Explanatory Memorandum to COM(2007)42 - Amendment of Regulation (EC) No 2007/2000 introducing exceptional trade measures for countries and territories participating in or linked to the EU's Stabilisation and Association process

Please note

This page contains a limited version of this dossier in the EU Monitor.

I. CONTEXT

1. By Regulation (EC) No 2007/2000 i, 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 31 December 2005 and renewed in 2005 until the end of 2010.

II. JUSTIFICATION FOR THIS PROPOSAL

5. The present proposal aims at modifying the current system of trade preferences to take into account the signature of a Stabilisation and Association Agreement with Albania and, pending the conclusion of ratification procedures, the entry into force of an Interim Agreement on trade and trade-related matters between the European Communities and Albania.

6. Insofar as the Interim Agreement / Stabilisation and Association Agreement (SAA) grants trade concessions to Albania on the same products identified in the autonomous trade preferences, these have to be withdrawn from Regulation (EC) No 2007/2000. These concern the preferential tariff quotas for certain wines, sugar as well as for certain fishery products. This proposal withdraws the preferential tariff quota on sugar from the Regulation and modifies annex I of the Regulation, by deducting insofar as is practicable the volume of the tariff quotas granted to Albania in the context of the SAA from the global tariff quota levels provided for in the Regulation.

7. Following the conclusion of the Stabilisation and Association Agreement with the former Yugoslav Republic of Macedonia, the above mentioned modification concerning this country for concessions on certain fishery products was not made in a sufficiently consistent manner. It is therefore appropriate to also remove the former Yugoslav Republic of Macedonia from the list of beneficiaries for these concessions under Regulation (EC) No 2007/2000, following the same principle as illustrated above for Albania.

III.

1.

BUDGETARY IMPLICATIONS



8. 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.