiations on a Stabilisation and Association Agreement with the European
Community and its Member States. The former Yugoslav Republic of
Macedonia already benefits from concessions for wine under Regulation
(EC) 2007/2000. In order to achieve the objective of granting improved trade
preferences,
it would have been necessary to either amend the existing
Cooperation Agreement or to suspend its trade and trade-related provisions
and apply the autonomous trade preferences on an interim basis.

level), pending completion of

Given that
the former option would have entailed lengthy procedures
resulting in discrimination of the former Yugoslav Republic of Macedonia

1

OJ L 240, 23.09.2000, p.1.

2

relative to the other countries covered by the Regulation, the option of
suspending the trade provisions of the existing Cooperation Agreement by
means of an exchange of letters between the European Community and the
former Yugoslav Republic of Macedonia, based on a Council Decision and
extending the autonomous trade preferences has been chosen. This extension
is of course of provisional nature until the entry into force of a Stabilisation
and Association Agreement or of an Interim Agreement on trade and trade-
related matters related to the Stabilisation and Association Agreement with
this country.

4.

The aim of the attached proposal for a Council Regulation (EC) amending
Council Regulation (EC) No 2007/2000 is:

• to extend the autonomous trade preferences contained in Council
Regulation 2007/2000 to the FRY while repealing the tariff quotas for
aluminium products and keeping Kosovo as defined by UNSC Resolution
of 10 June 1999 as a separate beneficiary;

• to extend provisionally the autonomous trade preferences to the former

Yugoslav Republic of Macedonia;

• to adjust the tariff quotas for certain fishery products in the light of the

extension of the autonomous trade regime to both countries;

• to remove the former Yugoslav Republic of Macedonia from the GSP.

5.

For both countries the granting of these trade preferences is linked to their
readiness to engage in effective economic reforms and in regional
cooperation with the other countries concerned by the EU Stabilisation and
Association process. In practice, the implementation of the trade preferences
for the FRY will equally require full cooperation between all relevant
authorities within the FRY (between the Republics of Serbia and
Montenegro) and between the FRY and UNMIK, because of the latter’s
specific responsabilities for Kosovo.

6.

The aim of the attached proposal for a Council Decision (EC) is:

• to approve the suspension of the trade and trade-related provisions of the
Cooperation Agreement between the European Community and the
former Yugoslav Republic of Macedonia by means of an exchange of
letters;

• to authorize the President of the Council

to designate the person

empowered to sign the letter in order to bind the Community.

3

7.

The Commission proposes the attached proposals for a Council Regulation
(EC) amending Council Regulation (EC) No 2007/2000 by extending to the
former Yugoslav Republic of Macedonia and the Federal Republic of
trade measures for countries and territories
Yugoslavia the exceptional
participating in or
linked to the European Union’s Stabilisation and
Association process and amending Regulation (EC) No 2820/98 and for a
Council Decision concerning the suspension of the trade and trade-related
provisions of the Cooperation Agreement between the European Community
and the former Yugoslav Republic of Macedonia signed on 29 April 1997 for
adoption to the Council.

4

2000/0284 (ACC)

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 2007/2000 by extending to the former Yugoslav
Republic of Macedonia and the Federal Republic of Yugoslavia the exceptional trade
measures for countries and territories participating in or linked to the European
Union’s Stabilisation and Association process and amending
Regulation (EC) No 2820/98

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)

(2)

(3)

Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional
trade measures for countries and territories participating in or linked to the European
Union’s Stabilisation and Association process, amending Regulation (EC) No
2820/98, and repealing Regulations (EC) Nos 1763/1999 and 6/20002, does not apply
to imports into the Community of products originating in the former Yugoslav
Republic of Macedonia with the exception of wine imports and does not apply to all
imports from the Federal Republic of Yugoslavia.

The suspension, by means of an exchange of letters, of the trade and trade-related
provisions of the Cooperation Agreement between the European Community and the
former Yugoslav Republic of Macedonia signed on 29 April 1997 allows for
autonomous trade preferences to be granted to this country provisionally until the
entry into force of an Interim Agreement on trade and trade-related matters related to
the Stabilisation and Association Agreement between the European Community and
its Member States and the former Yugoslav Republic of Macedonia.

The Federal Republic of Yugoslavia,
in the light of recent developments in the
country, complies with the basic conditions for the granting of autonomous trade
preferences as set out in the Council Conclusions of 29 April 1997. The General
Affairs Council of 9 October 2000 invited the Commission to submit proposals on
extending to the FRY the benefit of the exceptional trade measures as provided by
Regulation (EC) 2007/2000.

(4)

Kosovo, as defined by the United Nations Security Council Resolution 1244 of 10
to international civil administration by the United Nations
June 1999 is subject

2

OJ L 240, 23.09.2000, p. 1.

5

Mission in Kosovo (UNMIK) which has
administration.

established a

separate

customs

(5)

It is, therefore, appropriate to extend fully the arrangements provided for in Regulation
(EC) No 2007/2000 to the former Yugoslav Republic of Macedonia and the Federal
Republic of Yugoslavia, including Kosovo as defined by UNSC Resolution 1244 of 10
June 1999.

HAS ADOPTED THIS REGULATION:

Regulation (EC) No 2007/2000 is hereby amended as follows:

Article 1

1.

2.

3.

4.

5.

6.

7.

8.

9.

in Article 1 (1) ‘originating in the Republics of Albania, Bosnia and Herzegovina and
Croatia as well as Kosovo’ shall be replaced by ‘originating in the Republics of
Albania, Bosnia and Herzegovina, Croatia,
the former Yugoslav Republic of
Macedonia and the Federal Republic of Yugoslavia including Kosovo as defined by
UNSC Resolution 1244 of 10 June 1999’;

in Article 1 (2) ‘and the Former Yugoslav Republic of Macedonia’ shall be deleted;

Article 1 (3) shall be repealed;

in Article 2 (2) ‘Albania, Bosnia and Herzegovina and Croatia’ to be replaced by
‘Albania, Bosnia and Herzegovina, Croatia,
the former Yugoslav Republic of
Macedonia and the Federal Republic of Yugoslavia’;

in Article 4 (1) ‘in Albania, Bosnia and Herzegovina and Croatia’ shall be replaced
by ’in the countries and territories referred to in Article 1 (1)’

in Article 4(2),

(1)

the amount of ‘10900’ tonnes shall be replaced by ’22525’ tonnes;

(2)

(3)

a point (c) ‘1650 tonnes (carcase weight) for ‘baby-beef’ products originating
in the former Yugoslav Republic of Macedonia’ and a point (d) ‘9975 tonnes
(carcase weight) for ‘baby-beef’ products originating in the Federal Republic
of Yugoslavia including Kosovo’ shall be inserted;

the third subparagraph shall be replaced by ‘Imports into the Community of
‘baby-beef’ products defined in Annex II and originating in Albania shall not
benefit from a tariff concession’;

Article 5 shall be repealed;

in Article 7 the words ‘and Article 5’ shall be deleted;

in Article 13 ‘XM Former Yugoslav Republic of Macedonia (1)’ shall be inserted
after ‘BA Bosnia and Herzegovina (1)’

6

10.

in Article 16 (1) ‘and goods originating in the former Yugoslav Republic of
Macedonia which are put into free circulation in the Community before [the first day
of the third month following the entry into force of this Regulation]’ shall be inserted
after ‘1 January 2001’;

11.

Annex I shall be replaced by a new Annex I as follows:

7

Concerning the tariff quotas referred to in Article 4(1)

ANNEX I

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

Quota
volume per
year 3

150 tonnes

Beneficiaries

Rate of duty

Exemption

Albania, Bosnia and
Herzegovina,
Croatia, Former
Yugoslav Republic
of Macedonia,
Federal Republic of
Yugoslavia
including Kosovo

350 tonnes

Exemption

Albania, Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav Republic
of
Macedonia,
Federal Republic of
Yugoslavia
including Kosovo

Order No

CN Code

Description

(Salmo

Oncorhynchus

trutta, Oncorhynchus
Trout
clarki,
mykiss,
aguabonita,
Oncorhynchus
gilae, Oncorhynchus
Oncorhynchus
Oncorhynchus
apache
chrysogaster):
fresh or chilled;
frozen; dried, salted or in brine, smoked;
fillets and other fish meat; flours, meals
and pellets, fit for human consumption

live;

and

live;

fresh or chilled;

Carp:
frozen;
dried, salted or in brine, smoked; fillets
and other fish meat; flours, meals and
pellets, fit for human consumption

09.1571

09.1573

0301 91 10

0301 91 90

0302 11 10

0302 11 90

0303 21 10

0303 21 90

0304 10 11

0304 10 19

0304 10 91

0304 20 11

0304 20 19

0304 90 10

0305 10 00

0305 30 90

0305 49 45

0305 59 90

0305 69 90

0301 93 00

0302 69 11

0303 79 11

0304 10 19

0304 10 91

0304 20 19

0304 90 10

0305 10 00

0305 30 90

0305 49 80

0305 59 90

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

0305 69 90

3

One global volume per tariff quota shared among the beneficiaries.

8

live;

fresh or chilled;

Sea bream (Dentex dentex and Pagellus
spp.):
frozen;
dried, salted or in brine, smoked; fillets
and other fish meat; flours, meals and
pellets, fit for human consumption

150 tonnes

Exemption

Albania, Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav Republic
of
Macedonia,
Federal Republic of
Yugoslavia
including Kosovo

Sea bass (Dicentrarchus labrax): live;
fresh or chilled; frozen; dried, salted or
in brine, smoked; fillets and other fish
meat; flours, meals and pellets, fit for
human consumption

650 tonnes

Exemption

Albania, Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav Republic
of
Macedonia,
Federal Republic of
Yugoslavia
including Kosovo

09.1575

ex

0301 99 90

0302 69 61

0303 79 71

ex

0304 10 38

09.1577

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

ex

0304 10 98

0304 20 95

0304 90 97

0305 10 00

0305 30 90

0305 49 80

0305 59 90

0305 69 90

0301 99 90

0302 69 94

0303 77 00

0304 10 38

0304 10 98

0304 20 95

0304 90 97

0305 10 00

0305 30 90

0305 49 80

0305 59 90

0305 69 90

09.1579

1604 13 11

Prepared or preserved sardines

250 tonnes

1604 13 19

ex

1604 20 50

09.1561

1604 16 00
1604 20 40

Prepared or preserved anchovies

1000
tonnes

6%

12,5%

Albania, Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav Republic
Macedonia,
of
Federal Republic of
Yugoslavia
including Kosovo

Albania, Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav Republic
of
Macedonia,
Federal Republic of
Yugoslavia
including Kosovo

9

fresh grapes, of an actual
Wine of
alcoholic
not
strength
exceeding 15% vol, other than sparkling
wine

volume

by

545 000 hl

Exemption

Albania, Bosnia and
Herzegovina,
Croatia,
Former
Yugoslav Republic
of
Macedonia,
Federal Republic of
Yugoslavia
including Kosovo,
Slovenia

09.1515

2204 21 79

ex

2204 21 80

2204 21 83

ex

2204 21 84

2204 29 65

ex

2204 29 75

2204 29 83

ex

2204 29 84

10

12.

Annex III shall be repealed.

Article 2

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

It shall apply from the first day of the first month after its entry into force.

This Regulation shall cease to apply to products originating in the former Yugoslav Republic
of Macedonia as from the day of entry into force of the Interim Agreement on trade and trade-
related matters relating to the Stabilisation and Association Agreement between the European
Community and its Member States and the former Yugoslav Republic of Macedonia or the
Stabilisation and Association Agreement between the European Community and its Member
States and the former Yugoslav Republic of Macedonia.

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

Done at Brussels,

For the Council
The President

11

FINANCIAL STATEMENT

1.

TITLE OF OPERATION:

Proposal for a Council Regulation amending Regulation (EC) No 2007/2000 by
extending to the former Yugoslav Republic of Macedonia and the Federal Republic
of Yugoslavia the exceptional
for countries and territories
trade measures
participating in or linked to the European Union's Stabilisation and Association
process and amending Regulation (EC) No 2820/98

2.

BUDGET HEADING INVOLVED:

Chapter 12, Article 120.

3.

LEGAL BASIS:

Article 133 of the EC Treaty.

4.

OBJECTIVE:

• The full extension of the EC autonomous preferential trade arrangements to the

Federal Republic of Yugoslavia;

• The provisional granting of these preferences to the former Yugoslav Republic of
Macedonia until the entry into force of an Interim Agreement on trade and trade-
related matters in the framework of a Stabilisation and Association Agreement
with the EU;

5.

FINANCIAL IMPACT:

least 80% of all

The existing Cooperation Agreement with FYROM already provides for duty-free
access for at
imports from this country. The abolishment of
remaining tariff ceilings for certain industrial products and the improved access for
agricultural products including processed agricultural products and fisheries may
increase the rate of duty-free access to the Community up to 95%. A significant
financial impact in terms of losses for the Community budget is, however, unlikely,
mainly because in the past FYROM was unable to use fully the given preferences.
Imports from FYROM represent 0,08% of total imports of the Community; imports
from the FRY represent 0,07% of total imports of the Community. The additional
losses to the Community budget may be roughly put at around 20MEURO.

12

6.

FIGHT AGAINST FRAUD:

Provisions on the management of tariff quotas, specific conditions for entitlement to
the preferential arrangements (Article 2) and a temporary suspension clause (Article
12) include the measures necessary for preventing and protecting against fraud and
irregularities in the case of failure to provide administrative cooperation as required
for the verification of evidence of origin or massive increase of exports into the
Community above the level of normal production and export capacity of the
countries and territories concerned.

13

2000/0285 (ACC)

Proposal for a

COUNCIL DECISION

concerning the suspension of the trade and trade-related provisions of the Cooperation
Agreement between the European Community and the former Yugoslav Republic of
Macedonia signed on 29 April 1997

THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty establishing the European Community, and in particular Art. 133
thereof, in conjunction with Art. 300, §2, second indent;

Having regard to the proposal from the Commission,

Whereas,

(1)

(2)

(3)

A Cooperation Agreement between the European Community and the former
Yugoslav Republic of Macedonia was signed by way of an exchange of letters on 29
April 1997, and entered into force on 1 January 1998;

Council Regulation (EC) No. 2007/20004 introducing exceptional trade measures for
countries and territories participating in or linked to the European Union's Stabilisation
and Association process, amending Regulation (EC) No 2820/98, and repealing
Regulations (EC) Nos 1763/1999 and 6/2000, does not apply to imports into the
Community of products originating in the former Yugoslav Republic of Macedonia
with the exception of wine imports;

By Council Regulation (EC) No.…./2000 amending Council Regulation (EC) No.
2007/2000 the equivalent of improved autonomous trade preferences under Council
Regulation No. 2007/2000 has been granted to the former Yugoslav Republic of
Macedonia, with the exception of concessions for wine, until the entry into force of an
Interim Agreement on trade and trade-related matters in the context of the Stabilisation
and Association Agreement between the Community and its Member States and the
former Yugoslav Republic of Macedonia or
the Stabilisation and Association
Agreement between the Community and its Member States and the former Yugoslav
Republic of Macedonia;

(4)

The trade provisions and related annexes of the Cooperation Agreement therefore need
to be suspended in order to apply to the former Yugoslav Republic of Macedonia the
improved autonomous trade preferences under Council Regulation No. 2007/2000, as
amended by Council Regulation (EC) No.…./2000 .

4

OJ L 240, 23.09.2000, p.1.

14

HAS DECIDED AS FOLLOWS

Article 1

The exchange of letters, attached in the Annex, between the European Community and the
former Yugoslav Republic of Macedonia concerning the suspension of Title II on trade and
trade related provisions, including the relevant Annexes, of the Co-operation Agreement
between the European Community and the former Yugoslav Republic of Macedonia signed
by way of exchange of letters on 29 April 1997 is hereby approved on behalf of the European
Community.

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

Article 2

The decision shall be published in the Official Journal of the European Communities. It shall
apply from the day of application of the Council Regulation (EC) amending Council
Regulation (EC) No. 2007/2000.

Done at Brussels, …..

For the Council
The President

15

ANNEX

EXCHANGE OF LETTERS

Between the European Community and the former Yugoslav Republic of Macedonia
concerning the suspension of trade and trade-related provisions of the Cooperation
Agreement

Letter from the European Community

Sir,

In view of the improved autonomous trade preferences approved by the Council Regulation
(Ec) No 2007/2000 of 18 September 2000,
introducing exceptional trade measures for
countries and territories participating in or linked to the European Union's Stabilisation and
Association process, amending Regulation (EC) No 2820/98, and repealing Regulations (EC)
Nos 1763/1999 and 6/2000, as last amended by Council Regulation No. …. , it has been
agreed between the European Community and the former Yugoslav Republic of Macedonia to
suspend the provisions of Title II on trade and trade related provisions, including all related
Annexes, of the Cooperation Agreement between the European Community and the former
Yugoslav Republic of Macedonia signed by way of exchange of letters on 29 April 1997.

Council Regulation (EC) No. 2007/2000 of 18 September 2000, as amended by Council
Regulation no. ….will therefore regulate, as from its date of application, the trade regime
between the European Community and the former Yugoslav Republic of Macedonia and the
Title II on trade and trade related provisions,
including all related Annexes, of the
Cooperation Agreement between the European Community and the former Yugoslav
Republic of Macedonia, shall cease to apply to former Yugoslav Republic of Macedonia at
the same date.

The suspension of Title II, and all trade related provisions of the Cooperation Agreement shall
cease whenever the Council Regulation (EC) No. 2007/2000 will cease to apply to the former
Yugoslav Republic of Macedonia.

Council Regulation (EC) No. 2007/2000, as amended, shall cease to apply to products
originating in former Yugoslav Republic of Macedonia upon entry into force of an Interim
Agreement on trade and trade-related matters in the context of the Stabilisation and
Association Agreement between the Community and its Member States and the former
Yugoslav Republic of Macedonia or the Stabilisation and Association Agreement between the
Community and its Member States and the former Yugoslav Republic of Macedonia.

I would be grateful if you could confirm the agreement of the former Yugoslav Republic of
Macedonia to the above.

[formule de politesse]

On behalf of the European Community

16

Letter from the former Yugoslav Republic of Macedonia

Sir,

I have the honour to acknowledge receipt of your letter, herewith attached, concerning the
suspension of Title II on trade and trade related provisions, including all related Annexes, of
the Cooperation Agreement between the European Community and the former Yugoslav
Republic of Macedonia signed by way of exchange of letters on 29 April 1997.

The former Yugoslav Republic of Macedonia has the honour to confirm its agreement with
the content of this letter.

[formule de politesse]

For the Government of the

former Yugoslav Republic of Macedonia

17