How are the European Union’s bilateral trade negotiations progressing during the Covid-19 crisis? A brief overview of the most high-profile talks.
Australia: Negotiating rounds have been going steadily since the launch of negotiations in 2018. One round is taking place from 4 to 15 May (see EUROPE 12406/3). The ambition, according to a recent document of the three-Presidency team of the EU Council, is to conclude the agreement in 2021 (see EUROPE 12481/9). The summary of the last round: https://bit.ly/2SEaNlt
Chile: A new round of talks is scheduled to take place from 25 to 29 May, the seventh since the start of negotiations in November 2017. “We have made good progress in all sectors, but areas of importance to the EU are less advanced (geographical indications, intellectual property rights, investment and energy and raw materials)”, a Commission source told EUROPE. “We will conclude once we have achieved an ambitious result also in these areas: substance will supersede speed”, the same source concluded.
China: Round after round, talks to clinch a comprehensive investment agreement are proceeding apace – a 29th round could already take place at the end of May (see EUROPE 12406/3). In a context of tense relations with Washington, Beijing seems to want to breathe new life into the negotiations (see EUROPE 12475/14). But scepticism prevails in Brussels, which will judge the Chinese commitment on a piecemeal basis (see EUROPE 12437/11, 12395/12).
United States: “We are exploring the contours of a possible new agreement on trade issues”, the Commission spokesman confirmed to EUROPE in May. Contacts with the United States at technical and political levels, including several videoconferences in March and April 2020, have taken place, including between the Trade Commissioner and his US counterpart. The Commission stressed on this occasion that “efforts to improve transatlantic regulatory cooperation encompass areas highly relevant to the fight against the coronavirus epidemic, such as medical devices and pharmaceuticals, including vaccines” (see EUROPE 12464/1). “In this context, it makes sense to intensify this work as part of our contribution to the global response to the pandemic”, the institution’s spokesperson concluded, adding that these talks are being conducted in accordance with existing mandates and the EU regulatory and legal framework (see EUROPE 12457/13, 12473/5).
Indonesia: While the three-Presidency team’s draft document mentions a conclusion of the talks in 2021, the negotiations with Jakarta seem for the time being to be marking time, as the round scheduled for March had to be postponed without mentioning a new date (see EUROPE 12406/3).
Mexico: After 4 years of discussions, the European Commission announced on 28 April that it had concluded the free trade agreement with Mexico, a modernised version of the previous agreement dating from 2001 (see EUROPE 12476/13). While the agreement was generally well received on the right and in the centre of the European assembly, some people, such as the Greens/EFA group, are surprised at the context of this conclusion, since the current pandemic is also prompting a rethink of the foundations and the cost of society.
New Zealand: The seventh round of negotiations, which was held over 2 weeks by videoconference, concluded in early April with a lengthy session of negotiations at the level of the chief negotiator, notes a Commission summary. The parties hope to finalise talks before New Zealand’s elections in September 2020, EUROPE has learned. This is an extremely ambitious programme when we know that the parties have only just begun work on the agricultural offers, which is a stumbling block if ever there was one. In particular, Wellington has just concluded its consultations on the system of geographical indications, pushed by the EU, but to which New Zealanders, the majority of whom are of European origin, are hostile. A next round could be held in May, but no date has been confirmed at this stage. The summary of the last round: https://bit.ly/2YgrEyE (Original version in French by Hermine Donceel)