Explanatory Memorandum to COM(2017)86 - EU position in UNECE as regards amendments to a set of UN Regulations and the Construction of Vehicles (R.E.3) by guidelines on cyber security and data protection

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

At international level, the United Nations Economic Commission for Europe (UNECE) develops harmonised requirements intended to remove technical barriers to the trade in motor vehicles between the Contracting Parties to the Revised 1958 Agreement and to ensure that such vehicles offer a high level of safety and environmental protection.

In accordance with Council Decision 97/836/EC of 27 November 1997, the Union acceded to the Agreement of the United Nations Economic Commission for Europe (“UNECE”) concerning the adoption of uniform technical prescriptions for wheeled vehicles, equipment and parts which can be fitted to and/or be used on wheeled vehicles and the conditions for reciprocal recognition of approvals granted on the basis of these prescriptions (“Revised 1958 Agreement”), and in accordance with Council Decision 2000/125/EC of 31 January 2000 concerning the conclusion of the Agreement concerning the establishing of Global Technical Regulations for wheeled vehicles, equipment and parts which can be fitted and/or be used on wheeled vehicles ("Parallel Agreement"), the Union acceded to the Parallel Agreement.

The meetings of UNECE WP.29, the World Forum for Harmonisation of Vehicle Regulations, are held three times in March, June and November of each calendar year. In each meeting session new UN Regulations, amendments to existing UN Regulations or UN Global Technical Regulations (UN GTRs) are adopted in order to allow for technical progress. Prior to each WP.29 meeting these amendments are adopted by one of the six working groups (GRs) active under WP.29.

Subsequently, in a WP.29 meeting the final vote for adoption of the amendments, supplements and corrigenda takes place, provided the quorum is reached and there is a qualified majority among contracting parties. The EU is a contracting party to two Agreements (1958 and 1998 Agreements) under WP.29. A Council Decision, referred to as 'mega decision', containing the list of Regulations, amendments, supplements and corrigenda, is prepared each time and authorises the Commission to vote on behalf of the Union in each WP.29 meeting.

This Council Decision defines the Union's position in the voting of the Regulations, amendments, supplements and corrigenda submitted for vote in the March 2017 WP.29 meeting that will take place from 13 to 17 March 2017.

Consistency with existing policy provisions in the policy area

This proposal complements and is fully in line with the Union's internal market policy as regards the automotive industry.

The WP.29 system strengthens international harmonization of vehicle standards. The 1958 Agreement plays a key role in this objective since EU manufacturers can operate to a common set of type approval Regulations in the knowledge that the product will be recognized by the Contracting Parties as being in conformity with its national legislation. This scheme has allowed for Regulation (EC) No 661/2009 on the general safety of motor vehicles to repeal more than 50 EU Directives and replace them with the corresponding Regulations developed under the 1958 Agreement.

A similar approach has been taken with Directive 2007/46/EC, which has replaced the approval systems of the Member States with a Union approval procedure and established a harmonised framework containing administrative provisions and general technical requirements for all new vehicles, systems, components and separate technical units. That Directive incorporated UN Regulations in the EU type-approval system, either as requirements for type-approval or as alternatives to Union legislation. Since the adoption of that Directive, UN Regulations have increasingly been incorporated into Union legislation in the framework of the EU type-approval.

Consistency with other Union policies

The WP.29 system is linked to the Union policy on competiveness, on which this initiative has a positive impact. This proposal is also consistent with Union transport and energy policies, which are duly considered in the process for the drafting and adoption of the UN Regulations falling under the 1958 Agreement.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The legal basis for this proposal is Article 114, in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.

Subsidiarity

The vote in favour of international instruments like proposals for UN Regulations, amendments to UN Regulations and draft Global Technical Regulations and their incorporation into the Union system for the type-approval of motor vehicles can only be done by the Union. This does not only prevent fragmentation of the internal market, but also ensures equal environmental and safety standards across the Union. It also offers advantages of economies of scale: products can be made for the entire Union market and even the international market, instead of being customised to obtain national type-approval for every single Member State.

This proposal therefore complies with the subsidiarity principle.

Proportionality

This Council Decision authorises the Commission to vote on behalf of Union and is the proportionate instrument in accordance with Article 5(1) of Council Decision 97/836/EC in order to define a unified EU position at the UNECE with respect to the vote on the working documents proposed on the agenda of the WP.29 meeting. Therefore, this proposal complies with the proportionality principle as it does not go beyond what is necessary in order to achieve the objectives of ensuring the proper functioning of the internal market, while at the same time providing for a high level of public safety and protection.

Choice of the instrument

The use of a Council Decision is required by Article 218(9) TFEU in order to establish the positions to be adopted on the Union’s behalf in a body set up by an international agreement.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

Not applicable.

Stakeholder consultations

Not applicable.

Collection and use of expertise

External expertise is not relevant in the case of this proposal. It has however been reviewed by the Technical Committee on Motor Vehicles.

Impact assessment

This proposal cannot be the subject of an impact assessment as it is not of a legislative nature and no alternative policy options are available or possible.

Regulatory fitness and simplification

In terms of administrative burden, the initiative does not have repercussions, as the amendment references annexed to the mega decision will not introduce new reporting or other administrative obligations for enterprises, including SMEs. On the contrary, reduction of administrative burden is targeted as the application of world-harmonised requirements allow manufacturers to present approval documentation of systems and components not only in the EU but also on the export markets from Contracting Parties to the 1958 Agreement outside the EU.

The proposal has a very positive impact on automotive EU competitiveness and international trade. The acceptance of internationally harmonised vehicle regulations by the EU’s trading partners is recognised as the best way to remove non-tariff barriers to trade and to open or widen market access for EU automotive enterprises.

Fundamental rights

The proposal has no consequences for the protection of fundamental rights.

4. BUDGETARY IMPLICATIONS

This initiative has no budgetary implications.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

Not applicable.

Explanatory documents (for directives)

Not applicable

Detailed explanation of the specific provisions of the proposal

The proposal defines the Union's position in the voting of

– the amendments to UN Regulations Nos. 3, 4, 6, 7, 13, 19, 23, 27, 28, 38, 39, 43, 45, 48, 50, 69, 70, 73, 75, 77, 79, 83, 87, 91, 98, 99, 101, 104, 107, 109, 110, 112, 113, 118, 119, 123 and 138; and

– the proposal for amending the Consolidated Resolution on the Construction of Vehicles (R.E.3) by guidelines on cyber security and data protection.