Spanish Presidency Trade Action Plan
SPANISH PRESIDENCY
COMMITTEE 133
ACTION PLAN
Within the framework of Committee 133, the Spanish Presidency aims to meet a number of specific objectives in the different areas of Community trade policy, fulfilling its task as the Presidency of all the Member States and including within the programme subjects which other Member States consider a priority. An effort will also be made to maintain the best possible relations between the Council and the Commission in order to facilitate agreements on the objectives set by the Community on the basis of the Commission's objectives.
The work to be undertaken includes the following sections:
A. NEW ROUND
The work of the Commission and the Council during the six months of the Spanish Presidency should be centred around three subject areas: a) the subjects which make it possible to include the dimension of development within the negotiation; b) the actual negotiations themselves; c) the tasks involved in preparing the 5th Conference.
- The development dimension. The European Union will be required to make a priority the tasks which will restore the confidence of the developing and less advanced countries and which will achieve ambitious results in the negotiations. The Presidency considers that the results of the 4th Conference lead us to consider the new Round as a true round for development, thus entitled by the Secretariat of the World Trade Organisation, and it is our task to ensure that this becomes a reality in the coming years, achieving the true integration of the developing countries within the multilateral trade system. Consequently, the Community must make considerable efforts to more speedily resolve the issues which are particularly relevant to this. The EU must promote implementation of the WTO's technical assistance programme in order to increase the consistent nature and effectiveness of technical assistance work related to trade. The Spanish Presidency makes it a priority to achieve a satisfactory agreement over access to medicaments. The debates on this subject during the Doha Ministerial Conference have shown that special effort and flexible attitudes will be required on the part of WTO Members, making it possible to seek a rapid solution to the problem of countries with insufficient production capacity in the pharmaceutical sector, and to present the corresponding report to the General Council at the end of 2002.
- The actual negotiations. The Council's document on the conclusions of the 4th Conference includes the decision to "authorise the Commission to begin the negotiations envisaged in the Ministerial Declaration within the framework of the directives which it presents". The Presidency will make an effort to provide the Member States with exhaustive and timely information on the progress of the negotiations.
- Preparation of the 5th Conference. The Presidency wishes to accord with the Commission a schedule for presenting documents, in order to effectively programme the debates and pass on contributions from the Member States.
B. ADHESIONS TO THE WTO
- Russia. The good relations with Russia, reinforced by the events of 11th September, make it necessary to speed up the negotiations for Russia's entry to the WTO, moreover avoiding any comparison-based offence to China. The Presidency will give a major political boost to the process of adhesion, which will allow us to present a positive balance at the EU-Russia Summit to be held in Moscow on 28.05.02. To this end it will back the Italian proposal to create a Friends of Russia Group to speed up adhesion.
- In addition the Spanish Presidency will back the efforts of the Commission to move forward in other processes of adhesion under way.
C. ECONOMIC PARTNERSHIP AGREEMENTS BETWEEN THE ACP STATES AND THE EUROPEAN UNION
The formal negotiations to reach the Economic Partnership Agreements with the States of Africa, the Caribbean and the Pacific will begin in September 2002, and the Agreements shall be required to come into force on 01.01.08. The Commission has committed itself to having the corresponding mandate ready for the end of January 2002, so that it may be approved by the Council in June 2002.
D. EU-MEDA RELATIONS
Amongst the main moves to be made in the field of trade in the first six months of 2002, the Spanish Presidency is organising the meeting of Euro-Mediterranean Ministers of Trade in Toledo, to be held on 19th March, 2002. At this meeting the Presidency aims to reach agreements which will promote the development and economic integration of the counties in the Mediterranean basin, in particular agreements on the promotion of investments and rules of origin.
The action undertaken up till now in this area has not achieved the results aimed for and, consequently, urgent action will be proposed which will make it possible to bring these countries within direct foreign investments flows. To this effect the Spanish Presidency will boost:
- The creation of a Euro-Mediterranean Bank, the objectives of which will be economic development and reconstruction, thus contributing to the political stability of the countries in the area. The Euro-Mediterranean bank would have a similar structure to that of the European Bank of Reconstruction and Development.
- The holding of entrepreneurial forums with Southern Mediterranean countries to disseminate information regarding investment opportunities.
- The signing of an Agreement between the Member States' Investment Promotion Agencies in order to establish a permanent network of mutual information on the area.
As regards rules of origin the Presidency will push for pan-Euro-Mediterranean agreements. The Presidency also aims to include the negotiation of services in the Association Agreements.
E. ASSOCIATION AGREEMENTS
E.1. EU-CHILE FREE TRADE ZONE
The good progress of the successive Rounds of negotiations would allow us to suppose that the Agreement will be ready for the EU-ALC Summit to be held in Madrid on 17th and 18th May. The Presidency is interested in reaching an ambitious agreement in all areas, including services, with the broadest possible deregulation, as well as investments.
E.2. MERCOSUR-EU NEGOTIATIONS
The negotiation is not advancing as quickly as with Chile. Nevertheless, the Presidency understands that it is important to push to achieve an agreement which will facilitate trade, as well as others on cooperation and political dialogue.
E.3. EU-ANDEAN PACT FREE TRADE ZONE
The debates which have taken place in the first extension of the GPS drug have revealed the great fragility of these Agreements which, in the best of cases, are submitted to negotiations every 3-4 years. This produces a great deal of uncertainty as regards business expectation and prevents the development of stable external economic relations. The Spanish Presidency considers that it is necessary to substantially improve the institutional framework which governs trade relations between the two zones, EU - Andean Pact. The evaluation study on these relations, the conclusions of which will be available during the fist six months of 2002, will form the basis for the new legal framework of relations between the Andean Pact countries and the European Union.
E.4. CENTRAL AMERICA-UE FREE TRADE ZONE
E.5 ZLC EU-GULF COUNCIL COOPERATION
The Presidency will support the intention of the Commission to accelerate the negotiations with countries in this area.
E.6. ASSOCIATION AGREEMENT WITH SYRIA AND IRAN
Similarly, the Presidency will back the Association Agreements of he EU with Syria and Iran.
F. EUROPEAN UNION - UNITED STATES RELATIONS
During the Spanish Presidency some trade litigation cases with the United States will enter a significant phase, such as, in particular, the case arising from the Appeals Body ruling on "Tax on Sales Companies Abroad" (Extraterritorial Income Exclusion previously Foreign Sales Corporations) , and the United States measures in the iron and steel sector. The Presidency considers that the construction of a solid trade relationship must be based on actions which do not violate the conditions of fair competition and must be in accordance with the currently excellent political relations. The Presidency is collaborating with the Commission over the resolution of lawsuits which it is anticipated that the European Union may face during the first six months.
G. SUMMITS
During the Spanish Presidency the Summits with the United States , Canada and Russia will be held, the agendas for which the Presidency would like to programme with the Commission.