Avis juridique important

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52002PC0223

Recommendation for a Council Decision concerning the participation of the Community in the International Rubber Study Group  /* COM/2002/0223 final */

Recommendation for a COUNCIL DECISION concerning the participation of the Community in the International Rubber Study Group(presented by the Commission)EXPLANATORY MEMORANDUM1. The International Rubber Study Group (Irsg) was founded in 1944. It does not have a renewable International Agreement and it is not a body under the aegis of the United Nations, but its operations and staff are regulated in a manner similar to other Unctad commodity organisations. The Study Group provides a forum for the discussion of matters affecting the supply and demand for both synthetic and natural rubber. It covers all aspects of the world rubber industry, including marketing, shipping, distribution, trade in raw materials and the manufacture and sale of rubber products.2. The Irsg's objective is to provide a forum for the discussion of matters affecting the world-wide rubber industry between governments and between governments and industry. It collects, validates and publishes the authoritative statistics on the production, consumption and trade in natural and synthetic rubber and on related industries. It also carries out statistical, economic and techno-economic studies on factors affecting the rubber industry. The Group may provide advice and issue recommendations, but these are not binding on Member Governments.3. Irsg members represent 69 % of the world's production of synthetic rubber, 74 % of natural rubber production and 56 % of the world's consumption of all elastomers. Moreover, the activities of the Irsg are perfectly compatible with national economic policies on rubber, and members can take advantage of a wide range of services provided by the Irsg.4. After final liquidation of the International Natural Rubber Council (Inro) on 31 August 2001, future dialogue between natural rubber exporting and importing countries would best be achieved by strengthening the long existing Irsg, being the forum for the discussion of matters affecting the supply and demand for both synthetic and natural rubber.5. Several EU Member States are member of the Irsg, namely: Belgium, France, Germany, Italy, The Netherlands, Spain and the United Kingdom.6. Membership is confined to Governments.7. As the functions of the Irsg as described above cover issues related to trade and its activities are therefore regulated by Article 133 of the EC Treaty, and as with the entry into force of the WTO on 1 January 1995, the Community has become a party to the Gatt and a founder-member of the Wto itself, the Council has invited the Commission to take the necessary steps to enable the European Community to join the Irsg as a full member.8. The attached Recommendation for a Council Decicion is designed to achieve this aim.Recommendation for a COUNCIL DECISION concerning the participation of the Community in the International Rubber Study Group(Text with EEA relevance)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof;Having regard to the proposal of the Commission;Whereas:(1) The International Rubber Study Group (Irsg) was established in 1944 following the termination of the International Rubber Regulation Scheme that had operated from 1934. Amendments to the Rules of Procedure were adopted by the Group at the meetings of Heads of Delegations held during the thirty-sixth and thirty-seventh Assemblies of Nations in Tokyo (March 1995) and Phuket (April 1996).(2) The Irsg is an Intergovernmental Organisation with the status of a recognised international body, located in the United Kingdom, as formally established by a Headquarters Agreement with the Government of the United Kingdom, signed on 14 February 1978, that defines the privileges and immunities enjoyed by the Group and its Secretariat. The object of the Group is to:"...provide a forum for the discussion of problems affecting the production and consumption of, and trade in, natural and synthetic rubbers and to collect and disseminate comprehensive statistical information on the world rubber industry."(3) The Group is served by a Secretariat of which the Secretary-General, who is responsible to the Group and the Executive Committee, is the Executive head; administratively the Secretary-General reports to the Executive Committee which meets four to six times a year, comprising fourteen Member Governments elected at the annual meeting. The Chairman of the Group is elected for two-year periods at annual meetings and serves on the Executive Committee ex officio. The highest body is the Heads of Delegations which meets at Annual Meetings or Special Meetings.(4) The Group's activities provide a forum for the discussion of matters affecting the world-wide rubber industry, collection, validating and publishing the authoritative statistics on the production, consumption and trade in natural and synthetic rubber. They are mainly financed by member Governments' contributions. Of the approved budget, 60 % shall be met by basic contributions as paid in equal amount by all member Governments. The balance of 40 % shall be paid by member Governments in proportion to their production or consumption (whichever is the larger) of new rubber in the calendar year previous to the financial year in question.(5) After final liquidation of the International Natural Rubber Council (Inro) on 31 August 2001, future dialogue between natural rubber exporting and importing countries would best be achieved by strengthening the long existing Irsg, being the forum for the discussion of matters affecting the supply and demand for both synthetic and natural rubber.(6) Several EU Member States are member of the Irsg, namely: Belgium, France, Germany, Italy, The Netherlands, Spain and the United Kingdom.(7) The Council of the European Union on the basis of the recommendation of its Working Party on Commodities has invited the Commission to take the necessary steps to enable the European Community to join this Study Group as a full member.HAS DECIDED AS FOLLOWS:Article 1The Constitution and the Rules of Procedure of the International Rubber Study Group are hereby accepted by the European Community.The text of the Constitution and the Rules of Procedure are annexed.Article 2The President of the Council is hereby authorised to designate the persons empowered to lodge the procedure for joining the Irsg membership on behalf of the Community.Done at Brussels,For the CouncilThe PresidentANNEX I Constitution and Rules of Procedure of the International Rubber Study GroupConstitutionTerms of Reference1. Membership of the International Rubber Study Group shall be open to countries interested in the production or consumption of, or trade in, natural and synthetic rubbers.2. Members shall contribute on an agreed basis the income required for the activities of the Group.3. The headquarters of the Group shall be in London and the Group shall maintain there a Secretariat for conducting its work, primarily for the collection and dissemination of statistics.4. The Group shall meet periodically at times and places convenient to members for the purposes of reviewing the statistical position and of discussing common problems of the rubber industry.5. The Group shall make or commission such studies of the world rubber situation as it sees fit, paying regard particularly to the provision of comprehensive information on the supply and demand position and its probable development.6. The Group shall consider measures designed to expand world consumption of rubber.7. The Group shall consider how best to deal with any special difficulties of concern to members, and may submit reports and recommendations thereon.8. Other governments and intergovernmental organisations which express an interest may be informed of the studies made and of the results of discussions as thought fit.Obligations of Members9. Members undertake in so far as possible to furnish the Secretariat with statistics concerning the production and consumption of, and trade in, rubber for their respective territories and with such other information as is pertinent to current estimates and future trends.10. Of the approved annual budget, 60 % shall be met by basic contributions as paid in equal amount by all Member Governments.11. The balance of 40 % of the approved budget shall be paid by Member Governments in proportion to their production or consumption (whichever is the larger) of new rubber in the calendar year previous to the financial year in question. Provided that if the absence of the necessary statistics makes it impossible to assess a contribution according to this rule, the Executive Committee shall determine by the best information available the contribution to be paid and shall invite the Government concerned to agree to this assessment.12. New members joining the Group during the course of a financial year shall contribute to the budget as follows:i) from 1st July to 30th September, the full basic contribution;ii) from 1st October to 31st December, three-quarters of the basic contribution;iii) from 1st January to 31st March, one-half of the basic contribution;iv) from 1st April to 30th June, one-quarter of the basic contribution.13. All sums due from Member Governments shall be paid in their respective national currencies if convertible into United Kingdom currency; otherwise in United Kingdom currency.14. Members with two years' contributions unpaid shall, unless the Group otherwise decides, cease to enjoy privileges of membership until arrears and contributions for the current year have been met.Organisation and Procedures15. The Group shall meet at least once each calendar year and at such other times as the Executive Committee may determine.16. The Group shall meet in London or such other place as it or the Executive Committee may decide on the invitation of a Member Government.17. The Member Governments constituting the Group shall each appoint one representative who may be accompanied by advisers at any Group meeting.18. If its representative is unable to be present at a meeting of the Group, any Member Government may be represented by an alternate.19. The presence of a simple majority of Group members including at least three natural rubber producers and six consumers, including at least three synthetic rubber producers, shall be necessary to constitute a quorum at any meeting of the Group.20. The officers of the Group shall comprise a Chairman, a Vice-Chairman and the Secretary-General.21. The Chairman and Vice-Chairman shall be elected by the Group and shall hold office for two financial years of the Group; they shall be eligible for re-election. When in any calendar year the Group's annual meeting takes place after the 30th June, the current Chairman and Vice-Chairman shall continue to hold office until a new Chairman and Vice-Chairman shall be elected at the next meeting of the Group.22. The Group shall appoint the Secretary-General who shall be the executive head of the Secretariat and shall be responsible to the Group and the Executive Committee for its work.23. The Group shall appoint an Executive Committee which shall exercise such powers, for and on behalf of the Group, as the Group shall decide and delegate, and which is empowered to act on urgent matters in a manner consistent with the objectives and policies of the Group.24. The Group may appoint such committees or advisory panels as may from time to time be deemed necessary and shall determine their membership and functions.25. The Group shall authorise the preparation and publishing of such studies of the world rubber position and such other subjects as it sees fit.26. An observer wishing to speak at a meeting of the Group shall inform the Chairman of his wish to speak prior to the session and the Chairman may, at his discretion, invite the observer to speak at an appropriate time. An observer may be invited by the Chairman at a meeting of the Group to take part in the work of any committee.27. The Group may at any time amend or revise these Rules of ProcedureFinance Rules28. The financial year shall run from the 1st July to the 30th June.29. A banking account in the name of the Secretariat of the International Rubber Study Group shall be maintained in London.30. The banking account shall be operated on cheques signed by:i) the Secretary-General orii) in his absence by the Chairman or Vice-Chairman of the Group or of the Executive Committee oriii) in their absence by any other substantive member of the Executive Committee. Beyond a certain limit to be determined by the Executive Committee, the cheques will require two signatures.31. The accounts of the Secretariat shall be kept by the Secretary-General.32. All monies received shall promptly be deposited in the Bank. An imprest account shall be kept by the Secretary-General for petty cash payments and receipts to an amount as decided by the Executive Committee.33. Auditors shall be appointed by the Group.34. The Secretary-General shall circulate to all Member Governments as soon as possible after the end of the financial year an annual statement of accounts certified by the Chairman or Vice-Chairman, the Secretary-General and the auditors.35. The Secretary-General shall be responsible for drawing up and submitting to the Executive Committee not later than the 31st March each year a provisional budget for the following financial year for approval by the Group. When in any calendar year the Group's annual meeting takes place after the 30th June, the provisional budget recommended for approval by the Executive Committee not later than the 31st March shall be circulated to Member Governments for comments and the Executive Committee shall be empowered to approve the budget for the ensuing year, taking into account any comments received from Member Governments.36. The Secretary-General shall be responsible for submitting to Member Governments the approved budget and shall require payment of the total contribution due from each government as set out in the said budget.37. The travelling and subsistence expenses of members attending meetings of the Group shall be borne by the respective Member Governments, and shall not be a charge on the funds of the Group.Executive Committee38. The Executive Committee shall consist of Member Governments who are elected at the Group's annual meeting. The Chairman and Vice-Chairman of the Group shall be members ex officio. All members of the Committee wishing to serve for a second or subsequent year shall submit to re-election at the annual meeting.39. The presence of a simple majority including two natural rubber producers and two consumers (including at least one synthetic rubber producer) shall form a quorum.40. The Chairman and the Vice-Chairman of the Committee shall be elected by the members of the Committee at the meeting of the Committee immediately following the annual meeting of the Group.41. The Committee shall be responsible for:a) reviewing progress on action outstanding between Group meetings and giving, when necessary, further instructions thereon to the Secretary-General;b) considering such other matters as may arise between meetings of the Group, making such recommendations as may be appropriate (see paragraph 45 below), and, where necessary and urgent, taking such action as is consistent with the objectives and policies of the Group;c) exercising such supervision of the administrative and financial work of the Secretariat as may be required;d) recommending a budget for approval by the Group or, as by the provision of paragraph 35 above, approving a budget for the ensuing year;e) submitting to the Group's annual meeting a report on the activities since the previous annual meeting of the Group;f) undertaking such other work for and on its behalf as the Group may decide.42. The Committee shall meet at times to be decided by its members or as may be convened by the Secretary-General and in any case within six months of the previous annual Group meeting.43. All Member Governments shall receive the agenda of meetings of the Committee in advance and shall receive the Minutes of meetings when approved.44. Any Member Government may, on request to the Chairman of the Committee, attend any meeting of the Committee for a particular item or the whole meeting.45. All recommendations of the Committee shall be circulated to Member Governments of the Group by the Secretary-General before they are implemented, with sufficient time for objections to be raised by any member if so desired.Statistical Committee46. The Statistical Committee shall consist of all members of the Group who wish to serve on it, and it shall have the assistance of a Committee of Expert Rubber Statisticians which shall be appointed annually by the Group on the recommendation of the Statistical Committee.47. The Committee shall elect its own Chairman who normally will also be Chairman of the Committee of Expert Rubber Statisticians and who shall hold office for one financial year and be eligible for re-election. When in any calendar year the Group's annual meeting takes place after the 30th June, the current Chairman shall continue to hold office until re-elected or a new Chairman is appointed at the next meeting of the Group.48. The Committee shall be responsible for:i) reviewing and reporting on rubber supply/demand positions;ii) examining and reporting on any cognate subject referred to it by the Group.49. The Committee shall not issue press releases unless approved by the Group at a meeting or at other times by the Executive Committee or by the Secretary-General.The Secretary-General and the Secretariat50. The Secretary-General shall be the executive head of the Secretariat and responsible to the Group for its work.51. The detailed responsibilities of the Secretary-General on such matters as finance, appointment of personnel, etc., shall be decided by the Executive Committee subject to directive by the Group. In all such matters the Secretary-General is deemed to act as an agent for all members of the Group.52. The Secretariat shall carry out all its work impartially, shall not publish previously unpublished material supplied by Member Governments without their prior approval, and shall not initiate discussions on policy questions.53. The functions of the Secretariat are:i) to provide the Group with the best possible information on statistics and on wider economic matters as these relate to rubber;ii) to provide a link between Member Governments on rubber matters between meetings of the Group;iii) to make the necessary preparations for meetings of the Group;iv) to maintain liaison with the other international organisations whose work is relevant and of interest to the work of the Group;v) to make such studies as the Group may direct in accordance with paragraphs 5 and 25.Rules of ProcedureAmendments to the Rules of Procedure were adopted by the Group at the Meetings of Heads of Delegations held during the 36th and 37th Assemblies of Nations in Tokyo and Phuket. Rules 1 to 10 were adopted at the meeting on 1st and 2nd March, 1995 and became effective on 2nd March 1995. Rules 11 and 12 were adopted at the meeting on 15th and 16th April 1996, and became effective on 16th April 1996.Rule 1 Voting proceduresa) Decisions at all Group, Executive Committee, and Committee meetings shall, whenever possible, be made by consensus without contrary votes, formal objections or reservations of position. Chairmen of meetings shall at all times strive to obtain consensus for all decisions, and where positions are reserved, sufficient time shall if at all possible be allowed for compromise and consensus to be achieved.b) If, in the opinion of the Chairman of the meeting there is no possibility of achieving consensus on any matter, it shall be put to a vote.c) Voting shall normally be conducted so as to maintain the maximum transparency in decision-making, and shall at the sole discretion of the Chairman of the meeting be by show of hands or by roll call. In exceptional circumstances the Chairman may, with the approval of a simple majority of those present and voting, decide that a secret ballot or a postal vote of the appropriate membership may be required.d) Decisions by vote shall, subject to the provisions of (e) below, normally be made by a simple majority of those present and voting, provided that a decision of the Group shall require an affirmative vote from at least three natural rubber producers and three rubber consumers, including two synthetic rubber producers, and that a decision of the Executive Committee shall require an affirmative vote from at least two natural rubber producers and two consumers, including one synthetic rubber producer.e) Decisions by vote concerning:i) approval or recommendation of the budget;ii) relief of obligations, suspension of rights or exclusion of Member Governments,shall require a two-thirds majority of those present and voting provided that an affirmative vote of a simple majority of natural rubber producers and of consumers counted separately shall be required.f) Decisions by vote concerningi) revision or termination of the Headquarters Agreement;ii) amendment of the Constitution or the Rules of Procedure;iii) location of Headquarters,shall be determined only by consensus.g) The Secretary-General may, with the consent of the Chairman of the Executive Committee, submit a proposal to a postal vote of the Executive Committee when an urgent decision is required. Members shall have the option of approval, disapproval or reference to the next meeting of the Executive Committee. Approval shall require affirmative votes as provided for in (d) and (e) above, except that if two natural rubber producers and two consumers (including one synthetic rubber producer) so require, the decision shall be deferred to the next meeting of the Executive Committee.h) The Chairman of the Executive Committee may, with the approval of a simple majority of the Executive Committee, refer any proposal to a postal vote of Members of the Group. Members of the Group shall have the option of approval, disapproval or reference to an Annual or Special Meeting of the Group. Approval shall require affirmative votes as provided for in (d) and (e) above, provided that if three natural rubber producers and three consumers (including two synthetic rubber producers) so require the decision shall be referred to an Annual or Special Group Meeting.i) The time period allowed for postal voting shall normally be thirty days from the date of posting, but in cases of extreme urgency a shorter period of not less than seven days may be approved by the Chairman of the Executive Committee.Rule 2 Powers of the Executive CommitteeNotwithstanding the powers conferred on it by Clauses 35 and 41 of the Constitution, the Executive Committee shall not be empowered to make decisions upon:a) relief of Member Governments from obligations of membership;b) suspension of rights of Member Government;c) exclusion of Member Government;d) renegotiation, extension or termination of the Headquarters Agreement;e) amendment of the Constitution or the Rules of Procedure;f) location of Headquarter;g) appointment of the Secretary-Genera;but may discuss all such matters with a view to making recommendations to Group Meetings.Rule 3 Membership contributionsa) Membership contributions shall be due on 1st July each year.b) If a Member Government has not paid its contribution in full by 1st December, the Secretary-General shall make an urgent request for immediate payment.c) If payment is not made in full by 1st February, the Secretary-General shall report the arrears to the Executive Committee which shall, unless in the particular circumstances it decides otherwise, recommend to the Group the suspension of all voting rights of the Member Government.d) If payment is not made in full by 1st April, the Executive Committee shall, unless in the particular circumstances it decides otherwise, recommend to the Group the suspension of all Secretariat services to the Member Government.e) The recommendations required under (c) and (d) above may be submitted to the Group by postal ballot as provided for under Rule 1(h) above.f) If a Member Government has not paid its contribution in full by the end of the financial year the value of the payment due shall be maintained by increasing it by the annual rate of inflation in the Headquarters country used in the calculation of the budget for each year for which the payment remains in arrears. The revised payment shall be calculated and notified to the Member Government by the Secretary-General at the end of each quarter of the financial year provided that this provision shall not apply to contributions due before 30 June 1995.g) No decision or action taken under the provisions of this clause shall prejudice the rights of the Member Government concerned to be represented at any Group Meeting at which the conditions of its membership are to be discussed, or to make representations to such meetings, nor shall such decisions or actions prevent or delay the consideration by the Group of suspension of the Member Government as provided under Clause 14 of the Constitution.Rule 4 Re-admission to the GroupAny request for re-admission to the Group by a Government suspended under Clause 14 of the Constitution with outstanding financial obligations shall be considered by the Executive Committee with a view to reaching an agreement for the discharge of the financial obligations. Any such agreement shall be submitted to a Group Meeting for approval.Rule 5 Withdrawal from the GroupNotice of withdrawal by a Member Government shall be delivered in writing to the Secretary-General by 1st February to be effective on 30th June and Member Governments giving notice after 1st February shall be liable for the Membership Contribution for the next ensuing financial year, except where the decision to withdraw is consequent upon changes to the Constitution or Rules of Procedure unacceptable to the Member Government, whereupon the requirements for notice and financial liability shall be waived. Any such notice of withdrawal shall be communicated by the Secretary-General to other Member Governments as soon as possible after its receipt.Rule 6 Appointment and terms of reference of auditorsa) The appointment of auditors under Clause 33 of the Constitution shall be made on the recommendation of the Secretary-General who shall, in consultation with the Chairman of the Executive Committee, be responsible for monitoring the performance of the auditors and inviting, at least every four years, competitive tenders from legally qualified auditing companies.b) The terms of appointment of the auditors shall be determined annually by the Executive Committee bearing in mind the need to review the efficiency of the administration and management of the Secretariat at appropriate intervals.Rule 7 Annual Assemblya) The Secretary-General shall provide in the budget a sum sufficient to hold a Group Meeting in London.b) When the Group holds an Assembly at the invitation of a Member Government, the host Government shall undertake to meet all costs borne by the Secretariat in connection with the Assembly in excess of the budgetary provision.c) Where the expenses incurred by the Secretariat in connection with the Assembly are less than the amount provided in the budget, the balance shall be credited to the Operating Fund.Rule 8 Economic Committeea) The Group shall establish an Economic Committee which shall meet at every Assembly and Group Meeting. It shall comprise all Members of the Group who wish to serve on it, and shall have the assistance of an Industry Advisory Panel.b) The Chairman of the Economic Committee, who shall be a named individual, shall be elected by the Committee from among its members for a term of two years.c) The function of the Committee shall be to agree, monitor and review the economic and techno-economic items on the Secretariat Work Programme and to make recommendations to the Group concerning the initiation, continuation and publication of papers prepared in the Work Programme.d) In its consideration of the Work Programme the Economic Committee shall take account of any views and recommendations made to it by the Industry Advisory Panel.Rule 9 Industry Advisory Panela) The Economic Committee shall establish an Industry Advisory Panel to provide a channel of communication with and input from all sides of the rubber sector, including industry, commerce, academy, research and technology, concerning the direction and content of the Secretariat Work Programme, and to make comments and recommendations thereon to the Economic Committee.b) The Chairman of the Industry Advisory Panel shall be the Secretary-General.c) Members of the Industry Advisory Panel shall be recommended to the Economic Committee by the Secretariat and the Panel members, bearing in mind the need to involve a wide cross-section of interests and the availability of members to participate in meetings. An agreed list of members shall be submitted by the Panel to every meeting of the Economic Committee for approval.d) The Industry Advisory Panel shall meet immediately before every Assembly and Group Meeting and to such other times as may be agreed by the Executive Committee to:i) discuss the economic and techno-economic factors affecting the elastomer industry, and its future development,ii) review and discuss the progress of the Secretariat Work Programme and to make recommendations for the inclusion of items in the Programme,iii) review and monitor the progress of projects funded by the Common Fund for Commodities or other bodies, and to review new proposals for submission for funding,iv) make reports and recommendations as considered appropriate to the Economic Committee.e) Members of the Industry Advisory Panel shall entitled to free attendance at the International Rubber Forum if they attend the Panel meeting immediately before the ForumRule 10 Panel of Associatesa) The Secretary-General shall establish a Panel of Associates to encourage interaction between industry and the Secretariat. Membership shall be available to any company or organisation with an interest in the rubber industry on payment of the appropriate annual membership fee.b) The annual membership fee shall be approved annually by the Executive Committee, and shall be fixed with regard to the benefits of membership with an appropriate differential between companies/organisations based in Member and non-Member countries.c) Members of the Panel of Associates shall be entitled to the following benefits:i) free subscription to the Rubber Statistical Bulletin and International Rubber Digest;ii) free copies of all Secretariat papers arising from the Work Programme;iii) free access of all Secretariat's information data base and to information from the Secretariat staff provided that the provision of this information is within the normal workload of the staff concerne;iv) one free place at every International Rubber Forum;v) an invitation for one person to attend meetings if the Committee of Expert Rubber Statisticians and the Industry Advisory Panel, provided that the cost of attendance is borne by the Panel Member.d) Entitlement to the benefits of Membership of the Panel of Associates shall be forfeited if the annual fee is not paid within six months of the anniversary of membership, and papers and reports shall not be provided until the membership fee is paid.Rule 11 Appointment of Vice-Chairmana) A Vice-Chairman shall normally be appointed or elected for all committees or advisory panels appointed by the Group pursuant to Clause 24 of the Constitution. The Vice-Chairman shall act as Chairman of the committee or advisory panel in the absence of the elected Chairman. If both are absent a Chairman shall be elected for the meeting from among those present.b) The Statistical Committee shall elect from its members at each meeting its own Vice-Chairman who shall be a named individual and who shall hold office until the next meeting of the Committee but who shall be eligible for re-election.c) The Committee of Expert Rubber Statisticians shall elect from its members at each meeting its own Vice-Chairman who shall be a named individual and who shall hold office, subject to confirmation of the appointment by the Statistical Committee, until the next annual meeting of the Committee of Expert Rubber Statisticians but shall be eligible for re-election.d) The Economic Committee shall elect from its members its own Vice-Chairman who shall be a named individual and who shall hold office for a period of two years but shall be eligible for re-election.e) The Industry Advisory Panel shall elect from among its members its own Vice- Chairman who shall be a named individual and who, subject to approval by the Economic Committee, shall hold office until the next annual meeting of the Panel but shall be eligible for re-election.Rule 12 Appointment of the Secretary-Generala) The appointment of the Secretary-General by the Group pursuant to Clause 22 of the Constitution shall, at a Special Group Meeting or Meeting of Heads of Delegation, be made from not more than two candidates who shall be recommended to the Group by a Selection Panel constituted for that purpose.b) The Selection Panel shall be established by the Executive Committee, normally at least twelve months before the expiry of the term of office of the incumbent Secretary-General.c) The Selection Panel shall comprise the Chairman of the Group and the Chairman of the Executive Committee who shall be Chairman and Vice-Chairman, respectively, of the Panel, and such other members of the Executive Committee who indicate willingness to attend. The incumbent Secretary-General shall attend meetings of the Selection Panel as an adviser without voting rights. All costs and expenses incurred in attendance at meetings of the Selection Panel and participation in the selection procedure by their representation shall be met by Member Governments.d) The Selection Panel shall agree the format of an advertisement for the post of Secretary-General. The advertisement shall be inserted on two occasions in the appropriate section of The Economist, and once in the Rubber Statistical Bulletin and International Rubber Digest. Copies of the advertisement shall be made available to all Member Governments who would ensure circulation within the rubber industry in their countries.e) The advertisement shall state inter alia that the appointment will be made for an initial period of three years at a level equivalent to D1 of the United Nations system, and that expenses incurred in attending interviews shall be borne by the applicants.f) Applications shall be received by the Secretary-General who shall be responsible for the administrative aspects of the recruitment process.g) The Selection Panel shall meet as required to select a short list of not more than six applicants for interview. In this selection process preference shall be given to applicants who are nationals of member countries who possess a recognised university or equivalent professional qualification in a relevant discipline, and who have experience in the rubber industry.h) Interviews with short-listed candidates shall be held with the objective of choosing unanimously or by consensus a candidate with the necessary qualities of experience, personality, impartiality and the ability to work effectively with senior officials of member and other governments, international and private organisations for recommendation to the Group for appointment as Secretary-General. In the event that a single candidate cannot be agreed, two candidates chosen by consensus may be submitted to the Group. An alternate candidate shall normally be submitted in case the selected candidate is prevented by ill-health or other reason for assuming the post.i) The appointment of the Secretary-General shall be made at a Special Meeting of the Group or Meeting of Heads of Delegations which shall be specially convened as necessary. In the event that an appointment cannot be agreed unanimously or by consensus when two names are submitted by the Selection Panel, the decision shall be made by vote under Rule 1(b) and (c) of the Rules of Procedure. The decision shall require a two-thirds majority of those present and voting provided that an affirmative vote of a simple majority of natural rubber producers and of consumers, counted separately, shall be required. The decision shall not be made by postal vote.LEGISLATIVE FINANCIAL STATEMENTPolicy area(s): Industrial CompetitivenessActivity(ies):Title of action: Community Membership of the International Rubber Study Group (IRSG)1. BUDGET LINE(S) + HEADING(S) B5 32602. OVERALL FIGURES2.1. Total allocation for action (Part B): EUR 60.500 for commitment (yearly)2.2. Period of application:2002 - permanent character2.3. Overall multiannual estimate on expenditure:a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)Once the EC has joined the IRSG, membership contributions need to be made (due on 1st July each year). Of the approved budget, 60% shall be met by basic contributions as paid in equal amount by all member Governments. The balance shall be paid by member Governments in proportion to their production or consumption (whichever is the largest) of new rubber in the calendar year previous to the financial year in question. The EC will only pay an equal share of the basic contribution. For the year 2002 this is estimated at 40 000 EUR.EUR million (to 3rd decimal place)>TABLE POSITION>b) Technical and administrative assistance and support expenditure(see point 6.1.2)>TABLE POSITION>>TABLE POSITION>c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)>TABLE POSITION>>TABLE POSITION>2.4. Compatibility with the financial programming and the financial perspective|X| Proposal compatible with the existing financial programming| | This proposal will entail reprogramming of the relevant heading in the financial perspective| | This may entail application of the provisions of the Interinstitutional Agreement.2.5. Financial impact on revenue:|X| No financial implications (involves technical aspects regarding implementation of a measure)or| | Financial impact - the effect on revenue is as follows:>TABLE POSITION>3. BUDGET CHARACTERISTICS>TABLE POSITION>4. LEGAL BASISArticle 1335. DESCRIPTION AND GROUNDS5.1. Need for Community intervention5.1.1. Objectives pursuedThe International Rubber Study group was founded in 1944. The Study Group provides a forum for the discussion of matters affecting the supply and demand for both synthetic and natural rubber. It covers all aspects of the world rubber industry, including marketing, shipping distribution, trade in raw materials and the manufacture and sale of rubber products.After final liquidation of the International Natural Rubber Organisation (INRO) on 31 August 2001, future dialogue between natural rubber exporting and importing countries would best be achieved by strengthening the long existing IRSG, being the forum for the discussion of matters affecting the supply and demand for both synthetic and natural rubber.Several EU Member States are already member of the IRSG, EC Membership will facilitate co-ordination and developing of a common position in (yearly) meetings of the Executive Committee.5.1.2. Measures taken in connection with ex ante evaluationThe financial contribution to the IRSG only consists of the membership contribution.The Secretary-General shall be responsible for drawing up and submitting to the Executive Committee not later than the 31st March each year a provisional budget for the following financial year for approval by the Group. The Secretary-General shall circulate to all Member Governments as soon as possible after the end of the financial year an annual statement of the accounts certified by the Chairman or Vice-Chairman, the Secretary-General and the auditors.5.1.3. Measures taken following ex post evaluation5.2. Actions envisaged and arrangements for budget interventionThe participation of the Community in the study groups was set out in a Council statement in an arrangement between the Council and the Commission. Each Member State may choose whether to be a member of the study group; membership of the Community will be decided by the Council. Participation will involve a common position with a single voice. The Commission representative will normally be the spokesperson.5.3. Methods of implementationGiven that the study groups were created to provide transparency in commodity markets and improve the global competitiveness of producers and transformers/consumers, the Commission's participation is being assured by DG ENTR, given its knowledge of the industrial sectors concerned. However, other DGs are invited to participate when dealing with specific items, like environment, statistics and customs.6. FINANCIAL IMPACT6.1. Total financial impact on Part B (over the entire programming period)The financial contribution to the IRSG only consists of the membership contribution.6.1.1. Financial interventionCommitments in EUR million (to the 3rd decimal place)>TABLE POSITION>6.1.2. Technical and administrative assistance, support expenditure and IT expenditure (Commitment appropriations)>TABLE POSITION>6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)Commitments in EUR million (to the 3rd decimal place)>TABLE POSITION>7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE7.1. Impact on human resources>TABLE POSITION>7.2. Overall financial impact of human resources>TABLE POSITION>The amounts are total expenditure for twelve months.7.3. Other administrative expenditure deriving from the action>TABLE POSITION>The amounts are total expenditure for twelve months.I. Annual total (7.2 + 7.3)  //  EUR 20 500II. Duration of action not determined  //  Not determinedIII. Total cost of action (I x II)  //  EUR8. FOLLOW-UP AND EVALUATION8.1. Follow-up arrangementsThe Commission representative will play an active role in the IRSG in order to safeguard optimally the interests of the Community.8.2. Arrangements and schedule for the planned evaluationWithin three years after having joined the IRSG, Commission services will evaluate the Community's role in terms of inputs (human resources) and output (e.g. the number of joint statements made, contacts with Secretary-General etc.).9. ANTI-FRAUD MEASURESSee "Constitution and Rules of Procedure" of the International Rubber Study Group.


               EUROPEAN COMMISSION
            Brussels, 3.5.2017
            COM(2017) 218 final
            Recommendation for a
            COUNCIL DECISION
            authorising the Commission to open negotiations on an agreement with the United Kingdom of Great Britain and Northern Ireland setting out the arrangements for its withdrawal from the European Union

               EXPLANATORY MEMORANDUM

               1.
                     CONTEXT OF THE PROPOSAL

               •Reasons for and objectives of the proposal

                  According to Article 50 of the Treaty on European Union, any Member State may decide to withdraw from the Union in accordance with its own constitutional requirement and shall, if it so decides, notify the European Council of its intention.

                  On 29 March 2017, the United Kingdom notified the European Council of its intention to withdraw from the Union and from the European Atomic Energy Community.

                  Article 50 of the Treaty on European Union provides that in the light of the guidelines provided by the European Council, the Union shall negotiate and conclude an agreement with the State wishing to leave the European Union, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union.

                  It is recalled that the date of entry into force of the withdrawal agreement should be at the latest 30 March 2019, unless the European Council, in agreement with the United Kingdom, unanimously decides to extend this period in accordance with Article 50(3) of the Treaty on European Union. Failing that, on 30 March 2019 at 00:00 (Brussels time), all Union Treaties and the Treaty establishing the European Atomic Energy Community cease to apply to the United Kingdom. The United Kingdom will become a third country from the withdrawal date. On the same date, the Treaties cease also to apply to the overseas countries and territories having special relations with the United Kingdom
                     1
                   and to the European territories for whose external relations the United Kingdom is responsible, to which the Treaties apply by virtue of Article 355 of the Treaty on the Functioning of the European Union.

                  The European Council adopted guidelines on 29 April 2017. In the light of these guidelines, the present Recommendation proposes that the Council authorises the Commission to open the negotiations for an agreement with the United Kingdom setting out the arrangements for its withdrawal from the European Union and from the European Atomic Energy Community, nominates the Commission as the Union negotiator, and addresses negotiating directives to the Commission.

                  The negotiations will be conducted in the light of the European Council guidelines, in line with the negotiating directives and with due regard to the resolution of the European Parliament of 5 April 2017. There will be a phased approach to the negotiations, as set out in the European Council guidelines. The recommended negotiating directives in Annex cover the first phase of the negotiations, which will prioritise matters which, at this stage, have been identified as strictly necessary to ensure an orderly withdrawal. Negotiating directives may be amended and supplemented as necessary throughout the negotiations, in particular to reflect the European Council guidelines as they evolve and to cover the subsequent phase of the negotiations.

                  An agreement on a future relationship between the Union and the United Kingdom can only be finalised and concluded once the United Kingdom has become a third country. However, Article 50 of the Treaty on European Union requires that the framework for the future relationship with the Union is taken into account in the agreement setting out the arrangements for the withdrawal. To this end, as soon as the European Council decides that sufficient progress has been achieved to allow negotiations to proceed to the next phase, an overall understanding with the United Kingdom on the framework for the future relationship should be identified during the second phase of the negotiations under Article 50.

                  Determining transitional arrangements under the withdrawal agreement, including bridges towards the foreseeable framework for the future relationship, in the light of the progress made, depends on the identification of an understanding over the framework for the future relationship between the Union and the United Kingdom which will be determined in the second phase of the negotiations. Therefore, matters that could be part of such transitional arrangements are not covered by the present recommended negotiating directives and will be identified at a later stage. This approach will allow an efficient allocation of the limited time that Article 50 of the Treaty on European Union imposes for the conclusion of the Agreement.

                  In accordance with the European Council guidelines, the following core principles will apply equally to the negotiations on an orderly withdrawal, to any preliminary and preparatory discussions on the framework for a future relationship, and to any form of transitional arrangements:

               –The Agreement will have to be based on a balance of rights and obligations, and ensure a level-playing field;

               –Preserving the integrity of the Single Market excludes participation based on a sector-by-sector approach;

               –A non-member of the Union, which does not have the same obligations as a member, cannot have the same rights and enjoy the same benefits as a member;

               –Participation in the Single Market requires the acceptance of all four freedoms;

               –Negotiations with the United Kingdom will be conducted as a single package. In accordance with the principle that nothing is agreed until everything is agreed, individual items cannot be settled separately. The Union will approach the negotiations with unified positions, exclusively through the channels set out in the European Council guidelines and in the negotiating directives and there will be no separate negotiations between individual Member States and the United Kingdom on matters pertaining to the withdrawal;

               –The Agreement will have to respect the autonomy of the Union as regards its decision-making as well as the role of the Court of Justice of the European Union.

               •Consistency with other Union policies

                  The negotiations and the Agreement under Article 50 of the Treaty on European Union will fully respect the Treaties and preserve the integrity and the autonomy of the Union legal order. They will promote the values, objectives, and interests of the Union, and ensure the consistency, effectiveness and continuity of its policies and actions.

               •Fundamental rights

                  According to Article 6 of the Treaty on European Union, the Union recognises the rights, freedoms and principles set out in the Charter of Fundamental Rights of the European Union, which has the same legal value as the Treaties. Moreover, fundamental rights, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and as they result from the constitutional traditions common to the Member States, constitute general principles of the Union's law.

                  These rights, freedoms and principles will continue to be fully preserved and protected in the Union, both during the process of negotiation with the United Kingdom under Article 50 of the Treaty on European Union, and after withdrawal of the United Kingdom from the Union.

               2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

               •Legal basis

                  The United Kingdom has notified its intention to withdraw from the European Union. As a consequence, Article 50 of the Treaty on European Union constitutes the legal basis for the negotiation and conclusion of a withdrawal agreement. It is recalled that in accordance with Article 106(a) of the Treaty establishing the European Atomic Energy Community, Article 50 of the Treaty on European Union applies also to the European Atomic Energy Community.

                  According to Article 218(3) of the Treaty on the Functioning of the European Union, to which Article 50 of the Treaty on European Union refers, the Commission shall submit recommendations to the Council, which shall adopt a decision authorising the opening of negotiations and nominate the Union negotiator.

               •Proportionality

                  The present Recommendation proposes to the Council to authorise the opening of negotiations and to nominate the Union negotiator, as required under Article 50 of the Treaty on European Union, in conjunction with Article 218(3) of the Treaty on the Functioning of the European Union. The purpose of the negotiations under Article 50 of the Treaty on European Union will be to ensure an orderly withdrawal of the United Kingdom from the Union. As an agreement on a future relationship between the Union and the United Kingdom can only be concluded once the United Kingdom has become a third country, the negotiations will not address matters relating to the framework for the future relationship between the EU and the United Kingdom, except by taking into account that framework in the negotiations.

               •Choice of the instrument

                  According to Article 50 of the Treaty on European Union, an agreement is to be negotiated with the United Kingdom setting out the arrangements for its withdrawal from the European Union. Article 218(3) of the Treaty on the Functioning of the European Union provides that the Commission is to submit recommendations to the Council, which shall adopt a decision nominating the Union negotiator and authorising the opening of negotiations. A Council decision is the appropriate instrument for the Council to authorize the Commission in that respect.

               3.BUDGETARY IMPLICATIONS

                  The present Recommendation which proposes that the Council nominates the Union negotiator and authorises the Commission to open negotiations with the United Kingdom is not expected to have immediate budgetary implications, in so far as the negotiating process in concerned. The budgetary implications of the agreement under Article 50 of the Treaty on European Union, resulting from the above mentioned negotiations, will be outlined when the relevant proposals on signature and conclusion of the withdrawal agreement are presented.

               4.OTHER ELEMENTS

               •Detailed explanation of the specific provisions of the proposal

                  In Article 1 of the recommended Council Decision, the Council authorises the opening of negotiations and nominates the Commission as the Union negotiator for the agreement with the United Kingdom setting out the arrangements for its withdrawal from the Union and from the European Atomic Energy Community.

                  In Article 2 of the recommended Council Decision, the Council establishes that the negotiations shall be conducted in the light of the guidelines provided by the European Council and of the directives set out in the Annex.

                  The recommended Annex to the Council Decision sets out the negotiating directives for the following matters:

               –Citizens' rights;

               –Single financial settlement related to the Union budget and to the termination of the membership of the United Kingdom of the institutions or bodies established by the Treaties, as well as to the participation of the United Kingdom in specific funds and facilities related to Union policies;

               –Arrangements regarding goods placed on the market and ongoing procedures based on Union law;

               –Arrangements relating to other administrative issues relating to the functioning of the Union;

               –Governance of the Agreement.

               •Publication of the Decision and of the Negotiating Directives set out in the Annex

                  The Commission proposes to the Council to make public the Decision authorising the opening of negotiations for an agreement with the United Kingdom of Great Britain and Northern Ireland setting out the arrangements for its withdrawal from the European Union and nominating the Commission as the Union negotiator, as well as the Negotiating Directives set out in its Annex.

               Recommendation for a

               COUNCIL DECISION

               authorising the Commission to open negotiations on an agreement with the United Kingdom of Great Britain and Northern Ireland setting out the arrangements for its withdrawal from the European Union

               THE COUNCIL OF THE EUROPEAN UNION,

               Having regard to the Treaties, and in particular Article 50 of the Treaty on European Union, in conjunction with Article 218(3) of the Treaty on the Functioning of the European Union,

               Having regard to the guidelines of the European Council of 29 April 2017,

               Having regard to the Recommendation from the European Commission,

               Whereas:

               (1)On 29 March 2017, the United Kingdom of Great Britain and Northern Ireland notified to the European Council of its intention to withdraw from the European Union.

               (2)On 29 April 2017, the European Council adopted guidelines that define the framework for negotiations under Article 50 of the Treaty on European Union and set out the overall principles that the Union will pursue throughout the negotiation.

               (3)In the light of the guidelines of the European Council, the Union should negotiate and conclude an agreement with the United Kingdom setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union ('Withdrawal Agreement').

               (4)The Treaties will cease to apply to the United Kingdom from the date of entry into force of the Withdrawal Agreement or, failing that, two years after the notification, unless the European Council, in agreement with the United Kingdom, unanimously decides to extend this period.

               (5)The negotiations should thus be opened immediately with a view to concluding a withdrawal agreement.

               (6)On 5 April 2017, the European Parliament adopted a resolution setting out its position on the withdrawal negotiations.

               (7)The Commission should be authorised to open the negotiations for a Withdrawal Agreement and should be nominated as the Union negotiator.

               (8)In accordance with Article 106(a) of the Treaty establishing the European Atomic Energy Community, Article 50 of the Treaty on European Union applies to the European Atomic Energy Community.

               HAS ADOPTED THIS DECISION:

               Article 1

               The Commission is hereby authorised to open negotiations, on behalf of the Union, for an agreement with the United Kingdom of Great Britain and Northern Ireland setting out the arrangements for its withdrawal from the European Union and from the European Atomic Energy Community, taking account of the framework for its future relationship with the Union, and is hereby nominated as the Union negotiator.

               Article 2

               The negotiations shall be conducted in the light of the guidelines adopted by the European Council and in line with the negotiating directives set out in the Annex.

               Article 3

               This Decision is addressed to the Commission.

               Done at Brussels,

                     For the Council

                     The President

                     (1)
                  Listed in the twelve last indents of Annex II to the Treaty on the Functioning of the European Union.

    ---documentbreak---

               EUROPEAN COMMISSION
            Brussels, 3.5.2017
            COM(2017) 218 final
            ANNEX
            to the
            Recommendation for a COUNCIL DECISION
            authorising the opening of the negotiations for an agreement with the United Kingdom of Great Britain and Northern Ireland setting out the arrangements for its withdrawal from the European Union

               ANNEX
               Directives for the negotiation of an agreement with the United Kingdom of Great Britain and Northern Ireland setting out the arrangements for its withdrawal from the European Union

               I.Objective of the withdrawal agreement

               1.Following the notification by the United Kingdom of Great Britain and Northern Ireland (hereinafter "the United Kingdom") of its intention to withdraw from the European Union, the Union shall negotiate and conclude a withdrawal agreement with the United Kingdom in accordance with Article 50 of the Treaty on European Union ("the Agreement").

               2.This Agreement will set out the arrangements for the withdrawal of the United Kingdom, taking account of the framework for its future relationship with the Union.

               3.The main objective of the Agreement is to ensure an orderly withdrawal of the United Kingdom from the European Union and from the European Atomic Energy Community. In these negotiating directives the term "the Union" means the European Union founded on the Treaty on European Union and on the Treaty on the Functioning of the European Union and/or, as the case may be, the European Atomic Energy Community founded on the Treaty establishing the European Atomic Energy Community.

               4.The Agreement will be negotiated in the light of the European Council guidelines and of in line with the negotiating directives. The negotiating directives build on the European Council guidelines by developing the Union's positions for the withdrawal negotiations in full respect of the objectives, principles and positions that the guidelines set out. The negotiating directives may be amended and supplemented as necessary throughout the negotiations, in particular to reflect the European Council guidelines as they evolve.

               II.Nature and scope of the Agreement

               5.The Agreement will be negotiated and concluded by the Union. In this respect, Article 50 of the Treaty on European Union confers on the Union an exceptional horizontal competence to cover in this agreement all matters necessary to arrange the withdrawal. This exceptional competence is of a one-off nature and strictly for the purposes of arranging the withdrawal from the Union. The exercise by the Union of this specific competence in the Agreement will not affect in any way the distribution of competences between the Union and the Member States as regards the adoption of any future instrument in the areas concerned.

               6.The Agreement should recall that Union law (including all primary law, in particular the Treaty on European Union, the Treaty on the Functioning of the European Union, the Accession Treaties and the Treaty establishing the European Atomic Energy Community, as well as the secondary law and international agreements) ceases to apply to the United Kingdom on the date of entry into force of the withdrawal agreement ("withdrawal date").

               7.In accordance with Article 50 of the Treaty on European Union and with the European Council guidelines, the Agreement should also recall that Union law ceases to apply on the withdrawal date to the overseas countries and territories having special relations with the United Kingdom
                  1
                and to the European territories for whose external relations the United Kingdom is responsible, to which the Treaties apply by virtue of Article 355 of the Treaty on the Functioning of the European Union. On the territorial scope of the withdrawal agreement and of the future framework, the negotiating directives should fully respect paragraphs 4 and 24 of the European Council guidelines.

               8.The Agreement should set a withdrawal date which is at the latest 30 March 2019 at 00:00 (Brussels time), unless the European Council, in agreement with the United Kingdom, unanimously decides to extend this period in accordance with Article 50(3) of the Treaty on European Union. The United Kingdom will become a third country from the withdrawal date.

               III.Purpose and scope of these negotiating directives

               9.The European Council guidelines set out a two-phased approach to the negotiations. The first phase will aim to:

               –Provide as much clarity and legal certainty as possible to citizens, businesses, stakeholders and international partners on the immediate effects of the United Kingdom's withdrawal from the Union;

               –Settle the disentanglement of the United Kingdom from the Union and from all the rights and obligations the United Kingdom derives from commitments undertaken as a Member State.

               10.The present set of negotiating directives is intended for the first phase of the negotiations. In line with the aim established for the first phase of the negotiations by the European Council, these negotiating directives prioritise matters which, at this stage, have been identified as strictly necessary to ensure an orderly withdrawal of the United Kingdom from the Union.

               11.Safeguarding the status and rights of the EU27 citizens and their families in the United Kingdom and of the citizens of the United Kingdom and their families in the EU27 Member States is the first priority for the negotiations because of the number of people directly affected and of the seriousness of the consequences of the withdrawal for them. The Agreement should provide the necessary effective, enforceable, non-discriminatory and comprehensive guarantees for those citizens' rights, including the right to acquire permanent residence after a continuous period of five years of legal residence.

               12.An orderly withdrawal of the United Kingdom from the Union requires settling the financial obligations resulting from the whole period of the UK membership in the Union. Hence, the methodology for the financial settlement based on the principles laid down in section III.2 has to be established in the first phase of the negotiations.

               13.In order to avoid a legal vacuum and, to the extent possible address uncertainties, it has been identified at this stage that the Agreement should clarify the situation of goods placed on the market before the withdrawal date as well as of the ongoing procedures listed in section III.3.

               14.In line with the European Council guidelines, the Union is committed to continuing to support peace, stability and reconciliation on the island of Ireland. Nothing in the Agreement should undermine the objectives and commitments set out in the Good Friday Agreement and its related implementing agreements; the unique circumstances and challenges on the island of Ireland will require flexible and imaginative solutions. Negotiations should in particular aim to avoid the creation of a hard border on the island of Ireland, while respecting the integrity of the Union legal order. Full account should be taken of the fact that Irish citizens residing in Northern Ireland will continue to enjoy rights as EU citizens. Existing bilateral agreements and arrangements between Ireland and the United Kingdom, such as the Common Travel Area, which are in conformity with EU law, should be recognised. The Agreement should also address issues arising from Ireland’s unique geographic situation, including transit of goods (to and from Ireland via the United Kingdom). These issues will be addressed in line with the approach established by the European Council guidelines.

               15.In line with the European Council guidelines, the Union should agree with the United Kingdom on arrangements as regards the Sovereign Base Areas of the United Kingdom in Cyprus and recognise in that respect bilateral agreements and arrangements between the Republic of Cyprus and the United Kingdom which are compatible with Union law, in particular as regards safeguarding the rights and interests of those Union citizens residing or working in the Sovereign Base Areas.

               16.The Agreement should ensure the necessary protection of the Union's interests in the United Kingdom.

               17.The Agreement should contain provisions relating to the overall governance of the Agreement. Such provisions must include effective enforcement and dispute settlement mechanisms that fully respect the autonomy of the Union and of its legal order in order to guarantee the effective implementation of the commitments under the Agreement.

               18.In addition, in line with the European Council guidelines, a constructive dialogue should be engaged as early as practicable with the United Kingdom on a possible common approach towards third country partners, international organisations and conventions in relation to the international commitments contracted before the withdrawal date, by which the United Kingdom remains bound.

               19.As soon as the European Council decides that sufficient progress has been achieved to allow negotiations to proceed to the next phase, there will be new sets of negotiating directives. In this context, matters that could be subject to transitional arrangements (i.e. bridges towards the foreseeable framework for the future relationship) will be included in future sets of negotiating directives in the light of the progress made. This approach will allow an efficient allocation of the limited time that Article 50 of the Treaty on European Union imposes for the conclusion of the Agreement by avoiding the need to address the same matter several times at different phases of the negotiations.

               III.1.Citizens' rights

               20.The Agreement should safeguard the status and rights derived from Union law at the withdrawal date, including those the enjoyment of which will intervene at a later date (e.g. rights related to old age pensions) both for EU27 citizens residing (or having resided) and/or working (or having worked) in the United Kingdom and for United Kingdom citizens residing (or having resided) and/or working (or having worked) in one of the Member States of the EU27. Guarantees to that effect in the Agreement should be reciprocal and should be based on the principle of equal treatment amongst EU27 citizens and equal treatment of EU27 citizens as compared to United Kingdom citizens, as set out in the relevant Union acquis. Those rights should be protected as directly enforceable vested rights for the life time of those concerned.

               21.The Agreement should cover at least the following elements:

               (a)Definition of the persons to be covered: the personal scope should be the same as that of Directive 2004/38 (both economically active, i.e. workers and self-employed, and inactive persons, who have resided in the UK or EU27 before the withdrawal date, and their family members who accompany or join them at any point in time before or after the withdrawal date). In addition, the personal scope should include persons covered by Regulation 883/2004 (e.g. frontier workers).

               (b)Definition of the rights to be protected: this definition should include at least the following rights:

               (i)the residence rights derived from Articles 21, 45 and 49 of the Treaty on the Functioning of the European Union and set out in Directive 2004/38 (same material scope, covering inter alia the right of permanent residence after a continuous period of five years of legal residence) and the rules relating to those rights; any document to be issued in relation to the residence rights (for example, registration certificates, residence cards or certifying documents) should have a declaratory nature and be issued under a simple and swift procedure either free of charge or for a charge not exceeding that imposed on nationals for the issuing of similar documents;

               (ii)the rights and obligations set out in Regulation 883/2004 on the coordination of social security systems and in Regulation 987/2009 implementing Regulation 883/2004 (including future amendments of both Regulations) covering inter alia, rights to aggregation, export of benefits, and principle of single applicable law;

               (iii)the rights set out in Regulation 492/2011 on freedom of movement for workers within the Union (e.g. access to the labour market, to pursue an activity, social and tax advantages, training, housing, collective rights);

               (iv)the right to take up and pursue self-employment derived from Article 49 of the Treaty on the Functioning of the European Union.

               22.For reasons of legal certainty, the Agreement should ensure, in the United Kingdom and in the EU27, the protection, in accordance with Union law rules applicable before the withdrawal date, of recognised diplomas, certificates and other evidence of formal qualification obtained in any of the Union Member States before that date. The Agreement should also ensure that diplomas, certificates or other evidence of formal qualification obtained in a third country and recognised in any of the Union Member States before the withdrawal date in accordance with Union law rules applicable before that date continue to be recognised also after the withdrawal date. It should also provide for arrangements relating to procedures for recognition which are ongoing on the withdrawal date.

               III.2.Financial settlement

               23.A single financial settlement should ensure that both the Union and the United Kingdom respect the obligations resulting from the whole period of the United Kingdom membership in the Union. The negotiations relating to the methodology for the financial settlement should be based on the following principles.

               24.There should be a single financial settlement related to :

               -the Union budget

               -the termination of the membership of the United Kingdom of all bodies or institutions established by the Treaties
                  2
                (e.g. the European Investment Bank, the European Central Bank
                  3
               );

               -the participation of the United Kingdom in specific funds and facilities related to Union policies (e.g. the European Development Fund and the Facility for Refugees in Turkey).

               25.This single financial settlement should be based on the principle that the United Kingdom must honour its share of the financing of all the obligations undertaken while it was a member of the Union.

               26.In accordance with paragraph 10 of the European Council guidelines, these obligations cover liabilities, including contingent liabilities and any other obligations deriving from a basic act within the meaning of Article 54 of the Financial Regulation
                  4
               . In addition, the United Kingdom should fully cover the specific costs related to the withdrawal process such as the relocation of the agencies or other Union bodies.

               27.The calculation method should be based on official consolidated annual accounts to be supplemented, as necessary, by making use of interim accounts. It will also use amounts from the relevant basic acts (including reference amounts and their follow-up through the financial programming). The obligations should be defined in euro.

               28.The calculation method of the United Kingdom's obligations towards the Union budget should be based on the own resources decision
                  5
                and take into account the historical evidence of its share of the financing before the withdrawal date.

               29.Modalities of payments should be agreed in order to mitigate the impact of the withdrawal on the budget for the Union.

               30.The Agreement should therefore contain:

               (a)A calculation of the global amount that the United Kingdom has to honour in order to settle its financial obligations toward the Union budget, all institutions or bodies established by the Treaties, and other issues with a financial impact. The global amount may be subject to future annual technical adjustments.

               (b)A schedule of the annual payments to be made by the United Kingdom and the practical modalities for making these payments.

               (c)Transitional rules to ensure control by the Commission (or, where applicable, another body responsible under Union law before the withdrawal date), the Court of Auditors, OLAF and the power to adjudicate of the Court of Justice of the European Union for past payments/recovery orders to United Kingdom beneficiaries and any payments made to United Kingdom beneficiaries after the withdrawal date to honour all legal commitments (including possible loans) authorised by the responsible entity before the withdrawal date.

               (d)Possible arrangements in relation with legal commitments or future legal commitments made towards United Kingdom beneficiaries after the withdrawal date (e.g. concerning the managing authorities for the payment of United Kingdom beneficiaries).

               (e)Specific rules to address the issue of contingent liabilities assumed by the Union budget or specific institutions or bodies or funds (such as loans made by the European Investment Bank and the European Investment Fund).

               III.3. Situation of goods placed on the market and outcome of procedures based on Union law

               A. Goods placed on the market under Union law before the withdrawal date

               31.The Agreement should ensure that any good lawfully placed on the market of the Union on the basis of Union law before the withdrawal date can continue to be made available on the market or put into service after that date both in the United Kingdom and in the EU27 under the conditions set out in the relevant Union law applicable before the withdrawal date.

               B. Ongoing judicial cooperation between Member States under Union law

               32.The Agreement should provide for arrangements relating to judicial cooperation proceedings governed by Union law which are ongoing on the withdrawal date. It should establish in particular that such procedures remain governed until their completion by the relevant provisions of Union law applicable before the withdrawal date.

               33.Regarding judicial cooperation in civil and commercial matters between the United Kingdom and the EU27, the Agreement should ensure that the recognition and execution of national judicial decisions handed down before the withdrawal date remain governed by the relevant provisions of Union law applicable before the withdrawal date. The Agreement should also ensure the continued application of the rules of Union law relating to choices of forum and choices of law made before the withdrawal date.

               C. Ongoing administrative and law enforcement cooperation procedures under Union law

               34.The Agreement should provide for arrangements relating to administrative and law enforcement cooperation procedures, including verification, governed by Union law which are ongoing on the withdrawal date. Such arrangements should in particular ensure that these procedures remain governed until their completion by the relevant provisions of Union law applicable before the withdrawal date. They should also establish rules for the possible use of information and data in law enforcement investigations and criminal proceedings ongoing on the withdrawal date. They should cover both information and data received/held by United Kingdom which originates from the EU27 or Union institutions, bodies, offices and agencies, and information and data received/held by the EU27 or Union institutions, bodies, offices and agencies which originates from the United Kingdom. They should comprise rules on the protection of personal data.

               D. Ongoing Union judicial and administrative procedures

               35.The Agreement should provide for arrangements relating to:

               (a)Judicial proceedings pending before the Court of Justice of the European Union on the withdrawal date involving the United Kingdom, United Kingdom natural and/or legal persons (including preliminary references); the Court of Justice should remain competent to adjudicate in these proceedings and its rulings must be binding upon the United Kingdom;

               (b)Ongoing administrative procedures in the Union institutions, bodies, offices and agencies concerning the United Kingdom (for example infringements proceedings, state aid) or, where applicable, concerning United Kingdom natural or legal persons;

               (c)The possibility to commence both administrative procedures before the Union institutions and judicial proceedings before the Court of Justice of the European Union concerning the United Kingdom (for example infringements proceedings, state aid) after the withdrawal date for facts that have occurred before the withdrawal date;

               (d)Continued enforceability of Union acts that impose pecuniary obligations and of judgments of the Court of Justice of the European Union, adopted or rendered before the withdrawal date or in the course of ongoing judicial and administrative proceedings.

               III.4.Other administrative issues relating to the functioning of the Union

               36.The Agreement should contain the necessary provisions relating to the protection of the property, funds, assets and operations of the Union and its institutions or bodies, and of their personnel (including retired personnel) and members of their family, as provided for in the Treaties and the Protocols to the Treaties (in particular Protocol No. 7 on the Privileges and Immunities of the European Union).

               37.The Agreement should ensure, where appropriate, the transfer to the United Kingdom of the ownership of:

               (a)
                     Special fissile material located on the territory of the European Atomic Energy Community which is currently the property of the said Community in accordance with Article 86 of the Treaty establishing the European Atomic Energy Community, the right of use of which is currently with a natural or legal person, whether public or private, in the United Kingdom;

               (b) European Atomic Energy Community property located in the United Kingdom used for the purposes of providing safeguards in accordance with the Treaty establishing the European Atomic Energy Community.

               The Agreement should also provide that the United Kingdom assumes all rights and obligations associated with the ownership of materials or property transferred and regulate other questions related to material and property under the Treaty establishing the European Atomic Energy Community, in particular safeguards obligations to be applied to the material referred to above.

               38.The Agreement should also provide that the United Kingdom ensures, within its jurisdiction, the continued respect by members of Union institutions, bodies, offices and agencies, members of committees, officials and other servants of the Union of the obligations incurred by them under Article 339 of the Treaty on the Functioning of the European Union before the withdrawal date.

               III.5.Governance of the Agreement

               39.The Agreement should set up an institutional structure to ensure an effective enforcement of the commitments under the Agreement, bearing in mind the Union's interest in effectively protecting its autonomy and its legal order, including the role of the Court of Justice of the European Union.

               40.It should contain appropriate institutional arrangements allowing for the adoption of measures to deal with unforeseen situations not covered in the Agreement and for the incorporation of future amendments to Union law in the Agreement where this is necessary for the proper implementation of the Agreement.

               41.The Agreement should include provisions ensuring the settlement of disputes and the enforcement of the Agreement. In particular, these should cover disputes in relation to the following matters:

               –continued application of Union law;

               –citizens' rights;

               –application and interpretation of the other provisions of the Agreement, such as the financial settlement or measures adopted by the institutional structure to deal with unforeseen situations.

               42.In these matters, the jurisdiction of the Court of Justice of the European Union (and the supervisory role of the Commission) should be maintained. For the application and interpretation of provisions of the Agreement other than those relating to Union law, an alternative dispute settlement should only be envisaged if it offers equivalent guarantees of independence and impartiality to the Court of Justice of the European Union.

               43.The Agreement should foresee that any reference to concepts or provisions of Union law made in the Agreement must be understood as including the case-law of the Court of Justice of the European Union interpreting such concepts or provisions before the withdrawal date. Moreover, to the extent an alternative dispute settlement is established for certain provisions of the Agreement, a provision according to which future case-law of the Court of Justice of the European Union intervening after the withdrawal date must be taken into account in interpreting such concepts and provisions should be included.

               IV.Procedural arrangements for the conduct of the negotiations

               44.In line with the Statement of the Heads of State or Government of 27 Member States, as well as of the Presidents of the European Council and the European Commission, these negotiating directives establish the detailed arrangements governing the relationship between the Council and its preparatory bodies, on the one hand, and the Union negotiator on the other.

               45.The Union negotiator will conduct negotiations with the United Kingdom in continuous coordination and permanent dialogue with the Council and its preparatory bodies. In this respect, in full compliance with the institutional balance set out by the Treaties, the Council and Coreper, assisted by the Working Party on Article 50, will provide guidance to the Union negotiator, in light of the European Council guidelines and in line with the negotiating directives.

               46.The Union negotiator will in a timely manner consult and report to the preparatory bodies of the Council. To that end, the Council will organise before and after each negotiating session a meeting of the Working Party on Article 50.  The Union negotiator should provide in a timely manner the necessary information and documents relating to the negotiations.

                     (1)
                  Listed in the twelve last indents of Annex II to the Treaty on the Functioning of the European Union.

                     (2)
                   This is without prejudice to the statutory requirements specific to the institutions or bodies concerned stemming in particular from the relevant Protocols to the Treaties.

                     (3)
                   In accordance with Article 47 of the Protocol (No 4) to the Treaties, Decision ECB/2010/28 of 13 December 2010 on the paying-up of the European Central Bank’s capital by the non-euro area national central banks (2011/22/EU) has established the extent and form of subscribed and paid-up ECB capital in relation to the Bank of England 's share. The paid-up capital is a contribution to the operational costs of the European Central Bank.

                     (4)
                  Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002, OJ L 298, 26.10.2012, p. 1–96.

                     (5)
                   Council Decision (2014/335/EU, Euratom) of 26 May 2014 on the system of own resources of the European Union, OJ L 168, 7.6.2014, p. 105–111


RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMISSION TO NEGOTIATE A FRAMEWORK AGREEMENT FOR SCIENTIFIC AND TECHNICAL COOPERATION WITH AUSTRIA


RECOMMENDATION FOR A COUNCIL DECISION AUTHORIZING THE COMMISSION TO CONDUCT NEGOTIATIONS TO ENABLE THE EUROPEAN ECONOMIC COMMUNITY TO BECOME A CONTRACTING PARTY TO THE EUROPEAN AGREEMENT LIMITING THE USE OF CERTAIN DETERGENTS IN WASHING AND CLEANING PRODUCTS


RECOMMENDATION FOR A COUNCIL DECISION ON NEGOCIATING DIRECTIVES CONCERNING THE FINAL CLAUSES OF THE CONVENTION ON THE LAW OF TREATIES CONCLUDED BETWEEN STATES AND INTERNATIONAL ORGANIZATIONS OR BETWEEN TWO OR MORE INTERNATIONAL ORGANIZATIONS FOR THE CONSULTATIONS TO BE HELD IN NEW YORK IN JULY