The European Parliament adopted by 534 votes to 128, with 36 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process and suspending its application with regard to Bosnia and Herzegovina.

The matter was referred back the committee responsible at its 30 April 2015 plenary session.

The European Parliament’s position, adopted at first reading under the ordinary legislative procedure, amended the Commission proposal as follows:

Conditions for entitlement to the preferential arrangements: the amended text stipulates that the entitlement to the preferential treatment introduced by the Regulation shall be, inter alia, subject to commitments from the countries and territories participating in or linked to the European Union's Stabilisation and Association process who do not commit serious and systematic violations of human rights, including core labour rights, of fundamental principles of democracy and of the rule of law.

In the event of non-compliance by a country or territory with point (a), (b) or (c) of paragraph 1 or with paragraph 2, the Commission may, by means of implementing acts, suspend, in whole or in part, the entitlement of the country or territory concerned to benefits under this Regulation. Those implementing acts shall be adopted in accordance with the examination procedure.

Temporary suspension: where the Commission finds that there is sufficient evidence of fraud or failure to provide administrative cooperation as required for the verification of evidence of origin, or that there is a massive increase in exports into the Union above the level of normal production and export capacity, or a failure of compliance with the provisions of point (a), (b) or (c) of Article 2(1) by the countries and territories referred to the Regulation, it may take measures to suspend in whole or in part the arrangements provided for in this Regulation for a period of three months, provided that it has first: (i) informed the Committee; (ii) called on the Member States to take such precautionary measures as are necessary in order to safeguard the Community’s financial interests and/or to secure compliance by the beneficiary countries and territories; (iii) published a notice in the Official Journal of the European Union stating that there are grounds for reasonable doubts about the application of the preferential arrangements.

Wine originating in Montenegro: in annex I, it is stipulated that access for wine originating in Montenegro to the global tariff quota, insofar as it concerns products of CN code 2204 21, is subject to the prior exhaustion of the individual tariff quota provided for in the Protocol on wine concluded with Montenegro. That individual tariff quota is opened under order No 09.1514.

The Regulation shall apply from 1 January 2016.

In an annex to the legislative resolution, the Council agreed, on an exceptional basis, to delegate to the Commission the power to adopt a delegated act on suspension of assistance on the grounds relating to conditions for entitlement to the preferential arrangements, so as to ensure a timely adoption of the measures in relation to the Western Balkans. Such agreement is without prejudice to future legislative proposals in the area of trade, as well as the area of external relations as a whole.

The European Parliament adopted some amendments on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process and suspending its application with regard to Bosnia and Herzegovina (BiH).

The matter was referred for review to the competent Committee. The vote was postponed to a later meeting.

The amendments adopted in plenary focus on the following points:

Delegated acts: in order to assure a proper democratic oversight of the application of the basic Regulation by the Commission, Parliament proposed to apply the procedure with delegated acts in relation to:

• necessary amendments and technical adjustments to Annexes I and II following amendments to CN codes and to the TARIC subdivisions;
• in respect of necessary adjustments following the granting of trade preferences under other arrangements between the Union and the countries and territories covered by this Regulation;
• the suspension of benefits in the event of non-compliance with the condition of effective administrative cooperation in order to prevent fraud, the condition of respect for human rights and the rule of law principles as well as the condition of engaging in effective economic reforms and in regional cooperation.

Furthermore, Parliament introduced to the basic Regulation a recital explaining the use of delegated acts.

Adaptation of the Interim Agreement with the EU: following the accession of Croatia, the authorities of BiH and the Commission were urged to strive for an agreement, in particular, as regards cross-border exchanges, before 1 January 2016, and in accordance with the Interim Agreement.

Progress towards accession: Members judged it necessary to take into account the constant progress towards European Union membership by the concerned countries and territories of the Western Balkans, as well the Union's unequivocal commitment to BiH's EU perspective, as set out in the conclusions of the Foreign Affairs Council of 15 December 2014.

A new recital stressed that the European Union expects the political leadership of the country to pursue reforms aimed at promoting functional institutions as well as ensuring equal rights for the three constituent peoples and all citizens of BiH.

The Committee on Internationl Trade adopted the report by Goffredo Maria BETTINI (S&D, IT) on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process and suspending its application with regard to Bosnia and Herzegovina (BiH).

The parliamentary committee recommended that the European Parliament adopts its position at first reading, following the ordinary legislative procedure, amending the Commission proposal as follows.

Delegated acts: in order to assure a proper democratic oversight of the application of the basic Regulation by the Commission, Members proposed to apply the procedure with delegated acts for the suspension of preferences in case of non-compliance with the condition of effective administrative cooperation in order to prevent fraud, the condition of respect for human rights and the rule of law principles, as well as the condition of engaging in effective economic reforms and in regional cooperation.

Furthermore, the report introduced to the basic Regulation a recital explaining the use of delegated acts.

Adaptation of the Interim Agreement with the EU: the EU and BiH are urged to strive for an agreement regarding the adaptation of the Interim Agreement with the EU following the accession of Croatia, in order to avoid the suspension of preferences for BiH as of 1 January 2016.

Progress towards accession: Members judged it necessary to take into account the constant progress towards European Union membership by the concerned countries and territories of the Western Balkans, as well the Union's unequivocal commitment to BiH's EU perspective, as set out in the conclusions of the Foreign Affairs Council of 15 December 2014.

A new recital stressed that the European Union expects the political leadership of the country to pursue reforms aimed at promoting functional institutions as well as ensuring equal rights for the three constituent peoples and all citizens of BiH.

PURPOSE: to amend Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process and suspending its application with regard to Bosnia and Herzegovina.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

CONTENT: the EU's policy towards the countries of the Western Balkans is defined within the Stabilisation and Association Process launched in May 1999.

At its meeting in Lisbon on 23 and 24 March 2000, the European Council concluded that Stabilisation and Association Agreements with Western Balkan countries should be preceded by asymmetrical trade liberalisation. Council Regulation (EC) No 1215/2009 introduced exceptional trade measures for countries and territories participating in or linked to the Stabilisation and Association process. Regulation (EC) No 1215/2009 applies until 31 December 2015.

Bosnia and Herzegovina: since the launch of the Stabilisation and Association Process, Stabilisation and Association Agreements have been concluded between the Union and all concerned Western Balkan countries, with the exception of Bosnia and Herzegovina and Kosovo. Bosnia and Herzegovina was recognised as a potential candidate country for EU accession in 2003 and signed a Stabilisation and Association Agreement in 2008, agreeing to the EU’s conditions for membership. Since then, an Interim Agreement on trade and trade-related matters with Bosnia and Herzegovina applies, pending the finalisation of the ratification process of the Stabilisation and Association Agreement.

Having regard to differences in the scope of the tariff liberalisation under the contractual regimes which have been developed between the Union and all participants to the Stabilisation and Association process and the preferences granted under Regulation (EC) No 1215/2009, it is suggested to prolong the duration of Regulation (EC) No 1215/2009 until 31 December 2020, so as to give the beneficiaries of the exceptional trade measures and the European Union sufficient time to align, where appropriate, preferences granted under Regulation (EC) No 1215/2009 with those provided for under the Stabilisation and Association Agreements.

Consequences of the enlargement of the EU to Croatia: Bosnia and Herzegovina have not yet accepted to adapt trade concessions granted under the Interim Agreement in order to take into account the preferential traditional trade between Croatia and Bosnia and Herzegovina under the Central European Free Trade Agreement (CEFTA). In case Bosnia and Herzegovina and the European Union do not find an agreement on the adaptation of trade concessions, preferences granted to Bosnia and Herzegovina under Regulation (EC) No 1215/2009 should be suspended as of 1 January 2016. Once Bosnia and

Herzegovina and the European Union have signed and applied provisionally an agreement on the adaptation of trade concessions in the Interim Agreement, these preferences will be reestablished.

Human Rights: Regulation (EC) No 1215/2009 does not provide any possibility to temporarily suspend the grant of exceptional trade measures in case of serious and systematic violations of the fundamental principles of human rights, democracy and the rule of law by its beneficiaries. It is appropriate to introduce such possibility, so as to ensure that swift action can be taken in case serious and systematic violations of the fundamental principles of human rights, democracy and the rule of law would occur in one of the countries and territories participating in or linked to the European Union's Stabilisation and Association process.

Wine originating in Montenegro: lastly, a technical adjustment regarding Montenegro's access to the additional global quota for wine imports is included.