Explanatory Memorandum to COM(2022)582 - Conclusion of the Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)582 - Conclusion of the Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization. |
|---|---|
| source | COM(2022)582  |
| date | 09-11-2022 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The Doha Round of trade negotiations (also called the Doha Development Agenda or 'DDA') in the World Trade Organization (“WTO”) was launched in 2001 and covered a broad set of issues including fisheries subsidies, agriculture, industrial goods, services, industrial subsidies, and development issues. The WTO negotiations on fisheries subsidies were tasked to deliver on the United Nations Sustainable Development Goal Target 14.6.
The UN Sustainable Development Goal Target 14.6 sets out the aim to prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to illegal, unregulated and unreported fishing, and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the WTO fisheries subsidies negotiation.
At the 12th WTO Ministerial Conference that took place on 12-17 June 2022 in Geneva, consensus was reached on the Agreement on Fisheries Subsidies (“the Agreement”). The 12th WTO Ministerial Conference adopted 1 the Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization by inserting the Agreement on Fisheries Subsidies, as set out in the Annex to that Protocol, into the Marrakech Agreement after the Agreement on Subsidies and Countervailing Measures.
The Agreement is a crucial step to ensure that fisheries subsidies employ sustainability as their core objective and avoid harm to the oceans and fish stocks that are indispensable for the livelihood of coastal communities around the world. In an unprecedented way, all WTO Members signed up to substantial limitations on subsidising unsustainable fishing, notably:
·Prohibition of subsidies to illegal, unregulated and unreported fishing;
·Prohibition of subsidies for fishing outside of the jurisdiction of a coastal State and outside the competence of a relevant regional fisheries management organisation (RFMO/A) to protect the most vulnerable areas lacking established and coordinated fisheries management regime;
·Prohibition of subsidies to fishing regarding overfished stocks conditional on sustainability standards to rebuild such stocks to healthy level;
·Disciplines regarding subsidies benefitting vessels not flying the flag of the subsidising Member; and
·Extensive transparency and notification provisions to monitor the implementation of the Agreement.
The WTO Members also committed to continue negotiations based on the outstanding issues in documents WT/MIN(21)/W/5 and WT/MIN(22)/W/20 with a view to making recommendations to the 13th WTO Ministerial Conference for additional provisions that would achieve a comprehensive agreement on fisheries subsidies, including through further disciplines on certain forms of fisheries subsidies that contribute to overcapacity and overfishing, recognizing that appropriate and effective special and differential treatment for developing country Members and least developed country Members should be an integral part of these negotiations.
The Agreement on Fisheries Subsidies will enter into force for the WTO Members that have accepted it upon acceptance by two thirds of the WTO Members. The present Commission proposal for a Council decision aims at formally concluding the Agreement in accordance with Article 218(6) of the Treaty on the Functioning of the European Union (TFEU) to enable the Union to notify its acceptance to the WTO.
• Consistency with existing policy provisions in the policy area
The negotiations were conducted in close consultation with the Trade Policy Committee as provided for by Article 218(3) of the TFEU. The formal conclusion of the negotiations by the Council is one of the necessary steps under Article 218(6) of the TFEU to give legal effect to the negotiated outcome.
• Consistency with other Union policies
The Agreement is fully consistent with Union policies, in particular with the Common Commercial Policy, the Common Fisheries Policy, State aid rules and policy on decent work.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The Agreement is to be concluded by the Union pursuant to a decision of the Council based on Article 218(6) of the TFEU, following the European Parliament’s consent.
• Subsidiarity (for non-exclusive competence)
According to Article 5(3) of the Treaty on European Union, the subsidiarity principle does not apply in areas of exclusive EU competence.
• Proportionality
The proposal to conclude the Agreement does not exceed what is necessary to achieve the objective of taking additional commitments under the Marrakesh Agrement Establishing the World Trade Organization on behalf of the European Union.
• Choice of the instrument
This proposal for a Council decision is submitted in accordance with Article 218(6) of the TFEU, which envisages the adoption by the Council of a decision authorising the conclusion of the agreement. This is the only legal instrument available to achieve the objective expressed in this proposal.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Ex-post evaluations/fitness checks of existing legislation
Not applicable.
• Stakeholder consultations
Not applicable.
• Collection and use of expertise
Not applicable.
• Impact assessment
Not applicable.
• Regulatory fitness and simplification
The agreement is not subject to REFIT procedures.
• Fundamental rights
The proposal does not affect the protection of fundamental rights within the Union.
4. BUDGETARY IMPLICATIONS
The agreement is not expected to have a financial impact on the EU budget.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
Not applicable.
• Explanatory documents (for directives)
Not applicable.
• Detailed explanation of the specific provisions of the proposal
The acceptance of the Protocol by the Union would permit the incorporation of the Agreement into Annex 1A of the WTO Agreement.