CIVIL SOCIETY DIALOGUE 2019 Commission report on ... · First Generation agreements: EEA,...
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CIVIL SOCIETY DIALOGUE
2019 Commission report on
Implementation of EU Trade Agreements
(1 January 2018 – 31 December 2018)
Geraldine Emberger
Senior Advisor for FTA Implementation/DG TRADE
Overview
1. What the 2019 report covers
2. Facilitating trade and market access
3. Enforcing bilateral commitments
4. Implementing TSD chapters
5. Economic Partnership Agreements
6. Agri-food trade
7. CETA’s 1st full calendar year of implementation
8. Small and medium sized companies
9. Conclusions: Wrapping -up
1. What the 2019 report covers
Scope: Main trade agreements applied in 2018
1. New generation agreements: South Korea, Canada, Central America, Colombia-Ecuador-Peru; Japan (preparations for entry into force)
2. First Generation agreements: EEA, Switzerland, Turkey, 5 Western Balkans, South Mediterranean and Middle East (8 countries)
3. Deep and comprehensive free trade areas: Georgia, Moldova, Ukraine
4. Economic Partnership Agreements (EPAs): 31 African, Caribbean, and Pacific countries
What the report and SWD offer....
Staff working document (EN, 300 pages):
• Latest trends and developments for each agreement
• Results of committee meetings
• Main progress and outstanding issues
• Statistics
Report (all EU official languages): • Main findings for EU TAs overall and highlights for each agreement
• Horizontal sections per topic and work ongoing
• Information on legal enforcement
• Conclusions
• Preference Utilisation Rates on EU imports and exports
2. Facilitating trade and marketaccess
Economic importance of preferential partners
Trade with preferential partners in 2018
• EU goods’ trade under FTAs continued to grow: Trade grew by 3.2%; EU exports by 2%, imports by 4.6%
• Trade grew slower than 2017, partly due to falling demand in South Korea and trade restrictions by Turkey.
• EU services’ exports to preferential increased (2017): EU exports to South Korea up 7%, Chile up 17%, Canada up 7% (35% of total trade EU-Canada)
• EU surplus of €84.6 billion (compared to overall trade deficit of €24.6 billion).
1,9%2,2%
1,9%
0,3%
2,5%
-2,6%
5,9%
4,6%
-0,6%
5,2%
7,8%
0,1%
-0,6%
11,9%
3,2%
0,8%
3,4%2,8%
1,5%
-1,8%
10,1%
All sectors Agri-food Non-agri Machinery and
appliances
Chemicals Transport
equipement
Mineral products
Growth of main sectors (2017-2018)
Exports Imports Total trade
Results on trade barrier removal
• South Korea lifted import restrictions on beef from some Member States
• Chile opened dairy and meat markets to more Member States
• Mexico removing red tape for stone fruits benefiting some Member States
• Ecuador scrapped the proposed customs service’s tax that would have been otherwise levied on a large number of EU exports.
• Egypt eliminated tariffs for EU cars and removed 2 restrictions on EU textile exports
3. Enforcing bilateral commitments
Enforcing bilateral commitments
Bilateral dispute settlement is used in 3 agreements:
• EU-South Korea: To address South Korea’s failure to ratify International Labour Organization Conventions on notably freedom of association and collective bargaining
• EU-Ukraine: To address an export ban of all unprocessed wood
• EU-Southern African Development Community: To address a 35.3% unjustified safeguard duty on EU exports of frozen chicken
4. Implementing TSD chapters
Among the COM priorities…
Strengthening international rules
Supporting the role of civil society
Enforcing commitments under TSD chapters
Progress on ratification of ILO conventions
During negotiations
o Ratification of all fundamental ILO conventions priorityin negotiations with Australia and New Zealand.
Prior to entry into force
o Mexico ratified ILO 98 (Sept 2018)
o Vietnam ratified ILO 98 (June 2019)
Early implementation:
o Japan: inter-agency WG to ratify 2 missing conventionson forced labour (105) and non-discrimination (111)
Steps taken to enhance monitoring role of CS
€3 million project to support civil society via the EU PartnershipInstrument over 3 years.
Financial resources, logistics and technical support to all EU domesticadvisory groups (DAGs) in addition to funding already provided forparticipation in meetings under FTAs.
Capacity-building workshops for DAGs organised in the margins of the TSDSub-committee meetings:
EU-Georgia DCFTA in March 2019
EU-Central America in June 2019
EU-Moldova in July 2019
EU-Colombia/Ecuador/Peru in October 2019
Enforcing TSD commitments: EU-South Korea FTA
o Korea has not yet ratified three fundamental ILO Conventions(No 87 and No 98 on Freedom of Association and No 29 on theForced Labour)
o COM and Korea held consultations in Dec 2018, EU requestedpanel on 4 July 2019
o State of play:
Panel will soon start its work and issue a report in 90 days
Korean Government initiated steps to pursue ratification bynational assembly
COM is monitoring the process closely
Example: Assertive enforcement of labour rights inPeru
o Letter Commissioner Malmström to Peru’s Trade Minister inJuly 2018 expressing concerns over TSD implementation.
o Fact-finding mission in October 2018
o Action plan agreed in December 2018 (TSD Sub-committee inQuito)
o Peru reiterated its commitment to the full implementation ofthe TSD chapter and listed the main policy initiatives alreadyin place (and/or in preparation) to address the substantivechallenges identified, while acknowledging that efforts need tocontinue.
o Peru also agreed to be proactive in using the domesticmechanisms it chose to rely on consult civil society on TSDrelated issues. COM is closely following developments.
o COM reply to CS organisations in March 2019
Strengthening climate action through trade agreements
TSD chapters with Mexico, Vietnam, Japan and Singapore containreinforced trade and climate provisions (including commitments toimplement the Paris Agreement and cooperation and joint actionswith respect to the UNFCCC objectives).
In the case of Canada (CETA) a "Recommendation on trade andclimate" was adopted at the first Trade Committee.
In the context of CETA a trade and climate workshop was held on23 January 2019 in Brussels with the participation of civil society,including businesses, from both sides.
A similar event is planned in the context of the EU-JapanAgreement in 2020.
5. Economic Partnership Agreements
EPAs continue promoting development goals
• Exports of EPA partner countries to the EU increased again by 5%
• Exports are slowly diversifying (manufacturing exports to the EU increased by 8%)
• Comoros and Samoa acceded to ESA and Pacific EPAs
• EPAs are extended beyond trade in goods: scoping work underway with Eastern and Southern Africa (ESA) partners in 2018, negotiations launched in 2019.
• EPAs come with dedicated development funds aimed at boosting trade.
• More partners started to open up (ex. Mozambique and Cote d’Ivoire)
Success story: Women wine makers in South Africa
Exports of Thokozani wines to the EU have improved after the entry into force of the SADC EPA but we need to scale up our efforts if we want to benefit fully from it. EU support to historically disadvantaged producers is very critical and welcome”.
From Denise Stubbs, Director of Thokozani Wines
6. Agri-food trade under FTAs
Main EU agri-food imports
Main EU agri-food exports
Average annual growth rates of agri-food trade (2014-18)
The EU agrifood sector continues to benefit
2,2%
-1,3%
1,2%
5,0%
11,3%
-0,6%
FTA partners Non-FTA partners FTAs -1st gen FTAs- 2nd gen DCFTAs EPAs
Annual EU Agrifood export growth rate 2017-2018
Exports
7. CETA: 1st full calendar year of implementation
Machinery and mechanical appliances
18%
Vehicles and parts14%
Pharmaceuticals12%
Mineral fuels and
oils7%Electrical
machinery5%
Organic chemicals4%
Agriculture9%
Other31%
EU exports to Canada, 2018
Export growth in main sectors
A new Canadian trade-mark Act
• More than 170 EU geographical indications entered on the list of protected Canadian GIs
• A pathway for protection via direct application to Canada of additional GI – ex: Prosciutto di carpegna.
• Practical Business guide https://trade.ec.europa.eu/doclib/docs/2019/april/tradoc_157873.pdf
CETA is about promoting values agenda
EU-Canada cooperation established on
• Trade, climate action and the Paris Agreement
• Trade and Gender (1st time in a tradeagreement)
• Small and Medium Sized Enterprises
• Animal Welfare
• Fight against anti-biotic resistance
8. Small and medium-sized enterprises
Helping SMEs to benefit from FTAs
SME Chapters in FTAs
Practical guides, IT tools
Working with regional networks
SME section in FTA annual report
SME chapters
Japan (February 2019)
SME recommendation with Canada (September 2018)
Concluded at technical level: Mexico, Mercosur, Chile, Australia
Under negotiation: Indonesia, New Zealand, Tunisia
What is in the SME chapters?
• Transparency – each side provides a website for SMEs of the other Party: includes information on the TA and on market access (links and a product specific searchable online database)
Examples: Specific DG TRADE webpage for EU-SMEs on EU-Japan EPA and CETA
https://madb.europa.eu/madb/fta_japan.htm#sme_japanhttps://madb.europa.eu/madb/fta_canada_content.htm#sme_canada
• SME Contact Points on each side:- government-to government work- interaction with Committees on SMEs issues- report to the trade/joint committee
Access2Markets
A single EU portal for
import and export
38
IT tools in progress
9. Conclusion: Wrap-up
Preferential agreements add value by….
1. Removing/reducing tariffs and other trade barriers
2. Promoting EU values on labour, climate, environment, geographical indications, etc.
3. Offering channels for dialogue & cooperation betweenparties (regulatory issues, innovative areas, etc.)
4. Providing for bilateral dispute settlement
5. Supporting developing goals (e.g. aid for trade, technicalcooperation, asymmetrical liberalisation)
Where are we today?+ EU trade agreements deliver: They facilitate trade and investment in the face of difficult global business environment.
+ Our (modern) EU trade agreements contribute to strengthening international rules on labour and the environment and enabling civil society.
!! Our citizens and companies (especially SMEs) expect more from these agreements!!
Improving outcomes requires more targeted, mutually enhancing cooperation of relevant players at European, national and regional levels.
Thank you for your attention!
More information on DG TRADE’s website:
https://ec.europa.eu/trade/policy/countries-and-regions/negotiations-and-agreements/