REPORT on the proposal for a Council regulation temporarily suspending autonomous Common Customs Tariff duties on import of certain industrial products into the Canary Islands

28.9.2021 - (COM(2021)0392 – C9‑0351/2021 – 2021/0209(CNS)) - *

Committee on Regional Development
Rapporteur: Younous Omarjee
(Simplified procedure – Rule 52(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council regulation temporarily suspending autonomous Common Customs Tariff duties on import of certain industrial products into the Canary Islands

(COM(2021)0392 – C9‑0351/2021 – 2021/0209(CNS))

(Special legislative procedure – consultation)

The European Parliament,

– having regard to the Commission proposal to the Council (COM(2021)0392),

– having regard to Article 349 of the Treaty on the Functioning of the European Union , pursuant to which the Council consulted Parliament (C9‑0351/2021),

– having regard to Rule 82 of its Rules of Procedure,

– having regard to the report of the Committee on Regional Development (A9-0267/2021),

1. Approves the Commission proposal;

2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

3. Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

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

 

EXPLANATORY STATEMENT

A. Objectives and content of the present proposal

 

The Canary Islands belong to the Outermost Regions of the European Union, for which special measures can be adopted, pursuant to Article 349 of the Treaty on the Functioning of the European Union (TFEU), in order to overcome the economic disadvantages these regions suffer due to their geographical situation.

 

Against this background, Council Regulation (EU) No 1386/2011[1]provided for the temporary suspension of the autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands, with a view to strengthening the competitiveness of the local economic operators, thus securing more stable employment on these islands.

 

These measures are due to expire on 31 December 2021. This is the reason why in April 2021, the government of Spain requested the prolongation of the suspension of the autonomous Common Customs Tariff duties for a number of products, on the grounds that the constraints faced by the region, linked to the small size of the market and its fragmentation, are structural and permanent in nature. Due to those limitations, the Canary Islands incur higher production, transport and environmental costs and are unable to benefit from globalisation to the same extent as other European regions.

 

In addition to the product categories covered by Regulation (EU) No 1386/2011, the government of Spain has requested in the same context the suspension of the Common Customs Tariff duties for seven new product categories, which include machines for industrial purposes and raw materials.

 

The requested suspension scheme aims at reducing the constraints that are affecting the economy of the Canary Islands.

This proposal has no financial impact on EU expenditure and has a very limited financial impact on revenue of approximately EUR 3,3 million per year.

 

 

B. Legal basis

 

The legal basis of this proposal is Article 349 TFEU. This provision enables the Council, taking into account the structural social and economic constraints of the Union outermost regions (including their remoteness, insularity, small size, difficult topography and climate, and their economic dependence on a few products) to adopt specific measures adjusting the application of the Treaties to those regions. Those measures concern specific areas, including, among others, customs and trade policies.

 

 

 

C. Assessment of the rapporteur

 

Your rapporteur is aware of the structural constraints faced by the Canary Islands, which hamper the competitiveness of the local economic operators, thus preventing stable employment on these islands. He is also aware of the disastrous economic repercussions of the COVID19 crisis, which led to an estimated drop of around 20 % in the GDP due notably to the collapse of tourism activity and to a contraction in the construction and industrial activity with an estimated decline of 13 %, in relation to 2019.

For these reasons, he considers that this proposal, which is in line with the Union policy as regards outermost regions and fully complies with Article 349, is justified by its limited scope and by the economic difficulties faced by the Canary Islands.

He therefore suggests that the proposed decision be approved by Parliament without amendment, under the simplified procedure set out in Rule 52(1) of the Rules of Procedure.

 

PROCEDURE – COMMITTEE RESPONSIBLE

Title	Temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands
References	COM(2021)0392 – C9-0351/2021 – 2021/0209(CNS)
Date Parliament was consulted	8.9.2021
Committee responsible  Date announced in plenary	REGI 13.9.2021
Rapporteurs  Date appointed	Younous Omarjee 6.9.2021
Simplified procedure - date of decision	6.9.2021
Date adopted	27.9.2021
Date tabled	28.9.2021

 

 

• [1]  Council Regulation (EU) n° 1386/2011 of 19 December 2011 temporarily suspending autonomous Common Customs Tariff duties on imports of certain industrial products into the Canary Islands (OJ L 345, 29.12.2011, p.1).