Explanatory Memorandum to COM(2024)505 - - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)505 - . |
|---|---|
| source | COM(2024)505 |
| date | 31-10-2024 |
1. Subject matter of the proposal
This proposal is to set out the position to be taken on the EU’s behalf in the Joint Committee of the EEA Agreement on the amendment of Protocol 4 to that Agreement, which lays down rules of origin.
2. Context of the proposal
2.1. Agreement on the European Economic Area (the EEA Agreement)
The EEA Agreement0 aims to strengthen trade and economic relations between its contracting parties in a continuous and balanced way. Under the Agreement, which entered into force on 1 January 1994, Parties should enjoy equal conditions of competition and respect the same rules, with a view to creating a homogeneous European Economic Area (EEA).
2.2. The Joint Committee
The Joint Committee, set up in line with Article 92 of the EEA Agreement, may decide to amend Protocol 4. The Joint Committee, which is composed of the representatives of the EEA Parties, draws up its decisions and recommendations by agreement between the EU and the EFTA States speaking with one voice.
2.3. The envisaged act of the Joint Committee
At its next meeting or by exchange of letters, the Joint Committee is to adopt a decision on the amendment of Protocol 4 (the envisaged act).
The purpose of the envisaged act is to amend Protocol 4 by replacing it with a new protocol to include a dynamic reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, so that it always refers to the latest version of the Convention in force.
The envisaged act will be binding on the parties, in line with Article 103, paragraph 1 of the EEA Agreement.
3. Position to be taken on the EU’s behalf
The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention) lays down provisions on the origin of goods traded under relevant agreements concluded between the contracting parties. The EU, Norway and Liechtenstein signed the Convention on 15 June 2011 and Iceland signed the Convention on 30 June 2011.
The EU, Norway, Iceland and Liechtenstein deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012, 9 November 2011, 12 March 2012 and 28 November 2011, respectively. As a consequence, under its Article 10(3), the Convention entered into force for the EU and Iceland on 1 May 2012 and for Norway and Liechtenstein on 1 January 2012.
The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023.
Article 6 of the Convention stipulates that each contracting party must take appropriate measures to ensure that the Convention is effectively applied. To that effect, the Association Council established by the Agreement should adopt a decision introducing the rules of the Convention under Protocol 4. This is done by introducing in the amended Protocol a reference to the Convention that will render it applicable.
The position to be taken by the EU within the Joint Committee should be established by the Council.
The proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect. Therefore, they do not require an impact assessment.
4. Legal basis
4.1. Procedural legal basis
4.1.1. Principles
Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’
The concept of ‘acts having legal effects’ includes acts that have legal effects because of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’0.
4.1.2. Application to the present case
The Joint Committee is a body set up by an agreement, namely the EEA Agreement.
The act that the Joint Committee is called on to adopt has legal effects. It will be binding under international law in accordance with Article 103, paragraph 1 of the EEA Agreement.
The envisaged act does not supplement or amend the institutional framework of the EEA Agreement.
Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.
4.2. Substantive legal basis
4.2.1. Principles
The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act for which a position is taken on the EU’s behalf.
4.2.2. Application to the present case
The main objective and content of the envisaged act relate to the common commercial policy.
The substantive legal basis of the proposed decision is therefore Article 207 i, first subparagraph, TFEU.
4.3. Conclusion
The legal basis of the proposed decision should be Article 207 i, first subparagraph, in conjunction with Article 218(9) TFEU.
5. PUBLICATION OF THE ENVISAGED ACT
As the act of the Joint Committee will amend the EEA Agreement, it would be appropriate to publish it in the Official Journal of the European Union after it has been adopted.