Legal provisions of COM(2019)623 - Amendment of Regulation 654/2014 concerning the exercise of the Union's rights for the application and enforcement of international trade rules - Main contents

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier	COM(2019)623 - Amendment of Regulation 654/2014 concerning the exercise of the Union's rights for the application and enforcement of ...
document	COM(2019)623
date	February 10, 2021

Article 1
Article 2

Article 1

Regulation (EU) No 654/2014 is amended as follows:

(1)

in Article 1, point (b) is replaced by the following:

‘(b)	rebalancing concessions or other obligations in the trade relations with third countries, when the treatment accorded to goods or services from the Union is altered in a way that affects the Union’s interests.’;

(2)

in Article 2, point (b) is replaced by the following:

‘(b)

“concessions or other obligations” means tariff concessions or other obligations or benefits in the field of trade in goods or services, or concerning trade-related aspects of intellectual property rights, that the Union has committed itself to applying in its trade with third countries by virtue of international trade agreements to which it is a party;’;

(3)

Article 3 is amended as follows:

(a)

the following point is inserted:

‘(aa)

following the circulation of a WTO panel report upholding, in whole or in part, the claims brought by the Union, if an appeal under Article 17 of the WTO Dispute Settlement Understanding cannot be completed and if the third country has not agreed to interim appeal arbitration under Article 25 of the WTO Dispute Settlement Understanding;’;

(b)

the following point is inserted:

‘(ba)

in trade disputes relating to other international trade agreements, including regional or bilateral agreements, if adjudication is not possible because the third country is not taking the steps that are necessary for a dispute settlement procedure to function, including unduly delaying the proceedings amounting to non-cooperation in the process;’;

(c)

point (d) is replaced by the following:

‘(d)

in cases of modification of concessions or commitments by a WTO member under Article XXVIII of the GATT 1994 or Article XXI of the General Agreement on Trade in Services (GATS), where no compensatory adjustments have been agreed and, as regards services, compensatory adjustments are not made in conformity with the findings of the arbitration pursuant to Article XXI of the GATS.’;

(4)

in Article 4, paragraph 2 is amended as follows:

(a)

the following point is inserted:

‘(ba)

where measures are taken to restrict trade with a third country in situations under point (aa) or (ba) of Article 3, the level of such measures shall not exceed the nullification or impairment of the Union’s commercial interests caused by the measures of that third country;’;

(b)

point (d) is replaced by the following:

‘(d)

where concessions or commitments are modified or withdrawn in the trade with a third country in connection with Article XXVIII of the GATT 1994 and the related Understanding (*1), or with Article XXI of the GATS and the related implementing procedures, they shall be substantially equivalent to the concessions or commitments modified or withdrawn by that third country, in accordance with the terms established in Article XXVIII of the GATT 1994 and the related Understanding or Article XXI of the GATS and the related implementing procedures.

(*1) Understanding “Interpretation and Application of Article XXVIII.”’;"

(5)

Article 5 is amended as follows:

(a)

in paragraph 1, the following points are inserted:

‘(ba)

the suspension of obligations regarding trade in services and the imposition of restrictions on trade in services;

(bb)

the suspension of obligations with respect to trade-related aspects of intellectual property rights granted by a Union institution or agency and valid throughout the Union, and the imposition of restrictions on the protection of such intellectual property rights or their commercial exploitation, in relation to right-holders who are nationals of the third country concerned;’;

(b)

the following paragraphs are inserted:

‘1a.

When selecting measures to be adopted pursuant to point (ba) of paragraph 1 of this Article, the Commission shall always consider measures according to the following hierarchy of steps:

(a)	measures relating to trade in services requiring an authorisation valid throughout the Union and based on secondary legislation, or, where no such measures are available,

(b)	measures relating to other services in areas where extensive Union legislation exists, or, where no such measures are available,

(c)	measures which the information-gathering exercise conducted pursuant to Article 9(1a), as provided for in point (a) of Article 5(1b), has demonstrated would not impose a disproportionate burden on the process of administration of relevant national regulations.

1b.

Measures adopted pursuant to points (ba) and (bb) of paragraph 1 shall:

(a)	be subject to an information-gathering exercise pursuant to Article 9(1a);

(b)

be adjusted, if necessary, by means of an implementing act pursuant to Article 4(1) where, after a review conducted pursuant to Article 9(1a), the Commission concludes that the measures are of insufficient effectiveness or impose an unreasonable burden on the process of administration of relevant national regulations. Such review by the Commission shall be first conducted six months after the date of application of the measures and at intervals of 12 months thereafter;

(c)	be subject to an evaluation report, six months after their termination and based, inter alia, on stakeholder input, which shall examine their effectiveness and operation, and draw possible conclusions for future measures.’;

(6)

in Article 6, the following paragraph is added:

‘3.	Regarding trade-related aspects of intellectual property rights, the term “nationals” shall be understood in the same sense as it is used in paragraph 3 of Article 1 of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights.’;

(7)

in Article 7, the first subparagraph of paragraph 2, point (c) is replaced by the following:

‘(c)

in cases of the withdrawal or modification of concessions or commitments by a WTO member under Article XXVIII of the GATT 1994 or Article XXI of the GATS, when the third country concerned accords adequate and proportionate compensation to the Union after the adoption of an implementing act under Article 4(1).’;

(8)

Article 9 is amended as follows:

(a)

paragraph 1 is replaced by the following:

‘1.

The Commission shall seek information and views regarding the Union’s economic interests in specific goods or services sectors, or regarding specific trade-related aspects of intellectual property rights, in the application of this Regulation, through a notice in the Official Journal of the European Union or through other suitable public communication means, indicating the period within which input is to be submitted. The Commission shall take the input received into account.’;

(b)

the following paragraph is inserted:

‘1a.

When the Commission envisages measures pursuant to point (ba) or (bb) of Article 5(1), it shall inform and conduct consultations with stakeholders, in particular industry associations, affected by possible commercial policy measures and with Member State public authorities involved in the formulation or implementation of legislation regulating the affected fields. Without unduly delaying the adoption of such measures, the Commission shall, in particular, seek information on:

(a)	the impact of such measures on third country service providers or right-holders who are nationals of the third country concerned and on Union competitors, users or consumers of such services or intellectual property rights holders;

(b)	the interaction of such measures with relevant Member State regulations;

(c)	the administrative burden which may be occasioned by such measures.

The Commission shall take utmost account of the information gathered during such consultations.

The Commission shall provide an analysis of the envisaged measures to Member States when proposing the draft implementing act pursuant to Article 8.’;

(9)

Article 10 is replaced by the following:

‘Article 10

Review

At the earliest possible opportunity after 13 February 2021, but no later than one year after that date, the Commission shall review the scope of this Regulation, taking into account in particular the commercial policy measures that may be adopted, as well as its implementation, and shall report its findings to the European Parliament and the Council.

2.	In acting pursuant to paragraph 1, the Commission shall undertake a review aimed at envisaging under this Regulation additional commercial policy measures suspending concessions or other obligations in the field of trade-related aspects of intellectual property rights.’.

Article 2

This Regulation shall enter into force on 13 February 2021.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Please note

Contents

Article 1

Article 2