{
"activities": [
{
"date": "1999-07-08T00:00:00",
"docs": [
{
"url": "http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=1999&nu_doc=0331",
"text": [
"\n
PURPOSE : to present the case in favour of a new comprehensive\nRound of trade negotiations and to define a common negotiating\nframework.
\nCONTENT : The European Community has been at the forefront of\nefforts to launch a Millennium Round of trade negotiations in the\nWTO in 2000. In its conclusions of 30 March, 30 April and 18 May\n1998, and 21 June 1999, the Council unanimously supported such an\naim. Frequent and substantive discussions on several occasions\nwithin the Council's 133 Committee have developed further the\nCommunity's position on the approach to, and possible scope of such\na Round, enabling the EU to continue to exercise leadership in the\nWTO.
\nThis communication sets out the case for a new WTO trade round as\nan important means to improve the European economy, to foster\nglobal economic growth and development, and to ensure the\nsuccessful management of globalisation. It argues that a\ncomprehensive Round offers the best way to take account of the\ntrade interests of the WTO membership as a whole.
\nIn addition, the Communication sets out the possible EU agenda for\nthe Round, for which should, among other things, include further\nliberalisation or rule-making in the fields of agriculture and\nservices, non-agricultural tariffs, investment, competition, trade\nfacilitation, and trade environment. Results in all areas should\nsupport and contribute to sustainable development. The\nCommunication sets out in addition the views of other trading\npartners on the question of a new round, noting that the support\nfor this is growing. It also proposes a detailed agenda to ensure\nthat the needs and interests of developing countries are concretely\nreflected in the negotiations, and suggests an approach to the\nquestion of labour standards and the WTO.
\nThe main guidelines which are proposed can be summed-up as :
\n1) agriculture : some of the principles of the agreement concluded\nin the Uruguay Round should be kept, notably, the defence of the\nmultifunctional role of agriculture, the preservation of human,\nanimal and plant life or health, the relationship between trade and\nthe environment, animal welfare, food safety and food quality and\nother consumer concerns relevant to agriculture. For the\nCommission, the reform of the CAP within the framework of Agenda\n2000 would constitute essential elements in defining its\nnegotiating mandate for the future multilateral negociations at the\nWTO;
\n2) services : the Community should have an ambitious position for\nthe further market opening coupled, where necessary, with\nregulatory disciplines. The aim is to achieve real and meaningful\nliberalisation, and ensure the development of a transparent and\npredictable domestic regulatory environment, justified on the basis\nof specific public policy objectives, which can provide legal\ncertainty and confidence to service suppliers, investors, users and\nconsumers;
\n3) investment : the WTO represents the adopted framework for a\nnegociation in this domaine including the developing countries who\nhave been mostly in the role of host countries.
\nA framework for multilateral rules for investment has to ensure the\nright conditions for international investment to be conducive to\nsustainable development. To this end, such a framework should,\namong other things, preserve the ability ofhost countries to\nregulate the activity of investors (whether foreign or domestic) on\ntheir respective territory, for the achievement of legitimate\npolicy objectives;
\n4) competition : the Commission have come to a firm decision in\nfavour of a strict framework in this regard: the setting of common\nrules relating to competition and the active and effective\nenforcement of these rules, common approaches on anti-competitive\npractices with a significant impact on international trade and\ninvestment, provisions on international co-operation, provisions on\nnotification, consultation and surveillance in relation to\nanticompetitive practices, introduction of concepts of negative and\npositive comity, uniform procedure of regulation of different\nopinions;
\n5) trade facilitation : it is necessary to simplify and harmonise,\nautomate procedures, reduce red tape and documentation, and\nincrease transparency;
\n6) tariffs on non-agricultural products : the Commission calls for\nthe generalised reduction of tariffs on the non-agricultural\nproducts, with an important advantage for the least developed\ncountries which should benefit from early tariff free treatment for\nnearly all of their products from now until 2003;
\n7) trade and environment : trade and environment policies should\nplay a mutually supportive role in favour of sustainable\ndevelopment. The WTO rules should be harmonious with existing and\nfuture multilateral environment agreements (MEAs). It is also\nnecessary to maintain the right of WTO members to take\nprecautionary action to protect human health, safety and the\nenvironment while at the same time avoiding unjustified or\ndisproportionate restrictions;
\n8) trade and core labour standards : the Commission does not\nconsider sanctioning the countries where social conditions are\nconsidered as inadequate but it recommends a positive approach by\nencouraging the fixing of international rules within the ILO (in\nthis regard, the Commission regrets that the efforts made by the\nUnion to create a \"social standards\" working group within the WTO,\ncame to nothing. The Commission underlines that the opposition of\nthe developing countries remains strong and that it is not\nrealistic to reach a consensus on the issue). The Commission\nadvocates a five point strategy based on co-operation with the ILO\nand the convincing of its partners (by means of a regime of\nencouragement allowing third countries to obtain complementary\ntrade advantages if they prove that they respect the main ILO\nconventions on work).
\nThe Commission's document also deals with the intellectual property\nrights, public procurement, technical barriers to trade,\nanti-dumping measures and other instruments of trade defence,\nelectronic commerce as well as taking account of the public's\nconcerns which are becoming more and more sensitive to the negative\neffects of the globalisation of work and the environment.
\nThe Commission calls on the Council to reach a position regarding\nits communication and to approve the general guidelines, in such a\nway that allows it (direct consultation with the Committee in\nArticle 133) to prepare, along the lines indicated, for the\nMinisterial Conference in Seattle, which is to take place in\nNovember 1999.
\nThe European Parliament will also be called upon to reach adecision\non the contents of this communication and will be kept informed of\nthe progress on each of the issues throughout the negotiating\nprocess.
\n
\n
PURPOSE : to present the case in favour of a new comprehensive\nRound of trade negotiations and to define a common negotiating\nframework.
\nCONTENT : The European Community has been at the forefront of\nefforts to launch a Millennium Round of trade negotiations in the\nWTO in 2000. In its conclusions of 30 March, 30 April and 18 May\n1998, and 21 June 1999, the Council unanimously supported such an\naim. Frequent and substantive discussions on several occasions\nwithin the Council's 133 Committee have developed further the\nCommunity's position on the approach to, and possible scope of such\na Round, enabling the EU to continue to exercise leadership in the\nWTO.
\nThis communication sets out the case for a new WTO trade round as\nan important means to improve the European economy, to foster\nglobal economic growth and development, and to ensure the\nsuccessful management of globalisation. It argues that a\ncomprehensive Round offers the best way to take account of the\ntrade interests of the WTO membership as a whole.
\nIn addition, the Communication sets out the possible EU agenda for\nthe Round, for which should, among other things, include further\nliberalisation or rule-making in the fields of agriculture and\nservices, non-agricultural tariffs, investment, competition, trade\nfacilitation, and trade environment. Results in all areas should\nsupport and contribute to sustainable development. The\nCommunication sets out in addition the views of other trading\npartners on the question of a new round, noting that the support\nfor this is growing. It also proposes a detailed agenda to ensure\nthat the needs and interests of developing countries are concretely\nreflected in the negotiations, and suggests an approach to the\nquestion of labour standards and the WTO.
\nThe main guidelines which are proposed can be summed-up as :
\n1) agriculture : some of the principles of the agreement concluded\nin the Uruguay Round should be kept, notably, the defence of the\nmultifunctional role of agriculture, the preservation of human,\nanimal and plant life or health, the relationship between trade and\nthe environment, animal welfare, food safety and food quality and\nother consumer concerns relevant to agriculture. For the\nCommission, the reform of the CAP within the framework of Agenda\n2000 would constitute essential elements in defining its\nnegotiating mandate for the future multilateral negociations at the\nWTO;
\n2) services : the Community should have an ambitious position for\nthe further market opening coupled, where necessary, with\nregulatory disciplines. The aim is to achieve real and meaningful\nliberalisation, and ensure the development of a transparent and\npredictable domestic regulatory environment, justified on the basis\nof specific public policy objectives, which can provide legal\ncertainty and confidence to service suppliers, investors, users and\nconsumers;
\n3) investment : the WTO represents the adopted framework for a\nnegociation in this domaine including the developing countries who\nhave been mostly in the role of host countries.
\nA framework for multilateral rules for investment has to ensure the\nright conditions for international investment to be conducive to\nsustainable development. To this end, such a framework should,\namong other things, preserve the ability ofhost countries to\nregulate the activity of investors (whether foreign or domestic) on\ntheir respective territory, for the achievement of legitimate\npolicy objectives;
\n4) competition : the Commission have come to a firm decision in\nfavour of a strict framework in this regard: the setting of common\nrules relating to competition and the active and effective\nenforcement of these rules, common approaches on anti-competitive\npractices with a significant impact on international trade and\ninvestment, provisions on international co-operation, provisions on\nnotification, consultation and surveillance in relation to\nanticompetitive practices, introduction of concepts of negative and\npositive comity, uniform procedure of regulation of different\nopinions;
\n5) trade facilitation : it is necessary to simplify and harmonise,\nautomate procedures, reduce red tape and documentation, and\nincrease transparency;
\n6) tariffs on non-agricultural products : the Commission calls for\nthe generalised reduction of tariffs on the non-agricultural\nproducts, with an important advantage for the least developed\ncountries which should benefit from early tariff free treatment for\nnearly all of their products from now until 2003;
\n7) trade and environment : trade and environment policies should\nplay a mutually supportive role in favour of sustainable\ndevelopment. The WTO rules should be harmonious with existing and\nfuture multilateral environment agreements (MEAs). It is also\nnecessary to maintain the right of WTO members to take\nprecautionary action to protect human health, safety and the\nenvironment while at the same time avoiding unjustified or\ndisproportionate restrictions;
\n8) trade and core labour standards : the Commission does not\nconsider sanctioning the countries where social conditions are\nconsidered as inadequate but it recommends a positive approach by\nencouraging the fixing of international rules within the ILO (in\nthis regard, the Commission regrets that the efforts made by the\nUnion to create a \"social standards\" working group within the WTO,\ncame to nothing. The Commission underlines that the opposition of\nthe developing countries remains strong and that it is not\nrealistic to reach a consensus on the issue). The Commission\nadvocates a five point strategy based on co-operation with the ILO\nand the convincing of its partners (by means of a regime of\nencouragement allowing third countries to obtain complementary\ntrade advantages if they prove that they respect the main ILO\nconventions on work).
\nThe Commission's document also deals with the intellectual property\nrights, public procurement, technical barriers to trade,\nanti-dumping measures and other instruments of trade defence,\nelectronic commerce as well as taking account of the public's\nconcerns which are becoming more and more sensitive to the negative\neffects of the globalisation of work and the environment.
\nThe Commission calls on the Council to reach a position regarding\nits communication and to approve the general guidelines, in such a\nway that allows it (direct consultation with the Committee in\nArticle 133) to prepare, along the lines indicated, for the\nMinisterial Conference in Seattle, which is to take place in\nNovember 1999.
\nThe European Parliament will also be called upon to reach adecision\non the contents of this communication and will be kept informed of\nthe progress on each of the issues throughout the negotiating\nprocess.
\n
\n
The committee adopted the report by Konrad SCHWAIGER (EPP/ED,\nD) on the EU
\n approach to the forthcoming WTO Millenium Round. The report\nendorsed the
\n general negotiating approach outlined by the Commission and looked\nat a
\n number of separate issues such as agriculture, where it expressed\nsupport
\n for CAP reform and endorsed the idea that the precautionary\nprinciple should
\n be explicitly included in the WTO rules so that the EU could\ncontinue its
\n policy of strict food safety standards. On services, the committee\nagreed
\n with the Commission and Council that further liberalisation was\nneeded but
\n also took the view that sectors and services with a specific\nsocial mandate,
\n such as health and education, should be dealt with not in the\ncontext of the
\n revision of the GATS agreement but exclusively in a framework laid\ndown by
\n the state concerned. The report also called for electronic\ncommerce to be
\n incorporated into the GATS agreement. The committee welcomed the\nidea of
\n creating a multilateral legal framework for direct foreign\ninvestment and
\n highlighted the need for continued reductions of tariffs on\nindustrial
\n products. It regretted that the work of the WTO in the area of\nthe
\n environment had so far failed to produce any tangible results, and\ncalled on
\n the Commission to ensure that the question of processes and\nproduction
\n methods was included in the negotiations. Particular attention\nshould also
\n be paid to transport-related environmental damage. On development,\nthe
\n committee recognised the need for developing countries to be given\nimproved
\n access to markets and called on the Commission to pay particular\nattention
\n to development policy in all negotiating areas under the Millenium\nRound.
\n Other points raised in the report included a call for the ILO's\ncore labour
\n standards to be incorporated into the WTO and the need for\ngreater
\n transparency and openness in the WTO's dispute settlement\nprocedures.
\n Lastly, the committee wanted to see Parliament kept fully informed\nof
\n progress in the negotiations.
\n
\n
\n
In adopting the report drafted by Mr. SCHWAIGER (EPP/ED, D) by\n359 votes for, 62 against, and 57 abstentions, the Parliament\nsought to ensure that the Commission does not give its consent to a\nlimited negotiating agenda which does not refer to the need for a\nbroad negotiating round.
\nIt calls on the Council to consult Parliament prior to the\nconclusion of the agreements, whether they take the form of\nsectoral agreements or a single undertaking. It calls for changes\nto the Treaty at the next IGC to give a formal role to the European\nParliament during the course of the WTO negotiations and to any WTO\nagreement automatically subject to Parliament's assent.
\nApproach to the negotiations:
\nThe Parliament welcomes the Commission and Council proposal\nregarding a comprehensive trade round which would cover both the\nusual themes and new subjects and endorses the general approach to\nthe negotiations for the Millenium Round.
\nThe Parliament agrees that the proposed fields for negotiation\nshould be seen as a complete package, but does not consider that\nthe negotiations should be limited to three years, as the\nCommission and the Council proposed.
\nIt also considers that the Millennium Round should not simply deal\nwith the extension of world commercial exchanges but also with the\nimprovement of the situation of developing countries and pay\ngreater attention to the environment, public health and animal\nwelfare.
\nAgriculture:
\nThe EP believes that European farming must continue to participate\nin and benefit from international trade, without undermining the\nfounding principles of the common agricultural policy. The Union\nshould base itself on the decisions taken in Berlin regarding the\nreform of the CAP (Agenda 2000 package) and the precautionary\nprinciple should be explicitly mentioned in the WTO's rules. The\nUnion's general objective should be to secure the European\nagricultural model based on family farms and characterised by\nmultifunctionality, sustainable production of agricultural goods\nand management of the environment and preservation of the\ncountryside.
\nIt points to the desire of the developing countries for free market\naccess for agricultural products and believes that the EU should\nensure that WTO rules relating to the agricultural sector do not\nhave an adverse effect on the economies of developing countries and\nthat security of food supply should be considered as a\nmultifunctional aspect of agriculture.
\nThe Parliament calls urgently during the revision of the agreement\non sanitary and phytosanitary measures (SPS) for food safety policy\nto be based on the precautionary principle, so as to enable the EU\nto continue to pursue its policy of a high level of food safety and\nconsumer and environment protection. In addition, it notes that the\ndefinition of the precautionary principle as adopted at the\nConference on the Environment and Development in Rio could become\nan internationally accepted model and calls for the recognition of\nthis definition within the WTO. In the framework of the SPS and TBT\n(Technical Barriers to Trade) Agreements, the Ep calls for levels\nof acceptable risk to be subject to internationally agreed\nguidelines. For the Parliament,labelling is not a solution in\ndisputes concerning food safety, even if it improves consumers'\nfreedom of choice and contributes towards preventing trade\ndisputes.
\nLastly, in the fishing sector, the Parliament wants the\nliberalisation of trade to take account of the existing legal\nframework, in particular the United Nations International\nConvention on the Law of the Sea and the objectives of\ninternational agreements on environmental preservation and natural\nresource management. It calls for a list of sensitive products to\nbe drawn up in order to ensure that the international fishery\nindustry complies with the principles governing responsible fishing\nmethods.
\nServices (GATS Agreement):
\nFor the Parliament, the negotiations should be comprehensive and\nbring about a deeper and broader package of improved commitments\nfrom all WTO members to market access and national treatment. The\nnegotiations should also focus on unfinished discussions on\nspecific issues (safeguards, subsidies, government procurement). In\naddition, progress towards further liberalisation should be made\ncontingent on the ability of the contracting parties to regulate\naccess to public services in order to guarantee universal coverage.\nIt urges that sectors and services with a specific social mandate,\nsuch as health, education and cultural policy, should be dealt with\nexclusively in a framework laid down by the state concerned and\ncalls on the EU to ensure that these sectors are not dealt with in\nthe context of the revision of the GATS Agreement.
\nWith respect to cultural services, and in particular the\naudiovisual sector, the Parliament takes the view that the GATS\nrules on cultural services should not jeopardise the cultural\ndiversity and autonomy of the WTO contracting parties. It reaffirms\nits commitment to the freedom of action in the sphere of\naudiovisual policy obtained at the Uruguay Round.
\nOn the subject of public procurement, the Parliament takes the view\nthat the substance of the Uruguay Round decisions on liberalisation\nmust above all be consolidated and that, in addition, principles\nsuch as transparency, reciprocity and national treatment must be\napplied. It agrees that the provisions of the GATS Agreement should\napply to electronic commerce.
\nInvestments and competition policy:
\nThe Parliament calls for the establishment, under the auspices of\nthe WTO, of a multilateral legal framework governing direct foreign\ninvestment which takes account, on the one hand, of the interests\nof the developing countries in a manner acceptable to them and, on\nthe other, of the Member States' social, environmental and cultural\nlaws, and urges that the same problems should not arise as those\ncreated by the MAI, which had been prepared by the OECD. It\nproposes that the ILO's Declaration of Principles on Multinational\nEnterprises and Social Policy, the OECD's Guidelines for\nMultinational Enterprises and the Principles of Corporate\nGovernance should be incorporated into the draft WTO Agreement on\ninvestment.
\nIn regard to competition, it calls for the establishment of uniform\nminimum standards for the prevention of anti-competitive practices\n(such as cartels), as well as the establishment of independent\ncompetition authorities in allWTO member states to enforce minimum\ncompetition law standards; steps must be taken to ensure that a\nsituation does not arise in which companies would have to comply\nwith differing national interpretations of competition law.
\nTariffs and technical barriers to trade:
\nThe EP calls for a further reduction in duty on industrial products\nand for the abolition of tariff peaks and tariff escallation, which\nis particularly disadvantageous to developing countries. It asks\nthat procedures and rules in the field of customs and product\ncertification be simplified for SMEs.
\nIt emphasises the need to dismantle existing non-tariff and\ntechnical barriers by means of an appropriate and legally binding\nprocess for monitoring and resolving such issues. It considers that\nthe negotiations on tariff and non-tariff barriers must succeed in\nestablishing conditions governing market access which enable\nEuropean industry to compete on fair terms on a global basis, in\nparticular in those sectors where differences in the conditions\ngoverning market access serve to distort competition.
\nTrade and the environment:
\nThe EP regards it as essential to ensure the compatibility of trade\npolicy rules with the requirements of sustainable development. The\nprinciple of environmental protection has to be taken into account\nin all the fields falling within the WTO's competence and in the\nagreements to be negotiated in the Millennium Round. It needs to be\nstated clearly to other Contracting Parties that the Union\nconsiders the health of its citizens at the top of its priorities.\nIt approves of the EU initiative to proceed with an 'impact on\nsustainability assessment' in the new Round and advocates the\nsetting up of a permanent impact assessment programme. For the\nParliament, the precautionary principle has to be a limiting\ncriterion integrated in the WTO's rules.
\nIt is aware that the WTO cannot be a substitute for the conclusion\nof multilateral environmental agreements (MEAs).
\nIt calls on the Commission to ensure that the question of processes\nand production methods (PPMs) is included in the negotiations. As\nthe liberalisation of trade is also likely to have the effect of\nincreasing traffic volumes, particular attention must be paid to\ntransport-related environmental damage.
\nCore labour standards:
\nThe Parliament welcomes the fact that the Commission has taken up\nits call for the ILO's core labour standards to be taken into\nconsideration in the world trade system and supports the creation\nof a joint ILO/WTO Forum on Trade, Globalisation and Labour Issues\nto look at the relationship between trade policy, trade\nliberalisation, development and fundamental labour rights. It\nstresses the importance of granting the ILO observer status within\nthe WTO.
\nIntellectual property (TRIPs Agreement):
\nThe EP considers that the 'built-in agenda' on TRIPs concerning the\nextension of protection on the basis of indication of geographical\norigin and the filing of patents should be followed up and\nscrutinised. It draws attention to the need, in the context of the\nTRIPs Agreement, to improve protection of indications of\ngeographical origin, a vitalcompetitive asset for European\nagricultural products. It takes the view that a cautious approach\nshould be adopted on additional agreements to the TRIPs Agreement,\ntaking into account the concerns and interests of all countries as\nwell as users and rightholders. It is also aware of the objections\nto the patenting of living organisms raised by many countries and\ncalls on the Commission to evaluate the existing TRIPs agreement;\nshould such an evaluation necessitate changes, the Commission\nshould act accordingly.
\nIt is aware of the difficulties faced by many developing countries\nin implementing the undertakings entered into under the TRIPs\nagreement and it calls on the Commission to offer such contracting\nparties comprehensive technical aid in implementing an effective\npolicy on the protection of intellectual property rights which\nrequire the preparation and implementation of effective framework\nconditions. It believes in granting the least developed countries\nlonger transitional periods, but rejects the idea of any\ncomprehensive renegotiation of the agreement.
\nTrade and development:
\nThe Parliament calls for the specific requirements of the least\ndeveloped countries to be better taken into account in the WTO. It\nis vital that these countries achieve practical benefits from the\nMillennium Round, such as free access to markets for their\nagricultural products. It endorses the objective of ensuring that\nthe negotiations are genuinely a 'development round' and calls on\nthe Commission to pay particular attention to development policy in\nall the areas covered by the Millennium Round negotiations. It also\nunderlines the need to assist the developing countries in capacity\nbuilding in order to enable them to participate fully in the WTO\nand the Millennium Round.
\nIt emphasises that different countries must be allowed to have\ndifferent national development strategies which should not be\nhindered by WTO rules. It calls on the Commission to ensure that a\nworthwhile, effective and coherent EU development policy which\nexploits the full scope of the Lomé Convention remains\npossible under the new WTO rules. It calls for the System of\nGeneralised Preferences to be used more effectively as an incentive\nsystem to ensure the necessary implementation of social and\nenvironmental clauses by developing countries and calls on other\nindustrialised countries to adopt similar incentive schemes to\nencourage improved environmental and social standards.
\nDispute settlement procedure:
\nThe Parliament notes that the WTO's new dispute settlement\nprocedure has proved successful in many cases, but that some of its\nrulings have caused a controversy over trade interests and\nnon-trade concerns. It calls on WTO members to make proper use of\nthe mechanism. It also calls for greater transparency in the WTO's\ndispute settlement procedures, particularly as regards public\naccess to the proceedings.
\n
\n
PURPOSE : to present the case in favour of a new comprehensive\nRound of trade negotiations and to define a common negotiating\nframework.
\nCONTENT : The European Community has been at the forefront of\nefforts to launch a Millennium Round of trade negotiations in the\nWTO in 2000. In its conclusions of 30 March, 30 April and 18 May\n1998, and 21 June 1999, the Council unanimously supported such an\naim. Frequent and substantive discussions on several occasions\nwithin the Council's 133 Committee have developed further the\nCommunity's position on the approach to, and possible scope of such\na Round, enabling the EU to continue to exercise leadership in the\nWTO.
\nThis communication sets out the case for a new WTO trade round as\nan important means to improve the European economy, to foster\nglobal economic growth and development, and to ensure the\nsuccessful management of globalisation. It argues that a\ncomprehensive Round offers the best way to take account of the\ntrade interests of the WTO membership as a whole.
\nIn addition, the Communication sets out the possible EU agenda for\nthe Round, for which should, among other things, include further\nliberalisation or rule-making in the fields of agriculture and\nservices, non-agricultural tariffs, investment, competition, trade\nfacilitation, and trade environment. Results in all areas should\nsupport and contribute to sustainable development. The\nCommunication sets out in addition the views of other trading\npartners on the question of a new round, noting that the support\nfor this is growing. It also proposes a detailed agenda to ensure\nthat the needs and interests of developing countries are concretely\nreflected in the negotiations, and suggests an approach to the\nquestion of labour standards and the WTO.
\nThe main guidelines which are proposed can be summed-up as :
\n1) agriculture : some of the principles of the agreement concluded\nin the Uruguay Round should be kept, notably, the defence of the\nmultifunctional role of agriculture, the preservation of human,\nanimal and plant life or health, the relationship between trade and\nthe environment, animal welfare, food safety and food quality and\nother consumer concerns relevant to agriculture. For the\nCommission, the reform of the CAP within the framework of Agenda\n2000 would constitute essential elements in defining its\nnegotiating mandate for the future multilateral negociations at the\nWTO;
\n2) services : the Community should have an ambitious position for\nthe further market opening coupled, where necessary, with\nregulatory disciplines. The aim is to achieve real and meaningful\nliberalisation, and ensure the development of a transparent and\npredictable domestic regulatory environment, justified on the basis\nof specific public policy objectives, which can provide legal\ncertainty and confidence to service suppliers, investors, users and\nconsumers;
\n3) investment : the WTO represents the adopted framework for a\nnegociation in this domaine including the developing countries who\nhave been mostly in the role of host countries.
\nA framework for multilateral rules for investment has to ensure the\nright conditions for international investment to be conducive to\nsustainable development. To this end, such a framework should,\namong other things, preserve the ability ofhost countries to\nregulate the activity of investors (whether foreign or domestic) on\ntheir respective territory, for the achievement of legitimate\npolicy objectives;
\n4) competition : the Commission have come to a firm decision in\nfavour of a strict framework in this regard: the setting of common\nrules relating to competition and the active and effective\nenforcement of these rules, common approaches on anti-competitive\npractices with a significant impact on international trade and\ninvestment, provisions on international co-operation, provisions on\nnotification, consultation and surveillance in relation to\nanticompetitive practices, introduction of concepts of negative and\npositive comity, uniform procedure of regulation of different\nopinions;
\n5) trade facilitation : it is necessary to simplify and harmonise,\nautomate procedures, reduce red tape and documentation, and\nincrease transparency;
\n6) tariffs on non-agricultural products : the Commission calls for\nthe generalised reduction of tariffs on the non-agricultural\nproducts, with an important advantage for the least developed\ncountries which should benefit from early tariff free treatment for\nnearly all of their products from now until 2003;
\n7) trade and environment : trade and environment policies should\nplay a mutually supportive role in favour of sustainable\ndevelopment. The WTO rules should be harmonious with existing and\nfuture multilateral environment agreements (MEAs). It is also\nnecessary to maintain the right of WTO members to take\nprecautionary action to protect human health, safety and the\nenvironment while at the same time avoiding unjustified or\ndisproportionate restrictions;
\n8) trade and core labour standards : the Commission does not\nconsider sanctioning the countries where social conditions are\nconsidered as inadequate but it recommends a positive approach by\nencouraging the fixing of international rules within the ILO (in\nthis regard, the Commission regrets that the efforts made by the\nUnion to create a \"social standards\" working group within the WTO,\ncame to nothing. The Commission underlines that the opposition of\nthe developing countries remains strong and that it is not\nrealistic to reach a consensus on the issue). The Commission\nadvocates a five point strategy based on co-operation with the ILO\nand the convincing of its partners (by means of a regime of\nencouragement allowing third countries to obtain complementary\ntrade advantages if they prove that they respect the main ILO\nconventions on work).
\nThe Commission's document also deals with the intellectual property\nrights, public procurement, technical barriers to trade,\nanti-dumping measures and other instruments of trade defence,\nelectronic commerce as well as taking account of the public's\nconcerns which are becoming more and more sensitive to the negative\neffects of the globalisation of work and the environment.
\nThe Commission calls on the Council to reach a position regarding\nits communication and to approve the general guidelines, in such a\nway that allows it (direct consultation with the Committee in\nArticle 133) to prepare, along the lines indicated, for the\nMinisterial Conference in Seattle, which is to take place in\nNovember 1999.
\nThe European Parliament will also be called upon to reach adecision\non the contents of this communication and will be kept informed of\nthe progress on each of the issues throughout the negotiating\nprocess.
\n
\n
PURPOSE : to present the case in favour of a new comprehensive\nRound of trade negotiations and to define a common negotiating\nframework.
\nCONTENT : The European Community has been at the forefront of\nefforts to launch a Millennium Round of trade negotiations in the\nWTO in 2000. In its conclusions of 30 March, 30 April and 18 May\n1998, and 21 June 1999, the Council unanimously supported such an\naim. Frequent and substantive discussions on several occasions\nwithin the Council's 133 Committee have developed further the\nCommunity's position on the approach to, and possible scope of such\na Round, enabling the EU to continue to exercise leadership in the\nWTO.
\nThis communication sets out the case for a new WTO trade round as\nan important means to improve the European economy, to foster\nglobal economic growth and development, and to ensure the\nsuccessful management of globalisation. It argues that a\ncomprehensive Round offers the best way to take account of the\ntrade interests of the WTO membership as a whole.
\nIn addition, the Communication sets out the possible EU agenda for\nthe Round, for which should, among other things, include further\nliberalisation or rule-making in the fields of agriculture and\nservices, non-agricultural tariffs, investment, competition, trade\nfacilitation, and trade environment. Results in all areas should\nsupport and contribute to sustainable development. The\nCommunication sets out in addition the views of other trading\npartners on the question of a new round, noting that the support\nfor this is growing. It also proposes a detailed agenda to ensure\nthat the needs and interests of developing countries are concretely\nreflected in the negotiations, and suggests an approach to the\nquestion of labour standards and the WTO.
\nThe main guidelines which are proposed can be summed-up as :
\n1) agriculture : some of the principles of the agreement concluded\nin the Uruguay Round should be kept, notably, the defence of the\nmultifunctional role of agriculture, the preservation of human,\nanimal and plant life or health, the relationship between trade and\nthe environment, animal welfare, food safety and food quality and\nother consumer concerns relevant to agriculture. For the\nCommission, the reform of the CAP within the framework of Agenda\n2000 would constitute essential elements in defining its\nnegotiating mandate for the future multilateral negociations at the\nWTO;
\n2) services : the Community should have an ambitious position for\nthe further market opening coupled, where necessary, with\nregulatory disciplines. The aim is to achieve real and meaningful\nliberalisation, and ensure the development of a transparent and\npredictable domestic regulatory environment, justified on the basis\nof specific public policy objectives, which can provide legal\ncertainty and confidence to service suppliers, investors, users and\nconsumers;
\n3) investment : the WTO represents the adopted framework for a\nnegociation in this domaine including the developing countries who\nhave been mostly in the role of host countries.
\nA framework for multilateral rules for investment has to ensure the\nright conditions for international investment to be conducive to\nsustainable development. To this end, such a framework should,\namong other things, preserve the ability ofhost countries to\nregulate the activity of investors (whether foreign or domestic) on\ntheir respective territory, for the achievement of legitimate\npolicy objectives;
\n4) competition : the Commission have come to a firm decision in\nfavour of a strict framework in this regard: the setting of common\nrules relating to competition and the active and effective\nenforcement of these rules, common approaches on anti-competitive\npractices with a significant impact on international trade and\ninvestment, provisions on international co-operation, provisions on\nnotification, consultation and surveillance in relation to\nanticompetitive practices, introduction of concepts of negative and\npositive comity, uniform procedure of regulation of different\nopinions;
\n5) trade facilitation : it is necessary to simplify and harmonise,\nautomate procedures, reduce red tape and documentation, and\nincrease transparency;
\n6) tariffs on non-agricultural products : the Commission calls for\nthe generalised reduction of tariffs on the non-agricultural\nproducts, with an important advantage for the least developed\ncountries which should benefit from early tariff free treatment for\nnearly all of their products from now until 2003;
\n7) trade and environment : trade and environment policies should\nplay a mutually supportive role in favour of sustainable\ndevelopment. The WTO rules should be harmonious with existing and\nfuture multilateral environment agreements (MEAs). It is also\nnecessary to maintain the right of WTO members to take\nprecautionary action to protect human health, safety and the\nenvironment while at the same time avoiding unjustified or\ndisproportionate restrictions;
\n8) trade and core labour standards : the Commission does not\nconsider sanctioning the countries where social conditions are\nconsidered as inadequate but it recommends a positive approach by\nencouraging the fixing of international rules within the ILO (in\nthis regard, the Commission regrets that the efforts made by the\nUnion to create a \"social standards\" working group within the WTO,\ncame to nothing. The Commission underlines that the opposition of\nthe developing countries remains strong and that it is not\nrealistic to reach a consensus on the issue). The Commission\nadvocates a five point strategy based on co-operation with the ILO\nand the convincing of its partners (by means of a regime of\nencouragement allowing third countries to obtain complementary\ntrade advantages if they prove that they respect the main ILO\nconventions on work).
\nThe Commission's document also deals with the intellectual property\nrights, public procurement, technical barriers to trade,\nanti-dumping measures and other instruments of trade defence,\nelectronic commerce as well as taking account of the public's\nconcerns which are becoming more and more sensitive to the negative\neffects of the globalisation of work and the environment.
\nThe Commission calls on the Council to reach a position regarding\nits communication and to approve the general guidelines, in such a\nway that allows it (direct consultation with the Committee in\nArticle 133) to prepare, along the lines indicated, for the\nMinisterial Conference in Seattle, which is to take place in\nNovember 1999.
\nThe European Parliament will also be called upon to reach adecision\non the contents of this communication and will be kept informed of\nthe progress on each of the issues throughout the negotiating\nprocess.
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The committee adopted the report by Konrad SCHWAIGER (EPP/ED,\nD) on the EU
\n approach to the forthcoming WTO Millenium Round. The report\nendorsed the
\n general negotiating approach outlined by the Commission and looked\nat a
\n number of separate issues such as agriculture, where it expressed\nsupport
\n for CAP reform and endorsed the idea that the precautionary\nprinciple should
\n be explicitly included in the WTO rules so that the EU could\ncontinue its
\n policy of strict food safety standards. On services, the committee\nagreed
\n with the Commission and Council that further liberalisation was\nneeded but
\n also took the view that sectors and services with a specific\nsocial mandate,
\n such as health and education, should be dealt with not in the\ncontext of the
\n revision of the GATS agreement but exclusively in a framework laid\ndown by
\n the state concerned. The report also called for electronic\ncommerce to be
\n incorporated into the GATS agreement. The committee welcomed the\nidea of
\n creating a multilateral legal framework for direct foreign\ninvestment and
\n highlighted the need for continued reductions of tariffs on\nindustrial
\n products. It regretted that the work of the WTO in the area of\nthe
\n environment had so far failed to produce any tangible results, and\ncalled on
\n the Commission to ensure that the question of processes and\nproduction
\n methods was included in the negotiations. Particular attention\nshould also
\n be paid to transport-related environmental damage. On development,\nthe
\n committee recognised the need for developing countries to be given\nimproved
\n access to markets and called on the Commission to pay particular\nattention
\n to development policy in all negotiating areas under the Millenium\nRound.
\n Other points raised in the report included a call for the ILO's\ncore labour
\n standards to be incorporated into the WTO and the need for\ngreater
\n transparency and openness in the WTO's dispute settlement\nprocedures.
\n Lastly, the committee wanted to see Parliament kept fully informed\nof
\n progress in the negotiations.
\n
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In adopting the report drafted by Mr. SCHWAIGER (EPP/ED, D) by\n359 votes for, 62 against, and 57 abstentions, the Parliament\nsought to ensure that the Commission does not give its consent to a\nlimited negotiating agenda which does not refer to the need for a\nbroad negotiating round.
\nIt calls on the Council to consult Parliament prior to the\nconclusion of the agreements, whether they take the form of\nsectoral agreements or a single undertaking. It calls for changes\nto the Treaty at the next IGC to give a formal role to the European\nParliament during the course of the WTO negotiations and to any WTO\nagreement automatically subject to Parliament's assent.
\nApproach to the negotiations:
\nThe Parliament welcomes the Commission and Council proposal\nregarding a comprehensive trade round which would cover both the\nusual themes and new subjects and endorses the general approach to\nthe negotiations for the Millenium Round.
\nThe Parliament agrees that the proposed fields for negotiation\nshould be seen as a complete package, but does not consider that\nthe negotiations should be limited to three years, as the\nCommission and the Council proposed.
\nIt also considers that the Millennium Round should not simply deal\nwith the extension of world commercial exchanges but also with the\nimprovement of the situation of developing countries and pay\ngreater attention to the environment, public health and animal\nwelfare.
\nAgriculture:
\nThe EP believes that European farming must continue to participate\nin and benefit from international trade, without undermining the\nfounding principles of the common agricultural policy. The Union\nshould base itself on the decisions taken in Berlin regarding the\nreform of the CAP (Agenda 2000 package) and the precautionary\nprinciple should be explicitly mentioned in the WTO's rules. The\nUnion's general objective should be to secure the European\nagricultural model based on family farms and characterised by\nmultifunctionality, sustainable production of agricultural goods\nand management of the environment and preservation of the\ncountryside.
\nIt points to the desire of the developing countries for free market\naccess for agricultural products and believes that the EU should\nensure that WTO rules relating to the agricultural sector do not\nhave an adverse effect on the economies of developing countries and\nthat security of food supply should be considered as a\nmultifunctional aspect of agriculture.
\nThe Parliament calls urgently during the revision of the agreement\non sanitary and phytosanitary measures (SPS) for food safety policy\nto be based on the precautionary principle, so as to enable the EU\nto continue to pursue its policy of a high level of food safety and\nconsumer and environment protection. In addition, it notes that the\ndefinition of the precautionary principle as adopted at the\nConference on the Environment and Development in Rio could become\nan internationally accepted model and calls for the recognition of\nthis definition within the WTO. In the framework of the SPS and TBT\n(Technical Barriers to Trade) Agreements, the Ep calls for levels\nof acceptable risk to be subject to internationally agreed\nguidelines. For the Parliament,labelling is not a solution in\ndisputes concerning food safety, even if it improves consumers'\nfreedom of choice and contributes towards preventing trade\ndisputes.
\nLastly, in the fishing sector, the Parliament wants the\nliberalisation of trade to take account of the existing legal\nframework, in particular the United Nations International\nConvention on the Law of the Sea and the objectives of\ninternational agreements on environmental preservation and natural\nresource management. It calls for a list of sensitive products to\nbe drawn up in order to ensure that the international fishery\nindustry complies with the principles governing responsible fishing\nmethods.
\nServices (GATS Agreement):
\nFor the Parliament, the negotiations should be comprehensive and\nbring about a deeper and broader package of improved commitments\nfrom all WTO members to market access and national treatment. The\nnegotiations should also focus on unfinished discussions on\nspecific issues (safeguards, subsidies, government procurement). In\naddition, progress towards further liberalisation should be made\ncontingent on the ability of the contracting parties to regulate\naccess to public services in order to guarantee universal coverage.\nIt urges that sectors and services with a specific social mandate,\nsuch as health, education and cultural policy, should be dealt with\nexclusively in a framework laid down by the state concerned and\ncalls on the EU to ensure that these sectors are not dealt with in\nthe context of the revision of the GATS Agreement.
\nWith respect to cultural services, and in particular the\naudiovisual sector, the Parliament takes the view that the GATS\nrules on cultural services should not jeopardise the cultural\ndiversity and autonomy of the WTO contracting parties. It reaffirms\nits commitment to the freedom of action in the sphere of\naudiovisual policy obtained at the Uruguay Round.
\nOn the subject of public procurement, the Parliament takes the view\nthat the substance of the Uruguay Round decisions on liberalisation\nmust above all be consolidated and that, in addition, principles\nsuch as transparency, reciprocity and national treatment must be\napplied. It agrees that the provisions of the GATS Agreement should\napply to electronic commerce.
\nInvestments and competition policy:
\nThe Parliament calls for the establishment, under the auspices of\nthe WTO, of a multilateral legal framework governing direct foreign\ninvestment which takes account, on the one hand, of the interests\nof the developing countries in a manner acceptable to them and, on\nthe other, of the Member States' social, environmental and cultural\nlaws, and urges that the same problems should not arise as those\ncreated by the MAI, which had been prepared by the OECD. It\nproposes that the ILO's Declaration of Principles on Multinational\nEnterprises and Social Policy, the OECD's Guidelines for\nMultinational Enterprises and the Principles of Corporate\nGovernance should be incorporated into the draft WTO Agreement on\ninvestment.
\nIn regard to competition, it calls for the establishment of uniform\nminimum standards for the prevention of anti-competitive practices\n(such as cartels), as well as the establishment of independent\ncompetition authorities in allWTO member states to enforce minimum\ncompetition law standards; steps must be taken to ensure that a\nsituation does not arise in which companies would have to comply\nwith differing national interpretations of competition law.
\nTariffs and technical barriers to trade:
\nThe EP calls for a further reduction in duty on industrial products\nand for the abolition of tariff peaks and tariff escallation, which\nis particularly disadvantageous to developing countries. It asks\nthat procedures and rules in the field of customs and product\ncertification be simplified for SMEs.
\nIt emphasises the need to dismantle existing non-tariff and\ntechnical barriers by means of an appropriate and legally binding\nprocess for monitoring and resolving such issues. It considers that\nthe negotiations on tariff and non-tariff barriers must succeed in\nestablishing conditions governing market access which enable\nEuropean industry to compete on fair terms on a global basis, in\nparticular in those sectors where differences in the conditions\ngoverning market access serve to distort competition.
\nTrade and the environment:
\nThe EP regards it as essential to ensure the compatibility of trade\npolicy rules with the requirements of sustainable development. The\nprinciple of environmental protection has to be taken into account\nin all the fields falling within the WTO's competence and in the\nagreements to be negotiated in the Millennium Round. It needs to be\nstated clearly to other Contracting Parties that the Union\nconsiders the health of its citizens at the top of its priorities.\nIt approves of the EU initiative to proceed with an 'impact on\nsustainability assessment' in the new Round and advocates the\nsetting up of a permanent impact assessment programme. For the\nParliament, the precautionary principle has to be a limiting\ncriterion integrated in the WTO's rules.
\nIt is aware that the WTO cannot be a substitute for the conclusion\nof multilateral environmental agreements (MEAs).
\nIt calls on the Commission to ensure that the question of processes\nand production methods (PPMs) is included in the negotiations. As\nthe liberalisation of trade is also likely to have the effect of\nincreasing traffic volumes, particular attention must be paid to\ntransport-related environmental damage.
\nCore labour standards:
\nThe Parliament welcomes the fact that the Commission has taken up\nits call for the ILO's core labour standards to be taken into\nconsideration in the world trade system and supports the creation\nof a joint ILO/WTO Forum on Trade, Globalisation and Labour Issues\nto look at the relationship between trade policy, trade\nliberalisation, development and fundamental labour rights. It\nstresses the importance of granting the ILO observer status within\nthe WTO.
\nIntellectual property (TRIPs Agreement):
\nThe EP considers that the 'built-in agenda' on TRIPs concerning the\nextension of protection on the basis of indication of geographical\norigin and the filing of patents should be followed up and\nscrutinised. It draws attention to the need, in the context of the\nTRIPs Agreement, to improve protection of indications of\ngeographical origin, a vitalcompetitive asset for European\nagricultural products. It takes the view that a cautious approach\nshould be adopted on additional agreements to the TRIPs Agreement,\ntaking into account the concerns and interests of all countries as\nwell as users and rightholders. It is also aware of the objections\nto the patenting of living organisms raised by many countries and\ncalls on the Commission to evaluate the existing TRIPs agreement;\nshould such an evaluation necessitate changes, the Commission\nshould act accordingly.
\nIt is aware of the difficulties faced by many developing countries\nin implementing the undertakings entered into under the TRIPs\nagreement and it calls on the Commission to offer such contracting\nparties comprehensive technical aid in implementing an effective\npolicy on the protection of intellectual property rights which\nrequire the preparation and implementation of effective framework\nconditions. It believes in granting the least developed countries\nlonger transitional periods, but rejects the idea of any\ncomprehensive renegotiation of the agreement.
\nTrade and development:
\nThe Parliament calls for the specific requirements of the least\ndeveloped countries to be better taken into account in the WTO. It\nis vital that these countries achieve practical benefits from the\nMillennium Round, such as free access to markets for their\nagricultural products. It endorses the objective of ensuring that\nthe negotiations are genuinely a 'development round' and calls on\nthe Commission to pay particular attention to development policy in\nall the areas covered by the Millennium Round negotiations. It also\nunderlines the need to assist the developing countries in capacity\nbuilding in order to enable them to participate fully in the WTO\nand the Millennium Round.
\nIt emphasises that different countries must be allowed to have\ndifferent national development strategies which should not be\nhindered by WTO rules. It calls on the Commission to ensure that a\nworthwhile, effective and coherent EU development policy which\nexploits the full scope of the Lomé Convention remains\npossible under the new WTO rules. It calls for the System of\nGeneralised Preferences to be used more effectively as an incentive\nsystem to ensure the necessary implementation of social and\nenvironmental clauses by developing countries and calls on other\nindustrialised countries to adopt similar incentive schemes to\nencourage improved environmental and social standards.
\nDispute settlement procedure:
\nThe Parliament notes that the WTO's new dispute settlement\nprocedure has proved successful in many cases, but that some of its\nrulings have caused a controversy over trade interests and\nnon-trade concerns. It calls on WTO members to make proper use of\nthe mechanism. It also calls for greater transparency in the WTO's\ndispute settlement procedures, particularly as regards public\naccess to the proceedings.
\n