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DRAFT RECOMMENDATION (COM(2021)0122 – C90000/2021 – 2021/0064(NLE))

On the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Agreement in the form of an exchange of letters between the Union and the United States of America 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

INTA-PR-691079

Committee on International Trade · Rapporteur: Bernd Lange

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This is a draft report by the Committee on International Trade on a proposed Council decision to conclude an EU–United States agreement on modifying tariff rate quotas in the EU's WTO schedule after the UK's withdrawal. The agreement follows Article XXVIII of the GATT 1994 and splits the existing volume of 143 EU tariff rate quotas between the EU27 and the UK, based on 2013–2015 trade flows. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement.

Committee position. The rapporteur recommends that Parliament give its consent to the conclusion of the agreement, without prejudice to its democratic right of continuous scrutiny.

Key points

  1. Parliament gives its consent to the conclusion of the agreement.
  2. The agreement modifies concessions on all tariff rate quotas in the EU Schedule CLXXV following the UK's withdrawal from the EU.
  3. The EU launched negotiations under Article XXVIII of the GATT 1994 with WTO members, including the United States, in October 2018.
  4. The negotiations apply a joint EU–UK approach from 2017 to apportion the quantitative commitments for 143 EU agricultural, fish and industrial tariff rate quotas.
  5. The existing volume of each tariff rate quota is fully maintained but split between the EU27 and the UK.
  6. The apportionment is based on trade flows into the EU27 and the UK during a three-year reference period from 2013 to 2015.
  7. Regulation (EU) 2019/216 empowers the Commission to amend apportionment shares based on information from Article XXVIII negotiations or other sources.
  8. The United States accepted the EU's proposed apportioned volumes for most tariff rate quotas, with changes agreed for some quotas.
  9. The EU27 share of the United States and Canada's country-specific beef tariff rate quota will be revised and the in-quota rate for the erga omnes beef tariff rate quota will be reduced.
  10. The agreement was initialled on 5 March 2021 in Geneva.
  11. Regulation (EU) 2019/216 and Commission Implementing Regulations (EU) 2020/761 and (EU) 2020/1988 will be amended to reflect the amended tariff rate quota volumes.
  12. Parliament's swift consent is needed for the Council to adopt the decision concluding the agreement and for it to come into force in due time.

Who is affected

  • EU agricultural, fish and industrial exporters and importers, as the agreement modifies tariff rate quotas for these sectors.
  • The United States, as a WTO member that negotiated and accepted the apportioned tariff rate quota volumes.
  • The United Kingdom, as its withdrawal from the EU led to the apportionment of tariff rate quotas between the EU27 and the UK.

Figures and deadlines

  • 143 EU agricultural, fish and industrial WTO tariff rate quotas are apportioned.
  • The reference period for trade flows is 3 years from 2013 to 2015.
  • The agreement was initialled on 5 March 2021 in Geneva.

Legal basis: Article 207(4) and Article 218(6), second subparagraph, point (a), of the Treaty on the Functioning of the European Union.