Explanatory Memorandum to COM(2018)206 - Implementation of the safeguard clauses and other mechanisms allowing for the temporary withdrawal of preferences in certain agreements concluded between the EU and certain third countries - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2018)206 - Implementation of the safeguard clauses and other mechanisms allowing for the temporary withdrawal of preferences in certain ... |
|---|---|
| source | COM(2018)206  |
| date | 18-04-2018 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
This proposal concerns the incorporation into European Union law of the (i) safeguard clauses and (ii) any special mechanisms for withdrawal of tariff preferences or other preferential treatments requiring an implementing regulation foreseen in future trade agreements concluded by the EU.
The Regulation for the moment foresees the implementation of the EU-Singapore Free Trade Agreement (FTA), the EU-Vietnam FTA and the EU-Japan FTA. It is also proposed that future trade agreements would be added to the scope of the regulation by delegated acts.
• Consistency with existing policy provisions in the policy area
The majority of the EU trade agreements include a bilateral safeguard clause. This clause provides for the possibility to suspend the further tariff liberalization or to re-instate the Most Favoured Nation customs duty rate when, as a result of trade liberalisation, imports take place in such increased quantities and under such conditions as to cause (or threaten to cause) serious injury to the domestic producers producing the like or directly competitive product. In addition, some EU trade agreements may include special mechanisms which also confer the possibility to reintroduce the MFN customs duty rate.
In order for these measures to be operational, this bilateral safeguard clause and any special mechanism should be incorporated in European Union law, and the procedural aspects of their application as well as the rights of interested parties need to be specified.
So far, it has been a consistent practice that the Commission proposed an implementing regulation in conjunction with each separate recent trade agreement.
Based on past experience and existing regulations, it is suggested that the whole process could be streamlined by proposing a horizontal bilateral safeguard regulation which could be used for all future FTAs. The body of the text of the regulation would focus on the common technical and procedural details of the bilateral safeguard instrument (conduct of investigations, procedures for provisional and definitive measures, etc.). A separate chapter would set the procedural rules concerning special mechanisms. An Annex would reflect the applicability of the regulation for a specific FTA partner in question as well as any specificities of the trade agreement in question.
The Annexes containing the few elements that are specific to each individual agreement would be amended via delegated acts. The delegated acts would be implementing the trade agreements that are already approved by the European Parliament and the Council and would thus provide the Commission with very limited political choice.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The attached proposal for a Regulation of the European Parliament and of the Council constitutes the legal instrument for the implementation of the safeguard clauses and any special mechanisms of the EU Trade Agreement.
Article 207(2) of the Treaty on the Functioning of the European Union.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
This proposal for a Regulation is directly derived from the texts of the Agreements negotiated with various other countries such as, Colombia, Peru, Central American countries, the Republic of Moldova and Georgia. Consequently, neither a separate consultation with interested parties nor any impact assessment is necessary. It is largely based on existing implementing regulations.
4. BUDGETARY IMPLICATIONS
5. OTHER ELEMENTS
An annual report will be provided to the Council and EP setting out trade statistics with the relevant FTA partner as well as information on the application of this regulation.