Proposal for a COUNCIL DECISION on the signing of an agreement on the participation of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the European Economic Area and four related agreements

(presented by the Commission)

EXPLANATORY MEMORANDUM

Background

Article 128 of the Agreement on the European Economic Area (EEA) stipulates that all countries becoming members of the European Union must also apply to become contracting parties to the EEA Agreement.

Following the successful conclusion of the enlargement negotiations at the December 2002 Copenhagen European Council, Cyprus, the Czech republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak republic and Slovenia ("Acceding Countries") applied to join the EEA Agreement.

As the EEA Agreement is a mixed agreement, the Council adopted, on 9 December 2002, a mandate, enabling the Commission to negotiate both for the Community and for the current Member States. The EEA EFTA countries, Iceland, Liechtenstein and Norway negotiated individually, as did the Acceding Countries. Nevertheless, the Commission ensured close co-operation with the Acceding Countries and the current Member States throughout the negotiations.

The EEA enlargement negotiations were officially launched on 9 January 2003 and concluded on 3 July 2003.

The EEA enlargement "package" consists of a main agreement together with four related agreements, each of the five agreements being linked to oneanother.

Main Agreement

The agreement on the participation of the Acceding Countries defines the amendments to the EEA Agreement in the context of EEA enlargement.

The bulk of the amendments originate from the EU Act of Accession. The arrangements for the application of Community acquis by the Acceding Countries upon accession to the EU, such as technical adaptations and transition periods, which have been agreed in the EU enlargement negotiations, are taken over from the Act of Accession in the EEA Agreement. The concerned acts are listed in annexes A and B to the main agreement.

The EEA EFTA countries will also contribute EUR 600 million over a five-year period to alleviating social and economic disparities in the enlarged EEA.

Four Related Agreements

The elements of the negotiation result that are not incorporated into the EEA Agreement itself are contained in four related agreements:

- A bilateral EC-Norway agreement on a Norwegian financial mechanism in the form of an exchange of letters.

- An additional protocol to the EC-Iceland Free Trade Agreement of 1972.

- An additional protocol to the EC-Norway Free Trade Agreement of 1973.

- A bilateral EC-Norway agreement on certain agricultural products.

According to the bilateral EC-Norway agreement on a Norwegian Financial Mechanism for the period 2004 - 2009, Norway will make a bilateral financial contribution of EUR 567 million over this five-year period, in addition to the EUR 600 million of the multilateral EEA financial mechanism for the same period. Both the multilateral and the bilateral contributions will be administered separately, but in close co-ordination, using identical application procedures and criteria.

The Additional Protocols to the EC-Iceland and the EC-Norway Free Trade Agreements set out the negotiation results in the field of marine products with respect to Iceland and Norway. The Community will open duty free quotas for the processing industry on frozen round mackerel and frozen filet of herring for Norway and whole frozen herring for Norway and Iceland. Furthermore, frozen herring flaps are granted the same preferential treatment as frozen herring fillets. The quota levels will be reviewed after five years. The Community will increase the existing quota for frozen peeled shrimps from Norway, conditional upon a settlement of the issue of allowing for free, unhindered transit of marine products, landed in Norway by Community vessels, through Norway to the EU by 1 May 2004.

According to the bilateral EC-Norway agreement in the form of an exchange of letters, concerning certain agricultural products. Norway will open duty free quotas for frozen strawberries and other frozen berries, rye grass seed, apple juice and cat food.

Simultaneous Entry Into Force

A provision according to which each of the above texts should enter into force simultaneously has been introduced in the main agreement and the four related agreements.

Final Act

The final act also includes various declarations made by one, more or all contracting parties to the agreement.

Conclusion

The Commission recommends that the Council adopt the annexed decisions, based on article 310 EC, on the signature and conclusion of the Agreement on the participation of the Acceding Countries in the EEA and the four related agreements.

Proposal for a COUNCIL DECISION on the signing of an agreement on the participation of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic in the European Economic Area and four related agreements

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 310, in conjunction with the second sentence of the first subparagraph of Article 300 (2) thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Whereas:

(1) Following the conclusion of the enlargement negotiations at the December 2002 Copenhagen European Council and pursuant to Article 128 of the Agreement on the European Economic Area ('EEA'), the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic ("Acceding Countries"), applied to become Contracting Parties to the EEA Agreement.

(2) To this end, the Commission has negotiated, on behalf of the European Community and its Member States, an Agreement with the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Acceding Countries on the participation of the latter in the EEA.

(3) The Commission, on behalf of the Community and its Member States, has also negotiated the following related agreements:

- Agreement between the Kingdom of Norway and the European Community on a Norwegian Financial Mechanism for the period 2004 - 2009,

- Agreement between the European Community and the Republic of Iceland on an additional protocol to the Free Trade Agreement of 22 July 1972 between the European Economic Community and the Republic of Iceland,

- Agreement between the European Community and the Kingdom of Norway on an additional protocol to the Free Trade Agreement of 14 May 1973 between the European Economic Community and the Kingdom of Norway,

- Agreement in the form of an exchange of letters between the European Community and the Kingdom of Norway concerning certain agricultural products.

(4) Subject to their possible conclusion at a later date, these five agreements should be signed,

HAS DECIDED AS FOLLOWS:

Sole Article

Subject to their possible conclusion at a later date, the President of the Council is hereby authorised to designate the person empowered to sign, on behalf of the European Community, the following agreements:

- Agreement between the European Community, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Acceding Countries, on the participation of the latter in the European Economic Area,

- Agreement between the Kingdom of Norway and the European Community on a Norwegian Financial Mechanism for the period 2004 - 2009,

- Agreement between the European Community and the Republic of Iceland on an additional protocol to the Free Trade Agreement signed on 22 July 1972 between the European Economic Community and the Republic of Iceland consequent on the accession of the Acceding Countries to the European Union,

- Agreement between the European Community and the Kingdom of Norway on an additional protocol to the Free Trade Agreement signed on 14 May 1973 between the European Economic Community and the Kingdom of Norway consequent on the accession of the Acceding Countries to the European Union,

- Agreement in the form of an exchange of letters between the European Community and the Kingdom of Norway concerning certain agricultural products.

Done at Brussels,

For the Council

The President