VIII Legislature, N°52 – 20 February 2015 Highlights 2015 Parliamentary Conference on the WTO With the World Trade Organization (WTO) having turned twenty this year, the delegates of the Parliamentary Conference on the WTO met in Geneva on 16-17 February. Parliamentarians, including a 13-strong strong delegation of MEPs, looked at trade as an enabler of peace and prosperity and examined the ways of better conveying the benefits of trade to consumers and young people. Delegates urged to redouble efforts to conclude the Doha Round, to swiftly ratify the Trade Facilitation Agreement and to press ahead with implementing all elements of the "Bali package". INTA discusses draft recommendations for TTIP negotiations Conflict minerals: voluntary vs. mandatory approach INTA considers €1.8 billion loan package for Ukraine Next Meeting Monday, 23 February 2015 (15.00-18.30 ) Tuesday, 24 February 2015 (9.00-12.30, 15.0018.30) Room: Altiero Spinelli (ASP) 3E-2 Draft agenda Webstreaming Meeting documents Contents Meeting highlights (23-24/02/2015) Recent events Publications Coming soon Various 2 9 11 13 14 VIII Legislature, N°52 – 20 February 2015 Parliamentarians urge to redouble efforts to conclude the Doha Round 2015 Parliamentary Conference on the WTO A concerted and urgent effort of all the WTO members is needed to move forward the rules-based multilateral trade system say parliamentarians, who gathered at the WTO headquarters on 16-17 February for the 2015 Parliamentary Conference on the WTO (PCWTO). A 13-strong strong delegation of MEPs looked at trade as an enabler of peace and prosperity and examined the possibilities of better conveying the benefits of the WTO to the wider public. Trade MEPs held a dialogue with senior WTO negotiators on ways to advance the Doha Round in line with the newly agreed deadline of July 2015 for developing the WTO work programme. With the WTO Director-General Roberto Azevêdo delegates discussed a "recalibration" of the WTO and lessons learned during twenty years of its existence. In the margins of the PCWTO, MEPs held meetings with the EU and the US ambassadors to the WTO Mr Angelos Pangratis and Mr Michael Punke respectively. Press release PCWTO 2015 1 VIII Legislature, N°52 – 20 February 2015 Meeting highlights (23-24/02/2015) Trade in Services Agreement: what's at stake for Europe? Public Hearing While the 11th round of negotiations for a Trade in Services Agreement (TiSA) will have just wrapped up, Members will debate the stakes for Europe in this major plurilateral agreement. The 23 TiSA Parties represent 68% of global services, and a third of the WTO Members; and China and Uruguay have recently requested to join the talks. The purpose of TiSA is to further liberalise trade in services and upgrade the current GATS designed in a preInternet era. The negotiations are conducted outside the WTO, but the position of the EU is to craft the TiSA text to make it compatible with the GATS in order to secure a possible integration when a critical mass of participants is reached. In July 2014, the Commission published a number of TiSA negotiating documents, in line with the WTO transparency guidelines. It was the first time ever that the Commission has published the EU initial offer during a negotiation. The first panel of the hearing will deal with the horizontal perspective of the negotiations, and the second one will cover three sectorial chapters of TiSA: financial, telecommunications and postal services. Programme EP recommendations for TTIP negotiations Consideration of draft report Members will discuss a draft report by INTA Chairman Bernd Lange containing the Parliament’s proposals to the Commission on the trade talks with the US on the Transatlantic Trade and Investment Partnership (TTIP). Rapporteur's draft recommendations call for a comprehensive, ambitious, balanced and high-standard agreement improving market access, reducing non-tariff barriers and enhancing the compatibility of regulatory standards and developing common rules. The draft urges to continue ongoing efforts to increase transparency in the EU-US trade and investment talks. The report is drawn up in the follow-up to the EP resolutions on TTIP adopted in October 2012 and May 2013, with 14 committees drafting their opinions to the INTA report. Rapporteur: Administrator: Procedure: Lead committee: Bernd Lange (S&D) Martti Kalaus 2014/2228 (INI) INTA TIMETABLE Consideration of draft report: 24 February 2015 Deadline for amendments: 26 March 2015 Planned vote in INTA: 7 May 2015 Planned vote in plenary: May 2015 2 VIII Legislature, N°52 – 20 February 2015 Conflict minerals: voluntary vs. mandatory due diligence obligations Consideration of draft report MEPs agree that companies must avoid sourcing minerals from rebel-controlled mines, but they need to make important legislative choices. Will it be up to companies to decide whether to join the new EU due diligence system? Will the system be limited to Africa's Great Lakes region or apply to all conflict areas? Will new rules concern all companies or just importers of minerals and metals? Will the system be set up and controlled by national administrations or the European Commission? INTA rapporteur Iuliu Winkler proposes to support the Commission proposal and let EU importers of minerals and metals decide whether to join the scheme. He believes, that with the support of incentives, market pressures will convince them to become responsible importers. Companies will check where their supplies come from and mitigate any possible negative impact on the human rights situation. The rapporteur also wants the Commission to create a system through which good existing business practices be recognised to avoid double auditing and minimize red tape. The rapporteur also wants to delay the application of new rules to ensure their smooth application, aiming to promote legitimate trade in tin, tantalum, tungsten and gold from conflict affected high risk areas. Once a compromise on the hotly debated issue is reached in the Parliament, an agreement with the Council of Ministers will need to be found. Rapporteur: Administrator: Procedure: Lead committee: Iuliu Winkler (EPP) Leon Peijnenburg 2014/0059(COD) INTA DRAFT TIMETABLE Consideration of draft report: Deadline for amendments: Planned vote in INTA: Planned vote in plenary: 23 February 2015 26 February 2015 14 April 2015 May 2015 3 VIII Legislature, N°52 – 20 February 2015 Macro-financial assistance to Ukraine Consideration of draft report INTA will consider a draft report by Gabrielius Landsbergis (EPP) on granting the EU macro-financial to Ukraine. The Commission proposes a macro-financial assistance of up to 1.8 billion euros in medium-term loans, to address Ukraine’s short-term balance of payments needs, including the replenishment of international reserves, and to support the reform programme of the Ukrainian authorities, in particular the restructuring of the energy and banking sectors. Such support is required to shore up investor confidence, which is essential for bringing Ukraine’s economy back to a sustainable growth path. The assistance shall contribute to cover Ukraine’s residual external financing needs in 2015-16, as identified by the Commission based on the estimates of the IMF. Given the dramatic economic situation in Ukraine as well as the fact that the Commission proposal strictly respects the standard wording for such proposals agreed by the co-legislators in the 7th legislature, the rapporteur proposes taking over the Commission proposal without amendments. Rapporteur: Administrator: Procedure: Lead committee: Gabrielius Landsbergis (EPP) Tatiana Mrazikova 2015/0005 (COD) INTA DRAFT TIMETABLE Deadline for amendments: Planned vote in INTA: Planned vote in plenary: 25 February 2015 19 March 2015 March II (tbc) "Anti-torture Regulation": enhanced export controls of inhumane equipment Exchange of views The "Anti-torture Regulation" (EC) No 1236/2005 is a unique instrument that contributes to protection of human rights via the EU-wide export controls of items and services that are used for or could be misused for capital punishment and torture. MEPs embark upon a legislative update that will strengthen the oversight combining trade prohibitions with licensing requirements for exports of listed goods. Members will legislate on prohibition of brokering services for banned goods and extention of the prohibition of brokering services and technical assistance for controlled items, in cases a supplier knows or suspects the goods may be used for cruel, inhuman or degrading treatment. Rapporteur: Administrators: Procedure: Lead committee: Marietje Schaake (ALDE) Mindaugas Kojelis 2014/0005(COD) INTA DRAFT TIMETABLE Exchange of views: 23 February 2015 Consideration of draft report: 6-7 May 2015 (tbc) Deadline for amendments: 13 May (tbc) Planned vote in INTA: 15-16 June (tbc) Planned vote in plenary: July 2015 (tbc) 4 VIII Legislature, N°52 – 20 February 2015 European Energy Security Strategy Consideration of draft opinion INTA will consider its opinion to the own-initiative report of the ITRE Committee on Europe’s energy security strategy. Rapporteur Helmut Scholz (GUE/NGL) suggests that in order to meet global energy challenges and implement its energy and climate change objectives, the EU must take common action on the international stage. The draft insists that the EU’s energy security strategy should ensure affordable access to energy for all and should strengthen public control and regulation. The Rapporteur says that trade plays a key role in energy security, and he calls for strong energy partnerships. The Member States should boost information exchange mechanism and bundle their negotiating power visà-vis third countries. Moreover, the draft opinion finds export opportunities for EU private and public companies in clean, secure and efficient energy technologies particularly important. Rapporteur: Administrators: Procedure: Lead committee: Helmut Scholz (GUE/NGL) Heikki Suortti 2014/2153 (INI) ITRE DRAFT TIMETABLE Consideration of draft opinion: 23 February 2015 Deadline for amendments: 26 February 2015 Planned vote in INTA: 19 March 2015 Protecting intellectual property rights beyond EU borders Exchange of views INTA will hold its first exchange of views on the Commission Communication: Trade, growth and intellectual property -Strategy for the protection and enforcement of intellectual property rights in third countries The IPR protection and enforcement strategy vis– à–vis third countries replaces the one dating back to 2004. The Communication reviews the EU policy with regard to substantial technological change in the last decade including vital role of the internet, increasing importance of emerging economies, challenges in access to medicines and a growing level of IPR infringements. Rapporteur: Administrator: Procedure: Lead committee: Alessia Mosca (S&D) Miriam Korteweg 2014/2206(INI) INTA DRAFT TIMETABLE Consideration of draft report: 18-19 March 2015 Deadline for amendments: 23 March 2015 Planned vote in INTA: 14 April 2015 Planned vote in plenary: May 2015 5 VIII Legislature, N°52 – 20 February 2015 Trade preferences for the Western Balkans Consideration of draft report INTA will consider a draft report by Goffredo Bettini (S&D) on granting autonomous trade preferences to the Western Balkans countries. Commission proposal aims to prolong the current preferences until the end of 2020 and introduce human rights conditionality. Furthermore, it also envisages possible suspension of preferences for Bosnia and Herzegovina from 1 January 2016, as the country fails to adapt the preferential quotas envisaged in its Stabilisation and Association Agreement with the EU to take into account Croatia's accession to the EU. The rapporteur proposes several amendments in his draft report, mainly replacing the implementing acts by delegated acts for the decision on a suspension of preferences in cases where the margin of discretion left to the Commission is too wide, involves political assessment and should therefore be subject to a possible veto by the co-legislators. Rapporteur: Administrator: Procedure: Lead committee: Goffredo Maria Bettini (S&D) Tatiana Mrazikova 2014/0197(COD) INTA DRAFT TIMETABLE Deadline for amendments: Planned vote in INTA: Planned vote in plenary: 25 February 2015 19 March 2015 April II (tbc) Boosting trade in environmental goods Presentation by Commission Following the presentation in September 2014, the Commission will brief INTA committee on the state of play of the negotiations on Environmental Goods Agreement. The 4th round of 26-30 January focused on products in categories of cleaner and renewable energy and energy efficiency. This was the first round to include Israel, who formally joined the EGA talks in January 2015. The 5th round of negotiations scheduled for 16-20 March could be joined by Turkey and Iceland. After the 5th round the negotiations are set to continue by finalising the list of environmental goods to be included in the EGA. Green goods agreement EU-Vietnam FTA talks head to 12th round As EU-Vietnam FTA negotiations enter their final phase, newly appointed Vietnam Ambassador to the EU Mr Vuong Thua Phong and the EU chief negotiator for Vietnam Mr Mauro Petriccione will brief INTA members ahead of INTA committee visit to Vietnam in the beginning of April. 6 VIII Legislature, N°52 – 20 February 2015 TTIP: challenges and opportunities for the Internal Market Joint INTA-IMCO Public Hearing The INTA and IMCO Committee are holding a joint hearing, which focuses on the potential implications of TTIP for standardisation and consumer protection as well as prospects to foster regulatory cooperation through TTIP in the motor vehicles sector. The EU chief negotiator, Mr Garcia Bercero, has been invited, together with a couple of recognised experts in the respective areas, to present their views on these matters to the joint Committee meeting. The public discussion is part of a fresh start on TTIP engaging with stakeholders and the general public on dedicated aspects of a trade deal between the EU and the US. Programme Implications of TTIP in the area of industry and energy Joint -ITRE INTA Public Hearing The INTA and ITRE Committee are convening a joint hearing, which aims at shedding more light at the implications of TTIP on small and medium sized enterprises (SME) and on the energy sector. The first panel of speakers consists of number of experts from the energy sector, who share their assessment of potential implications of TTIP with the audience. A second panel of experts will be dedicated to looking at the possible implications for the industrial sector, in general, and, SME, in particular. This discussion complements the findings of the study on commissioned by the ITRE Committee on TTIP and the impacts for the EU energy markets and the manufacturing industries. Programme 7 VIII Legislature, N°52 – 20 February 2015 Monitoring Group Activities The INTA Committee is expected to receive feedback from a number of important meetings of INTA Monitoring Groups, notably the briefing and de-briefing of the US Monitoring Group by the EU chief negotiator in relation to the 8th TTIP negotiation round, the meeting of the INTA Monitoring Group on South Korea on the state of play of EU-Korea trade relations, the meeting of the INTA Monitoring Group on Vietnam being de-briefed following the 11th round of trade negotiations as well as the discussions within the Monitoring Group on Russia discussing the impact of the EU-Russia sanctions on EU businesses. INTA Monitoring Groups 8 VIII Legislature, N°52 – 20 February 2015 Recent events Quote of the month "As parliamentarians your involvement is crucial in all of our work – because it is through you that we hear the voices of the people that we are here to serve. And nothing, absolutely nothing, is more important than that." WTO Director General Roberto Azevêdo at the PCWTO 2015, 17 February 2015 Adopted in previous INTA meetings (21-22/01/2015) Imports of textile products from certain third countries not covered by bilateral agreements, protocols or other arrangements, or by other specific Union import rules (recast) Rapporteur: Jarosław Wałęsa (PPE) Vote on draft report: abstentions 2 in favour 32 against 2 abstentions 3 Discharge 2013: EU general budget - European Commission Vote on draft opinion against 3 Common rules for imports from certain third countries (recast) Rapporteur: Jarosław Wałęsa (PPE) Vote on draft report: in favour 32 in favour 30 against 6 abstentions 1 Imports of textile products from certain third countries not covered by bilateral agreements, protocols or other arrangements, or by other specific Union import rules (recast) Vote on the decision to enter into informal trilogue negotiations with the Council with the aim of reaching a first reading agreement (rule 73) approved by a majority of the components Members 9 VIII Legislature, N°52 – 20 February 2015 Chair´s activities: 7 January: Lunch with Japanese Ambassador 13 January: Meeting with Israeli ambassador 13 January: Meeting with Swedish permanent representative 14 January: Meeting with Mr Gardner - US Ambassador and Mr Emerson - Germany US Ambassador 22 January: Lunch with Latvian Trade Minister 6 February: Key note speech Forum Europe event STATE-OF-PLAY OF THE UNION'S TRADE DEFENCE INSTRUMENTS (TDI) On-going investigations and measures in force On 31 January 2015, there were 81 anti-dumping and 13 countervailing measures in force. Furthermore, there were undertakings in force from 4 countries covering 5 products. At the end of January, 38 investigations were on-going. 1 new investigation and 1 review were initiated. 1definitive measure was imposed. 9 reviews were concluded with confirmation of duty. 1 expiry review was concluded by termination and in 1 case the undertaking was withdrawn or repealed. RECENT WTO DISPUTE SETTLEMENT DEVELOPMENTS On 13 February, the WTO declared Chinese anti-dumping duties on European and Japanese imports of stainless steel tubes in breach of WTO rules. "In international trade we all need to play by the rules. I am glad that the WTO panel confirms this asking China to bring its customs duties in line with the WTO obligations," said EU Trade Commissioner Cecilia Malmström. "I hope to see China reacting to this ruling immediately and restoring fair trading conditions for EU producers." The WTO panel found that the Chinese measures did not fully respect the prescribed WTO methods to calculate dumping margins. Margins calculated for one of the EU's exporting producers were found not to be correct. China failed also to justify its finding that the tubes imported from the EU had caused injury to China's domestic industry. Finally, the panel concluded that the Chinese antidumping procedure came short of the WTO requirements in terms of due process and transparency. China will be expected to remove its anti-dumping duties on EU imports. The Chinese authorities can decide to appeal the ruling within the coming 60 days. 10 VIII Legislature, N°52 – 20 February 2015 Publications Recent publications by the EP Research Service Les minéraux des conflits : La proposition de règlement européen Marta Latek, EPRS Briefing, Février 2015, 7 p. Préconisée depuis 2010 par le Parlement européen, la proposition de règlement instaurant un mécanisme européen d’autocertification pour les importateurs d’étain, de tantale, de tungstène, de leurs minerais et d’or originaires de zones de conflit. Cuba's international trade Wilhelm Schöllmann, EPRS At a Glance, February 2015, 2 p. Cuba's main imports are machinery, food and fuel products, while its major exports are refined fuels, sugar, tobacco, nickel and pharmaceuticals. In addition, Cuba pays for much-needed imports through the export of services (tourism, medical personnel working abroad), remittances from Cubans living out of the country and finance from outside benefactors. Investor-State Dispute Settlement (ISDS) - State of play and prospects for reform Marta Latek and Laura Puccio, January 2015, 10 p. (updated version) The EU supports ISDS arbitration in general, while recognising the need for its reform. A consensus seems to be emerging on systemic problems found in this increasingly used system. That has led the European Commission to propose some innovative provisions in the framework of negotiations on EU trade and investment agreements, but without calling into question the ISDS system itself. 'Make in India' for more 'made in India' Enrico D'Ambrogio, EPRS At a Glance, January 2015, 2 p. Doing business in India today is much more difficult than elsewhere, but the government wants to change this. Prime Minister Narendra Modi has launched the 'Make in India' initiative to attract investors and make India a global manufacturing hub. 11 VIII Legislature, N°52 – 20 February 2015 New print and online books in the EP Research Service library collection General Interests of Host States in International Investment Law [e-book] Giorgio Sacerdoti, Cambridge University Press, 2014, 508 p. "This book offers a balanced reappraisal of bilateral treaties and regional agreements on foreign investments. The sensitive issues are examined in the light of the case law of arbitral investment tribunals and other international courts, and the analysis highlights how cross-fertilisation between trade and investment can assist in resolving conflicts". Commercial Integration between the European Union and Mexico: Multidisciplinary Studies [e-book] Gerhard Niedrist, Peter Lang, 2014, 244 p. "The economic integration between the European Union and Mexico is of strategic significance to both parts. The EU is Mexico's second most important trading partner and an integral piece in the diversification of its economic dependence from the United States. Besides, as Mexico is part of the North American Free Trade Agreement NAFTA and due to its geographical proximity to the United States, it has become of major geopolitical interest to the European Union." Product regulations and standards in WTO law Christian Struck, Wolters Kluwer Law & Business: [2014], xv, 390 p. "The interrelation of products, the human body, and the environment presents a fundamental challenge to the international trade regulatory system. In an ever more integrated global market, biotechnology, nanotechnology, and other increasingly prevalent methods of processing food and pharmaceuticals give rise not only to trade issues, but also to health, safety, and security concerns." For more information please visit intranet pages on International Trade Contact: Odile Maisse, Ext. 46201 / Nils Hammarlund, Ext. 42871, EP Research Service 12 VIII Legislature, N°52 – 20 February 2015 Coming soon INTA/European Parliament: Votes in INTA: Trade files in plenary: 24 February: - Repeal of Council Regulation (EEC) No 3030/93 on common rules for imports of certain textile products from third countries March 2015: - Common rules for imports from certain third countries (recast) INTA meeting dates Delegation to the CARIFORUM - EU Parliamentary Committee 18-19 March 2015 13-14 April 2015 - Proposal for a Decision of the European Parliament and of the Council providing macrofinancial assistance to Ukraine Thursday, 19 March 2015, from 15.00 to 16.30 in Brussels European Union World Trade Organisation Commission Work Program Key documents WTO Events calendar 2015 9-11 March Trade Policy Review: Japan EU-Japan FTA: 9th Round 23 – 27/02, Brussels, Belgium 24-26 March Trade Policy Review: Pakistan 25 March Dispute Settlement Body EU-Vietnam FTA negotiations: 12th round 09 – 13/03,Hanoi, Viet Nam 21-23 April Trade Policy Review: Australia 22 April Dispute Settlement Body Trade negotiations EU-China Investment Agreement Negotiations: 5th Round 16 – 20/03, Beijing , China, to be confirmed TiSA - Trade in Services Agreement 13 – 17/04, Geneva, Switzerland WTO TTIP negotiation: 9th round 20-24/04, Washington DC, United States EU-Japan FTA negotiations: 10th round 20 – 24/04,Tokyo, Japan, to be confirmed More information EU Trade Council meetings 16 March 2015 20 April 2015 13 VIII Legislature, N°52 – 20 February 2015 Various VARIOUS Useful links INTA on Twitter List of INTA Members INTA Intranet & e-Committee INTA Internet INTA tweets European Commission - Trade European Council Council of Ministers Latvian presidency Newshub Tweets of INTA members Documents and publications Subscription: If you wish to receive INTA newsletter, please send an email with your contact details and the subject 'Newsletter' to: [email protected] Press releases: To sign up to the INTA committee press releases or for media enquiries, write to [email protected] Editorial: Alberto Rodas González Coordination: Mindaugas Kojelis (Tel. 2 28 40914) Sandra Spatafora (Tel. 2 28 43088) Contributions: INTA secretariat, Chairman’s Office, Policy Department, EP Library, DG Trade Further information: Do you wish further information? 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