More confident trade defence instruments will be created, such as a carbon cap tax to increase the cost of imports, the production of which produces many emissions, and a mechanism for monitoring recipients of public subsidies outside the EU. [2] trade.ec.europa.eu/doclib/docs/2018/october/tradoc_157468.pdf Published in November 2020 and preceded by the foreword by DG Trade Director-General Sabine Weyand (other languages), the 4th EU Report on the implementation of the Free Trade Agreement (other languages) provides an overview of the results achieved in 2019 and the work that remains to be done for the EU`s 36 main preferential trade agreements. The accompanying Commission Staff Working Document contains detailed information in accordance with trade agreements and partners. The EU has concluded free trade agreements with 37 partners that have fully entered into force, including, for example, South Korea, Japan and Singapore, as well as free trade agreements with 43 partners, such as Canada and Ukraine, which are provisionally applied. In May, the EU and Mexico also reached an agreement as part of negotiations on modernising the existing agreement. Negotiations on new free trade agreements with 19 countries, including Australia and New Zealand, are ongoing. « Before TTIP, eu trade policy was perceived by DG TRADE [the Commission`s trade department], a number of officials from EU countries and some lobbyists. The public debate on TTIP has changed that, » de Ville said. « The EU`s trade policy has become politicised and the number of actors involved has exploded: politicians and academics, but also NGOs, consumer organisations and civil society in general. » The European Union has concluded free trade agreements (FTAs)[1] and other trade-related agreements with many countries around the world, and is negotiating with many others. [2] « Previous commissions liked bilateral agreements like Vietnam or Singapore to host great shows, » said Pascal Lamy, former EUROPEAN Trade Commissioner and head of the World Trade Organization.
« Climate has played a role, but certainly not as important as it is today. Human or workers` rights were less important for one simple reason: Sweden and Bangladesh share the same land and atmosphere, but not the same working conditions. These developments, these concerns (in terms of trade and sustainable development), will only increase over time. We`re not going to go back to what it was anytime soon. « Traditional trade policy is about limiting barriers to trade and reducing tariffs. If you reduce your rates on carrots, then I will lower mine on cars. You don`t need historians or philosophers to say whether carrots are good or bad, » Lamy said. « But if you want to push through human rights issues or climate ambitions in exchange for access to your single market, things get complicated. » In 2019, the European Union and Vietnam agreed on a free trade agreement.
The trade agreement covers a range of goods and services. The agreements provide for significant tariff reductions on food and beverages and the elimination of a number of non-tariff barriers to trade. The agreement also includes commitments in the areas of international labour rights and protection, global environmental agreements and human rights. The BAFTA Agreement was signed by the three States on 13 September 1993 and entered into force on 1 April 1994. On 1 January 1997, the agreement was extended to trade in agricultural products. On 1 May 2004, the three states joined the European Union and BAFTA ceased to exist. After the fall of the Iron Curtain, two free trade areas were created in Central Europe, the Baltic Free Trade Area (BAFTA) and the Central European Free Trade Agreement (CEFTA), in order to stabilise these countries for EU membership. With the enlargement of the EU in 2004, the original members of these two agreements withdrew and joined the EU. These far-reaching agreements can take several years of detailed negotiations. With its flagship initiative for the European Green Deal, the current Commission has shifted climate policy from the margins to the centre of trade policy.
« Making globalisation more sustainable and fairer should be the underlying driver of trade policy and meet the expectations of Europeans and others around the world, » says the Commission`s Trade Strategy 2021. Australian Trade Minister Dan Tehan told POLITICO earlier this year that free trade agreements should focus on « liberalizing trade and freeing up investment flows and liberalizing the flow of services. » Referring to the additional considerations put on the table by the EU, he said: « These new issues that are reflected in free trade agreements, but what they should not do is stand in the way of the fundamental raison d`être of free trade agreements. » [1] trade.ec.europa.eu/doclib/press/index.cfm?id=1933 trade agreements are generally very complex, as they are legal texts covering a wide range of activities, from agriculture to intellectual property. But they share a number of basic principles. Of course, this clear separation does not mean that the ratification of free trade agreements lacks democratic legitimacy. Responsibility for trade policy lies with the EU; since the Treaty of Lisbon, trade agreements must be ratified by the European Parliament. Nevertheless, the parliaments of the Member States should be informed in a timely and comprehensive manner of the negotiations on free trade agreements in order to allow for a well-informed public debate. A transparent negotiation process also includes the publication of the European Commission`s negotiating mandates. According to the European Commission, the TRIMs would replace the bilateral investment judicial systems involved in EU trade and investment agreements. The European Union negotiates free trade agreements on behalf of all its member states, with member states giving the EU « exclusive competence » to conclude trade agreements.
Nevertheless, the governments of the Member States control every step of the process (through the Council of the European Union, whose members are the national ministers of each national government). « There has been a shift from a strong focus on liberalization as the main objective of trade policy to a more level playing field, » De Ville said, pointing to climate change and China as the main trigger. Under former European Commission President Jean-Claude Juncker, trade negotiators in Brussels played a role in concluding or signing historic pacts with Canada, Japan, Vietnam, Singapore and Mexico. Stellinger hopes that ongoing negotiations with Australia and New Zealand will move forward, which both countries intend to conclude later this year. « It wouldn`t have a big economic impact, but from a trade perspective, it`s important to see the EU move forward with free trade agreements, » she said. In addition, the coronavirus pandemic has dealt a further blow to the EU`s belief in free trade. The pressure on supply chains has reinforced the arguments put forward by advocates of the EU`s strategic independence, trade defence and supply chain diversification. In a world where imports of essential goods could be cut off overnight, the EU should become more self-sufficient, they argue. There are currently four multilateral free trade areas in Europe and, more recently, a former free trade area. Note that there are also a number of bilateral free trade agreements between states and between trading blocs; and that some States participate in more than one free trade area. The European Union Customs Union is a customs union composed of all European Union Member States (including four territories outside the EU – Akrotiri and Dhekelia, Guernsey, the Isle of Man and Jersey), Turkey, San Marino, Monaco and Andorra, which are located outside the EU.
The customs union not only allows free trade between states, but also imposes a common external tariff on all goods imported into the territory. The EU`s transition to a more sustainable and ethical trade policy did not happen overnight. Since the beginning of the Juncker Commission in 2015, the transformation of the message has been reflected in a strategy entitled « Trade for All – Towards a more responsible trade and investment policy ». The Council has a crucial role to play in drawing up a new trade agreement. One study found that trade agreements implemented by the EU during the period 1993-2013 « reduced quality-adjusted prices by almost 7% ». [83] A number of negotiations are underway with the countries in the hope that a future free trade agreement can be concluded. Some of the most important are Australia, New Zealand and Mercosur (Brazil, Argentina, Uruguay, Paraguay) And also for the EU, the use of trade policy to project the UNION`s values in terms of human rights and sustainability only works if this policy is included in the text of the new trade agreements. Concluding trade agreements is becoming increasingly difficult for the EU. .