Proposal for a COUNCIL DECISION establishing the position to be taken on behalf of the European Union within the General Council of the WTO on the United States' request for a WTO waiver to extend the AGOA program (AGOA)
Date: 2015-09-22
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: United States, World Trade Organisation, economic development, originating product, sub-Saharan Africa, tariff exemption

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   EUROPEAN COMMISSION  Brussels, 22.9.2015  COM(2015) 464 final 2015/0215 (NLE)   Proposal for a COUNCIL DECISION establishing the position to be taken on behalf of the European Union within the General Council of the WTO on the United States' request for a WTO waiver to extend the AGOA program (AGOA)  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The objective of this proposal is to establish the position to be taken by the European Union 
within  the  General  Council  of  the  World  Trade  Organization  (WTO)  on  the  United  States' 
request for a renewal of its WTO waiver and thus allow the European Union to support this 
waiver request.  
The  granting  of  the  US  request  for  a  renewal  of  the  WTO  waiver  would  allow  the  US  to 
continue  providing  duty-free  treatment  to  eligible  products  originating  in  beneficiary  sub-
Saharan  African  countries  designated  pursuant  to  the  African  Growth  and  Opportunity  Act 
(AGOA) through 30 September 2025.  

2. 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides that 
when  a  decision  having  legal  effect  needs  to  be  taken  in  a  body  set  up  by  an  international 
agreement, the Council, on a proposal from the Commission or the High Representative of the 
Union for Foreign Affairs and Security Policy, shall adopt a decision establishing the position 
to be adopted on the European Union’s behalf. The granting of a waiver to allow the United 
States providing preferential tariff treatment to the eligible products originating in beneficiary 
sub-Saharian  African  countries  designated  pursuant  to  AGOA,  falls  under  this  provision  as 
the  decision  is  taken  in  a  body  set  up  by  an  international  agreement  (the  WTO  General 
Council  or  Ministerial  Conference)  affecting  the  rights  and  obligations  of  the  European 
Union.  

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS  

EVALUATIONS, 

EX-POST 

OF 

STAKEHOLDER 

BUDGETARY IMPLICATIONS 

3. 

N.a. 

4. 

N.a. 

5. 

OTHER ELEMENTS 

The  Commission  will  be  authorised  to  take  a  position  on  behalf  of  the  European  Union  to 
support  the  United  States’  request  for  a  WTO  waiver  to  the  extent  necessary  to  permit  the 
United  States  to  provide  duty-free  treatment  to  eligible  products  originating  in  beneficiary 
sub-Saharian countries until 30 September 2025.  
AGOA's  objective  is  to  alleviate  poverty  and  promote  stability  and  sustainable  economic 
development in sub-Saharan Africa by fostering increased trade and investment between the 
US  and  the  beneficiary  countries.  AGOA  is  also  intended  to  encourage  regional  economic 
integration and help beneficiary countries participate more fully in the global economy. 

According  to  the  United  States,  the  duty-free  treatment  provided  since  2000  under  AGOA 
complements the efforts by other WTO Members to promote growth and development in the 
region.  

The waiver request would be the second extension of the preferential tariff-treatment. On 27 
May  2009,  the  United  States  was  granted  a  waiver  of  its  obligations  under  paragraph  1  of 
Article I and paragraphs 1 and 2 of Article XIII, covering the period until 30 September 2015. 

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For the European Union, the waiver request does not pose economic concerns since the duty-
free treatment does not have a direct impact on the EU trade with the beneficiary countries.  

In  light  of  these  considerations, the  European Union  should  join the consensus  in favour  of 
the waiver request in the WTO General Council.  

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2015/0215 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the position to be taken on behalf of the European Union within the General 
Council of the WTO on the United States' request for a WTO waiver to extend the 
AGOA program (AGOA) 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the European Commission,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Paragraphs 3 and 4 of Article IX of the Marrakesh Agreement establishing the World 
Trade  Organization  ('WTO  Agreement')  set  out  the  procedures  for  the  granting  of 
waivers concerning the Multilateral Trade Agreements in Annex 1A or 1B or 1C to the 
WTO Agreement and their annexes.  

The United States was granted a waiver of obligations under paragraph 1 of Article I 
and paragraphs 1and 2 of Article XIII of the General Agreement on Tariffs and Trade 
1994  (‘GATT  1994’)  on  27  May  2009  covering  the  period  through  30  September 
2015. 

Pursuant  to  paragraph  3  of  Article  IX  of  the  WTO  Agreement,  the  United  States 
submitted a request to waive until 30 September 2025 its obligations under paragraph 
1 of Article I and paragraphs 1 and 2 of Article XIII of the GATT 1994 to the extent 
necessary  to  permit  the  United  States  to  continue  providing  duty-free  treatment  to 
eligible products originating in beneficiary sub-Saharian African countries designated 
pursuant to the African Growth and Opportunity Act (AGOA).  

The  granting  of  the  United  States  request  for  a  WTO  waiver  would  not  affect 
negatively  either  the  economy  of  the  European  Union  or  the  trade  relations  with  the 
beneficiaries of the waiver. Moreover, the European Union generally supports actions 
to  alleviate  poverty  and  promote  stability  and  sustainable  economic  development  in 
the beneficiaries' countries.  

It  is  appropriate,  therefore,  to  establish  the  position  to  be  taken  on  behalf  of  the 
European Union within the WTO General Council to support the waiver request by the 
United States, 

HAS ADOPTED THIS DECISION:  

The position to be taken on behalf of the European Union within the General Council of the 
World Trade Organization shall be to support the United States' request to waive obligations 
under  paragraph  1  of  Article  I  and  paragraphs  1  and  2  of  Article  XIII  of  the  General 

Article 1 

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Agreement on Tariffs and Trade 1994 until 30 September 2025 in accordance with the terms 
of the United States' waiver request.  

This position shall be expressed by the Commission.  

This Decision shall enter into force on the day of its adoption.  

Done at Brussels, 

Article 2 

For the Council 
The President 

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