RECOMMENDATION on the draft Council decision on the conclusion, on behalf of the European Union, of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
20.11.2014 - (09827/2014 – C8‑0129/2014 – 2014/0086(NLE)) - ***
Committee on Foreign Affairs
Rapporteur: Andrejs Mamikins
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the draft Council decision on the conclusion, on behalf of the European Union, of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
(09827/2014 – C8‑0129/2014 – 2014/0086(NLE))
(Consent)
The European Parliament,
– having regard to the draft Council decision (09827/2014),
– having regard to the draft Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part (17901/2013),
– having regard to the request for consent submitted by the Council in accordance with Article 217 and Article 218(6), second subparagraph, point (a), Article 218(7) and Article 218(8), second subparagraph, of the Treaty on the Functioning of the European Union (C8-0129/2014),
– having regard to its resolution of 17 November 2011 containing the European Parliament's recommendations to the Council, the Commission and the EEAS on the negotiations of the EU-Georgia Association Agreement[1],
– having regard to its non-legislative resolution of ... 2014[2] on the draft decision,
– having regard to Rule 99(1), first and third subparagraphs, Rule 99(2), and Rule 108(7) of its Rules of Procedure,
– having regard to the recommendation of the Committee on Foreign Affairs and the opinion of the Committee on International Trade (A8-0041/2014),
1. Gives its consent to conclusion of the agreement;
2. Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of Georgia.
OPINION of the Committee on International Trade (7.11.2014)
for the Committee on Foreign Affairs
on the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
(09827/2014 – C8‑0129/2014 – 2014/0086(NLE))
Rapporteur: Olli Rehn
SHORT JUSTIFICATION
The Association Agreement (AA) between the European Union (EU) and Georgia, negotiated under the aegis of the Eastern Partnership from 2012 to 2013, follows the model of the EU-Ukraine Association agreement which encompasses the most ambitious free trade agreement that the EU has ever negotiated with a third country, save for countries of the European Economic Area.
By establishing a Deep and Comprehensive Free Trade Area (DCFTA)[1] with the EU, Georgia should increase its market access to the largest economic block, by taking binding commitments on the adoption of laws, standards and common values, whereas the EU will benefit from smoother commercial flows and better investment conditions in Georgia. DCFTA includes several provisions aiming at reforming Georgia’s trade and trade-related policies, in line with, and on the basis of, the EU acquis. These will provide for modernisation of the economy, anchoring of EU investment in the country, and better and more predictable policy environment.
Market access
DCFTA provides for a complete elimination of all import duties and prohibition of export duties, on all goods on the EU side as of date of entry into force of the Agreement. Only some agricultural goods (mostly products of animal origin, sugars and cereal products), which are considered sensitive in the EU, will be subject to monitoring of trade flows. In addition, a limited number of fruits and vegetables, which are subject to entry prices in the EU, will be liberalised within TRQs (tariff rate quotas) covering traditional trade flows.
Rules of origin
Georgia will apply the rules of origin which make it possible to join the Pan-Euro-Med (PEM) Convention, as a zone of cumulation of manufacturing processes with the EU and other PEM members, and which fosters positively regional economic integration for trade in goods.
Services and establishment
The EU and Georgia provide to each other market access for cross-border services in a wide range of areas, beyond the commitments inscribed in GATS. Furthermore, the parties agreed on broad access for establishment in a wide variety of sectors, which are accompanied by so called ‘mode 4’ provisions, entitling qualified personnel to temporary work in the EU or Georgia, in sectors covered by the establishment provisions.
Intellectual property
The parties reinforce their engagement to protect intellectual property beyond the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) provisions. These concern the extended protection of different intellectual property rights (i.e. trademarks, patents, design, plant variety) improved cooperation and stronger (civil) enforcement of IPs, including on the border. Equally, the Agreement on Geographical Indications is entirely integrated in the DCFTA.
Public procurement
The EU and Georgia aim for further and gradual (within 8 years) modernisation of the Georgian procurement system and alignment of the legislation with the EU one. Completion of the reform process, aiming to adapt Georgian procurement practices to the EU ones, would result in better access to the EU market on the basis of national treatment, above certain value thresholds.
Services
The reform process will cover the areas of postal and courier services, international maritime transport, electronic communications and financial services. As a result, the EU may deepen the access to its market in the services area within the bilateral services commitments. Georgia foresees up to 10 years for the gradual reform process.
Last but not least, AA foresees large sector-specific cooperation and regulatory convergence across the board, which carry long-term changes in terms of sustainable development, respect of the environment, labour rights, etc.
It is expected that the DCFTA will boost trade between the EU and Georgia – by 12% as regards Georgia’s exports to the EU, and by 7.5% on imports from the EU. The DCFTA as a whole is expected to improve the current account balance of Georgia and boost the GDP by 4.3% ( 292 million EUR in national income), provided that the reforms are completed.
Conclusions
Your rapporteur believes that the European Parliament will offer to Georgia, by giving its consent to this AA, a future closer to Europe. He is pleased by the fact that the Parliament of Georgia ratified the agreement on 18 July thus enabling its provisional application as of 1 September 2014. Your rapporteur underlines that the AA will turn out successful if it is thoroughly implemented by both partners. The EU should help Georgia in adopting the relevant laws and the decrees and in monitoring their actual enforcement.
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The Committee on International Trade calls on the Committee on Foreign Affairs, as the committee responsible, to recommend that Parliament give its consent to the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part.
RESULT OF FINAL VOTE IN COMMITTEE
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Date adopted |
6.11.2014 |
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Result of final vote |
+: –: 0: |
32 5 1 |
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Members present for the final vote |
William (The Earl of) Dartmouth, Tiziana Beghin, David Campbell Bannerman, Daniel Caspary, Salvatore Cicu, Santiago Fisas Ayxelà, Ska Keller, Jude Kirton-Darling, Gabrielius Landsbergis, Bernd Lange, Jörg Leichtfried, Marine Le Pen, David Martin, Anne-Marie Mineur, Alessia Maria Mosca, Franz Obermayr, Franck Proust, Viviane Reding, Olli Rehn, Inmaculada Rodríguez-Piñero Fernández, Matteo Salvini, Marietje Schaake, Helmut Scholz, Adam Szejnfeld, Iuliu Winkler |
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Substitutes present for the final vote |
Bendt Bendtsen, Klaus Buchner, Nicola Danti, Agnes Jongerius, Sajjad Karim, Seán Kelly, Sander Loones, Fernando Ruas, Lola Sánchez Caldentey, Jarosław Wałęsa |
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Substitutes under Rule 200(2) present for the final vote |
Laura Agea, Andi Cristea, Helga Stevens |
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- [1] Title IV of the Association Agreement.
RESULT OF FINAL VOTE IN COMMITTEE
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Date adopted |
17.11.2014 |
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Result of final vote |
+: –: 0: |
48 1 3 |
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Members present for the final vote |
Michèle Alliot-Marie, Francisco Assis, Petras Auštrevičius, Goffredo Maria Bettini, Elmar Brok, Klaus Buchner, Andi Cristea, Mark Demesmaeker, Georgios Epitideios, Eugen Freund, Sandra Kalniete, Tunne Kelam, Afzal Khan, Andrey Kovatchev, Eduard Kukan, Ilhan Kyuchyuk, Arne Lietz, Barbara Lochbihler, Andrejs Mamikins, Ramona Nicole Mănescu, Tamás Meszerics, Francisco José Millán Mon, Javier Nart, Pier Antonio Panzeri, Demetris Papadakis, Alojz Peterle, Tonino Picula, Andrej Plenković, Jozo Radoš, Sofia Sakorafa, Jacek Saryusz-Wolski, Alyn Smith, Jaromír Štětina, Eleni Theocharous, László Tőkés, Johannes Cornelis van Baalen |
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Substitutes present for the final vote |
Bodil Ceballos, Angel Dzhambazki, Mariya Gabriel, Ana Gomes, Marek Jurek, Othmar Karas, Gabrielius Landsbergis, Javi López, Gilles Pargneaux, Helmut Scholz, György Schöpflin |
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Substitutes under Rule 200(2) present for the final vote |
Isabella Adinolfi, David Coburn, Julia Pitera, Maurice Ponga, Jarosław Wałęsa |
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