Brussels, 18/09/2013 (Agence Europe) - The European Parliament is amending, in committee, the draft regulation aiming to assert the EU's rights as part of its trade agreements.
On Tuesday 17 September, MEPs from the Parliament's international trade committee approved by a wide majority the report by Niccolo Rinaldi (ALDE) which amends the draft regulation proposed by the European Commission in December 2012 to establish a clear and predictable framework allowing the EU to take enforcement measures when its rights are not respected under the terms of commercial agreements, both multilateral and bilateral, into which it has entered and when its economic interests are at stake (see EUROPE 10754).
Following their rapporteur, MEPs want the range of retaliation measures that the EU can use in case of illegal actions from its trade partners to be extended to include services as well as goods and public procurement. Furthermore, MEPs call on the Commission always to justify its choice of retaliation measures before the Parliament.
The new instrument aims to ensure a quicker response from the EU in its trade disputes, as well as to strengthen the credibility of its threat aiming to dissuade its partners from not respecting the bilateral agreements or WTO decisions. “In the absence of horizontal legislation on trade disputes, all litigation decisions are on a case by case basis, which is very slow and not an effective deterrent for trading partners who do not fulfil their contractual obligations”, says Rinaldi.
The new instrument is not protectionist as it fits completely within the rules and procedures for the settlement of multilateral, regional and bilateral disputes, which already give the country of complaint the right to choose the option of last resort, under which it may take temporary defensive retaliation against an offending country when it refuses to comply with the decision of a dispute settlement body, states Rinaldi in a press release.
The amendments are due to be confirmed by the Parliament in its second plenary session in October. MEPs will then be able to begin negotiations with the Council. (EH/transl.fl)