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DRAFT RECOMMENDATION (12361/2023 – C9XXXX/2023 – 2023/0296(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 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

INTA-PR-757170

Committee on International Trade · Rapporteur: Marco Campomenosi

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The rapporteur's draft report asks Parliament to consent to an EU-Egypt agreement in the form of an exchange of letters under Article XXVIII of the GATT 1994. The agreement changes the EU's tariff rate quota concessions in its WTO schedule CLXXV following the UK's withdrawal from the EU. Egypt has negotiating rights for one erga omnes tariff rate quota on cucumbers, and a change in volume was agreed for it. The EU27 share of that quota was revised to 647 tonnes, using the 2013 to 2016 reference period. 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 is asked to give its consent to the conclusion of the agreement between the EU and Egypt.
  2. The agreement modifies concessions on all tariff rate quotas in the EU Schedule CLXXV after the UK's withdrawal from the EU.
  3. The negotiations follow Article XXVIII of the GATT 1994 and were launched by the EU in 2018 with several WTO members in Geneva.
  4. The EU and the UK agreed in 2017 on a joint approach to apportion the 143 EU agricultural, fish and industrial WTO tariff rate quotas.
  5. Each quota's existing volume is fully maintained but split between the EU27 and the UK.
  6. The split is based on trade flows into the EU27 and the UK during the 2013 to 2015 reference period.
  7. Regulation (EU) 2019/216 describes the methodology and lets the Commission amend apportionment shares with pertinent information.
  8. Egypt has negotiating rights for one erga omnes tariff rate quota on cucumbers, and a change in volume was agreed for it.
  9. The EU27 share of the cucumber quota was revised to 647 tonnes, taking into account the 2013 to 2016 reference period.
  10. The agreement was initialled on 22 May 2023 in Geneva.
  11. Parliament's consent is needed under Article 218(6) TFEU for the Council to conclude the agreement and for it to come into force.
  12. The rapporteur recommends consent without prejudice to Parliament's right of continuous scrutiny.

Who is affected

  • EU importers and exporters of the products covered by the tariff rate quotas, especially cucumbers.
  • Egypt, which holds negotiating rights for one erga omnes tariff rate quota on cucumbers.
  • 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 are covered by the apportionment.
  • The reference period for the applied methodology is 3 years, from 2013 to 2015.
  • The EU27 share of the cucumber tariff rate quota was revised to 647 tonnes.
  • The revised cucumber quota share takes into account the reference period from 2013 to 2016.
  • The agreement was initialled on 22 May 2023 in Geneva.

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.