Brussels, 11/05/2016 (Agence Europe) - TTIP, CETA, trade-related aspects of the steel sector situation (otherwise known as trade defence) and the regulation on war minerals: these four controversial issues are included on the agenda of the meeting of the trade ministers of the EU, to be chaired by their Dutch colleague, Lilianne Ploumen, in Brussels on Friday 13 May. No decisions will be made on these issues, but it is possible that movement could begin on the highly controversial issue of modernising the EU's trade defence instruments, which has been at deadlock at the Council since April 2014.
Steel/trade defence. The ministers will discuss the steel sector situation, on the basis of the most recent strategy of the Commission to shore up the sector which was presented in March (see EUROPE 11512), and in light of the debate on modernising the EU's trade defence instruments.
Given the crisis hitting the European steel sector, which has fallen victim to Chinese overcapacity, and in the face of Chinese unfair competition in many industrial sectors that are supported by the State, the pressure is building upon the member states finally to agree on plans to modernise the trade defence instruments tabled by the Commission in April 2013 and at deadlock at the Council since December 2014 (see EUROPE 11202), despite the European Parliament agreeing on its position in April 2014 (see EUROPE 11063).
In this dossier, which features the age-old clash between the approaches of the pro-free trade countries and the more protectionist ones to third-country dumping, “the lines may start to move”, a diplomatic source told us. For instance, the United Kingdom, whose steel sector is reeling from the crisis, but also other countries, such as Germany, Austria, Belgium, Luxembourg and Croatia, could relax their positions and agree to amend the current arsenal of trade defence instruments, for instance bringing in limited derogations to the lesser duty rule, which give the Commission the power to levy corrective duty up to the total amount of the dumping margin in certain specific cases.
“There is again discussion in the Council on the trade defence instruments. It is fair to say that in view of, in particular, the situation in the steel sector, countries that perhaps two years or four years ago were perfectly comfortable with the set of trade defence instruments that we had are now contemplating whether perhaps that set of instruments needs amendment or upgrading, or whatever”, a Dutch diplomatic source told EUROPE on Wednesday 11 May.
Canada. The ministers will discuss the situation of the EU-Canada free-trade agreement (CETA), including the legal scrubbing of the text of an agreement which was finalised on 29 February and the agreement concluded between the two sides on its investment protection chapter, which paved they way for the process of signature and ratification of the CETA by the two parties.
In June, the Commission will put a proposal on the Council's table for the signature of the CETA, which it hopes will come to fruition at an EU-Canada summit in October, ahead of the next steps - the ratification of the agreement by the European Parliament and its provisional implementation in 2017.
United States. The ministers will take stock of the EU-United States free-trade negotiations (TTIP), in the wake of the political re-engagement for a high-quality agreement expressed at the highest level during the visit to Europe of the American President Barack Obama, in late April (see EUROPE 11539) and the 13th round of negotiations, in New York at the end of April (see EUROPE 11453).
Despite progress made in the consolidation of the texts under the regulation and rules headings, there is still much work to be done and bridges to be built to satisfy the EU's offensive interests - services, public procurement, geographical indications - to conclude an agreement in principle by the end of this year.
WTO/Doha. The ministers will discuss the agenda of the Doha round at the WTO following the ministerial conference of Nairobi in December 2015, which led to an agreement on the end of agricultural export subsidy programmes and disciplines for equivalent measures (state trading enterprises) and for food aid (see EUROPE 11458). The Nairobi conference also opened up the agenda for work on new issues, such as digital trade and investment. The Commission will determine its objectives for the post-Nairobi agenda and how to move forward the work in the forthcoming multilateral meetings, such as the ministerial meeting of the OECD in June.
War minerals. The Presidency will report back to the ministers on progress in trialogue negotiations with the European Parliament on the future EU regulation - known as the legislation on war minerals - aiming to limit the financing of armed military groups in conflict zones by trading in tin, gold, tantalum and tungsten, negotiations that remain at stalemate following the most recent negotiation sessions in April (see EUROPE 11526) and this Wednesday 11 May. (Original version in French by Emmanuel Hagry)