Explanatory Memorandum to SEC(2011)1414 - Union position in the Joint Committee on the implementation of Article 66 of the Association Agreement on Trade and Co-operation between the EC, on the one part, and the Palestinian Authority, on the other part

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1. The Interim Association Agreement forms the legal basis for the bilateral relations between the European Union (EU) and the Palestinian Authority (PA).

2. Article 66 of the Interim Association Agreement provides for the setting up of the necessary bodies for its implementation.

3. In 2008 four subcommittees were set up with the following configuration: (i) Economic and Financial Matters, Trade, Customs Issues; (ii) Social Affairs; (iii) Energy, Environment, Transport, Science and Technology; (iv) Human rights, good governance and rule of law.

4. Following two rounds of subcommittees held between 2008-2010, the PA submitted a formal request at the 2010 Joint Committee to increase the number of subcommittees in order to ensure more focused discussions and a more adequate follow-up.

5. Based on the experience of the last two rounds of subcommittees, the European External Action Service also considers that the current number of subcommittees is not sufficient to enable a thorough discussion and proper co-ordination. By increasing the number of subcommittees to six, it is expected that the European Neighbourhood Policy (ENP) process will become much more focused and mutually beneficial. The PA has also shown increased capacity to participate in this process and has taken ownership of the process. The present proposal largely follows the same structure and scheme as the subcommittees with other ENP partners.

6. The PA is willing to strengthen cooperation in the various areas covered by the provisions of the Interim Association Agreement (IAA). The aim is for the bilateral relations between the EU and the Palestinian Authority to develop into an overall partnership with a coherent approach guaranteed by close and permanent coordination of all the various elements.

7. In view of the above, the European Commission proposes to the Council that the number of subcommittees is increased from four to six subcommittees in order to support the Joint Committee in the implementation of the IAA and the ENP Action Plan. The subcommittees will discuss matters of a technical nature that cannot be fully dealt with in the framework of the Joint Committee.

8. The six subcommittees proposed will cover the same issues dealt with in the current four subcommittees but will enable a more constructive discussion since more time will be allocated to each subject matter. The proposed configuration of the subcommittees is: (i) Human rights, good governance and rule of law; (ii) Social Affairs and Health (iii) Research, Innovation, Information Society, Audiovisual and Media, Education and Culture (iv) Economic and Financial Matters (v) Trade and Internal Market, Industry, Agriculture and Fisheries, Customs (vi) Energy, Transport, Climate Change, Environment, Water.

9. The objective, the subjects covered by each subcommittee and the implementing procedures are contained in the rules of procedure.