Annexes to COM(2016)443 - Conclusion of the Comprehensive Economic and Trade Agreement with Canada (CETA) - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2016)443 - Conclusion of the Comprehensive Economic and Trade Agreement with Canada (CETA). |
|---|---|
| document | COM(2016)443  |
| date | July 5, 2016 |
1.2.Policy area(s) concerned in the ABM/ABB structure 4
20.02 – Trade Policy
1.3.Nature of the proposal/initiative
☑ The proposal/initiative relates to a new action
◻ The proposal/initiative relates to a new action following a pilot project/preparatory action 5
◻ The proposal/initiative relates to the extension of an existing action
◻ The proposal/initiative relates to an action redirected towards a new action
1.4.Objective(s)
1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative
The proposal can be framed in the the first of the ten Juncker priorities – Job, Growth and Investment.
1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned
Specific objective No
1
ABM/ABB activity(ies) concerned
20.02 Trade Policy .
1.4.3.Expected result(s) and impact
Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.
CETA will bring tangible benefits to European consumers and companies by eliminating or cutting customs duties.
The provisions in the CETA agreement having a budgetary impact relate to the setting up and running of the Investment Court System (ICS).
The establishment of new Investment Court System will meet the high expectations of citizens and industry for a fairer, more transparent and institutionalised system of settling investment disputes.
In addition, the agreement will impact customs duties (see 3.3).
1.4.4.Indicators of results and impact
Specify the indicators for monitoring implementation of the proposal/initiative.
Maintaining or improving level of trade and investment flows between the EU and Canada.
1.5.Grounds for the proposal/initiative
1.5.1.Requirement(s) to be met in the short or long term
Maintain or improve level of trade and investment flows between the EU and Canada.
1.5.2.Added value of EU involvement
Canada is one of the EUs oldest and closest strategic partners in the world. We have a long history of shared values and therefore work closely together on many global challenges such as the environment, climate change, energy security, regional stability etc. Canada is the 11th largest economy in the world and is the 12th largest trading partner of the EU. With CETA, European companies will receive the best treatment that Canada has ever offered to any trading partner, thus levelling the playing field on the Canadian market for EU operators. By opening markets, CETA should support growth and jobs in the EU and bring further benefits for European consumers.
1.5.3.Lessons learned from similar experiences in the past
N/A
1.5.4.Compatibility and possible synergy with other appropriate instruments
N/A
1.6.Duration and financial impact
◻ Proposal/initiative of limited duration
– ◻ Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY
– ◻ Financial impact from YYYY to YYYY
☑ Proposal/initiative of unlimited duration
– Implementation with a start-up period from 2017 (subject to ratification in the Council and the European Parliament).
– followed by full-scale operation.
1.7.Management mode(s) planned 6
◻ Direct management by the Commission
– ◻ by its departments, including by its staff in the Union delegations;
– ◻ by the executive agencies
◻ Shared management with the Member States
☑ Indirect management by entrusting budget implementation tasks to:
– ◻ third countries or the bodies they have designated;
– ☑ international organisations and their agencies (to be specified);
– ◻the EIB and the European Investment Fund;
– ◻ bodies referred to in Articles 208 and 209 of the Financial Regulation;
– ◻ public law bodies;
– ◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;
– ◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;
– ◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.
– If more than one management mode is indicated, please provide details in the ‘Comments’ section.
Comments
A contribution will be given to an "existing structure" (namely, the ICSID) so that it channels the retainer fees to be paid to the judges composing the ICS. It is only in case that a dispute arises that the fees for case management could materialize, the services of ICSID as secretariat being otherwise free of charge.
2. MANAGEMENT MEASURES
2.1.Monitoring and reporting rules
Specify frequency and conditions.
As per the provisions of the framework agreement concluded with the organisation concerned.
2.2.Management and control system
2.2.1.Risk(s) identified
As per the provisions of the framework agreement concluded with the organisation concerned.
2.2.2.Information concerning the internal control system set up
As per the provisions of the framework agreement concluded with the organisation concerned. In particular, the applicable verification rules.
2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error
Given the estimated financial impact, no substantive quantifiable costs or benefits can be identified. The contribution will be part of DG Trade’s overall control system. As regards non-quantifiable benefits.
2.3.Measures to prevent fraud and irregularities
Specify existing or envisaged prevention and protection measures.
As per the provisions of the framework agreement concluded with the organisation concerned. In addition, DG Trade’s anti-fraud strategy, which contains a dedicated chapter on financial management, will apply.
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
• Existing budget lines
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number 4 | Diff./Non-diff. 7 | from EFTA countries 8 | from candidate countries 9 | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| 20.0201 | Diff. | NO | NO | NO | NO |
• New budget lines requested
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number N/A | Diff./Non-diff. | from EFTA countries | from candidate countries | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| N/A | YES/NO | YES/NO | YES/NO | YES/NO |
3.2.Estimated impact on expenditure
3.2.1.Summary of estimated impact on expenditure
EUR million (to three decimal places)
| Heading of multiannual financial framework | Number | 4 |
| DG: TRADE | Year 2017 | Year 2018 | Year 2019 | Year 2020 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||
| • Operational appropriations | ||||||||||
| Number of budget line 20.0201 | Commitments | (1) | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | |||
| Payments | (2) | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | ||||
| Number of budget line | Commitments | (1a) | - | - | - | - | ||||
| Payments | (2a) | - | - | - | - | |||||
| Appropriations of an administrative nature financed from the envelope of specific programmes 10 | 0 | 0 | 0 | 0 | ||||||
| Number of budget line | (3) | |||||||||
| TOTAL appropriations for DG TRADE | Commitments | =1+1a +3 | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | |||
| Payments | =2+2a +3 | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 |
• TOTAL operational appropriations | Commitments | (4) | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | |||
| Payments | (5) | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | ||||
| • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes | (6) | 0 | 0 | 0 | 0 | |||||
| TOTAL appropriations under HEADING 4 of the multiannual financial framework | Commitments | =4+ 6 | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | |||
| Payments | =5+ 6 | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 |
If more than one heading is affected by the proposal / initiative:
| • TOTAL operational appropriations | Commitments | (4) | ||||||||
| Payments | (5) | |||||||||
| • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes | (6) | |||||||||
| TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) | Commitments | =4+ 6 | ||||||||
| Payments | =5+ 6 |
Heading of multiannual financial framework | 5 | ‘Administrative expenditure’ |
EUR million (to three decimal places)
| Year 2017 | Year 2018 | Year 2019 | Year 2020 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||
| DG: TRADE | |||||||||
| • Human resources | 0.134 | 0.134 | 0.134 | 0.134 | 0.536 | ||||
| • Other administrative expenditure | 0 | 0 | 0 | 0 | |||||
| TOTAL DG TRADE | Appropriations | 0.134 | 0.134 | 0.134 | 0.134 | 0.536 |
| TOTAL appropriations under HEADING 5 of the multiannual financial framework | (Total commitments = Total payments) | 0.134 | 0.134 | 0.134 | 0.134 | 0.536 |
EUR million (to three decimal places)
| Year N 11 | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||
| TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework | Commitments | 0.634 | 0.634 | 0.634 | 0.634 | 2.536 | |||
| Payments | 0.634 | 0.634 | 0.634 | 0.634 | 2.536 |
3.2.2.Estimated impact on operational appropriations
– ◻ The proposal/initiative does not require the use of operational appropriations
– ☑ The proposal/initiative requires the use of operational appropriations, as explained below:
Commitment appropriations in EUR million (to three decimal places)
| Indicate objectives and outputs ⇩ | Year 2017 | Year 2018 | Year 2019 | Year 2020 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||||||||||
| OUTPUTS | ||||||||||||||||||
| Type 12 | Average cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | Total No | Total cost | |
| SPECIFIC OBJECTIVE No 1 13 … | Running of the ICS | |||||||||||||||||
| - Output | Secretariat | 1 | 0.500 | 0.500 | 0.500 | 0.500 | ||||||||||||
| - Output | Case(s) | - | p.m. | p.m. | p.m. | |||||||||||||
| - Output | ||||||||||||||||||
| Subtotal for specific objective No 1 | 0.500 | 0.500 | 0.500 | 0.500 | ||||||||||||||
| SPECIFIC OBJECTIVE No 2 ... | ||||||||||||||||||
| - Output | ||||||||||||||||||
| Subtotal for specific objective No 2 | ||||||||||||||||||
| TOTAL COST | 0.500 | 0.500 | 0.500 | 0.500 |
3.2.3.Estimated impact on appropriations of an administrative nature
3.2.3.1.Summary
– ◻ The proposal/initiative does not require the use of appropriations of an administrative nature
– ☑ The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:
EUR million (to three decimal places)
| Year N 14 | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL |
| HEADING 5 of the multiannual financial framework | ||||||||
| Human resources | 0.134 | 0.134 | 0.134 | 0.134 | 0.536 | |||
| Other administrative expenditure | 0 | 0 | 0 | 0 | ||||
| Subtotal HEADING 5 of the multiannual financial framework |
| Outside HEADING 5 15 of the multiannual financial framework | ||||||||
| Human resources | ||||||||
| Other expenditure of an administrative nature | ||||||||
| Subtotal outside HEADING 5 of the multiannual financial framework |
| TOTAL | 0.134 | 0.134 | 0.134 | 0.134 | 0.536 |
The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
3.2.3.2.Estimated requirements of human resources
– ◻ The proposal/initiative does not require the use of human resources.
– ☑ The proposal/initiative requires the use of human resources, as explained below:
Estimate to be expressed in full time equivalent units
| Year N | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | ||||
| • Establishment plan posts (officials and temporary staff) | ||||||||
| XX 01 01 01 (Headquarters and Commission’s Representation Offices) | 1 | 1 | 1 | 1 | ||||
| XX 01 01 02 (Delegations) | ||||||||
| XX 01 05 01 (Indirect research) | ||||||||
| 10 01 05 01 (Direct research) | ||||||||
| • External staff (in Full Time Equivalent unit: FTE) 16 | ||||||||
| XX 01 02 01 (AC, END, INT from the ‘global envelope’) | ||||||||
| XX 01 02 02 (AC, AL, END, INT and JED in the delegations) | ||||||||
| XX 01 04 yy 17 | - at Headquarters | |||||||
| - in Delegations | ||||||||
| XX 01 05 02 (AC, END, INT - Indirect research) | ||||||||
| 10 01 05 02 (AC, END, INT - Direct research) | ||||||||
| Other budget lines (specify) | ||||||||
| TOTAL | 1 | 1 | 1 | 1 |
XX is the policy area or budget title concerned.
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
| Officials and temporary staff | Monitoring of the running of the ICS/Case handling |
| External staff |
3.2.4.Compatibility with the current multiannual financial framework
– ☑ The proposal/initiative is compatible the current multiannual financial framework.
– ◻ The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.
Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts.
[…]
– ◻ The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework.
Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.
[…]
3.2.5.Third-party contributions
– The proposal/initiative does not provide for co-financing by third parties.
– The proposal/initiative provides for the co-financing estimated below:
Appropriations in EUR million (to three decimal places)
| Year N | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | Total | |||
| Specify the co-financing body : Canadian government | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 | |||
| TOTAL appropriations co-financed | 0.500 | 0.500 | 0.500 | 0.500 | 2.000 |
3.3.Estimated impact on revenue
– ◻ The proposal/initiative has no financial impact on revenue.
– ☑ The proposal/initiative has the following financial impact:
– ☑ on own resources
– ◻ on miscellaneous revenue
EUR million (to three decimal places)
| Budget revenue line: | Appropriations available for the current financial year (B2016) | Impact of the proposal/initiative 18 | |||||
| Year N | Year N+1 | Year N+2 | ………… | Year N+7 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | ||
| Article 120 - Custom Duties | 18.465,30 | …………… 311 |
For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.
[…]
Specify the method for calculating the impact on revenue.
Duty loss has been calculated on the basis of 2015 data, the budgetary impact of which will be EUR 311 million (80% of EUR 390 million). These duty losses will be spread out over a total of 7 years. The EU will eliminate 97.7% of the EU tariff lines at the entry into force of the agreement and then gradually within 3, 5 or 7 years for an additional 1% of tariff lines for imports of goods originating in Canada.
(1) http://trade.ec.europa.eu/doclib/docs/2008/october/tradoc_141032.pdf
(2) http://trade.ec.europa.eu/doclib/docs/2011/september/tradoc_148201.pdf
(3) The date of entry into force of the Agreement will be published in the Official Journal of the European Union by the General Secretariat of the Council.
(4) ABM: activity-based management; ABB: activity-based budgeting.
(5) As referred to in Article 54(2)(a) or (b) of the Financial Regulation.
(6) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
(7) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
(8) EFTA: European Free Trade Association.
(9) Candidate countries and, where applicable, potential candidate countries from the Western Balkans.
(10) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(11) Year N is the year in which implementation of the proposal/initiative starts.
(12) Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).
(13) As described in point 1.4.2. ‘Specific objective(s)…’
(14) Year N is the year in which implementation of the proposal/initiative starts.
(15) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
(16) AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JED= Junior Experts in Delegations.
(17) Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).
(18) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % for collection costs.