Proposal for a Council Decision relating to the conclusion of an Agreement between the European Community and the Republic of Cyprus concerning fish and fishery products, in the form of an additional Protocol completing the Agreement establishing an association between the European Economic Community and the Republic of Cyprus.
Date: 2001-09-28
Institutions: European Commission
Subjects: Cyprus, fish, fishery product, fishing agreement, protocol to an agreement, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 28.9.2001
COM(2001) 538 final

2001/0221 (ACC)

Proposal for a

COUNCIL DECISION

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

(presented by the Commission)

EXPLANATORY MEMORANDUM

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

Negotiations with Cyprus were held on 11 May and 28 June 2001. 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.

The Community has a large trade surplus vis-à-vis Cyprus in the fishery sector and the major
Cypriot export interest is linked to sea bass, sea bream and fish fry.

As regards sea bass Dicentrarchus labrax (0302 69 94) and Gilt-head seabreams Sparus
aurata (0302 69 95) and sharpsnout bream Puntazzo puntazzo (ex 0302 69 98), it was agreed
that the Community will establish a tariff quota common to the three species. The tariff quota,
based on traditional trade, will be 500 tonnes at 7.5% at the entry into force of this agreement.
It will be increased to 600 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.

As regards fish fry of the above mentioned species (ex 0301 99 90) the Community will
establish a tariff quota, based on traditional trade, which will be 12 500 000 pieces at 5% at
the entry into force of this agreement. It will be increased to 15 000 000 pieces 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, both parties will apply a one third
reduction of the tariff duties applied to all other fish and fishery products as covered by the
definition set out in Regulation (EC) No104/2000. 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 the Republic of Cyprus.

2

2001/0221 (ACC)

Proposal for a

COUNCIL DECISION

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

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 the
Republic of Cyprus1, so as to provide for preferential conditions for the importation
into the Community of certain fish and fishery products originating in the Republic of
Cyprus, and into the Republic of Cyprus 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 Cyprus in the form of
an additional Protocol concerning fish and fishery products, completing the Agreement
establishing an association between the European Economic Community and the Republic of
Cyprus, 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 L 133, 21.5.1973, p. 1.

3

Article 2

The tariff quotas referred to in Articles 2 and 3 of the attached agreement in the form of a
protocol shall be managed by the Commission in accordance with Articles 308a and 308b of
Regulation (EC) No 2454/932. Their order numbers shall be 09.1435 and 09.1436
respectively.

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).

4

ANNEX

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

5

ADDITIONAL PROTOCOL

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

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

THE REPUBLIC OF CYPRUS, hereinafter referred to as “Cyprus” of the other part,

WHEREAS the Agreement establishing an association between the European Economic
Communities and The Republic of Cyprus, hereinafter referred to as “the Association
Agreement”, was signed at Brussels on 19 December 1972 and entered into force the 1st. June
1973;

WHEREAS technical negotiations based on Article 2 of the Association Agreement were
carried out and successfully concluded between the Community and Cyprus 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 Association Agreement, which should, therefore, be amended
by means of a Protocol adjusting the trade aspects of the Association Agreement;

WHEREAS the Community and Cyprus 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, both parties 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 Articles 2 and 3 below.

One year after the date of entry into force of this Protocol, both parties 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.

Article 2

From the date of entry into force of this Protocol, the Community will open a Community
tariff quota of 500 tonnes at 7,5% (ad valorem) for Sea bass (Dicentrarchus labrax) falling
under subheading 0302 69 94, Gilt-head seabreams (Sparus aurata) falling under subheading
0302 69 95 and Sharpsnout bream (Puntazzo puntazzo)
subheading
ex 0302 69 98 originating in Cyprus.

falling under

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One year after the entry into force of this Protocol the tariff quota will be settled for
600 tonnes at 0% (ad valorem); two years after the entry into force of this Protocol the tariff
quota will be eliminated.

The provisions of Article 1 will apply for quantities imported into the Community above the
tariff quota.

Article 3

From the date of entry into force of this Protocol for fish fry of the species mentioned in
Article 2, falling under subheading ex 0301 99 90, the Community will open a Community
tariff quota of 12 500 000 pieces at 5% (ad valorem).

One year after the entry into force of this Protocol the tariff quota will be settled for
15 000 000 pieces at 0% (ad valorem); two years after the entry into force of this Protocol the
tariff quota will be eliminated.

The provisions of Article 1 will apply for quantities imported into the Community above the
tariff quota.

Article 4

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 first decimal should be

(a)
rounded down to the nearest whole number;

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

(b)
the nearest whole number;

(c)

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

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 5

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FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Proposal to add a Protocol to the Association Agreement with Cyprus 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
Cyprus 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 Cyprus,

– But

the operation will also cause a reduction in import duties paid by the

Communities operators when importing fishery products into Cyprus.

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 Cyprus, the following table gives the imports
in 1998, 1999 and 2000 and the average duties paid.

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The estimated average duty level for fresh and chilled fish is 12%

Products

1998

1999

2000

and

Fish
products

fishery

1 315 320 Euro

2 664 330 Euro

3 511 930 Euro

Estimated duties

157 838 Euro

319 720 Euro

421 432 Euro

Import duties levied in 1999 showed an increase of approximately 100% over 1998;
duties in 2000 showed an increase of 30% over 1999.

A reasonable increase is also expected for the next years 20% for 2001 and 10% for
2002. But it is not possible to establish a certainty.

7.2

Itemised breakdown of cost

Breakdown

year 2002

2003

2004

Commitment appropriations EUR million (at current prices)

0.1

Estimated lost import duties in
2002
(estimated imports for 2002 =
4 635 743 ) estimated import
duties 8% in place of 12%

Estimated lost import duties in
2003
(estimated imports for 2003 =
5 099 321) reduction of the
second third = import duties =
4%

Estimated lost import duties in
2004 = Duty free
(estimated imports = 5 609 253)

0.2

TOTAL

0.1

0.2

0.2

0.2

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