EUROPEAN COMMISSION

Brussels, 24.11.2022

COM(2022) 649 final

2022/0386(NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road, as regards the rules of procedure of the Joint Committee and the continuation of the Agreement

EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal concerns the decision establishing the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road signed in Lyon on 29 June 2022 1 (hereinafter “the Agreement”), as regards

·the adoption of the rules of procedure of the Joint Committee in accordance with Article 6(6) of the Agreement;

·the continuation of the Agreement in accordance with Article 6(2) therein.

2.Context of the proposal

2.1.Summary of the Agreement

The Agreement aims at temporarily facilitating road freight transport between and through the Republic of Moldova (hereinafter “Moldova”) and of the European Union, by granting additional rights of transit and carriage of goods between Moldova and the EU following the illegal aggression of Ukraine by Russia and the significant disruptions it brings for the road transport sector in Moldova. It currently applies until 31 March 2023.

A Joint Committee was established to supervise and monitor the application and implementation of the Agreement. It decides in particular on the adoption of its rules of procedure and on the continuation of the Agreement. As regards the continuation of the Agreement, the Joint Committee shall decide at the latest three months before the expiry of the Agreement, that is to say at the latest on 31 December 2022. According to Article 6(5) of the Agreement, the Joint Committee shall adopt its decisions by consensus.

The Moldovan authorities and the Commission have tentatively agreed that the first meeting of the Joint Committee would take place on 15 December 2022.

2.2.Monitoring of the Agreement

Article 6(1) of the Agreement introduced an obligation for the monitoring of the Agreement through, in particular, a periodic review of its functioning in light of its objectives. In that context, the Moldovan authorities have provided the Commission with data on the implementation of this Agreement. These data cover in particular the third quarter of 2022, i.e. the first three months of application of the Agreement, and show the following:

·The Agreement has successfully supported the Moldovan economy by substantially increasing the exports from Moldova to the EU. Moldovan exports to the EU in the third quarter of 2022 (€282.7 M) have increased in value by 17.5% when compared to the third quarter of 2021. This results from increased exports of cereals (+97.2%), vegetal oils (+1377.8%) and fruits and wine (+22%). The EU represents now 60% of the total exports from Moldova, and this part is still expected to be considerably increased.

·The Agreement has also been very beneficial as regards the EU. EU exports to Moldova in the third quarter of 2022 (€387.5 M) have increased by 41% when compared to the third quarter of 2021. Exports of oil products in particular have been multiplied by about factor 4 in volume. The exports from the EU to Moldova have been higher than the imports to the EU from Moldova.

·The rights conferred to Moldovan hauliers by the Agreement have not resulted in a surge of Moldovan trucks on EU roads. In the third quarter of 2021, 13255 road transport operations by Moldovan hauliers had taken place in the EU against 14983 in the third quarter of 2022, which represents an increase of 13%. In fact, EU hauliers have benefited much more from the implementation of the Agreement (increase of the number of road transport operations by EU hauliers in Moldova by 73%, by comparison of the third quarter of 2021 with the third quarter of 2022) even if the number of road transport operations to Moldova by EU hauliers remains much lower than the number of road transport operations by Moldovan hauliers to the EU (3327 EU operations in the third quarter of 2021, as compared to 5572 in the third quarter of 2022). It can therefore safely be concluded that the Agreement has not worked at the expense of EU hauliers. At the same time, the number of permits granted by Russia to Moldovan hauliers has been more than divided by two (4406 in the third quarter of 2021, against 1943 in the third quarter of 2022). This shows that Moldovan road transport operators managed to find alternative markets in the EU to compensate the loss of economic perspectives in Russia. 

·The Agreement, together with a similar road transport agreement between Moldova and Ukraine, has played an essential role in the context of the Solidarity Lanes. It has allowed for a smooth flow of goods from Ukraine, easing the pressure on the Member States bordering this country. A significant and unprecedented number of essential goods left Ukraine to the EU via Moldova. This was the case of cereals (96602 tonnes in transit through Moldova from Ukraine to the EU in the third quarter of 2022, against 917 tonnes in the third quarter of 2021) and of vegetal oil (22708 tonnes in the third quarter of 2022, against 503 tonnes in the third quarter of 2021). For instance, an important increase of the exports of oil from Ukraine to the EU via Moldova could be observed, with 503 tonnes transported in the third quarter of 2021 against more than 22708 tonnes in the third quarter of 2022. Similarly, in the third quarter of 2021, 917 tonnes of grains from Ukraine transited via Moldova to reach the EU, while in the third quarter of 2022 more than 96000 tonnes took the same route.

·The Agreement has also significantly reduced the burden for the transport industry and the State authorities in relation to the administrative formalities linked to issuing permits.

2.3.The Joint Committee

Article 6 of the Agreement established a Joint Committee to supervise and monitor the application and implementation the Agreement, and periodically review its functioning in light of its objectives. According to that provision, the Joint Committee is composed by representatives of the Parties. Its decisions are taken by consensus and are binding on the Parties.

According to Article 6(2), the Joint Committee shall be convened, at the latest three months before the expiry of the Agreement, in order to assess and decide the need for the continuation of the Agreement, and the duration thereof.

According to Article 6(6) of the Agreement, the Joint Committee is to adopt its rules of procedure.

2.4.The envisaged act of the Joint Committee as regards its rules of procedure

During its first meeting, the Joint Committee is to adopt a decision regarding the adoption of the rules of procedure of the Joint Committee, in accordance with Article 6(5) and 6(6) of the agreement. Their purpose is to underpin the organisation and functioning of the Joint Committee, in order to allow for the proper implementation of the Agreement.

2.5.The envisaged act of the Joint Committee as regards the continuation of the Agreement

During its first meeting, the Joint Committee is to adopt a decision regarding the continuation of the Agreement until 31 December 2025, in accordance with Article 6(2) and 6(5) of the Agreement.

The reasons for that are fourfold. First, it results from the monitoring of the Agreement that it has provided benefits for the trade of both the EU and Moldova. The increase of road transport services has also been beneficial to road transport operators of both parties. There is therefore no reason not to prolong an Agreement which, although designed in the first place to help the Moldovan economy in the context of Russia’s war of aggression against Ukraine, has also provided real benefits to the EU. Second, the Agreement has allowed Moldova to start redirecting its trade from the east towards the EU, and has therefore contributed to the progressive integration of the Moldovan economy into the western economy. Together with a comparable road transport agreement signed with Ukraine, it has also eased the export of Ukrainian goods, contributing to the Solidarity Lanes and keeping afloat two economies that the EU is bound to support in the short to long term. These elements, which also have a clear political meaning in the current geopolitical context, should be encouraged and confirmed by the proposed continuation. Third, the Agreement should also be understood as facilitating the reconstruction of Ukraine in due course, beyond Russia’s war of aggression against this country. Finally, the EU is closely involved in the international Moldova Support Platform – any step that could be interpreted as withdrawing support already granted to Moldova would convey a negative signal and place the EU in an inconsistent and possibly self-contradictory position internally and externally in the context of this Platform.

The continuation of the agreement until the 31 December 2025 is necessary, because the conditions justifying the conclusion of the original agreement continue to prevail, and probably for quite some time. The Russian aggression against Ukraine is intensifying, and most observers do not foresee any end to this aggression in a near future. This also means that maritime transport via the Black Sea Ports, which could be one of Moldova’s transit routes for its exports, remains very limited. The UN Black Sea Grain Initiative has brought a partial solution. However, the extension of this initiative is itself uncertain and its scope remains for the moment limited to grain. The continuing military operations on Moldova’s eastern flank, and the associated destruction of transport infrastructure in the related areas, which had been transit areas for Moldova’s exports in the past, will remain a limiting factor in the foreseeable future, impeding Moldova’s access to its traditional markets.

2.6.Road Transport Agreement between the EU and Ukraine

The Commission will soon submit a proposal for a Council Decision establishing the Union position on the extension of the duration of the Agreement between the European Union and Ukraine on the Carriage of Freight by Road, signed in Lyon on 29 June 2022 2 . For the reasons mentioned above, and in particular the role played by Moldova in the context of the Solidarity Lanes and the existence of the road transport agreement between Ukraine and Moldova, the Commission is of the opinion that the end date of the agreement with Ukraine should be the same as for Moldova, i.e. 31 December 2025.

3.Position to be taken on the Union's behalf

The position to be adopted on behalf of the Union should therefore be to support the adoption of the draft decision of the Joint Committee attached to this proposal.

4.Legal basis

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for Council decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’

The concept of ‘acts having legal effects’ includes acts that have legal effects by virtue of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’.

The Joint Committee is a body set up by an agreement, namely the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road.

The decision, which the Joint Committee is called upon to adopt, constitutes an act having legal effects. First, the envisaged act on the adoption of the rules of procedure of the Joint Committee will be binding under international law in accordance with Article 6(5) and 6(6) of the Agreement; second, the envisaged act on the extension of the duration of the Agreement will also be binding under international law, in accordance with Article 6(2) and (5) of the Agreement.

The envisaged act does not supplement or amend the institutional framework of the Agreement. Therefore, the procedural legal basis for the proposed Council decision is Article 218(9) TFEU.

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the Union's behalf. If the envisaged act pursues two aims or has two components and if one of those aims or components is identifiable as the main one, whereas the other is merely incidental, the decision under Article 218(9) TFEU must be founded on a single substantive legal basis, namely that required by the main or predominant aim or component.

The main objective and content of the envisaged act relate to road transport.

The substantive legal basis of the proposed decision is Article 91 TFEU.

5.Publication of the envisaged act

2022/0386 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road, as regards the rules of procedure of the Joint Committee and the continuation of the Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 91 in conjunction with Article 218(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road 3 (“the Agreement”) was signed by the Union and provisionally applies from 29 June 2022.

(2)Article 6(1) of the Agreement establishes a Joint Committee to supervise and monitor the application and implementation of the Agreement and periodically review its functioning in light of its objectives.

(3)The Joint Committee is to adopt its rules of procedure.

(4)As set out in Article 5(1) of the Agreement, the Agreement is to apply until 31 March 2023. The Joint Committee is however to be convened at the latest three months before the expiry of the Agreement in order to assess and decide the need for the continuation of the Agreement.

(5)In order for both the European Union and the Republic of Moldova to continue benefitting from the Agreement, it should be renewed until 31 December 2025.

(6)In order to ensure the proper implementation of the Agreement the Joint Committee’s rules of procedure should be adopted.

(7)Therefore the Joint Committee, during its meeting on 15 December 2022, is to adopt a decision adopting its rules of procedure and on the need for the continuation of the Agreement, including the duration thereof.

(8)It is therefore appropriate to establish the position to be taken on the Union's behalf in the Joint Committee on the adoption of the rules of procedure and the continuation of the Agreement, as its decisions will be binding on the Union,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken on the Union’s behalf in the Joint Committee established by Article 6 of the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road (“the Agreement”), as regards the adoption of its rules of procedure and the continuation of the Agreement, including the duration thereof, shall be based on the draft decision of the Joint Committee as attached to this Decision.

Minor changes to the draft Decision of the Joint Committee may be agreed to by the representatives of the Union within the Joint Committee without a further Council Decision.

Article 2

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

Article 3

This Decision is addressed to the Commission.

Done at Brussels,

(1)    OJ L 181, 7.7.2022, p. 4.

(2)    OJ L 179, 6.7.2022, p.1.

(3)    OJ L 181, 7.7.2022, p.4.

EUROPEAN COMMISSION

Brussels, 24.11.2022

COM(2022) 649 final

ANNEX

to the proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the Joint Committee established by the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road, as regards the rules of procedure of the Joint Committee and the continuation of the Agreement

Decision No 1/2022 of the Joint Committee
established by the Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road, as regards the rules of procedure of the Joint Committee and the continuation of the Agreement

of …

THE JOINT COMMITTEE,

Having regard to the Agreement between the European Union and the Republic of Moldova on the carriage of freight by road 1 signed on 29 June 2022, and in particular Article 6(2),(5) and(6) thereto,

Whereas:

(1)As set out in Article 5(1) of the Agreement between the European Union and the Republic of Moldova on the carriage of freight by road (hereafter “the Agreement”), the Agreement is to apply until 31 March 2023.  

(2)As set out in Article 6(2) of the Agreement, the Joint Committee is to be convened at the latest three months before the expiry of the Agreement in order to assess and decide the need for the continuation of the Agreement, including its duration.

(3)The monitoring of the Agreement has shown that it has provided benefits in terms of trade for both the European Union and the Republic of Moldova, and that the increase of road transport services has also been beneficial to road transport operators of both parties.

(4)The Agreement has allowed the Republic of Moldova to start redirecting its trade towards the European Union and has therefore contributed to the progressive integration of the Moldovan economy into the western economy. Together with a comparable road transport agreement signed with Ukraine, it has also eased the export of Ukrainian goods, contributing to the Solidarity Lanes.

(5)The prolongation of the Agreement should be understood as also contributing to the reconstruction of Ukraine beyond Russia’s war of aggression against Ukraine.

(6)It seems therefore appropriate to prolong the Agreement until 31 December 2025.

(7)As set out in Article 6(6) of the Agreement, the Joint Committee is to adopt its rules of procedure.

(8)Therefore the rules of procedure as set out in the Annex to this Decision should be adopted,

HAS ADOPTED THIS DECISION:

Article 1

Continuation of the Agreement

The Agreement between the European Union and the Republic of Moldova on the Carriage of Freight by Road is hereby prolonged until 31 December 2025.

Article 2

Rules of procedure

The rules of procedure of the Joint Committee, as set out in the Annex, are hereby adopted.

Article 3

Entry into force

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

Done at …,

ANNEX

Rules of procedure of the Joint Committee in accordance with Article 6(6) of the Agreement between the European Union and the Republic of Moldova on the carriage of freight by road

Article 1 
Heads of delegation

1.The Joint Committee shall be composed of representatives of the Parties. Each party shall appoint the Head and, where necessary, Deputy Head of its delegation. The Head of Delegation may be replaced by the Deputy Head or by a designee for a particular meeting. 

2.The Joint Committee shall be chaired in turn by a representative of the European Union and a representative of the Republic of Moldova. The Head of the relevant delegation, or in its absence, the Deputy Head or the designee appointed to replace them shall act as chair.

Article 2 
Meetings

1.The Joint Committee shall meet as and when necessary. Either Party may request the convening of a meeting. The Joint Committee shall also be convened at the latest three months before the expiry of the Agreement, in order to assess and decide the need for the continuation of this Agreement in accordance with its Article 5(2).

2.The Joint Committee shall hold meetings face-to-face or via other means (e.g. conference calls or video conferences).

3.Meetings shall take place, as much as possible, in an alternated way between a place in a European Union Member State and the Republic of Moldova, unless agreed otherwise by the Parties.

4.The working language shall be English.

5.Once the date and the place of the meetings have been agreed between the Parties, meetings shall be convened by the European Commission for the European Union and by the Ministry in charge of road transport for the Republic of Moldova.

6.Except as otherwise agreed by the Parties, the meetings of the Joint Committee shall not be public. If necessary, a press release may be drafted by mutual agreement at the end of the meeting.

Article 3
Delegations

1.Prior to each meeting, the Heads of Delegation shall inform each other of the intended composition of their delegations for the meeting. 

2.Road transport industry stakeholder representatives may be invited to attend meetings or parts of the meetings as observers, if the Joint Committee so agrees by consensus.

3.The Joint Committee may invite, if so agreed by consensus, other interested parties or experts to attend its meetings or parts thereof in order to provide information on particular subjects.

4. Observers shall not take part in the decision-making process of the Joint Committee. 

Article 4
Secretariat

An official of the European Commission services and an official of the Ministry in charge of road transport of the Republic of Moldova shall act jointly as secretaries of the Joint Committee.

Article 5
Agenda of the meetings

1.The Heads of Delegation shall establish the provisional agenda of each meeting by mutual agreement. The provisional agenda shall be transmitted by the secretaries to the members of the delegations at the latest fifteen days before the date of the meeting.

2.The agenda shall be adopted by the Joint Committee at the beginning of each meeting. Items other than those appearing on the provisional agenda may be included in the agenda if the Joint Committee so agrees.

3.The Heads of Delegation may shorten the time limit specified in paragraph 1 in order to take account of the requirements or urgency of a particular matter.

Article 6 
Minutes

1.Draft Minutes of each Joint Committee meeting shall be drawn up after each meeting. They shall indicate the items discussed, and decisions adopted.

2.Within one month following the meeting, the draft Minutes shall be submitted by the hosting Head of Delegation to the other Head of Delegation, via the Joint Committee secretaries, for approval by written procedure.

3.When approved, the Minutes shall be signed in duplicate by the Heads of Delegation and one original copy shall be filed by each of the Parties. The Heads of Delegation may decide that signing and exchanging electronic copies satisfies this requirement.

4.The Minutes of the Joint Committee meetings shall be public unless otherwise requested by one of the Parties.

The Heads of Delegation may shorten the time limit specified in paragraph 2 and agree on a date as regards the approval specified in paragraph 3 in order to take account of the requirements or urgency of a particular matter.

Article 7 
Written procedure

Where necessary and duly motivated, decisions of the Joint Committee may be adopted by written procedure, in accordance with Article 6(5) of the Agreement. To that end, the Heads of Delegation shall exchange the draft measures on which the opinion of the Joint Committee is requested, which may then be confirmed by exchange of correspondence. The Parties may however request that the Joint Committee be convened to discuss the matter.

Article 8 
Deliberations

1.The Joint Committee shall take decisions on the basis of consensus of the Parties.

2.The decisions of the Joint Committee shall be entitled ‘Decision’ and followed by a serial number, by the date of their adoption and by a description of their subject.

3.The decisions of the Joint Committee shall be signed by the Heads of Delegation and attached to the Minutes.

4.The decisions adopted by the Joint Committee shall be implemented by the Parties in accordance with their own internal procedures.

5.The decisions adopted by the Joint Committee may be published by the Parties in their respective official publications. One original copy of the decisions shall be filed by each of the Parties.

Article 9 
Working Groups

1.The Joint Committee may set up working groups to assist the Joint Committee in carrying out its duties. Terms of reference for a working group shall be approved by the Joint Committee in accordance with Article 6(5) of the Agreement and be included in an Annex to the decision setting up the working group.

2.The working groups shall be composed of representatives of the Parties.

3.The working groups shall work under the authority of the Joint Committee to which they shall report after each of their meetings. They shall not take decisions but may make recommendations to the Joint Committee.

4.The Joint Committee may at any time decide to abolish existing working groups, modify their terms of reference or establish new working groups to assist it in carrying out its duties.

Article 10 
Expenses

1.The Parties shall each defray the expenses related to their participation in the meetings of the Joint Committee and of working groups, both in respect of staff, travelling and subsistence expenditure and of postal and telecommunications costs.

2.Any other expenditure relating to the material organisation of meetings shall be borne by the Party hosting the meeting.

Article 11 
Amendments of the Rules of Procedure

The Joint Committee may, at any time, amend these Rules of Procedure by a decision taken in accordance with Article 6(5) of the Agreement

(1)    OJ L 181, 7.7.2022, p. 4.