Documents - Think Tank - European �Ϸ��վ

Briefing - Rules for exercising the Union's rights in implementing and enforcing EU UK agreements - 16-06-2023

Thu, 15 Jun 2023 22:00:00 GMT

The Withdrawal Agreement (WA) and the Trade and Cooperation Agreement (TCA) between the EU and the UK set the terms for the UK’s departure from the Union and a framework for future relations. Tensions surfaced, mainly related to fisheries and the Protocol on Ireland / Northern Ireland (the Protocol), which is a part of the WA. The UK had threatened to take 'unilateral measures' on issues such as border controls. For its part, the EU launched legal actions against the UK for failing to fulfil its obligations. In May 2023, the EU adopted a regulation empowering the Commission to act by means of implementing acts to enforce and implement the two agreements. The new Regulation means that the Commission may impose restrictions on trade, investment or other activities if the UK is in breach the terms of WA and TCA. The new law entered into force in April 2023. Second edition of a briefing originally drafted by Issam Hallak. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Source : © European Union, 2023 - EP

Study - Global value chains: Potential synergies between external trade policy and internal economic initiatives to address the strategic dependencies of the EU - 01-03-2023

Sun, 26 Mar 2023 22:00:00 GMT

Global value chains enable two-thirds of international trade, notably for the EU. The EU wants to preserve its commercial links with third countries and organisations to make up for trade disruptions. This study examines sustainable supply of raw materials, commodities, and critical goods using the EU's Open Strategic Autonomy concept. It examines which raw material are crucial for sustainable supply and necessary for the green transition. The paper examines EU internal legislation and international cooperation instruments to determine the EU's disruption risk. It evaluates the economic impact of EU preferential trade agreements on raw material availability. The study illustrates the political and economic relevance of raw material partnerships and plurilateral and bilateral trade agreements. It analyses the EU's toolbox for safeguarding its interests and making independent trade choices to counteract other actors' unfair practices and intervention. Finally, the paper examines regulatory frameworks, international alliances, and activities to find ways to strengthen global value chains in critical EU industries.

Source : © European Union, 2023 - EP

At a Glance - US Congress and trade policy tackling China - 04-03-2022

Thu, 03 Mar 2022 23:00:00 GMT

In the first year of the 117th US Congress (2021-2022), members of both the House and the Senate saw an urgent need both for a trade policy offensive specifically for the Indo-Pacific region to maintain US leadership in setting international standards and norms, and for an upgrade of defensive trade policy tools to address China's unfair trade practices. Congressional initiatives have coincided with debates in the European �Ϸ��վ on the EU's Indo-Pacific strategy and on legislative proposals set to expand the EU's toolbox of autonomous trade measures.

Source : © European Union, 2022 - EP

Briefing - China's compliance with selected fields of international law - 09-09-2021

Wed, 08 Sep 2021 22:00:00 GMT

China has ratified numerous legally binding international agreements. Like other countries, it has a strong incentive to commit itself in this way: international agreements are a means of binding other treaty parties; strengthening international standing; creating a favourable legal framework for trade and investment; and, such as with the 1984 Sino-British Declaration on Hong Kong, settling territorial questions. At the same time, China has been careful to avoid making commitments in two areas in particular: questions of national security and sovereignty, where it recalls a history of mistreatment by outside powers; and human rights, where its political and cultural traditions differ considerably from those of Western democracies. China has often included reservations precluding international arbitration in the international agreements that it has ratified. One notable exception to this rule is China's membership of the WTO and conclusion of trade and investment agreements, where arbitration is such a core part of the system as to be unavoidable. To the extent that China is accused of breaching its international commitments, these tend to concern its perceived national security interests and territorial sovereignty, as in the case of the governance of Hong Kong, and maritime and territorial rights in the South China Sea. In other areas, such as human rights and climate change agreements, China is typically careful to limit its commitments so that it does not formally breach them.

Source : © European Union, 2021 - EP

At a Glance - Trade policy for the Biodiversity Strategy 2030 - 03-06-2021

Wed, 02 Jun 2021 22:00:00 GMT

International trade influences biodiversity through scale, composition and technique effects. Land and sea use change alter natural habitats, while emissions from production and transportation contribute to climate change. Among exports, animal-based agri-food products are particularly land-intensive. Trade policy can play a role in tackling these problems through stronger enforcement of biodiversity-related provisions in trade agreements. The EU Biodiversity Strategy 2030 commits to better assessing trade agreements’ potential impact on biodiversity and to better enforce biodiversity-related provisions. The Trade Committee of the European �Ϸ��վ has adopted an opinion on the trade aspects of the new strategy.

Source : © European Union, 2021 - EP

Briefing - Critical raw materials in EU external policies: Improving access and raising global standards - 12-05-2021

Tue, 11 May 2021 22:00:00 GMT

Lithium and cobalt (used in rechargeable batteries) and rare earth elements (used in wind turbines) are some of the critical raw materials (CRMs) – raw materials of critical importance – for the EU. Global demand for CRMs is rising, yet the export restrictions imposed by the resource-rich countries intensify the competition for these materials. To boost its access to CRMs, the EU has a dedicated strategy based on three pillars: two internal ones (increasing domestic sourcing and circularity) and an external one, which is mostly about securing supply from third countries. The external pillar of the EU CRMs policy is implemented across a number of other policies, mainly that on trade and development. It also involves deploying raw materials diplomacy. Through its trade policy, the EU seeks to implement its priorities by eliminating trade barriers through bilateral, regional and multilateral agreements, and safeguarding its interests through more assertive tools such as WTO dispute settlement and trade defence instruments. Through its development policy, the EU seeks to secure and diversify its access to CRMs, while promoting sustainable standards, good governance and responsible sourcing. It is also advancing its agenda through international fora (e.g. the UN and the OECD) and dialogues with numerous partners. The EU has also passed laws that help to make global supply chains and finance in the extractive sectors more transparent. In 2020, the European Commission adopted a CRMs action plan mostly based on existing strands of external action. It introduces several novel ideas, notably launching new strategic partnerships with both developed and developing nations, which are focused on extraction, processing and refining of CRMs. In its recent strategies, the EU has also clearly indicated its interest in greening the supply chains and achieving open strategic autonomy as regards CRMs. The success of these will also depend on global cooperation, adequate funding and reconciling differences with resource-rich countries.

Source : © European Union, 2021 - EP

Briefing - Legal Analysis of International Trade Law and Digital Trade - 11-11-2020

Wed, 25 Nov 2020 23:00:00 GMT

This brief provides a legal analysis of existing rules in digital trade regarding the various components of artificial intelligence (‘AI’), in particular (personal and nonpersonal) data, computer code in the form of algorithms, and computing power (including cloud computing). To do so, the first part of this analysis will map various international trade rules that affect cross-border flows of data, computer code and computing power to determine their respective advantages and disadvantages. This will form the basis for the second part of the analysis, which will address the desirability and necessity of global rulemaking in this area.

Source : © European Union, 2020 - EP

At a Glance - WTO e-commerce negotiations - 05-10-2020

Sun, 04 Oct 2020 22:00:00 GMT

While e-commerce represents an increasing portion of the economy, international regulation of e-commerce is lagging behind. In 2017, the WTO Ministerial Conference issued a Joint Statement Initiative signalling the intention to launch plurilateral e-commerce talks. In January 2019, in the margins of the World Economic Forum in Davos, 76 of 164 WTO members, among them the EU, Australia, China, Japan, and the USA launched e commerce negotiations. Members seek a high-standard outcome building on WTO agreements, but the legal form of the deal is not yet clear. Participants wish to modernise trade rules to fit the digital age and show that the WTO's negotiating function can deliver. Key issues in the negotiations include e-contracts and e-signatures, data flows, data localisation requirements, disclosure of source code, and customs duties on electronic transmissions. While some divergences persist, in particular on data flows and privacy, the talks are progressing with a view to deliver a consolidated draft text by the end of 2020.

Source : © European Union, 2020 - EP

At a Glance - Using trade policy to tackle climate change - 08-10-2019

Tue, 08 Oct 2019 08:43:41 GMT

The recent forest fires in the Amazon highlight the need for greater measures worldwide to attenuate tensions between resource needs, for example mining or grazing, that cause deforestation. European leaders have called for urgent action, including through trade policy. Policy-makers argue, for instance, for leveraging the negotiated European Union (EU)-Mercosur Trade Agreement to achieve compliance with the Paris Agreement. Since the Paris Agreement is binding only in part and aspirational concerning national emissions targets, there are calls to resort to trade policy instead.

Source : © European Union, 2019 - EP

At a Glance - International aviation agreements - 04-10-2019

Fri, 04 Oct 2019 07:42:15 GMT

To tackle international air transport challenges in the European Union, particularly increased competition from third countries, the European Commission adopted a new aviation strategy for Europe in December 2015, placing strong emphasis on international aviation agreements. After obtaining negotiating mandates from Council, a number of EU-level comprehensive agreements are coming to fruition, with some now awaiting signature or ratification. This is an updated and expanded edition of an ‘at a glance’ note from November 2016, PE 593.524.

Source : © European Union, 2019 - EP

At a Glance - United States-Mexico-Canada Agreement (USMCA): Potential impact on EU companies - 14-12-2018

Fri, 14 Dec 2018 13:05:11 GMT

The USMCA is a new trade agreement due to replace the North American Free Trade Agreement (NAFTA). The United States, Mexico and Canada signed the agreement on 30 November 2018. While the text of the agreement may still change, if approved, certain USMCA provisions on rules of origin, geographical indications and voluntary export restraints could have implications for EU companies trading with or present in North America, in particular carmakers, food and drink exporters, and dairy producers. The USMCA could also set precedents for future US trade policy, in departing from key principles in international trade and origin determination.

Source : © European Union, 2018 - EP

In-Depth Analysis - The European Council in 2017: Overview of decisions and discussions - 29-06-2018

Fri, 29 Jun 2018 15:16:37 GMT

The year 2017 was good for the EU, politically and economically. For the first time in almost a decade, the EU was not beset by crises, although Brexit posed a difficult challenge. The European Council met the Brexit challenge by approving guidelines for the negotiations in April, and agreeing to move to a new stage in December, while convening in a new format: Article 50 (TEU) meetings of the EU-27. The European Council launched another new formal in 2017: Leaders’ Meetings, held under the auspices of the Leader’ Agenda, to discuss challenging issues such as migration and EMU reform. By the end of the year, the European Council could look back at an eventful but largely successful twelve months.

Source : © European Union, 2018 - EP

Study - Workshop "Anti-corruption provisions in EU free trade and investment agreements: Delivering on clean trade" - 28-03-2018

Mon, 16 Apr 2018 22:00:00 GMT

International trade agreements have the potential to help breaking the vicious circle of corruption in economies based on privileged connections rather than fair competition. They increase competition in the removal of tariffs and so diminish the power of rentier companies which influence domestic regulation in their favour. They also contribute to a fairer business environment through their transparency provisions. Trade openness, red tape reduction and fiscal transparency, especially transparency of procurement, play positive roles in widening control of corruption. They can be more easily influenced by external actors than the other important control of corruption factors: judicial independence, freedom of the press or the demand from civil society for good governance. This study ordered by the INTA Committee argues that indirect good governance policies which increase competition and subvert power and economic monopolies or quasi monopolies are far more effective than direct anticorruption policies, which in relying on domestic implementation tend to fall into the vicious circle again. The study presents options characterised as an ‘economist’s approach’ with an apparently more modest but effective good governance package, a ‘lawyer’s’ approach’ with firm anticorruption language but unenforceable provisions even in EU countries (on bribery, for instance), and a ‘holistic’ approach where the EU would coordinate across international trade, promotion of norms and development aid. The three options may be used alternatively, depending on the degree of development and quality of governance of the trading partner. The study was presented at a workshop of the INTA committee on 24 January 2018.

Source : © European Union, 2018 - EP

Study - The added value of international trade and impact of trade barriers - Cost of Non-Europe Report - 25-10-2017

Wed, 25 Oct 2017 16:30:12 GMT

This Cost of Non-Europe Report, prepared for the European �Ϸ��վ’s Committee on International Trade, analyses the economic added value of international trade. Aimed at feeding into on-going debates about the roles of globalisation and the rules-based multilateral trade system, it presents an overview of key trade theories, global trade patterns and the arguments for opening and restricting international trade. It analyses distributional consequences of such trade, the role of global value chains and the consequences of protectionism.

Source : © European Union, 2017 - EP

At a Glance - Brexit negotiations - Progress to date - 15-09-2017

Fri, 15 Sep 2017 11:20:56 GMT

Since their official launch in June 2017, three rounds of negotiations on the United Kingdom's (UK) withdrawal from the European Union (EU) have been held. So far, the EU and UK have discussed the priority issues of citizens' rights, the financial settlement and the Irish border, but disagreements and ambiguities persist. After the third round, 'no decisive progress' was reached, according to Michel Barnier, the EU chief negotiator, which is likely to impede any advance to the second phase of talks in October, on transitional arrangements and the future EU-UK partnership, including trade relations.

Source : © European Union, 2017 - EP

Study - Thesaurus on Brexit - 15-09-2017

Thu, 19 Oct 2017 22:00:00 GMT

This thesaurus is a collection of ECON related articles, papers and studies on the possible withdrawal of the UK from the EU. Recent literature from various sources is categorised, chronologically listed – while keeping the content of previous editions - and briefly summarised. To facilitate the use of this tool and to allow an easy access, certain documents may appear in more than one category. The thesaurus is non-exhaustive and may be updated. This document was provided by Policy Department A at the request of the ECON Committee.

Source : © European Union, 2017 - EP

Briefing - International Agreements in Progress: Economic Partnership Agreement with the Southern African Development Community (SADC) - 13-09-2017

Tue, 12 Sep 2017 22:00:00 GMT

In line with the objective of the Cotonou Agreement to establish a World Trade Organization-compatible trade regime with ACP countries, in 2002 the EU started negotiations on free trade agreements with different ACP regional configurations. One of these is the SADC EPA Group – of southern African countries, including South Africa. The negotiations were long but the final outcome is a compromise that has been accepted by all parties, with the exception of Angola which did not endorse the Economic Partnership Agreement (EPA), but has an option to join in the future. The Agreement establishes an asymmetric free trade area, taking into account the disparities in the level of development between the EU and its African partners, which can shield sensitive products from EU competition. It emphasises sustainable development as an overarching objective, includes important safeguards in order to protect sensitive sectors from sudden surges in trade, and gives African countries the possibility to preserve their policy space in order to industrialise. The Agreement was signed in June 2016 and entered into provisional application on 10 October 2016, after being ratified by five of the six African countries and the European �Ϸ��վ. It is now in the process of ratification by EU national parliaments. Second edition. The ‘International Agreements in Progress’ briefings are updated at key stages throughout the process, from initial discussions through to ratification. To view earlier editions of this briefing, please see: PE 586.661, 7 September 2016.

Source : © European Union, 2017 - EP

Briefing - India and prospects for closer EU ties - 08-09-2017

Fri, 08 Sep 2017 15:31:13 GMT

The EU and India – two multicultural democracies with a constitutional structure containing elements of federalism – potentially have much in common. However, they face different geopolitical concerns; the fact that each party's attention is focused on its own neighbours (in the case of New Delhi, this translates into a 'Chinese obsession'), has prevented them from developing the strategic partnership they had agreed upon in 2004. The stalemate in negotiations for a free trade agreement, which started in 2007 and reached deadlock in 2013, has also hindered progress towards closer relations. In India, although the EU does not get much media coverage, it is generally viewed positively. Both the Indian leadership and the general public have a stronger perception of individual Member States than of the EU as an entity, whereas the Indian elite is more aware of the European Union. Several Indian observers regret the EU's attitude of 'preaching and finger pointing'. Even though the latest EU-India Summit held in 2016 did not succeed in making a breakthrough in the negotiations for a free trade agreement, it endorsed the EU-India Agenda for Action 2020 as a common roadmap aimed at reviving the strategic partnership between the two parties. While waiting for economic relations to develop further, the two could focus on other possible areas of cooperation such as maritime security and coordination of activities in the Middle East and Afghanistan.

Source : © European Union, 2017 - EP

Study - Legal Implications of Brexit: Customs Union, Internal Market Acquis for Goods and Services, Consumer Protection Law, Public Procurement - 09-08-2017

Tue, 08 Aug 2017 22:00:00 GMT

This in-depth analysis addresses the implications of several scenarios of the UK withdrawing from the EU in relation to the EU Customs Union, the Internal Market law for Goods and Services, and on Consumer Protection law, identifying the main cross-cutting challenges that have to be addressed irrespective of the policy choices that will be made in due course. The analysis takes the fully-fledged EU membership as a point of departure and compares this baseline scenario to a membership of the UK in the European Economic Area (EEA), the application of tailor-made arrangements, as well as the fall-back scenario, in which the mutual relationship is governed by WTO law. Following an analysis of the EU legal framework defining the withdrawal of a Member State from the EU the study develops an analytical framework that allows for the identification of the legal impact of different Brexit scenarios on policy fields falling within the ambit of the IMCO Committee. In this context, the general impact of the EEA model, the tailor-made model and the WTO model on key pieces of the currently existing acquis communautaire in these policy areas are highlighted.

Source : © European Union, 2017 - EP

In-Depth Analysis - The European Council in 2016: Overview of decisions and discussions - 13-07-2017

Thu, 13 Jul 2017 12:32:56 GMT

This In-Depth Analysis by the European Council Oversight Unit of the European �Ϸ��վary Research Service (EPRS) is the second in a series of annual publications examining the activity of the European Council. In 2016, the Heads of State or Government devoted most of their attention to three policy areas: migration; foreign and security policy; and economic governance, competitiveness and trade. The publication also considers the impact of the United Kingdom referendum vote on the proceedings of the European Council, both procedurally (EU 28 and EU-27 meetings) and thematically (policy priorities and debates on the future of a Europe-at-27). The European Council has carried out its strategic, deliberative, and follow-up roles throughout the year. This was particularly notable when it dealt with migration, which attracted 50 % of the attention of the Heads of State or Government, as shown in the conclusions of their debates. The European Council President, Donald Tusk, continued to report to the European �Ϸ��վ on the outcomes of the European Council meetings, as required by the Treaties.

Source : © European Union, 2017 - EP

In-Depth Analysis - From arbitration to the investment court system (ICS): The evolution of CETA rules - 15-06-2017

Thu, 15 Jun 2017 14:13:21 GMT

After a public consultation on proposed reforms to investment protection and the investor-dispute settlement framework of the Transatlantic Trade and Investment Partnership (TTIP) with the United States of America, the European �Ϸ��վ requested the replacement of the traditional arbitration framework with a new court system. The European Commission and Canada subsequently renegotiated the relevant provisions of the Comprehensive Economic and Trade Agreement (CETA) to establish a new investment court system (ICS). The ICS departs substantially from the arbitration model, in particular on the appointment of judges. Procedurally the ICS remains similar to treaty-based arbitration proceedings and retains all the innovations introduced in the early draft of CETA. Those innovations aim, among other things, to prevent ‘forum shopping’ and abuse of the system. Some of the innovations introduced will require further decisions in CETA’s established Committees, such as on the code of conduct and decisions on appellate body judges. Some concerns raised regarding the basis for differences between ISDS and domestic court systems persist in the ICS context. These relate both to the different treatment between foreign and domestic investors, and to uncertainty regarding the compatibility of the ICS system with the principle of autonomy of the EU legal order. On this last point, however, the ICS framework can be distinguished for various reasons from past opinions on the European and Community Patent Court and the EU’s accession to the European Convention on Human Rights.

Source : © European Union, 2017 - EP

Briefing - The Consequences of Brexit for the Customs Union and the Internal Market Acquis for Goods - 15-06-2017

Tue, 13 Jun 2017 22:00:00 GMT

• The consequences of Brexit depend on the model which will be adopted for the future relationship between the EU and the UK. These models should be compared with a respect to a number of different parameters, which are not confined to substantive trade rules but include also questions of legal effect and dispute settlement. • There are very substantial differences between, on the one hand, the EU Membership and EEA models; and on the other the WTO/FTA models. Those differences are focused on the approach to regulatory convergence and to the legal effects of the agreements and their enforcement.

Source : © European Union, 2017 - EP

Study - Implications of Brexit on EU Financial Services - 15-06-2017

Tue, 27 Jun 2017 22:00:00 GMT

This study addresses the implications and economic impact of several scenarios of the UK leaving the EU in relation to financial services, ranging from a ‘hard Brexit’ without any arrangements concerning financial services to the current state of affairs under the terms of a full EU membership. Special focus is put on a peculiar variation of ‘hard Brexit’, which are the third-country regimes in the current EU secondary legal framework that allow partial access to the EU single market based on ‘equivalence’ on the basis of decisions by the European Commission or national authorities. The study presents these regimes and the extent to which they were already used in the past. The economic analysis looks at three variations of ‘hard Brexit’ (one, in which the access to the single market is closed, one with partial access based on equivalence and one, in which the City of London is transformed into an ‘offshore financial centre’) and at the scenario, in which the UK joins the EEA. The economic assessment is based on the current state of affairs in relation to the interwovenness of financial services in the EU28 including a closer look at the importance of UK-based clearing of Euro denominated trades.

Source : © European Union, 2017 - EP

EU Fact Sheets - The Doha round and agriculture - 01-06-2017

Mon, 15 May 2017 14:32:06 GMT

The Doha Ministerial Conference of 14 November 2001 established a new, comprehensive agenda for agricultural negotiations.

Source : © European Union, 2017 - EP

Briefing - From TPP to new trade arrangements in the Asia-Pacific region - 24-05-2017

Wed, 24 May 2017 08:13:04 GMT

The Trans-Pacific Partnership (TPP), signed in February 2016 by the representatives of its 12 member countries, is a comprehensive regional agreement dealing with a wide range of trade and trade-related issues. In January 2017, President Donald Trump withdrew the United States from the TPP, making it impossible for the agreement, as it is currently drafted, to take effect. Despite the US withdrawal, the remaining TPP participating countries are determined to salvage the benefits of the agreement, and are working to develop alternative approaches to bring the trade deal into force. The failure of the TPP is likely to influence the way that other economic and trade cooperation initiatives, including the Regional Comprehensive Economic Partnership (RCEP), will develop in the Asia-Pacific region. The US withdrawal also represents an opportunity for the EU, which is strongly committed to a robust trade policy and an open trading system, to advance its interests in the region. The EU is currently working on or has already concluded bilateral trade agreements with almost all TPP member countries.

Source : © European Union, 2017 - EP

Documents - Think Tank - European �Ϸ�������վ