Tariff quotas for wine exports from Kosovo

PURPOSE: the amendment of Council Regulation (EC) No 1215/2009 in relation to tariff quotas for wine exports from Kosovo.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: since 2000, the Union grants unlimited duty free access to the Union market for almost all products originating in the Western Balkans. Currently, this system is provided for in Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries participating in or linked to the European Union’s Stabilisation and Association process.

All the Western Balkans countries benefit from preferential trade arrangements, including individual tariff quotas, under the Stabilisation and Association Agreements or Interim Agreements on trade and trade-related matters concluded with these countries, with the exception of Kosovo. Kosovo has no Stabilisation and Association Agreement, and can only benefit of the general tariff quota. When this tariff quota is exhausted by other countries, Kosovan exporters have no preferential access to the EU market. Kosovo has demonstrated the potential to export wine to the EU, and exporters need a stable and reliable framework.

IMPACT ASSESSMENT: no impact assessment was undertaken.

LEGAL BASIS: Article 207(2) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: it is proposed to allocate a specific tariff quota of 20.000 hl to Kosovo, which is deducted from the global quota of 50.000 hl provided for in Council Regulation (EC) No 1215/2009, hence reduced to 30.000 hl. This is achieved by closing the current tariff quota and establishing two new ones for the said amounts.

A mechanism is foreseen which eliminates the legal uncertainties deriving from the fact that the quotas are allocated on a “first come–first served” basis, and that the date of entry into force of this regulation cannot be anticipated. In order to avoid expanding the overall volume of concessions, the quota reserved for Kosovo is applied on a pro-rata basis.

This reallocation does not affect the global volume of concession to the countries in the Western Balkans, and maintains stable wine market conditions in the EU. The specific concessions provided for in the Stabilisation and Association Agreements or the Interim Agreements are also not affected by this proposed Regulation.

BUDGETARY IMPLICATION: there are no implications for the European Union’s budget.