Commission proposes to extend measures on rules of origin that facilitate EU market access for Algeria, Egypt, Jordan, Morocco, Palestine and Tunisia

The measure puts production in these countries on the same footing with production in the EU and, as such, facilitates their market access to the EU and promotes their economic development.

The Euro-Mediterranean Agreements establishing associations between the EU and its Member States, of the one part, and Algeria, Egypt, Jordan, Morocco, Palestine and Tunisia, of the other part, provide for the establishment of a free trade area between the EU and these countries. Amongst others, they provide that industrial products originating in the EU may be imported free of customs duty into these countries and that products originating in these countries may be imported free of customs duty into the EU. This is subject to the condition called ‘prohibition of duty drawback’, meaning that customs duty paid on imported materials used in the manufacture of the products and which are not originating in the country concerned or in the EU should not be reimbursed.

However, as levels of customs duty applied by Algeria, Egypt, Jordan, Morocco, Palestine and Tunisia generally exceed those applied by the EU, the origin protocols to the Association Agreements provide for a partial waiver of the prohibition of drawback for products imported into the EU from these countries. The waiver allows these countries not to levy customs duty on materials used in manufacture in excess of a rate of 4% (for industrial products other than textile and textile articles) or 8% (textile and textile articles), which are the corresponding average levels of the conventional rates of duty applied by the EU. The measure thus puts industrial production in these countries on the same footing with production in the EU.