EU Member States' trade ministers are expected to note on Monday 27 May the failure of the Commission's attempts to engage the United States in several trade negotiations, both bilateral and multilateral.
The highlight of this Council of the EU meeting will most likely be the report of European Trade Commissioner Cecilia Malmström in the morning on her talks with her counterpart, the US Trade Representative Robert Lighthizer, this week in Paris.
According to European sources, the latter has not responded to European calls to launch bilateral negotiations on the elimination of customs duties on industrial products, as well as on conformity assessment (see EUROPE 12175/1). In the absence of agricultural issues in European mandates, they would not be compatible with US ambitions.
Washington's decision to postpone tariff sanctions on European cars by six months (see EUROPE 12258/14) and tariff measures in the dispute against EU support for the European aircraft manufacturer Airbus (see EUROPE 12233/15, 12257/13) will also be on the agenda.
Modernisation of the WTO
The Council of the EU will also discuss the reform of the World Trade Organization (WTO), with the EU actively engaged in promoting its complete modernisation (see EUROPE 12098/8).
It also intends to allow the WTO to carry out its dispute settlement role. However, this function is under threat, as the appointment of judges to its Appellate Body (AB) has been blocked by Washington for almost two years. However, no progress could be made in reforming the AB, as Washington still refuses to commit itself to this issue.
In the meantime, the timetable is tightening: with the expiry on 10 December of the terms of office of two of its last three judges, the AB will soon no longer be in a position to exercise its functions. While it is not possible for the EU to ignore this body, which guarantees balanced multilateralism, the Commission is aware that it is now necessary to deal with the urgency. It will propose to Member States that the EU commit itself to defining, in partnership with other members, an interim solution to avoid blocking the system.
Negotiations on electronic commerce
Also in the WTO chapter, European ministers will be informed of the progress made during a first round of plurilateral negotiations on substantive issues on digital trade (see EUROPE 12253/7). 12 negotiating proposals had been tabled, including those from key trading partners, including China. In an atmosphere of positive discussion, in-depth and constructive discussions were held on topics that were not very difficult, according to one European source.
A second cycle is expected to take place in mid-June, during which more sensitive elements, such as the data flow, will be attacked.
Agreements with Vietnam
The Council of the EU will take stock of preparations for the signature of the Free Trade Agreement and the Investment Protection Agreement with Vietnam (see EUROPE 12050/20). Most Member States should express their satisfaction with Hanoi's progress in ratifying International Labour Organization (ILO) conventions. According to various sources, out of three fundamental conventions that have not been ratified, one (No. 98, on the right to organise and collective bargaining) should already be ratified before 30 Jun 2019, the date on which the Romanian Presidency of the Council of the EU hopes to have validated and signed these agreements (see EUROPE 12248/24). The Abolition of Forced Labour Convention (No. 105) is expected to be ratified in 2020, and the Freedom of Association Convention (No. 87) in 2023.
Discussions with Mercosur
Over lunch, ministers will discuss ongoing trade negotiations with Mercosur, Australia, New Zealand, Chile and Indonesia.
Discussions with the South American bloc of Mercosur are the most anticipated. The climate has indeed warmed somewhat in these talks. South American negotiators have reportedly sent signals that they hope to unblock discussions on European demands, in particular on services (including maritime services). A reversal that, according to European sources, is due to a more conciliatory Brazilian negotiating team with a clearer mandate.
Technical discussions will still be necessary, so the date of a formal round of negotiations is not yet on the agenda (see other news).
An exchange on the Commission's proposal for an international instrument on public procurement (IPI) to ensure better reciprocity in access to public procurement abroad could also take place - a debate that could take place simultaneously at the Competitiveness Council (see other news). However, as discussions on this proposal have only been relaunched this week, since it was shelved in 2016, they should not yet be mature enough to allow for a real political debate in the Council of the EU (see EUROPE 12220/1).
Finally, the Belgian and Dutch ministers could already raise with their colleagues, with a view to rallying their support, their joint initiative to draw up a discussion paper aimed at strengthening the "trade and sustainable development" chapters of free trade agreements. (Original version in French by Hermine Donceel)