Proposal for a Council Decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Community and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip concerning reciprocal liberalisation measures and the replacement of Protocols 1 and 2 to the EC-Palestinian Authority Interim Association Agreement
Date: 2004-10-19
Institutions: European Commission
Subjects: Palestine Liberation Organisation, agricultural product, association agreement, interim agreement (EU), international negotiations, liberalisation of trade, protocol to an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.10.2004 
COM(2004) 680 final 

2004/0246 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an Exchange of Letters between  
the European Community and the Palestine Liberation Organisation (PLO) for the 
benefit of the Palestinian Authority of the West Bank and the Gaza Strip concerning 
reciprocal liberalisation measures and the replacement of Protocols 1 and 2  
to the EC-Palestinian Authority Interim Association Agreement 

(presented by the Commission) 

EN 

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EXPLANATORY MEMORANDUM 

1. 

2. 

3. 

4. 

Article 14 of the Euro-Mediterranean Interim Association Agreement establishing an 
association  between  the  European  Community,  of  the  one  part,  and  the  Palestine 
Liberation Organisation, acting on the behalf of the Palestinian Authority of the West 
Bank  and  the  Gaza  Strip  (hereinafter  "the  Palestinian  Authority"),  of  the  other  part 
(hereinafter  "the  Interim  Association  Agreement")  in  force  since  1 July  1997,  states 
that  the  Community  and  the  Palestinian  Authority  shall  progressively  establish  a 
greater liberalisation of their trade in agricultural products of interest to both Parties. 
It provides that, from 1 January 1999, the Community and the Palestinian Authority 
shall  examine  the  situation  in  order  to  determine  the  measures  to  be  applied  by  the 
Community  and  the  Palestinian  Authority  from  1  January  2000,  in  accordance  with 
the objective of greater trade liberalisation in agriculture. 

The  Council  has  authorised  the  Commission  to  start  negotiations  with  Palestinian 
Authority, with the view to reach the objective of greater liberalisation in agriculture, 
in  conformity  with  the  spirit  of  the  Interim  Association  Agreement  and  of  the 
Barcelona Process. 

Further  to  negotiations  held  between  the  Parties,  they  agreed  to  replace  the 
Protocols 1  and  2  of  the  Interim  Association  Agreement,  with  the  view  to  allow 
greater liberalisation in trade of agricultural products.  

The objective of this proposal is to ask the Council to approve the replacement of the 
Protocols 1 and 2 by means of an Agreement in the form of an Exchange of Letters. 

EN 

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2004/0246 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an Exchange of Letters between  
the European Community and the Palestine Liberation Organisation (PLO) for the 
benefit of the Palestinian Authority of the West Bank and the Gaza Strip concerning 
reciprocal liberalisation measures and the replacement of Protocols 1 and 2  
to the EC-Palestinian Authority Interim Association Agreement 

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) 

Article  14  of  the  Euro-Mediterranean  Interim  Association  Agreement  establishing  an 
association  between  the  European  Community,  of  the  one  part,  and  the  Palestine 
Liberation Organisation, acting on the behalf of the Palestinian Authority of the West 
Bank  and  the  Gaza  Strip  (hereinafter  "the  Palestinian  Authority"),  of  the  other  part1 
(hereinafter  "the  Interim  Association  Agreement")  in  force  since  1  July  1997,  states 
that  the  Community  and  the  Palestinian  Authority  shall  progressively  establish  a 
greater liberalisation of their trade in agricultural products of interest to both Parties. It 
provides that, from 1 January 1999, the Community and the Palestinian Authority are 
to  examine  the  situation  in  order  to  determine  the  measures  to  be  applied  by  the 
Community and the Palestinian Authority from 1 January 2000, in accordance with this 
objective. 

(2) 

The  Commission  has,  on  behalf  of  the  Community,  negotiated  an  Agreement  in  the 
form  of  an  Exchange  of  Letters  with  a  view  to  replacing  Protocols  1  and  2  to  the 
Interim Association Agreement. 

(3) 

The Agreement, initialled on … 2004, should be approved. 

(4) 

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 Commission2. 

1 
2 

OJ L 187, 16.7.1997, p. 3. 
OJ L 184, 17.7.1999, p. 23. 

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HAS DECIDED AS FOLLOWS: 

Article 1 

The Agreement in the form of an Exchange of Letters between the European Community and 
the Palestinian Authority concerning reciprocal liberalisation measures and the replacement of 
Protocols 1 and 2 to the Interim Association Agreement between the European Community, of 
the one part, and the Palestine Liberation Organisation, acting on the behalf of the Palestinian 
Authority of the West Bank and the Gaza Strip, of the other part, is hereby approved on behalf 
of the Community. 

The text of the Agreement is attached to this Decision. 

The Commission shall adopt the necessary implementation measures for Protocols 1 and 2 in 
accordance with the procedure laid down in Article 3. 

Article 2 

Article 3 

1. 

2. 

The  Commission  shall  be  assisted  by 
the 
corresponding provisions of regulations on the common organisation of markets or by 
the  Customs  Code  Committee  established  by  Article  248bis  of  Council  Regulation 
(EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code3. 

the  committees  established  by 

Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC 
of 28 June 1999 laying down the procedures for the exercise of implementing powers 
conferred on the Commission4 shall apply. 

The  period  laid  down  in  Article  4(3)  of  Decision  1999/468/EC  shall  be  set  at  one 
month. 

3. 

The Committee shall adopt its Rules of Procedure. 

Article 4 

The President of the Council is hereby authorised to designate the person empowered to sign 
the Agreement so as to bind the Community. 

Done at Brussels,  

For the Council 
The President 

3 

4 

OJ  L  302,  19.10.1992,  p.  1.  Regulation  as  last  amended  by  Regulation  (EC)  No  2700/2000  of  the 
European Parliament and of the Council (OJ L 311, 12.12.2000, p. 17). 
OJ L 184 , 17.7.1999, p. 23. 

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AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS 

between the European Community and the Palestine Liberation Organisation (PLO) for 
the benefit of the Palestinian Authority of the West Bank and Gaza Strip concerning 
reciprocal liberalisation measures and the replacement of Protocols 1 and 2  
to the EC-Palestinian Authority Interim Association Agreement 

A. Letter from the European Community 

Brussels, ………. 2004 

Sir, 

I  have  the  honour  of  referring  to  the  negotiations  which  took  place  under  Article  14  of  the 
Euro-Mediterranean  Interim  Association  Agreement  establishing  an  association  between  the 
European Community, of the one part, and the Palestine Liberation Organisation, acting on the 
behalf  of  the  Palestinian  Authority  of  the  West  Bank  and  the  Gaza  Strip  (hereinafter  "the 
Palestinian Authority"), of the other part (hereinafter "the Interim Association Agreement"), in 
force since 1 July 1997, which states that the Community and the Palestinian Authority shall 
progressively establish greater liberalisation of their trade in agricultural products of interest to 
both parties. 

These negotiations were held in accordance with the provisions of Article 14, which stipulates 
that,  from  1  January  1999,  the  Community  and  the  Palestinian  Authority  shall  examine  the 
situation  in  order  to  determine  the  measures  to  be  applied  by  the  Community  and  the 
Palestinian  Authority  from  1  January  2000  in  accordance  with  the  objective  of  progressive 
greater liberalisation in agriculture. 

On the conclusion of the negotiations, the two Parties agreed to the following: 

1. 

2. 

3. 

Protocols 1  and  2  to  the  Interim  Association  Agreement  and  their  annexes  shall  be 
replaced by Protocols 1 and 2 and their annexes appearing in Annex I and II to this 
Exchange of Letters. 

The Agreement in the form of an Exchange of Letters between the Community and 
the Palestinian Authority annexed to the Interim Association Agreement, relating to 
Protocol 1  and  concerning  imports  into  the  Community  of  fresh  cut  flowers  and 
flower  buds  falling  within  subheading  0603 10  of  the  Common  Customs  Tariff,  is 
hereby repealed. 

No later than  in  2007,  the  Community  and the Palestinian Authority will assess the 
situation with a view to determining the liberalisation measures to be applied by the 
Community  and  the  Palestinian  Authority  from  1  January  2008,  in  accordance  with 
the objective laid down in Article 12 of the Interim Association Agreement. 

The provisions of this Agreement shall be applicable from 1 January 2005. 

I would be grateful if you could confirm the agreement of your Government to the above. 

Please accept, Sir, the assurance of my highest consideration. 

On behalf of the Council of the European Union 

EN 

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B. Letter from the Palestinian Authority 

Brussels, ………. 2004 

Sir, 

I have the honour to acknowledge receipt of your letter of today's date, worded as follows: 

"I  have  the  honour  of  referring  to  the  negotiations  which  took  place  under  Article  14  of  the 
Euro-Mediterranean  Interim  Association  Agreement  establishing  an  association  between  the 
European Community, of the one part, and the Palestine Liberation Organisation, acting on the 
behalf  of  the  Palestinian  Authority  of  the  West  Bank  and  the  Gaza  Strip  (hereinafter  "the 
Palestinian Authority"), of the other part (hereinafter "the Interim Association Agreement"), in 
force since 1 July 1997, which states that the Community and the Palestinian Authority shall 
progressively establish greater liberalisation of their trade in agricultural products of interest to 
both parties. 

These negotiations were held in accordance with the provisions of Article 14, which stipulates 
that,  from  1  January  1999,  the  Community  and  the  Palestinian  Authority  shall  examine  the 
situation  in  order  to  determine  the  measures  to  be  applied  by  the  Community  and  the 
Palestinian  Authority  from  1  January  2000  in  accordance  with  the  objective  of  progressive 
greater liberalisation in agriculture. 

On the conclusion of the negotiations, the two Parties agreed to the following: 

1. 

2. 

3. 

Protocols 1  and  2  to  the  Interim  Association  Agreement  and  their  annexes  shall  be 
replaced by Protocols 1 and 2 and their annexes appearing in Annex I and II to this 
Exchange of Letters. 

The Agreement in the form of an Exchange of Letters between the Community and 
the Palestinian Authority annexed to the Interim Association Agreement, relating to 
Protocol 1  and  concerning  imports  into  the  Community  of  fresh  cut  flowers  and 
flower  buds  falling  within  subheading  0603 10  of  the  Common  Customs  Tariff,  is 
hereby repealed. 

No later than  in  2007,  the  Community  and the Palestinian Authority will assess the 
situation with a view to determining the liberalisation measures to be applied by the 
Community  and  the  Palestinian  Authority  from  1  January  2008,  in  accordance  with 
the objective laid down in Article 12 of the Interim Association Agreement. 

The provisions of this Agreement shall be applicable from 1 January 2005. 

I would be grateful if you could confirm the agreement of your Government to the above." 

The Palestinian Authority has the honour of confirming its agreement with the contents of this 
letter. 

Please accept, Sir, the assurance of my highest consideration. 

For the Palestinian Authority 

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ANNEX I 

PROTOCOL 1 

concerning the arrangements applicable to imports into the Community of  
agricultural products originating in the West Bank and the Gaza Strip 

5. 

The  products  listed  in  the  Annex,  originating  in  the  West  Bank  and  the  Gaza  Strip 
shall  be  admitted  for  importation  into  the  Community,  according  to  the  conditions 
contained hereafter and in the Annex. 

(a)  Customs duties are eliminated or reduced as indicated in column "a"; 

(b)  For  certain  products,  for  which  the  Common  Customs  Tariff  foresees  the 
application  of  an  ad  valorem  duty  and  a  specific  duty,  the  rates  of  reduction, 
indicated in columns "a" and "c", only apply to the ad valorem duty; 

(c)  For certain products, customs duties are eliminated within the limit of the tariff 
quotas listed in column "b" for each of them; the tariff quotas shall apply on an 
annual basis from 1 January to 31 December, unless otherwise specified; 

(d)  For the quantities imported in excess of the quotas, the common customs duties 
are, according to the product concerned, applied in full or reduced, as indicated 
in column "c". 

6. 

For certain products, the exemption of customs duties is granted in the framework of 
reference quantities as indicated in column "d". 

Should the volume of imports of one of these products exceed the reference quantity, 
the Community, having regard to an annual review of trade flows which it shall carry 
out,  may  make  the  product  in  question  subject  to  a  Community  tariff  quota,  the 
volume of which shall be equal to the reference quantity. In that case, for quantities 
imported  in  excess  of  the  quota,  the  common  customs  duty  is,  according  to  the 
product concerned, applied in full or reduced as indicated in column "c". 

7. 

8. 

For  the  first  year  of  application,  the  volumes  of  the  tariff  quotas  and  the  reference 
quantities shall be calculated as a pro rata of the basic volumes, taking into account 
the part of the period elapsed before the date of entry into force of this agreement. 

For some products listed in the Annex, the volume of the tariff quota are increased on 
1 January  2006  and  1 January  2007,  on  the  basis  of  the  volume  indicated  in 
column "e". 

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CN Code (1) 

Description (2) 

Annex to Protocol 1 

Reduction 
of the 
MFN 
customs 
duty  
(%) (3) 

Tariff 
quota  
(t, unless 
otherwise 
indicated)

Reduction of 
the MFN 
customs 
duty beyond 
current or 
possible 
tariff quota 
% (3) 

0409 00 00 Natural honey 

a 

100 

b 

500 

ex  0603 10  Cut flowers and flower buds, fresh 

100 

2 000 

0702 00 00 Tomatoes, 

or 
1 December to 31 March 

fresh 

chilled, 

from 

100 

ex  0703 10  Onions, fresh or chilled, from 15 February to 

100 

15 May 

0709 30 00 Aubergines  (eggplants),  fresh  or  chilled, 

100 

from 15 January to 30 April 

ex  0709 60 

Fruits of the genus Capsicum or of the genus 
Pimenta, fresh or chilled: 

0709 60 10 Sweet peppers 

0709 60 99 Other 

0709 90 70 Courgettes, 

fresh 

or 

chilled, 

from 

1 December to end of February 

ex  0709 90 90 Wild  onions  of 

the  species  Muscari 
comosum, fresh or chilled, from 15 February 
to 15 May 

0710 80 59 Fruits  of  the  genus  Capsicum  or  Pimenta, 
other  than  sweet  peppers,  uncooked  or 
cooked  by  steaming  or  boiling  in  water, 
frozen 

0711 90 10 Fruits  of  the  genus  Capsicum  or  Pimenta, 
other 
than  sweet  peppers,  provisionally 
preserved  but  unsuitable  in  that  state  for 
immediate consumption 

100 

100 

100 

100 

100 

100 

c 

0 

0 

60 

60 

60 

40 

80 

60 

60 

80 

80 

Reference 
quantity  
(t, unless 
otherwise 
indicated) 

Specific 
provi-
sions 

d 

e 

point 4 – 
yearly 
increase 
of 250 t 

point 4 – 
yearly 
increase 
of 250 t 

2 000 

3 000 

1 000 

300 

Mushrooms,  wood  ears  (Auricularia  spp.), 
jelly fungi (Tremella spp.) and truffles, dried

100 

500 

0 

0712 31 00 
0712 32 00 
0712 33 00 
0712 39 00 

ex  0805 10  Oranges, fresh 

ex  0805 20  Mandarins 

(including 

and 
satsumas); clementines, wilkings and similar 
citrus hybrids, fresh 

tangerines 

100 

100 

60 

60 

25 000 

500 

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CN Code (1) 

Description (2) 

Reduction 
of the 
MFN 
customs 
duty  
(%) (3) 

Tariff 
quota  
(t, unless 
otherwise 
indicated)

Reduction of 
the MFN 
customs 
duty beyond 
current or 
possible 
tariff quota 
% (3) 

0805 40 00 Grapefruit 

ex  0805 50 10 Lemons  (Citrus  limon,  Citrus  limonum), 

fresh 

b 

a 

100 

100 

0806 10 10 Fresh  table  grapes,  from  1 February  to 

100 

1 000 

14 July 

0807 19 00 Melons 

(excluding  watermelons), 

fresh, 

100 

from 1 November to 31 May 

0810 10 00 Fresh  strawberries,  from  1 November  to 

100 

2 000 

31 March 

0812 90 20 Oranges, 

provisionally 
in 

that  state  for 

preserved, 

but 
immediate 

unsuitable 
consumption 

0904 20 30 Fruits of the genus Capscium or of the genus 
Pimenta,  other  than  sweet  peppers,  dried, 
neither crushed or ground 

100 

100 

c 

80 

40 

0 

50 

0 

80 

80 

1509 10  Virgin olive oil 

100 

2 000 

0 

2001 90 20 Fruits  of  the  genus  Capsicum,  other  than 
sweet  peppers  or  pimentos,  prepared  or 
preserved by vinegar or acetic acid 

2005 90 10 Fruits  of  the  genus  Capsicum,  other  than 
sweet  peppers  or  pimentos,  prepared  or 
preserved  otherwise  than  by  vinegar  or 
acetic acid, not frozen 

100 

100 

80 

80 

Reference 
quantity  
(t, unless 
otherwise 
indicated) 

Specific 
provi-
sions 

d 

e 

800 

10 000 

point 4 – 
yearly 
increase 
of 500 t 

point 4 – 
yearly 
increase 
of 500 t 

point 4 – 
yearly 
increase 
of 500 t 

(1)  CN codes corresponding to Regulation (EC) No 1789/2003 (OJ L 281, 30.10.2003, p. 1). 
(2)  Without  prejudice  to  the  rules  for  the  interpretation  of  the  combined  nomenclature,  the  description  of  the  products  is 
deemed to be indicative only, the preferential scheme being determined, for the purposes of this Annex, 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. 

(3)  Duty reduction applies only to ad valorem customs duties. 

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ANNEX II 

PROTOCOL 2 

concerning the arrangements applicable to imports into the West Bank and  
the Gaza Strip of agricultural products originating in the Community 

1. 

2. 

3. 

4. 

The products listed in the Annex originating in the Community shall be admitted for 
importation  into  the  West  Bank  and  the  Gaza  Strip  according  to  the  conditions 
contained herein and in the Annex. 

Import  duties  on  imports  are  either  eliminated  or  reduced  to  the  level  indicated  in 
column  "a",  within  the  limit  of  the  annual  tariff  quota  listed  in  column  "b",  and 
subject to the specific provisions indicated in column "c". 

For the quantities imported in excess of the tariff quotas, the general customs duties 
applied  to  third  countries  shall  apply,  subject  to  the  specific  provisions  indicated  in 
column "c". 

For  the  first  year  of  application,  the  volumes  of  the  tariff  quotas  and  the  reference 
quantities shall be calculated as a pro rata of the basic volumes, taking into account 
the part of the period elapsed before the date of entry into force of this agreement. 

Annex to Protocol 2 

CN Code 

Description 

0102 90 71  Live  bovine  animals,  of  a  weight  exceeding  300  kg,  for 

slaughter, other than heifers and cows 

0202 30 90  Meat of bovine animals, boneless excluding forequarters, 
"compensated"  quarters,  crop,  chuck  and  blade  and 
brisket cuts, frozen 

0206 22 00  Edible livers of bovine animals frozen 

0406 

Cheese and curd 

0407 00 19  Poultry eggs for hatching, other than those of turkeys or 

geese 

1101 00 15  Flour of common wheat and spelt 

2309 90 99  Other preparations of a kind used in animal feeding 

Specific 
provisions

c 

Duty (%) 

Tariff quota  
(t, unless 
otherwise 
indicated) 

a 

0 

0 

0 

0 

0 

0 

2 

b 

300 

200 

100 

200 

120 000 pieces 

13 000 

100 

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FICHE FINANCIÈRE 

1. 

2. 

3. 

4. 

LIGNE BUDGÉTAIRE: 
Chapitre 10 – droits agricoles 

CRÉDITS: 
891,4 Mio € 

INTITULÉ DE LA MESURE: 
Décision  du  Conseil  sur  la  conclusion  d’un  accord  sous  forme  d’échange  de  lettres  entre  l’Union 
européenne  et  l’Autorité  palestinienne  concernant  des  mesures  de  libéralisation  réciproques  et  le 
remplacement  des  protocoles  n° 1  et  n° 2  de  l’accord  d’association  intérimaire  CE/Autorité 
palestinienne. 

BASE JURIDIQUE: 
Article 133 du Traité 

OBJECTIFS DE LA MESURE: 
Augmenter certains contingents agricoles réciproques entre la Palestine et l’Union européenne. 

5. 

INCIDENCES FINANCIÈRES 

PÉRIODE DE
12 MOIS 

EXERCICE  
EN COURS 

(Mio EUR) 

(Mio EUR) 

5.0  DÉPENSES A LA CHARGE 

– 
DU BUDGET DES CE 
(RESTITUTIONS/INTERVENTIONS) 
– 
– 

DES BUDGETS NATIONAUX 
D'AUTRES SECTEURS 

5.1  RECETTES 

– 

RESSOURCES PROPRES DES CE 
– 
(PRÉLÈVEMENTS/DROITS DE DOUANE)
SUR LE PLAN NATIONAL 
– 

–6 Mio € 

– 

– 

5.0.1  PRÉVISIONS DES DÉPENSES 
5.1.1  PRÉVISIONS DES RECETTES 

5.2  MODE DE CALCUL: 

2006 

2007 

2008 

– 
–6 Mio € 

– 
–6 Mio € 

– 

EXERCICE 
SUIVANT 
2005 
(Mio EUR) 

– 

–6 Mio € 

2009 

– 

La  perte  de  ressources  propres  pour  le  budget  de  l’Union  européenne  est  estimée  à  6  Mio  d’euros 
annuellement. 

6.0 

6.1 

FINANCEMENT POSSIBLE PAR CRÉDITS INSCRITS AU CHAPITRE 
CONCERNÉ DU BUDGET EN COURS D'EXÉCUTION 

FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU 
BUDGET EN COURS D'EXÉCUTION 

6.2  NÉCESSITÉ D'UN BUDGET SUPPLÉMENTAIRE 

6.3  CRÉDITS A INSCRIRE DANS LES BUDGETS FUTURS 

OBSERVATIONS: 

OUI  

OUI  

NON 

NON 

EN 

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