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Enforcement Regulation review

13-01-2021

The blockage, since December 2019, of the Appellate Body of the Dispute Settlement Body of the World Trade Organization (WTO) creates legal gaps for the enforcement of international trade rules. To bridge these gaps, the European Commission proposed to broaden the scope of Regulation (EU) No 654/2014 concerning the exercise of the EU's rights for the application and enforcement of international trade rules ('the Enforcement Regulation'). The European Parliament is scheduled to vote at first reading ...

The blockage, since December 2019, of the Appellate Body of the Dispute Settlement Body of the World Trade Organization (WTO) creates legal gaps for the enforcement of international trade rules. To bridge these gaps, the European Commission proposed to broaden the scope of Regulation (EU) No 654/2014 concerning the exercise of the EU's rights for the application and enforcement of international trade rules ('the Enforcement Regulation'). The European Parliament is scheduled to vote at first reading during the January plenary session on the text agreed in trilogue with the Council.

Review of EU Enforcement Regulation for trade disputes

11-01-2021

On 12 December 2019, the European Commission adopted a proposal to amend Regulation (EU) No 654/2014 concerning the exercise of the EU's rights for the application and enforcement of international trade rules ('the Enforcement Regulation') of 15 May 2014. The Enforcement Regulation enables the EU to suspend or withdraw concessions or other obligations under international trade agreements in order to respond to breaches by third countries of international trade rules that affect the EU's commercial ...

On 12 December 2019, the European Commission adopted a proposal to amend Regulation (EU) No 654/2014 concerning the exercise of the EU's rights for the application and enforcement of international trade rules ('the Enforcement Regulation') of 15 May 2014. The Enforcement Regulation enables the EU to suspend or withdraw concessions or other obligations under international trade agreements in order to respond to breaches by third countries of international trade rules that affect the EU's commercial interests. The proposed amendments would enable the EU to impose counter-measures in situations where EU trade partners violate international trade rules and block the dispute settlement procedures included in multilateral, regional and bilateral trade agreements, thus preventing the EU from obtaining final binding rulings in its favour. The latter are required under the current EU regulation to enforce international trade rules. The Council adopted its negotiating position on 8 April 2020, and the Committee on International Trade (INTA) of the European Parliament adopted its position on 6 July 2020. Trilogue negotiations concluded on 28 October with a provisional agreement, which INTA endorsed on 10 November. Parliament is now set to vote on adopting the agreed text during the January 2021 part-session. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

China's economic recovery and dual circulation model

11-12-2020

After a delayed response to the outbreak of the novel coronavirus in late 2019, China has expanded its sophisticated digital surveillance systems to the health sector, linking security and health. It has apparently successfully contained the virus, while most other countries still face an uphill battle with Covid-19. China emerged first from lockdown, and its economy rapidly entered a V-shaped recovery. As in 2008, China is driving the global recovery and will derive strategic gains from this role ...

After a delayed response to the outbreak of the novel coronavirus in late 2019, China has expanded its sophisticated digital surveillance systems to the health sector, linking security and health. It has apparently successfully contained the virus, while most other countries still face an uphill battle with Covid-19. China emerged first from lockdown, and its economy rapidly entered a V-shaped recovery. As in 2008, China is driving the global recovery and will derive strategic gains from this role. However, China's relations with advanced economies and some emerging markets have further deteriorated during the pandemic, as its aggressive foreign policy posture has triggered pushback. This has created a more hostile environment for China's economic development and has had a negative impact on China's hitherto almost unconstrained access to these economies. The need to make the Chinese economy more resilient against external shocks and the intention to tap into the unexploited potential of China's huge domestic market in order to realise the nation's ambitions of becoming a global leader in cutting-edge technologies have prompted the Chinese leadership to launch a new economic development paradigm for China. The 'dual circulation development model' still lacks specifics but is expected to be a key theme in China's 14th Five-Year Plan (2021-2025) to be officially approved in March 2021. The concept suggests that, in future, priority will be given to 'domestic circulation' over 'international circulation'. China's more inward-looking development strategy geared towards greater self-reliance in strategic sectors requires major domestic structural reform and investment to unleash the purchasing power of China's low-end consumers and the indigenous innovation efforts to achieve the technological breakthroughs needed. These innovation efforts are expected to be largely state-driven. For the EU the envisaged shifts create challenges and opportunities. On the one hand, competition with China will become fiercer and, on the other, the EU can pursue openings for supply chain diversification with like-minded countries and thus boost its open strategic autonomy.

EU–China Geographical Indications Agreement

05-11-2020

During the November I part-session, Parliament is due to vote on giving its consent to the conclusion of the EU China agreement on cooperation on, and protection of, geographical indications (GIs), i.e. distinctive signs attached, mainly, to agri-food products that have a given quality, reputation or other characteristics that are attributable to their specific geographical origin. The agreement adds a new element to the legal framework for EU relations with China that is currently based, in particular ...

During the November I part-session, Parliament is due to vote on giving its consent to the conclusion of the EU China agreement on cooperation on, and protection of, geographical indications (GIs), i.e. distinctive signs attached, mainly, to agri-food products that have a given quality, reputation or other characteristics that are attributable to their specific geographical origin. The agreement adds a new element to the legal framework for EU relations with China that is currently based, in particular, on the 1985 European Economic Community–China Trade and Cooperation Agreement. It seeks to protect 100 EU GIs and 100 Chinese GIs in each other's territories against imitation and usurpation, and to bring the principle of reciprocity to bear in EU-China ties.

Amazon deforestation and EU-Mercosur deal

29-10-2020

After coming to a political agreement on the trade pillar of the three-pronged EU-Mercosur association agreement in June 2019, the EU and the four founding members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) reached agreement on the political dialogue and cooperation parts in July 2020. However, as environmental deregulation and deforestation continue unabated in Brazil, opposition to the deal is growing. It is unlikely to be submitted to the European Parliament for consent in its current ...

After coming to a political agreement on the trade pillar of the three-pronged EU-Mercosur association agreement in June 2019, the EU and the four founding members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) reached agreement on the political dialogue and cooperation parts in July 2020. However, as environmental deregulation and deforestation continue unabated in Brazil, opposition to the deal is growing. It is unlikely to be submitted to the European Parliament for consent in its current form. A study of the trade pillar's provisions concludes that, taking the risk of deforestation into account, the deal's environmental costs are likely to exceed its economic gains. This raises doubts as to whether Brazil's compliance with its climate change commitments can realistically be achieved based on provisions devoid of an effective enforcement mechanism.

International Agreements in Progress: Modernisation of the trade pillar of the EU-Mexico Global Agreement

02-10-2020

On 21 April 2018, the EU and Mexico reached an agreement in principle on a modernised trade pillar of the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Global Agreement, in force since 2000. On 28 April 2020, negotiations were formally concluded after the only outstanding item – EU access to sub federal public procurement contracts in Mexico – was agreed upon. The trade pillar of the Global Agreement was the first trade liberalisation agreement ...

On 21 April 2018, the EU and Mexico reached an agreement in principle on a modernised trade pillar of the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Global Agreement, in force since 2000. On 28 April 2020, negotiations were formally concluded after the only outstanding item – EU access to sub federal public procurement contracts in Mexico – was agreed upon. The trade pillar of the Global Agreement was the first trade liberalisation agreement the EU concluded with a Latin American country. It has contributed to a significant increase in EU Mexico trade in services and industrial goods. However, it has become outdated, as both parties have entered into a wide range of preferential trade agreements with state-of-the-art provisions reflecting new developments in trade and investment policies. Removing non-tariff barriers to trade, and further liberalising trade in agricultural goods would allow the EU and Mexico to enhance their competitive edge in each other's markets. After the trade pillar's legal scrutiny and translation, it will become part of a three-pronged Global Agreement that will also contain revamped political dialogue and cooperation pillars and will be signed by the Council of the EU and its Mexican counterpart. The new Global Agreement will subsequently be submitted to the European Parliament for its consent. Second edition of a briefing originally drafted by Roderick Harte. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification.

International Agreements in Progress - EU–China Comprehensive Agreement on Investment: Levelling the playing field with China

11-09-2020

Lack of reciprocity in access to the Chinese market and the absence of a level playing field for EU investors in China have posed major challenges for EU-China investment relations in recent years, with the negotiation of a comprehensive agreement on investment (CAI) being considered by the EU a key instrument to remedy this state of play. The CAI negotiations are aimed at establishing a uniform legal framework for EU-China investment ties by replacing the 25 outdated bilateral investment treaties ...

Lack of reciprocity in access to the Chinese market and the absence of a level playing field for EU investors in China have posed major challenges for EU-China investment relations in recent years, with the negotiation of a comprehensive agreement on investment (CAI) being considered by the EU a key instrument to remedy this state of play. The CAI negotiations are aimed at establishing a uniform legal framework for EU-China investment ties by replacing the 25 outdated bilateral investment treaties (BITs) China and EU Member States concluded prior to the entry into force of the Lisbon Treaty in 2009 when the EU gained competence for most investment issues. The CAI is intended to go far beyond traditional investment protection to also cover market access, investment-related sustainable development, and level playing field issues, such as transparency of subsidies, and rules on state-owned enterprises (SOEs) and forced technology transfer. Although leaders at the 2019 EU-China Summit jointly committed to concluding the CAI talks in 2020, lack of engagement at the highest political level on the Chinese side has raised doubts as to whether a breakthrough can be reached in time, with China more focused on navigating the uncertainties of its relations with the United States from January 2021. First edition. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification.

EU-China geographical indications agreement

02-09-2020

On 6 November 2019, the EU and China concluded negotiations on a standalone agreement on cooperation on, and protection of, geographical indications (GIs), i.e. distinctive signs attached to (mainly) agricultural products that have a given quality, reputation or other characteristics that are attributable to their specific geographic origin. GIs are a type of intellectual property right (IPR) protected at multilateral level under the Agreement on Trade-related Aspects of Intellectual Property Rights ...

On 6 November 2019, the EU and China concluded negotiations on a standalone agreement on cooperation on, and protection of, geographical indications (GIs), i.e. distinctive signs attached to (mainly) agricultural products that have a given quality, reputation or other characteristics that are attributable to their specific geographic origin. GIs are a type of intellectual property right (IPR) protected at multilateral level under the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS), and in the EU under a sui generis GI protection regime. The reciprocal EU-China agreement seeks to protect 100 EU GIs in China and 100 Chinese GIs in the EU against imitation and usurpation. On 20 July 2020, the Council endorsed its signature, and the European Parliament has now to give its consent for the agreement's conclusion. Once in force, the agreement could help boost EU exports of high-quality foodstuffs, wines and spirits to the EU's third-largest destination for agrifood exports, and foster rural development. It would also expand global recognition of the EU's sui generis GI protection regime, a key EU trade policy objective.

EU-China relations: Taking stock after the 2020 EU-China Summit

30-06-2020

The 22nd EU-China Summit, originally scheduled for March 2020, was postponed owing to the Covid-19 pandemic. While other summits were simply cancelled or postponed indefinitely, the EU and China decided to hold the summit by video-link, on 22 June 2020. This decision testifies to the importance both sides attach to taking their complex relationship forward in difficult times. The 2020 summit offered the opportunity to take stock of progress made on past commitments and to re-calibrate EU-China relations ...

The 22nd EU-China Summit, originally scheduled for March 2020, was postponed owing to the Covid-19 pandemic. While other summits were simply cancelled or postponed indefinitely, the EU and China decided to hold the summit by video-link, on 22 June 2020. This decision testifies to the importance both sides attach to taking their complex relationship forward in difficult times. The 2020 summit offered the opportunity to take stock of progress made on past commitments and to re-calibrate EU-China relations, against the backdrop of the wide-ranging fallout from the coronavirus pandemic, growing United States-China strategic rivalry, rapid geopolitical power shifts and the erosion of multilateralism. Looking at EU-China relations through the lens of the 2019 EU-China strategic outlook, China is seen as being at once a partner for cooperation and negotiation, an economic competitor and a systemic rival. China has been a cooperation and negotiating partner for the EU in several fields where interests have converged. Nonetheless, the different norms and values underlying the EU and Chinese political and economic systems have made cooperation challenging. Shared objectives do not necessarily lead to the same approaches to pursuing them. Economic competition has become fiercer in China, in the EU and in third markets. As the Chinese leadership shows growing assertiveness in disseminating alternative models of governance – at international, regional and bilateral levels, China is also acting as a systemic rival, on an increasing number of issues. The coronavirus pandemic has amplified pre-existing political and economic challenges in EU-China relations. It has exposed the EU's over-reliance on China for the supply of strategic goods and also China's confrontational 'Wolf Warrior diplomacy', which has involved the use of a wide range of tools, including disinformation campaigns, political influence and economic coercion, in an attempt to alter narratives critical of China's management of the crisis. It has also clearly demonstrated the need for a 'more robust' EU policy on China.

Hong Kong: A Beijing-imposed security law?

11-06-2020

On 28 May 2020, the National People's Congress (NPC) of the People's Republic of China (PRC) authorised its Standing Committee to adopt a national security law for Hong Kong, bypassing the city's Parliament, the Legislative Council. The law, expected to enter into force prior to Hong Kong's legislative elections scheduled for September 2020, is likely to be a turning point for the city's 'high degree of autonomy' and a premature phasing out of the 'One country, two systems' model that was planned ...

On 28 May 2020, the National People's Congress (NPC) of the People's Republic of China (PRC) authorised its Standing Committee to adopt a national security law for Hong Kong, bypassing the city's Parliament, the Legislative Council. The law, expected to enter into force prior to Hong Kong's legislative elections scheduled for September 2020, is likely to be a turning point for the city's 'high degree of autonomy' and a premature phasing out of the 'One country, two systems' model that was planned to subsist for 50 years from 1997. The European Parliament is expected to debate a statement from the High Representative during the June plenary session.

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