PURPOSE: to implement Article 84 of the Euro-Mediterranean Agreement between the European Communities and their Member States, of the one part, and Morocco, of the other part, in order to set up a customs cooperation committee and amend the rules of procedure of certain sub-committees and working groups of the Association Committee.

PROPOSED ACT: Council Decision.

CONTENT: in March 2000, the EU-Morocco Association Agreement came into force. The Agreement includes the setting up of seven sub-committees on: internal market, industry, trade and services, transport, environment and energy, research and innovation, agriculture and fisheries, justice and security, and human rights, democratisation and governance. The Agreement also provides for the establishment of a customs cooperation committee, a working party on social matters and migration and an economic dialogue.

However, in 2005 an amendment to Protocol 4 of the EU-Morocco Association Agreement concerning the definition of “originating products and methods of administrative cooperation” resulted in the removal of any reference to the customs cooperation committee. As a result, a new legal basis for the establishment of the customs cooperation committee will need to be created.

In a further development, and within the context of the European Neighbourhood Policy approved in 2005, an Action Plan was adopted with the dual purpose of setting out concrete steps towards fulfilling the parties’ obligations as set out in the Association Agreement and to provide a broader framework for further strengthening EU-Morocco relations. Under the terms of the Actions Plan, the sub-committees (outlined above) will be responsible for implementing the plan. However, not all areas covered by the Action Plan are covered by the existing subcommittees. Steps must therefore be taken to ensure that all the subject areas are monitored by the sub-committees. This will require adjustments to the rules of procedure of the internal market, industry, trade and services, transport, environment and energy, agriculture and fisheries, and justice and security sub-committees. Decision 1/2003 of the EU-Morocco Association Council will need to be amended accordingly.

In addition, the economic dialogue established by the Association Agreement does not, as yet, have rules of procedure, unlike the other bodies. The aim of this proposal therefore is to draw up rules of procedure governing the organisation of meetings of the economic dialogue group and its remit. The operating rules of the customs cooperation committee and economic dialogue group are modelled on the procedures of the existing subcommittees. They will be chaired by the European Commission with the Member States being informed of and invited to the meetings.

PURPOSE: concluding a Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, on the one hand, and Morocco, on the other hand. COMMUNITY MEASURE: Council and Commission Decision 2000/204/EC, ESCC on the conclusion of the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member Satets, of the one part, and the Kingdom of Morocco, of the other part. CONTENT: the general aim of the agreement is to consolidate the existing ties between the European Communities and their Member States, on the one hand, and Morocco, on the other hand. In addition, this Decision shall create a relationship based on reciprocity and partnership. Furthermore, the respect for democratic principles and human rights are a key feature in this agreement. The main provisions in this Agreement are: - the regular political dialogue at all levels; - the creation of a free trade area: in accordance witht he WTO rules, a free trade area between the Community and Morrocco will be created gradually over a period lasting no more than 12 years. Morocco, which up until now has granted the Community no concessions, will gradually eliminate trade barriers affecting the Community's industrial exports, and will apply preferential duties to agricultural exports. The preferential arrangements currently applied by the Community (free market access for Moroccan industrial exports, and concessions on most agricultural exports) are confirmed. - the agreement contains provisions on freedom of establishment and the freedom to provide serivces. The EC/Morocco Association Council will make its recommendations aimed at implementing these objectives. ENTRY INTO FORCE: 01.03.2000.

The rapporteur, Mr Von Habsburg (EPP, D), underlined the importance of providing support to modern Islamic states such as Tunisia and Morocco, whereas Algeria remained a time-bomb waiting to go off. While noting that Morocco had not developed at the same pace as Europe when it came to human rights, the speaker drew attention to the progress that had been achieved on the road to democracy in that North African country and for this reason supported the signing of an association agreement between the Community and Morocco. Commissioner Marin pointed out that since 1991 there had been a slow but tangible improvement when it came to respect for human rights in Morocco, one example of this being the legislation introduced on detention and the freedom of the press. Furthermore, since 1996 the main focus of debate in that country had been on the introduction of parliamentary democracy. On this basis the Commission thought that Parliament should approve the agreement in question. Referring to the situation in Western Sahara, the Commissioner said that the only way to resolve this dispute was by negotiation initiated within the framework of the United Nations and under the supervision of the Secretary-General, who would be submitting his final report on 31 August.

The Council on the basis of a Commission report, took stock of the negotiations and prospects for the conclusion of the Association Agreement with Morocco. The Council devoted more particular attention to the various components of the overall solution covering the agricultural sector and tinned sardines. In this context, it took note of the more detailed information provided by the Commission regarding the counter-concessions offered by Morocco. The Council noted that several delegations needed more time to assess fully the constituent parts of the proposed Agreement. At the same time, the Council noted the determination of all the Member States to do their utmost to ensure that negotiations with Morocco could very shortly be brought to a conclusion. With this in mind, the Presidency decided to suspend the Council meeting until Friday, 10 November 1995, emphasising that this was only a suspension and that the meeting would resume on that date. In the meantime, the Presidency and the Commission would continue their contacts with the various Member States and Morocco with a view to concluding the negotiations. The Council continued its discussions of 30 October on the various outstanding components of the negotiations with Morocco on an Association Agreement between the EU and Morocco. The Council focused in particular on certain problems relating to the agricultural sector and tinned sardines. At the end of the meeting, the Council reached agreement on an overall package that would make it possible to conclude the negotiations with Morocco. As a result, it called on the Commission to initial the Association Agreement on this basis. The Commission would also initial the new fisheries agreement with Morocco. The Council was very pleased that the negotiations had been completed at a time that was propitious for the success of the Euro-Mediterranean Conference in Barcelona.

PREVIOUS COMMUNITY LEGISLATION: Cooperation Agreement between the European Economic Community and the Kingdom of Morocco . The Agreement was signed on 27 April 1976. It entered into force on 1 November 1978 for an unlimited period and took effect on 1 January 1979. PREVIOUS POSITION OF EP: In its resolution of 26 May 1993 on relations between the European Community and the Maghreb, the European Parliament stated clearly that it was in favour of strengthening cooperation between the Community and the Maghreb , and approved the new partnership concept proposed by the Commission as part of a review of its cooperation policy. The EP felt that within the framework of this review of development policy the Community should give priority to relations with the Mediterranean countries, and in particular the Maghreb countries, although this should not adversely affect the countries south of that region. The EP believed that it was essential to develop cultural exchanges on both sides of the Mediterranean . The Maghreb countries should also undertake a genuine process of democratisation based on participation by the people and consideration for their concerns and aspirations, as well as respect for fundamental human rights, gender equality, the immediate abolition of torture, and respect for minority languages and cultures. The EP welcomed the creation of the Arab Maghreb Union (AMU) and reiterated the importance of the regional integration of the Maghreb . As regards political dialogue, Parliament called for a meeting of the heads of state of the Twelve and the Maghreb countries and for the creation of an institutional framework that went beyond the purely governmental sphere in order to bring together the various representatives of society. Finally, the EP supported the establishment of a free trade area between the European Community and the Maghreb, although it stated that this area would not on its own be sufficient to give adequate impetus and credibility to the process to bind the Maghreb closely to Europe . SITUATION IN THE MEMBER STATES: The important concessions made with regard to agricultural products in Morocco would primarily affect the EU Member States with a Mediterranean-style agricultural sector, notably Spain . DOCUMENTATION: Council Regulation 78/2211/EC of 26 September 1978 on the conclusion of the Cooperation Agreement between the European Economic Community and the Kingdom of Morocco, OJ L 265, 27.9.1978, p. 1b. Communication from the Commission to the Council and the European Parliament: The future of relations between the Community and the Maghreb, Brussels , 30 April 1992, SEC(92)401 final.