17 Customs: illicit trade in tobacco
products
| (a)
(35218)
12605/13
COM(13) 538
(b)
(35219)
12606/13
COM(13) 539
|
Draft Council Decision on the signing of the Protocol to Eliminate Illicit Trade in Tobacco Products to the World Trade Organisation's Convention on Tobacco Control, in so far as the provisions of the Protocol which do not fall under Title V of Part III of the Treaty on the Functioning of the European Union are concerned
Draft Council Decision on the signing of the Protocol to Eliminate Illicit Trade in Tobacco Products to the World Trade Organisation's Convention on Tobacco Control, in so far as the provisions of the Protocol are concerned which fall under Title V of Part III of the Treaty on the Functioning of the European Union are concerned
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| Legal base | (a) Articles 33, 113, 114, 207 and 218(5) and (8); —; unanimity
(b) Articles 82(1), 83, 87 (2) and 218 (5); —; QMV
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| Department | HM Revenue and Customs
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| Basis of consideration | Minister's letter of 14 October 2013
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| Previous Committee Report | HC 83-xiv (2013-14), chapter 12 (11 September 2013)
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| Discussion in Council | Not known
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| Committee's assessment | Legally and politically important
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| Committee's decision | Cleared
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Background
17.1 In November 2012 the parties to the World Health
Organisation (WHO) Framework Convention on Tobacco Control (FCTC)
adopted the Protocol to Eliminate Illicit Trade in Tobacco Products
(the Protocol).
17.2 The FCTC is an international, legally-binding
treaty designed to reduce tobacco-related deaths and disease around
the world. Adopted in May 2003, the objective of the FCTC is "to
protect present and future generations from the devastating health,
social, environmental and economic consequences of tobacco consumption
and exposure to tobacco smoke". There are 177 parties to
the FCTC, including both the UK and the EU.
17.3 The Protocol is intended to provide a framework
for international regulation of tobacco production and distribution
and for international cooperation between enforcement authorities.
The benefits will depend on the take up by the parties and the
geographical coverage.
17.4 The Protocol contains a complex set of measures
and rules, the main objective of which is to contribute to overall
tobacco control efforts by combating all forms of illicit trade
in tobacco products and manufacturing equipment. This objective
is pursued through several sets of measures which fall into different
areas of EU activity.
17.5 These draft Council Decisions are intended to
enable the EU to sign the Protocol. The documents recognise that
the Protocol covers material with both Title V TFEU legal base(s)
and non-Title V TFEU legal base(s) and the UK's right to choose
whether to opt-in to new Title V measures.
17.6 One of the draft Decisions, document (a), concerns
EU signature of the Protocol insofar as it relates to non-Title
V matters and the other, document (b), concerns EU signature insofar
as the Protocol relates to Title V matters. The UK has the choice
as to whether to take part in adoption of, that is vote on, the
second draft Decision. Recital (4) of that draft Decision has
two alternative texts. The first presumes that the UK opts into
the draft Decision's adoption and application, the second that
it does not.
17.7 The Commission has not published an assessment
of the legal bases for each individual Article in the Protocol,
although it has set out which legal bases are applicable in the
draft Decisions. It is expected that there will be an assessment
of the applicable legal base to each individual Article in the
Protocol alongside draft Council Decisions on conclusion of the
Protocol (the EU's formal consent to be bound by the articles
in the Protocol) at a future date.
17.8 When we considered these proposals, in September,
the Government gave us no indication whatsoever as to the case
for choosing either Recital (4) option. We commented that, whilst
we had no concern as to the EU's signature of this Protocol, we
were confused as to the Government's opt-in intentions. Noting
the Recital (4) alternatives and that we had no clue as to the
Government's intentions, we said that it seemed to us that the
possibilities were that:
· the Government opts in and the EU signs
the Protocol with the UK's consent in relation to both non-Title
V and Title V aspects and with the UK signing in its own right;
or
· the Government does not opt in and the
EU signs the Protocol without the UK's consent in relation to
Title V aspects, but with the UK still signing in its own right.
17.9 We continued that it was not clear to us how
either of these possibilities would leave the UK in relation to
future draft Decisions allowing the EU to conclude the Protocol,
by which time the Commission was expected to have given its view
as to which aspects of the Protocol concern Title V. We wondered
whether, if the Government opts into the present draft Decision,
that precludes opting out of a future EU conclusion of the Protocol
and, equally, does opting out now preclude opting in later? We
said that, before considering these draft Decisions further, we
wished to hear the Government's view of this situation and to
have an indication of which version of Recital (4) of the second
draft Decision it intends to support. Meanwhile both documents
remained under scrutiny.[75]
The Minister's letter
17.10 The Economic Secretary to the Treasury (Nicky
Morgan) says first that she welcomes our support for signature
of the Protocol and reaffirms the Government's intention to both
sign and implement the Protocol as soon as possible.
17.11 The Minister, noting the UK's situation in
relation to Title V measures and recalling the Government's approach
to parliamentary scrutiny of opt-in decisions, continues that:
"To clarify the position, these draft decisions
relate to signing the Protocol only. This signifies an intention
to ratify the Protocol in due course but is in no way binding
in itself. Unless there are compelling reasons to opt-in to the
Title V aspects of the Protocol, the Government is likely to maintain
its default position to opt-out of the Title V aspects of the
Protocol. Opting-out of the Title V aspects of the protocol at
this stage does not prejudice the UK's position going forward.
We would retain the right to make a separate decision on exercising
the opt-in when the substantive measures required to implement
the Protocol are debated and finalised at the EU level. At that
stage, further Council decisions will be necessary and we will
be grateful for the views of the Committee in that regard.
"I hope that this explains the position and
that the Committee is now able to clear the relevant documents
as soon as possible and enable us to make further progress towards
both the UK and the EU signing this important Protocol."
Conclusion
- We note the Minister's comments about what
appears to be a rational approach, that is, opting out at this
stage whilst retaining the option to opt-in at the substantive
stage of implementation of the Protocol. Given that, we clear
these documents and look forward to considering the opt-in possibilities
at the next stage.
75 See headnote. Back
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