Explanatory Memorandum to COM(2017)374 - EU position in the EU-Turkey Association Council as regards amending Protocol 2 to Decision No 1/98 on the trade regime for agricultural products

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The EU - Turkey bilateral trade relations for agricultural and fishery products are governed by the Agreement creating an association between the European Economic Community and Turkey of 12 September 1963 ('Agreement'), and in particular by EC-Turkey Association Council Decision No 1/98 of 25 February 1998 on the trade regime for agricultural products. Under this Association Council Decision, the Union has been granted certain concessions in the form of tariff quotas for bovine meat. The two quotas for bovine meat currently consist of a 5.000 tons quota of frozen bovine meat and a 14.100 tons quota of frozen bovine meat.

Since the entry into force of the Association Council Decision No 1/98 exports of EU bovine meat and live animals have been fluctuating and were for long periods of time banned by Turkey. In order to facilitate the full use of the quotas and to attain a regular trade flow in these products, Turkey has proposed to extend the coverage of two quotas for bovine meat to fresh and chilled bovine meat.

Such an amendment is in the interest of the Union as it would broaden product coverage of the existing concessions, better respond to market demand in Turkey and ensure better utilization of the quotas and thereby regular trade flows. Furthermore, fresh and chilled bovine meat tends to attain a higher price on the market. The wider long term objective of this amendment is to ensure that trade under the quotas flows regularly and without restrictions.

1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The proposal will broaden the scope of bovine meat products eligible to be exported to Turkey under the two quotas with a view to facilitate exports of bovine meat to Turkey.

Consistency with existing policy provisions in the policy area

The proposal is consistent with Union trade policy to increase opportunities to trade with third countries.

Consistency with other Union policies

The proposal is consistent with the Union's policy to promote trade between Member States and third countries and with the principle that the European Union should encourage the development of trade, including through the progressive abolition of restrictions on international trade. The proposal seeks to improve and facilitate trade in bovine meat products between the Union and Turkey.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

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 and Article 35 of the Additional Protocol to the Agreement establishing an Association between the European Economic Community and Turkey.  

Subsidiarity

The common commercial policy is listed among the areas of exclusive competence of the Union in Article 3 of the Treaty on the Functioning of the European Union (TFEU). This initiative concerns the implementation of an existing trade agreement.

Proportionality

All reasonable policy options were considered and the proposal is considered the most suitable to reach the stated objective.

Choice of the instrument

Decision by the EU-Turkey Association Council amending Protocol 2 to Decision No 1/98 of the EC-Turkey Association Council on the trade regime for agricultural products.


3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

Not applicable

Stakeholder consultations

The Commission has informally consulted with stakeholders and Member States which have been supportive of the proposal to broaden the coverage of products under the existing quotas.

Collection and use of expertise

The Commission has been in contact with stakeholders who provided their views on the market situation in Turkey.

Impact assessment

An impact assessment has not been carried because the proposal is foreseen to help increase and improve trade with Turkey in bovine meat products and thereby take advantage of existing bilateral trade preferences. The proposal does not affect imports into the Union and nor does it confer any new trade concessions to third countries.

Regulatory fitness and simplification

The proposal by broadening the product coverage could help small and medium sized enterprises to export bovine meat products to Turkey. A wider variety of products will be eligible under the quotas thereby facilitating full use of the quotas and increasing exports.

Fundamental rights

The proposal does not affect fundamental rights.

4. BUDGETARY IMPLICATIONS

The proposal will not have any implications for the Union budget.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The Commission will monitor trade flows to evaluate whether the proposal has ensured a better utilisation of the existing quotas and to ensure that exports of bovine meat to Turkey are not impeded.

Explanatory documents (for directives)

Not applicable.

Detailed explanation of the specific provisions of the proposal

Not applicable.