The Committee on international trade adopted the report by Marco CAMPOMENOSI (ID, IT) on the draft Council decision on the conclusion, on behalf of the Union, of the Agreement in the form of an Exchange of Letters between the European Union and the Arab Republic of Egypt pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions on all the tariff rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom's withdrawal from the European Union.

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

In 2018, the EU formally launched the negotiations process under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) of 1994 with a number of WTO Members in Geneva.

The underlying principle of the negotiations is a ‘joint approach’ developed between the EU and the UK back in 2017 on how to ‘apportion’ the quantitative commitments contained in the EU28 WTO schedule for the 143 EU agricultural, fish and industrial WTO tariff rate quotas (TRQ).The basis of this approach was that the existing volume of each TRQ would be fully maintained in the future, but split across two separate customs territories: the EU27 and the UK.

The Arab Republic of Egypt has negotiating rights for one erga omnes TRQ on cucumbers. A change in volume has been agreed for this TRQ. The EU27 share had been revised to 647 tonnes, taking into account the reference period from 2013 to 2016.

Negotiations with Egypt resulted in an Agreement in the form of an Exchange of Letters that was initialled on 22 May 2023 in Geneva.

PURPOSE: to conclude, on behalf of the Union, the Agreement in the form of an Exchange of Letters between the European Union and the Arab Republic of Egypt pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions on all the tariff rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom’s withdrawal from the European Union.

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: in 2018, the European Union officially launched the negotiation process under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 with several WTO members in Geneva.

The Arab Republic of Egypt has negotiating rights for an erga omnes quota on cucumbers. An agreement has been reached to modify the volume of this tariff quota.

Negotiations with Egypt resulted in an agreement in the form of an exchange of letters, which was initialled in Geneva on 22 May 2023.

CONTENT: the draft Council Decision seeks to approve, on behalf of the Union, the Agreement in the form of an Exchange of Letters between the European Union and the Arab Republic of Egypt pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions on all the tariff rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom’s withdrawal from the European Union.

The objective of the Agreement is to provide, pursuant to Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994, for the apportionment of the tariff rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom’s withdrawal from the Union.

On the conclusion of the negotiations, the Arab Republic of Egypt and the European Union agreed on the following:

- with respect to tariff rate quota 048 (cucumbers, fresh or chilled, from 1 November to 15 May), Egypt and the European Union agree to the following change to the scheduled commitment: the European Union's volume of this erga omnes quota shall be adjusted to 647 tonnes ;

- with respect to tariff rate quota 048, the European Union will acknowledge Egypt's initial negotiating right;

- the European Union and Egypt acknowledge that the European Union is continuing to conduct negotiations and consultations with other WTO Members holding negotiating or consultation rights under Article XXVIII of the GATT 1994 as a consequence of the United Kingdom's withdrawal from the Union as communicated to WTO Members. As a result of those negotiations and consultations, the European Union may consider a change to the volume set out above for tariff rate quota 048. In the event of such a change, the European Union shall consult Egypt with a view to seeking a mutually satisfactory outcome before proceeding to any such change.