Sydney/Brussels, 03/03/2014 (Agence Europe) - Canberra rejects the idea of including clauses on sustainable development and human rights in its negotiations for a framework agreement with the EU.
The negotiation of a vast framework agreement between the EU and Australia, which would replace the current economic partnership in place since 2008, is being complicated because of the EU's insistence on wanting to include clauses on environmental protection and the respect of human rights in the agreement. This is a request that Australia rejects. “We have tried to negotiate a framework agreement with the EU for a long time, but it insists on linking your commitments with your performance in areas such as human rights or the environment”, a high level representative from Australia's Department of Foreign Affairs told EUROPE during a G20 press trip. “We don't accept this approach. We don't accept these principles. In fact, we reject them. We refuse this link. We don't think Australia needs this type of judgment shown by the EU on human rights”, the source stated. “We like human rights”, jokes Australia's Treasurer Joe Hockey, stating that he does not want war with Europe. Nevertheless, “the fewer restrictions you have [on trade - Ed.], the better you can compete”, he says.
Australia unbending in EU's eyes. “The negotiations [for the framework agreement- Ed.] are advanced, but Australia does not indicate flexibility on what we see as essential political clauses”, said the European Parliament's rapporteur on trade with Australia, Godelieve Quisthoudt-Rowohl (EPP, Germany). In her opinion, “it is becoming more and more crucial that all further agreements between the EU and third countries should include reciprocal conditionality and political clauses on human rights and democracy, as a common reaffirmation of mutual commitment to these values and regardless of the state of protection of human rights in those countries”. Quisthoudt-Rowohl added: “We believe that maintaining a high level of standards and protection mechanisms is crucial. We respect the importance of clauses on sustainable development, labour, and environmental standards. We do not see this as a lack of freedom in trade but as part of a sustainable and responsible trade policy.” “Some developed countries, such as Canada, do not like these clauses”, added a European Parliament source.
The European Commission and the European External Action Service (EEAS) have refused to state an opinion, not wanting to comment on an ongoing negotiation.
The negotiating mandate for the framework agreement between the EU and Australia dates back to October 2011. If these negotiations end successfully, the agreement will be the first overall legally binding bilateral treaty between the two partners. If it includes a very limited economic and trade chapter, this agreement could “serve as a legal basis for further developing our cooperation in numerous areas, ranging from political dialogue and security issues to economic and trade issues, to sustainable development, research, education and culture”, says a source at the Commission.
No free trade negotiations in sight. Australia is “very interested in looking at the merits of a negotiation for a free trade agreement with the EU”, and is conducting its own internal assessment of the potential advantages of such an agreement, says the Australian Department of Foreign Affairs. However, it seems that this agreement might not be a priority for Australian business people, who speak of the long distance between Australia and Europe, and who favour the proximity of Asia.
“The EU is interested in strengthening links with Australia. There is a general positive approach to a free trade agreement with this country. But there are constraints concerning the feasibility of this agreement”, said Quisthoudt-Rowohl. Furthermore, the EU and Australia are both already very busy with their other free trade agreements currently under negotiation - the EU is talking to the US, Japan and Canada, while Canberra is talking to Japan and China. “This leads to limited resources for negotiations on both sides”, said Quisthoudt-Rowohl. “We do not plan to launch new negotiations at this stage”, the Commission states - even if, on the European side, the fact that the new Australian government includes a reference to the EU as a potential free trade partner is appreciated.
The EU is Australia's third biggest trading partner (after China and Japan), while Australia is the EU's 15th biggest trading partner. The EU's exports to Australia stood at €33.8 billion in 2012 and its imports from Australia stood at €14.5 billion. The balance of services is also to the EU's advantage as it exported €15.8 billion of services to Australia and imported €7.3 billion. European businesses operating in Australia generate around 500,000 direct jobs and around 1 million indirect jobs. (CG)