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COMMISSION OF THE EUROPEAN COMMUNITIES |
COM(2005) 417 final
Proposal for a
COUNCIL REGULATION
amending Regulation (EC) No 2007/2000
introducing exceptional trade measures
for countries and territories participating in or linked to the European
Union's Stabilisation and Association process
(presented by the Commission)
EXPLANATORY MEMORANDUM
I. Context
1. By Regulation (EC) No 2007/2000[1], the European Communities have granted exceptional unlimited duty-free access to the EU market for nearly all products originating in the countries and territories benefiting from the Stabilisation and Association process.
2. The key aim of these measures is to revitalise the Western Balkan economies through a privileged access to the EU market. In turn, economic development is to foster political stability in the entire region.
3. In accordance with the EU Stabilisation and Association process, the granting of these exceptional trade preferences is subject to certain conditions, namely the respect by the beneficiary countries and territories of fundamental principles of democracy and human rights, the readiness of the countries concerned to develop economic relations between themselves and to engage in economic reforms and regional integration through trade. Entitlement to the exceptional trade preferences is conditional on the beneficiaries’ involvement in effective administrative co-operation with the Community in order to prevent any risk of fraud. Finally, these exceptional trade preferences could only be maintained if the beneficiaries’ respected a standstill in customs duties and measures having equivalent effect to import trade originating in the EU.
4. These
trade preferences were granted for a period ending on
II. Justification for this proposal
5. The present
proposal aims at continuing the current system of trade preferences for an
additional period of 5 years, i.e. until
6. The trade preferences have contributed to an increase in the Western Balkans’ exports to the EU, thus meeting their objective so far. Indeed, between 2000 and 2004, imports from these countries into the EU have increased by approximately 8% on an annual basis.
7. At
its meeting in
8. Despite
some objective progress, the economic transition and reform process is, in
general, far from being completed in the Western Balkans. The termination of
the current trade preferences would withdraw from the beneficiaries an
objective economic advantage in their trade with the EU. In view of the
importance of the EU as the
9. The continuation of these trade preferences would not cause any meaningful adverse effects on the EU domestic market. Indeed, the Western Balkans as a whole continue to represent a very small fraction (0.7%) of the EU’s total import trade.
III. Explanation
of the provisions of this proposal
10. The
present proposal extends the duration of the current autonomous trade
preferences, to
IV. Budgetary
implications
11. The Regulation does not incur costs charged to the EC budget. Its application would also not entail any losses of customs revenue compared to the current situation. However, the application of this regulation would entail losses of customs revenue compared to a non-preferential trade treatment of the countries and territories with which Stabilisation and Association Agreement are not in force. This loss of customs revenue would amount to approximately € 105 million in annual terms.
Proposal for a
COUNCIL REGULATION
amending Regulation (EC) No 2007/2000
introducing exceptional trade measures
for countries and territories participating in or linked to the European
Union's Stabilisation and Association process
THE COUNCIL OF THE EUROPEAN
Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,
Having regard to the proposal from the Commission[3],
Whereas:
(1) Council
Regulation (EC) No 2007/2000[4] introducing exceptional trade
preferences to imports from the countries and territories participating in or
linked to the European Union’s Stabilisation and Association process, expires
on
(2) Since Stabilisation and Association Agreements have not yet been concluded with all the Western Balkan countries, it is appropriate to prolong the period of validity of Council Regulation (EC) No 2007/2000.
(3) Continued
market opening is expected to contribute to the process of political and
economic stabilisation in the region while not creating negative effects for
the Community. Accordingly, these preferences should apply for a further period,
from
(4) A
Constitutional Charter was adopted in the
(5) The trade measures provided for in Council Regulation (EC) No 2007/2000 should also take into account that the Republic of Montenegro, the Republic of Serbia and Kosovo, as defined in the United Nations Security Council Resolution 1244 (1999) [5], each constitute a separate customs territory.
(6) The
Community has concluded with the
HAS ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 2007/2000 is amended as follows:
1. In
Article 1, paragraphs 1 and 3, the words “and
2. In
Article 3, paragraphs 1 and 2, the words “the
3. Article 4 is modified as follows:
(a) In
paragraph 2, point d), the words “in the
(b) In
paragraph 4, introductory phrase and point c), the words “and
4. In
Article 17, “
5. In
Annex I, in the column “Beneficiaries”, all references to the words “
Article 2
This Regulation shall enter into force on
the first day following that of its publication in
the Official Journal of the European
Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at
For the Council
The President
[1] OJ L 240, 23.9.2000, p. 1 Regulation
as last amended by Council regulation (EC) No 374/2005
(OJ L 59, 5.3.2005, p. 1).
[2] As defined in the United Nations Security Council Resolution 1244 (1999)
[3] OJ C , , p. .
[4] OJ L 240, 23.9.2000, p. 1.
Regulation as last amended by Council Regulation 374/2005
(OJ L 59, 5.3.2005, p. 1).
[6] OJ L 90 , 8.4.2005, p. 36.
