COUNCIL OF
THE EUROPEAN UNION
Brussels, 27 June 2014
(OR. en)
11398/14
Interinstitutional File:
2014/0197 (COD)
WTO 199
COWEB 72
AGRI 464
UD 176
TDC 4
CODEC 1541
PROPOSAL
From:
date of receipt:
To:
Secretary-General of the European Commission,
signed by Mr Jordi AYET PUIGARNAU, Director
26 June 2014
Mr Uwe CORSEPIUS, Secretary-General of the Council of the European
Union
No. Cion doc.:
COM(2014) 386 final
Subject:
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL amending Council Regulation (EC) No
1215/2009 introducing exceptional trade measures for countries and
territories participating in or linked to the European Union's Stabilisation
and Association process and suspending its application with regard to
Bosnia and Herzegovina
Delegations will find attached document COM(2014) 386 final.
Encl.: COM(2014) 386 final
11398/14
BK/sy
DG C 1
EN
EUROPEAN
COMMISSION
Brussels, 26.6.2014
COM(2014) 386 final
2014/0197 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Council Regulation (EC) No 1215/2009 introducing exceptional trade
measures for countries and territories participating in or linked to the European
Union's Stabilisation and Association process and suspending its application with regard
to Bosnia and Herzegovina
EN
EN
EXPLANATORY MEMORANDUM
1.
CONTEXT OF THE PROPOSAL
The EU's policy towards the countries of the Western Balkans is defined within the
Stabilisation and Association Process launched in May 1999 by the European Commission. At
its meeting in Lisbon on 23 and 24 March 2000, the European Council concluded that
Stabilisation and Association Agreements with Western Balkan countries should be preceded
by asymmetrical trade liberalisation. Asymmetrical trade liberalisation has been provided for
by means of Council Regulation (EC) No 1215/2009 introducing exceptional trade measures
for countries and territories participating in or linked to the Stabilisation and Association
process. Regulation (EC) No 1215/2009 applies until 31 December 2015.
Since the launch of the Stabilisation and Association Process, Stabilisation and Association
Agreements have been concluded between the Union and all concerned Western Balkan
countries, with the exception of Bosnia and Herzegovina and Kosovo.1 Bosnia and
Herzegovina was recognised as a potential candidate country for EU accession in 2003 and
signed a Stabilisation and Association Agreement in 2008, agreeing to the EU’s conditions for
membership. Since then, an Interim Agreement on trade and trade-related matters with Bosnia
and Herzegovina applies, pending the finalisation of the ratification process of the
Stabilisation and Association Agreement.
Having regard to differences in the scope of the tariff liberalisation under the contractual
regimes which have been developed between the Union and all participants to the
Stabilisation and Association process and the preferences granted under Regulation (EC) No
1215/2009, it is suggested to prolong the duration of Regulation (EC) No 1215/2009 until 31
December 2020, so as to give the beneficiaries of the exceptional trade measures and the
European Union sufficient time to align, where appropriate, preferences granted under
Regulation (EC) No 1215/2009 with those provided for under the Stabilisation and
Association Agreements. Following the enlargement of the European Union on 1 July 2013,
Bosnia and Herzegovina have not yet accepted to adapt trade concessions granted under the
Interim Agreement in order to take into account the preferential traditional trade between
Croatia and Bosnia and Herzegovina under the Central European Free Trade Agreement
(CEFTA). In case Bosnia and Herzegovina and the European Union do not find an agreement
on the adaptation of trade concessions, preferences granted to Bosnia and Herzegovina under
Regulation (EC) No 1215/2009 should be suspended as of 1 January 2016. Once Bosnia and
Herzegovina and the European Union have signed and applied provisionally an agreement on
the adaptation of trade concessions in the Interim Agreement, these preferences will be reestablished.
Article 21(1) of the EU Treaty provides that the Union's action on the international scene shall
be guided by the principles which have inspired its own creation, development and
enlargement, and which it seeks to advance in the wider world, including democracy, the rule
of law, the universality and indivisibility of human rights and fundamental freedoms and
respect for human dignity. The Union must respect and promote those principles also in its
external action, including its common commercial policy. Regulation (EC) No 1215/2009
does not provide any possibility to temporarily suspend the grant of exceptional trade
1
EN
This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and
the ICJ Opinion on the Kosovo declaration of independence.
2
EN
measures in case of serious and systematic violations of the fundamental principles of human
rights, democracy and the rule of law by its beneficiaries. It is appropriate to introduce such
possibility, so as to ensure that swift action can be taken in case serious and systematic
violations of the fundamental principles of human rights, democracy and the rule of law
would occur in one of the countries and territories participating in or linked to the European
Union's Stabilisation and Association process.
Finally, a technical adjustment regarding Montenegro's access to the additional global quota
for wine imports is included.
2.
LEGAL ELEMENTS OF THE PROPOSAL
The legal basis for the proposal is Article 207(2) of the Treaty on the Functioning of the
European Union.
3.
BUDGETARY IMPLICATION
The proposed Regulation does not incur additional costs charged to the EU budget. For the
years 2015 to 2020 there will be no additional loss of tariff revenue in respect of products
originating from the current beneficiaries. Hypothetical revenue that could have been
generated by future exports is not considered as a loss of tariff revenue.
EN
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EN
2014/0197 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Council Regulation (EC) No 1215/2009 introducing exceptional trade
measures for countries and territories participating in or linked to the European
Union's Stabilisation and Association process and suspending its application with regard
to Bosnia and Herzegovina
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 207(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national Parliaments,
Acting in accordance with the ordinary legislative procedure,
Whereas:
EN
(1)
Council Regulation (EC) No 1215/20092 provides for asymmetrical trade liberalisation
between the Union and the Western Balkan countries and territories concerned,
granting them the benefit of exceptional and unlimited duty-free access to the Union
market for almost all their products until 31 December 2015.
(2)
Regulation (EC) No 1215/2009 does not provide any possibility to temporarily
suspend the grant of exceptional trade measures in case of serious and systematic
violations of the fundamental principles of human rights, democracy and the rule of
law by its beneficiaries. It is appropriate to introduce such possibility, so as to ensure
that swift action can be taken in case serious and systematic violations of the
fundamental principles of human rights, democracy and the rule of law would occur in
one of the countries and territories participating in or linked to the European Union's
Stabilisation and Association process.
(3)
Having regard to differences in the scope of the tariff liberalisation under the
contractual regimes which have been developed between the Union and all participants
to the Stabilisation and Association process and the preferences granted under
Regulation (EC) No 1215/2009, it is suggested to extend the period of application of
Regulation (EC) No 1215/2009 until 31 December 2020, so as to give the beneficiaries
of the exceptional trade measures and the European Union sufficient time to align -
2
Council Regulation (EC) No 1215/2009 of 30 November 2009 introducing exceptional trade measures
for countries and territories participating in or linked to the European Union’s Stabilisation and
Association process (OJ L 328, 15.12.2009, p. 1).
4
EN
where appropriate - preferences granted under Regulation (EC) No 1215/2009 with
those provided for under the Stabilisation and Association Agreements.
(4)
Regulation (EC) No 1215/2009 provides for a global quota for imports into the Union
of wine with the Combined Nomenclature (CN) codes 220421 93-220421 98 and
220429 93-220429 98. This quota is accessible to all Western Balkan countries or
territories on exhaustion of their individual wine quota, as stipulated in their bilateral
Stabilisation and Association Agreements, with the exception of Montenegro. The
Protocol on wine agreed with Montenegro includes a wine quota only for the CN
codes ex220410 and ex220421, which they have not been in a position to fill. This
effectively prevents Montenegro from accessing a duty-free wine quota for products
not covered by its Stabilisation and Association Agreement In order to ensure that all
concerned Western Balkan countries and territories are treated on an equal footing, it
is appropriate to provide that Montenegro be also given access to the global wine
quota for products of CN code 220429, without the need to exhaust the individual quota.
(5)
Since the launch of the Stabilisation and Association Process, Stabilisation and
Association Agreements have been concluded with all concerned Western Balkan
countries, with the exception of Bosnia and Herzegovina and Kosovo 3. In June 2013,
the Council authorised the Commission to start negotiations for a Stabilisation and
Association Agreement with Kosovo.
(6)
Bosnia and Herzegovina was recognised as a potential candidate country for accession
to the Union in 2003 and on 16 June 2008 signed a Stabilisation and Association
Agreement ('the Stabilisation and Association Agreement'), agreeing to the conditions
for membership of the Union. Since then, an Interim Agreement on trade and traderelated matters with Bosnia and Herzegovina4 ('the Interim Agreement') applies,
pending the finalisation of the ratification process of the Stabilisation and Association
Agreement.
(7)
However, Bosnia and Herzegovina has not yet accepted to adapt trade concessions
granted under the Interim Agreement in order to take into account the preferential
traditional trade between Croatia and Bosnia and Herzegovina under the Central
European Free Trade Agreement (CEFTA). In case, by the time of the adoption of this
Regulation, an agreement on the adaptation of the trade concessions set out in the
Stabilisation and Association Agreement and in the Interim Agreement has not been
signed and provisionally applied by European Union and Bosnia and Herzegovina, the
preferences granted to Bosnia and Herzegovina should be suspended as from 1
January 2016. Once Bosnia-Herzegovina and the European Union will have signed
and provisionally applied an agreement on the adaptation of trade concessions in the
Interim Agreement, those preferences should be re-established,
3
This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and
the ICJ Opinion on the Kosovo declaration of independence.
Interim Agreement on trade and trade-related matters between the European Community, of the one
part, and Bosnia and Herzegovina, of the other part (OJ L 233, 30.8.2008, p. 6).
4
EN
5
EN
HAVE ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 1215/2009 is amended as follows:
(1)
In Article 2(1), the following point (d) is added:
"(d) the abstention of the countries and territories referred to in Article 1 from
engaging in serious and systematic violations of human rights, including core labour
rights, fundamental principles of democracy and the rule of law."
(2)
In Article 12, the second and the third paragraphs are replaced by the following:
"It shall apply until 31 December 2020."
(3)
In Annex I footnote (5) is replaced by the following text:
"(5) Access for wine originating in Montenegro to the global tariff quota, insofar as it
concerns products of CN code 2204 21, is subject to the prior exhaustion of the individual
tariff quota provided for in the Protocol on wine concluded with Montenegro. This
individual tariff quota is opened under order No 09.1514."
Article 2
The application of Regulation (EC) No 1215/2009 with regard to Bosnia and Herzegovina is
suspended with effect from 1 January 2016.
Article 3
1.
Notwithstanding Article 2, the application of Regulation (EC) No 1215/2009 with
regard to Bosnia and Herzegovina shall not be suspended if, before 1 January 2016,
the European Union and Bosnia and Herzegovina sign and apply provisionally an
agreement on the adaptation of the Stabilisation and Association Agreement and the
Interim Agreement to take into account the accession of Croatia to the European
Union.
2.
In the event that the agreement referred to in paragraph 1 is not signed and applied
provisionally before 1 January 2016, Regulation (EC) No 2115/2009 shall be
applicable again with regard to Bosnia and Herzegovina from the date on which such
agreement is signed and applied provisionally.
3.
The Commission shall publish a notice in the Official Journal of the European Union
as soon as agreement referred to in paragraph 1 has been signed.
Article 4
This Regulation shall enter into force on the seventh day following that of its publication in
the Official Journal of the European Union.
EN
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EN
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament
The President
EN
For the Council
The President
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COM (2014) 386
Information Note
1. Proposal
Proposal for a Regulation of the European Parliament and of the Council amending
Council Regulation (EC) No 1215/2009 introducing exceptional trade measure for
countries and territories participating in or linked to the European Union’s stabilisation
and association process and suspending its application with regard to Bosnia and
Herzegovina.
2. Date of Commission document
26/06/2014
3. Number of Commission document
COM (2014)386
4. Number of Council document:
11398/14
5. Dealt with in Brussels by
Coreper
Council (Agriculture and Fisheries)
6. Department with primary responsibility
Department of Agriculture, Food and Marine
7. Other Departments involved
Department of Foreign Affairs and Trade
8. Background to, short summary and aim of the proposal
The aim of the proposal is to extend the asymmetrical trade liberalisation between the EU and
the Western Balkan countries beyond 31 December 2015 (until 31 December 2020). The
application of Regulation 1215/2009 will be suspended in respect of Bosnia and Herzegovina,
unless the EU and Bosnia and Herzegovina sign and apply provisionally an agreement on the
adaptation of the Stabilisation and Association Agreement and the Interim Agreement to take
into account the accession of Croatia to the EU before 1 January 2016. Bosnia and
Herzegovina has not yet agreed to adapt its trade concessions under the Interim Agreement in
order to take into account the preferential traditional trade between Croatia and Bosnia and
Herzegovina under the Central European Free Trade Agreement.
Also a technical adjustment to regarding Montenegro’s access to the additional global quota
for wine imports is included, as at the moment Montenegro have effectively been prevented
from accessing a duty-free wine quota for products not covered by its Stabilisation and
Association Agreement.
Regulation 1215/2009 does not provide the grant of exceptional trade measures in cases of
serious or systematic violations of fundamental principles of Human rights. This proposal
allows for this possibility.
EN
8
EN
9. Legal basis of the proposal
Article 207(2) of the Treaty on the Functioning of the European Union
10. Voting Method
QMV
11. Role of the EP
Co-decision.
12. Category of proposal
Little significance.
13. Implications for Ireland & Ireland's Initial View
None. Ireland supports the measure.
14. Impact on the Public
N/A
15. Have any consultations with Stakeholders taken place or are there any plans to do so?
N/A
16. Are there any subsidiarity issues for Ireland?
N/A.
17. Anticipated negotiating period
6 to 12 months.
18. Proposed implementation date
The regulation shall enter into force the 7th day following publication in the official journal
and before 31 December 2015
19. Consequences for national legislation
None
20. Method of Transposition into Irish law
N/A
21. Anticipated Transposition date
The regulation shall enter into force on the seventh day following publication in the
Official Journal of the European Union.
22. Consequences for the EU budget in Euros annually
None
23. Contact name, telephone number and e-mail address of official in Department with
primary responsibility
Brid Cannon Principal Officer
EU Trade
Kildare St.
Dublin 2.
Tel: 01 607 2719
EN
9
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Email: [email protected]
Date
EN
10 July 2014
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