On Thursday 11 May, EU trade ministers will discuss the EU’s new anti-dumping method that was proposed by the European Commission at the end of 2016, and will review the ongoing free trade negotiations in preparation for the WTO conference in Buenos Aires.
Trade defence. The ministers are expected to give their political approval to the position adopted by the EU Council at ambassadors’ level on 3 May, regarding a new methodology for the anti-dumping calculation. This is in order to settle the issue of how to treat China in the EU’s anti-dumping investigations, now the arrangements on this have expired under China’s WTO accession protocol (see EUROPE 11780). Based on its position, the Council will be able to begin trialogue negotiations with the European Parliament, when the Parliament has determined its own negotiation position.
This new methodology, which is intended to be neutral with regard to all third countries, is aimed at identifying market distortions resulting from state intervention in these countries, and at remedying the damage caused to European industry, in line with the rules of the WTO’s anti-dumping agreement.
The Council’s position broadly reflects the principles put forward by the Commission, which has drawn up a list for identifying large market distortions such as: the government's policies and influence; the general presence of state-owned companies; discrimination in favour of national companies; the lack of independence of the financial sector; the inadequate application of legislation on bankruptcy, business or ownership.
When a significant distortion is identified in an exporting country, the Commission will be able to correct it, setting a price that relates either to the cost of production and sale price in a country with similar levels of economic development, or to the costs and prices without market distortion. Furthermore, the Commission will have to write specific reports on countries and sectors, identifying distortions. It will still be up to EU businesses to lodge complaints, but they will be able to use these reports to substantiate their case.
The assessment of this new anti-dumping method is taking place alongside the separate process of inter-institutional negotiation on the modernisation of the EU's trade defence instruments (proposed by the Commission in April 2013 and started in March) (see EUROPE 11751), following on from the fragile agreement in principle reached at the Council in December 2016.
WTO negotiations. The ministers will discuss the prospects for the 11th WTO ministerial conference to be held in Buenos Aires on 11-14 December, where there are hopes of results on issues covered as part of the Doha round, like agriculture, fisheries subsidies, services and new issues such as e-commerce.
Implementation of free trade agreements. The Council will hold a debate on the basis of ideas presented by the Commission to guarantee effective application of the arrangements of these free trade agreements between the EU and third countries to the benefit of all economic actors. There are currently 23 free trade agreements in force, six have been concluded (but their implementation has not yet started, as is the case with the CETA with Canada), and around 20 negotiations are under way.
Ukraine. The ministers will review the draft temporary autonomous trade measures for Ukraine, which were proposed by the Commission in September 2016 in addition to what is already offered as part of the EU-Ukraine free trade area. The European Parliament's international trade committee gave its green light on 4 May to additional EU annual duty-free import quotas for Ukraine, ruling out certain agricultural products such as wheat but not corn (see EUROPE 11781, 11782).
Burma/Myanmar. The ministers will discuss the talks for an EU-Burma agreement on investment protection, which were launched in March 2014. The 5th round of talks was held at the end of April and enabled "very good progress", a diplomatic source told EUROPE on Monday 8 May, giving assurances that the discussions were "very near to a conclusion".
Pacific. The Commission will review the preparatory work for negotiations for free trade agreements with Australia and New Zealand, and for updating the agreement in force with Chile. The scoping exercises for these talks were completed with the three countries between January and April.
Over lunch, the ministers will discuss the state of progress in the free trade agreements with Japan, Mercosur and Mexico.
Launched in March 2013, the negotiations for a free trade agreement with Japan are more advanced. The 18th round of talks, in Tokyo in early April, enabled the gaps to be reduced between the two parties, with the objective of concluding an agreement as soon as possible in 2017, European Trade Commissioner Cecilia Malmström stated on 11 April. The parties are expected to keep up their political momentum at the G7 summit in Taormina, Italy on 26 and 27 May. "We are still very hopeful to have a conclusion by the end of this year", a Maltese diplomatic source told EUROPE on Monday.
Relaunched in May 2016, the negotiations on the trade section of an association agreement between the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay) made progress during the second round of talks, in Buenos Aires at the end of March. The parties agreed to merge their negotiation text proposals into consolidated texts, and agreed on the text of the chapter on competition policy (see EUROPE 11755). The next round is planned for early July, in Brussels. Malmström and Argentina's Foreign Affairs Minister Susana Malcorra confirmed their commitment on 20 April to concluding an agreement by the end of 2017.
Launched in May 2016, the talks for updating the comprehensive EU-Mexico agreement (which has been in force since 2000) have progressed after three rounds of negotiations (the last in Brussels on 3-7 April), and the two parties confirmed their desire to conclude an agreement in principle by the end of 2017 (see EUROPE 11764). The next round of negotiations is planned for the end of June, in Mexico. Malmström was in Mexico on Monday to assess the progress of these negotiations.
Future of EU and globalisation. The Commission will present its discussion document on managing globalisation by 2025, which it will unveil on 10 May, as an extension to its White Paper on the future of Europe. (Original version in French by Emmanuel Hagry)