Explanatory Memorandum to COM(2017)595 - Conclusion of the agreement with Norway concerning additional trade preferences in agricultural products - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2017)595 - Conclusion of the agreement with Norway concerning additional trade preferences in agricultural products. |
|---|---|
| source | COM(2017)595  |
| date | 17-10-2017 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The EU and Norway are signatories to the Agreement on the European Economic Area (EEA Agreement) which provides for the free movement of goods, with the exception of agricultural and fisheries products. As regards agriculture, Article 19 of the EEA Agreement provides that the Parties will carry out, every two years, review of the conditions of trade in agricultural products and decide on a reciprocal and mutually beneficial basis on the further reduction of any type of barriers to trade in the agricultural sector.
The negotiations were conducted from 3 February 2015 to 5 April 2017. The agreement was initialled by the Parties on 5 April 2017 and provides for further trade preferences for trade in agricultural products, including additional fully liberalised tariff lines. For more sensitive products such as meat, dairy, vegetables and ornamental plants, additional or new tariff quotas have been agreed upon.
The intention of both Parties is that this Agreement enters into force on the third month following the date of the deposit of the last instrument of approval.
• Consistency with existing policy provisions in the policy area
The previous agreement took the form of an exchange of letters liberalising trade in agricultural products between Norway and the European Union, based on Article 19 of the EEA Agreement. The previous agreement was signed on 15 April 2011. It provided for mutual tariff rate quotas and reductions in duty. It also included an undertaking by the Parties to resume bilateral negotiations under Article 19 of the EEA Agreement in two years’ time.
The 2011 EU-Norway bilateral agricultural trade agreement increased the duty-free access of EU agricultural products to the Norwegian market to around 60 % of trade. These figures demonstrate that there was ample room for further trade concessions. Therefore, the latest round of negotiations aimed at:
·increasing the degree of liberalisation on both sides;
·increasing the current tariff rate quotas; and
·opening new tariff rate quotas for additional agricultural products
·addressing certain pending trade irritants.
• Consistency with other EU policies
The deepening of trade relations with Norway fits into the overall context of EU trade policy and is beneficial for the EU since the EU is a net exporter of basic agricultural products to Norway. The 2016 trade balance was vastly in favour of the EU, with the EU exports reaching EUR 2.495 million against EUR 307 million EUR imports from Norway. The main products exported by the EU are wines and vinegar, animal feed, soya and colza oil, live plants and cheese. Imports into the EU from Norway are mainly soybean, animal and vegetable oils and their residues, fur skins and undenatured ethyl alcohol.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
In November 2014 the Council authorised the Commission to launch a new round of negotiations with Norway to achieve additional preferences for trade in agricultural goods under Article 19 of the EEA Agreement.
3. BUDGETARY IMPLICATIONS
This agreement will have no impact on the expenditure side of the EU budget. The new concessions granted on imports from Norway will likely result in a reduction of own resources through a lower collection of customs duties.