Explanatory Memorandum to COM(2000)283 - Community position on an amendment to Protocol 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation attached to the Association Agreement with the PLO for the benefit of the Palestinian Authority of the West Bank and Gaza Strip

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dossier COM(2000)283 - Community position on an amendment to Protocol 3 concerning the definition of the concept of "originating products" and ...
source COM(2000)283 EN
date 25-05-2000
1. Origin rules are essential to the proper operation of the free-trade agreements that the Community has concluded with its trading partners. These rules are not immutable; they have to adapt to the political and economic requirements of the free-trade area to which they apply.

2. The origin protocol attached to the Euro-Mediterranean Interim Association Agreement concluded with the PLO provides for the provisions prohibiting drawback to apply from 1 January 2000.

3. The Palestinian Authority has asked for the suspension of entry into force of the no-drawback provisions to be extended for 6 years.

4. In the light of Palestine's particular economic and political situations, putting the no-drawback provisions into force would have a negative effect on its exports. Account also needs to be taken of the fact that the neighbouring Arab countries do not yet have to apply these provisions  i. The goal is therefore to accord Palestine similar treatment to that given the other Arab countries of the region.

5. It would seem appropriate to extend the suspension of implementation of the no-drawback rule with effect from 1.1.2000 until 1.1.2006, in line with the Palestinian Authority's request.

The Commission is accordingly requesting the Council to establish the common position for submission to the Joint Committee provided for in the Interim Association Agreement.