Proposal for a Council Decision on a Union position within the EU - Mexico Joint Committee relating to Annex III to Decision No 2/2000 of the EU-Mexico Joint Council concerning the definition of the concept of 'originating products' and methods of administrative cooperation
Date: 2010-01-29
Institutions: European Commission
Subjects: Mexico, administrative cooperation, chemical product, cooperation agreement (EU), derogation from EU law, originating product, trade agreement (EU)

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EUROPEAN COMMISSION 

Brussels, 29.1.2010 
COM(2010)14 final 

2010/0007 (NLE) 

Proposal for a 

COUNCIL DECISION 

on a Union position within the EU - Mexico Joint Committee relating to Annex III to 
Decision No 2/2000 of the EU-Mexico Joint Council concerning the definition of the 
concept of 'originating products' and methods of administrative cooperation

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The  Economic  Partnership,  Political  Coordination  and  Cooperation  Agreement  between  the 
European Community and its Member States, of the one part, and the United Mexican States, 
of  the  other  part,  was  signed  in  Brussels  on  8  December  1997.  The  trade  liberalisation 
provisions were laid down in Decision No 2/2000 of the EU-Mexico Joint Council established 
by the Agreement (hereinafter "Decision No 2/2000"). 

Annex III to Decision No 2/2000 of the EU-Mexico Joint Council, concerning the definition 
of the concept of 'originating products' and methods of administrative cooperation, sets out the 
rules of origin for the products originating in the territory of the Parties to the Agreement. 

Mexico  and  the  Union  have  agreed  to  introduce  certain  amendments  to  the  rules  of  origin 
contained in Annex III to Decision No 2/2000. 

•  General context 

Some  of  the  rules  of  origin  contained  in  Annex  III  to  Decision  No  2/2000  were  originally 
agreed on a temporary basis and require regular monitoring. This is the case in particular for 
the special rules applying to certain chemical products of HS (Harmonized System) headings 
2914 and 2915 (OJ L 245, 29.9.2000, p.1058.). 

The temporary derogation for chemical products was initially agreed until 30 June 2003. This 
period  was  subsequently  extended  until  30  June  2006  and  until  30  June  2009.  It  is  now 
proposed to extend the period of application of these special rules for another five years, i.e. 
until 30 June 2014. 

•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with the other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Not relevant. 

This proposal introduces amendments to a previous text. 

•  Collection and use of expertise 

There was no need for external expertise. 

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•  Impact assessment 

Not relevant. This proposal introduces amendments to an existing bilateral trade agreement. 
There are no other options to be considered. 

Not relevant. For the reasons given above there are no other options to be considered. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

The Council is asked to adopt a Union position on a draft Decision of the European Union - 
Mexico Joint Committee introducing amendments to the rules of origin contained in Annex 
III to Decision No 2/2000 of the EU-Mexico Joint Council, concerning the definition of the 
concept of 'originating products' and methods of administrative cooperation. 

•  Legal basis 

Article 207(4) first subparagraph of the Treaty on the Functioning of the European Union in 
conjunction of Article 218(9) thereof. 

•  Subsidiary principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  The  subsidiarity  principle 
therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

Not relevant. 

•  Choice of instruments 

Proposed instruments: other. 

Other means would not be adequate for the following reason(s). 

Decision of the EU - Mexico Joint Committee. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2010/0007 (NLE) 

Proposal for a 

COUNCIL DECISION 

of […] 

on a Union position within the EU - Mexico Joint Committee relating to Annex III to 
Decision No 2/2000 of the EU-Mexico Joint Council concerning the definition of the 
concept of 'originating products' and methods of administrative cooperation 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(4) first subparagraph, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

to  Decision  No  2/2000  of 

Joint  Declaration  V1 
the  EU  -  Mexico  Joint 
Council2 established  by  the  Economic  Partnership,  Political  Coordination  and 
Cooperation Agreement between the European Community and its Member States, of 
the one part, and the United Mexican States, of the other part, signed in Brussels on 
8 December 19973  (hereinafter  "Decision  2/2000")  provides  that  the  EU  –  Mexico 
Joint  Committee  established  by  that  agreement  is  to  review  the  necessity  to  extend 
beyond 30 June 2003 the application of the rules of origin set out in Notes 2 and 3 of 
Appendix II(a) to Annex III to Decision 2/2000. 

On 22 March 2004 and on 14 June 2007 the Joint Committee adopted Decisions No 
1/20044  and  1/20075  extending  the  application  of  the  rules  of  origin  established  in 
those Notes until 30 June 2006 and 30 June 2009, respectively. 

In  accordance  with  the  analysis  of  the  relevant  economic  conditions  undertaken 
according to Joint declaration V, it is considered appropriate to extend once again, on 
a temporary basis, the application of the rules of origin established in Notes 2 and 3 of 
Appendix  II(a)  to  Annex  III  to  Decision  2/2000,  thereby  ensuring  the  continuity  of 
application of the mutual advantages provided under that Decision. 

1 
2 
3 
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5 

OJ L 245, 29.9.2000, p.1167. 
OJ L 157, 30.6.2000, p.10 and OJ L 245, 29.9.2000, p. 1 (Annexes). 
OJ L 276, 28.10.2000, p. 45. 
OJ L 113, 20.4.2004, p.60. 
OJ L 279, 23.10.2007, p.15. 

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(4) 

An extension of the application of the rules of origin established in Notes 2 and 3 of 
Appendix  II(a)  to  Annex  III  to  Decision  2/2000  granted  by  Decision  1/2007  of  the 
Joint  Committee  expired  on  30  June  2009,  therefore  in  order  not  to  introduce 
disruption  in  existing  economic  conditions  it  is  considered  appropriate  to  apply  the 
proposed decision for a new extension retrospectively, from 1 July 2009. 

HAS ADOPTED THIS DECISION: 

Article 1 

The position relating to Annex III to Decision 2/2000 to be adopted by the Union within the 
EU-Mexico Joint  Committee  is  that  set  out  in  the  attached  draft  decision  of  the  Joint 
Committee. 

Article 2 

The decision of the Joint Committee shall be published in the Official Journal of the 
European Union. 

Done at Brussels,  

For the Council 
The President 

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ANNEX  

Proposal for a 

DECISION OF THE EU - MEXICO JOINT COMMITTEE 

No..../2009  

of 

relating to Annex III to Decision No 2/2000 of the EU- Mexico Joint Council of 23 March 
2000  concerning  the  definition  of  the  concept  of  originating  products  and  methods  of 
administrative cooperation 

THE JOINT COMMITTEE, 

Having  regard  to  Decision  No  2/2000  of  the  EU-  Mexico  Joint  Council of  23  March  2000 
(hereinafter  "Decision No 2/2000"),  and  in  particular  Notes  2  and  3  of  Appendix  II(a)  to 
Annex  III  concerning  the  definition  of  the  concept  of  originating  products  and  methods  of 
administrative cooperation and Joint Declaration V thereto, 

Whereas: 

(1) 

(2) 

(3) 

Annex  III  to  Decision  No  2/2000  sets  out  the  rules  of  origin  for  the  products 
originating in the territory of the Parties to the Agreement. 

According  to  Joint  Declaration  V,  the  Joint  Committee  shall  review  the  necessity  to 
extend beyond 30 June 2003 the application of the rules of origin established in Notes 
2  and  3  of  Appendix  II(a)  to  Annex  III  to  Decision  No 2/2000,  if  the  economic 
conditions  which  formed  the  basis  for  establishing  the  rule  set  out  in  those  Notes 
continue.  On  22  March  2004  and  on  14  June  2007  the  EU  Mexico  Joint  Committee 
adopted  Decisions  No  1/2004  and  1/2007  extending  the  application  of  the  rules  of 
origin  established  in  Notes  2  and  3  of  Appendix  II(a)  to  Annex  III  to  Decision  No 
2/2000 until 30 June 2006 and 30 June 2009, respectively.  

In  accordance  with  the  analysis  of  the  relevant  economic  conditions  undertaken 
according  to  Joint  Declaration  V,  it  is  considered  appropriate,  in  order  to  ensure  the 
continuity of application of the mutual advantages provided under Decision no 2/2000, 
to  extend  on  a  temporary  basis,  the  application  of  the  rules  of  origin  established  in 
Notes 2 and 3 of Appendix II(a) to Annex III to Decision No 2/2000. 

HAS DECIDED AS FOLLOWS: 

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Article 1 

The  rules  of  origin  set  out  in  Notes  2  and  3  of  Appendix  II(a)  to  Annex  III  to  Decision 
No 2/2000,  shall  be  applied  until  30  June  2014  instead  of  the  rules  of  origin  set  out  in 
Appendix II to Annex III to Decision No 2/2000. 

This  Decision  shall  enter  into  force  on  the  date  the  Parties  exchange  written  notifications 
certifying the completion of their respective legal procedures.  

Article 2 

Article 1 shall apply from 1 July 2009. 

Done at Brussels, 

For the Joint Committee 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

Decision  of  the  European  Union  –  Mexico  Joint  Committee  relating  Annex  III  to 
Decision n° 2/2000 of the EU-Mexico Joint Council of 23 March 2000, concerning 
the definition of the concept of "originating products" and methods of administrative 
cooperation. 

2. 

BUDGET LINES: 

Chapter and Article: 

Amount budgeted for the year concerned: 

3. 

FINANCIAL IMPACT  

(cid:133) 

(cid:133) 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 
revenue – the effect is as follows: 

(€ million to one decimal place)  

Budget line 

Revenue6 

12 month period, 
starting dd/mm/yyyy

[Year n] 

Article … 

Impact on own resources 

Article … 

Impact on own resources 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

6 

Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs 

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Article … 

Article … 

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