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DRAFT RECOMMENDATION (10844/2023 – C90000/2023 – 2023/0183(NLE))

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 People`s Republic of China 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-751898

Committee on International Trade · Rapporteur: Iuliu Winkler

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This is a draft report by the Committee on International Trade on a draft Council decision to conclude an EU-China agreement on modifying tariff rate quotas in the EU's WTO schedule after the UK's withdrawal. The rapporteur recommends that Parliament give its consent to the agreement, which is needed for the Council to conclude it and for it to enter into force. The agreement follows Article XXVIII of the GATT 1994 and apportions the existing volume of 143 EU tariff rate quotas between the EU27 and the UK, based on trade flows from 2013 to 2015. China has negotiating rights for 32 tariff rate quotas and consultation rights for 11; it accepted most EU proposed volumes, with changes agreed for garlic and processed poultry meat, and accepted modifications already agreed with the USA and Brazil for 8 others.

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 China, in October 2018.
  4. The negotiations apply a joint EU-UK approach to apportion the quantitative commitments in the EU28 WTO schedule for 143 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 reference period of 3 years, from 2013 to 2015.
  7. Regulation (EU) 2019/216 describes the agreed methodology and empowers the Commission to amend apportionment shares based on pertinent information.
  8. China has negotiating rights for 32 tariff rate quotas and consultation rights for 11.
  9. China accepted the original EU proposed apportioned volumes for most tariff rate quotas, except for 10.
  10. Changes of volumes were agreed for the 2 tariff rate quotas concerning garlic and processed poultry meat.
  11. For the 8 other tariff rate quotas, China accepts the modifications already agreed between the EU and other WTO partners, specifically the USA and Brazil.
  12. Parliament's consent is required under Article 218(6) TFEU for the Council to adopt the decision concluding the agreement and for it to enter into force.

Who is affected

  • EU agricultural, fish and industrial sectors covered by the 143 tariff rate quotas.
  • China, which has negotiating rights for 32 tariff rate quotas and consultation rights for 11.
  • The EU27 and the UK, between which the tariff rate quota volumes are split.

Figures and deadlines

  • 143 EU agricultural, fish and industrial WTO tariff rate quotas.
  • Reference period of 3 years, from 2013 to 2015.
  • 32 tariff rate quotas for which China has negotiating rights.
  • 11 tariff rate quotas for which China has consultation rights.
  • 10 tariff rate quotas where China did not accept the original EU proposed apportioned volumes.
  • 2 tariff rate quotas concerning garlic and processed poultry meat where changes of volumes were agreed.
  • 8 other tariff rate quotas where China accepts modifications already agreed with the USA and Brazil.

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