Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Transcription

1 EUROPEAN COMMISSION Brussels, COM(2018) 312 final 2018/0158 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the apportionment of tariff rate quotas included in the WTO schedule of the Union following the withdrawal of the United Kingdom from the Union and amending Council Regulation (EC) No 32/2000 EN EN

2 1. CONTEXT OF THE PROPOSAL EXPLANATORY MEMORANDUM Reasons for and objectives of the proposal On 29 March 2017, the Government of the United Kingdom (UK) notified the European Council of the UK s intention to withdraw from the European Union (EU) of which it is currently a Member State. It is anticipated that the UK will cease to be a Member State of the EU as from 30 March The UK's withdrawal from the EU has implications beyond the bilateral relationship between the EU and the UK, in particular with regard to their commitments under the Agreement Establishing the World Trade Organization (WTO). Both the EU and the UK are original Members of the WTO. When the European Community accepted the WTO Agreement and the Multilateral Trade Agreements in 1994, the schedule of concessions and commitments that was annexed to the General Agreement on Tariffs and Trade 1994 (GATT 1994) for the European Communities (the EU's WTO schedule) was thereby simultaneously annexed for the UK. The EU s schedule therefore contain commitments applicable also to the UK in its capacity as a WTO Member. As far as the EU is concerned, its concessions for goods will remain applicable to its territory, but the EU's existing quantitative commitments notably the Tariff Rate Quotas (TRQs) will require certain adjustments to reflect the UK's withdrawal from the EU. The present quantities of the EU's WTO bound TRQs for agricultural, fish and industrial goods have been established on the basis of the UK being a Member State and forming part of that EU market. These TRQs apply to the EU market as a whole including the UK. It is therefore necessary to reflect the fact that the EU's WTO schedule will no longer apply to the UK after its withdrawal from the EU or, at the latest, after 31 December 2020 should the transitional arrangements agreed between the negotiators of the EU and of the UK as part of a Withdrawal Agreement enter into force. The adjustment of the EU's WTO bound TRQs entails an apportionment of the existing quantities between the UK and the EU to become effective on the date the UK is no longer covered by the EU's WTO schedule. In the interest of maintaining clarity and predictability in the multilateral trading system, the EU and the UK sent a joint letter to the whole WTO membership on 11 October 2017 setting out the main rationale and principles envisaged for this apportionment. Subsequently the EU and the UK have been actively engaging with their main trading partners in the WTO on this matter in an open and transparent manner. In line with Article XXVIII of the GATT 1994, the EU will need to conduct negotiations with certain WTO Members affected in order to modify the EU WTO schedule where it contains TRQ volumes, by apportioning these TRQs. To this end the Commission is submitting in parallel to the Council a recommendation, accompanied by draft negotiating directives, to authorise the Commission to initiate negotiations with affected WTO Members. Negotiations will proceed with the relevant WTO Members who have been identified as having relevant market access interests as set out in Article XXVIII of the GATT 1994 (having so-called principal or substantial supplying interest or holding an initial negotiating right) under the EN 1 EN

3 individual TRQs. The UK is expected to undertake the necessary procedures with a view to setting out its own schedule of concessions and commitments annexed to the GATT 1994 including the apportioned quantitative commitments. Given the time frame in which these negotiations will need to be conducted, it cannot be excluded that some of these negotiations with individual WTO Members under Article XXVIII of the GATT 1994 regarding one or more TRQs will not be concluded by agreement within the necessary time limits before the UK is no longer covered under the EU's WTO schedule. It is therefore necessary to ensure that, in the absence of such agreement, the EU can nevertheless proceed with the apportionment of the TRQs by modifying the WTO tariff concessions and that the Commission is given the necessary powers to consequently amend the relevant EU provisions on the opening and implementation of the relevant TRQs. In order to ensure compatibility of this exercise with the EU's obligations under the WTO Agreement and in particular Article XXVIII of the GATT 1994, this apportionment should be based on the existing trade flows under each TRQ for a recent representative time period. A consistent approach to all TRQs, inter alia with respect to data and methodology, should be followed. Importantly, the existing overall levels of market access to the EU and UK available to other WTO Members should be maintained in line with paragraph 2 of Article XXVIII of the GATT The Commission has used a clear and objective methodology, which was agreed jointly with the UK, in proposing an apportionment of the TRQs concerned. In a first step the UK usage share for each individual TRQ was established. The usage share (%) is the UK share of total EU imports under the TRQ over a recent representative three year period ( ). In a second step this usage share was then applied to the entire scheduled TRQ volume to arrive at the UK share of a given TRQ. The EU share consists of the remainder of the TRQ in question. This means that the total volume of a given TRQ is not changed (i.e. EU27 volume = current EU28 volume UK volume). The underlying data was extracted from the Quota2 database for TRQs administered by DG TAXUD and from the Agricultural Markets Information System ( AMIS ) database for TRQs administered by DG AGRI. In those cases where no trade was observed for a specific TRQ over the reference period, two alternative approaches were pursued to establish the UK usage share. In those cases where there is another TRQ with the exact same product definition the usage share of that identical TRQ was applied to the TRQ without observed trade over the reference period. In those cases where there is no TRQ with an identical product description the formula to calculate the usage share was applied to the EU imports in the corresponding tariff lines outside of the TRQ. An agreement between the EU and New Zealand under Article XXIV.6 GATT subsequent to Croatia's accession to the EU was signed on 13 March 2018 and is currently still awaiting the consent of the European Parliament before its conclusion by the Council. This agreement would increase the TRQ for "Meat of sheep or goats, fresh, chilled or frozen" allocated to New Zealand (order ) by 135 t so that the quantity would become 228,389 t and the corresponding future EU-27 quantity would be 114,184 t. EN 2 EN

4 Consistency with existing policy provisions in the policy area This initiative is in line with the EUs ongoing actions to prepare for the withdrawal of the UK from the EU in an orderly manner, notably the joint EU-UK letter to the WTO Membership of 11 October Consistency with other Union policies As above. 2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY Legal basis Article 207(2) TFEU. Subsidiarity (for non-exclusive competence) The common commercial policy is an exclusive competence of the Union. Proportionality The envisaged measure is the only way of ensuring the desired result. Choice of the instrument A legislative act is required, as existing legislation does not provide for an empowerment to the Commission to adopt the proposed measures in the event that no agreement is reached in the WTO negotiations with individual WTO Members within the time limit of the actual UK withdrawal. 3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS Ex-post evaluations/fitness checks of existing legislation Not applicable. Stakeholder consultations Not applicable. Collection and use of expertise Not applicable. Impact assessment Not applicable. Regulatory fitness and simplification Not applicable. Fundamental rights The proposal has no impact on fundamental rights. 4. BUDGETARY IMPLICATIONS Not applicable. EN 3 EN

5 5. OTHER ELEMENTS Implementation plans and monitoring, evaluation and reporting arrangements Not applicable. Explanatory documents (for directives) Not applicable. Detailed explanation of the specific provisions of the proposal Article 1 provides that TRQs figuring in the EU s WTO schedule of concessions and commitments will be apportioned between the EU and the UK. It refers to the Annex (part A and part B) for a detailed list of the TRQs and the respective EU27 apportioned amount. Article 2 provides that Part B of the Annex shall replace Annex 1 to Regulation (EC) No 32/2000, where these TRQs are currently listed. Article 3 gives the Commission an empowerment to amend the Annex to this proposed Regulation and Annex I to Regulation (EC) No 32/2000, in order to change the apportionment to cover for agreements concluded with trading partners in the meantime, for the case that following negotiations with trading partners it becomes evident that the mathematical application of the method used for the apportionment is not appropriate for a specific TRQ or for the case that other pertinent information relating to a specific TRQ comes to the knowledge of the Commission at a later stage. Article 4 provides for the modalities of use of the empowerment. Finally, Article 5 provides for the application of the Regulation, which should start on the date on which Union law ceases to apply to the UK EN 4 EN

6 Proposal for a 2018/0158 (COD) REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the apportionment of tariff rate quotas included in the WTO schedule of the Union following the withdrawal of the United Kingdom from the Union and amending Council Regulation (EC) No 32/2000 THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE UNION, Having regard to the Treaty on the Functioning of the Union, and in particular Article 207(2) thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Acting in accordance with the ordinary legislative procedure, Whereas: (1) On 29 March 2017, the Government of the United Kingdom notified the European Council in accordance with Article 50 of the Treaty on European Union of the United Kingdom s intention to withdraw from the Union. Following this notification, negotiations have started, and are ongoing, between the United Kingdom and the Union in view of the conclusion of an agreement on the withdrawal of the United Kingdom. (2) The United Kingdom's withdrawal from the Union will have effects on the relations of the United Kingdom and the Union with third parties, in particular in the context of the World Trade Organization (WTO) of which both are original members. (3) By a letter of 11 October 2017 the Union and the United Kingdom informed other WTO Members that it was their intention that, upon leaving the Union, the United Kingdom would replicate to the extent possible its current obligations as a Member State of the Union in its new, separate, schedule of concessions and commitments on trade in goods. However, as in relation to quantitative commitments replication is not an appropriate method, the Union and the United Kingdom informed other WTO Members of their intention to ensure that other WTO Members' current market access levels would be maintained by apportioning the Union's tariff rate quotas between them. (4) In line with the WTO rules, such apportionment of tariff rate quotas that are part of the Union s schedule of concessions and commitments will have to occur according to Article XXVIII of the General Agreement on Tariffs and Trade 1994 ( GATT 1994 ). The Union will, therefore, following completion of preliminary contacts, engage in negotiations with WTO Members having a principal or substantial supplying interest or holding an initial negotiating right in relation to each of these tariff rate quotas. (5) However, given the time limits imposed on this process by the negotiations on the United Kingdom s withdrawal from the Union, it is possible that agreements may not be concluded with all WTO Members concerned in relation to all of the tariff rate EN 5 EN

7 quotas on the date Union's WTO schedule of concessions and commitments on trade in goods cease to apply to the United Kingdom. In view of the need to ensure legal certainty and the continuous smooth operation of imports under the tariff rate quotas to the Union and the United Kingdom it is necessary for the Union to be able to proceed unilaterally to the apportionment of the tariff rate quotas. The methodology used should be in line with the requirements of Article XXVIII of the GATT (6) The following methodology should therefore be used: in a first step the United Kingdom s usage share for each individual tariff rate quota should be established. The usage share, expressed as a percentage, is the United Kingdom s share of total Union imports under the tariff rate quota over a recent representative three year period. This usage share should then be applied to the entire scheduled tariff rate quota volume to arrive at the United Kingdom s share of a given tariff rate quota. The Union s share would then consist of the remainder of the tariff rate quota in question. This means the total volume of a given tariff rate quota is not changed (that is to sayeu-27 volume = current EU-28 volume United Kingdom volume). The underlying data should be extracted from the relevant Commission databases. (7) In those cases where no trade is observed for a specific tariff rate quota over the reference period, two alternative approaches should be pursued to establish the United Kingdom s usage share. In those cases where there is another tariff rate quota with the identical product definition, the usage share of that identical tariff rate quota should be applied to the tariff rate quota without observed trade over the reference period. In those cases where there is no tariff rate quota with an identical product definition the formula to calculate the usage share should be applied to Union imports in the corresponding tariff lines outside of the tariff rate quota. (8) For the agricultural TRQs concerned, Articles of Regulation (EU) No 1308/ provides the necessary legal basis for administration of the TRQs once apportioned by the present Regulation. For the TRQs covering fisheries, industrial and certain processed agricultural products, administration is carried out pursuant to Regulation (EC) No 32/ The TRQ quantities concerned are set out in Annex I to that Regulation, which should therefore be replaced by the quantities set out in Part B of the Annex to the present Regulation. (9) Taking into account that negotiations with affected WTO Members will be taking place simultaneously with the ordinary legislative procedure for the adoption of this Regulation the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to amend the Annex to this Regulation and Annex I to Regulation (EC) No 32/2000 with respect to the quantities of the apportioned tariff rate quotas listed therein, in order to take account of any agreements concluded or of pertinent information that it may receive in the context of these negotiations which would indicate that specific factors that were not previously known require an adjustment to the apportionment of the tariff quotas 1 2 Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, , p. 671) Council Regulation (EC) No 32/2000 of 17 December 1999 opening and providing for the administration of Community tariff quotas bound in GATT and certain other Community tariff quotas and establishing detailed rules for adjusting the quotas, and repealing Council Regulation (EC) No 1808/95 (OJ L 5, , p. 1). EN 6 EN

8 between the Union and the United Kingdom. The same possibility should also be provided where such information becomes available outside such negotiations. (10) This Regulation should apply from the moment that Union's WTO schedule ceases to apply to the United Kingdom given that from that moment both the Union and the United Kingdom need to know what their WTO obligations are. At the present stage of the withdrawal negotiations between the Union and the United Kingdom it is not possible to determine the exact date when this will happen. It should therefore be provided that this Regulation shall apply either from the date provided for in a withdrawal agreement between the Union and the United Kingdom under Article 50 of the Treaty on the European Union or from 30 March 2019, that is two years after the date of the United Kingdom's notification of its intention to withdraw from the Union in accordance with Article 50 of the Treaty on the European Union HAVE ADOPTED THIS REGULATION: Article 1 The tariff rate quotas included in the Union s schedule of concessions and commitments annexed to the General Agreement on Tariffs and Trade 1994 shall be apportioned between the Union and the United Kingdom of Great Britain and Northern Ireland ( the United Kingdom ) as follows: (a) (b) as regards tariff rate quotas for agricultural products, the Union s portion shall be as set out in Part A of the Annex to this Regulation; as regards tariff rate quotas for non-agricultural products, the Union s portion shall be as set out in Part B of the Annex to this Regulation. Article 2 Annex I to Council Regulation (EC) No 32/2000 shall be replaced by the text in Part B of the Annex to this Regulation. Article 3 The Commission is empowered to adopt delegated acts in accordance with Article 4 to amend the Annex to this Regulation and Annex I to Regulation (EC) No 32/2000 in order to take account of the following: (a) (b) any international agreement concluded by the Union under Article XXVIII of the General Agreement on Tariffs and Trade 1994 concerning the tariff rate quotas referred in those Annexes; and pertinent information that it may receive either in the context of negotiations under Article XXVIII of the General Agreement on Tariffs and Trade 1994 or through other means. Article 4 (1) The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. (2) The power to adopt delegated acts referred to in Article 3 shall be conferred on the Commission for a period of [4] years from the date of entry into force of this Regulation. EN 7 EN

9 (3) The delegation of power referred to in Article 3 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. (4) Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April (5) As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. (6) A delegated act adopted pursuant to Article 3 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of [two months] of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by [one month] at the initiative of the European Parliament or of the Council. Article 4 This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the Union. Articles 1 and 2 shall apply from the date on which Union law ceases to apply to the United Kingdom in accordance with an agreement concluded by the Union and the United Kingdom pursuant to Article 50 of the Treaty on European Union or, in the absence of such an agreement, from 30 March This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the European Parliament The President For the Council The President EN 8 EN

10 EUROPEAN COMMISSION Brussels, COM(2018) 312 final ANNEX ANNEX to the REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the apportionment of tariff rate quotas included in the WTO schedule of the Union following the withdrawal of the United Kingdom from the Union and amending Council Regulation (EC) No 32/2000 EN EN

11 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size ANNEX Part A Live bovine animals head 710 EO % 710 Live bovine animals head 711 EO % 711 Live bovine animals head 24,070 EO % 24,070 Meat of bovine animals, fresh, chilled or frozen Edible offal of bovine animals, fresh, chilled or frozen High quality meat with or without bone Boneless high quality meat of bovine animals, fresh or chilled High quality meat with or without bone Boneless high quilati meat of bovine animals, fresh or chilled Meat of bovine animals, fresh, chilled or frozen Edible offal of bovine animals, fresh, chilled or frozen t (product t (product t (product t (product t (product t (product 7,150 AUS % 2,481 17,000 ARG % 16,936 12, % 12,453 2,300 URY % 2,022 4, % 3,584 11,500 USA / CAN % 11,481 High quality meat of bovine animals, fresh, chilled or frozen t PAR % 711 High quality meat of bovine animals, fresh, chilled or frozen t 1,300 NZL % 846 Boneless meat of bovine animals, fresh, chilled or frozen Edible offal of bovine animals, fresh, chilled or frozen Meat of bovine animals, frozen Edible offal of bovine animals, frozen Boneless buffalo meat, frozen Boneless buffalo meat, frozen Boneless buffalo meat, fresh, chilled or frozen t 10,000 BRA % 8,951 t (boneless t (without bone) t (without bone) 54,875 EO % 43,732 2,250 AUS % 1, ARG % For official country codes please refer to: For presentational purposes, the percentage has been rounded to one decimal place. The EU27 TRQ size is, however, calculated based on the exact percentage. EO = erga omnes EN 1 EN

12 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Meat of bovine animals, frozen Edible offal of bovine animals, frozen Meat of bovine animals, frozen Edible offal of bovine animals, frozen Edible offal of bovine animals, frozen Edible offal of bovine animals, frozen Meat of swine, fresh, chilled or frozen: - Carcasses and half-carcasses of domestic swine, fresh, chilled or frozen t (bone-in t (bone-in 63,703 EO EO % 19,676 t 800 OTH % 800 t 700 ARG % 700 t 15,067 EO % 15,067 Meat of swine, fresh, chilled or frozen: - Cuts of domestic swine, fresh, chilled or frozen, with or without bone, excluding tenderloin presented separately Meat of swine, fresh, chilled or frozen: - Cuts of domestic swine, fresh, chilled or frozen, with or without bone, excluding tenderloin presented separately Meat of swine, fresh, chilled or frozen: - Loins of domestic swine and cuts thereof, with bone in, fresh or chilled - Bellies (streaky) of domestic swine and cuts thereof, frozen Meat of swine, fresh, chilled or frozen: - Boneless loins and hams of domestic swine, fresh, chilled or frozen Meat of swine, fresh, chilled or frozen: - Boneless loins and hams of domestic swine, fresh, chilled or frozen t 4,624 CAN % 4,623 t 6,135 EO % 6,133 t 7,000 EO % 7,000 t 35,265 EO % 12,680 t 4,922 US % 1,770 Meat of swine, fresh, chilled or frozen: - Tenderloins of domestic swine, fresh, t 5,000 EO % 3,780 chilled or frozen Prepared or preserved meat of domestic swine t 6,161 EO % 6,161 Sausages, dry or for spreading, uncooked Other sausages Live sheep and goats, other than purebred breeding animals Live sheep and goats, other than purebred breeding animals Live sheep and goats, other than purebred breeding animals t 3,002 EO % 164 t (carcasse t (carcasse t (carcasse 105 OTH % MKD 100% EO % 91 4 OTH = others EN 2 EN

13 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen Meat of sheep or goats, fresh, chilled or frozen t (carcasse t (carcasse t (carcasse t (carcasse t (carcasse t (carcasse t (carcasse t (carcasse t (carcasse t (carcasse 23,000 ARG % 17, ISL % BIH 48.3% ,186 AUS % 3,837 3,000 CHL % 2, GRL % ,254 NZL % 114,116 5,800 URY % 4, OTH % EO % 178 Chicken carcasses, fresh, chilled or frozen t 6,249 EO % 4,054 Chicken cuts, fresh, chilled or frozen t 8,570 EO % 8,253 Boneless cuts of fowls of the species Gallus domesticus, frozen t 2,705 EO % 2,427 Cuts of fowls of the species Gallus domesticus, frozen t 9,598 BRA % 8,308 Cuts of fowls of the species Gallus domesticus, frozen t ,500 EO Cuts of fowls of the species Gallus domesticus, frozen t % 13,471 Turkey meat, fresh, chilled or frozen Cuts of turkeys, frozen Cuts of turkeys, frozen t 1,781 EO % 1,781 t 3,110 BRA % 2,692 t 4,985 EO % 4,253 EN 3 EN

14 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Cuts of turkeys, frozen t Meat and edible offal of poultry, fresh, chilled or frozen t 21,345 USA % 21,345 Salted poultry meat Salted poultry meat Salted poultry meat Prepared turkey meat Prepared turkey meat t 170,807 BRA % 129,930 t 92,610 THA % 68,385 t 828 OTH % 824 t 92,300 BRA % 89,950 t 11,596 OTH % 11,301 Cooked meat of fowls of the species Gallus domesticus t 79,477 BRA % 52,665 Cooked meat of fowls of the species Gallus domesticus t 160,033 THA % 109,441 Cooked meat of fowls of the species Gallus domesticus t 11,443 OTH % 8,471 Processed chicken meat, uncooked, containing 57 % or more by weight of poultry meat or offal Processed chicken meat, uncooked, containing 57 % or more by weight of poultry meat or offal Processed chicken meat, containing 25 % or more but less than 57 % by weight of poultry meat or offal Processed chicken meat, containing 25 % or more but less than 57 % by weight of poultry meat or offal Processed chicken meat, containing 25 % or more but less than 57 % by weight of poultry meat or offal Processed chicken meat, containing less than 25 % by weight of poultry meat or offal Processed chicken meat, containing less than 25 % by weight of poultry meat or offal Processed chicken meat, containing less than 25 % by weight of poultry meat or offal Processed duck, geese, guinea fowl meat, uncooked, containing 57 % or more by weight of poultry meat or offal Processed duck, geese, guinea fowl meat, cooked, containing 57 % or more by weight of poultry meat or offal t 15,800 BRA % 10,969 t 340 OTH % 236 t 62,905 BRA % 59,699 t 14,000 THA % 8,019 t 2,800 OTH % 1,669 t 295 BRA % 163 t 2,100 THA % 1,162 t 470 OTH % 260 t 10 THA % 0 t 13,500 THA % 8,572 EN 4 EN

15 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Processed duck, geese, guinea fowl meat, cooked, containing 57 % or more by weight of poultry meat or offal Processed duck, geese, guinea fowl meat, cooked, containing 25 % or more but less than 57 % by weight of poultry meat or offal Processed duck, geese, guinea fowl meat, cooked, containing 25 % or more but less than 57 % by weight of poultry meat or offal Processed duck, geese, guinea fowl meat, cooked, containing less than 25 % by weight of poultry meat or offal Processed duck, geese, guinea fowl meat, cooked, containing less than 25 % by weight of poultry meat or offal Poultry eggs for consumption, in shell Eggs yolks Bird eggs, not in shell Egg albumin Skimmed-milk powder Butter and other fats and oils derived from milk Butter, at least six weeks old, of a fat content by weight of not less than 80% but less than 85% manufactured directly from milk or cream without the use of stored materials, in a single, selfcontained and uninterrupted process. Butter, at least six weeks old, of a fat content by weight of not less than 80% but less than 85% manufactured directly from milk or cream without the use of stored materials, in a single, selfcontained and uninterrupted process which may involve the cream passing through a stage where the butterfat is concentrated and/or fractionated (the process referred to as "Ammix" and "Spreadable"). Butter, at least six weeks old, of a fat content by weight of not less than 80% but less than 85% manufactured directly from milk or cream without the use of stored materials, in a single, selfcontained and uninterrupted process. Butter, at least six weeks old, of a fat content by weight of not less than 80% but less than 85% manufactured directly from milk or cream without the use of stored materials, in a single, selfcontained and uninterrupted process which may involve the cream passing t 220 OTH % 159 t 600 THA % 300 t 148 OTH % 0 t 600 THA % 278 t 125 OTH % 58 t 135,000 EO % 114,669 t (shell egg equivalent) t (shell egg equivalent) 7,000 EO % 7,000 15,500 EO % 15,500 t 68,537 EO % 68,536 t (in butter equivalent) t 11,360 EO % 11,360 74,693 NZL t NZL % 47,177 EN 5 EN

16 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size through a stage where the butterfat is concentrated and/or fractionated (the process referred to as "Ammix" and "Spreadable"). Cheese and curd: - Pizza cheese, frozen, cut into pieces each weighing not more than 1 g, in containers with a net content of 5 kg or more, of a water content, by weight, of t 5,360 EO % 5, % or more, and a fat content, by weight, in the dry matter of 38 % or more Cheese and curd: - Emmentaler, including processed t 18,438 EO % 18,438 Emmentaler Cheese and curd: - Gruyère, Sbrinz, including processed t 5,413 EO % 5,413 Gruyère Cheese and curd: - Cheese for processing t 20,007 EO % 11,741 Cheese for processing Cheese for processing t 4,000 NZL % 1,670 t 500 AUS % 500 Cheese and curd: - Cheddar t 15,005 EO % 14,941 Cheddar Cheddar Cheddar Other cheeses t 7,000 NZL % 4,361 t 3,711 AUS % 3,711 t 4,000 CAN % 0 t 19,525 EO % 19,525 Potatoes, fresh or chilled, from 1 January to 15 May t 4,295 EO % 4,292 Tomatoes t 472 EO % 464 Garlic Garlic Garlic Garlic t ARG ,147 t ARG t CHN ,225 t CHN % 19, % 40,556 EN 6 EN

17 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Garlic Garlic t OTH ,023 t OTH % 3,711 Carrots and turnips, fresh or chilled t 1,244 EO % 1,192 Cucumbers, fresh or chilled, from 1 November to 15 May t 1,134 EO % 500 Other vegetables, fresh or chilled (sweet peppers) t 500 EO % 500 Dried onions t 12,000 EO % 9,696 Manioc (casava) t 5,750,00 0 THA % 3,096,027 Manioc (casava) other than pellets of flour and meal Arrowroot, salep and similar roots and t 825,000 IDN % 0 tubers with high starch content Manioc (casava) other than pellets of flour and meal Arrowroot, salep and similar roots and t 350,000 CHN % 275,805 tubers with high starch content Manioc (casava) other than pellets of flour and meal Arrowroot, salep and similar roots and t 145,590 OTH % 124,552 tubers with high starch content Manioc (casava) other than pellets of flour and meal Arrowroot, salep and similar roots and t 30,000 NW % 30,000 tubers with high starch content Manioc (casava) other than pellets of flour and meal Arrowroot, salep and similar roots and t 2,000 NW % 1,691 tubers with high starch content Sweet potatoes, other than for human consumption t 600,000 CHN % 252,641 Sweet potatoes, other than for human consumption t 5,000 OTH % 4,985 Mushrooms of the species Agaricus, prepared, preserved or provisionally preserved Mushrooms of the species Agaricus, prepared, preserved or provisionally preserved Almonds, other than bitter Sweet oranges, fresh Other citrus hybrids t 33,980 EO 100% 33,980 t 1,450 CHN 100% 1,450 t 90,000 EO % 85,958 t 20,000 EO % 20,000 t 15,000 EO % 14,931 EN 7 EN

18 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Lemons, from 15 January to 14 June t 10,000 EO % 8,156 Table grapes, fresh, from 21 July to 31 October t 1,500 EO % 885 Apples, fresh, from 1 April to 31 July t 696 EO % 666 Pears, fresh, other than perry pears in bulk, from 1 August to 31 December t 1,000 EO % 810 Apricots, fresh, from 1 August to 31 May t 500 EO % 74 Apricots, fresh, from 1 June to 31 July t 2,500 EO % 1,387 Cherries, fresh, other than sour cherries, from 21 May to 15 July t 800 EO % 105 Preserved pineapples, citrus fruit, pears, apricots, cherries, peaches and t 2,838 EO % 2,820 strawberries Orange juice, frozen, of a density not exceeding 1,33 g/cm3 at 20 C t 1,500 EO % 1,500 Fruit juices Grape juice (including grape must): Durum wheat Quality wheat t 7,044 EO % 6,436 t 14,029 EO % 0 t 50,000 EO % 50,000 t 300,000 EO % 300,000 Common wheat (medium and low quality) t 572,000 USA % 571,943 Common wheat (medium and low quality) t 38,853 CAN % 1,463 Common wheat (medium and low quality) t 2,371,60 0 OTH % 2,285,665 Common wheat (medium and low quality) t 129,577 EO % 129,577 Barley Malting barley t 307,105 EO % 306,812 t 50,890 EO % 20,789 EN 8 EN

19 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Preparations consisting of a mixture of malt sprouts and of barley screenings before the malting process (possibly including other seeds) with barley cleanings after the malting process, and containing, by weight, 12,5 % or more of protein Preparations consisting of a mixture of malt sprouts and of barley screenings before the malting process (possibly including their seeds) with barley cleanings after the malting process, and containing, by weight, 12,5 % or more of protein and not more than 28 % of starch Preparations consisting of a mixture of malt sprouts and of barley screenings before the malting process (possibly including other seeds) with barley cleanings after the malting process, and containing, by weight, 15,5 % or more of protein Preparations consisting of a mixture of malt sprouts and of barley screenings before the malting process (possibly including other seeds) with barley cleanings after the malting process, and containing, by weight, 15,5 % or more of protein and not more than 23 % of starch Maize Maize Maize Corn gluten Grain sorghum Millet Worked oats, other than kibbled Manioc starch Manioc starch Bran, sharps and other residues whether or not in the form of pellets derived from the sifting, milling or other working of cereals t 20,000 EO % 20,000 t 100,000 EO % 100,000 t 277,988 EO % 269,214 t 500,000 EO t 2,000,00 0 EO No order No order 100% 500, % 2,000,000 t 10,000 USA % 10,000 t 300,000 EO No order 100% 300,000 t 1,300 EO % 888 t 10,000 EO % 231 t 8,000 EO % 6,632 t 2,000 EO % 1,658 t 475,000 EO % 458,068 EN 9 EN

20 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Paddy rice Husked (brown) rice Semi-milled or wholly milled rice Semi-milled or wholly milled rice Semi-milled or wholly milled rice Semi-milled or wholly milled rice Semi-milled or wholly milled rice Broken rice, intended for the production of foodstuffs of subheading Broken rice Broken rice Raw cane sugar, for refining Raw cane sugar, for refining Raw cane sugar, for refining Raw cane sugar, for refining t 7 EO % 5 t 1,634 EO % 1,416 t 63,000 EO 58.3% 36,731 t 4,313 THA % 3,663 t 9,187 OTH 74.7% 6,859 t 1,200 THA % 1,019 t 25,516 OT % 22,442 t 1,000 EO % 1,000 t 31,788 EO % 26,581 t 100,000 EO 93.7% 93,709 t 9,925 AUS % 4,961 t 388,124 BRA % 358,454 t 10,000 CUB % 10,000 t 372,876 EO % 341,460 Cane or beet sugar t (white sugar equivalent) 10,000 IDN % 5,841 Cane or beet sugar t (white sugar equivalent) 1,294,70 0 ACP N/A 71.2% 921,707 Chemically pure fructose Confectionary Other preparations of a kind used in animal feeding: Containing no milk products or containing less than 10 % by weight of such products t 1,253 EO % 1,253 t 2,289 EO % 2,245 t 2,800 EO % 2,746 EN 10 EN

21 Product Description Unit EU28 scheduled quantity Country 1 Order EU27 share in quota usage 2 EU27-TRQ size Other preparations of a kind used in animal feeding: Containing no milk products or containing less than 10 % by weight of such products Food preparations Food preparations Dog and cat food Chocolate Chocolate Pasta Biscuits Food preparations with cereals Wine of fresh grapes (other than sparkling wine and quality wine produced in specified regions) in containers holding =< 2 L and of an alcoholic strength of =<13% vol Wine of fresh grapes (other than sparkling wine and quality wine produced in specified regions) in containers holding > 2 L and of an alcoholic strength of =< 13% vol Vermouth and other wine of fresh grapes, flavoured with plants or aromatic substances in containers holding > 2 L and of an alcoholic strength of =< 18% vol t 2,700 EO % 2,670 t 921 EO % 702 t 1,550 USA % 831 t 2,058 EO % 1,393 t 107 EO % 81 t 2,026 EO % 2,026 t 532 EO % 497 t 409 EO % 409 t 191 EO % 191 hl 40,000 EO % 4,689 hl 20,000 EO % 15,647 hl 13,810 EO % 13,808 EN 11 EN

22 Product Description Unit EU28 scheduled quantity Country Order EU27 share in quota usage EU27 TRQ size Part B FISHERY PRODUCTS Herring, fresh frozen en fillets Cod of the species Gadus morhua and Gadus ogac Fish of the species Boreogadus saida Hake, fresh and frozen t 34,000 EO % 31,888 t 25,000 EO % 24,998 t 2,000 EO % 1,999 Salmonids frozen of the genus Coregonus t 1,000 EO % 1,000 Freshwater crayfish, cooked in dill, frozen t 3,000 EO % 2,965 Shrimps of the species Pandalus borealis, shelled, boiled, frozen, but not t 500 EO % 474 further prepared Fish of the genus Allocyttus and of the species Pseudocyttus maculatus t 200 EO % 200 Prepared or preserved fish (excl. whole or in pieces): of tuna, skipjack or other fish of the genus Euthynnus Prepared or preserved fish (excl. whole or in pieces): of tuna, skipjack or other fish of the genus Euthynnus Prepared or preserved fish (excl. whole or in pieces): of sardines, bonito, mackerel of the species Scomber scombrus and Scomber japonicas, fish of the species Orcynopsis unicolor Prepared or preserved fish (excl. whole or in pieces): of sardines, bonito, mackerel of the species Scomber scombrus and Scomber japonicas, fish of the species Orcynopsis unicolor Tunas (of the genus Thunnus) and fish of the genus Euthynnus INDUSTRIAL GOODS AND FRUCTOSE Plywood of coniferous species, without the addition of other substances: of which the faces are not further prepared than the peeling process, of a thickness greater than 8,5 mm, or sanded, of a thickness greater than 18,5 mm Ferro-silicon Ferro-silico-manganese t 1,816 THA % 1,816 t 742 EO % 742 t 1,410 THA % 123 t 865 EO % 631 t 17,250 EO Not used 99.83% 17,221 cubic m 650,000 EO % 482,648 t 12,600 EO % 12,600 t 18,550 EO % 18,550 EN 12 EN

23 Product Description Unit EU28 scheduled quantity Country Order EU27 share in quota usage EU27 TRQ size Ferro-chromium containing not more than 0,10 % by weight of carbon, and more than 30 % but not more than 90 % of chromium Similar glass small wares other than: glass beads, imitation pearls and imitation precious and semi- precious stones Unbleached flax yarn (other than tow yarn) measuring 333,3 decitex or more (not exceeding 30 metric ) t 2,950 EO % 2,804 t 52 EO % 52 t 400 EO % 400 Chemically pure fructose t 4,504 EO % 4,504 EN 13 EN

24 Com 312 (2018) Information Note 1. Proposal Proposal for a Regulation of the European Parliament and of the Council on the apportionment of tariff rate quotas included in the WTO schedule of the Union following the withdrawal of the United Kingdom from the Union and amending Council Regulation (EC) No 32/ Date of Commission document 22/05/ Number of Commission document COM (2018) Number of Council document: 9254/18 (2018/0158 (COD)) 5. Dealt with in Brussels by Trade Policy Committee 6. Department with primary responsibility Department of Business, Enterprise and Innovation 7. Other Departments involved Department of Agriculture, Food and the Marine; Department of Foreign Affairs and Trade 8. Background to, Short summary and aim of the proposal The UK s withdrawal from the EU has implications beyond the bilateral relationship between the EU and the UK, in particular with regard to their commitments under the Agreement establishing the WTO. When the European Community accepted the WTO Agreement and the Multilateral Trade Agreements in 1994, the schedule of concessions and commitments that was Annexed to the General Agreement on Tariffs and Trade (GATT) 1994 for the European Communities was thereby simultaneously annexed for the UK. The EU s existing quantitative commitments, notably the Tariff Rate Quotas (TRQs), will require certain adjustments to reflect the UK s withdrawal from the EU. The products which have TRQs attached are primarily agricultural and fishery products (including specific beef, swine, sheep, poultry, dairy, fruit, vegetables, wheat, maize, rice and fish products), and a small of industrial products (including specific wood, silicon, glass, flax and fructose products). The methodology applied to apportionment is based the United Kingdom s share of total Union imports under the tariff rate quota over a recent representative three-year period. This usage share is applied to the entire scheduled tariff rate quota volume to arrive at the United Kingdom s share of a given tariff rate quota. The Union s share then consists of the remainder of the tariff rate quota in question. This means the total volume of a given TRQ is not changed. The full product list including the EU share in quota is contained in the Regulation Annex.

25 There are two interlinked Proposals from the Commission, forming part of a Package published on the 22 May COM (2018) 311 and COM (2018) 312. COM (2018) 311 ( Recommendation for a Council Decision authorising the opening of negotiations with a view to apportioning the Union s WTO concessions on Tariff Rate Quotas annexed to the General Agreement on Tariffs and Trade 1994 in view of the withdrawal of the United Kingdom from the Union ) - the objective of this draft Council decision is to authorise the Commission to open negotiations (with certain WTO members affected) pursuant to Article XXVIII of the GATT 1994 to modify the relevant concessions (notably WTO bound TRQs) in the European Union s WTO schedule, so as to apportion them between the Union and the United Kingdom. COM (2018) 312 (which is the subject of this Oireachtas Information Note) - given the timeframe under which the negotiations referenced above will need to be conducted, it cannot be excluded that some may not be concluded within the necessary time limits before the UK is no longer covered under the EU s WTO Schedule. COM (2018) 312 therefore seeks to ensure that in the absence of such agreement, the EU can nevertheless proceed with the apportionment of the TRQs by modifying the WTO tariff concessions and that the Commission is given the necessary powers to consequently amend the relevant EU provisions on the opening and implementation of the relevant TRQs (see Article 4 of the Regulation Proposal the power to adopt delegated acts is conferred on the Commission). The Decision and the Regulation together cover both eventualities. 9. Legal basis of the proposal Article 207(2) TFEU. 10. Voting Method QMV. 11. Role of the EP Ordinary Legislative Procedure (co-decision). 12. Category of proposal Purely technical. 13. Implications for Ireland & Ireland's Initial View' Ireland appreciates the Commission s need to act swiftly, against the backdrop of the UK s planned withdrawal from the Union, and the urgency therefore attached to securing the necessary mandate for a Council Decision for the opening of negotiations with certain WTO members (COM (2018) 311) and Council approval for the Regulation (COM (2018) 312). Ireland also prioritises the need to minimise disruption to trade as the UK leaves the EU and of the importance of maintaining the existing levels of market access. Given current ambiguity about how the UK s departure from the Union might unfold, it is difficult to determine the market access impacts in the context of a disaggregation of TRQs. On this basis, Ireland sought

26 to enhance the consultation requirements for the Commission with Member States in the apportionment process. We therefore welcome the inclusion in the Presidency Compromise Proposal on COM (2018) 311 of strengthened text in relation to consultation with Council. This provides us with assurances that any unintended consequences of the proposed approach, given the fluidity of the overall Brexit process, will be discussed by Member States at the Trade Policy Committee. We will be liaising closely with the Department of Agriculture, Food and the Marine and Department of Foreign Affairs and Trade as the negotiations commence and progress on the detail of the Regulation and its Annex. 14. Impact on the public None. 15. Have any consultations with Stakeholders taken place or are there any plans to do so? The European Commission has not engaged in stakeholder consultations. Domestically the Department of Agriculture, Food and the Marine has been consulted on COM (2018) 311 and will be consulted along with Department of Foreign Affairs and Trade on the detail of COM (2018) 312 as the negotiations commence and progress on the detail of the Regulation. 16. Are there any subsidiarity issues for Ireland? No. The common commercial policy is an exclusive competence of the Union. 17. Anticipated negotiating period Six months. 18. Proposed implementation date The Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the Union. 19. Consequences for national legislation None. 20. Method of Transposition into Irish law N/A. 21. Anticipated Transposition date N/A. 22. Consequences for the EU budget in Euros annually None. 23. Contact name, telephone and address of official in Department with primary responsibility Cliona Ryan Administrative Officer Trade Policy Unit

27 Department of Business, Enterprise and Innovation Tel: cliona.ryan@dbei.gov.ie Date 22 June 2018