19.1.2013 Official Journal of the European Union L 1713 REGULATION (EU) No 20/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(2) thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Acting in accordance with the ordinary legislative procedure (1), Whereas: (1) On 23 April 2007 the Council authorised the Commission to open negotiations with certain countries of Central America (‘Central America’) for an Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (‘the Agreement)) on behalf of the Union and its Member States. (2)  Those negotiations have been concluded and the Agreement was signed on 29 June 2012, received the consent of the European Parliament on 11 December 2012 and is to apply as provided for in Article 353 of the Agreement. (3) It is necessary to lay down the most appropriate procedures to guarantee the effective application of certain provisions of the Agreement which concern the bilateral safeguard clause and for applying the stabili- sation mechanism for bananas that has been agreed with Central America. (4) It is also necessary to create appropriate safeguard mech- anisms to prevent serious harm to the Union banana growing sector which is of great importance to the agri- cultural producers of many of the outermost regions of (1) Position of the European Parliament of 11 December 2012 (not yet published in the Official Journal) and decision of the Council of 20 December 2012. (10) the Union. The limited ability of those regions to diversify, owing to their natural characteristics, makes the banana sector particularly vulnerable. It is therefore essential to create effective mechanisms to address prefer- ential imports from third countries concerned, in order to guarantee that Union banana production is maintained under the best possible conditions, as it is a crucial employment sector in certain areas, especially in the outermost regions. The terms ‘serious injury’, ‘threat of serious injury’ and ‘transition period’ as referred to in Articles 104 and 105 of the Agreement should be defined. Safeguard measures should be considered only if the product in question is imported into the Union in such increased quantities, in absolute terms or relative to Union production, and under such conditions as to cause, or threaten to cause, serious injury to Union producers of like or directly competitive products as laid down in Article 104 of the Agreement. Specific safeguard provisions should be available in case the product in question is imported in such increased quantities and under such conditions as to cause or threaten to cause serious deterioration in the economic situation of any of the outermost regions as referred to in Article 349 of the Treaty on the Functioning of the European Union (TFEU). Safeguard measures should take one of the forms referred to in Article 104(2) of the Agreement. The tasks of following up and reviewing the Agreement, carrying out investigations and, if necessary, imposing safeguard measures should be carried out in the most transparent manner possible. The Commission should submit an annual report to the European Parliament and to the Council on the imple- mentation of the Agreement and the application of the safeguard measures and the stabilisation mechanism for bananas.