PURPOSE: to conclude, on behalf of the European
Union, the Agreement in the form of an Exchange of Letters between
the Union and China in connection with the WTO dispute settlement
proceedings: DS492 - measures affecting tariff concessions on
certain poultry meat 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: following the WTO panel report
adopted on 19 April 2017 in the WTO dispute settlement proceedings
DS492 - measures affecting tariff concessions on certain poultry
meat products brought by China against the European Union, the EU
needed to comply with the findings.
In particular, the panel found that when
allocating quantities within tariff rate quotas to supplying
countries under WTO rules, the EU should have taken into account as
a special factor China's increased ability to
export poultry products to the EU following the relaxation of
sanitary measures in July 2008. The reasonable period of time for
the implementation of the Panel Report under the WTO rules began on
19 April 2017.
On 12 March 2018, the Council authorised the
Commission to open negotiations on a mutually agreed solution with
China. Those negotiations were concluded and an agreement in the
form of an Exchange of Letters between the European Union and China
was initialled on 18 June 2018.
The agreement was signed on behalf of the Union
subject to its conclusion at a later date.
It is now necessary to approve the Agreement on
behalf of the European Union.
CONTENT: the present
proposal calls on the Council to conclude
the Agreement in the form of an Exchange of Letters between the
European Union and China in relation to DS492 European Union -
measures affecting tariff concessions on certain poultry meat
products.
The Agreement seeks to open the following
tariff rate quotas (TRQ):
-
a TRQ of 6060 tonnes for the tariff line 1602.3929 (with specific country
allocation of 6000 tonnes to China and 60 tonnes to all others),
with an in quota duty rate of 10.9%;
-
a TRQ of 660 tonnes for the tariff line 1602.3985 (with specific country
allocation of 600 tonnes to China and 60 tonnes to all others),
with an in-quota duty rate of 10.9%;
-
an erga omnes TRQ of 5000 tonnes
for the tariff line 1602.3219, with an inquota
duty rate of 8%.
The Commission shall adopt implementing
Regulations to expand and manage the relevant quotas. These
implementation measures are being prepared in parallel with this
proposal. Once the quotas are opened, the EU and China shall notify
the Agreement to the WTO Dispute Settlement Body as a mutually
agreed solution in relation to the dispute DS492.
The Commission also needs to provide for
transparent and appropriate tariff quota management.
Lastly, the Agreement shall also respect rights
of other suppliers, which were agreed in the context of past
Article XXVIII GATT negotiations.