Proposal for a Council Decision relating to the conclusion of an Agreement between the European Community and the Republic of Malta concerning fish and fishery products, in the form of an additional Protocol completing the Agreement establishing an association between the European Economic Community and Malta.
Date: 2001-09-17
Institutions: European Commission
Subjects: Malta, fishing agreement, protocol to an agreement, sea fish, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 17.09.2001
COM(2001) 515 final

2001/0206 (ACC)

Proposal for a

COUNCIL DECISION

relating to the conclusion of an Agreement between the European Community and the
Republic of Malta concerning fish and fishery products, in the form of an additional
Protocol completing the Agreement establishing an association between the European
Economic Community and Malta.

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 4 April 2001, the Council authorised the Commission to undertake negotiations on behalf
of the Community with Malta in order to further liberalise reciprocal trade in fish and fishery
products.

Negotiations with Malta were held on 23 April. The two parties agreed on a model for simple,
gradual and reciprocal
tariff concessions. The details of the bilateral concessions are
contained in the Agreed Minutes signed by each head of delegation.

Malta has already eliminated all import duties (and similar financial instruments, with the
exception of VAT) on fish and fishery imports from the Community. The Community has a
large trade surplus vis-à-vis Malta in the fisheries sector and the major Maltese export interest
is linked to sea bass and sea bream farmed entirely from raw materials imported from the
Community.

In these conditions, as regards sea bass, sea bream and Gilt-head seabreams, it was agreed that
the Community will establish a tariff quota common for these species. The tariff quota, based
on the traditional trade, will be 1500 tonnes at 7.5% at the entry into force of this agreement.
It will be increased to 1750 tonnes at 0% one year after the entry into force of this agreement
and eliminated two years after the entry into force of this agreement.

From the date of entry into force of this agreement, a one third reduction of the tariff duties
in
applied to all other fish and fishery products as covered by the definition, set out
Regulation (EC) No 104/2000, will be applied. The following year a further reduction of one
third will be applied. Two years after the entry into force of the agreement, full free trade of
all fish and fishery products will be applied.

The Commission is of the opinion that the results of the technical negotiations represent an
acceptable result which, in a simple administrative manner, and on a gradual basis, will lead
to full free trade.

In the 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 Association Agreement
with Malta.

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2001/0206 (ACC)

Proposal for a

COUNCIL DECISION

relating to the conclusion of an Agreement between the European Community and the
Republic of Malta concerning fish and fishery products, in the form of an additional
Protocol completing the Agreement establishing an association between the European
Economic Community and Malta.

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)

is desirable to complete by means of an additional Protocol

the Agreement
It
establishing an association between the European Economic Community and Malta1,
so as to provide for preferential conditions for the importation into the Community of
certain fish and fishery products originating in the Republic of Malta, and into the
Republic of Malta of certain fish and fishery products originating in the Community;

(2)

To that end a new Protocol laying down the trade arrangements for certain fish and
fishery products should be added to the said Association 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 Republic of Malta in the form of
an additional Protocol concerning fish and fishery products, completing the Agreement
establishing an association between the European Economic Community and Malta, is hereby
approved on behalf of the Community.

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

1

OJ L61, of 14.3.1971, p. 3.

3

Article 2

A tariff quota with order number 09.1461 covering the first 12 months of the agreement shall
be opened for 1500 tonnes for Sea bass (Dicentrarchus labrax), Sea bream (Dentex dentex
and Pagellus spp.) and Gilt-head seabreams (Sparus aurata) falling under subheadings 0302
69 94, 0302 69 61 and 0302 69 95 originating in Malta at a duty rate 7,5%. One year later the
tariff quota will be settled for 1750 tonnes at 0%. This tariff quota shall be administrated by
the Commission in accordance with Articles 308a and 308b of Regulation (EC) No 2454/932.

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

2

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

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ANNEX

AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF
MALTA CONCERNING FISH AND FISHERY PRODUCTS IN THE FORM OF AN
ADDITIONAL PROTOCOL COMPLETING THE AGREEMENT ESTABLISHING AN
ASSOCIATION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND
MALTA

5

DRAFT ADDITIONAL PROTOCOL

LAYING DOWN THE TRADE ARRANGEMENTS FOR CERTAIN FISH AND FISHERY
PRODUCTS BETWEEN THE EUROPEAN COMMUNITY AND THE REPUBLIC OF
MALTA

6

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

THE REPUBLIC OF MALTA, hereinafter referred to as “Malta”, of the other part,

WHEREAS the Agreement establishing an association between the European Economic
Communities and Malta, hereinafter referred to as ‘the Association Agreement”, was signed
in Valetta on 5 December 1970 and entered into force in April 1971;

WHEREAS Council Regulation (EC) No 3010/95 suspending totally or partially the customs
duties applicable to certain products falling within Chapters 1 to 24 originating in Malta was
last amended by Council Regulation No 779/98;

WHEREAS technical negotiations based on Article 2 of the Association Agreement were
carried out and successfully concluded between the Community and Malta to agree on
reciprocal tariff concessions in the fisheries sector;

WHEREAS following the terms of Article 3(2) of this Association Agreement fish and
fishery products originating in the Community are imported duty free into Malta;

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

WHEREAS the Community and Malta 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, the Community shall apply a one third
reduction of the tariff duties for fish and fishery products as defined in Article 1 of Council
Regulation (EC) No 104/2000, other than those mentioned in Article 2.

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

Two years after the date of entry into force of this Protocol, full free trade of all fish and
fishery products will be applied by both Parties, including for those mentioned in Article 2.

Article 2

From the date of entry into force of this Protocol, the Community will open a Community
tariff quota of 1500 tonnes at 7,5 % for Sea bass (Dicentrarchus labrax), Sea bream (Dentex
dentex and Pagellus spp.) and Gilt-head seabreams (Sparus aurata) falling under subheadings
0302 69 94, 0302 69 61 and 0302 69 95 originating in Malta. One year later the tariff quota
will be settled for 1750 tonnes at 0 %; two years later the tariff quota will be eliminated.

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

Article 3

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

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

(a)
rounded down to the nearest whole number;

all the figures which have more than 50 after the decimal point should be rounded up

(b)
to the nearest whole number;

(c)

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

In case Malta’s application for accession to the European Union is suspended, both parties
will meet within a six month period to review the agreement in view of the new situation.

Article 4

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

Article 5

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FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal to add a Protocol to the Association Agreement with Malta implementing
an agreement on concessions on fish and fisheries products. These concessions have
been agreed and will be implemented over a period of two 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

DESCRIPTION OF OPERATION

General objective

Full trade liberalisation in fish and fishery products in preparation for accession of
Malta to the European Community.

CLASSIFICATION OF EXPENDITURE OR REVENUE

Type of revenue involved

Import duties

4.

4.1

5.

5.1

6.

TYPE OF EXPENDITURE OR REVENUE

– The proposed operation will cause a reduction in import duties levied on fish and

fishery products originating in Malta.

7.

7.1

FINANCIAL IMPACT

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

Only a few products are imported from Malta, the following table gives the imports
in 1998, 1999 and 2000 and the average duties paid.

The estimated average duty level for fresh and chilled fish is 12% and the estimated
average duty level for canned fish is 24%.

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Products

1998

1999

2000

Fresh and chilled fish
imported

Duties (12%)

Canned fish imported

Duties(24%)

4 216 150 Euro

5 328 860 Euro

5 113 900 Euro

505 938 Euro

639 463 Euro

613 668 Euro

33 910 Euro

8 138 Euro

0 Euro

0 Euro

75 260 Euro

18 062 Euro

TOTAL IMPORTS

4 250 060 Euro

5 328 860 Euro

5 189 160 Euro

TOTAL DUTIES

514 076 Euro

639 463 Euro

631 730 Euro

Import duties levied in 1999 showed an increase of approximately 25% over 1998;
duties in 2000 showed a decrease of 2% over 1999. A decrease in production of fresh
and chilled fish (sea bass and sea bream) is awaited in 2001 and 2002, but it seems
that the canned fish imports could be the same as in 2000. In consequence Year 2002
could be similar to year 1999 for fresh fish but similar to 2000 for canned fish, and a
reasonable increase of 20% could affect both sectors in year 2003.

7.2

Itemised breakdown of cost

Breakdown

year 2002

2003

2004

Commitment appropriations EUR million (at current prices)

Estimated lost import duties in
2002 = 33,3% of the duties paid
in 2001( same as in 1999)

0.2

Estimated lost import duties in
2003 = 33,3% of the duties paid
in 2002

Estimated lost import duties in
2004 = Duty free

0.12

TOTAL

0.2

0.12

0

0

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