PURPOSE: to conclude an Agreement in the form of an Exchange of Letters between the EU and the Palestinian Authority of the West Bank and the Gaza Strip providing further liberalisation of agricultural products and fish.

NON-LEGISLATIVE ACT : Council Decision 2011/824/EU on the conclusion of the Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part.

BACKGROUND: the relationship between the Union and the Palestinian Authority builds on the Euro-Mediterranean Interim Association Agreement on trade and cooperation , which was signed in February 1997 and whose trade provisions entered into force on 1 July 1997. The main objective is to promote trade and investment and harmonious economic relations between the parties thereby fostering their sustainable economic development.

The Interim Agreement provides for duty-free access to the Union markets for Palestinian industrial goods, and a phasing-out of duties on the Union exports to the occupied Palestinian territory over 5 years. Article 12 of the Interim Agreement provides that the Community and the Palestinian Authority shall progressively establish a greater liberalisation of their trade in agricultural and fishery products of interest to both Parties.

The Euro-Mediterranean Roadmap for agriculture (Rabat Roadmap) adopted by the Euro-Mediterranean Ministers of Foreign Affairs on 28 November 2005 provides that a high degree of trade liberalisation for agricultural products, processed agricultural products and fish and fishery products is desirable, the objective being full liberalisation of such trade by 2010, possibly excluding a very limited number of sensitive products. At the last Trade Euro-Mediterranean Ministerial meeting in December 2009, Ministers of Trade of the Euro-Mediterranean region committed themselves to facilitating the trade of Palestinian products, as stated in the roadmap.

Negotiations with the Palestinian Authority concerning greater liberalisation of trade in agricultural products, processed agricultural products and fish and fishery products were successfully concluded by signing the Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement, in accordance with Council Decision 2011/248/EU .

It is necessary to conclude the Agreement on behalf of the EU.

It should be noted the EU envisages granting additional trade preferences to the Palestinian Authority with a package of trade related technical assistance which will further help the Palestinian Authority to prepare for a future Palestinian State.

CONTENT : this Decision approves on behalf of the EU the Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part.

Main provisions :

Trade preferences : the Agreement provides for duty-free (and mostly also quota-free) access to Palestinian imports to the European market of agricultural products , processed agricultural products and fish and fishery products. Several products of the same nature originating in the EU will have duty-free (but not quota-free) access to Palestine, with some exceptions. The ultimate aim of the agreement, however, is to help the development of Palestinian economy and thus to facilitate exports of Palestinian products into the EU.

Rules of origin : entitlement to benefit from the additional trade preferences granted by the EU is conditional upon the Palestinian Authority's compliance with the relevant rules of origin and the procedures related thereto as well as the provision of effective administrative cooperation and assistance to the European Union. Any serious and systematic violations of these conditions, or other findings of fraud or irregularity, may lead to the adoption of measures by the EU following the relevant procedures in the Agreement in the form of an Exchange of Letters.

Safeguard clause : it is also provided that if the imports of agricultural products, processed agricultural products and fish and fishery products originating in the territory of the Palestinian Authority significantly increase and thus cause serious distortion in the EU internal market, the European Union may adopt safeguard measures.

Duration of concession : the import arrangements will be renewed on the basis of the conditions established by the Council and in the light of the experience gained in granting them. They are limited to 10 years . However, taking into account the economic situation of the West Bank and Gaza Strip, the Parties should prolong the application of duty-free quota-free treatment should they consider that the Palestinian economy needs an additional transitional period in order to be ready to enter into negotiations leading to further reciprocal concessions.

Review clause: the Union and the Palestinian Authority will meet 5 years from the date of entry into force of the Agreement to consider the possibility of granting each other further permanent concessions of trade in agricultural products, processed agricultural products, fish and fishery products. If this is not considered appropriate due to the limited future economic developments of the occupied Palestinian territory, such discussions will take place at later stage.

ENTRY INTO FORCE: the Decision enters into force on 20 October 2011. The date of entry into force of the Agreement will be published in the Official Journal of the European Union by the General Secretariat of the Council.

Decision 2011/824
OJ L 328 10.12.2011, p. 0002

Results of vote in Parliament

The European Parliament adopted a legislative resolution on the draft Council decision on the conclusion of the Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part.

Parliament gave its consent to the conclusion of the Agreement.

T7-0396/2011

Debate in Parliament

A7-0300/2011

A7-0300/2011

The Committee on International Trade unanimously adopted the report drafted by Maria Eleni KOPPA (S&D, EL) in which it recommends the European Parliament to give its consent to the conclusion of the Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part.

PE469.967

PE467.323

07769/2011

PURPOSE: to conclude an Agreement in the form of an Exchange of Letters between the EU and the Palestinian Authority of the West Bank and the Gaza Strip providing further liberalisation of agricultural products and fish.

PROPOSED ACT: Council Decision.

BACKGROUND: the relationship between the Union and the Palestinian Authority of the West Bank and the Gaza Strip builds on the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part which was signed in February 1997 and whose trade provisions entered into force on 1 July 1997. Its main objective is to promote trade and investment and harmonious economic relations between the Parties thereby fostering their sustainable economic development.

The Interim Agreement provides for duty-free access to the Union markets for Palestinian industrial goods, and a phasing-out of duties on the Union exports to the occupied Palestinian territory over five years. The possibility of granting the Palestinian Authority additional trade preferences is envisaged in the Interim Agreement.

Article 12 of the Interim Agreement provides that the Community and the Palestinian Authority shall progressively establish a greater liberalisation of their trade in agricultural and fishery products of interest to both Parties. Article 14(2) of the Interim Agreement provides that the Community and the Palestinian Authority shall examine, in the Joint Committee, the possibility of granting each other further concessions .

The European Neighbourhood Policy Action Plan for the Palestinian Authority, which was approved in May 2005 and subsequently extended, also contains provisions concerning the gradual liberalisation of trade in agriculture and fishery products.

The Euro-Mediterranean Roadmap for agriculture (Rabat Roadmap) adopted by the Euro-Mediterranean Ministers of Foreign Affairs on 28 November 2005 provides that a high degree of trade liberalisation for agricultural products, processed agricultural products and fish and fishery products is desirable; the objective is full liberalisation of such trade by 2010, possibly excluding a very limited number of sensitive products.

Consequently, it has been decided to extend the scope of the application of the said Agreement and approve the Agreement on behalf of the European Union.

IMPACT ASSESSMENT: no impact assessment was undertaken.

LEGAL BASIS: Article 207(4) first subparagraph, in conjunction with Article 218(6)(a) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: this proposal aims to approve, on behalf of the European Union, the Agreement in the form of an Exchange of Letters between the European Union, of the one part, and the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part.

The text of the Agreement is attached to the Decision. For further details, please refer to the summary of the previous initial legislative document dated 03/03/2011.

BUDGETARY IMPLICATION: this proposal has no implication on the EU budget.

07770/2011

PURPOSE: an Agreement in the form of an Exchange of Letters between the EU and the Palestinian Authority of the West Bank and the Gaza Strip providing further liberalisation of agricultural products and fish.

PROPOSED ACT: Council Decision.

BACKGROUND: the relationship between the EU and the Palestinian Authority builds on the Euro-Mediterranean Interim Association Agreement that was signed in February 1997 and whose trade provisions came into force on 1 July 1997. Its main objective is to promote trade and investment and harmonious economic relations between the Parties and so to foster their sustainable economic development.

The Interim Association Agreement provides for duty-free access to EU markets for Palestinian industrial goods, and a phase-out of tariffs on EU exports to the occupied Palestinian territory over five years. Article 12 of the Agreement establishes that the Community and the Palestinian Authority shall progressively establish a greater liberalisation of their trade in agricultural and fishery products of interest to both Parties.

On 14 November 2005, the Council authorised the Commission to conduct negotiations with the Palestinian Authority amongst others, in order to achieve greater liberalisation of trade in agricultural, processed agricultural products and fish and fishery products. These negotiations were conducted by several Commission services and OLAF. The results achieved are in line with the spirit of the Barcelona Process.

The European Commission and the Palestinian Authority officially opened the negotiations at a high political level on 10 of June 2010 in Brussels, and these were concluded on 17 December 2010 in Brussels. The Minutes on the deal reached were initialled on the same day.

It is proposed that the Agreement be concluded in the form of an exchange of letters.

IMPACT ASSESSMENT: no impact assessment was undertaken.

LEGAL BASE: Article e 207(4) first subparagraph, in conjunction with Article 218(6)(a) of the Treaty on the Functioning of the European Union.

CONTENT: the Commission proposes that the Council conclude the Agreement in the form of an exchange of letters between the EU and the Palestinian Authority providing further liberalisation of agricultural products, processed agricultural products and fish and fishery products and amending the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the EC and the Palestine Liberation Organization (PLO) for the benefit of the Palestinian Authority.

The conclusion of the Agreement means that the Palestinian Authority will benefit from further market opening, which is expected to support the development of the economy of the West Bank an d the Gaza Strip through increased export performance, while not creating negative effects for the European Union. The Agreement grants additional trade preferences to the Palestinian Authority by improving access to the EU.

The entitlement to benefit from the additional trade preferences granted by the EU is conditional upon the Palestinian Authority's compliance with the relevant rules of origin and the procedures related thereto as well as the provision of effective administrative cooperation and assistance to the EU. Any serious and systematic violations of these conditions, or other findings of fraud or irregularity, may lead to the adoption of measures by the EU following the relevant procedures in the Agreement.

The proposal also provides that if the imports of agricultural products, processed agricultural products and fish and fishery products originating in the territory of the Palestinian Authority significantly increase and thus will cause serious distortion at the EU internal market, the EU may adopt, if appropriate, safeguard measures.

Duration of the arrangements : the import arrangements adopted by the Decision will be renewed on the basis of the conditions established by the Council and in the light of the experience gained in granting them. Their duration is limited to ten years. However, taking into account the economic situation of the West Bank and Gaza Strip, the Parties shall prolong the application of duty-free quota-free treatment should they consider that the Palestinian economy needs an additional transitional period in order to be ready to enter into negotiations leading to further reciprocal concessions.

Review clause : the EU and the Palestinian Authority shall meet five years from the date of entry into force of the Agreement to consider the possibility of granting each other further permanent concessions of trade in agricultural products, processed agricultural products, fish and fishery products. If this is not considered appropriate due to the limited future economic developments of the occupied Palestinian territory, such discussions shall take place at later stage.

Entry into force : the intention of both sides is that this Agreement enters into force early in 2011.

BUDGETARY IMPLICATIONS: it is estimated that the financial impact is negligible.

COM(2011)0089
EUR-Lex