BETA


2019/0132(NLE) EU/Euratom/Ukraine Association Agreement: trade preferences for poultry meat and poultry meat preparations

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead INTA GYŐRI Enikő (icon: EPP EPP) BELKA Marek (icon: S&D S&D), PAET Urmas (icon: Renew Renew), HAUTALA Heidi (icon: Verts/ALE Verts/ALE), WASZCZYKOWSKI Witold Jan (icon: ECR ECR), SCHOLZ Helmut (icon: GUE/NGL GUE/NGL)
Committee Opinion AGRI KUŹMIUK Zbigniew (icon: ECR ECR) Anja HAZEKAMP (icon: GUE/NGL GUE/NGL)
Lead committee dossier:
Legal Basis:
TFEU 207-p3, TFEU 207-p4, TFEU 218-p6a

Events

2019/12/16
   Final act published in Official Journal
2019/12/05
   EP/CSL - Act adopted by Council after consultation of Parliament
2019/12/05
   EP - End of procedure in Parliament
2019/12/05
   CSL - Council Meeting
2019/11/26
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 444 votes to 128, with 74 abstentions, a legislative resolution on the draft Council decision on conclusion, on behalf of the Union, of the Agreement in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

The European Parliament gave its consent to the conclusion of the Agreement.

The purpose of the Agreement in the form of an Exchange of Letters is to amend the trade preferences provided for in the Association Agreement between the European Union and Ukraine in respect of poultrymeat and poultrymeat preparations. It aims to find a solution to the rapid increase in duty free imports of this particular poultry cut, which was neither existent nor foreseeable during the negotiations of the Association Agreement.

Documents
2019/11/25
   EP - Debate in Parliament
2019/11/18
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on International Trade adopted the report by Enikő GYŐRI (EPP, HU) on the draft Council decision on conclusion, on behalf of the Union, of the Agreement in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

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

As a reminder, under a Deep and Comprehensive Free Trade Area (DCFTA), which is part of the Association Agreement between EU and Ukraine signed in 2014, most tariff lines are liberalised or are subject to specific tariff rate quotas. Poultry meat and poultry meat products are considered as sensitive items. Therefore, they are subject to a duty-free tariff rate quota (TRQ) under DCFTA.

However, the Ukrainian poultry imports of fresh or frozen “other” cuts under the tariff lines CN 0207 13 70 and 0207 14 70 are liberalised without any quantitative restrictions. Since 2016 the EU has been receiving exponentially increasing amounts of poultry cuts exactly under these two unprotected tariff lines, with imports rising from 3.700 tons in 2016 to more than 55.000 tons in 2018.

Therefore, the committee recommends Parliament to give consent to this amending agreement as it provides a solution for the current situation caused by the excess import of Ukrainian poultry meat, namely by:

- integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ);

- increasing the size of the TRQ by 50 000 tons and subjecting all the excess imports of the above-mentioned tariff lines as well as other tariff lines to MFN duty rate.

The rapporteur called for a quick implementation of the agreement concluded in the form of exchange of letters, modifying the trade preferences for poultry meat and poultry meat preparations, as this creates a stable and predictable trading environment by closing the existing gaps under the current provisions.

Documents
2019/11/07
   EP - Vote in committee, 1st reading/single reading
2019/11/06
   EP - Committee opinion
Documents
2019/10/17
   EP - Committee draft report
Documents
2019/09/23
   EP - GYŐRI Enikő (EPP) appointed as rapporteur in INTA
2019/09/16
   EP - Committee referral announced in Parliament, 1st reading/single reading
2019/09/04
   EP - KUŹMIUK Zbigniew (ECR) appointed as rapporteur in AGRI
2019/07/09
   CSL - Document attached to the procedure
Details

AGREEMENT in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

Negotiations between the European Union and Ukraine on trade preferences for poultrymeat and poultrymeat preparations were concluded on 19 March 2019.

The agreement consists of integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ) of currently 18 400 tons and increasing to 20 000 tons in 2021 (Order Number 09.4273) while the size of the TRQ will be increased by 50 000 tons. Imports under tariff lines CN 0207 13 70 and 0207 14 70 exceeding the TRQ would then become subject to Most Favoured Nation duty rate of EUR 100.8/100 kg net weight.

Pending its entry into force, the Agreement shall be applied provisionally from the first day of the month following the date of receipt by the Depositary of: (i) the Union's notification on the completion of the procedures necessary for this purpose; and (ii) Ukraine’s notification of the completion of ratification in accordance with its procedures and applicable legislation, whichever is later, pending its entry into force.

Documents
2019/07/09
   EC - Legislative proposal published
Details

PURPOSE: to conclude, on behalf of the Union, the Agreement in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

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 Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, entered into force on 1 September 2017.

A new type of poultry cut consists of a traditional breast cap with the humerus bones of the wings attached and can, after minimal transformation in the Union, be marketed in the Union as poultry breast. Unlimited imports of those cuts, of which imports from Ukraine reached 55 500 tons in 2018, therefore risk undermining the conditions under which traditional poultry breast cuts may be imported into the Union under the Association Agreement, in particular the quantitative restrictions in the form of a tariff rate quota.

On 20 December 2018, the Council authorised the Commission to open negotiations with Ukraine with a view to finding a solution by amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement. Those negotiations were successfully concluded on 19 March 2019.

CONTENT: the purpose of the draft Council Decision is to approve, on behalf of the Union, the Agreement in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

Documents
2019/06/12
   EC - Document attached to the procedure
Details

PURPOSE: signature, on behalf of the European Union, and provisional application of the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part

PROPOSED ACT: Council Decision.

BACKGROUND: the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, entered into force on 1 September 2017.

From mid-2016, a new type of poultry cut started to be imported from the Ukraine to the EU in increasing quantities. This novel cut consists of a traditional breast cap with the humerus bones of the wings attached, the latter making up for a very small part of the total weight of the cut. After a minimal transformation, this cut can be marketed in the EU as poultry breast.

As such imports are not subject to quantitative restrictions they have the potential, if their trade regime remains unchanged, to undermine the protection provided for poultry breast in the form of TRQs under the Association Agreement and consequently to disrupt the delicate balance in the poultry meat market of the EU. It is therefore urgent to find a solution to this situation. The Commission has received numerous written questions from Members of the European Parliament and the European poultry meat sector asking for action in order to find a solution.

On 20 December 2018, the Council authorised the Commission to open negotiations with Ukraine with a view to amend the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement. The negotiations were successfully concluded on 19 March 2019.

CONTENT: the Commission proposes that the Council decide to authorise, on behalf of the Union, the signature of the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for in the Association Agreement, subject to its conclusion.

The value of imports into the EU under the two tariff lines CN 0207 13 70 and 0207 14 70 in the last full calendar years 2016 and 2017 reached a combined import value of EUR 43.9 million. This is 23.9% of total EU poultry meat imports from Ukraine in 2016 and 2017 and represents 1.1% of total EU poultry meat imports from all third countries in those two calendar years. In 2018 the import value reached EUR 91.4 million.

The Agreement consists of integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ) of currently 18 400 tons and increasing to 20 000 tons in 2021 (Order Number 09.4273) while the size of the TRQ will be increased by 50 000 tons. Imports under tariff lines CN 0207 13 70 and 0207 14 70 exceeding the TRQ would then become subject to Most Favoured Nation duty rate of EUR 100.8/100 kg net weight.

In order to rapidly eliminate the risk of potentially unlimited duty free imports of these poultry cuts the Agreement should be applied provisionally.

2019/06/12
   EC - Preparatory document
Details

PURPOSE: to approve the conclusion, on behalf of the European Union, of the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for in the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

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 Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, entered into force on 1 September 2017.

A new type of poultry cut consists of a traditional breast cap with the humerus bones of the wings attached and can, after minimal transformation in the Union, be marketed in the Union as poultry breast. Unlimited imports of those cuts, of which imports from Ukraine reached 55 500 tons in 2018, therefore risk undermining the conditions under which traditional poultry breast cuts may be imported into the Union under the Association Agreement, in particular the quantitative restrictions in the form of a tariff rate quota. This has the potential to disrupt the delicate balance in the poultry meat market of the EU.

The rapid increase in duty-free imports of this particular piece of poultry meat did not exist and was not foreseeable during the negotiations of the Association Agreement.

On 20 December 2018, the Council authorised the Commission to open negotiations with Ukraine with a view to find a solution by amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement. The negotiations were successfully concluded on 19 March 2019.

CONTENT: the Commission proposes that the Council decide to approve, on behalf of the Union, the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for in the Association Agreement.

The agreement consists of integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ) of currently 18 400 tons and increasing to 20 000 tons in 2021 (Order Number 09.4273) while the size of the TRQ will be increased by 50 000 tons. Imports under tariff lines CN 0207 13 70 and 0207 14 70 exceeding the TRQ would then become subject to Most Favoured Nation duty rate of EUR 100.8/100 kg net weight.

The proposal establishes a stable and predictable trading environment for poultry meat and ensures reasonable and measured increase in trade with Ukraine.

2019/06/12
   Preparatory document

Documents

Activities

AmendmentsDossier
2 2019/0132(NLE)
2019/10/14 AGRI 2 amendments...
source: 642.868

History

(these mark the time of scraping, not the official date of the change)

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  • AGREEMENT in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.
  • Negotiations between the European Union and Ukraine on trade preferences for poultrymeat and poultrymeat preparations were concluded on 19 March 2019.
  • The agreement consists of integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ) of currently 18 400 tons and increasing to 20 000 tons in 2021 (Order Number 09.4273) while the size of the TRQ will be increased by 50 000 tons. Imports under tariff lines CN 0207 13 70 and 0207 14 70 exceeding the TRQ would then become subject to Most Favoured Nation duty rate of EUR 100.8/100 kg net weight.
  • Pending its entry into force, the Agreement shall be applied provisionally from the first day of the month following the date of receipt by the Depositary of: (i) the Union's notification on the completion of the procedures necessary for this purpose; and (ii) Ukraine’s notification of the completion of ratification in accordance with its procedures and applicable legislation, whichever is later, pending its entry into force.
docs/3
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  • PURPOSE: to conclude, on behalf of the Union, the Agreement in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.
  • 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 Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, entered into force on 1 September 2017.
  • A new type of poultry cut consists of a traditional breast cap with the humerus bones of the wings attached and can, after minimal transformation in the Union, be marketed in the Union as poultry breast. Unlimited imports of those cuts, of which imports from Ukraine reached 55 500 tons in 2018, therefore risk undermining the conditions under which traditional poultry breast cuts may be imported into the Union under the Association Agreement, in particular the quantitative restrictions in the form of a tariff rate quota.
  • On 20 December 2018, the Council authorised the Commission to open negotiations with Ukraine with a view to finding a solution by amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement. Those negotiations were successfully concluded on 19 March 2019.
  • CONTENT: the purpose of the draft Council Decision is to approve, on behalf of the Union, the Agreement in the form of an exchange of letters between the European Union and Ukraine amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.
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      • PURPOSE: signature, on behalf of the European Union, and provisional application of the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part
      • PROPOSED ACT: Council Decision.
      • BACKGROUND: the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, entered into force on 1 September 2017.
      • From mid-2016, a new type of poultry cut started to be imported from the Ukraine to the EU in increasing quantities. This novel cut consists of a traditional breast cap with the humerus bones of the wings attached, the latter making up for a very small part of the total weight of the cut. After a minimal transformation, this cut can be marketed in the EU as poultry breast.
      • As such imports are not subject to quantitative restrictions they have the potential, if their trade regime remains unchanged, to undermine the protection provided for poultry breast in the form of TRQs under the Association Agreement and consequently to disrupt the delicate balance in the poultry meat market of the EU. It is therefore urgent to find a solution to this situation. The Commission has received numerous written questions from Members of the European Parliament and the European poultry meat sector asking for action in order to find a solution.
      • On 20 December 2018, the Council authorised the Commission to open negotiations with Ukraine with a view to amend the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement. The negotiations were successfully concluded on 19 March 2019.
      • CONTENT: the Commission proposes that the Council decide to authorise, on behalf of the Union, the signature of the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for in the Association Agreement, subject to its conclusion.
      • The value of imports into the EU under the two tariff lines CN 0207 13 70 and 0207 14 70 in the last full calendar years 2016 and 2017 reached a combined import value of EUR 43.9 million. This is 23.9% of total EU poultry meat imports from Ukraine in 2016 and 2017 and represents 1.1% of total EU poultry meat imports from all third countries in those two calendar years. In 2018 the import value reached EUR 91.4 million.
      • The Agreement consists of integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ) of currently 18 400 tons and increasing to 20 000 tons in 2021 (Order Number 09.4273) while the size of the TRQ will be increased by 50 000 tons. Imports under tariff lines CN 0207 13 70 and 0207 14 70 exceeding the TRQ would then become subject to Most Favoured Nation duty rate of EUR 100.8/100 kg net weight.
      • In order to rapidly eliminate the risk of potentially unlimited duty free imports of these poultry cuts the Agreement should be applied provisionally.
      docs/1
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      events/0/summary
      • PURPOSE: to approve the conclusion, on behalf of the European Union, of the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for in the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.
      • 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 Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, entered into force on 1 September 2017.
      • A new type of poultry cut consists of a traditional breast cap with the humerus bones of the wings attached and can, after minimal transformation in the Union, be marketed in the Union as poultry breast. Unlimited imports of those cuts, of which imports from Ukraine reached 55 500 tons in 2018, therefore risk undermining the conditions under which traditional poultry breast cuts may be imported into the Union under the Association Agreement, in particular the quantitative restrictions in the form of a tariff rate quota. This has the potential to disrupt the delicate balance in the poultry meat market of the EU.
      • The rapid increase in duty-free imports of this particular piece of poultry meat did not exist and was not foreseeable during the negotiations of the Association Agreement.
      • On 20 December 2018, the Council authorised the Commission to open negotiations with Ukraine with a view to find a solution by amending the trade preferences for poultry meat and poultry meat preparations provided for by the Association Agreement. The negotiations were successfully concluded on 19 March 2019.
      • CONTENT: the Commission proposes that the Council decide to approve, on behalf of the Union, the Agreement in the form of an Exchange of Letters between the European Union and Ukraine amending the trade preferences for poultrymeat and poultrymeat preparations provided for in the Association Agreement.
      • The agreement consists of integrating the two tariff lines CN 0207 13 70 and 0207 14 70 into the existing tariff rate quota (TRQ) of currently 18 400 tons and increasing to 20 000 tons in 2021 (Order Number 09.4273) while the size of the TRQ will be increased by 50 000 tons. Imports under tariff lines CN 0207 13 70 and 0207 14 70 exceeding the TRQ would then become subject to Most Favoured Nation duty rate of EUR 100.8/100 kg net weight.
      • The proposal establishes a stable and predictable trading environment for poultry meat and ensures reasonable and measured increase in trade with Ukraine.
      commission
      • body: EC dg: Trade commissioner: MALMSTRÖM Cecilia
      committees
      • type: Responsible Committee body: EP committee_full: International Trade committee: INTA associated: False date:
      • type: Committee Opinion body: EP committee_full: Agriculture and Rural Development committee: AGRI associated: False date:
      docs
      • date: 2019-06-12T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2019/0267/COM_COM(2019)0267_EN.pdf title: COM(2019)0267 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2019&nu_doc=0267 title: EUR-Lex type: Legislative proposal body: EC
      • date: 2019-06-12T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2019/0268/COM_COM(2019)0268_EN.pdf title: COM(2019)0268 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2019&nu_doc=0268 title: EUR-Lex type: Document attached to the procedure body: EC
      events
      • date: 2019-06-12T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2019/0267/COM_COM(2019)0267_EN.pdf title: COM(2019)0267 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2019&nu_doc=0267 title: EUR-Lex
      procedure
      reference
      2019/0132(NLE)
      title
      EU/Euratom/Ukraine Association Agreement: trade preferences for poultry meat and poultry meat preparations
      subject
      geographical_area
      Ukraine
      type
      NLE - Non-legislative enactments
      subtype
      Consent by Parliament
      legal_basis
      stage_reached
      Preparatory phase in Parliament