Explanatory Memorandum to COM(2015)460 - Introduction of emergency autonomous trade measures for Tunisia - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2015)460 - Introduction of emergency autonomous trade measures for Tunisia. |
|---|---|
| source | COM(2015)460  |
| date | 17-09-2015 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The current framework for trade relations between the European Union and the Republic of Tunisia ('Tunisia') is provided by the Euro-Mediterranean Association Agreement ('Agreement'), signed in 1995. The Agreement entered into force in 1998 and laid the foundation for the establishment of a Free Trade Area, including a progressive liberalization on agriculture. Tunisia and the EU are on the verge of engaging in negotiations for establishing a Deep and Comprehensive Free Trade Agreement (DCFTA) that will notably provide for further liberalisation of trade in agriculture.
The terrorist attack of 26 June 2015 in Sousse prompted a reaction from the EU on the need to further assist Tunisia in its political and economic transition, in a concrete and targeted manner, through actions that can be effective in the short-term.
On 20 July 2015 the Foreign Affairs Council discussed the situation in Tunisia and concrete measures which the EU could take to support it. The Council adopted the Conclusions on Tunisia 1 outlining actions to be taken to support Tunisian political transition and economy.
Against this background the European Commission proposes to offer a temporary, unilateral duty free tariff rate quota of 35 000 tons annually for Tunisia's exports of olive oil to the Union, under the form of autonomous trade measure. Such quota will be made available for a period of two years, from 1 January 2016 until 31 December 2017. This additional volume will be opened once the existing duty free tariff rate quota of 56 700 tonnes, enshrined in the Agreement, is exhausted.
Olive oil is Tunisia’s main agricultural export to the EU, and the olive oil industry is an important part of the country’s economy, providing direct and indirect employment to more than one million people and representing one-fifth of the country’s total agricultural employment.
It is to be noted that the concession should not prejudge the outcome of the agricultural negotiations in the framework of the DCFTA, due to start in October 2015.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
The legal basis for the proposal is Article 207(2) of the Treaty on the Functioning of the European Union. The initiative falls under the exclusive competence of the EU according to Article 3(e) TFEU. Therefore, the subsidiarity principle does not apply.
3. BUDGETARY IMPLICATIONS
The measures might lead to a modest net increase on imports as most of the quota increase will probably replace current inward processing trade (about 50000 tonnes of olive oil a year under the Inward Processing regime), resulting in a reduction of the imports under this regime. The budgetary implications (of duty collections) cannot be quantified precisely at present, but are assumed to be insignificant.