Proposal for a Council Regulation amending Regulation (EC) No 2007/2000 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) No 1763/1999 and (EC) No 6/2000
Date: 2004-10-26
Institutions: European Commission
Subjects: action programme, environmental research, public health, quality of life, quality of the environment

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.10.2004 
COM(2004) 739 final 

2004/0255 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2007/2000 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) No 1763/1999 and (EC) No 6/2000 

(presented by the Commission) 

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   EN 

 
 
 
  
  
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EXPLANATORY MEMORANDUM 

Under  the  Stabilisation  and  Association  Process,  the  Community  has  granted 
unlimited  duty-free  access  to  the  Community  market  for  nearly  all  agricultural 
commodities,  including  sugar,  from  the  Western  Balkans.  The  key  aim  of  these 
measures is to revitalise the Western Balkan economies through a privileged access to 
the EU market. 

Steep  increases  in  the  levels  of  sugar  imports,  in  particular  from  Croatia  as  well  as 
from Serbia and Montenegro, have raised questions about the economic sustainability 
of  the  developments  in  that  sector.  Given  current  market  conditions,  the  trade 
concessions  encourage  the  Western  Balkan  countries  to  export  their  domestic 
production  of  originating  sugar  to  the  Community  market  while  supplying  domestic 
consumption from imported sugar (notably cane sugar from Brazil). However, this is 
not a sound development in the long term. 

The  conclusions  of  the  Thessaloniki  Summit  highlighted  the  objective  of  future 
Western  Balkan  accessions  to  the  European  Union.  To  achieve  this  goal,  these 
countries  should  develop  their  economies  on  the  basis  of  sustainable  development, 
market integration and alignment with Community structures. In addition, the current 
incentives  for  the  Western  Balkans  to  export  domestic  production  and  import  for 
domestic  consumption  create  trade  flows  for  which  third  countries  can  seek 
compensation as and when the Western Balkans join the EU. 

The  modification  of  the  import  regime  for  each  of  the  Western  Balkans  countries, 
while allowing the respect of present trade concessions will prepare their sector for the 
adjustments  needed  to  perform  within  a  realistic  and  economically  sustainable 
environment. 

Alongside this proposal, the Commission is presenting a draft recommendation to the 
Council  in  order  to  authorise  it  to  negotiate  similar  changes  to  the  preferential 
arrangements  in  the  respective  bilateral  agreements  with  Croatia  and  the  former 
Yugoslav Republic of Macedonia. The preferential treatment on sugar should also be 
taken into account in the context of the ongoing negotiations for a new Stabilisation 
and Association Agreement with Albania. 

The present proposal includes an amendment to the text of Article 1(1) of Regulation 
(EC) No 2007/2000 to clarify that preferential Community wine imports benefit only 
from  tariff  quotas,  rather  than  unlimited  duty-free  access,  under  the  autonomous 
measures. 

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2004/0255 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 2007/2000 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) No 1763/1999 and (EC) No 6/2000 

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 Commission1, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Under  Council  Regulation  (EC)  No  2007/20002,  the  Community  has  extended 
duty-free  access  to  imports  from  the  countries  concerned  of  most  agricultural  goods, 
including sugar. 

In  the  case  of  sugar,  the  duty-free  access  for  unlimited  quantities  has  created  an 
incentive  for  Western  Balkan  production  at  levels  that  are  unsustainable  in  view  of 
foreseeable developments. 

The  modification  of  the  import  regime  for  each  of  the  Western  Balkans  countries, 
while allowing the respect of present trade concessions will prepare their sector for the 
adjustments  needed  to  perform  within  a  realistic  and  economically  sustainable 
environment. 

Article  1(1)  of  Regulation  (EC)  No  2007/2000  should  be  amended  to  clarify  that 
preferential  Community  wine  imports  from  the  Western  Balkans  benefit  only  from 
tariff quotas, rather than unlimited duty-free access, under the autonomous measures, 

HAS ADOPTED THIS REGULATION: 

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

Article 1 

1 
2 

OJ C [...], [...], p. [...]. 
OJ L 240, 23.9.2000, p. 1.  Regulation  as  last  amended  by  Regulation  (EC)  No  607/2003,  (OJ L 96, 
3.4.2003, p. 18). 

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(1) 

Article 1 is modified as follows: 

(a) 

in paragraph 1, the text “other than those of heading Nos 0102, 0201, 0202 and 
1604  of  the  Combined  Nomenclature”  is  replaced  by  “other  than  those  of 
heading  Nos  0102,  0201,  0202,  1604,  1701,  1702  and  2204  of  the  Combined 
Nomenclature”; 

(b) 

the following paragraph 3 is added: 

“3. 

Imports  of  sugar  products  under  heading  Nos  1701  and  1702  of  the 
Combined Nomenclature originating in Albania, Bosnia and Herzegovina 
and  Serbia  and  Montenegro,  including  Kosovo,  shall  benefit  from 
concessions provided for in Article 4.” 

(2) 

In Article 4, the following paragraph 4 is added: 

“4. 

Imports of sugar products under heading Nos 1701 and 1702 of the Combined 
Nomenclature originating in Albania, Bosnia and Herzegovina and Serbia and 
Montenegro, including Kosovo, shall be subject to the following duty-free tariff 
quotas: 

(a) 

1 000 tonnes for sugar products originating in Albania; 

(b)  12 000 tonnes for sugar products originating in Bosnia and Herzegovina; 

(c) 

150 000 tonnes for sugar products originating in Serbia and Montenegro, 
including Kosovo”. 

(3) 

The title of Article 6 is replaced by  "Implementation of tariff quotas for ‘baby beef’ 

and sugar". 

(4) 

In Article 6 the following subparagraph is added: 

"The  detailed  rules  for  implementing  the  tariff  quotas  for  ‘baby  beef’  and  sugar 
products under heading Nos 1701 and 1702 shall be determined by the Commission 
in  accordance  with  the  procedure  laid  down  in  Article  42(2)  of  Regulation  (EC) 
No 1260/2001." 

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

Article 2 

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

Done at Brussels, 

EN 

For the Council 
The President 

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FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

BUDGET HEADING: 
Chapter 10 – Agricultural duties 

APPROPRIATIONS: 
Budget 2004 
EUR 858,975 millions 

TITLE: 
Council  Regulation  amending  Regulation  (EC)  No  2007/2000  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) 
No 1763/1999 and (EC) No 6/2000. 

LEGAL BASIS: 
Articles 133 and of the Treaty 

AIMS: 
To amend to preferential arrangements for the Community’s imports of sugar from Albania, Bosnia and 
Herzegovina, and Serbia and Montenegro, including Kosovo. 

5. 

FINANCIAL IMPLICATIONS 

5.0 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

– 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR  2004 
(EUR million) 

FOLLOWING 
FINANCIAL 
YEAR  2005 
(EUR million) 

– 

– 

– 

– 

– 

– 

2004 

(1) 
– 

2005 

(1) 
– 

2006 

(1) 
– 

2007 

(1) 
– 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

YES / NO 

YES / NO 

YES / NO 

YES / NO 

OBSERVATIONS:  

The establishment of the duty-free quotas for the imports of sugar from the above mentioned countries has no 
financial impact for the EU budget. 

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