The draft report and amendments tabled by MEP Marie-Pierre Vedrenne (Renew Europe, France) on the review of the European Regulation on the exercise of EU rights in the enforcement of international trade rules received overwhelming support (32 votes in favour, 3 against, 3 abstentions) from the European Parliament’s Committee on Trade on Monday 6 July (see EUROPE 12520/21, 12495/17, 12490/26).
The European Commission had initiated the revision of this Enforcement Regulation (see EUROPE 12464/2, 12387/23) in order to allow the EU to take measures - tariffs, quantitative restrictions and measures in the field of public procurement - in the event of the blockage of trade dispute settlement procedures, at the World Trade Organization (WTO), with the paralysis of its Appellate Body, or in its free trade agreements.
“We need tools that guarantee our strategic autonomy against Chinese unfair competition or President Trump’s out-of-control tariff diplomacy. In the event of a trade attack, the EU cannot afford to remain passive”, said Anna-Michelle Asimakopoulou, spokeswoman for the EPP group.
The Parliamentary Commissioner, who has indeed validated all of Mrs Vedrenne’s compromise amendments, has therefore clearly expressed her wishes, which, moreover, go beyond the scope of this dossier.
This support gives Mrs Vedrenne a clear mandate in the forthcoming interinstitutional negotiations. “This strong support from Parliament means that during the trilogues and under the German Presidency [of the EU Council, editor’s note] we will defend these key messages”, she welcomed in an interview with EUROPE.
What Parliament is asking for
MEPs endorsed the French MEP’s proposal to extend the scope of the Regulation by adding services and intellectual property, a change “consistent” with international trade developments.
“The Commission was rather open (on this amendment) during the various exchanges of views”, noted Mrs Vedrenne.
Interinstitutional negotiations will therefore reveal whether the EU Council will be convinced on this point (see EUROPE 12520/21, 12495/17).
MEPs also see an opportunity to give the Union a tool to sanction any partner that fails to fulfil its obligations under the sustainable development provisions.
If there is little chance of a compromise breaking down, it is a ‘reminder’ to the other EU institutions to act (see EUROPE 12520/21). “This is extremely important, because it is precisely in line with our values and what the EU stands for at the WTO. Ambitious rules are being established that are also in line with our objectives of the European Green Deal and this must become a reality”, Mrs Vedrenne stressed.
Another demand from MEPs is for the EU to be given the capacity to react immediately to unilateral and illegal sanctions, by imposing interim measures pending the outcome of the dispute.
Discussions with the Commission on this point have revealed its reluctance to pursue this option. But parliamentary support for this suggestion is a clear invitation to continue the rebalancing of the arsenal of deterrent instruments in EU trade policy (see EUROPE 12490/26).
“What is at stake is to have this toolbox... to give ourselves leverage in the negotiations, to be able to defend ourselves and ensure that our trading partners and everyone else respect the rules”, Mrs Vedrenne said.
Therefore, MEPs will probably expect the Commission to commit itself to creating an ad hoc instrument (see EUROPE 12515/18, 12495/17).
Finally, Parliament calls to advance the date for the revision of the Regulation.
Mrs Vedrenne intends to propose to the German Presidency that the interinstitutional discussions begin “as early as next week”. Amending this Regulation has always been identified as a priority issue, “especially now with the shock of Covid-19”, the MEP said.
“This is a strong message, which also fits in with the trade policy review. There are very high expectations, both from our businesses and from civil society. We need to show that we are using all the levers we can”, Mrs Vedrenne concluded. (Original version in French by Hermine Donceel)