Explanatory Memorandum to COM(2021)387 - EU position within the Association Council EU-Jordan as regards an amendment to Protocol 3 to that Agreement concerning the definition of the concept of 'originating goods' and methods of administrative cooperation - Main contents
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| dossier | COM(2021)387 - EU position within the Association Council EU-Jordan as regards an amendment to Protocol 3 to that Agreement concerning the ... |
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| source | COM(2021)387  |
| date | 13-07-2021 |
1. Subject matter of the proposal
This proposal concerns the decision establishing the position to be taken on the Union's behalf in the Association Council established by the Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part 1 , in connection with the envisaged adoption of a Decision of the Association Council amending the provisions of Protocol 3 to the Euro-Mediterranean Agreement, concerning the definition of the concept of originating products and the list of working or processing required to be carried out on non-originating materials in order for certain categories of products, manufactured in the territory of the Hashemite Kingdom of Jordan, and connected with generating employment for Syrian refugees and Jordanians, to obtain originating status.
2. Context of the proposal
2.1.The Euro-Mediterranean Agreement
The Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part (‘the Agreement’) aims to establish the conditions for the gradual liberalisation of trade in goods, services and capital. The Agreement entered into force on 1 May 2002.
2.2.The Association Council
The Association Council established according to the provisions of Article 89 of the Agreement may decide to amend the provisions of Protocol 3of the Agreement concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation (Article 4 of Protocol 3). The Association Council adopts its decisions and recommendations by agreement between the two Parties.
2.3.The envisaged act of the Association Council
On its next meeting or by exchange of letters, the Association Council is to adopt a Decision to amend the provisions of Protocol 3 concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation (‘the envisaged act’).
The purpose of the envisaged act is to maintain the terms of the Decision 1/2016 of the EU-Jordan Association Committee of 19 July 2016 2 and Decision 1/2018 of the EU-Jordan Association Committee of 4 December 2018 3 , amending the provisions of Protocol 3 to the Agreement concerning the definition of the concept of originating products’ and the list of working or processing required to be carried out on non-originating materials in order for certain categories of products, manufactured in the territory of the Hashemite Kingdom of Jordan, and connected with generating employment for Syrian refugees and Jordanians, to obtain originating status .
The envisaged act will become binding on the parties in accordance with Article 91, paragraph 2 of the Association Agreement.
3. Position to be taken on the Union's behalf
Decision 1/2016 of the EU-Jordan Association Committee of 19 July 2016 and Decision 1/2018 of the EU-Jordan Association Committee of 4 December 2018 introduced a simplified rules of origin regime envisaged to be applicable for 10 years (until 31 December 2030).
Such simplified regime covers products in 52 chapters of the Harmonised System. These represent a wide range of manufactured products and include items that Jordan currently exports in small volumes to the EU and others where currently there is no trade. The alternative rules of origin made available under this scheme are those applied by the EU to imports from Least-Developed Countries (LDCs) under the EU's Everything But Arms (EBA) initiative.
An amendment of Protocol 3 is necessary to maintain this simplified rules of origin regime by linking these rules to the new applicable rules of origin of Protocol 3 as last amended by the Decision 1/2021 of the EU-Jordan Association Council 4 .
The position to be taken by the EU within the Association Council should be established by the Council.
The proposed amendment is technical in nature and only aimed at enabling the continuation of the above-mentioned simplified rules of origin regime, as initially foreseen. Therefore, it does not require an impact assessment.
4. Legal basis
4.1.Procedural legal basis
4.1.1.Principles
Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’
The concept of ‘acts having legal effects’ includes acts that have legal effects by virtue of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’ 5 .
4.1.2.Application to the present case
The Association Council is a body set up by an agreement, namely the Euro-Mediterranean Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part.
The act which the Association Council is called upon to adopt constitutes an act having legal effects. The envisaged act will be binding under international law in accordance with Article 91, paragraph 2 of the Association Agreement.
The envisaged act does not supplement or amend the institutional framework of the Agreement.
Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.
4.2.Substantive legal basis
4.2.1.Principles
The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the Union’s behalf.
4.2.2.Application to the present case
The main objective and content of the envisaged act relate to the common commercial policy.
Therefore, the substantive legal basis of the proposed decision is the first subparagraph of Article 207 i TFEU.
4.3.Conclusion
The legal basis of the proposed decision should be the first subparagraph of Article 207 i, in conjunction with Article 218(9) TFEU.
5. Budgetary Implications
There is no additional budgetary implications as this proposed amendment to Protocol 3 on rules of origin ensures the continuation of the Jordan simplified rules of origin scheme established by Decision 1/2016 of the EU-Jordan Association Committee of 19 July 2016 and Decision 1/2018 of the EU-Jordan Association Committee of 4 December 2018 as alternative set of rules of origin. This simplified rules of origin regime was envisaged to be applicable for 10 years (until 31/12/2030).
6. Publication of the envisaged act
As the act of the EU-Jordan Association Council will amend Protocol 3 of the EU-Jordan Association Agreement concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation, as amended by Decision n°1/2021 of the EU-Jordan Association Council of 15 April 2021, it is appropriate to publish it in the Official Journal of the European Union after its adoption.