REPORT on the proposal for a regulation of the European Parliament and of the Council introducing emergency autonomous trade preferences for Pakistan
21.3.2011 - (COM(2010)0552 – C7‑0322/2010 – 2010/0289(COD)) - ***I
Committee on International Trade
Rapporteur: William (The Earl of) Dartmouth
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a regulation of the European Parliament and of the Council introducing emergency autonomous trade preferences for Pakistan
(COM(2010)0552 – C7‑0322/2010 – 2010/0289(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2010)0552),
– having regard to Article 294(2) and Article 207(2), of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0322/2010),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on International Trade and the opinion of the Committee on Foreign Affairs (A7-0069/2011),
1. Adopts its position at first reading hereinafter set out;
2. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;
3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1 Proposal for a regulation Citation 2 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
Having regard to the request of November 18, 2010 for a WTO waiver for additional autonomous trade preferences granted by the European Union to Pakistan, |
Amendment 2 Proposal for a regulation Recital 1 | |
|
Text proposed by the Commission |
Amendment |
|
(1) The relationship between the European Union and the Islamic Republic of Pakistan (hereinafter referred to as Pakistan) builds on the Cooperation Agreement which entered into force on 1 September 20041 . One of its main objectives is to secure the conditions for and to promote the increase and development of trade between the Parties. |
(1) The relationship between the European Union and the Islamic Republic of Pakistan (hereinafter referred to as Pakistan) builds on the Cooperation Agreement which entered into force on 1 September 20041 . One of its main objectives is to secure the conditions for and to promote the increase and development of trade between the Parties. Respect for human rights, including core labour rights, and democratic principles are also an essential element of that Agreement. |
Amendment 3 Proposal for a regulation Recital 3 | |
|
Text proposed by the Commission |
Amendment |
|
(3) Humanitarian aid is of course the primary instrument in this kind of situation and the Union has been at the forefront in this field since the beginning of the emergency. |
(3) Humanitarian aid is of course the primary instrument in this kind of situation and the Union has been at the forefront in this field since the beginning of the emergency pledging in excess of EUR 415 million in emergency aid to Pakistan. |
Amendments 4 Proposal for a regulation Recital 4 | |
|
Text proposed by the Commission |
Amendment |
|
(4) It will be important to use all available means to support Pakistan's recovery from this emergency and progress towards future development. |
(4) It will be important to use all available means to support Pakistan's recovery from this emergency, including the proposed exceptional trade measures to boost Pakistan's exports in order to contribute to its future economic development while ensuring that consistency and coherence is maintained at all levels with a view to developing a sustainable long-term strategy. |
Amendment 5 Proposal for a regulation Recital 4 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(4a) The severity of this natural disaster demands an immediate and substantial response, which would take into account the geostrategic importance of Pakistan’s partnership with the Union, mainly through Pakistan's key role in the fight against terrorism, while contributing to the overall development, security and stability of the region. |
Amendment 6 Proposal for a regulation Recital 4 b (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(4b) The effects of the autonomous trade preferences should be able to be measured concretely in terms of job creation, poverty eradication and the sustainable development of Pakistan's working population and poor. |
Amendments 7 Proposal for a regulation Recital 6 | |
|
Text proposed by the Commission |
Amendment |
|
(6) In particular, the European Council underlined its firm commitment to grant exclusively to Pakistan increased market access to the Union through the immediate and time limited reduction of duties on key imports from Pakistan. |
(6) In particular, the European Council underlined its firm commitment to grant exclusively to Pakistan increased market access to the Union through the exceptional, immediate and time limited reduction of duties on key imports from Pakistan. On receipt of this mandate, the Commission proposed a package identifying 75 tariff lines specific to Pakistan's core export sectors in those areas worst hit by the floods, asserting that an increase in Pakistani exports to the Union of EUR 100 million or more a year would provide real, substantial and worthwhile assistance to the region. |
Amendment 8 Proposal for a regulation Recital 6 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(6a) Pakistan's trade with the Union is mainly composed of textiles and clothing products which according to the Commission accounted for 73.7% of Pakistani exports to the Union in 2009, but also ethanol and leather, which are sensitive industrial products in certain Member States where jobs in the industry have already been heavily impacted by the global recession and the industries are struggling to adapt to a new global trading environment. |
Amendment 9 Proposal for a regulation Recital 6 b (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(6b) The textiles sector is of key importance to the Pakistani economy, accounting for 8.5% of GDP and employing 38% of the labour force about half of whom are women. |
Amendment 10 Proposal for a regulation Recital 7 | |
|
Text proposed by the Commission |
Amendment |
|
(7) It is therefore appropriate to extend autonomous trade preferences to Pakistan by suspending for a limited period of time all tariffs for certain products of export interest to Pakistan. The provision of these trade preferences would not cause any meaningful adverse effects on the domestic market of the Union and would not affect negatively least developed Members of the World Trade Organisation (WTO). |
(7) Given the hardship being suffered by the Pakistani people due to the devastating floods it is therefore appropriate to extend exceptional autonomous trade preferences to Pakistan by suspending for a limited period of time all tariffs for certain products of export interest to Pakistan. The provision of these trade preferences should only cause limited adverse effects on the domestic market of the Union and should not affect negatively least developed Members of the World Trade Organisation (WTO). |
Amendment 11 Proposal for a regulation Recital 7 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(7a) Theses measures are proposed as part of an exceptional package, in response to the specific situation in Pakistan. They should not constitute a precedent for the Union's trade policy with other countries. |
Amendment 12 Proposal for a regulation Recital 8 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(8a) The granting of autonomous trade preferences is linked to respect for the fundamental principles of democracy and human rights. |
Amendments 13 Proposal for a regulation Recital 9 | |
|
Text proposed by the Commission |
Amendment |
|
(9) Entitlement to benefit from the autonomous trade preferences is conditional on Pakistan's compliance with the relevant rules of origin of products and the procedures related thereto as well as involvement in effective administrative cooperation with the Union in order to prevent any risk of fraud. Serious and systematic violations of the conditions for the entitlement to the preferential arrangement, fraud or failure to provide administrative cooperation for the verification of origin of goods should constitute reasons for a temporary suspension of the preferences. In this respect, the Commission should be permitted to adopt, if necessary, such temporary measures. |
(9) Entitlement to benefit from the exceptional autonomous trade preferences is conditional on Pakistan's compliance with the relevant rules of origin of products and the procedures related thereto as well as involvement in effective administrative cooperation with the Union in order to prevent any risk of fraud. Serious and systematic violations of the conditions for the entitlement to the preferential arrangement, fraud or failure to provide administrative cooperation for the verification of origin of goods or a serious deterioration in respect for the fundamental principles of democracy and human rights in Pakistan, including core labour rights, should constitute reasons for a temporary suspension of the preferences. In this respect, the Commission should be permitted to adopt, if necessary, such temporary measures. |
Amendment 14 Proposal for a regulation Recital 10 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(10a) The granting of these preferences is also conditional on Pakistan abstaining from maintaining, introducing or increasing duties or charges having equivalent effect or any other restriction or prohibition on the export or sale for export of any materials primarily used in the production of any of the products covered by this Regulation destined for the territory of the Union, from the date of the entry into force of this Regulation. |
Amendments 15 Proposal for a regulation Recital 10 b (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(10b) It is necessary to provide for the reintroduction of Common Customs Tariff duties for any products causing, or threatening to cause, serious difficulties to a Union producer of like or directly competing products, as determined by an investigation carried out by the Commission. |
Amendment 16 Proposal for a regulation Recital 10 d (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(10d) In order to ensure effective monitoring of the trends of imports of products covered by this Regulation as far in advance as possible it is necessary to establish customs surveillance on imports covered by this Regulation. On the basis of this monitoring a quarterly report on the application and implementation of this Regulation should be submitted. |
Amendment 17 Proposal for a regulation Recital 10 e (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(10e) The autonomous trade preferences granted to Pakistan should be subject to an annual impact assessment, conducted by the Commission and presented to Parliament and the Council, which allows for adjustments to be made based on the actual volume of imports and the possible repercussions for the sectors specifically concerned by this Regulation. |
Amendment 18 Proposal for a regulation Recital 12 | |
|
Text proposed by the Commission |
Amendment |
|
(12) Given the urgency of the situation in Pakistan, the Regulation should apply as of 1 January 2011, provided that the WTO has approved the request from the Union for the waiver from its obligations under GATT Articles I and XIII. |
(12) Given the urgency of the situation in Pakistan, the Regulation should apply as soon as the WTO has approved the request from the Union for the waiver from its obligations under GATT Articles I and XIII. |
Amendment 19 Proposal for a regulation Recital 13 | |
|
Text proposed by the Commission |
Amendment |
|
(13) In order to ensure an immediate and sustainable impact on the economic recovery of Pakistan in the aftermath of the floods it is recommended to limit the duration of the trade preferences until 31 December 2013. |
(13) In order to ensure an immediate and sustainable impact on the economic recovery of Pakistan in the aftermath of the floods it is recommended to limit the duration of the trade preferences to one year from the entry into force of those measures. |
Amendment 20 Proposal for a regulation Recitals 14 | |
|
Text proposed by the Commission |
Amendment |
|
(14) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. |
(14) In order to ensure uniform conditions for the implementation of this Regulation concerning temporary suspension, surveillance and safeguard measures implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No. 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers. |
|
|
|
|
|
|
|
|
|
Amendment 21 Proposal for a regulation Recital 15 | |
|
Text proposed by the Commission |
Amendment |
|
(15) Amendments to the Combined Nomenclature may not give rise to any substantive changes to the nature of the autonomous trade preferences. The Commission should therefore be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union for the purpose of making necessary amendments and technical adaptations to the list of goods for which the autonomous trade preference applies, |
(15) The advisory procedure should be used for the adoption of surveillance and provisional safeguard measures in order to take into account the effects of these measures and their sequential logic in relation to the adoption of definitive safeguard measures. The same applies with regard to the suspension of preferences when the conditions for entitlement to the preferential arrangements are not fulfilled since the Commission is thereby only acting upon factual evidence and is not required to use political discretion. |
Amendment 22 Proposal for a regulation Recital 15 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(15a) In order to make the necessary technical adaptations to the list of goods for which the autonomous trade preferences apply and to introduce tariff rate quotas where volumes of imports covered by this Regulation increase beyond certain levels the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending Annex I and Annex II to reflect changes in the combined nomenclature and to introduce new quotas. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. |
|
|
The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council, |
Amendments 23 Proposal for a regulation Article 2 - paragraph 1 - point c a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(ca) Pakistan abstaining from maintaining, introducing or increasing duties or charges having equivalent effect or any other restriction or prohibition on the export or sale for export of any materials primarily used in the production of any of the products covered by this Regulation destined for the territory of the Union; |
Amendments 24 Proposal for a regulation Article 2 – paragraph 1 – point c b (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(cb) compliance with Article XI GATT 1994 and its interpretative notes. To this end Pakistan shall abstain from adopting or maintaining any prohibition or restriction on the export, or sale for export, of any materials primarily used in the production of any of the products included in Annex I and II; |
Amendment 25 Proposal for a regulation Article 2- paragraph 1 - point c c (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
(cc) Pakistan abstaining from introducing new duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect for imports originating in the Union or from increasing existing levels of duties or charges or from introducing any other restrictions. |
Amendment 26 Proposal for a regulation Article 2 - paragraph 2 (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
2. Without prejudice to the conditions set out in paragraph 1, entitlement to benefit from the preferential arrangements introduced by Article 1 is subject to respect for human rights, including core labour rights, and the fundamental principles of democracy by Pakistan. |
|
|
If Pakistan adopts measures restricting human rights and workers’ rights, gender equality or religious rights or if it provides terrorist organisations of any kind with backing or support, the Commission shall immediately propose to repeal this Regulation. |
Amendment 27 Proposal for a regulation Article 3 b (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
Article 3b |
|
|
Urgent introduction of tariff quotas |
|
|
1. Where imports of a product included in Annex I originating from Pakistan increase, in volume, by 20% or more, as compared to the same period of 2010, the Commission shall be empowered to subject the imports of that product to a tariff rate quota and as a matter of urgency amend Annex I and Annex II by means of a delegated act. The procedure provided for in Article 7a shall apply to delegated acts adopted pursuant to this Article. |
|
|
2. The data provided by the customs surveillance referred to in Article 9b shall be the basis for introducing the tariff rate quota under this Article. |
|
|
3. The tariff rate quota shall take the form of a duty free quota limited to the level of imports of such product as compared to the same period of 2010 plus 20%. Upon the entry into force of the delegated act, imports in excess of that tariff rate quota shall be subject to most-favoured nation or other applicable duties. |
Amendment 28 Proposal for a regulation Article 4 | |
|
Text proposed by the Commission |
Amendment |
|
Amendment of the Annexes |
Technical adjustments to the Annexes |
|
The Commission may adopt delegated acts in accordance with Article 5 for the purpose of amending the Annexes in order to introduce amendments and technical adjustments necessary following amendments to the Combined Nomenclature codes and to the TARIC subdivisions. |
The Commission shall be empowered to adopt delegated acts in accordance with Article 5 for the purpose of amending the Annexes in order to introduce technical adjustments made necessary following amendments both to the Combined Nomenclature codes and to the TARIC subdivisions. |
|
|
In each case, the power conferred on the Commission in the first paragraph shall not go so far as to allow it to introduce additional products not included in the lists in Annexes I and II of this Regulation. |
Amendment 29 Proposal for a regulation Article 5 | |
|
Text proposed by the Commission |
Amendment |
|
Exercise of the delegation |
Exercise of the delegation |
|
1. The power to adopt the delegated acts referred to in Article 4 shall be conferred on the Commission for an indeterminate period of time. |
1. The power to adopt the delegated acts referred to in Articles 3b and 4 shall be conferred on the Commission subject to the conditions laid down in this Article. |
|
|
2. The delegation of power referred to in Articles 3b and 4 shall be conferred on the Commission for the duration of this Regulation. |
|
|
3. The delegation of power referred to in Articles 3b and 4 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. |
|
2. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. |
4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. |
|
3. The powers to adopt delegated acts are conferred on the Commission subject to the conditions laid down in Articles 6 and 7. |
5. A delegated act adopted pursuant to Article 4 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council. |
|
|
If this amendment is adopted, Articles 6 and 7 shall be deleted. |
Amendment 30 Proposal for a regulation Article 7 a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
Article 7a |
|
|
Urgency procedure |
|
|
1. Delegated acts adopted under the urgency procedure shall enter into force without delay and apply as long as no objection is expressed in accordance with paragraph 2. The notification of the act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure. |
|
|
2. The European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 5. In such a case, the Commission shall repeal the act without delay following the notification of the decision to object by the European Parliament or the Council. |
|
|
|
Amendment 31 Proposal for a regulation Article 8 | |
|
Text proposed by the Commission |
Amendment |
|
Committee procedure |
Committee procedure |
|
1. The Commission shall be assisted by the Customs Code Committee. |
1. The Commission shall be assisted by the Customs Code Committee. That committee shall be a committee with the meaning of Regulation (EU) No 182/2011. |
|
|
1a. Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply. |
|
2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month. |
2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. |
Amendment 32 Proposal for a regulation Article 9 - paragraph 2 | |
|
Text proposed by the Commission |
Amendment |
|
2. The measures referred to in paragraph 1 shall be adopted in accordance with the procedure referred to in Article 8. |
2. The measures referred to in paragraph 1 shall be adopted in accordance with the procedure referred to in Article 8(1a). |
Amendment 33 Proposal for a regulation Article 9a (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
Article 9a |
|
|
Safeguard measures |
|
|
1. Where a product included in Annex I or II originating in Pakistan is imported on terms which cause, or threaten to cause, serious difficulties to Union producers of like or directly competing products, Common Customs Tariff duties on that product may be reintroduced at any time (hereinafter referred to as a "safeguard measure"). |
|
|
2. At the request of a Member State or on the Commission’s own initiative, the Commission shall take a formal decision to initiate an investigation within one month. Where the Commission decides to initiate an investigation, it shall publish a notice in the Official Journal of the European Union announcing the investigation. The notice shall provide a summary of the information received and state that any relevant information should be sent to the Commission. It shall specify the period, which shall not exceed one month from the date of publication of the notice, within which interested parties may make their views known in writing. |
|
|
3. The Commission shall seek all information it deems necessary and may verify the information received with Pakistan and any other relevant source. It may be assisted by officials of the Member State on whose territory verification might be sought, if that Member State so requests. |
|
|
4. In examining whether there are serious difficulties, the Commission shall take account, inter alia, of the following factors concerning Union producers where this information is available: — market share, — production, — stocks, — production capacity, — capacity utilisation, — employment, — imports, — prices. |
|
|
5. The investigation shall be completed forthwith, but not later than four months after the publication of the notice referred to in paragraph 2. The Commission may, in exceptional circumstances, extend this period by a further maximum period of one month. |
|
|
6. Provisional safeguard measures may be adopted by the Commission by means of implementing acts in critical circumstances where a delay would cause damage which would be difficult to repair, pursuant to a preliminary determination on the basis of the factors laid down in paragraph 4 which establishes that there is sufficient evidence that imports of a product covered by this Regulation have increased as the result of the suspension of customs duties under this Regulation, and such imports cause serious difficulties, or threat thereof, to the Union industry. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 8(1a).Provisional measures shall not apply for more than 200 days. |
|
|
7. The Commission shall decide whether to impose definitive safeguard in accordance with the examination procedure referred to in Article 8(2). |
Amendment 34 Proposal for a regulation Article 9b (new) | |
|
Text proposed by the Commission |
Amendment |
|
|
Article 9b |
|
|
Surveillance measures |
|
. |
1. Where the trend in imports of one of the products included in Annex I originating in Pakistan is such that it could lead to the situations referred to in Article 9a (1) the Commission may decide to subject the imports of that product to prior Union surveillance. |
|
|
2. Surveillance measures shall be adopted by the Commission in accordance with the advisory procedure referred to in Article 8 (1a). |
|
|
3. Surveillance measures shall have a limited period of validity. Unless otherwise provided, they shall cease to be valid at the end of the second six-month period. |
|
|
4. This surveillance shall provide for updated and timely data, in volume and value. These data shall be immediately made available to Member-States, the European Parliament and economic operators |
Amendments 35 Proposal for a regulation Article 10- paragraph 2 | |
|
Text proposed by the Commission |
Amendment |
|
2. It shall apply from 1 January 2011 provided that the tariff preferences provided for in this Regulation are permitted by a waiver granted by the World Trade Organization. In case the World Trade Organization grants such a waiver after 1 January 2011, it shall apply from such later date on which the waiver takes effect. |
2. This Regulation is subject to a waiver being granted by the World Trade Organization allowing the tariff preferences provided for therein and therefore it shall apply from the date on which the waiver takes effect. |
Amendments 36 Proposal for a regulation Article 10- paragraph 3 | |
|
Text proposed by the Commission |
Amendment |
|
3. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date on which the waiver is granted by the World Trade Organization. If after 1 January 2011 the date specified shall be the date from which the tariff preferences apply pursuant to the second sentence of paragraph 2. |
3. The Commission shall publish a notice in the Official Journal of the European Union to inform operators of the date on which the waiver is granted by the World Trade Organization. |
OPINION of the Committee on Foreign Affairs (25.1.2011)
for the Committee on International Trade
on the proposal for a regulation of the European Parliament and of the Council introducing emergency autonomous trade preferences for Pakistan
(COM(2010)0552 – C7‑0322/2010 – 2010/0289(COD))
Rapporteur: Cristian Dan Preda
SHORT JUSTIFICATION
Presented after the unprecedented floods that devastated last summer a vast portion of Pakistan’s territory, the Commission’s proposal seeks to extend autonomous trade preferences to this country concerning 75 product lines of interest to Pakistan (mostly textile and clothing) in the form of exemption from custom duties, with the exception of one product (ethanol) for which a tariff-rate quota would apply.
The proposed measures should be welcomed as a perfect example of the synergies that the entry into force of the Treaty of Lisbon has made possible. While the EU and its Members states have already generously provided Pakistan with humanitarian aid, the extension of trade preferences to this country is part of a larger package of measures that would address the medium and long-term economic consequences of the catastrophic floods. Ensuring Pakistan’s recovery and future sustainable development is extremely important not only for its citizens, but also for the security and the stability of the region. A stable and prosperous Pakistan that does not drift away into extremism or fundamentalism is obviously in EU’s interest.
However, although the autonomous trade preferences would be extended to Pakistan for 3 years, a full impact assessment of the proposed measures has not been carried out by the Commission prior to the adoption of the proposal for a regulation. It is therefore preferable to limit the duration of the trade concessions to two years and make the extension of these preferences for another year conditional upon the conduct of a full impact assessment by the Commission. This assessment should not only address the effects of the measures on trade and production in the EU, but should also cover their effective impact on the population and fiscal resources of Pakistan, in particular with respect of the commitments of Pakistan to improve the effectiveness of its taxation system.
In addition, it should be noted that the Commission’s proposal does not impose any burden on Pakistan in the field of human and social rights, contrary to what would have happened had GSP+ status been granted to this country.
Although it might be argued that, due to the particular set of circumstances that led to the decision to grant autonomous trade preferences to Pakistan, the proposed measures will not create a binding precedent, this explanation is not entirely convincing.
Indeed, it cannot be excluded that the decision to grant autonomous trade preferences for flood-stricken Pakistan may be followed by other similar initiatives in the future. Furthermore, there is a risk that adopting autonomous trade preferences decoupled from any kind of human rights conditionality would in fact undermine the current system of EU preferences based on the respect of a set of fundamental rights and values.
On a more general level, article 207 of the Lisbon Treaty stipulates that the EU commercial policy must be conducted in the context of the principles and objectives of the Union’s external action. Consolidating and supporting democracy, rule of law and human rights figure prominently among the EU’s objectives according to article 21(2) of the Treaty.
The situation of human rights in Pakistan must therefore be taken into account in the proposed regulation. A serious degradation of this situation could thus be a reason to suspend the application of the trade preferences awarded to Pakistan.
Finally, strict and verifiable compliance with the relevant rules of origin for products is necessary in order to ensure that the trade benefits awarded profit only those towards which these measures are directed and truly help the recovery of the economy of Pakistan, while avoiding unfair conditions to the countries producing similar products, in particular GSP+ beneficiaries in the region and countries of the EU's Southern Neighborhood.
AMENDMENTS
The Committee on Foreign Affairs calls on the Committee on International Trade, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1 Proposal for a regulation Recital 1 | |
|
Text proposed by the Commission |
Amendment |
|
(1) The relationship between the European Union and the Islamic Republic of Pakistan (hereinafter referred to as Pakistan) builds on the Cooperation Agreement which entered into force on 1 September 20041 . One of its main objectives is to secure the conditions for and to promote the increase and development of trade between the Parties. |
(1) The relationship between the European Union and the Islamic Republic of Pakistan (hereinafter referred to as Pakistan) builds on the Cooperation Agreement which entered into force on 1 September 20041 . One of its main objectives is to secure the conditions for and to promote the increase and development of trade between the Parties. Respect for human rights, including core labour rights, and democratic principles are also an essential element of that Agreement. |
Amendment 2 Proposal for a regulation Recital 4 | |
|
Text proposed by the Commission |
Amendment |
|
(4) It will be important to use all available means to support Pakistan's recovery from this emergency and progress towards future development. |
(4) It will be important to use all available means to support Pakistan's recovery from this emergency and progress towards future development, while ensuring that consistency and coherence is maintained at all levels with a view to developing a sustainable long-term strategy. |
Amendment 3 Proposal for a regulation Recital 7 | |
|
Text proposed by the Commission |
Amendment |
|
(7) It is therefore appropriate to extend autonomous trade preferences to Pakistan by suspending for a limited period of time all tariffs for certain products of export interest to Pakistan. The provision of these trade preferences would not cause any meaningful adverse effects on the domestic market of the Union and would not affect negatively least developed Members of the World Trade Organisation (WTO). |
(7) It is therefore appropriate to extend autonomous trade preferences to Pakistan by suspending for a limited period of time all tariffs for certain products of export interest to Pakistan provided that the award of these trade preferences does not cause any meaningful adverse effects on the domestic market of the Union, nor affects negatively least developed Members of the World Trade Organisation (WTO). |
Amendment 4 Proposal for a regulation Recital 9 | |
|
Text proposed by the Commission |
Amendment |
|
(9) Entitlement to benefit from the autonomous trade preferences is conditional on Pakistan's compliance with the relevant rules of origin of products and the procedures related thereto as well as involvement in effective administrative cooperation with the Union in order to prevent any risk of fraud. Serious and systematic violations of the conditions for the entitlement to the preferential arrangement, fraud or failure to provide administrative cooperation for the verification of origin of goods should constitute reasons for a temporary suspension of the preferences. In this respect, the Commission should be permitted to adopt, if necessary, such temporary measures. |
(9) Entitlement to benefit from the autonomous trade preferences is conditional on Pakistan's compliance with the relevant rules of origin of products and the procedures related thereto as well as involvement in effective administrative cooperation with the Union in order to prevent any risk of fraud. Serious and systematic violations of the conditions for the entitlement to the preferential arrangement, fraud or failure to provide administrative cooperation for the verification of origin of goods or a serious deterioration in the respect for the fundamental principles of democracy and human rights in Pakistan, including core labour rights, should constitute reasons for a temporary suspension of the preferences. In this respect, the Commission should be permitted to adopt, if necessary, such temporary measures. |
Amendment 5 Proposal for a regulation Recital 13 | |
|
Text proposed by the Commission |
Amendment |
|
(13) In order to ensure an immediate and sustainable impact on the economic recovery of Pakistan in the aftermath of the floods it is recommended to limit the duration of the trade preferences until 31 December 2013. |
(13) In order to ensure an immediate and sustainable impact on the economic recovery of Pakistan in the aftermath of the floods it is recommended that the continuation of the trade preferences until the maximum deadline of 31 December 2013 be subject to an assessment of their effective impact on the population of Pakistan and of the implementation of the policy reforms necessary to ensure that the relevant industries contribute effectively to fiscal resources. |
Amendment 6 Proposal for a regulation Article 2 | |
|
Text proposed by the Commission |
Amendment |
|
Entitlement to benefit from the arrangements introduced by Article 1 shall be subject to: |
1. Entitlement to benefit from the arrangements introduced by Article 1 shall be subject to: |
|
(a) compliance with the rules of origin of products and the procedures related thereto as provided for in Title IV, Chapter 2, Section 1, sub-section 1 and 2 of Regulation (EEC) No 2454/93. However, as regards cumulation of origin for the purpose of the determination of originating status of products covered by the arrangements introduced in Article 1, only cumulation with the materials originating in the EU is allowed. Regional cumulation and other types of cumulation with the exception of the cumulation with the EU originating materials, is not allowed; |
(a) compliance with the rules of origin of products and the procedures related thereto as provided for in Title IV, Chapter 2, Section 1, sub-section 1 and 2 of Regulation (EEC) No 2454/93. However, as regards cumulation of origin for the purpose of the determination of originating status of products covered by the arrangements introduced in Article 1, only cumulation with the materials originating in the EU is allowed. Regional cumulation and other types of cumulation with the exception of the cumulation with the EU originating materials, is not allowed; |
|
(b) compliance with the methods of administrative cooperation as provided for in Title IV, Chapter 2, Section 1, sub-section 3 of Regulation (EEC) No 2454/93; |
(b) compliance with the methods of administrative cooperation as provided for in Title IV, Chapter 2, Section 1, sub-section 3 of Regulation (EEC) No 2454/93; |
|
(c) certificates of origin Form A issued by the competent authorities of Pakistan pursuant to this Regulation should bear the following endorsement in box 4 “Autonomous measure – Regulation (EU) No …/2010”. |
(c) certificates of origin Form A issued by the competent authorities of Pakistan pursuant to this Regulation should bear the following endorsement in box 4 “Autonomous measure – Regulation (EU) No …/2010”. |
|
|
2. Without prejudice to the conditions set out in paragraph 1, entitlement to benefit from the preferential arrangements introduced by Article 1 is subject to respect for human rights, including core labour rights, and the fundamental principles of democracy by Pakistan. |
Amendment 7 Proposal for a regulation Article 9 – paragraph 1 – introductory part | |
|
Text proposed by the Commission |
Amendment |
|
1. Where the Commission finds that there is sufficient evidence of failure to comply with the conditions set out in Article 2 it may take measures to suspend in whole or in part the preferential arrangements provided for in this Regulation for a period of not more than six months, provided that it has first: |
1. Where the Commission finds that there is sufficient evidence of failure to comply with the conditions set out in Article 2, including evidence of social dumping or if a serious deterioration occurs with regard to democracy and human rights in Pakistan, it may take measures to suspend in whole or in part the preferential arrangements provided for in this Regulation for a period of not more than six months, provided that it has first: |
Amendment 8 Proposal for a regulation Article 10 - paragraph 4 | |
|
Text proposed by the Commission |
Amendment |
|
4. This Regulation shall apply until 31 December 2013. |
4. This Regulation shall apply until 31 December 2012. |
|
|
No later than 18 months after its entry into force, the Commission shall carry out a full assessment of the impact of this Regulation on the trade and production of the products concerned by this Regulation in the Union, as well as of the effect of the trade preferences on the economy, the situation of the population and the fiscal resources of Pakistan and submit a report to the European Parliament and to the Council. The European Parliament and the Council may, on the basis of this report, decide to extend the application of this Regulation until 31 December 2013. |
PROCEDURE
|
Title |
Emergency autonomous trade preferences for Pakistan |
|||||||
|
References |
COM(2010)0552 – C7-0322/2010 – 2010/0289(COD) |
|||||||
|
Committee responsible |
INTA |
|||||||
|
Opinion by Date announced in plenary |
AFET 19.10.2010 |
|
|
|
||||
|
Rapporteur Date appointed |
Cristian Dan Preda 23.11.2010 |
|
|
|||||
|
Discussed in committee |
13.1.2011 |
25.1.2011 |
|
|
||||
|
Date adopted |
25.1.2011 |
|
|
|
||||
|
Result of final vote |
+: –: 0: |
61 1 2 |
||||||
|
Members present for the final vote |
Gabriele Albertini, Pino Arlacchi, Dominique Baudis, Bastiaan Belder, Franziska Katharina Brantner, Elmar Brok, Arnaud Danjean, Marietta Giannakou, Ana Gomes, Andrzej Grzyb, Takis Hadjigeorgiou, Heidi Hautala, Richard Howitt, Anna Ibrisagic, Jelko Kacin, Tunne Kelam, Nicole Kiil-Nielsen, Maria Eleni Koppa, Andrey Kovatchev, Wolfgang Kreissl-Dörfler, Eduard Kukan, Vytautas Landsbergis, Ryszard Antoni Legutko, Krzysztof Lisek, Sabine Lösing, Ulrike Lunacek, Barry Madlener, Mario Mauro, Kyriakos Mavronikolas, Willy Meyer, Alexander Mirsky, Annemie Neyts-Uyttebroeck, Norica Nicolai, Raimon Obiols, Alojz Peterle, Bernd Posselt, Cristian Dan Preda, Fiorello Provera, Libor Rouček, José Ignacio Salafranca Sánchez-Neyra, Nikolaos Salavrakos, Jacek Saryusz-Wolski, Werner Schulz, Adrian Severin, Marek Siwiec, Ernst Strasser, Charles Tannock, Inese Vaidere, Geoffrey Van Orden, Kristian Vigenin, Graham Watson, Boris Zala |
|||||||
|
Substitute(s) present for the final vote |
Véronique De Keyser, Kinga Gál, Liisa Jaakonsaari, Elisabeth Jeggle, Evgeni Kirilov, Georgios Koumoutsakos, Barbara Lochbihler, Norbert Neuser, Miroslav Ouzký, Godelieve Quisthoudt-Rowohl, György Schöpflin, Indrek Tarand |
|||||||
|
Substitute(s) under Rule 187(2) present for the final vote |
Sylvie Guillaume |
|||||||
PROCEDURE
|
Title |
Emergency autonomous trade preferences for Pakistan |
|||||||
|
References |
COM(2010)0552 – C7-0322/2010 – 2010/0289(COD) |
|||||||
|
Date submitted to Parliament |
7.10.2010 |
|||||||
|
Committee responsible Date announced in plenary |
INTA 19.10.2010 |
|||||||
|
Committee(s) asked for opinion(s) Date announced in plenary |
AFET 19.10.2010 |
IMCO 19.10.2010 |
|
|
||||
|
Not delivering opinions Date of decision |
IMCO 29.11.2010 |
|
|
|
||||
|
Rapporteur(s) Date appointed |
William (The Earl of) Dartmouth 26.10.2010 |
|
|
|||||
|
Discussed in committee |
9.11.2010 |
1.12.2010 |
25.1.2011 |
|
||||
|
Date adopted |
16.3.2011 |
|
|
|
||||
|
Result of final vote |
+: –: 0: |
20 4 2 |
||||||
|
Members present for the final vote |
William (The Earl of) Dartmouth, Laima Liucija Andrikienė, Kader Arif, David Campbell Bannerman, Christofer Fjellner, Metin Kazak, David Martin, Emilio Menéndez del Valle, Vital Moreira, Godelieve Quisthoudt-Rowohl, Niccolò Rinaldi, Tokia Saïfi, Helmut Scholz, Peter Šťastný, Robert Sturdy, Gianluca Susta, Keith Taylor, Iuliu Winkler, Pablo Zalba Bidegain, Paweł Zalewski |
|||||||
|
Substitute(s) present for the final vote |
Catherine Bearder, George Sabin Cutaş, Salvatore Iacolino, Syed Kamall, Miloslav Ransdorf, Jarosław Leszek Wałęsa |
|||||||