Explanatory Memorandum to COM(2010)14 - Union position within the EU - Mexico Joint Committee relating to Annex III to Decision No 2/2000 of the EU-Mexico Joint Council concerning the definition of the concept of 'originating products' and methods of administrative cooperation

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CONTEXT OF THE PROPOSAL

- Grounds for and objectives of the proposal

The Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the one part, and the United Mexican States, of the other part, was signed in Brussels on 8 December 1997. The trade liberalisation provisions were laid down in Decision No 2/2000 of the EU-Mexico Joint Council established by the Agreement (hereinafter 'Decision No 2/2000').

Annex III to Decision No 2/2000 of the EU-Mexico Joint Council, concerning the definition of the concept of originating products and methods of administrative cooperation, sets out the rules of origin for the products originating in the territory of the Parties to the Agreement.

Mexico and the Union have agreed to introduce certain amendments to the rules of origin contained in Annex III to Decision No 2/2000.

- General context

Some of the rules of origin contained in Annex III to Decision No 2/2000 were originally agreed on a temporary basis and require regular monitoring. This is the case in particular for the special rules applying to certain chemical products of HS (Harmonized System) headings 2914 and 2915 (OJ L 245, 29.9.2000, p.1058.).

The temporary derogation for chemical products was initially agreed until 30 June 2003. This period was subsequently extended until 30 June 2006 and until 30 June 2009. It is now proposed to extend the period of application of these special rules for another five years, i.e. until 30 June 2014.

- Existing provisions in the area of the proposal

There are no existing provisions in the area of the proposal.

- Consistency with the other policies and objectives of the Union

Not applicable.

Consultation of interested parties and impact assessment

- Consultation of interested parties

Not relevant.

This proposal introduces amendments to a previous text.

- Collection and use of expertise

There was no need for external expertise.

- Impact assessment

Not relevant. This proposal introduces amendments to an existing bilateral trade agreement. There are no other options to be considered.

Not relevant. For the reasons given above there are no other options to be considered.

1.

LEGAL ELEMENTS OF THE PROPOSAL



- Summary of the proposed action

The Council is asked to adopt a Union position on a draft Decision of the European Union - Mexico Joint Committee introducing amendments to the rules of origin contained in Annex III to Decision No 2/2000 of the EU-Mexico Joint Council, concerning the definition of the concept of originating products and methods of administrative cooperation.

- Legal basis

Article 207 i first subparagraph of the Treaty on the Functioning of the European Union in conjunction of Article 218(9) thereof.

- Subsidiary principle

The proposal falls under the exclusive competence of the Union. The subsidiarity principle therefore does not apply.

- Proportionality principle

The proposal complies with the proportionality principle for the following reason(s).

Not relevant.

- Choice of instruments

Proposed instruments: other.

Other means would not be adequate for the following reason(s).

Decision of the EU - Mexico Joint Committee.

2.

Budgetary implication



The proposal has no implication for the Union budget.