In the European Parliament's international trade committee (INTA) on Monday 5 November, the debate on the free trade and investment protection agreements, signed by the European Union and Singapore on 19 October (see EUROPE 12121), reiterated the well-known political dividing lines.
The centrist fringe of the socialists (S&D), the Christian democrat (EPP) and conservative (ECR) groups and the liberal group (ALDE) support a swift implementation of the free trade agreement.
By contrast, MEPs situated further left on the political spectrum – the Greens/EFA group, some socialists from the S&D group and the GUE/NGL group – have reservations about the content of the two trade agreements.
A large number of MEPs recognised the patience of the Singaporeans, who since 2010 have bowed to numerous European requests. For socialist Alessia Maria Mosca (Italy), it is "the credibility" of the European Parliament and EU that this in question.
Reiterating the expected economic benefits of the free trade agreement, particularly on services, agri-food and public procurement, the rapporteur, David Martin (S&D, UK) also underlined its strategic importance.
This first agreement with a country from the Association of Southeast Asian Nations (ASEAN) will serve as a benchmark for the other agreements currently being negotiated with other countries in this economically dynamic region. It enables European norms and standards to be spread at a time when other developing countries are weaving their own network of agreements, such as the TPP-II.
Martin also underlined the "progressive" dimension of this 'new generation' agreement, which recognises, among other things, the commitments of the parties to the Paris Climate Agreement.
Fundamental rights still given a rough ride
Several MEPs expressed reservations about Singapore's non-ratification of certain fundamental conventions of the International Labour Organization. While the government of Singapore justified itself on this, its arguments did not wash with all MEPs.
"Since 2010 (…) we have not seen any movements in terms of ratifying the last three conventions", deplored British labour MEP Jude Kirton-Darling. "I would really encourage the Singaporean authorities if they want to see a big support, to start the process of ratification before we vote on the free trade agreement", she added.
Some MEPs also expressed concern at Singapore's very liberal approach in the financial domain and at the risk of instability that a crisis could engender for the European economy.
Awaiting European Court of Justice ruling on investment protection
The first agreement on autonomous investment protection has a 'CETA+' type mechanism. Martin, who acknowledged doubting the real need for this mechanism with Singapore, spoke about its features: - a code of conduct for judges; - transparent procedures; - the possibility for NGOs to give their opinion; - an appeal mechanism; - and an article underlining the right of states to regulate.
The European Court of Justice has been asked by Belgium about the legality of the arbitration system for investment disputes that is provided for in the EU-Canada trade agreement (CETA) (see EUROPE 11856) but it will not give its opinion before 2020. For MEPS on the left, there is thus no reason to speed up on the Parliament's vote on the investment protection agreement with Singapore.
However, according to the European Commission, if the European Parliament voted in favour of this agreement, it would send a positive signal in favour of a system that the EU defends in its other trade negotiations. And it considers that ratification by all the national parliaments will not come before the opinion of the Court. (Original version in French by Hermine Donceel)