Explanatory Memorandum to COM(2013)597 - EU position regarding the revision of Annex IV to the ACP-EC Partnership Agreement

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dossier COM(2013)597 - EU position regarding the revision of Annex IV to the ACP-EC Partnership Agreement.
source COM(2013)597 EN
date 22-08-2013
The Commission aims at having a coherent set of implementing rules regarding the external financial instruments under the Budget and the European Development fund (EDF) as of 1 January 2014, as soon as the transitional measures of the 11th EDF start applying. The new Financial Regulation and the Commission’s legislative proposals regarding external actions under the next Multi-Annual Financial Perspective (2014-2020) contain a number of elements which require that technical adjustments be made to Annex IV to the ACP-EC Partnership Agreement.

These technical adjustments aim at introducing innovations proposed regarding the implementation of external financial instruments under the Budget, worth extending to the ACP-EU Partnership, however without compromising the specific objectives it pursues. It is expected that following these adjustments, the implementation of the EDF will become simpler and more efficient.

In particular, the proposed amendments target the rules of nationality and origin (Articles 20 and 22 of Annex IV), as well as the regime of preferences (Article 26).

While the revision of the ACP-EC Partnership Agreement in 2010 resulted in the participation to grant and procurement procedures financed both under Budget and the EDF being widely open, the Commission is of the view that some progress could still be made in line with the evolving political context. Taking into account the EU commitments taken in Busan i, Accra i and at the OECD-DAC in Paris in 2010, a harmonised simplification has already been suggested regarding the rules of nationality and origin of external financial instruments under the Budget. While maintaining the core of the current regime of Annex IV, it is suggested to complement this regime with the harmonised and simplified rules proposed under the Budget.

As an example, it is suggested that entities of ACP countries become eligible to procurement procedures for projects in any developing country. In return for the market gain of ACP countries, that the entities of all developing countries, with the exception of G20 members, would also become eligible for procurement under the EDF.

As regards the regime of preferences, previous modifications have altered the text of Article 26 in such a way that undermines the coherence and applicability of the regime. As a result, it is suggested to make the necessary technical adjustments to reinstate the integrity of the Article.

In accordance with Article 100 of the ACP-EC Partnership Agreement, Annex IV may be revised by a decision of the ACP-EU Council of Ministers. In order to make sure that by 1 January 2014 a coherent set of implementing rules for the Budget and the EDF is in place, it is suggested that the ACP-EU Council of Ministers take the decision through an exchange of letters between the Chair of the ACP Council and the Chair of the Council of the European Union.

The Commission proposes that the Council of the European Union adopts the attached Decision.