PURPOSE: to conclude an agreement in the form of an
exchange of letters between the European Union and Norway
concerning additional trade preferences in agricultural
products.
PROPOSED ACT: Council Decision.
ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the
act only if Parliament has given its consent to the
act.
BACKGROUND: the EU and Norway are signatories to
the Agreement on the European Economic Area (EEA Agreement)
which provides for the free movement of goods, with the exception
of agricultural and fisheries products.
Article 19 of the EEA Agreement provides that the
contracting Parties undertake to continue their efforts to
achieve progressive liberalisation of trade in agricultural
products.
The previous
agreement in the form of an exchange of letters liberalising
trade in agricultural products between Norway and the European
Union was signed on 15 April 2011. It provided for mutual tariff
rate quotas and reductions in duty. It also included an undertaking
by the Parties to resume bilateral negotiations in two years
time.
The 2011 EU-Norway bilateral agricultural trade
agreement increased the duty-free access of EU agricultural
products to the Norwegian market to around 60 % of
trade.
Therefore, the latest round of negotiations aimed at:
(i) increasing the degree of liberalisation on both sides; (ii)
increasing the current tariff rate quotas; and (iii) opening new
tariff rate quotas for additional agricultural products; (iv)
addressing certain pending trade irritants.
CONTENT: the Commission proposes that the Council
adopt a decision approving, on behalf of the European Union, the
Agreement in the form of an exchange of letters between the
European Union and Norway concerning additional trade preferences
in agricultural products.
The Agreement provides for further trade
preferences for trade in agricultural products,
including additional fully liberalised tariff lines.
For more sensitive products such as meat, dairy,
vegetables and ornamental plants, additional or new tariff quotas
have been agreed upon.
The deepening of trade relations with Norway fits into
the overall context of EU trade policy and is beneficial for the
EU since the EU is a net exporter of basic agricultural
products to Norway.
The main products exported by the EU are wines and
vinegar, animal feed, soya and colza oil, live plants and
cheese.
Imports into the EU from Norway are mainly soybean,
animal and vegetable oils and their residues, fur skins and
undenatured ethyl alcohol.
BUDGETARY IMPLICATIONS: this Agreement will have no
impact on the expenditure side of the EU budget. The new
concessions granted on imports from Norway will likely result in a
reduction of own resources through a lower collection of customs
duties.