RECOMMENDATION on the draft Council decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Union and the Swiss Confederation on the cumulation of origin between the European Union, the Swiss Confederation, the Kingdom of Norway and the Republic of Turkey in the framework of the Generalised System of Preferences

27.4.2018 - (05882/2017 – C8‑0241/2017 – 2016/0328(NLE)) - ***

Committee on International Trade
Rapporteur: Tiziana Beghin

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the draft Council decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Union and the Swiss Confederation on the cumulation of origin between the European Union, the Swiss Confederation, the Kingdom of Norway and the Republic of Turkey in the framework of the Generalised System of Preferences

(05882/2017 – C8‑0241/2017 – 2016/0328(NLE))

(Consent)

The European Parliament,

–  having regard to the draft Council decision (05882/2017),

–  having regard to the draft Agreement in the form of an Exchange of Letters between the European Union and the Swiss Confederation on the cumulation of origin between the European Union, Switzerland, Norway and Turkey in the framework of the Generalised System of Preferences of the European Union (05803/2017),

–  having regard to the request for consent submitted by the Council in accordance with Article 207(4) and Article 218(6), second subparagraph, point (a)(v) of the Treaty on the Functioning of the European Union (C8‑0241/2017),

–  having regard to Rule 99(1) and (4) and Rule 108(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on International Trade (A8-0151/2018),

1.  Gives its consent to the conclusion of the agreement;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Swiss Confederation.

EXPLANATORY STATEMENT

The present Agreement between the EU and Switzerland was negotiated in order to enact the changes brought by the reform of the General System of Preferences (GSP) rules of origin in 2010. The reform introduced a new system of cumulation of origin by registered exporters and provided for inclusion of Turkey in the system of cumulation which so far worked between the Union, Switzerland and Norway. The new legislation also provided for replacing of the former Certificates of origin of Form A by a new system of establishment of proofs of origin by registered exporters (Registered Exporter (REX) system).

The system of cumulation was initially put in place under the agreement in the form of exchange of letters between the Union and Switzerland of 14 December 2000 (Council Decision 2001/101/EC. This agreement has to be substituted by a new one. On 8 March 2012, the Council authorised the Commission to conduct negotiations with Switzerland, which have resulted in the present Agreement.

The system of cumulation of origin: The new system of cumulation entails that the EU, Norway, Switzerland and Turkey will allow GSP beneficiary countries to incorporate materials from any of the countries in the system (EU, Switzerland, Norway, Turkey) in their production processes, and export the final product to the EU, Switzerland, Norway or Turkey under the GSP preferential terms provided that the final product has been sufficiently worked or processed. Under the present Agreement, the EU and Switzerland will give preferential treatment and access to products originating in beneficiary countries when these countries use materials originating respectively in the EU or in Switzerland.

The new system of proofs: The GSP reform states that the former Certificates of origin of Form A were to be replaced by 1 January 2017. The new REX system has started to apply on 1 January 2017 in a certain number of GSP beneficiary countries constituting a first wave. Two more such waves are planned in 2018 and 2019. These countries have registered their exporters, who are now making out statements on origin instead of using certificates of origin Form A issued by their customs authorities.

The REX system already works in the framework of the GSP scheme granted by the EU, and the GSP schemes of Switzerland and Norway. When the replacement of proofs of origin is done for re-consigning goods originating in GSP beneficiary countries, the replacement certificates of Form A are currently being used as replacement proofs (under the provisions of the current agreement between the EU, Switzerland and Norway). In order for the cumulation system to apply to Norway and Turkey, the parties have to conclude and apply similar agreements with Norway and Turkey. A similar agreement between the EU and Norway was negotiated and concluded in parallel to the present Agreement, and is submitted to the consent of Parliament. Between the EU and Turkey, an international agreement is not needed, as the EU-Turkey Customs Union provides the legal tool to integrate similar rules in its legislation.

The Present Agreement is necessary to ensure smooth running of trade between the European Union and Switzerland. It will enable the EU and Switzerland to use the new replacement proofs of origin provided for by the new REX system. The system is already applicable, therefore the lack of the appropriate legal tool could disrupt trade between the EU and Switzerland. Your Rapporteur therefore recommends the Parliament to grant consent to this Agreement.

PROCEDURE – COMMITTEE RESPONSIBLE

Title	Agreement in the form of an Exchange of Letters between the EU and the Swiss Confederation on the cumulation of origin between the EU, the Swiss Confederation, Norway and Turkey in the framework of the Generalised System of Preferences of the EU
References	05882/2017 – C8-0241/2017 – COM(2016)0672 – 2016/0328(NLE)
Date of consultation / request for consent	20.7.2017
Committee responsible        Date announced in plenary	INTA 11.9.2017
Rapporteurs        Date appointed	Tiziana Beghin 13.2.2018
Previous rapporteurs	David Borrelli
Discussed in committee	22.3.2018
Date adopted	24.4.2018
Result of final vote	+: –: 0:	36 0 0
Members present for the final vote	William (The Earl of) Dartmouth, Laima Liucija Andrikienė, Tiziana Beghin, David Campbell Bannerman, Daniel Caspary, Salvatore Cicu, Santiago Fisas Ayxelà, Karoline Graswander-Hainz, Nadja Hirsch, Yannick Jadot, France Jamet, Jude Kirton-Darling, Bernd Lange, David Martin, Emma McClarkin, Anne-Marie Mineur, Sorin Moisă, Artis Pabriks, Franck Proust, Godelieve Quisthoudt-Rowohl, Viviane Reding, Inmaculada Rodríguez-Piñero Fernández, Tokia Saïfi, Helmut Scholz, Joachim Schuster, Joachim Starbatty, Adam Szejnfeld, Iuliu Winkler, Jan Zahradil
Substitutes present for the final vote	Eric Andrieu, Goffredo Maria Bettini, Reimer Böge, Klaus Buchner, Dita Charanzová, Agnes Jongerius, Frédérique Ries
Date tabled	27.4.2018

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

36	+
ALDE	Dita Charanzová, Nadja Hirsch, Frédérique Ries
ECR	David Campbell Bannerman, Emma McClarkin, Joachim Starbatty, Jan Zahradil
EFDD	Tiziana Beghin, William (The Earl of) Dartmouth
ENF	France Jamet
GUE/NGL	Anne-Marie Mineur, Helmut Scholz
PPE	Laima Liucija Andrikienė, Reimer Böge, Daniel Caspary, Salvatore Cicu, Santiago Fisas Ayxelà, Sorin Moisă, Artis Pabriks, Franck Proust, Godelieve Quisthoudt-Rowohl, Viviane Reding, Tokia Saïfi, Adam Szejnfeld, Iuliu Winkler
S&D	Eric Andrieu, Goffredo Maria Bettini, Karoline Graswander-Hainz, Agnes Jongerius, Jude Kirton-Darling, Bernd Lange, David Martin, Inmaculada Rodríguez-Piñero Fernández, Joachim Schuster
VERTS/ALE	Klaus Buchner, Yannick Jadot

0	-

0	0

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention