EUROPEAN COMMISSION

Brussels, 17.1.2018

COM(2018) 30 final

2018/0010(NLE)

Proposal for a

COUNCIL DECISION

on the position of the European Union in the EU-Algeria Association Committee regarding the modification of the conditions of application of the preferential tariffs for agricultural products and processed agricultural products set out in Article 14 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

EXPLANATORY MEMORANDUM

1.Subject matter of the proposal

This proposal concerns the decision establishing the position to be adopted on behalf of the European Union in the EU-Algeria Association Committee in connection with the planned adoption of a decision modifying the conditions of application of the preferential tariffs for agricultural products and processed agricultural products set out in Article 14 of the EuroMediterranean Agreement.

2.Context of the proposal

2.1.Euro-Mediterranean Agreement

2.2. Association Committee

In accordance with Article 96 of the Association Agreement, the Association Committee consists of representatives of members of the Council of the European Union and of the Commission of the European Communities, on the one hand, and representatives of the Government of Algeria, on the other.

By virtue of Article 97 of the Association Agreement, the Association Committee has the power to take decisions for the management of the Agreement as well as in those areas where the Association Council has delegated its powers to the Committee.

2.3.Act envisaged by the Association Committee

The Association Committee must adopt a decision modifying the tariff conditions established initially for the agricultural products and processed agricultural products in Protocols 2 and 5 to the Association Agreement and which are listed in Annex I to this Decision.

The aim of the act envisaged is to modify a number of the European Union’s preferential quotas for agricultural products and processed agricultural products (thirty-six tariff lines).

The act envisaged will become binding upon the Parties in accordance with Article 97 of the Agreement, which provides that: ‘Decisions shall be adopted by agreement between the Parties and shall be binding on the Parties, which shall take the measures necessary to implement them’.

3.Position to be adopted on behalf of the Union

In view of the low amount of compensation (EUR 1.5 million) and the modified quantities, an impact assessment was not required. However, this decision should be adopted for the purposes of providing legal certainty.

4.Legal basis

4.1.Legal procedural basis

4.1.1.Principles

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) makes provision 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 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’ 3 .

4.1.2.Application to the present case

The Association Committee is a body created by an agreement, in this case the EuroMediterranean 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.

Article 16 of the Association Agreement makes provision for the potential modification of the agreed tariff arrangements linked to a change in the parties’ agricultural policies. However, the party making the modification must accord imports originating in the other party a comparable advantage.

The act that the Association Committee is called upon to adopt is an act with legal effects, since it contains new provisions that apply to bilateral trade in agricultural products and in processed agricultural products from the European Union in Algeria and modifies the initial conditions of application of the preferential tariffs for the agricultural products and processed agricultural products in Protocols 2 and 5 to the Association Agreement. The act envisaged 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 aim and content of the act envisaged in respect of which a position is taken on the Union’s behalf. If the act envisaged 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.

4.2.2.Application to the case at hand

The aim and content of the act envisaged relate to trade in agricultural products, fisheries products and processed agricultural products, in accordance with Chapter 2 of the Association Agreement.

Therefore, the substantive legal basis of the proposed decision is Article 207 TFEU.

4.3.Conclusion

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

5.PUBLICATION OF THE ACT ENVISAGED

Given that the act of the Association Committee will modify the initial conditions of application of the preferential tariffs for the agricultural products and processed agricultural products in Protocols 2 and 5, it should be published in the Official Journal of the European Union once it has been adopted.

2018/0010 (NLE)

Proposal for a

COUNCIL DECISION

on the position of the European Union in the EU-Algeria Association Committee regarding the modification of the conditions of application of the preferential tariffs for agricultural products and processed agricultural products set out in Article 14 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 COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207, 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, was signed on 22 April 2002 and entered into force on 1 September 2005 4 .

(2)In view of the difficulties faced by Algeria in dismantling customs duties for agricultural products and processed agricultural products, the European Union and Algeria reached an agreement on the acceptable modifications to the basic duties, quantities and schedule established initially for dismantling tariffs, in accordance with the conditions laid down in Protocols 2 and 5 to the Agreement.

(3)Article 16 of the Association Agreement makes provision for the potential unilateral modification of the agreed tariff arrangements by one party subject to certain conditions. However, the party making the modification shall accord imports originating in the other party a comparable advantage.

(4)In accordance with Article 16, the Association Committee shall meet to take due account of the interests of that Party. By virtue of Article 97 of the Association Agreement, the Association Committee has the power to take decisions for the management of the Agreement. It is appropriate for the Association Committee to adopt a decision on the modifications envisaged.

(5)The position to be taken on behalf of the Union within the Association Committee should be established, given that the decision is binding on the Union, in accordance with Article 97 of the Association Agreement, and that it will have a decisive influence on the content of Union law, specifically Protocols 2 and 5 to the EuroMediterranean 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.

(6)The European Union’s position in the EU-Algeria Association Committee shall be established accordingly.

HAS ADOPTED THIS DECISION:

Article 1

The decision to be taken by the European Union in the EU-Algeria Association Committee established by the Euro-Mediterranean Association Agreement between the European Community and the People’s Democratic Republic of Algeria, regarding the implementation of Articles 15 and 16 of that Agreement, shall be based on the draft act of the Association Committee annexed to this Decision.

Article 2

The decision of the Association Committee modifying the conditions of application for the dismantling of tariffs for agricultural products and processed agricultural products shall be published in the Official Journal of the European Union once it has been adopted.

Article 3

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

Done at Brussels,

(1)    OJ L265 of 10 October 2005, p.2.

(2)    2005/690/EC: Council Decision of 18 July 2005 on the conclusion of the Agreement, OJ L265 of 10 October 2005, p. 1

(3)    Judgment of the Court of Justice of 7 October 2014 in Case C-399/12, Germany v Council (OIV), ECLI:EU:C:2014:2258, paragraphs 61 to 64.

(4)    OJ L265 of 10 October 2005, p.2.

EUROPEAN COMMISSION

Brussels,17.1.2018

COM(2018) 30 final

ANNEX

to the

Proposal for a COUNCIL DECISION

on the position of the European Union in the EU-Algeria Association Committee regarding the modification of the conditions of application of the preferential tariffs for agricultural products and processed agricultural products set out in Article 14 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

ANNEX

Proposal for a

DECISION OF THE EU-ALGERIA ASSOCIATION COMMITTEE

regarding the modification of the conditions of application of the preferential tariffs for agricultural products and processed agricultural products set out in Article 14 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 EU-ALGERIA ASSOCIATION COMMITTEE,

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 ,

Whereas:

(1)    In view of the difficulties faced by Algeria in dismantling the customs duties for agricultural products and processed agricultural products established in accordance with the conditions laid down in Protocols 2 and 5 to the Agreement, a group of experts from the European Commission and Algeria met six times between September 2010 and July 2011.

(2)    As a result of the consultations, an agreement was reached on the acceptable modifications to the basic duties, quantities and schedule initially established for dismantling tariffs, in accordance with the conditions laid down in Protocols 2 and 5 to the Agreement.

(3)    Article 16 of the Association Agreement makes provision for the potential unilateral modification of the agreed tariff arrangements subject to certain conditions. However, the party making the modification shall accord imports originating in the other party a comparable advantage. In accordance with Article 16, the Association Committee shall meet to take due account of the interests of that Party.

(4)    By virtue of Article 97 of the Association Agreement, the EU-Algeria Association Committee (hereinafter ‘the Association Committee’) has the power to take decisions for the management of the Agreement. It is therefore necessary for the Association Committee to issue a decision in respect of the modifications envisaged.

HAS ADOPTED THIS DECISION:

Article 1

The rate and duration conditions agreed during the bilateral consultations and set out in Annex I to this Decision shall modify the tariff conditions established initially for the agricultural products and processed agricultural products in Protocols 2 and 5 to the Association Agreement.

Article 2

This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Done at Brussels, [date]

   For the EU-Algeria Association Committee

   The President

Annex I

1.    Following Algeria’s submission of a formal request to revise the schedule for dismantling the tariffs for agricultural products and processed agricultural products at the fifth session of the Association Council held on 15 June 2010 and following six consultation sessions, on 11 July 2011 the two Parties agreed on new provisions to modify the tariff arrangements set out in Protocols 2 and 5 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 (hereinafter ‘the Agreement’) based on a list of thirty-six tariff subheadings (thirty-four subheadings for agricultural products and two subheadings for processed agricultural products).

2.    In accordance with Article 16 of the Association Agreement, the Party that modifies the conditions set out in the agreed Annexes (Protocols 1 to 5) to the Agreement shall provide the other Party with compensation with equivalent effect.

The Algerian memorandum of June 2010 envisaged the elimination of preferential tariffs for the EU for thirty-four tariff subheadings for agricultural products and of two subheadings for processed agricultural products.

3.    Following six meetings (from September 2010 to July 2011) resulting in an agreement in the form of a memorandum dated 11 July 2011, the parties agreed to eliminate twenty-five preferential tariff subheadings for agricultural products in Protocol 2 to the Association Agreement and two subheadings in Protocol 5 for processed agricultural products for EU exports to Algeria. They also reached agreement on the compensation for the EU with the same effect in terms of lost customs duties for European operators by increasing two preferential tariff subheadings for agricultural products: pure-bred breeding animals of the bovine species and common wheat, other than for sowing.

Details of these changes are set out below.

4.    The preferential tariffs initially established in Protocols 2 and 5 to the Agreement shall apply to the remaining products referred to in Article 14(2) of the Agreement.

5.    The modifications set out in Protocols 2 and 5 were unilaterally applied by Algeria from 1 January 2011 and were then revised following the consultations between the Parties. Algeria has applied the following provisions since 1 October 2012.

The preferential quotas granted to the EU in Protocol 2 to the EU-Algeria Association Agreement in relation to the following agricultural products were repealed by Algeria on 1 October 2012:

The preferential quotas granted to the EU in Protocol 5, Annex 2 to the EU-Algeria Association Agreement in relation to the following processed agricultural products were repealed by Algeria on 1 October 2012:

The preferential quotas granted to the EU in Protocol 2 to the EU-Algeria Association Agreement in relation to the following agricultural products were replaced by Algeria on 1 October 2012 as follows:

The preferential quotas granted to the EU in Protocol 2 to the EU-Algeria Association Agreement in relation to the agricultural products below were re-established in their entirety by Algeria on 1 October 2012:

(1)    OJ L265 of 10 October 2005, p.2.