Case: Policy coherence in general

28-11-2011 INTA adopts report on Trade and Investment Barriers

The committee on international trade (INTA) of the European Parliament has adopted a report on Trade and Investment Barriers, drafted by rapporteur Robert Sturdy (EPP). The main point made in the report is that removing or reducing non tariff barriers (NTBs) should be one of the key regulatory priorities of the new EU trade policy under the Europe 2020 strategy. Although in the draft report there is not much attention paid to development, several amendments have been written that take development into account.

Fair Politics selected the following amendments, of the in total 64 amendments to the report, as contributing to a fair policy and Policy Coherence for Development (PCD). First of all, Kader Arif (S&D) and Marielle De Sarnez (ALDE) proposed amendment (37) to emphasize that priority should be given to aid for trade and to technical and financial assistance in order to help those countries improve their regulatory environment while taking into account their needs of developing their internal markets and protecting their embryonic industries and agriculture structures. Another amendment written by Kader Arif (42) states that European Intellectual Property Rights (IPR) policy should remain within the TRIPS agreement obligations and respect the 2001 Doha Declaration on the TRIPS agreement and Public Health, in order to leave the developing countries policy space to address public interest concerns. In two other amendments (38, 43), Arif addresses the fact that export taxes and export restrictions can be a tool to support development objectives in developing countries and therefore should not be banned. Also Yannick Jadot (Greens/EFA) points this out, but added that export taxes should not be seen as a NTB.

On the report a DEVE opinion was written by rapporteur Judith Sargentini (Greens/EFA). The opinion addresses among other things the need of developing countries to break away from commodity dependence, the importance of export taxes to pursue the development goals, and calls on the EU to respect TRIPS flexibilities, in particular those relating to public health and access to medicines. Out of the 33 amendments that were written on this opinion, Fair Politics selected five amendments in which PCD is promoted. Birgit Schnieber-Jastram (EPP) wrote two amendments (3, 22), in which she evokes the obligation towards PCD as laid down in Article 208 of the Lisbon Treaty and points out that EU trade negotiations should contribute to improving the livelihoods of marginalised producers and workers in developing countries. Judith Sargentini and Catherine Grèze (Greens/EFA) together wrote three amendments (8, 18, 33). Amendment 8 addresses the indispensability of water and land access for reducing hunger and poverty and the need for the EU to design its trade policy in such a way that it promotes equitable and sustainable use of natural resources. In amendment 18, they point out that export taxes are permitted under WTO regulations, and as the low income developing countries are rather dependent on trade taxes the EU should respect their right to use export taxes in their public interest. Finally, amendment 33 urges the EU to respect fully the special and differential treatment granted to developing countries with regard to public procurement.

Fair Politics welcomes the amendments on the INTA report, and the DEVE opinion and as it promotes to a large extent the development policy and objectives of the EU. We are very happy to see that many of the amendments were adopted. Particularly the report has been turned into a highly development supportive resolution on trade and investment barriers. Fair Politics grants Kader Arif (S&D) four points for his amendments to the INTA report, and Marielle De Sarnez (ALDE) and Yannick Jadot (Greens/EFA) both one point for their amendments. Judith Sargentini (Greens/EFA) gets two points for writing the draft opinion. Together with Catherine Grèze (Greens/EFA) she gets another three points for their amendments. Birgit Schnieber-Jastram (EPP) gets a total of two points for her amendments to the DEVE opinion.

Monitor fair: ALDE, S&D(4), Greens/EFA(6), EPP(2)

Amendments to INTA report on trade and investment barriers

Amendment 37
Kader Arif, Marielle De Sarnez
Motion for a resolution
Paragraph 4
Motion for a resolution
4. Calls on the Commission to address these widespread and persistent issues in all plurilateral and bilateral trade agreements, especially Free Trade Agreements (FTAs), and to ensure that NTBs are given at least as much attention as is currently afforded tariff elimination, particularly in its negotiations with industrialised and emerging economies;

Amendment
4. Calls on the Commission to address these widespread and persistent issues in all plurilateral and bilateral trade agreements, especially Free Trade Agreements (FTAs), and to ensure that NTBs are given at least as much attention as is currently afforded tariff elimination, particularly in its negotiations with industrialised and emerging economies;
emphasises that, in the field of cooperation with developing countries, priority must be accorded to aid for trade and to technical and financial assistance, to help such countries improve their regulatory environment while taking account of their specific needs in terms of developing their internal markets and protecting their embryonic industries and their agricultural structures, which in many cases are vulnerable;

Amendment 38
Kader Arif
Motion for a resolution
Paragraph 4 a (new)
Motion for a resolution
Amendment
4a. Considers that, with regard to raw materials, the Commission should pursue a sustainable, comprehensive and crosspolicy strategy, while recognising that export restrictions and export taxes may be seen as important for the support of development objectives, the protection of the environment or the sustainable exploitation of natural resources in poorer developing countries such as LDCs and SIDs;

Amendment 42
Kader Arif
Motion for a resolution
Paragraph 5 a (new)
Motion for a resolution
Amendment
5a. Reminds the Commission that European IPR policy towards developing countries should remain within the TRIPS agreement obligations and must fully respect the 2001 Doha Declaration on the TRIPS agreement and Public Health, especially in the field of generic medicines and public health, so as to leave the developing countries policy
space to address public interest concerns;

Amendment 43
Kader Arif
Motion for a resolution
Paragraph 5 b (new)
Motion for a resolution
Amendment
5b. Points out that export taxes are one of the few remaining trade policy tools at the
disposal of developing countries with which to pursue development goals; calls on the EU to refrain from attempting to ban the use of export taxes at the WTO and in bilateral trade agreements and Economic Partnership Agreements (EPAs), as it would limit their policy space to use this tool for value-addition, diversification, infant industry protection,
food security, revenue and environmental considerations;

Amendment 59
Yannick Jadot
Motion for a resolution
Paragraph 10 a (new)
Motion for a resolution
Amendment
10a. Points out that export taxes should not be considered as a NTB; regards export taxes as a trade policy tool at the disposal of developing countries which can be used to pursue development goals; in particular, underlines that export taxes are permitted under the WTO rules, and that the majority of WTO members using export taxes are developing and least developed countries; therefore, urges the EU to refrain from attempting to ban the use of export taxes for Least Developed Countries at the WTO and in bilateral trade agreements and Economic Partnership Agreements (EPAs), as it would limit their policy space to use this tool for value-addition, diversification, infant industry protection, food security, revenue and environmental considerations;

Amendments to DEVE opinion (Judith Sargentini)

Amendment 3
Birgit Schnieber-Jastram
Draft opinion
Paragraph 1
Draft opinion
1. Notes that the Commission is pushing for a comprehensive investment liberalisation framework with the aim of achieving maximum protection for EU investors; recalls that it is vital that investment treaties provide a better balance between the rights and obligations of investors and host governments; urges the EU not to ban the use of performance requirements (local content, technology transfer, environment sustainability, etc.) as they are often prerequisites to ensure that foreign investment benefits the domestic market;

Amendment
1. Notes that the Commission is pushing for a comprehensive investment liberalisation framework with the aim of achieving maximum protection for EU investors; evokes the responsibility for policy coherence for development as laid down in Article 208 TFEU and recalls that it is vital that investment treaties provide a better balance between the rights and obligations of investors and host governments; urges the EU not to ban the use of performance requirements (local content, technology transfer, environment sustainability, etc.) as they are often prereq