Explanatory Memorandum to COM(2012)700 - EU position on the implementation of certain provisions concerning the industrial products per the association agreement with Algeria

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Association agreements form the legal base for the European Union's relations with southern Mediterranean countries.

The Euro-Mediterranean Agreement between the European Community and the People's Democratic Republic of Algeria, which was signed in 2002 and entered in force in 2005, provides in Articles 9 and 11 for mutual obligations in the field of tariff dismantling for industrial products, as listed in Annexes 2 and 3 to the Association Agreement.

Pursuant to Article 9, the tariff dismantling schedule may be revised by common agreement in the event of serious difficulties for a given product. Article 11 stipulates that Algeria may take exceptional measures of limited duration in the form of an increase in or reintroduction of customs duties. The total value of imported products subject to such measures may not exceed 15% of total imports of industrial products from the Community over the last year.

At the 5th meeting of the Association Council on 15 June 2010, Algeria informed the European Union of its intention to revise the tariff dismantling which took effect on 1 September 2005 and submitted a formal request on 13 September 2010. Algeria's decision, stemming from the evaluation of the Agreement's effects five years after its entry into force, was underpinned by the wish to rebalance the structure of non-hydrocarbon trade, given the economic situation in a number of industrial sectors in Algeria. The parties agreed to start consultations on the implementing conditions for such exceptional measures, and on the sectors concerned, with a view to negotiating a solution.

This draft is based on the result of the consultations between the parties in mid-June 2012, the aim of which was to decide on acceptable amendments to the basic duties and to the tariff dismantling schedule initially provided for in the Agreement.