RECOMMENDATION on the draft Council decision on the conclusion, on behalf of the Union, of the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part

17.5.2018 - (12543/2017 – C8‑0422/2017 – 2017/0238(NLE)) - ***

Committee on Foreign Affairs
Rapporteur: László Tőkés

Procedure : 2017/0238(NLE)
Document stages in plenary
Document selected :  
A8-0177/2018

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the draft Council decision on the conclusion, on behalf of the Union, of the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part

(12543/2017 – C8‑0422/2017 – 2017/0238(NLE))

(Consent)

The European Parliament,

–  having regard to the draft Council decision (12543/2017),

–  having regard to the draft Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part (12548/2017),

–  having regard to the request for consent submitted by the Council in accordance with Article 37 of the Treaty on European Union; and in accordance with Article 91, Article 100(2), Articles 207 and 209, 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 (C8‑0422/2017),

–  having regard to its non-legislative resolution of ...[1] on the draft decision,

–  having regard to Rule 99(1) and (4) 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 (A8-0177/2018),

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 the Republic of Armenia.

  • [1]  Texts adopted of that date, P8_TA(0000)0000.

OPINION of the Committee on International Trade (22.3.2018)

for the Committee on Foreign Affairs

on the draft Council decision on the conclusion, on behalf of the Union, of the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part
(12543/2017 – C8‑0422/2017 – 2017/0238(NLE))

Rapporteur for opinion: Elsi Katainen

SHORT JUSTIFICATION

Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part (hereafter: CEPA) was signed by the parties in the margins of the Eastern Partnership Summit on 24 November 2017 in Brussels. CEPA was negotiated during the years 2015-2017 following the decision by Armenia in 2013 not to sign the negotiated Association Agreement (AA) and Deep and Comprehensive Free Trade Area (DCFTA) with the European Union (EU), but to join instead the Eurasian Economic Union (EEU) on 2 January 2015.

As your rapporteur for opinion, I can only express my regret about this decision as AA/DCFTA was estimated to bring a 2,3% increase in Armenia’s Gross Domestic Product (GDP) in the long run and increased opportunities for foreign direct investments whereas its membership in EEU entails less visible benefits. However, the negotiations and signature of CEPA should be appreciated from several aspects. Firstly, it shows the interest and commitment of Armenia to have closer ties with the EU to the extent that is compatible to its obligations under EEU. Secondly, it represents the flexibility of the EU in line with the new differentiated approach under the European Neighbourhood Policy to negotiate a tailor-made agreement for Armenia compatible with the EEU.

The EU is Armenia’s biggest export market, accounting for around 27% of Armenia’s total exports. Armenia’s main exports are metals and precious stones followed by energy, beverages, vegetables and fruit. Armenia mainly imports oil, natural gas, cereals, rubber manufactures, cork and wood, and electrical machinery. Armenia benefits also from the EU general system of preferences (GSP+). Armenia’s GSP+ utilisation rate remains high (approximately 93%), but GSP+ exports are heavily concentrated in very few goods with a rather low value added - iron, steel and products made thereof and clothing.

CEPA is a comprehensive and in many areas ambitious agreement that follows largely the structure of the negotiated Association Agreement. The commitments included in the AA are almost unchanged in many areas such as the political dialogue and the majority of sectorial chapters. However, in some specific areas, the timetable for implementation has been extended. For obvious reasons, the trade part of the CEPA is the most affected by Armenia’s EEU Membership. CEPA does not abolish the tariffs on goods as the decisions related to tariffs are taken at the level of EEU that has a common external tariff. Armenia continues, however, to benefit from the access to the EU market resulting from the GSP+ tariff removals. CEPA TBT and SPS chapters envisage closer cooperation based on international rules and principles while not being as comprehensive and ambitious as in the case of DCFTAs, notably as regards to the approximation with the EU legislation. Armenia is a party to the plurilateral Agreement on Government Procurement and has already committed to comply with international norms. In CEPA Armenia agreed to go further both in terms of transparency and in terms of market access for the EU products and operators. Trade in services is an ambitious chapter that intends to go beyond GATS. Intellectual Property Rights chapter also goes beyond TRIPS. In this context, it is interesting to note that EU has agreed to grant Armenia 24 years of transition period for using the word “cognac” written only in Cyrillic letters and exported exclusively to Russia to refer to Armenian brandy. Moreover there are also elements going beyond the WTO rules in areas like competition, subsidies and state owned enterprises. Additionally, a legal basis is created for mutual administrative assistance between the customs authorities enhancing cooperation against customs irregularities and fraud. The EU and Armenia agreed also on an ambitious trade and sustainable chapter, which aims to ensure that trade is promoted in a sustainable way.

Despite the interest from Armenian side, the CEPA does not include an investment chapter. This is due to the lack of Commission mandate and the need for legal clarifications at the EU level. European Court of Justice delivered its opinion on EU-Singapore FTA only on 16 May 2017 saying that the provisions related to portfolio investment and the ISDS mechanism are part of the shared competence between the EU and its Member States.

As your rapporteur for opinion, I recommend to be supportive to the conclusion of this Agreement that would only be a start of the process. Effective implementation of CEPA with the involvement of parliaments and civil society from both sides would be a challenging task requiring a continuous and close monitoring.

******

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 draft Council decision on the conclusion, on behalf of the Union, of the Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part

References

12543/2017 – C8-0422/2017 – JOIN(2017)0037 – 2017/0238(NLE)

Committee responsible

 

AFET

 

 

 

 

Opinion by

       Date announced in plenary

INTA

11.12.2017

Rapporteur

       Date appointed

Elsi Katainen

11.10.2017

Previous rapporteur

Hannu Takkula

Discussed in committee

22.1.2018

 

 

 

Date adopted

22.3.2018

 

 

 

Result of final vote

+:

–:

0:

29

1

2

Members present for the final vote

William (The Earl of) Dartmouth, Laima Liucija Andrikienė, Maria Arena, Tiziana Beghin, David Borrelli, David Campbell Bannerman, Daniel Caspary, Salvatore Cicu, Heidi Hautala, Nadja Hirsch, Elsi Katainen, Bernd Lange, David Martin, Emma McClarkin, Franz Obermayr, Franck Proust, Godelieve Quisthoudt-Rowohl, Viviane Reding, Inmaculada Rodríguez-Piñero Fernández, Marietje Schaake, Helmut Scholz, Joachim Schuster, Adam Szejnfeld

Substitutes present for the final vote

Bendt Bendtsen, Klaus Buchner, Nicola Danti, Seán Kelly, Gabriel Mato, Frédérique Ries, Fernando Ruas, Pedro Silva Pereira, Jarosław Wałęsa

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

29

+

ALDE

Nadja Hirsch, Elsi Katainen, Frédérique Ries, Marietje Schaake

ECR

David Campbell Bannerman, Emma McClarkin

EFDD

Tiziana Beghin, William (The Earl of) Dartmouth

GUE/NGL

Helmut Scholz

NI

David Borrelli

PPE

Laima Liucija Andrikienė, Bendt Bendtsen, Daniel Caspary, Salvatore Cicu, Seán Kelly, Gabriel Mato, Franck Proust, Godelieve Quisthoudt-Rowohl, Viviane Reding, Fernando Ruas, Adam Szejnfeld, Jarosław Wałęsa

S&D

Maria Arena, Nicola Danti, Bernd Lange, David Martin, Inmaculada Rodríguez-Piñero Fernández, Joachim Schuster, Pedro Silva Pereira

1

-

ENF

Franz Obermayr

2

0

VERTS/ALE

Klaus Buchner, Heidi Hautala

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

PROCEDURE – COMMITTEE RESPONSIBLE

Title

Comprehensive and Enhanced Partnership Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Armenia, of the other part

References

12543/2017 – C8-0422/2017 – JOIN(2017)0037 – 2017/0238(NLE)

Date of consultation / request for consent

30.11.2017

 

 

 

Committee responsible

       Date announced in plenary

AFET

11.12.2017

 

 

 

Committees asked for opinions

       Date announced in plenary

INTA

11.12.2017

 

 

 

Rapporteurs

       Date appointed

László Tőkés

1.2.2016

 

 

 

Discussed in committee

12.4.2018

 

 

 

Date adopted

16.5.2018

 

 

 

Result of final vote

+:

–:

0:

55

2

7

Members present for the final vote

Lars Adaktusson, Michèle Alliot-Marie, Nikos Androulakis, Francisco Assis, Petras Auštrevičius, Goffredo Maria Bettini, Mario Borghezio, Elmar Brok, Klaus Buchner, Fabio Massimo Castaldo, Lorenzo Cesa, Aymeric Chauprade, Javier Couso Permuy, Andi Cristea, Arnaud Danjean, Eugen Freund, Sandra Kalniete, Manolis Kefalogiannis, Tunne Kelam, Wajid Khan, Eduard Kukan, Ilhan Kyuchyuk, Arne Lietz, Barbara Lochbihler, Sabine Lösing, Tamás Meszerics, Francisco José Millán Mon, Clare Moody, Javier Nart, Pier Antonio Panzeri, Ioan Mircea Paşcu, Alojz Peterle, Tonino Picula, Kati Piri, Julia Pitera, Cristian Dan Preda, Jozo Radoš, Michel Reimon, Sofia Sakorafa, Jean-Luc Schaffhauser, Alyn Smith, Dobromir Sośnierz, Jaromír Štětina, Dubravka Šuica, Charles Tannock, László Tőkés, Ivo Vajgl, Geoffrey Van Orden, Boris Zala

Substitutes present for the final vote

David Coburn, Doru-Claudian Frunzulică, Norica Nicolai, Urmas Paet, Miroslav Poche, Soraya Post, José Ignacio Salafranca Sánchez-Neyra, Helmut Scholz, Bodil Valero, Marie-Christine Vergiat, Janusz Zemke, Željana Zovko

Substitutes under Rule 200(2) present for the final vote

Renate Weber, Francis Zammit Dimech, Joachim Zeller

Date tabled

17.5.2018

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

55

+

ALDE

Petras Auštrevičius, Ilhan Kyuchyuk, Javier Nart, Norica Nicolai, Urmas Paet, Jozo Radoš, Ivo Vajgl, Renate Weber

ECR

Charles Tannock, Geoffrey Van Orden

EFDD

Fabio Massimo Castaldo, Aymeric Chauprade

ENF

Mario Borghezio

GUE/NGL

Javier Couso Permuy, Sabine Lösing, Sofia Sakorafa, Helmut Scholz, Marie-Christine Vergiat

PPE

Lars Adaktusson, Michèle Alliot-Marie, Elmar Brok, Lorenzo Cesa, Arnaud Danjean, Sandra Kalniete, Manolis Kefalogiannis, Tunne Kelam, Eduard Kukan, Francisco José Millán Mon, Alojz Peterle, Julia Pitera, Cristian Dan Preda, José Ignacio Salafranca Sánchez-Neyra, Jaromír Štětina, Dubravka Šuica, László Tőkés, Francis Zammit Dimech, Joachim Zeller, Željana Zovko

S&D

Nikos Androulakis, Francisco Assis, Goffredo Maria Bettini, Andi Cristea, Eugen Freund, Doru-Claudian Frunzulică, Wajid Khan, Arne Lietz, Clare Moody, Pier Antonio Panzeri, Ioan Mircea Paşcu, Tonino Picula, Kati Piri, Miroslav Poche, Soraya Post, Boris Zala, Janusz Zemke

2

-

EFDD

David Coburn

ENF

Jean-Luc Schaffhauser

7

0

NI

Dobromir Sośnierz

VERTS/ALE

Klaus Buchner, Barbara Lochbihler, Tamás Meszerics, Michel Reimon, Alyn Smith, Bodil Valero

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

Last updated: 20 June 2018
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