Explanatory Memorandum to COM(2007)444 - Proposal for a Council Decision a Community position within the EU-South Africa Cooperation Council on the amendment of Annexes IV and VI to the Agreement on Trade, Development and Cooperation between the EC and South Africa (TDCA), regarding certain agricultural products - Main contents
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| dossier | COM(2007)444 - Proposal for a Council Decision a Community position within the EU-South Africa Cooperation Council on the amendment of ... |
|---|---|
| source | COM(2007)444  |
| date | 25-07-2007 |
- Grounds for and objectives of the proposal
Article 106 i of the Agreement on Trade, Development and Cooperation between the European Community and its Member States, of the one part, and the Republic of South Africa, of the other part ('TDCA') empowers the Cooperation Council to decide on amendments put forward by any Party. According to Article 97 i of the TDCA, the Cooperation Council has the power to take decisions in respect of all matters covered by the TDCA.
Furthermore, Article 17 of the EU-South Africa Agreement on Trade, Development and Cooperation (TDCA) provides that the Community shall consider, if requested by South Africa, proposals relating to an accelerated timetable for tariff elimination for imports of agricultural products into South Africa, coupled with the elimination of all export refunds for exports to South Africa of the same products originating in the European Community.
In this context the objective of the proposed Council Decision is to eliminate the duties on Gouda, Cheddar and Processed cheese products for the Community’s preferential exports to South Africa, which has the effect of eliminating export refunds for these same cheeses exported to South Africa. The Community export refunds for the remaining TRQ cheeses listed in Annex VI, list 4, 'Cheese and curd', other than the three cheeses, would be maintained at the levels applied in July 2004, without prejudice to monetary rate adjustments.
It is also suggested to insert a footnote in the relevant Annex of the TDCA that clarifies the meaning of 'gross weight' in the context of the global TRQs for certain canned fruit products. Following discussions at the Council ACP WG of 6 November 2002 i, an understanding has been reached with South Africa on the formulation of such a footnote.
Since certain cheeses have been erroneously listed in list 8 of Annex IV of TDCA, under 'Cheese and curd' for which tariff concessions are not applicable as these products are covered by the protected Community denominations, the relevant cheeses are therefore moved from list 8 to list 7 of Annex IV.
- General context
This Council decision follows intensive negotiations at the technical level, following a proposal of resolution of the outstanding agricultural issues between the EU and South Africa. The way forward was endorsed at the political level on 14 November 2006 in the context of the EU-South Africa Cooperation Council.
The Commission, therefore, proposes that the Council adopts a common position of the Community on the position to be adopted by the Community within the Cooperation Council.
This balanced agreement gives a positive signal for the economic operators involved, and also for the future of the EU/South Africa relations that are currently being re-shaped into a more ambitions partnership in the context of "EU-South Africa Strategic Partnership i".
- Existing provisions in the area of the proposal
Council Regulation (EC) No 980/2005Council Decision 2004/441/ECCouncil Decision 2001/631/EC.
- Consistency with the other policies and objectives of the Union
This decision is part of the broader review exercise, which both sides have agreed to undertake in accordance with Article 103 of the TDCA i.
2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
- Consultation of interested parties
During the past years, several rounds of talks between the EU and South Africa took place at technical level to discuss the context and implications of this proposal.
Furthermore, the Member States were informed (orally) on the outcome of the talks during the whole negotiation period, at the 133 Committee and the ACP Council working group as well as at the 'Advisory group on Milk'.
- Collection and use of expertise
No need for external expertise.
- Impact Assessment
Not applicable.
- Summary of the proposed action
This Decision takes into account the tariff preferences on cheese products granted to the Community by South Africa as well as the elimination of the export refunds on the same cheese products. It also clarifies the interpretation of gross weight ("g.w.") in the context of certain canned fruit TRQs and modifies list 8 of Annex IV of the TDCA by moving certain erroneously included cheeses from list 8 to list 7 of Annex IV.
It is proposed that this amendment to the TDCA should enter into force as from 1 September 2007.
- Legal basis
Article 133 of the Treaty establishing the EC.
- Subsidiarity
The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply.
- Proportionality
The proposal complies with the proportionality principle.
The proposed form of action (Council decision on a position to be adopted within the Cooperation Council) is as simple as possible in the context of the legal framework established in the TDCA).
- Choice of instrument
Proposed instruments: Council decision (only way to amend TDCA trade provisions).
The budgetary impact for the Community budget will be negligible.