Screening Chapter 30: External Relations The …...Anti-dumping measures created to counter dumping...

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1 Screening Screening Chapter 30: External Relations Chapter 30: External Relations The European Union The European Union Common Commercial Policy Common Commercial Policy 10 July 2006 10 July 2006 Presentation by S. Presentation by S. Mu Mu ñ ñ oz Albarran oz Albarran & M. & M. Hamdouch Hamdouch

Transcript of Screening Chapter 30: External Relations The …...Anti-dumping measures created to counter dumping...

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Screening Screening Chapter 30: External RelationsChapter 30: External Relations

The European UnionThe European UnionCommon Commercial PolicyCommon Commercial Policy

10 July 200610 July 2006Presentation by S.Presentation by S.MuMuññoz Albarranoz Albarran & M.& M.HamdouchHamdouch

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ContentsContents1. Introduction: EU in world trade1. Introduction: EU in world trade

2. EU Trade Policy 2. EU Trade Policy

3. WTO related aspects / Multilateral policy3. WTO related aspects / Multilateral policy

4. Special trade4. Special trade acquisacquis which requires which requires transpositiontransposition

5. Bilateral5. Bilateral SectoralSectoral AgreementsAgreements

6. International Agreements6. International Agreements

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1. Introduction: the EU in world trade (1/2)1. Introduction: the EU in world trade (1/2)19.7% of world trade: 18.1% world trade in goods, 26.4% world trade in services

First exporterSecond largest

importer

Foreign direct investment (FDI): EU-25 source of 50% of the world’s FDI (€225 billion) and hosts 25% of the world’s FDI (€119 billion) on average (2000-2004)

A MAJORA MAJOR

TRADING POWERTRADING POWER

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A A MAJORMAJOR

TRADING TRADING POWERPOWER

SHARE IN WORLD TRADE IN GOODSJapan; 7,00%

US; 16,70%

EU 25; 18,10%

China; 7,90%

Others; 50,30%

1. Introduction: the EU in world trade (2/2)1. Introduction: the EU in world trade (2/2)

SHARE IN WORLD TRADE IN SERVICES

Japan; 7,50%

EU 25; 26,40%China; 4,40%

Others; 42,80%

US; 18,90%

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2. EU Trade policy 2. EU Trade policy –– basic features (1/10) basic features (1/10)

Being the leading trade Being the leading trade ““blocbloc””

Strong interest in:

open markets

clear regulatoryframeworks

Responsibility to:

EU citizens

rest of the World

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Policy conceptsPolicy concepts

to contribute to sustainable development by to contribute to sustainable development by integrating more countries in world tradeintegrating more countries in world trade

Promote European interests and defend European valuesOn democracy, rule of law, environment, social rights, public services, cultural diversity, food security...

Open world trade markets, through:the progressive abolition of obstacles to international trade and the lowering of customs barriers

Harness globalisation by:agreeing on a set of rules to regulate markets, and ensuring compatibility of trade opening with other societal values

2. EU Trade policy 2. EU Trade policy –– basic features (2/10) basic features (2/10)

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multilateralmultilateral bilateral/bilateral/regionalregional

unilateralunilateral

3 3 dimensionsdimensions

2. EU Trade policy 2. EU Trade policy –– basic features (3/10) basic features (3/10)

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multilateralmultilateral

Mostly implemented in the framework of the WTO with the aim of promoting market access with rules, in the context of effective global governance.

For example:

• for trade in goods: policies such as “tariff reduction” and technical barriers to trade.

including the promotion of EU values :

• environmental concerns

• food safety

• cultural diversity

• … and how to promote core labour standards ?

2. EU Trade policy 2. EU Trade policy –– basic features (4/10) basic features (4/10)

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bilateral/regionalbilateral/regionalIn addition to the WTO's multilateral negotiations, the EU concludes bilateral agreements and devises specific trading policies with third countries and regional areas. 121 countries are potentially linked to the EU by regional trade agreements, many negotiated in the 1990s.

EU policy rationale for bilateral agreements

• trade expansion and rules-making (WTO+)

• fostering development and...

• … promoting regional development

• “Neighbourhood policy”

Key EU bilateral agreements include:• Economic Partnership Agreements in negotiation with ACP countries (Cotonou)• Free Trade Agreements with EFTA, EEA, Euromed, Mercosur (in negotiation), Mexico, South Africa...• Customs Unions with Turkey, Andorra and San Marino• Partnership and Cooperation Agreements with Russia and Ukraine• Stabilisation & Association Agreements with Balkans countries

2. EU Trade policy 2. EU Trade policy –– basic features (5/10) basic features (5/10)

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unilateralunilateralThe EU also implements unilateral measures as an additional trade policy instrument in the interests of development and/or political stability in line with the Union’s key political priorities:

General System of Preferences (GSP) - the classical instrument for fostering development is by granting tariff preferences. The EU's GSP grants products imported from GSP beneficiary countries either duty-free access or a tariff reduction depending on the sensitivity of the product and the GSP arrangement enjoyed by the country concerned.

“Everything But Arms” initiative (EBA) - EBA is a special GSP arrangement for the least developed countries. EBA grants duty-free access to imports of all products from LDCs without any quantitative restrictions, except to arms and munitions.

Asymmetrical preferences e.g. for the Balkans with the aim of ensuring peace, stability, freedom and economic prosperity in the region (cf. “Wider Europe”).

2. EU Trade policy 2. EU Trade policy –– basic features (6/10) basic features (6/10)

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The EU is the most open market for poor countriesThe EU is the most open market for poor countries

178 developing countries and territories are beneficiaries of the EU’s GSP.

In 2004, EU imports benefiting from GSP preferences amounted to more than €50 billion. Bangladesh leading beneficiary country followed by China, Pakistan, Brazil, Malaysia and India.

The 49 Least Developed Countries (EBA -"Everything But Arms") benefit from duty-free and quota–free access for practically all exports of originating products to the EU for an unlimited period of time.

The GSP is implemented following cycles of 10 years, providing stability to traders and economic operators. New guidelines for 2006-2015.

Key Facts on the Key Facts on the General General System of PreferencesSystem of Preferences

(GSP)(GSP)

2. EU Trade policy 2. EU Trade policy –– basic features (7/10) basic features (7/10)

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NEW GSP• General scheme: increase of product coverage from 6900 to 7200 (mainly agriculture and fishery sector of interest for developing countries).

• Special scheme for Least Developed Countries: Everything But Arms(EBA).

• New special GSP+ for vulnerable countries = duty free on 7200 products if the country meets criteria:

-ratification and implementation of 27 key international conventions;

-few benefits under the GSP;

-a poorly diversified economy.

• Tariff Reduction: no changes

-MFN ad valorem duties reduced by flat rate of 3,5 % points;

-Clothing and textiles: 20% reduction;

-Specific duties: 30% reduction;

-Standstill clause.

2. EU Trade policy 2. EU Trade policy –– basic features (8/10) basic features (8/10)

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2. EU Trade policy 2. EU Trade policy –– basic features (9/10) basic features (9/10) NEW GSP BENEFITS• Differ according to sensitivity of products: Non-sensitive products enter duty-free; Sensitive products enjoy tariff reduction.• How is duty calculated?

CN CODE 0703 90 00 - “Leeks and other alliaceous vegetables, fresh or chilled” - Sensitive productMFN Reduction Calculated Previous Applied Rate GSP rate GSP rate GSP rate10,4% 3,5 %-points 6,9% 8,4% 6,9%

CN CODE 3204 16 - “Synthetic organic colorings matter”-Sensitive productMFN Reduction Calculated Previous Applied Rate GSP rate GSP rate GSP rate6,5% 3,5 %-points 3,0% 2,2% 2,2%

CN CODE 0306 13 50-“Shrimps of the genus Penaeus-frozen”-Sensitive productMFN Reduction Calculated Previous Applied rate GSP rate GSP rate GSP rate12 % 3,5 %-points 8,5 % 4,2 % 4,2 %

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GRADUATION OF SECTORS

• Reason: level of competitiveness which ensures further growth reached in the sectors concerned, even without preferential access to the EU market

• CHANGE: CCT sections instead of sectors

• Graduated sectors lose GSP preferences

• What does GSP concretely means for you after enlargement?

As part of the EU, you will have to grant it too.

2. EU Trade policy 2. EU Trade policy –– basic features (10/10)basic features (10/10)

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AArticlerticle 133 of the EC Treaty provides in more detail for 133 of the EC Treaty provides in more detail for

the common commercial policythe common commercial policy

How it works How it works NOWNOW

Rests on:• Shared, uniform concept of policy • A decision-making process based on a mixture of ‘exclusive and shared competences’

Comprises:• Trade in goods, services and trade-related aspects of intellectual property rights• special provisions for specific fields (e.g. audiovisual, cultural, educational, social and health services)

2. EU Trade policy 2. EU Trade policy –– How it works (1/7)How it works (1/7)

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How it works How it works NOWNOW

The negotiating processThe Commission is the negotiator

• On behalf of the 25 Member States

The Council is the decision maker• Mandate = determined by the Council on the basis of a Commission proposal• The Commission negotiates on the basis of this mandate• The Council approves the result of the negotiation (generally by qualified majority)

The European Parliament• is informed by the Commission of trade policy developments• gives “assent” on major treaty ratifications (when covering more than trade)

2. EU Trade policy 2. EU Trade policy –– How it works (2/7)How it works (2/7)

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How it works How it works NOWNOW

The 133 Committee== a special committee provided for by Art. 133 of the EC Treaty a special committee provided for by Art. 133 of the EC Treaty

appointed by the Council to assist the Commissionappointed by the Council to assist the Commission

== a permanent dialogue and sounding board between the a permanent dialogue and sounding board between the

Commission and the EU Member States on trade policyCommission and the EU Member States on trade policy

Civil Society dialogue== regular consultation with business, trades unions and civil socregular consultation with business, trades unions and civil societyiety

2. EU Trade policy 2. EU Trade policy –– How it works (3/7)How it works (3/7)

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How it works How it works NOWNOW

Note that the exclusive Community competence covers trade Note that the exclusive Community competence covers trade

policy; for now, the rest is left to the EU Member States.policy; for now, the rest is left to the EU Member States.

Examples of Member State trade activity include:Examples of Member State trade activity include:

•• organising trade fairs;organising trade fairs;

•• promoting national exports;promoting national exports;

•• promoting inward investment;promoting inward investment;

•• providing tailored advice on importing and exporting providing tailored advice on importing and exporting to/from their country.to/from their country.

2. EU Trade policy 2. EU Trade policy –– How it works (4/7)How it works (4/7)

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The trade policy instrumentsThe trade policy instruments

““DefensiveDefensive”” instruments to ensure fair trade and defend the interests of instruments to ensure fair trade and defend the interests of European companiesEuropean companies……

... have been designed in line with specific WTO agreements ... have been designed in line with specific WTO agreements recognising the right of members to counter unfair practices:recognising the right of members to counter unfair practices:

Safeguards: A WTO member may restrict imports of a product temporarily if its domestic industry is seriously injured or threatened with injury caused by a surge in imports.

Anti-dumping measures created to counter dumping practices, the most frequently encountered trade-distorting practices. Dumping occurs when manufacturers from a non-EU country sell goods in the EU below the sales price in their domestic market, or below the cost of production.

Anti-subsidy measures designed to combat subsidies, which are made available to manufacturers by public authorities and which can also distort trade when they help to reduce production costs or cut the prices of exports to the EU unfairly.

2. EU Trade policy 2. EU Trade policy –– How it works (5/7)How it works (5/7)

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The trade policy instrumentsThe trade policy instruments

““OffensiveOffensive”” instruments to open markets and eliminate obstacles to instruments to open markets and eliminate obstacles to trade... trade...

…… across the multilateral, bilateral and unilateral fronts:across the multilateral, bilateral and unilateral fronts:

The Trade Barriers Regulation (TBR) gives EU industry the opportunity to lodge a complaint with the Commission when encountering tradebarriers that restrict their access to third country markets. The TBR can also be used to evaluate whether there is evidence of violation of international trade rules, resulting in adverse trade effects - this could lead to the initiation of the WTO dispute settlement mechanism.

2. EU Trade policy 2. EU Trade policy –– How it works (6/7)How it works (6/7)

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Exte

rnal

Tra

de

What happens with both TBR and TDI upon enlargement?EU TDI + TBR legislation (= part of EU Common Commercial Policy) is directly applicable in the new Member States and all national legislation of the new Member States automatically becomes void

• All EU TDI (TBR if any) measures are automatically applicable in the enlarged EU (including the new Member States). The updated list of EU TDI measures can always be downloaded from Europa website http://ec.europa.eu/comm/trade/issues/respectrules/anti_dumping/stats.htm

• All EU TDI measures and on-going investigations against the new Member States automatically lapse and all national TDI measures and on-going investigations (both against EU Member States and other countries) of the new Member States automatically lapse;

• New Member States are fully involved in EU decision-making process on TDI+TBR (advisory committees, Council).

2. EU Trade policy 2. EU Trade policy –– How it works (7/7)How it works (7/7)

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The core of the multilateral ruleThe core of the multilateral rule--based systembased system

Unique forum for trade negotiations, rule setting, resolution

of disagreementsObjectivesObjectives

– to boost international economic growth

– to ensure business confidence

FunctioningFunctioning

Consensus = each country on an equal footing

Core principlesCore principles

– No country may apply quantitative restrictions or similar measures

– Non-discrimination - ‘Most FavouredNation’ principle

– National Treatment - no country may discriminate between its own products and imported products

– Transparency - all rules affecting trade must be transparent; publication, notification, discussion, trade policy reviews

3. WTO Related Aspects/Multilateral Policy 3. WTO Related Aspects/Multilateral Policy

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••What do we expect you to do What do we expect you to do beforebefore you join the EU?you join the EU?

Coordinate your WTO positions with us Coordinate your WTO positions with us Same applies for other international Same applies for other international forafora (e.g. (e.g. OECD).OECD).

••What will we have to do What will we have to do afterafter you join the EU? you join the EU?

Some examples:Some examples:

••Art. XXIV:5 & Art. XXIV:6Art. XXIV:5 & Art. XXIV:6

••GPAGPA

••Services ConsolidationServices Consolidation

3. WTO Related Aspects/Multilateral Policy 3. WTO Related Aspects/Multilateral Policy --WTO & EnlargementWTO & Enlargement

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• For every enlargement of the EU, the provisions of Art. XXIV:5 and Art. XXIV:6 of GATT 1994 have to be respected.

• The evaluation is carried out by the WTO Secretariat, based on data submitted by the Commission.

• The Commission notifies the modification and withdrawal(s) of the schedules of the (enlarged) customs union before accession.

• Following the notification, concerned WTO partners may make claims for compensation in case their MFN trade (in a certain product) is negatively affected by enlargement.

• The European Commission evaluates the claims, and if accepted, enters into negotiations to settle the claim.

• Compensation usually takes the form of lowering EU tariffs and expansion and opening of quotas, depending on the level of tariffs and of trade of the new Member State with WTO members.

3. WTO Related Aspects/Multilateral Policy 3. WTO Related Aspects/Multilateral Policy --Art. XXIV:5 and Art. XXIV:6 of GATT 1994 Art. XXIV:5 and Art. XXIV:6 of GATT 1994 ProceduresProcedures

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••The overall effect of EU enlargement for trade in (nonThe overall effect of EU enlargement for trade in (non--agricultural and agricultural) goods will be beneficial for thiragricultural and agricultural) goods will be beneficial for third d countries. countries.

••Nevertheless, for some tariff lines, the acceding countries may Nevertheless, for some tariff lines, the acceding countries may have had lower tariffs prior to adopting the Common External have had lower tariffs prior to adopting the Common External Tariff of the EC, possibly triggering compensation claims.Tariff of the EC, possibly triggering compensation claims.••The scale of compensation on particularly sensitive lines could The scale of compensation on particularly sensitive lines could be significant. be significant. ••To minimize the possibilities for compensation claims, To minimize the possibilities for compensation claims, acceding countries are advised not to autonomously lower any acceding countries are advised not to autonomously lower any duties in the preduties in the pre--accession period.accession period.••Lowering of bound duties can trigger claims. Reductions in Lowering of bound duties can trigger claims. Reductions in applied rates can create difficulties in negotiations and, more applied rates can create difficulties in negotiations and, more importantly, increase trade flows on which compensation is importantly, increase trade flows on which compensation is calculated.calculated.

3. WTO Related Aspects/Multilateral Policy 3. WTO Related Aspects/Multilateral Policy --Art. XXIV:5 and Art. XXIV:6 of GATT 1994 Art. XXIV:5 and Art. XXIV:6 of GATT 1994 ImplicationsImplications

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•• The EC will negotiate in due time with GPA Parties the The EC will negotiate in due time with GPA Parties the accession of Croatia and Turkey (as extension of the EC accession of Croatia and Turkey (as extension of the EC territory).territory).

•• Until then Croatia & Turkey must make sure their GP Until then Croatia & Turkey must make sure their GP legislation is compatible with the directives.legislation is compatible with the directives.

•• Croatia & Turkey will have to prepare lists of entities Croatia & Turkey will have to prepare lists of entities (central, sub(central, sub--central, utilities).central, utilities).

•• Croatia & Turkey should refrain from engaging in any new Croatia & Turkey should refrain from engaging in any new GP agreement and report to the Commission on any FTA or GP agreement and report to the Commission on any FTA or GP agreement concluded to date or being currently GP agreement concluded to date or being currently negotiated.negotiated.

3. WTO Related Aspects/Multilateral Policy 3. WTO Related Aspects/Multilateral Policy ––What should Croatia and Turkey do regarding What should Croatia and Turkey do regarding the GPA?the GPA?

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4. Special trade4. Special trade acquisacquis which requires which requires transpositiontransposition

All tradeAll trade acquisacquis is directly applicable upon is directly applicable upon accession of Croatia & Turkey to the EU accession of Croatia & Turkey to the EU except the following trade issues which except the following trade issues which require national transposition:require national transposition:

-- EU Export Control regime for dualEU Export Control regime for dual--use items and technologies;use items and technologies;

-- Export Credits.Export Credits.

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LEGAL FRAMEWORKLEGAL FRAMEWORK

•• Regulation 1334/2000 and its subsequent Regulation 1334/2000 and its subsequent amendments. Directly applicable in all MS.amendments. Directly applicable in all MS.

•• Joint action CFSP 401/2000 on technical assistance Joint action CFSP 401/2000 on technical assistance related to military projects. Still under national related to military projects. Still under national implementation in some MS.implementation in some MS.

•• Member StatesMember States’’ complementary legislation.complementary legislation.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (1/7)Dual Use Goods (1/7)

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ITEMS CONTROLLEDITEMS CONTROLLED

•• Latest list of items controlled in the EU can be found in Latest list of items controlled in the EU can be found in Annex I of Regulation 394/2006 (OJ of the EU number Annex I of Regulation 394/2006 (OJ of the EU number L74 dated 13 March 2006). The list is divided into 10 L74 dated 13 March 2006). The list is divided into 10 categories (from 0, nuclear, to 9, space). categories (from 0, nuclear, to 9, space).

•• The origin of those lists: the international export control The origin of those lists: the international export control regimes.regimes.

•• Other dualOther dual--use technologies can be controlled at use technologies can be controlled at national level on the basis of Articles 4 and 5 of Council national level on the basis of Articles 4 and 5 of Council Regulation NRegulation N°° (EC) 1334/2000. Additional lists under (EC) 1334/2000. Additional lists under Article 5 are implemented by 3 MS (France, UK, Article 5 are implemented by 3 MS (France, UK, Germany). They are available on the OJ of the EU. Germany). They are available on the OJ of the EU. Series C. Number 270. Dated 29 October 2005.Series C. Number 270. Dated 29 October 2005.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (2/7)Dual Use Goods (2/7)

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IMPLEMENTATION OF ARTICLE 4 (catch all clause or IMPLEMENTATION OF ARTICLE 4 (catch all clause or end use control which enables national control of nonend use control which enables national control of non--listed duallisted dual--use items)use items)

•• Role of governments: in particular articles 4Role of governments: in particular articles 4--1, 41, 4--2;2;

•• Role of exporters: articles 4Role of exporters: articles 4--4 and 44 and 4--5.5.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (3/7)Dual Use Goods (3/7)

DELIVERY OF LICENSESDELIVERY OF LICENSES

•• Member States are responsible for granting export Member States are responsible for granting export licenses in general;licenses in general;••The specificity of the Community General Export The specificity of the Community General Export Authorization, Annex II of Regulation 394/2006.Authorization, Annex II of Regulation 394/2006.

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CRITERIA TO DELIVER/DENY LICENCESCRITERIA TO DELIVER/DENY LICENCES

•• Criteria to deliver licenses are not listed in a Criteria to deliver licenses are not listed in a comprehensive manner in article 8 of Regulation comprehensive manner in article 8 of Regulation 1334/2000.1334/2000.

•• Cooperation between Member States.Cooperation between Member States.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (4/7)Dual Use Goods (4/7)

TYPES OF LICENSES IN FORCE IN THE EUTYPES OF LICENSES IN FORCE IN THE EU

•• National general licences (7 EU Member States National general licences (7 EU Member States implement these licences: UK, Germany, France, Italy, implement these licences: UK, Germany, France, Italy, Netherlands, Greece, Sweden);Netherlands, Greece, Sweden);•• Global licences (not in all new EU MS) as defined in Global licences (not in all new EU MS) as defined in article 6article 6--5;5;•• Individual licences (all MS);Individual licences (all MS);•• Licences on nonLicences on non--listed items (individually granted).listed items (individually granted).

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CONTROLS OF INTANGIBLE TRANSFERS OF CONTROLS OF INTANGIBLE TRANSFERS OF TECHNOLOGYTECHNOLOGY

•• Article 2biii) of EU Regulation 1334/2000;Article 2biii) of EU Regulation 1334/2000;

•• Joint Action CFSP 401/2000 concerning controls linked to Joint Action CFSP 401/2000 concerning controls linked to technical assistance for military purposes/moves of natural technical assistance for military purposes/moves of natural persons across borders.persons across borders.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (5/7)Dual Use Goods (5/7)

DIVISION OF LABOUR IN THE EUDIVISION OF LABOUR IN THE EU

•• European Commission has the right of initiative to propose European Commission has the right of initiative to propose modification of EU legislation; modification of EU legislation; •• All EU Member States are members of export control All EU Member States are members of export control regimes except 7 new EU MS in Missile Technology Control regimes except 7 new EU MS in Missile Technology Control regime and one new EU MS in regime and one new EU MS in WassenaarWassenaar; ; •• MS responsible for enforcement & sanctions;MS responsible for enforcement & sanctions;•• Membership of the European Community in export control Membership of the European Community in export control regimes is exception.regimes is exception.

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ASSESSMENT OF EU SYSTEMASSESSMENT OF EU SYSTEM

•• The mandate of the The mandate of the ThessalonikiThessaloniki Action plan (June 2003) and Action plan (June 2003) and its implementation;its implementation;

•• The 2004 Peer Reviews and their follow up.The 2004 Peer Reviews and their follow up.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (6/7)Dual Use Goods (6/7)

2006 WORK PROGRAMME2006 WORK PROGRAMME

•• Preparation of a Commission Communication to the Council to Preparation of a Commission Communication to the Council to be based on the:be based on the:

–– Results of the Impact assessment study on possible Results of the Impact assessment study on possible options to amend the Regulation carried out in 2005 (report options to amend the Regulation carried out in 2005 (report available on DG TRADE website);available on DG TRADE website);–– Compliance with UN Resolution 1540: brokering/transit Compliance with UN Resolution 1540: brokering/transit and transhipment/sanctions;and transhipment/sanctions;–– Overall objective of facilitating trade and of strengthening Overall objective of facilitating trade and of strengthening security;security;–– CContinuedontinued preparation of enlargement. preparation of enlargement.

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SOURCES OF INFORMATIONSOURCES OF INFORMATION

•• You can also get information from DG TRADE website You can also get information from DG TRADE website at : at : http://http://europaeuropa..eueu..intint//commcomm/trade/issues//trade/issues/sectoralsectoral/industry//industry/dualusedualuse/index_en./index_en.htmhtm

•• TRADE page on dual use is related to the Council TRADE page on dual use is related to the Council website and the international export control regimeswebsite and the international export control regimes’’websites as well as websites as well as SIPRISIPRI’’ss

http://http://europaeuropa..eueu..intint//commcomm/trade/issues//trade/issues/sectoralsectoral/industry//industry/dualusedualuse/links./links.htmhtm

•• You can access the details of MS licensing authorities You can access the details of MS licensing authorities and enter into their websites by clicking on and enter into their websites by clicking on «« MS MS contact points and websitescontact points and websites »»..

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Dual Use Goods (7/7)Dual Use Goods (7/7)

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•• ShortShort--term Communication (2005/C325/11):term Communication (2005/C325/11):

-- Definition of marketable risks; Definition of marketable risks;

-- Clarification which risks cannot be insured by MS.Clarification which risks cannot be insured by MS.

•• OECD Arrangement on Export Credits:OECD Arrangement on Export Credits:

-- Framework for orderly use of export credits;Framework for orderly use of export credits;

-- Level playing field for official support;Level playing field for official support;

-- ExportersExporters’’ competition based on quality and price;competition based on quality and price;

-- Maximum terms and conditions;Maximum terms and conditions;

-- Minimum premium and interest rates;Minimum premium and interest rates;

-- Trade Trade --and aidand aid-- related export credits.related export credits.

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Export Credits (1/2)Export Credits (1/2)

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•• Council DirectivesCouncil Directives-- Joint Insurance (84/568/EEC of 27 Nov 1984)Joint Insurance (84/568/EEC of 27 Nov 1984)-- Medium and LongMedium and Long--Term (98/29/EC of 7 May 1998)Term (98/29/EC of 7 May 1998)

These Directives must be transposed intoThese Directives must be transposed intonational legislationnational legislation

•• EU Consultations EU Consultations -- Council Decision 76/641/EEC of 27 July 1976.Council Decision 76/641/EEC of 27 July 1976.-- Notification of the deviation of standard rules:Notification of the deviation of standard rules:

. Notifications under OECD Arrangement.. Notifications under OECD Arrangement.

. Repayment terms > 5 years.. Repayment terms > 5 years.

•• Inclusion of subcontracts Inclusion of subcontracts -- Council Decision (82/854/EEC of 10 Dec 1982)Council Decision (82/854/EEC of 10 Dec 1982)

4. Special trade4. Special trade acquisacquis which requires which requires transposition transposition –– Export Credits (2/2)Export Credits (2/2)

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5. Bilateral5. Bilateral SectoralSectoral AgreementsAgreements•• Textiles:Textiles: Belarus, Russia, China, Serbia, Belarus, Russia, China, Serbia, Ukraine, Uzbekistan, Vietnam, Pakistan, Sri Ukraine, Uzbekistan, Vietnam, Pakistan, Sri Lanka, India, Brazil (see handout)Lanka, India, Brazil (see handout)

•• Steel:Steel: Russia, Ukraine, KazakhstanRussia, Ukraine, Kazakhstan

•• MRAsMRAs, veterinary, wine agreements, veterinary, wine agreements covered covered by other chapters of screening.by other chapters of screening.

•• What do you have to do before What do you have to do before enlargement?enlargement?

Nothing. Insofar as they are in force Nothing. Insofar as they are in force when you become an EU Member when you become an EU Member State, they State, they will be directly applicable will be directly applicable to you and we will ensure their to you and we will ensure their adaptation as appropriate.adaptation as appropriate.

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6. International Agreements (1/2)6. International Agreements (1/2)WHAT DO WHAT DO YOUYOU HAVE TO DO BEFORE ENLARGEMENT?HAVE TO DO BEFORE ENLARGEMENT?

-- As part of your EU accession commitments, you will As part of your EU accession commitments, you will have to bring into conformity all your respective have to bring into conformity all your respective international agreements with the international agreements with the ““acquis acquis communautairecommunautaire””. For trade and trade. For trade and trade--related related agreements, this implies renouncing, by the date of agreements, this implies renouncing, by the date of accession, all bilateral or regional Free Trade accession, all bilateral or regional Free Trade Agreements with third parties. Agreements with third parties.

-- It also implies terminating or modifying trade and tradeIt also implies terminating or modifying trade and trade--related nonrelated non--preferential agreements, to bring them in line preferential agreements, to bring them in line with the relevant with the relevant ““acquis communautaireacquis communautaire””. .

WHAT DOES THE WHAT DOES THE ECEC HAVE TO DO BEFORE HAVE TO DO BEFORE ENLARGEMENT?ENLARGEMENT?

-- Make sure that they are adapted as appropriate inMake sure that they are adapted as appropriate inorder to take account of your accession.order to take account of your accession.

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Mexico

Chile

South Africa

Euromed

CIS Countries

BalkansAsia

Cotonou

Mercosur

EEA

Central America

6. International Agreements (2/2)6. International Agreements (2/2)