Explanatory Memorandum to COM(2015)26 - EU position within the Joint Committee EU-Palestinian Authority as regards a new protocol concerning ‘originating products’

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1. CONTEXT OF THE PROPOSAL

The Regional Convention on pan-Euro-Mediterranean preferential rules of origin i ('the Convention') lays down provisions on the origin of goods traded under relevant Agreements concluded between the Contracting Parties. The EU and Palestine i signed the Convention on 15 June 2011 and 18 September 2013 respectively.

The EU and Palestine deposited their instrument of acceptance with the depositary of the Convention on 26 March 2012 and 27 May 2014 respectively. As a consequence, in application of its Article 10 i, the Convention entered into force in relation to the EU and Palestine on 1 May 2012 and on 1 July 2014 respectively.

Article 6 of the Convention provides that each Contracting Party shall take appropriate measures to ensure that the Convention is effectively applied. To that effect, the Joint Committee established by the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part i, should adopt a Decision replacing Protocol 3 concerning the definition of the concept of originating products and methods of administrative cooperation by a new Protocol which, with regard to the rules of origin, refers to the Convention. The position to be taken by the EU within the Joint Committee should be established by the Council.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



The EU Member States were informed on the draft Council Decision in the Customs Code Committee's Origin Section of 13 May 2013. The Contracting Parties to the Convention were last consulted at the meeting of the Pan-Euro-Med working group of 22 and 23 October 2014.

No recourse to external expertise has been necessary. Furthermore, it has not been necessary to conduct an impact assessment, since the proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect.

2.

LEGAL ELEMENTS OF THE PROPOSAL



The legal basis for the Council Decision is the first subparagraph of Article 207 i in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.

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

Proposed instrument: Council Decision.