Explanatory Memorandum to COM(2011)384 - Amendment of Council Regulation (EC) No 617/2009 opening an autonomous tariff quota for imports of high-quality beef - Main contents
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| dossier | COM(2011)384 - Amendment of Council Regulation (EC) No 617/2009 opening an autonomous tariff quota for imports of high-quality beef. |
|---|---|
| source | COM(2011)384  |
| date | 24-06-2011 |
· General context
The Panel and Appellate Body reports in European Communities — Measures Concerning Meat and Meat Products (Hormones) i, adopted by the World Trade Organization (WTO) Dispute Settlement Body (DSB) on 13 February 1998, found that the Community ban on imports of meat and meat products from cattle treated with certain hormones for growth promotion purposes was inconsistent with the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). The United States of America and Canada requested and obtained authorization from the DSB for the suspension of concessions to the Community in the annual amounts of US$116.8 million and CDN$ 11.3 million, respectively.
Following the amendment of Council Directive 96/22/EC of 29 April 1996 concerning the prohibition on the use in stockfarming of certain substances having a hormonal or thyrostatic action and of beta-agonists by Directive 2003/74/EC of the European Parliament and of the Council of 22 September 2003 the Community brought itself into compliance with the DSB rulings and recommendations. However, the United States and Canada considered that the Union was still in breach of its WTO obligations and that therefore they could continue to apply sanctions. The Community challenged the continued imposition of sanctions in new WTO cases.
On 31 March 2008, the Panel in United States — Continued Suspension of Obligations in the EC — Hormones Dispute and Canada — Continued Suspension of Obligations in the EC — Hormones Dispute concluded that the United States and Canada had made certain procedural violations. However, it also concluded that the measure found to be inconsistent with the SPS Agreement in the EC — Hormones dispute has not been entirely removed by the European Communities.
On 16 October 2008 the Appellate Body partly reversed the Panels findings on procedural violations and found that certain findings on the alleged failure to remove the measure found to be inconsistent with the SPS Agreement could not be upheld. The Appellate Body recommended the DSB to request the United States, Canada and the European Communities to initiate proceedings under Article 21.5 of the WTO Dispute Settlement Understanding (DSU) without delay in order to resolve their disagreement as to whether the European Communities has removed the measure found to be inconsistent in EC — Hormones and whether the application of the suspension of concessions by the United States and Canada remains legally valid.
On 22 December 2008 the Community requested and subsequently held consultations in the original Hormones cases with United States and Canada under Article 21.5 of the DSU.
In parallel, the Commission and the United States explored the possibility of finding a solution in this dispute without prejudice to their respective views on the WTO-consistency of the Union measures in order to bring this long-lasting transatlantic trade dispute to an end. A parallel solution was also sought with Canada.
In May 2009, it was found that a practical solution by which the Union would open an additional autonomous tariff rate quota for high-quality beef on a most-favoured-nation basis and the United States would reduce the amount of sanctions would be an expedient way of improving trading relations and avoiding further escalation of the dispute.
The relevant Memorandum of Understanding between the United States of America and the European Commission Regarding the Importation of Beef from Animals Not Treated with Certain Growth-Promoting Hormones and Increased Duties Applied by the United States to Certain Products of the European Communities was endorsed by the Council by letter of 12 May 2009 and signed in Geneva on 13 May 2009. i It foresees a three-phased arrangement which progressively reduces the level of sanctions imposed by the United States on products from the Union, while the Union progressively increases the tariff-rate quota for high-quality beef that is not treated with growth hormones. The first-phase tariff-rate quota for high-quality beef of 20,000 tonnes was established by Council Regulation (EC) No 617/2009. In a second phase, the United States would suspend all remaining sanctions and the Union would expand this tariff rate quota by additional 25,000 tonnes.
On 17 March 2011, the Commission also signed a Memorandum of Understanding between the Government of Canada and the European Commission Regarding the Importation of Beef from Animals Not Treated with Certain Growth-Promoting Hormones and Increased Duties Applied by Canada to Certain Products of the European Union. i This Memorandum of Understanding brings about the suspension of all sanctions imposed by Canada and stipulates the further expansion of the Union autonomous tariff rate quota for high-quality beef by 1,500 tonnes (first phase) and additional 1,700 tonnes (second phase). The timing foreseen for the first and second phases in the US and Canada Memoranda is the same. It is envisaged in particular that the second phase would normally begin on 1 August 2012 under both Memoranda.
· Grounds for and objectives of the proposal
In order to be in a position to establish the above-mentioned increases of the existing tariff rate quota for high-quality beef, to a total of 21,500 tonnes (first phase) and subsequently, 48,200 tonnes foreseen in the second phase of both Memoranda of Understanding starting on 1 August 2012, the legislative procedure needs to be started in a timely manner.
This is also necessary in order to follow the Resolution adopted by the European Parliament on 8 March 2011 calling on the Commission to ensure that the settlement of the beef hormones dispute will allow for the suspension of the sanctions on EU products, while guaranteeing that beef imports to the EU will be in line with EU requirements. i
· Summary of the proposed action
The purpose of this proposal is to request the European Parliament and the Council to amend the existing Regulation opening an autonomous tariff quota for imports of high-quality beef, in order to implement the steps set out in the Memoranda of Understanding signed with the United States of America and Canada, respectively.
Moreover, the amendment introduces necessary alignment of Commission implementing powers with the Treaty of Lisbon.
· Legal basis
Article 207 of the Treaty on the Functioning of the European Union.
· Subsidiarity Principle
The proposal falls under exclusive competence of the Union, Article 3(1)(e) of the Treaty on the Functioning of the European Union. The subsidiarity principle therefore does not apply.
· Proportionality Principle
The proposal complies with the proportionality principle.
· Choice of instruments
Proposed instrument: Regulation of the European Parliament and of the Council.
Other means would not be adequate for the following reason: a Regulation must be amended by a Regulation.
The customs duty of this tariff-rate quota would remain fixed at zero. Depending on the future beef market situation, imports of high-quality beef may therefore no longer be shipped using the existing quota set up by Regulation (EC) No 810/2008 or out-of-quota. This may imply a loss of own resources of the Union (see Financial Statement).