Explanatory Memorandum to COM(2011)88 - Signature of an Agreement with the Palestinian Authority providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Association Agreement with the Palestinian Authority

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CONTEXT OF THE PROPOSAL

The relationship between the European Union (EU) and the Palestinian Authority of the West Bank and the Gaza Strip (hereinafter referred to as 'Palestinian Authority') builds on the Euro-Mediterranean Interim Association Agreement that was signed in February 1997 and whose trade provisions came into force on 1 July 1997. Its main objective is to promote trade and investment and harmonious economic relations between the Parties and so to foster their sustainable economic development.

The Interim Association Agreement provides for duty-free access to EU markets for Palestinian industrial goods, and a phase-out of tariffs on EU exports to the occupied Palestinian territory (oPt) over five years. Article 12 of the Agreement establishes that the Community and the Palestinian Authority shall progressively establish a greater liberalisation of their trade in agricultural and fishery products of interest to both Parties. It also indicates in Article 14(2) that the Community and the Palestinian Authority shall examine the possibility of granting each other further concessions. Furthermore, Article 7 specifies trading conditions for processed agricultural products. No concessions are provided for fish and fishery products.

On 14 November 2005, the Council authorised the Commission to conduct negotiations in order to achieve greater liberalisation of trade in agricultural, processed agricultural products and fish and fishery products, including with the Palestinian Authority. These negotiations were conducted by DG AGRI, TRADE and ENTR in close cooperation with different Commission services, in particular DG RELEX, MARE, TAXUD, SANCO, BUDG and OLAF.

The results achieved are in line with the spirit of the Barcelona Process; in accordance with the Euro-Mediterranean Roadmap for agriculture (Rabat Roadmap) adopted by the Euro-Mediterranean Ministers of Foreign Affairs on 28 November 2005 for the acceleration of liberalisation of trade in agricultural products, processed agricultural products and fish and fishery products; with the principles of the European Neighbourhood Policy and the conclusions of the Euro-Mediterranean Conference of Ministers of Trade on 8-9 December 2009 aiming, inter alia, at facilitating the trade of Palestinian products with other Euro-Mediterranean partners on a bilateral and regional basis by 2010.

The European Commission and the Palestinian Authority officially opened the negotiations at high political level on 10 of June 2010 in Brussels, which were concluded on 17 December 2010 in Brussels and the Agreed Minutes on the deal reached were initialled on the same day. In order to implement the results of the negotiations concluded with the Palestinian Authority, the Commission proposes to the Council to adopt the attached Exchange of Letters.

The intention of both sides is that this Agreement enters into force early in 2011.

In consequence, the Commission proposes to the Council to adopt the annexed Decision.

1.

BUDGETARY IMPLICATION



It is estimated that the financial impact is negligeable.

On the basis of the above mentioned, the Commission proposes the Council to designate the person(s) empowered to sign the Agreement on behalf of the European Union, subject to its conclusion at a later date.