Proposal for a COUNCIL DECISION on the conclusion of an Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part
Date: 2011-03-03
Institutions: European Commission
Subjects: Palestine Liberation Organisation, administrative cooperation, agricultural product, association agreement (EU), fish product, trade agreement (EU)

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EUROPEAN COMMISSION 

Brussels, 3.3.2011 
COM(2011) 89 final 

2011/0042 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an Exchange of Letters between the 
European Union, of the one part, and the Palestinian Authority of the West Bank and 
the Gaza Strip, of the other part, providing further liberalisation of agricultural 
products, processed agricultural products and fish and fishery products and amending 
the Euro-Mediterranean Interim Association Agreement on trade and cooperation 
between the European Community, of the one part, and the Palestine Liberation 
Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and 
the Gaza Strip, of the other part 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The relationship between the European Union (EU) and the Palestinian Authority of the West 
Bank  and  the  Gaza  Strip  (hereinafter  referred  to  as  "Palestinian  Authority")  builds  on  the 
Euro-Mediterranean  Interim  Association  Agreement  that  was  signed  in  February  1997  and 
whose trade provisions came into force on 1 July 1997. Its main objective is to promote trade 
and investment and harmonious economic relations between the Parties and so to foster their 
sustainable economic development. 

The  Interim  Association  Agreement  provides  for  duty-free  access  to  EU  markets  for 
Palestinian  industrial  goods,  and  a  phase-out  of  tariffs  on  EU  exports  to  the  occupied 
Palestinian  territory  (oPt)  over  five  years.  Article  12  of  the  Agreement  establishes  that  the 
Community and the Palestinian Authority shall progressively establish a greater liberalisation 
of their trade in agricultural and fishery products of interest to both Parties. It also indicates in 
Article 14(2) that the Community and the Palestinian Authority shall examine the possibility 
of granting each other further concessions. Furthermore, Article 7 specifies trading conditions 
for processed agricultural products. No concessions are provided for fish and fishery products. 

On  14  November  2005,  the  Council  authorised  the  Commission  to  conduct  negotiations  in 
order to achieve greater liberalisation of trade in agricultural, processed agricultural products 
and  fish  and  fishery  products,  including  with  the  Palestinian  Authority.  These  negotiations 
were  conducted  by  DG  AGRI,  TRADE  and  ENTR  in  close  cooperation  with  different 
Commission  services,  in  particular  DG  RELEX,  MARE,  TAXUD,  SANCO,  BUDG  and 
OLAF.  

The results achieved are in line with the spirit of the Barcelona Process; in accordance with 
the  Euro-Mediterranean  Roadmap  for  agriculture  (Rabat  Roadmap)  adopted  by  the  Euro-
Mediterranean  Ministers  of  Foreign  Affairs  on  28  November  2005  for  the  acceleration  of 
liberalisation  of  trade  in  agricultural  products,  processed  agricultural  products  and  fish  and 
fishery  products;  with  the  principles  of  the  European  Neighbourhood  Policy  and  the 
conclusions  of  the  Euro-Mediterranean  Conference  of  Ministers  of  Trade  on  8-9  December 
2009  aiming,  inter  alia,  at  facilitating  the  trade  of  Palestinian  products  with  other  Euro-
Mediterranean partners on a bilateral and regional basis by 2010. 

The European Commission and the Palestinian Authority officially opened the negotiations at 
high political level on 10 of June 2010 in Brussels, which were concluded on 17 December 
2010 in Brussels and the Agreed Minutes on the deal reached were initialled on the same day. 
In order to implement the results of the negotiations concluded with the Palestinian Authority, 
the Commission proposes to the Council to adopt the attached Exchange of Letters.  

The intention of both sides is that this Agreement enters into force early in 2011. 

In consequence, the Commission proposes to the Council to adopt the annexed Decision. 

2. 

BUDGETARY IMPLICATION 

It is estimated that the financial impact is negligeable. 

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On the basis of the above mentioned, the Commission proposes the Council to designate the 
person(s) empowered to conclude the Agreement on behalf of the European Union. 

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2011/0042 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of an Agreement in the form of an Exchange of Letters between the 
European Union, of the one part, and the Palestinian Authority of the West Bank and 
the Gaza Strip, of the other part, providing further liberalisation of agricultural 
products, processed agricultural products and fish and fishery products and amending 
the Euro-Mediterranean Interim Association Agreement on trade and cooperation 
between the European Community, of the one part, and the Palestine Liberation 
Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and 
the Gaza Strip, of the other part 

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(6)(a) thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament1, 

Whereas: 

(1) 

(2) 

The  relationship  between  the  European  Union  (EU)  and  the  Palestinian  Authority  of 
the West Bank and the Gaza Strip (hereinafter referred to as "Palestinian Authority") 
builds on the Euro-Mediterranean Interim Association Agreement2 that was signed in 
February 1997 and whose trade provisions entered into force on 1 July 1997. Its main 
objective  is  to  promote  trade  and  investment  and  harmonious  economic  relations 
between the Parties and so to foster their sustainable economic development. 

The  Interim  Association  Agreement  provides  for  duty-free  access  to  EU  markets  for 
Palestinian industrial goods, and a phasing-out of duties on EU exports to the occupied 
Palestinian  territory  over  five  years.  The  possibility  of  granting  the  Palestinian 
Authority  additional  trade  preferences  is  envisaged  in  the  Interim  Association 
Agreement.  Article  12  provides  that  the  Community  and  the  Palestinian  Authority 
shall  progressively  establish  a  greater  liberalisation  of  their  trade  in  agricultural  and 
fishery products of interest to both Parties. Article 14(2) indicates that the Community 
and the Palestinian Authority shall examine, in the Joint Committee, the possibility of 
granting each other further concessions. 

(3) 

The  European  Neighbourhood  Policy  Action  Plan  (ENP  Action  Plan)  for  the 
Palestinian  Authority,  which  was  approved  in  May  2005  and  further  extended,  also 

1 
2 

OJ C […], […], p. […]. 
OJ L 187, 16.07.1997 p. 3 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

contains  provisions  to  proceed  with  the  gradual  liberalisation  of  trade  in  agriculture 
and fishery products. 

The  Euro-Mediterranean  Roadmap  for  agriculture  (Rabat  Roadmap)  adopted  by  the 
Euro-Mediterranean Ministers of Foreign Affairs on 28 November 2005 provides that 
a  high  degree  of  trade  liberalisation  for  agricultural  products,  processed  agricultural 
products and fish and fishery products is desirable; the objective is full liberalisation 
of such trade by 2010, possibly excluding a very limited number of sensitive products. 

At  the  last  Trade  Euro-Mediterranean  Ministerial  meeting  in  December  2009, 
Ministers of trade or the Euro-Mediterranean region committed themselves to facilitate 
the  trade  of  Palestinian  products,  as  stated  in  the  document  The  Euromed  Trade 
Roadmap beyond 2010. In addition, a comprehensive package of measures to facilitate 
trade of Palestinian products with other Euro-Mediterranean partners on a bilateral and 
regional basis has been agreed by Trade Ministers in 2010. 

The occupied Palestinian territory governed by the Palestinian Authority is a state in 
the  making.  It  is  therefore  not  listed  under  any  United  Nations  classification  and 
therefore cannot benefit from EU's Generalised System of Preferences3. 

The  Palestinian  Authority  is  the  smallest  trading  partner  for  the  EU  in  the  Euro-
Mediterranean  region  and  almost  worldwide,  with  total  trade  amounting  to  € 56.6 
million in 2009 where the vast majority of it is accounted for by EU exports (€ 50.5 
million).  EU  imports  from  the  Palestinian  Authority  amount  to  just  € 6.1  million  in 
2009 and consist mainly of agricultural products and processed agricultural products, 
(approximately 70.1 % of total EU imports). In 2009, the EU exported € 1.7 million of 
agricultural  goods,  € 3.3  million  of  processed  agricultural  products  and  € 0.1  million 
of  fish  and  fishery  products.  Further  market  opening  is  expected  to  support  the 
development of the economy of the West Bank and the Gaza Strip through increased 
export  performance while  not creating negative effects for the European Union. It is 
therefore appropriate to grant additional trade preferences to the Palestinian Authority 
of  the  West  Bank  and  the  Gaza  Strip  by  improving  access  to  the  European  Union 
market for agricultural products. 

In accordance with the ENP Action Plan, the level of ambition of the EU-Palestinian 
Authority  relationship  will  depend  on  the  degree  of  Palestinian  Authority's 
commitment  to  common  values  as  well  as  its  capacity  to  implement  jointly  agreed 
priorities.  The  EU  is  planning  to  complement  the  granting  of  additional  trade 
preferences with a package of trade related technical assistance which will further help 
the Palestinian Authority to prepare for a future Palestinian State. 

In addition, entitlement to benefit from the additional trade preferences granted by the 
EU is conditional upon the Palestinian Authority's compliance with the relevant rules 
of  origin  and  the  procedures  related  thereto  as  well  as  the  provision  of  effective 
administrative  cooperation  and  assistance  to  the  European  Union.  Any  serious  and 
systematic  violations  of  these  conditions,  or  other  findings  of  fraud  or  irregularity, 
may lead to the adoption of measures by the EU following the relevant procedures in 
Article 23 bis of this Agreement in the form of an Exchange of Letters. 

3 

OJ L 169, 30.6.2005, p. 1. Regulation as amended by Commission Regulation (EC) No 606/2007 (OJ L 
141, 2.6.2007, p. 4) 

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(10)  For the purposes of defining the concept of originating products, certification of origin 
and  administrative  cooperation  procedures,  Protocol  3  to  the  Euro-Mediterranean 
Interim  Association  Agreement,  concerning  the  definition  of  the  concept  of 
‘originating  products’  and  methods  of  administrative  cooperation  as  amended  by 
Decision No 1/2009 of the EC-PLO Joint Committee of 24 June 2009, shall apply. 

(11) 

If  the  imports  of  agricultural  products,  processed  agricultural  products  and  fish  and 
fishery  products  originating  in  the  territory  of  the  Palestinian  Authority  will 
significantly increase and thus will cause serious distortion at the EU internal market, 
the European Union may adopt, if appropriate, safeguard measures in accordance with 
Article 2 of this Council Decision. 

(12)  The import arrangements adopted by this Decision should be renewed on the basis of 
the conditions established by the Council and in the light of the experience gained in 
granting them. It is therefore appropriate to limit their duration to ten years. However, 
taking  into  account  the  economic  situation  of  the  West  Bank  and  Gaza  Strip,  the 
Parties  shall  prolong  the  application  of  duty-free  quota-free  treatment  should  they 
consider that the Palestinian economy needs an additional transitional period in order 
to be ready to enter into negotiations leading to further reciprocal concessions. 

(13)  The European Union and the Palestinian Authority shall meet five years from the date 
of entry into force of the Agreement to consider the possibility of granting each other 
further permanent concessions of trade in agricultural products, processed agricultural 
products,  fish  and  fishery  products  with  the  objective  laid  down  in  Article  12  of  the 
Interim  Agreement.  If  this  will  be  considered  as  not  appropriate  due  to  the  limited 
future economic developments of the occupied Palestinian territory, such discussions 
shall take place at later stage. 

(14)  The Agreement should be concluded. 

HAS ADOPTED THIS DECISION:  

Article 1 

The  Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  European  Union,  of  the 
one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, 
providing  further  liberalisation  of  agricultural  products,  processed  agricultural  products  and 
fish  and  fishery  products  and  amending  the  Euro-Mediterranean  Interim  Association 
Agreement on trade and cooperation between the European Community, of the one part, and 
the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the 
West Bank and the Gaza Strip, of the other part, is hereby approved on behalf of the European 
Union. 

The text of the Agreement in the form of an Exchange of Letters is attached to this Decision. 

Article 2 

Where  the  European  Union  needs  to  take  a  safeguard  measure  concerning  agricultural 
products  and  fish  and  fishery  products,  as  provided  for  in  the  Article  23  of  the  Interim 
Association  Agreement,  that  measure  shall  be  adopted  in  accordance  with  the  procedures 

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provided  for  in  Article  159(2)  of  Council  Regulation  (EC)  1234/2007  of  22  October  2007 
establishing  a  common  organisation  of  agricultural  markets  and  on  specific  provisions  for 
certain  agricultural  products, or by Article 30 of Regulation  (EC) No  104/2000 for fish and 
fishery  products.  For  processed  agricultural  products,  such  safeguard  measures  shall  be 
adopted  in  accordance  with  the  procedures  provided  for,  as  appropriate,  in Article  7(2)  of 
Council  Regulation (EC) 614/2009  of  7  July  2009 on  the  common  system  of  trade  for 
ovalbumin and lactalbumin4, or in Article 11(4) of Council Regulation (EC) No 1216/2009 of 
30 November 2009 laying down the trade arrangements, applicable to certain goods resulting 
from the processing of agricultural products5. 

Article 3 

The President of the Council shall designate the person empowered to proceed, on behalf of 
the  European  Union  with  the  deposit  of  the  instrument  of  approval  provided  in  the 
Agreement,  in  order  to  express  the  consent  of  the  European  Union  to  be  bound  by  the 
Agreement. 

Article 4 

This  Decision  shall  enter  into  force  on  the  day  of  its  adoption.  It  shall  be  published  in  the 
Official Journal of the European Union. 

The date of entry into force of the Agreement shall be published in the Official Journal of the 
European Union. 

Done at Brussels,  

For the Council 
The President 

4 
5 

OJ L 181, 14.07.2009, p. 10 
OJ L 328, 15.12.2009, p. 15 

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ANNEX 

AGREEMENT 

IN THE FORM OF AN EXCHANGE OF LETTERS 

between the European Union, of the one part, and the Palestinian Authority of the West 
Bank and the Gaza Strip, of the other part, providing further liberalisation of 
agricultural products, processed agricultural products and fish and fishery products 
and amending the Euro-Mediterranean Interim Association Agreement on trade and 
cooperation between the European Community, of the one part, and the Palestine 
Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West 
Bank and the Gaza Strip, of the other  

A. Letter from the European Union 

Sir/Madam, 

I  have  the  honour  of  referring  to  the  negotiations  which  took  place  in  accordance  with  the 
spirit of the Euro-Mediterranean Roadmap for agriculture (Rabat Roadmap), adopted by the 
Euro-Mediterranean Ministers of Foreign Affairs on 28 November 2005, for the acceleration 
of liberalisation of trade in agricultural products, processed agricultural products and fish and 
fishery  products,  and  under  Articles  7,  12  and  14  (2)  of  the  Euro-Mediterranean  Interim 
Agreement establishing an association between the European Community and their Member 
States, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the 
Palestinian  Authority  of  the  West  Bank  and  the  Gaza  Strip  (hereinafter  "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, inter alia, of their trade in agricultural products of interest to 
both Parties.  

A:  The  Parties  have  agreed  on  the  following  temporary  amendments  to  the  Interim 
Association Agreement:  

1. 

Protocol 1  shall be replaced by that appearing in Annex I to this Agreement  in  the 
form of an Exchange of Letters, subject to the provisions of point A. 

B:  The  Parties  have  also  agreed  on  the  following  permanent  amendments  to  the  Interim 
Association Agreement: 

1. 

Article 4 shall be replaced by the following: 

"The provisions of this Chapter shall apply to products originating in the European 
Union and in the West Bank and the Gaza Strip other than those listed in chapters 1 
to  24  of  the  Combined  Nomenclature  (CN)  and  of  the  customs  tariff  of  the 
Palestinian  Authority,  and  those  listed  in  Annex 1(1)(ii)  of  the  Agreement  on 
Agriculture  of  the  GATT.  However,  this  Chapter  shall  continue  to  apply  to 
chemically  pure  lactose  of  CN  code  1702 11 00  and  glucose  and  glucose  syrup, 
containing  in  the  dry  state  99%  or  more  by  weight  of  glucose  of  CN  codes  ex 
1702 30 50 and ex 1702 30 90." 

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2. 

The title of Chapter 2 shall be replaced by the following: 

"AGRICULTURAL  PRODUCTS,  PROCESSED  AGRICULTURAL  PRODUCTS 
AND FISH AND FISHERY PRODUCTS" 

3. 

Article 11 shall be replaced by the following: 

"The provisions of this Chapter shall apply to products originating in the European 
Union  and  in  the  West  Bank  and  the  Gaza  Strip  listed  in  chapters  1  to  24  of  the 
Combined Nomenclature (CN) and of the customs tariff of the Palestinian Authority, 
and  those  listed  in  Annex 1(1)(ii)  of  the  Agreement  on  Agriculture  of  the  GATT, 
with exception of chemically pure lactose of CN code 1702 11 00 and of glucose and 
glucose syrup, containing in the dry state, 99% or more by weight of glucose of CN 
codes  ex  1702 30 50  and  ex  1702 30 90,  for  which  duty  free  market  access  was 
already granted within Chapter 1." 

4. 

Article 12 shall be replaced by the following: 

"The  European  Union  and  the  Palestinian  Authority  shall  progressively  establish 
greater liberalisation of their trade in agriculture, processed agricultural products and 
fish and fishery products of interest to both Parties." 

5. 

Article 13 shall be replaced by the following: 

"1.  Agricultural  products,  processed  agricultural  products  and  fish  and  fishery 
products  originating  in  the  West  Bank  and  the  Gaza  Strip  listed  in  Protocol  1,  on 
importation into the European Union shall be subject to the arrangements set out in 
that Protocol. 

2.  Agricultural  products,  processed  agricultural  products  and  fish  and  fishery 
products originating in the European Union listed in Protocol 2, on importation into 
the West Bank and the Gaza Strip shall be subject to the arrangements set out in that 
Protocol. " 

6. 

Article 23bis shall be added: 

"Temporary Withdrawal of Preferences 

1. 

The Parties agree that administrative co-operation and assistance are essential 
for  the  implementation  and  the  control  of  the  preferential  treatment  granted 
under this Agreement and underline their commitment to combat irregularities 
and fraud in customs and related matters. 

2.  Where a Party has made a finding, on the basis of objective information, of a 
failure to provide administrative co-operation/assistance and/or of irregularities 
or fraud under this Agreement, the Party concerned may temporarily suspend 
the  relevant  preferential  treatment  of  the  product(s)  concerned  in  accordance 
with this Article. 

3. 

For the purpose of this Article a failure to provide administrative co-operation/ 
assistance shall mean, inter alia: 

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a) 

b) 

c) 

a repeated failure to respect the obligations to verify the originating status 
of the product(s) concerned; 

a repeated refusal or undue delay in carrying out and/or communicating 
the results of subsequent verification of the proof of origin; 

a  repeated  refusal  or  undue  delay  in  obtaining  authorisation  to  conduct 
enquiry visits to determine the authenticity of documents or accuracy of 
information  relevant  to  the  granting  of  the  preferential  treatment  in 
question. 

4. 

For the purpose of this Article a finding of irregularities or fraud may be made, 
inter  alia,  where  there  is  a  rapid  increase,  without  satisfactory  explanation,  in 
imports of goods exceeding the usual level of production and export capacity 
of  the  other  Party  that  is  linked  to  objective  information  concerning 
irregularities or fraud. 

5. 

The  application  of  a  temporary  suspension  shall  be  subject  to  the  following 
conditions: 

a) 

The  Party  which  has  made  a  finding,  on  the  basis  of  objective 
information, of a failure to provide administrative co-operation/assistance 
and/or of irregularities or fraud shall without undue delay notify the Joint 
Committee  of  its  finding  together  with  the  objective  information  and 
enter  into  consultations  within  the  Joint  Committee,  on  the  basis  of  all 
relevant  information  and  objective  findings,  with  a  view  to  reaching  a 
solution acceptable to both Parties.  

b)  Where 

into  consultations  within 

the  Parties  have  entered 

the 
aforementioned  Committee  and  have  failed  to  agree  on  an  acceptable 
solution within 3 months following the notification, the Party concerned 
may  temporarily  suspend  the  relevant  preferential  treatment  of  the 
product(s)  concerned.  A  temporary  suspension  shall  be  notified  to  the 
Committee without undue delay. 

c) 

Temporary  suspensions  under  this  article  shall  be  limited  to  that 
necessary to protect the financial interests of the Party concerned. They 
shall not exceed a period of six months, which may be renewed if at the 
date  of  expiry  nothing  has  changed  with  respect  to  the  conditions  that 
gave  rise  to  the  initial  suspension.  They  shall  be  subject  to  periodic 
consultations  within  the  Joint  Committee,  in  particular  with  a  view  to 
their termination as soon as the conditions for their application no longer 
apply. 

Each  Party  shall  publish  according  to  its  internal  procedures,  in  the  case  of  the 
European Union in the Official Journal of the European Union, notices to importers 
concerning  any:  notification  referred  to  in  paragraph  5  a);  decision  referred  to  in 
paragraph 5b); and extension or termination referred to in paragraph 5 c)." 

7. 

Protocol 2 and its Annexes shall be replaced by those appearing in Annex 2 to this 
Agreement in the form of an Exchange of Letters. 

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8. 

C. 

1. 

A Common Declaration on sanitary  and phytosanitary or  technical barriers to trade 
issues,  appearing  in  Annex  III  to  this  Agreement  in  the  form  of  an  Exchange  of 
Letters, shall be added to the Interim Association Agreement. 

The Parties have agreed on the following additional provisions: 

a) 

b) 

c) 

d) 

The temporary amendments provided for under point A shall apply for a period 
of 10 years from the entry into force of this Agreement. However, depending 
on  the  future  economic  development  of  the  West  Bank  and  Gaza  Strip,  a 
possible  extension  for  an  additional  period  of  those  amendments  could  be 
considered by the Joint Committee. Such a decision shall be taken by the Joint 
Committee at the latest one year before the expiration of the 10 years period as 
provided by this Agreement in the form of Exchange of Letters. 

The European Union and the Palestinian Authority shall meet five years from 
the  date  of  entry  into  force  of  this  Agreement,  to  consider  the  possibility  of 
granting  each  other  further  permanent  concessions  of  trade  in  agricultural 
products,  processed  agricultural  products,  fish  and  fishery  products  with  the 
objective laid down in Article 12 of the Interim Agreement. 

The  starting  point  for  future  reciprocal  negotiations  will  be  the  consolidated 
concessions of the Euro-Mediterranean Interim Association, which are listed in 
Annex IV and Protocol 2 of this Agreement in the form of Exchange of Letters. 

It is understood that the trade conditions to be granted by the European Union 
as  a  result  of  these  future  negotiations  may  be  less  favourable  than  those 
granted under the present Agreement 

2. 

Article  7(1)  of  the  Interim  Association  Agreement  shall  not  apply  pending  the 
application of the temporary amendments provided for under point A.  

This Agreement in the form of an Exchange of Letters shall enter into force on the first day of 
the third month following the date of the deposit of the last instrument of approval. 

I have the honour to confirm that the European Union is in agreement with the content of this 
letter. 

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

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

Done at Brussels, 

For the European Union,  
On behalf of the Council of the EU 

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ANNEX I TO THE AGREEMENT 

PROTOCOL 1 

CONCERNING THE PROVISIONAL ARRANGEMENTS APPLICABLE TO  
IMPORTS INTO THE EUROPEAN UNION OF  
AGRICULTURAL PRODUCTS, PROCESSED AGRICULTURAL PRODUCTS  
AND FISH AND FISHERY PRODUCTS  
ORIGINATING IN THE WEST BANK AND THE GAZA STRIP 

1. 

2. 

Customs  duties  and  charges  having  equivalent  effect  (including  their  agricultural 
component), which are applicable on the import into the European Union of products 
originating in the West Bank and the Gaza Strip and listed in chapters 1 to 24 of the 
Combined Nomenclature (CN) and of the customs tariff of the Palestinian Authority, 
and  those  listed  in  Annex 1(1)(ii)  of  the  Agreement  on  Agriculture  of  the  GATT, 
with exception of chemically pure lactose of CN code 1702 11 00 and of glucose and 
glucose syrup, containing in the dry state, 99% or more by weight of glucose of CN 
codes ex 1702 30 50 and ex 1702 30 90 covered by Chapter 1, shall be temporarily 
eliminated in accordance with the provisions of point B.5(a) of the Agreement in the 
form of Exchange of Letters.  

Notwithstanding  the  conditions  under  point 1  of  this  Protocol,  for  the  products  to 
which an entry price applies in accordance with Article 140a of Council Regulation 
(EC)  No 1234/20076,  and  for  which  the  Common  Customs  Tariff  provides  for  the 
application  of  ad valorem  customs  duties  and  a  specific  customs  duty,  the 
elimination applies only to the ad valorem part of the duty. 

6 

OJ L 299, 16.11.2007, p. 1. 

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ANNEX II TO THE AGREEMENT 

PROTOCOL 2 

ON THE ARRANGEMENTS APPLYING TO IMPORTS  
INTO THE WEST BANK AND THE GAZA STRIP OF AGRICULTURAL PRODUCTS, 
PROCESSED AGRICULTURAL PRODUCTS AND FISH AND FISHERY PRODUCTS 
ORIGINATING IN THE EUROPEAN UNION 

1. 

2. 

3. 

4. 

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

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 period elapsed before the date of entry into force of this Protocol. 

EN 

13 

   EN 

ANNEX 1 TO PROTOCOL 2 

CN Code 

Description 

0102 90 71  Live  bovine  animals,  of  a  weight  exceeding 
300kg, for slaughter, other than heifers and cows

0202 30 90  Meat of bovine animals, boneless excluding fore-
quarters,  ‘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 

EN 

14 

   EN 

 
 
 
 
ANNEX 2 TO PROTOCOL 2 

PRODUCTS REFERRED TO IN  
ARTICLE 7 (2) OF THE EURO-MEDITERRANEAN INTERIM ASSOCIATION 
AGREEMENT 

CN code 

1902 

Description 

Pasta and couscous: 
A  — of durum wheat 
B  — other 

1905 10 
1905 20 90 

Crisp bread 
Gingerbread and the like, not especially for diabetics: 

A  — containing over 15% by weight of flour from cereals other than 

wheat in relation to the total flour content 

B  — other 

ex 1905 32 A 

Waffles and wafers 

Al  — not filled, whether or not coated 
Ala  — containing over 15% by weight of flour from cereals other than 

wheat in relation to the total flour content 

Alb  — other 
A2  — other 
A2a  — containing not less than 1,5% milk fats or not less than 2,5% of milk 

proteins 
A2b  — other 

1905 40 10 

Rusk, containing added sugar, honey, other sweetening matter, eggs, 
fat, cheese, fruit, cocoa or similar: 

A  — containing over 15% by weight of flour from cereals other than 

wheat in relation to the total flour content 

B  — other 

1905  
ex 31) B + ex 90) 

Other bakers' wares, containing added sugar, honey, other sweetening 
matter, eggs, fat, cheese, fruit, cocoa or similar: 
Bl  — containing added eggs, not less than 2,5 % by weight 
B2  — containing added dried fruits or nuts: 
B2a  — containing not less than 1,5% milk fats and not less than 2,5% milk 

proteins; see Annex V 

B2b  — other 
ВЗ  — containing less than 10% by weight of added sugar and not 

containing added eggs, dried fruits or nuts 

EN 

15 

   EN 

 
ANNEX III TO THE AGREEMENT 

COMMON DECLARATION 
COOPERATION ON SANITARY AND PHYTOSANITARY OR 
TECHNICAL BARRIERS TO TRADE ISSUES 

The Parties shall solve any problems, in particular sanitary, phytosanitary or technical barriers 
to trade, hindering the implementation of this Agreement, by means of existing administrative 
arrangements.  The  results  shall  then  be  reported  to  the  relevant  Sub-committees  and  to  the 
Joint  Committee.  The  Parties  commit  to  examine  and  solve  such  cases  with  the  shortest 
possible  delay  in  a  friendly  manner,  in  line  with  their  respective  applicable  laws  and  with 
WTO, OIE, IPPC and Codex Alimentarius standards. 

EN 

16 

   EN 

ANNEX IV TO THE AGREEMENT 

A: CONSOLIDATED LIST OF CONCESSIONS APPLIED TO IMPORTS INTO THE 
EUROPEAN UNION OF AGRICULTURAL PRODUCTS AND FISHERY PRODUCTS 
ORIGINATING IN THE WEST BANK AND THE GAZA STRIP BEFORE THE ENTRY 
INTO FORCE OF THIS AGREEMENT IN THE FORM OF AN EXCHANGE OF 
LETTERS 

1. 

The  products  listed  in  the  Annex,  originating  in  the  West  Bank  and  the  Gaza  Strip 
shall  be  admitted  for  importation  into  the  European  Union,  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  provides  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. However, 
for  the  product  corresponding  to  the  subheading  1509  10,  the  duty  reduction 
applies to the specific 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’. 

2. 

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 European Union, having regard to an annual review of trade flows which it shall 
carry out, may make the product in question subject to a tariff quota of the Union, 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’. 

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 period elapsed before the date of entry into force of this Protocol. 

For  some  products  listed  in  the  Annex,  the  volume  of  the  tariff  quota  is  increased 
twice,  on  the  basis  of  the  volume  indicated  in  column  ‘e’.  The  first  increase  takes 
place on the date when each tariff quota is opened for the second time. 

3. 

4. 

EN 

17 

   EN 

Tariff 

quota  

Reduction of 

Reference 

the MFN 

quantity  

(t, unless 

customs duty 

(t, unless 

Specific provisions 

CN Code (1) 

Description (2) 

0409 00 00 

Natural honey 

0603 11 00 
0603 12 00 
0603 13 00 
0603 14 00 
0603 19 10 
0603 19 90 
0702 00 00 

0703 10 11 
0703 10 19 

Cut flowers and flower buds, fresh, of a kind suitable for bouquets or for ornamental 
purposes 

Tomatoes, fresh or chilled, from 1 December to 31 March 

Onions, fresh or chilled, from 15 February to 15 May 

0709 30 00 

Aubergines (eggplants), fresh or chilled, 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 

0709 90 70 

Other 

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 

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

Mushrooms, wood ears (Auri-cularia spp.),  
jelly fungi (Tremella spp.) and truffles, dried 

ex 0805 10 

Oranges, fresh 

ex 0805 20 

Mandarins (including tangerines and satsumas); clementines, wilkings  
and similar citrus hybrids, fresh 

0805 40 00 

Grapefruit 

ex 0805 50 10 

Lemons (Citrus limon, Citrus limonum), fresh 

0806 10 10 

Fresh table grapes, from 1 February to 14 July 

0807 19 00 

Melons (excluding watermelons), fresh, from 1 November to 31 May 

0810 10 00 

Fresh strawberries, from 1 November to 31 March 

0812 90 20 

Oranges, provisionally preserved, but unsuitable in that state for immediate consumption 

0904 20 30 

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

1509 10 

Virgin olive oil 

2001 90 20 

2005 99 10 

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

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

Reduction of 

the MFN 

customs duty 
(%) (3) 

a 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

otherwise 

indicated) 

b 

500 

2 000 

beyond 

current 

or possible 

tariff quota 
(%) (3) 
c 

0 

0 

60 

60 

60 

40 

80 

60 

60 

80 

80 

100 

500 

0 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

60 

60 

80 

40 

0 

50 

0 

80 

80 

0 

80 

80 

1 000 

2 000 

2 000 

otherwise 

indicated) 

d 

e 

point 4 — yearly increase 
of 250 t 

point 4 — yearly increase 
of 250 t 

2 000 

3 000 

1 000 

300 

25 000 

500 

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 948/2009 (OJ L 287, 31.10.2009, 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. However, for the product corresponding to the subheading 1509 10, the duty reduction 
applies to the specific duty. 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
B: CONSOLIDATED LIST OF CONCESSIONS APPLYING TO IMPORTS INTO THE 
EUROPEAN UNION OF PROCESSED AGRICULTURAL PRODUCTS ORIGINATING 
IN THE WEST BANK AND THE GAZA STRIP REFERRED TO IN ARTICLE 7 (1) OF 
THE EURO-MEDITERRANEAN INTERIM ASSOCIATION AGREEMENT BEFORE 
THE ENTRY INTO FORCE OF THIS AGREEMENT IN THE FORM OF AN EXCHANGE 
OF LETTERS 

CN code 
0403 

0403 10 51 to  
0403 10 99  
0403 90 71 to  
0403 90 99 

0710 40 00 

0711 90 30 

ex 1517 

1517 10 10 

1517 90 10 

ex 1704 

1806 
ex 1901 

ex 1902 

1903 

1904 

Description 
Buttermilk, curdled milk and cream, yogurt, kephir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing 
added fruit, nuts or cocoa: 
Yoghurt, flavoured or containing added fruit, nuts or cocoa  

Buttermilk, curdled milk and cream, kephir and other fermented or 
acidified milk and cream, flavoured or containing added fruit, nuts or 
cocoa 
Sweetcorn (uncooked or cooked by steaming or boiling in water), 
frozen 
Sweetcorn provisionally preserved (for example, by sulphur dioxide 
gas, in brine, in sulphur water or in other preservative solutions), but 
unsuitable in that state for immediate consumption 
Margarine; edible mixtures or preparations of animal or vegetable fats 
or oils or of fractions of different fats or oils of this Chapter, other than 
edible fats or oils or their fractions of No 1516: 
Margarine, excluding liquid margarine, containing more than 10% but 
not more than 15% by weight of milk fats 
Other, containing more than 10% but not more than 15% by weight of 
milk fats 
Sugar confectionery (including white chocolate), not containing cocoa; 
excluding liquorice extract containing more than 10% by weight of 
sucrose but not containing other added substances, falling within CN 
code 1704 90 10 
Chocolate and other food preparations containing cocoa 
Malt extract; food preparations of flour, groats, meal, starch or malt 
extract, not containing cocoa or containing less than 40% by weight of 
cocoa calculated on a totally defatted basis, not elsewhere specified or 
included; food preparations of goods of headings 0401 to 0404, not 
containing cocoa or containing less than 5% by weight of cocoa 
calculated on a totally defatted basis, not elsewhere specified or 
included, excluding preparations falling within CN code 1901 90 91 
Pasta, excluding stuffed pasta falling within CN codes 1902 20 10 and 
1902 20 30; couscous, whether or not prepared 
Tapioca and substitutes thereof prepared from starch, in the form of 
flakes, grains, pearls, siftings or similar forms 
Prepared foods obtained by the swelling or roasting of cereals or cereal 
products (for example cornflakes); cereals (other than maize (corn)) in 
grain form or in the form of flakes or other worked grains (except flour, 
groats and meal), pre-cooked or otherwise prepared, not elsewhere 
specified or included 

EN 

19 

   EN 

 
 
 
 
 
 
 
 
 
1905 

2001 90 30 

2001 90 40 

2004 10 91 

2004 90 10 

2005 20 10 

2005 80 00 

1904 20 10 
2008 99 85 

2008 99 91 

2101 12 98 
2101 20 98 
2101 30 19 
2101 30 99 

2102 10 31 
2102 10 39 
ex 2103 90 90 

2105 00 
ex 2106 

2202 90 91  
2202 90 95  
2202 90 99 
2905 43 00 
2905 44 
ex 3505 10 

3505 20 
3809 10 

Bread, pastry, cakes, biscuits and other bakers' wares, whether or not 
containing cocoa; communion wafers, empty cachets of a kind suitable 
for pharmaceutical use, sealing wafers, rice paper and similar products 
Sweetcorn (Zea mays var. saccharata), prepared or preserved by 
vinegar or acetic acid 
Yams, sweet potatoes and similar edible parts of plants containing 5 % 
or more by weight of starch, prepared or preserved by vinegar or acetic 
acid 
Potatoes in the form of flour, meal or flakes, prepared or preserved 
otherwise than by vinegar or acetic acid, frozen 
Sweetcorn (Zea mays var. saccharata), prepared or preserved otherwise 
than by vinegar or acetic acid, frozen 
Potatoes in the form of flour, meal or flakes, prepared or preserved 
otherwise than by vinegar or acetic acid, not frozen 
Sweetcorn (Zea mays var. saccharata), prepared or preserved otherwise 
than by vinegar or acetic acid, not frozen 
Preparation of the Müsli type based on unroasted cereal flakes 
Maize (corn), other than sweetcorn (Zea mays var. saccharata) 
otherwise prepared or preserved, not containing added spirit or added 
sugar 
Yams, sweet potatoes and similar edible parts of plants, containing 5 % 
or more by weight of starch, otherwise prepared or preserved, not 
containing added spirit or added sugar 
Preparations with a basis of coffee 
Preparations with a basis of tea or mate 
Roasted coffee substitutes excluding roasted chicory 
Extracts, essences and concentrates of roasted coffee substitutes 
excluding those of roasted chicory 
Bakers' yeasts 

Sauces and preparations therefor: 
— Mayonnaise 
Ice cream and other edible ice, whether or not containing cocoa 
Food preparations not elsewhere specified or included other than those 
falling within CN codes 2106 10 20 and 2106 90 92 and other than 
flavoured or coloured sugar syrups of CN codes 2106 90 30 to 
2106 90 59 
Non-alcoholic beverages, not including fruit or vegetable juices of 
heading 2009, containing products of headings 0401 to 0404 or fat 
obtained from products of headings 0401 to 0404 
Mannitol 
D-Glucitol (sorbitol) 
Dextrins and other modified starches, excluding esterified and 
etherified starches of CN code 3505 10 50 
Glues based on starches or on dextrins or other modified starches 
Finishing agents, dye carriers to accelerate the dyeing or fixing of 
dyestuffs and other products and preparations (for example, dressings 
and mordants), of a kind used in the textile, paper, leather or like 
industries, not elsewhere specified or included, with a basis of 
amylaceous substances 

EN 

20 

   EN 

 
 
3824 60 

Sorbitol other than that of subheading 2905 44 

EN 

21 

   EN 

B. Letter from the Palestinian Authority 

Sir/Madam, 

I have the honour to acknowledge receipt of your letter of […] which reads as follows: 

"I have the honour of referring to the negotiations which  took place in accordance with the 
spirit of the Euro-Mediterranean Roadmap for agriculture (Rabat Roadmap), adopted by the 
Euro-Mediterranean Ministers of Foreign Affairs on 28 November 2005, for the acceleration 
of liberalisation of trade in agricultural products, processed agricultural products and fish and 
fishery  products,  and  under  Articles  7,  12  and  14  (2)  of  the  Euro-Mediterranean  Interim 
Agreement establishing an association between the European Community and their Member 
States, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the 
Palestinian  Authority  of  the  West  Bank  and  the  Gaza  Strip  (hereinafter  "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, inter alia, of their trade in agricultural products of interest to 
both Parties.  

A:  The  Parties  have  agreed  on  the  following  temporary  amendments  to  the  Interim 
Association Agreement:  

1. 

Protocol 1 shall be replaced by that appearing in Annex I to this Agreement in the 
form of an Exchange of Letters, subject to the provisions of point A. 

B:  The  Parties  have  also  agreed  on  the  following  permanent  amendments  to  the  Interim 
Association Agreement: 

1. 

Article 4 shall be replaced by the following: 

"The provisions of this Chapter shall apply to products originating in the European 
Union and in the West Bank and the Gaza Strip other than those listed in chapters 1 
to  24  of  the  Combined  Nomenclature  (CN)  and  of  the  customs  tariff  of  the 
Palestinian  Authority,  and  those  listed  in  Annex 1(1)(ii)  of  the  Agreement  on 
Agriculture  of  the  GATT.  However,  this  Chapter  shall  continue  to  apply  to 
chemically  pure  lactose  of  CN  code  1702 11 00  and  glucose  and  glucose  syrup, 
containing  in  the  dry  state  99%  or  more  by  weight  of  glucose  of  CN  codes  ex 
1702 30 50 and ex 1702 30 90." 

2. 

The title of Chapter 2 shall be replaced by the following: 

"AGRICULTURAL  PRODUCTS,  PROCESSED  AGRICULTURAL  PRODUCTS 
AND FISH AND FISHERY PRODUCTS" 

3. 

Article 11 shall be replaced by the following: 

"The provisions of this Chapter shall apply to products originating in the European 
Union  and  in  the  West  Bank  and  the  Gaza  Strip  listed  in  chapters  1  to  24  of  the 
Combined Nomenclature (CN) and of the customs tariff of the Palestinian Authority, 
and  those  listed  in  Annex 1(1)(ii)  of  the  Agreement  on  Agriculture  of  the  GATT, 
with exception of chemically pure lactose of CN code 1702 11 00 and of glucose and 
glucose syrup, containing in the dry state, 99% or more by weight of glucose of CN 

EN 

22 

   EN 

codes  ex  1702 30 50  and  ex  1702 30 90,  for  which  duty  free  market  access  was 
already granted within Chapter 1." 

4. 

Article 12 shall be replaced by the following: 

"The  European  Union  and  the  Palestinian  Authority  shall  progressively  establish 
greater liberalisation of their trade in agriculture, processed agricultural products and 
fish and fishery products of interest to both Parties." 

5. 

Article 13 shall be replaced by the following: 

"1.  Agricultural  products,  processed  agricultural  products  and  fish  and  fishery 
products  originating  in  the  West  Bank  and  the  Gaza  Strip  listed  in  Protocol  1,  on 
importation into the European Union shall be subject to the arrangements set out in 
that Protocol. 

2.  Agricultural  products,  processed  agricultural  products  and  fish  and  fishery 
products originating in the European Union listed in Protocol 2, on importation into 
the West Bank and the Gaza Strip shall be subject to the arrangements set out in that 
Protocol. " 

6. 

Article 23bis shall be added: 

"Temporary Withdrawal of Preferences 

1. 

The Parties agree that administrative co-operation and assistance are essential 
for  the  implementation  and  the  control  of  the  preferential  treatment  granted 
under this Agreement and underline their commitment to combat irregularities 
and fraud in customs and related matters. 

2.  Where a Party has made a finding, on the basis of objective information, of a 
failure to provide administrative co-operation/assistance and/or of irregularities 
or fraud under this Agreement, the Party  concerned  may temporarily  suspend 
the  relevant  preferential  treatment  of  the  product(s)  concerned  in  accordance 
with this Article. 

3. 

For the purpose of this Article a failure to provide administrative co-operation/ 
assistance shall mean, inter alia: 

a) 

b) 

c) 

a repeated failure to respect the obligations to verify the originating status 
of the product(s) concerned; 

a repeated refusal or undue delay in carrying out and/or communicating 
the results of subsequent verification of the proof of origin; 

a  repeated  refusal  or  undue  delay  in  obtaining  authorisation  to  conduct 
enquiry visits to determine the authenticity of documents or accuracy of 
information  relevant  to  the  granting  of  the  preferential  treatment  in 
question. 

4. 

For the purpose of this Article a finding of irregularities or fraud may be made, 
inter  alia, where there is  a rapid  increase, without satisfactory  explanation, in 

EN 

23 

   EN 

imports of goods exceeding the usual level of production and export capacity 
of  the  other  Party  that  is  linked  to  objective  information  concerning 
irregularities or fraud. 

5. 

The  application  of  a  temporary  suspension  shall  be  subject  to  the  following 
conditions: 

a) 

The  Party  which  has  made  a  finding,  on  the  basis  of  objective 
information, of a failure to provide administrative co-operation/assistance 
and/or of irregularities or fraud shall without undue delay notify the Joint 
Committee  of  its  finding  together  with  the  objective  information  and 
enter  into  consultations  within  the  Joint  Committee,  on  the  basis  of  all 
relevant  information  and  objective  findings,  with  a  view  to  reaching  a 
solution acceptable to both Parties.  

b)  Where 

into  consultations  within 

the  Parties  have  entered 

the 
aforementioned  Committee  and  have  failed  to  agree  on  an  acceptable 
solution within 3 months following the notification, the Party concerned 
may  temporarily  suspend  the  relevant  preferential  treatment  of  the 
product(s)  concerned.  A  temporary  suspension  shall  be  notified  to  the 
Committee without undue delay. 

c) 

Temporary  suspensions  under  this  article  shall  be  limited  to  that 
necessary to protect the financial interests of the Party concerned. They 
shall not exceed a period of six months, which may be renewed if at the 
date  of  expiry  nothing  has  changed  with  respect  to  the  conditions  that 
gave  rise  to  the  initial  suspension.  They  shall  be  subject  to  periodic 
consultations  within  the  Joint  Committee,  in  particular  with  a  view  to 
their termination as soon as the conditions for their application no longer 
apply. 

Each  Party  shall  publish  according  to  its  internal  procedures,  in  the  case  of  the 
European Union in the Official Journal of the European Union, notices to importers 
concerning  any:  notification  referred  to  in  paragraph  5  a);  decision  referred  to  in 
paragraph 5b); and extension or termination referred to in paragraph 5 c)." 

Protocol 2 and its Annexes shall be replaced by those appearing in Annex 2 to this 
Agreement in the form of an Exchange of Letters. 

A Common Declaration on sanitary and phytosanitary or technical barriers to trade 
issues,  appearing  in  Annex  III  to  this  Agreement  in  the  form  of  an  Exchange  of 
Letters, shall be added to the Interim Association Agreement. 

The Parties have agreed on the following additional provisions: 

a) 

The temporary amendments provided for under point A shall apply for a period 
of 10 years from the entry into force of this Agreement. However, depending 
on  the  future  economic  development  of  the  West  Bank  and  Gaza  Strip,  a 
possible  extension  for  an  additional  period  of  those  amendments  could  be 
considered by the Joint Committee. Such a decision shall be taken by the Joint 
Committee at the latest one year before the expiration of the 10 years period as 
provided by this Agreement in the form of Exchange of Letters. 

7. 

8. 

C. 

1. 

EN 

24 

   EN 

b) 

c) 

d) 

The European Union and the Palestinian Authority shall meet five years from 
the  date  of  entry  into  force  of  this  Agreement,  to  consider  the  possibility  of 
granting  each  other  further  permanent  concessions  of  trade  in  agricultural 
products,  processed  agricultural  products,  fish  and  fishery  products  with  the 
objective laid down in Article 12 of the Interim Agreement. 

The  starting  point  for  future  reciprocal  negotiations  will  be  the  consolidated 
concessions of the Euro-Mediterranean Interim Association, which are listed in 
Annex IV and Protocol 2 of this Agreement in the form of Exchange of Letters. 

It is understood that the trade conditions to be granted by the European Union 
as  a  result  of  these  future  negotiations  may  be  less  favourable  than  those 
granted under the present Agreement 

2. 

Article  7(1)  of  the  Interim  Association  Agreement  shall  not  apply  pending  the 
application of the temporary amendments provided for under point A.  

This Agreement in the form of an Exchange of Letters shall enter into force on the first day of 
the third month following the date of the deposit of the last instrument of approval." 

I have the honour to confirm that the Palestinian Authority is in agreement with the content of 
your letter. 

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

Done at Ramallah / Brussels, 

For the Palestinian Authority 

EN 

25 

   EN 

 
1. 

2. 

3. 

4. 

5. 

5.0 

5.1 

FINANCIAL STATEMENT 

BUDGET HEADING: 
Chapter 12 – Custom duties and other duties  

Fichefin/10/653978REV
2 
DDG/dz 
6.0.2005.1-2010 
DATE: 07/12/2010 

APPROPRIATIONS: 
PB2011: 16 653.7 M€ 

TITLE: 
Proposal for a Council Decision on the conclusion of an Agreement in the form of an Exchange of Letters 
between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza 
Strip,  of  the  other  part,  providing  further  liberalisation  of  agricultural  products,  processed  agricultural 
products  and  fish  and  fishery  products  and  amending  the  Euro-Mediterranean  Interim  Association 
Agreement on trade and cooperation between the European Community, of the one part, and the Palestine 
Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza 
Strip, of the other part. 

LEGAL BASIS: 
Treaty and in particular art. 207(4) first subparagraph, in conjunction with Article 218(6)(a). 

AIMS: 
To  conclude  an  Agreement  in  view  to  provide  the  further  liberalisation  on  bilateral  trade  of  agricultural 
products, processed agricultural products and fish and fishery products.  

FINANCIAL IMPLICATIONS 

EXPENDITURE 
- CHARGED TO THE EU BUDGET 
(REFUNDS/INTERVENTIONS) 
- NATIONAL AUTHORITIES 
- OTHER 

REVENUE 
- OWN RESOURCES OF THE EU 
(LEVIES/CUSTOMS DUTIES)  
- NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: - 
6.0 

12 MONTH 
PERIOD 

(EUR million) 

CURRENT 
FINANCIAL 
YEAR 2010  
(EUR million) 

FOLLOWING 
FINANCIAL YEAR 
2011 
(EUR million) 

- 

-  

- 

-  

- 

-  

2012 

2013 

2014 

- 

- 

- 

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 proposal concerns the conclusion of an Agreement between the European Union and the Palestinian Authority of 
the West Bank and the Gaza Strip, in order to provide further liberalisation of trade in agricultural products, processed 
agricultural  products  and  fish  and  fishery  products  and  amending  the  Euro-Mediterranean  Interim  Association 
Agreement. The measure mainly concerns imports of products subject to entry price (fruits and vegetables) i.e.: the 
currently applicable system of determining the corresponding agricultural duties, for which no revenue estimates can 
be  made.  Furthermore,  the volume  of  imports  into  the  EU of  the  agricultural products  concerned  is  extremely  low.
Therefore it can be estimated that the financial impact of the measure is negligible. 

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