CELEX: 52004PC0739
Language: en
Date: 2004-10-26
Title: 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

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)
EN                                                                                            EN
 ---pagebreak---                          EXPLANATORY MEMORANDUM
   1. 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.
   2. 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.
   3. 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.
   4. 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.
   5. 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.
   6. 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.
EN                                          2                                                   EN
 ---pagebreak---                                                               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)     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.
   (2)     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.
   (3)     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.
   (4)     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:
                                                    Article 1
   Regulation (EC) No 2007/2000 is amended as follows:
   1
           OJ C [...], [...], p. [...].
   2
           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).
EN                                                      3                                                  EN
 ---pagebreak---    (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."
                                                 Article 2
   This Regulation shall enter into force on the third day following that of its publication in the
   Official Journal of the European Union.
   This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels,
                                                  For the Council
                                                  The President
EN                                                  4                                               EN
 ---pagebreak---                FINANCIAL STATEMENT
   1.     BUDGET HEADING:                                                             APPROPRIATIONS:
          Chapter 10 – Agricultural duties                                            Budget 2004
                                                                                      EUR 858,975 millions
   2.     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.
   3.     LEGAL BASIS:
          Articles 133 and of the Treaty
   4.     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                            12 MONTH             CURRENT        FOLLOWING
                                                              PERIOD            FINANCIAL        FINANCIAL
                                                                               YEAR 2004        YEAR 2005
                                                           (EUR million)       (EUR million)    (EUR million)
   5.0    EXPENDITURE                                              –                –                 –
          –      CHARGED TO THE EC BUDGET
          (REFUNDS/INTERVENTIONS)
          –      NATIONAL AUTHORITIES
          –      OTHER
   5.1    REVENUE                                                  –                –                 –
          –      OWN RESOURCES OF THE EC
          (LEVIES/CUSTOMS DUTIES)
          –      NATIONAL
                                                              2004          2005          2006         2007
   5.0.1 ESTIMATED EXPENDITURE                                 (1)           (1)           (1)          (1)
   5.1.1 ESTIMATED REVENUE                                      –             –             –            –
   5.2    METHOD OF CALCULATION:
          –
   6.0    CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
          RELEVANT CHAPTER OF THE CURRENT BUDGET?                                                   YES / NO
   6.1    CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
          THE CURRENT BUDGET?                                                                       YES / NO
   6.2    WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                 YES / NO
   6.3    WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?                                 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.
EN                                                        5                                                     EN