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Document 52024PC0499

Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Association Council set up by the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part, as regards the amendment of that Agreement by replacing Protocol 6 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

COM/2024/499 final

Brussels, 31.10.2024

COM(2024) 499 final

2024/0277(NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the Association Council set up by the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part, as regards the amendment of that Agreement by replacing Protocol 6 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation


EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal is to set out the position to be taken on the EU’s behalf in the Association Council of the Euro-Mediterranean Agreement establishing an association between the EU and Algeria on the amendment of Protocol 6 to that Agreement.

2.    Context of the Proposal

2.1.The Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part

The Euro-Mediterranean Agreement establishing an association between the EU and Algeria 1 (the Agreement) aims to set out the conditions for the gradual liberalisation of trade in goods, services and capital. The Agreement entered into force on 1 September 2005.

2.2.The Association Council

The Association Council, set up in line with Article 92 of the Agreement, may decide to amend Protocol 6 (notably Article 39). The Association Council draws up its decisions and recommendations by agreement between the two parties (i.e. the EU and Algeria).

2.3.The envisaged act of the Association Council

At its next meeting or by exchange of letters, the Association Council is to adopt a decision on the amendment of Protocol 6 (the envisaged act).

The purpose of the envisaged act is to amend Protocol 6 by replacing it with a new protocol to include a dynamic reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, so that it always refers to the latest version of the Convention in force.

The envisaged act will be binding on the parties, in line with Article 97, paragraph 2 of the Agreement.

3.Position to be taken on the EU’s behalf

The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention) lays down provisions on the origin of goods traded under relevant agreements concluded between the contracting parties. The EU and Algeria signed the Convention on 15 June 2011 and on 05 October 2012 respectively.

The EU and Algeria deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012 and 27 January 2017 respectively. As a consequence, under its Article 10, the Convention entered into force for the EU and Algeria on 1 May 2012 and on 1 March 2017 respectively.

The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023

Article 6 of the Convention stipulates that each contracting party must take appropriate measures to ensure that the Convention is effectively applied. To that effect, the Association Council established by the Agreement should adopt a decision introducing the rules of the Convention under Protocol 6. This is done by introducing in the amended Protocol a reference to the Convention that will render it applicable.

The position to be taken by the EU in the Association Council should be established by the Council.

The proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect. Therefore, they do not require an impact assessment.

4.Legal basis

4.1.Procedural legal basis

4.1.1.Principles

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for 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 because 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 2 .

4.1.2.Application to the present case

The Association Council is a body set up by an agreement, namely the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part.

The act that the Association Council is called on to adopt has legal effects. It will be binding under international law in accordance with Article 97, paragraph 2 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 decision is Article 218(9) TFEU.

4.2.Substantive legal basis

4.2.1.Principles

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act for which a position is taken on the EU’s behalf.

4.2.2.Application to the present case

The main objective and content of the envisaged act relate to the common commercial policy.

The substantive legal basis of the proposed decision is therefore Article 207(4), first subparagraph, TFEU.

4.3.Conclusion

The legal basis of the proposed decision should be Article 207(4), first subparagraph, in conjunction with Article 218(9) TFEU.

5.Publication of the envisaged act

As the act of the Association Council will amend the Agreement, it would be appropriate to publish it in the Official Journal of the European Union after it has been adopted.

2024/0277 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken on behalf of the European Union in the Association Council set up by the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part, as regards the amendment of that Agreement by replacing Protocol 6 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

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(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)The Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part (the Agreement) was concluded by the Union by Council Decision 2005/690/EC 3 and entered into force on 1 September 2005. Protocol 6 defines the concept of ‘originating products’ and lays down methods of administrative cooperation.

(2)Pursuant to Article 39 of that Protocol, the Association Council established by Article 92 of the Agreement (the Association Council) may decide to amend its provisions.

(3)The Association Council, during its next meeting or by exchange of letters is to adopt a Decision on an amendment of Protocol 6.

(4)It is appropriate to establish the position to be taken on the Union’s behalf in the Association Council as the decision of the Association Council will be binding on the Union.

(5)The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention) was concluded by the Union by Council Decision 2013/93/EU 4  and entered into force in relation to the Union on 1 May 2012. It lays down provisions on the origin of goods traded under relevant agreements concluded between the Contracting Parties, which apply without prejudice to the principles laid down in those agreements.

(6)The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023 5 .

(7)The amendment to the Convention enters into force on 1 January 2025 in relation to all Contracting Parties. To ensure effective and immediate application of the amendment to the Convention between the Parties, a reference to the Convention should be introduced in Protocol 6, so as to always refer to the latest version of the Convention in force. In the absence of such reference, the effective application of the amendment to the Convention would not be ensured which could impact the system of diagonal cumulation.

(8)Article 6 of the Convention provides that each Contracting Party is to take appropriate measures to ensure that the Convention is effectively applied. To that effect, the Association Council should adopt a decision introducing in Protocol 6 to the Agreement a reference to the Convention so as to always refer to the latest version of the Convention in force,

HAS ADOPTED THIS DECISION:

Article 1

The position to be taken on the Union’s behalf in the Association Council shall be based on the draft act of the Association Council attached to this Decision.

Article 2

This Decision is addressed to the Commission.

Done at Brussels,

   For the Council

   The President

(1)    OJ L 265, 10.10.2005.
(2)    Judgment of the Court of Justice of 7 October 2014, Germany v Council, C-399/12, ECLI:EU:C:2014:2258, paragraphs 61 to 64.
(3)    Council Decision of 18 July 2005 on the conclusion of the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part (OJ L 265, 10.10.2005).
(4)    Council Decision 2013/93/EU of 14 April 2011 on the signing, on behalf of the European Union, of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (OJ L 54, 26.2.2013).
(5)    OJ L, 2024/390, 19.2.2024.
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Brussels, 31.10.2024

COM(2024) 499 final

ANNEX

to the

Proposal for a Council Decision

on the position to be taken on behalf of the European Union in the Association Council set up by the Euro-Mediterranean Agreement establishing an Association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part, as regards the amendment of that Agreement by replacing Protocol 6 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation


Draft

DECISION No …

OF THE EU-ALGERIA ASSOCIATION COUNCIL

of…

amending the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part, by replacing Protocol 6 thereto concerning the definition of the concept of 'originating products' and methods of administrative cooperation

The EU-ALGERIA ASSOCIATION COUNCIL,

Having regard to the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part 1 , and in particular Article 39 of its Protocol 6 concerning the definition of the concept of 'originating products' and methods of administrative cooperation,

Whereas:

(1)Article 28 of the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part (the Agreement), refers to Protocol 6 to the Agreement which lays down the rules of origin.

(2)Article 39 of Protocol 6 provides that the Association Council established by Article 92 of the Agreement may decide to amend the provisions of that protocol.

(3)The Regional Convention on pan-Euro-Mediterranean preferential rules of origin 2 (the Convention) aims to transpose the existing bilateral systems of rules of origin into a multilateral framework, without prejudice to the principles laid down in the relevant agreements concluded among the Contracting Parties.

(4)The Union and Algeria signed the Convention on 15 June 2011 and 05 October 2012, respectively.

(5)The Union and Algeria deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012 and 27 January 2017, respectively. Consequently, in application of Article 10 of the Convention, the Convention entered into force in relation to the Union and Algeria on 1 May 2012 and on 1 March 2017, respectively.

(6)The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023 3 .

(7)Protocol 6 should therefore be replaced by a new protocol to include a dynamic reference to the Convention, so as to always refer to the latest version of the Convention in force,

HAS ADOPTED THIS DECISION:

Article 1

Protocol 6 to the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People’s Democratic Republic of Algeria, of the other part, concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation is replaced by the text set out in the Annex to this Decision.

Article 2

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

It shall apply from the first day of the first month following the date of the receipt of the latter written notification through diplomatic channels, by which the Parties inform each other of the completion of their internal requirements.

Done at

   For the Association Council

   The President

Annex

‘Protocol 6

concerning the definition of the concept of 'originating products' and methods of administrative cooperation

Article 1

Rules of origin

1.    For the purpose of implementing this Agreement, Appendix I and the relevant provisions of Appendix II to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin 4 (the Convention), as last amended and published in the Official Journal of the Union, shall apply.

2.    All references to the relevant Agreement in Appendix I and in the relevant provisions of Appendix II to the Convention shall be construed as references to this Agreement.

Article 2

Dispute settlement

1.    Where disputes arise in relation to the verification procedures of Articles 34 and 35 of Appendix I to the Convention that cannot be settled between the customs authorities requesting the verification and the customs authorities responsible for carrying out that verification, they shall be submitted to the Association Council.

2.    In all cases the settlement of disputes between the importer and the customs authorities of the importing country shall take place under the legislation of that country.

Article 3

Amendments to the Protocol

The Association Council may decide to amend the provisions of this Protocol.

Article 4

Withdrawal from the Convention

1.    Should either the Union or Algeria give notice in writing to the depositary of the Convention of their intention to withdraw from the Convention in accordance with Article 9 thereof, the Union and Algeria shall immediately enter into negotiations on rules of origin for the purpose of implementing the Agreement.

2.    Until the entry into force of such newly negotiated rules of origin, the rules of origin contained in Appendix I and, where appropriate, the relevant provisions of Appendix II to the Convention, applicable at the moment of withdrawal, shall continue to apply to the Agreement. However, as of the moment of withdrawal, the rules of origin contained in Appendix I and, where appropriate, the relevant provisions of Appendix II to the Convention shall be construed as allowing bilateral cumulation only between the Union and Algeria.

(1)    OJ L 265, 10.10.2005.
(2)    OJ L 54, 26.02.2013.
(3)    Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023 on the amendment of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (OJ L, 2024/390, 19.2.2024, ELI: http://data.europa.eu/eli/dec/2024/390/oj).
(4)    OJ L 54, 26.2.2013, p. 4.
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