EU/China Agreement: modification of concessions on all the tariff rate quotas included in the EU Schedule CLXXV as a consequence of the United Kingdom's withdrawal from the European Union

PURPOSE: to conclude, on behalf of the Union, the agreement in the form of an exchange of letters between the European Union and the People's Republic of China under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 concerning the modification of concessions for all tariff quotas in the European Union's CLXXV list following the withdrawal of the United Kingdom from the European Union.

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act. 

BACKGROUND: the agreement in the form of an exchange of letters between the European Union and the People's Republic of China under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 concerning the modification of concessions for all tariff quotas in the European Union's CLXXV schedule following the withdrawal of the United Kingdom from the Union has been signed on behalf of the Union subject to its conclusion at a later date. The agreement should be approved.

CONTENT: the Council's proposal concerns the approval, on behalf of the Union, of the agreement in the form of an exchange of letters between the European Union and the People's Republic of China under Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions for all tariff quotas in the European Union's CLXXV list following the withdrawal of the United Kingdom from the European Union.

The agreement aims to provide for the allocation of tariff quotas from the European Union's CLXXV list of the General Agreement on Tariffs and Trade (GATT) of 1994 following the withdrawal of the United Kingdom from the Union.

China and the Union have agreed to conclude negotiations on the following basis:

- China approves the principle and method of allocating the quantitative commitments provided for in the form of tariff quotas of the Union which included the United Kingdom, under which a part of the quantity is taken over by the Union which no longer includes the United Kingdom, the remaining quantity being taken over by the United Kingdom;

- for quotas over which China has negotiating rights, China accepts proposed quantitative commitments regarding tariff-rate quotas, assumed by the Union after the withdrawal of the United Kingdom, as presented in the official document;

- with regard to certain tariff quotas, specified in an annex, China and the Union agree to modify the planned commitments. These quotas concern garlic, fresh carrots and turnips, dried onions, rice, processed cooked duck, goose or guinea fowl meat containing less than 25% by weight of poultry meat or offal, fruit juices, food preparations, certain preparations of the types used for animal feed, and coniferous plywood, without the addition of other materials.

These arrangements do not affect the negotiations the EU is conducting with other WTO members. If these discussions lead to further changes to quotas concerning China, the EU will consult with China to find an acceptable solution.