Considerations on COM(2020)259 - EU position in the Trade Committee with the Pacific States on the amendment of Protocol II concerning the definition of the concept of 'originating products'

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(1) The Interim Partnership Agreement between the European Community, of the one part, and the Pacific States, of the other part 3 (the Agreement),, which establishes a framework for an Economic Partnership Agreement has been provisionally applied by Papua New Guinea and the Republic of the Fiji Islands since 20 December 2009 and 28 July 2014, respectively. Following their accessions, the Independent State of Samoa and the Solomon Islands have also been provisionally applying the Agreement since 31 December 2018 and 17 May 2020 respectively.

(2) Pursuant to Articles 13 and 68 of the Agreement and Article 41of the Protocol II to the Agreement, the EPA Trade Committee may adopt amendments to the provisions of Protocol II to the Agreement.

(3) The Trade Committee, during its eighth meeting on *September 2020*, is to adopt a decision amending certain provisions of the Protocol II concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation.

(4) It is appropriate to establish the position to be taken on the Union's behalf in the Trade Committee, as the envisaged decision will be binding on the Union.

(5) Protocol II concerning the definition of the concept of ‘originating products’ and methods for administrative cooperation concluded in 2009, requires the amendments of certain provisions to update the rules of origin to the most recent development on rules of origin, to provide more flexible and simpler rules of origin aiming at facilitating trade for economic operators and optimising the utilisation rate of the preferential treatment.

(6) Amendments to products (headings and descriptions) mentioned in Annex II to Protocol II to the Agreement are necessary to align them with the updates made by the WCO on the HS Nomenclature 2012 and 2017 edition and keep consistency of products descriptions and HS classification with the harmonized system.

(7) The Treaty concerning the accession of the Republic of Croatia to the European Union was signed on 9 December 2011 and applied since 1 July 2013. The Agreement applies, on the one hand, to the territories in which the Treaty on the Functioning of the European Union is applied and under the conditions laid down in that Treaty, and, on the other hand, to the territories of the Signatory Pacific States. The text of Annex IV to Protocol II of the Agreement should be amended accordingly in order to include the Croatian version of the invoice declaration.

(8) Annex VIII to Protocol II to the Agreement lists the overseas countries and territories of the EU. Within the meaning of the Protocol ‘overseas countries and territories’ shall mean the countries and territories referred to in Part four of the Treaty establishing the European Community. The list should be updated to take account of the recent change of status of some of the overseas countries and territories.

(9) Owing to the accession of Samoa and Solomon Islands to the Agreement, both States should be removed from the meaning of “Other ACP States" referred to in Annex X of Protocol II.