The European Parliament adopted by 637 votes to 8, with 46 abstentions, 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 and Iceland concerning additional trade preferences in agricultural products.

Following the recommendation of its Committee on International Trade, Parliament gave its consent to the conclusion of the agreement.

The Agreement was initialled by the Parties on 17 September 2015 and provided for further trade preferences for trade in agricultural products, including additional fully liberalised tariff lines.

The Committee on International Trade adopted the report by David BORELLI (EFDD, IT) on the draft Council decision on the conclusion of the Agreement in the form of an exchange of letters between the European Union and Iceland concerning additional trade preferences for agricultural products.

The committee recommended that Parliament give its consent to the conclusion of the agreement.

As mentioned in the explanatory memorandum accompanying the report, the previous EU-Iceland agreement on liberalising agricultural trade entered into force on 1 January 2007. It set the duty-free access of Icelandic agricultural products to the EU market to 51.9 % of trade and the duty-free access of EU agricultural products to the Icelandic market to 66.4 % of trade.

The latest round of negotiations, which began on 4 July 2012, aimed at increasing the degree of liberalisation on both sides, extending the current tariff rate quotas and opening new tariff rate quotas for additional agricultural products.

The Agreement initialled on 17 September 2015 included additional tariff quotas or tariff reductions for more sensitive products such as meat, dairy products, fruit, vegetables and ornamental plants.

As a result of the negotiations almost 90 % of EU agricultural products will have duty-free access to the Icelandic market. Overall, almost all trade on processed agricultural products will be duty free, with some exceptions, notably of fermented milk products.

The Rapporteur is of the view that the negotiations have led to a balanced outcome, in particular, taking the simultaneously negotiated agreement on GI protection into account.

PURPOSE: to conclude an agreement in the form of an exchange of letters between the European Union and Iceland concerning additional trade preferences in agricultural products.

PROPOSED ACT: Council Decision.

ROLEOF THE EUROPEAN PARLIAMENT: Council may only adopt the act with Parliament’s approval.

BACKGROUND: the EU and Iceland 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 Parties will review efforts on the further reduction of any type of barriers to trade in the agricultural sector.

The previous agreement in the form of an exchange of letters entered into force on 1 January 2007. It provided for mutual tariff rate quotas and reductions in duty. It also included an undertaking by the Parties to resume bilateral negotiations under Article 19 of the EEA Agreement in two years’ time.

The bilateral agricultural trade agreement of 2007 increased the duty-free access of Icelandic agricultural products to the EU market to 51.9 % of trade and increased the duty-free access of EU agricultural products to the Icelandic market to 66.4 % of trade. These figures demonstrate that there was ample room for further trade concessions. Therefore, the latest round of negotiations that took place on 4 July 2012, 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. The Agreement was initialled by the Parties on 17 September 2015.

CONTENT: the Commission proposes that the Council adopt a decision approving, on behalf of the EU, the Agreement in the form of an exchange of letters between the European Union and Iceland 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. As a result almost 90 % of EU agricultural products will enter Iceland duty-free. For more sensitive products such as meat, dairy, fruit, vegetable and ornamental plants, additional tariff quotas or tariff reductions have been agreed upon.

BUDGETARY IMPLICATIONS: the Agreement will have no impact on the expenditure side of the EU budget. The new concessions granted on imports from Iceland will likely result in a reduction of own resources through a lower collection of customs duties.

PURPOSE: to conclude the Agreement in the form of an exchange of letters between the European Union and Iceland 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 Iceland are signatories to the Agreement on the European Economic Area (EEA Agreement). This Agreement provides that the contracting Parties shall undertake to continue their efforts to achieve progressive liberalisation of agricultural trade between them.

The Agreement in the form of an exchange of letters between the European Union and Iceland concerning additional trade preferences in agricultural products was signed subject to its conclusion. The Agreement should now be approved.

CONTENT: the draft Council decision seeks the approval, on behalf of the European Union, of the Agreement in the form of an exchange of letters between the European Union and Iceland concerning additional trade preferences in agricultural products.

The Agreement was initialled by the Parties on 17 September 2015 and provided for further trade preferences for trade in agricultural products, including additional fully liberalised tariff lines.

As a result almost 90 % of EU agricultural products will enter Iceland duty-free. For more sensitive products such as meat, dairy, fruit, vegetable and ornamental plants, additional tariff quotas or tariff reductions have been agreed upon.

PURPOSE: to conclude an agreement in the form of an exchange of letters between the European Union and Iceland concerning additional trade preferences in agricultural products.

PROPOSED ACT: Council Decision.

ROLEOF THE EUROPEAN PARLIAMENT: Council may only adopt the act with Parliament’s approval.

BACKGROUND: the EU and Iceland 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 Parties will review efforts on the further reduction of any type of barriers to trade in the agricultural sector.

The previous agreement in the form of an exchange of letters entered into force on 1 January 2007. It provided for mutual tariff rate quotas and reductions in duty. It also included an undertaking by the Parties to resume bilateral negotiations under Article 19 of the EEA Agreement in two years’ time.

The bilateral agricultural trade agreement of 2007 increased the duty-free access of Icelandic agricultural products to the EU market to 51.9 % of trade and increased the duty-free access of EU agricultural products to the Icelandic market to 66.4 % of trade. These figures demonstrate that there was ample room for further trade concessions. Therefore, the latest round of negotiations that took place on 4 July 2012, 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. The Agreement was initialled by the Parties on 17 September 2015.

CONTENT: the Commission proposes that the Council adopt a decision approving, on behalf of the EU, the Agreement in the form of an exchange of letters between the European Union and Iceland 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. As a result almost 90 % of EU agricultural products will enter Iceland duty-free. For more sensitive products such as meat, dairy, fruit, vegetable and ornamental plants, additional tariff quotas or tariff reductions have been agreed upon.

BUDGETARY IMPLICATIONS: the Agreement will have no impact on the expenditure side of the EU budget. The new concessions granted on imports from Iceland will likely result in a reduction of own resources through a lower collection of customs duties.