REPORT on the proposal for a regulation of the European Parliament and of the Council on imports of rice originating in Bangladesh

25.9.2013 - (COM(2012)0172 – C7-0102/2012 – 2012/0085(COD)) - ***I

Committee on International Trade
Rapporteur: Paul Murphy

Amendments

• 001-012 (PDF - 121 KB)
• 001-012 (DOC - 78 KB)
• 013-013 (PDF - 92 KB)
• 013-013 (DOC - 161 KB)
• 014-014 (PDF - 147 KB)
• 014-014 (DOC - 135 KB)
• 015-015 (PDF - 98 KB)
• 015-015 (DOC - 301 KB)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on imports of rice originating in Bangladesh

(COM(2012)0172 – C7-0102/2012 – 2012/0085(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to Parliament and the Council (COM(2012)0172),

–   having regard to Article 294(2) and Article 207 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0102/2012),

–   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–   having regard to Rule 55 of its Rules of Procedure,

–   having regard to the report of the Committee on International Trade (A7-0304/2013),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment  1 Proposal for a regulation Title
Text proposed by the Commission	Amendment
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on imports of rice originating in Bangladesh	Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on imports of rice originating in Bangladesh and repealing Council Regulation (EEC) No 3491/90
Amendment  2 Proposal for a regulation Recital 3
Text proposed by the Commission	Amendment
(3) In order to ensure the reliability and the efficiency of the preferential import arrangement, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission to establish rules making the participation in the arrangement conditional upon the lodging of a security. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.	(3) In order to ensure the reliability and the efficiency of the preferential import arrangement, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission to establish rules making the participation in the arrangement conditional upon the lodging of a security in line with Commission Regulation (EC) No 1964/2006 of 22 December 2006 laying down detailed rules for the opening and administration of an import quota for rice originating in Bangladesh, pursuant to Council Regulation (EEC) No 3491/901. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
	______________
	1 OJ L 408, 30.12.2006, p. 18
Amendment  3 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers, save where explicitly provided otherwise, should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member states of the Commission's exercise of implementing powers . However, where the suspension of the preferential import arrangement becomes necessary, the Commission should be allowed to adopt implementing acts without applying the Regulation (EU) No 182/2011.	(4) In order to ensure uniform conditions for the adoption of certain measures for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers, save where explicitly provided otherwise, should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member states of the Commission's exercise of implementing powers . However, where the suspension of the preferential import arrangement becomes necessary, the Commission should adopt an implementing act without applying Regulation (EU) No 182/2011.
Amendment  4 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7) To ensure the advantages of the preferential import arrangements are limited only to rice originating in Bangladesh, a certificate of origin should be issued and an export tax of an amount corresponding to the reduction of the import duty should be collected by the exporting country.	(7) To ensure the advantages of the preferential import arrangements are limited only to rice originating in Bangladesh, a certificate of origin should be issued.
Amendment  5 Proposal for a regulation Recital 7 a (new)
Text proposed by the Commission	Amendment
	(7a) This Regulation is part of the Union's common commercial policy, which must be consistent with the objectives of the Union policy in the field of development cooperation as set out in Article 208 of the Treaty, in particular the eradication of poverty and the promotion of sustainable development and good governance in the developing countries. As such, it should also comply with World Trade Organization (WTO) requirements, in particular with the Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries (the 'Enabling Clause'), adopted under the General Agreement on Tariffs and Trade (GATT) in 1979, under which WTO Members may accord differential and more favourable treatment to developing countries,
Amendment  6 Proposal for a regulation Recital 7 b (new)
Text proposed by the Commission	Amendment
	(7b) This Regulation is also based on the recognition of the right of small farmers and rural workers to a decent income and to a safe and healthy working environment as fundamental in relation to achieving the general objectives of granting trade preferences to developing countries and least developed countries in particular. The Union aims to define and pursue common policies and actions in order to foster the sustainable economic, social and environmental development of developing countries, with the primary aim of eradicating poverty. In this context, ratification and effective implementation of core international conventions on human and labour rights, environmental protection and good governance are essential, as reflected by the special incentive arrangement providing for additional tariff preferences under Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences1,
	_______________
	1 OJ L 303, 31.10.2012, p. 1.
Amendment  7 Proposal for a regulation Article 1 - paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a. This Regulation recognises the right of small farmers and rural workers to a decent income and to a safe and healthy working environment and regards respect for that right as fundamental in relation to achieving the general objectives of granting trade preferences to developing countries and least developed countries in particular.
Amendment  8 Proposal for a regulation Article 1 - paragraph 3
Text proposed by the Commission	Amendment
3. By means of an implementing act adopted without the assistance of the Committee referred to in Article 323(1) of Regulation No XXXX/XXXX, the Commission shall suspend the application of the preferential import arrangement provided for in paragraph 1 of this Article once it ascertains that, during the year in progress, imports qualifying under the said arrangement have reached the quantity indicated in paragraph 2.	3. The Commission shall adopt an implementing act suspending the application of the preferential import arrangement provided for in paragraph 1 of this Article once it ascertains that, during the year in progress, imports qualifying under the said arrangement have reached the quantity indicated in paragraph 2 of this Article. That implementing act shall be adopted without applying the procedure referred to in Article 5a(2).
Amendment  9 Proposal for a regulation Article 2 - paragraph 2 - point (a)
Text proposed by the Commission	Amendment
(a) that proof is provided that an export tax of an amount corresponding to the reduction referred to in paragraph 1 has been collected by Bangladesh	deleted
Amendment  10 Proposal for a regulation Article 4 - paragraph 2
Text proposed by the Commission	Amendment
2. The power to adopt delegated acts referred to in Article 3 shall be conferred on the Commission for an indeterminate period of time from the day of entry into force of this Regulation.	2. The power to adopt delegated acts referred to in Article 3 shall be conferred on the Commission for a period of five years from ...*. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.
	___________
	* OJ: please insert date of entry into force of this Regulation.
Amendment  11 Proposal for a regulation Article 4 - paragraph 5
Text proposed by the Commission	Amendment
5. 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 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 two months at the initiative of the European Parliament or of the Council.	5. 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 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 four months at the initiative of the European Parliament or of the Council.
Amendment  12 Proposal for a regulation Article 5 a (new)
Text proposed by the Commission	Amendment
	Article 5a
	Committee procedure
	1. The Commission shall be assisted by the Committee for the Common Organisation of the Agricultural Markets established by Article [323(1)] of Regulation (EU) No [xxxx/yyyy ] of the European Parliament and of the Council of ..... establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products [Single CMO Regulation]1. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
	2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
	3. Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a majority of committee members so request.
	_______________
	1 COM(2010)0799.

EXPLANATORY STATEMENT

Preferential access of products from Least Developed Countries (LDCs), including preferential import arrangements for rice, stem from the GATT (General Agreement on Tariffs and Trade and predecessor organisation of the WTO) Uruguay round which in its entirety was signed in 1994.

The specific Council regulation (EEC) No 3491/90 that deals with imports of rice originating in Bangladesh was adopted in November 1990.

In the concrete case of Bangladesh, the preferential import arrangements involve a reduction of the import duty within the limits of a certain quantity of husked rice.

The objective of the Commission's proposal from 16.4.2012 is to align Council Regulation (EEC) No 3491/90 of 26 November 1990 on imports of rice originating in Bangladesh with the post-Lisbon regime of implementing acts and delegated acts introduced by Articles 290 and 291 of the Treaty on the Functioning of the European Union. For the sake of clarity, the Commission proposes to repeal Regulation (EEC) No 3491/90 and to replace it with a new Regulation which the Rapporteur of this report agrees to.

In February 2001, the Council adopted Regulation (EC) 416/2001, the so-called "EBA Regulation" ("Everything But Arms") which was later incorporated into the GSP Council Regulation (EC) No 2501/2001 and foresees that the special arrangement for LDCs should be maintained for an unlimited period of time and not be subject to the to the periodic renewal of the GSP scheme.

The limited transitional restrictions/quotas for sugar and rice have been progressively expanded every year since 2001 and have lapsed completely on 31 August 2009 and 30 September 2009 respectively. All imports of rice and sugar originating in LDCs are therefore now fully liberalised. From 1 October 2009 onwards, the EBA grants full 100 per cent duty -free and quota- free market access for all products from all LDCs, with the exception of course for imports of arms and ammunitions.

It is therefore the Rapporteur's understanding that Council regulation (EEC) No 3491/90 has currently no impact on Bangladesh's import arrangements with the EU. For the same reason, the alignment of the regulation will have no effect on determining the current rules on trade in rice between the EU and Bangladesh. The regulation will only come into force in the event of changes affecting Bangladesh being made to the "EBA regulation" (EC) 416/2001.

A large volume of legislation in the field of the Common Commercial Policy is currently being aligned to Articles 290 and 291 TFEU by means of two Trade Omnibuses, i.e. Trade Omnibus I- Regulation of the European Parliament and of the Council amending certain regulations relating to the common commercial policy as regards the procedures for the adoption of certain measures (COD 2011/0039) and Trade Omnibus II - Regulation of the European Parliament and of the Council amending certain regulations relating to the common commercial policy as regards the granting of delegated powers for the adoption of certain measures (COD 2011/0153).

Both dossiers are ongoing and are subject to the final trilogue negotiations were concluded on 5th June between the two co-legislators and the European Commission. For the sake of consistency of the trade legislation, the Rapporteur proposes amendments to the Commission proposal which reflect the changes which will be brought about by the two Trade Omnibuses, namely with respect to

•   inserting new recitals on implementing acts/delegated acts into the basic legal acts;

•   involving the European Parliament during the preparation of delegated acts;

•   limiting the conferral of the delegated powers on the Commission to a period of 5 years, tacitly extendable by a period of identical duration; (or is it rather accurate to say by periods of identical durations)

•   extending the period for the European Parliament's objection to a draft delegated act received from the European Commission from 2-4 months, thereby extending the period of scrutiny by the European Parliament from 4 months (2+2) to 6 months (2+4)

In line with previous alignment files, such as the amendments of Council regulations (EC) No 2008/97, (EC) No 779/98 and (EC) No 1506/98 in the field of imports of olive oil and other agricultural products from Turkey as regards the delegated and implementing powers to be conferred on the Commission, that are not included into the Omnibus I and II, the Rapporteur is suggesting to insert a provision on Committee procedure into the Regulation. This way, the modified application of the written procedure, brought about by the Trade Omnibuses can be assured. Moreover, the amended regulation and not the Single CMO regulation will become basic acts for the future implementing acts. Consequently, the right of scrutiny concerning such implementing acts will stay with the Committee on International Trade and not the Committee on Agriculture. Moreover, the Rapporteur is suggesting limiting the conferral of the delegated powers on the Commission to a period of 5 years, tacitly extendable by a period of identical duration as has been agreed in a number of other trade files.

In relation to concrete matters arising from this specific regulation and which are unrelated to the Comitology procedure, the Rapporteur introduced a number of additional amendments which in his opinion will add to the coherence of the regulation.

This is the case for Recital 4 which, in order to fully correspond with Article 1(3), was amended to strictly limit the scope of the implementing act referred to, to mathematically determining the limit/mete of the quota.

The Rapporteur also felt that a more coherent approach was needed in relation to the "lodging of a security", referenced in Article 3 of the Commission proposal. The rules vis-à-vis the "lodging of a security" are governed by Commission Regulation (EC) No 1964/2006 on laying down detailed rules for the opening and administration of an import quota for rice originating in Bangladesh. No reference to this regulation is made to this Regulation in the Commission proposal which the Rapporteur believes that it is necessary to introduce a reference to this Regulation in order to guarantee coherence between the delegated act adopted under this regulation with the provisions laid down in Commission Regulation (EC) No 1964/2006.

In the Commission proposal, explicit reference is made to an export tax of an amount corresponding to the reduction of the import duty which should be collected by the exporting country as an export requirement to the EU.

The Rapporteur is not opposed to Bangladesh collecting an export tax. However, he believes that this is a decision to be made by the political legislators in Bangladesh and not by the European institutions. The Commission has not satisfactorily answered the Rapporteur's question as to why these references and provisions are made in the Commission proposal.

The Rapporteur has therefore deleted those references and provisions from the Regulation and has inserted a new Recital which recognises Bangladesh's right to collect an export tax of an amount it deems appropriate.

The Rapporteur felt it was important to stress that the Regulation needs to be in line with the general provisions of Article 208 of the TFEU as well as with the general objectives of sustainable economic development, decent working conditions and poverty eradication in Bangladesh and hence introduced a new Recital and a new Paragraph to Article 1 of the Regulation.

PROCEDURE

Title	Imports of rice originating from Bangladesh
References	COM(2012)0172 – C7-0102/2012 – 2012/0085(COD)
Date submitted to Parliament	16.4.2012
Committee responsible        Date announced in plenary	INTA 20.4.2012
Committee(s) asked for opinion(s)        Date announced in plenary	AGRI 20.4.2012
Not delivering opinions        Date of decision	AGRI 23.5.2012
Rapporteur(s)        Date appointed	Paul Murphy 29.5.2012
Discussed in committee	17.12.2012	11.7.2013
Date adopted	17.9.2013
Result of final vote	+: –: 0:	29 1 0
Members present for the final vote	William (The Earl of) Dartmouth, Laima Liucija Andrikienė, Maria Badia i Cutchet, María Auxiliadora Correa Zamora, Andrea Cozzolino, George Sabin Cutaş, Marielle de Sarnez, Yannick Jadot, Metin Kazak, Bernd Lange, David Martin, Vital Moreira, Paul Murphy, Cristiana Muscardini, Franck Proust, Godelieve Quisthoudt-Rowohl, Niccolò Rinaldi, Helmut Scholz, Peter Šťastný, Robert Sturdy, Henri Weber, Jan Zahradil
Substitute(s) present for the final vote	Amelia Andersdotter, Josefa Andrés Barea, Salvatore Iacolino, Elisabeth Köstinger, Emma McClarkin, Mario Pirillo, Jarosław Leszek Wałęsa
Substitute(s) under Rule 187(2) present for the final vote	Jean-Pierre Audy, Krzysztof Lisek
Date tabled	25.9.2013