Annexes to COM(2018)693 - Conclusion of the Investment Protection Agreement with Viet Nam - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2018)693 - Conclusion of the Investment Protection Agreement with Viet Nam. |
|---|---|
| document | COM(2018)693  |
| date | October 17, 2018 |
1.2.
1.3.
Policy area(s) concerned in the ABM/ABB structure7
20.02 – Trade Policy
1.4.
1.4.1.
Nature of the proposal/ini tiat ive 0The proposal /initiative relates
to a new action
D The proposal/initiative relates to a new action following a pilot project/preparatory action8
IZI The proposal/initiative relates to the extension of an existing action
IZI The proposal/initiative relates to an action redirected towards a new action
Objective(s)
The Commission’s multiannual strategic objective(s) targeted by the
proposal/initiative
The proposal can be framed in the first of the ten Juncker priorities and Investment.
Jobs, Growth
1.4.2. Specific objective(s) and ABM/ABB activity(ies) concerned
1.4.3. Expected result(s)
and impact
Specify the effects which beneficiaries/groups targeted.
proposal/initiative
The objective of the EU-Vietnam Investment Protection Agreement (IPA) is to enhance the investment climate between the EU and Vietnam. The agreement will bring benefits to European investors by ensuring a high level protection of their investments in Vietnam, while at the same time safeguarding the EU’s rights to regulate and pursue legitimate public policy objectives such as the protection of public health, safety and the environment.
The agreement establishes an Investment Court System (ICS) designed to meet the high expectations of citizens and industry for a fairer, more transparent and institutionalised system of settling investment disputes. The provisions in the EU-Vietnam IPA having an impact on the EU budget relate precisely to the setting up and running costs of the ICS.
ABM: activity-based management; ABB: activity-based budgeting.
the
should
have
the
on
1.4.4. Indicators of results and impact
Specify the indicators for monitoring implementation of the proposal/initiative.
The IPA brings legal certainty and predictability that is expected to help the EU and Vietnam attract and maintain investment to underpin their economy.
1.5. Grounds for the proposal/initiative
1.5.1. Requirement(s) to be met in the short or long term
Maintain or improve the level of investment flows between the EU and Vietnam.
1.5.2. Added value of EU involvement
In 2016, total EU FDI stock in Vietnam amounted to € 8.3 billion. As one of the largest foreign investors in the country, the EU will benefit from the enhanced investment climate that the IPA will provide for. The agreement further contains all the innovations of the EU’s new approach to investment protection and its enforcement mechanisms that are not present in the 21 existing bilateral investment treaties between Vietnam and EU Member States that the IPA will be replacing.
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
D Proposal/initiative of limited duration
D Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY
D Financial impact from YYYY to YYYY
0 Proposal/initiative of unlimited duration
Implementation with a start-up period from 2019 (subject to ratification in the Council and the European Parliament).
followed by full-scale operation.
1.7. Management mode(s) planned9
D Direct management by the Commission
IZI by its departments, including by its staff in the Union delegations;
IZI by the executive agencies
D Shared m anage m ent with the M e mber States
IZI Indirect management by entrusting budget implementation tasks to:
IZI third countries or the bodies they have designated;
IZI international organisations and their agencies (to be specified);
Dthe EIB and the European I nvest m ent Fund;
Details of management modes and references to the Financial Regulation may be found on the
9
D bodies referred to in Articles 208 and 209 of the Financial Regulation;
D public law bodies;
IZI bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;
IZI 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;
IZI 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
As regards the financial handling of the ICS in the EU-Vietnam IPA, 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. 2.1.
MANAGEMENTMEASURES Monitoring and reporting rules
Specify frequency and conditions.
As
per the provisions of the framework agreement concluded with the organisation concerned.
2.2.
22.1.
Management and control system
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.
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 FINANCIALIMPACTOF 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 multiann ual financial framewo rk | Budget line | Type of expendit ure | Contribution | |||
| Number 4 | Diff./No n-diff.10 | from EFTA countri es11 | from candidat e countrie 12 s | from third countri es | 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.
| Type of | ||||||
| Heading | Budget line | expendit | Contribution | |||
| of multiann | ure | |||||
| within the | ||||||
| from | ||||||
| ual | from | from | meaning of | |||
| financial | Number | Diff./No | EFTA | candi dat | third | Article 21(2 |
| fra mewo | N/A | n-diff. | countri | e | countri | )(b) of the |
| rk | es | countrie s | es | Financial Regulation | ||
| N/A | YES/N O | YES/N O | YES/N O | YES/NO |
10
11
Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. EFTA: European Free Trade Association.
12
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 2019 | Year 2020 | Year 2021 | Year 2022 | 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 | Commitmen ts | (1) | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | |||
| Payments | (2) | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | ||||
| Number of budget line | Commitmen ts | (1a) | - | - | - | - | ||||
| Payments | (2a) | - | - | - | - | |||||
| Appropriations of an administrative nature financed from the envelope of specific programmes13 | 0 | 0 | 0 | 0 | ||||||
| Number of budget line | (3) |
13
Technical and/or
direct research.
administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research,
EN
17
EN
| Commitmen | =1+ 1a | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | ||||
| TOTAL appropriations for DG TRADE | ts | +3 | ||||||||
| =2+ | ||||||||||
| Payments | 2a +3 | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 |
| • TOT AL operational appropriations | Commitmen ts | (4) | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | |||
| Payments | (5) | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | ||||
| • TOT AL 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 | Commitmen ts | =4+ 6 | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | |||
| Payments | =5+ 6 | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 |
| If more than one heading is affected by the proposal | / initiative: | |||||||||
| • TOT AL operational appropriations | Commitmen ts | (4) | ||||||||
| Payments | (5) |
EN
18
EN
| • 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) | Commitmen ts | =4+ 6 | ||||||||
| Payments | =5+ 6 |
EN
19
EN
| Heading of multiannual financial framework | 5 | ‘Administrative expenditure’ |
EUR million (to three decimal places)
| Enter as many years as | |||||
| Year | Year | Year | Year | necessary to show the | TOTAL |
| 2019 | 2020 | 2021 | 2022 | duration of the impact | |
| (see point 1.6) |
| DG: TRADE | |||||||||
| • Human resources | 0.143 | 0.143 | 0.143 | 0.143 | 0.572 | ||||
| • Other administrative expenditure | 0 | 0 | 0 | 0 | |||||
| TOTAL DG TRADE | Appropriations | 0.143 | 0.143 | 0.143 | 0.143 | 0.572 |
under HEADING 5
of the multiannual financial
framework
EUR million (to three decimal places)
| Enter as many years as | ||||||
| Year | Year | Year | Year | necessary to show the | TOTAL | |
| 2019 | 2020 | 2021 | 2022 | duration of the impact | ||
| (see point 1.6) |
EN
20
EN
| TOTAL appropriations under HEADINGS 1 to 5 | Commitments | 0.843 | 0.843 | 0.843 | 0.843 | 3.372 | |||
| of the multiannual financial framework | Payments | 0.843 | 0.843 | 0.843 | 0.843 | 3.372 |
EN
21
EN
3.2.2. Estimated impact on operational appropriations
YA The proposal/initiative does not require the use of operational appropriations
El 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 2019 | Year 2020 | Year 2021 | Year 2022 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||||||||||
| OUTPUTS | ||||||||||||||||||
| Type14 | Aver age cost | Cost | Cost | Cost | Cost | Cos t | Cost | Cost | Tota l No | Total cost | ||||||||
| SPECIFIC OBJECTIVE No 115… | Running of the ICS | |||||||||||||||||
| - Output | Secreta | 1 | 0.70 | 0.70 | 0.70 | 0.700 | 2.800 | |||||||||||
| - Output | Case t s) | 0 p.m. | 0 p.m. | p.m. | ||||||||||||||
| - Output | ||||||||||||||||||
| Subtotal for specific objective No 1 | 0.70 0 | 0.70 0 | 0.70 0 | 0.700 | 2.800 | |||||||||||||
| SPECIFIC OBJECTIVE No 2 ... |
14 15
Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). As described in point 1.4.2. ‘Specific objective(s)…’
EN
22
EN
| - Output | ||||||||||||||||||
| Subtotal for specific objective No 2 | ||||||||||||||||||
| TOTAL COST | 0.70 0 | 0.70 0 | 0.70 0 | 0.700 | 2.800 |
EN
23
EN
3.2.3. Estimated
impact on appropriations of an administrative nature
3.2.3.1. Summary
IZI The proposal/initiative does not require the use of appropriations of an administrative nature
IZI The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:
EUR million (to three decimal places)
Year Year
2019 2020
Year Year
2021 2022
as many years as
Enter necessary to show the duration TOTAL of the impact (see point 1.6)
HEADING 5
of the multiannual
financial
framework
Human resources
Other
administrative
expenditure
Subtotal
HEADING 5
of the multiannual
financial
framework
0.143 0.143
0.143 0.143
0.572
| Outside 16 HEADING 5 of the multiannual financial framework | |
| Human resources | |
| Other expenditure of an administrative nature | |
| Subtotal outside HEADING 5 of the multiannual financial framework |
| TOTAL | 0.143 | 0.143 | 0.143 | 0.143 | 0.572 |
Technical and/or administrative assistance and expenditure in support of the implementation of
0
0
0
0
6
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
IZI The proposal/initiative does not require the use of human resources.
El The proposal/initiative requires the use of human resources, as explained below:
Estimate to be expressed in full time equivalent units
| Year 2019 | Year 2020 | Year 2021 | Year 2022 | 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)17 | |||||||
| 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 18 | - 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) |
AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = JED= Junior Experts in Delegations.
staff;
17
agency
8
| 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 External staff
Monitoring
of the running of the
ICS/Case handling
3.2.4. Compatibility with the current multia nnual financial framework
El The proposal/initiative is compatible the current multiannual financial framework. IZI The proposal/initiative will entail reprogramming of the relevant heading in the
3.2.5.
multiannual financial framework.
IZI The proposal/initiative requires application of the flexibility instrument or revision
of the multiannual financial framework.
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 2019 | Year 2020 | Year 2021 | Year 2022 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | Total | |||
| Specify the co-financing body: Government of the Socialist Republic of Viet Nam | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 | |||
| TOTAL appropriations co-financed | 0.700 | 0.700 | 0.700 | 0.700 | 2.800 |
on revenue
3.3. Estimated impact
0 The proposal/initiative has no financial impact on revenue. D The proposal/initiative has the following financal impact:
0
on own resources
on miscellaneous revenue
EUR million (to three decimal places)
| Budget revenue line: | Appropriat ions available for the current financial year (B2016) | Impact of the proposal/initiative19 | |||
| 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) | |
| Article …………. | ............... |
For miscellaneous ‘assigned’ revenue, specify the budget expenditure affected.
[…]
line(s)
Specify the
method for calculating the impact on revenue.
[•]
As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net
9