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CETA implementation: SMEs and regions in focus

18-11-2019

The majority of provisions of the EU-Canada Comprehensive Comprehensive Economic and Trade Agreement (CETA) have been implemented since 21 September 2017, with the agreement’s provisional application pending full ratification. The aim of this EPRS analysis is to chart the state of play of CETA's ratification procedures, its key objectives, remaining controversies, and the initial results stemming from two years of provisional application, with a focus on regions and small and medium-sized enterprises ...

The majority of provisions of the EU-Canada Comprehensive Comprehensive Economic and Trade Agreement (CETA) have been implemented since 21 September 2017, with the agreement’s provisional application pending full ratification. The aim of this EPRS analysis is to chart the state of play of CETA's ratification procedures, its key objectives, remaining controversies, and the initial results stemming from two years of provisional application, with a focus on regions and small and medium-sized enterprises (SMEs). It is important to note that it is too early to evaluate the economic and social impacts of CETA. That will be the remit of the ex-post evaluation usually carried out by the European Commission five years after the start of provisonal application. By providing an overview of the early results of CETA implementation two years in, this analysis seeks to inform forthcoming deliberations on both CETA itself and other free trade agreements between the EU and various partner countries.

EU trade policy: Frequently asked questions

15-10-2019

This paper seeks to serve as a key resource for policy-makers who need to understand complex issues related to international trade quickly. It also outlines the key academic debates and issues, and provides references to further resources that could offer useful support to the work of policy-makers in the European Parliament. It seeks to provide immediate answers to the most commonly asked questions related to EU trade policy: from the evolution and scope of EU common commercial policy to the role ...

This paper seeks to serve as a key resource for policy-makers who need to understand complex issues related to international trade quickly. It also outlines the key academic debates and issues, and provides references to further resources that could offer useful support to the work of policy-makers in the European Parliament. It seeks to provide immediate answers to the most commonly asked questions related to EU trade policy: from the evolution and scope of EU common commercial policy to the role of different EU institutions and the economics of trade. It includes explanations of key trade concepts. In addition, the paper covers the procedures for the conclusion of international trade agreements, types of trade relationship, and the specific characteristics of EU legal instruments in the area of trade. Lastly, it addresses the issues of trade and sustainable development, which have grown into a key area of concern for Parliament.

Using trade policy to tackle climate change

08-10-2019

The recent forest fires in the Amazon highlight the need for greater measures worldwide to attenuate tensions between resource needs, for example mining or grazing, that cause deforestation. European leaders have called for urgent action, including through trade policy. Policy-makers argue, for instance, for leveraging the negotiated European Union (EU)-Mercosur Trade Agreement to achieve compliance with the Paris Agreement. Since the Paris Agreement is binding only in part and aspirational concerning ...

The recent forest fires in the Amazon highlight the need for greater measures worldwide to attenuate tensions between resource needs, for example mining or grazing, that cause deforestation. European leaders have called for urgent action, including through trade policy. Policy-makers argue, for instance, for leveraging the negotiated European Union (EU)-Mercosur Trade Agreement to achieve compliance with the Paris Agreement. Since the Paris Agreement is binding only in part and aspirational concerning national emissions targets, there are calls to resort to trade policy instead.

EU policies – Delivering for citizens: International trade and globalisation

28-06-2019

The European Community was founded on the belief that economic integration leads to peace and economic prosperity. Trade is therefore a fundamental part of the identity of the European Union (EU) today. Given the success of the internal market in fostering the longest period of European peace in modern history, the EU considers itself an example of the benefits of trade, globalisation and economic openness. International trade policy is an exclusive competence of the EU, and with the combined economic ...

The European Community was founded on the belief that economic integration leads to peace and economic prosperity. Trade is therefore a fundamental part of the identity of the European Union (EU) today. Given the success of the internal market in fostering the longest period of European peace in modern history, the EU considers itself an example of the benefits of trade, globalisation and economic openness. International trade policy is an exclusive competence of the EU, and with the combined economic weight of its Member States behind it, the EU is one of the key players in global trade. Yet trade policy is about more than stability and growth for the EU, as it is also used to encourage poor countries to develop, foster international alliances and support fundamental values in the world. A strong partner in the World Trade Organization (WTO), the EU backs an international trading system based on rules rather than might. The benefits of globalisation and international trade have nevertheless been questioned in recent years, including within the EU. This has led it to reinvigorate its trade policy, in particular by presenting a new trade strategy and a reflection paper on harnessing globalisation. The EU's new 'trade for all' strategy addresses criticisms and focuses on making its trade policy more effective, transparent and value-based. In line with this strategy, the EU has pursued ongoing trade negotiations with renewed vigour and launched new trade and investment talks, resulting in state-of-the-art agreements with countries such as Canada and Japan. The EU faces uncertain times due to major shifts in international trade, coming from both the West and the East. In response, it seeks to promote economic openness, standing up for its values and protecting its interests. For example, the EU has retaliated against United States (US) steel tariffs and continues to defend the rules-based international trading order. Contentious trading practices on the part of third countries, including China, have led the EU to modernise its trade defence instruments, prepare a new foreign investment screening mechanism and seek a reform of the WTO. The EU is likely to continue this approach in the coming term, pursuing international cooperation and new agreements, possibly also at a continental level with Africa, and striving to protect its citizens and businesses from economic harm. This is an update of an earlier briefing issued in advance of the 2019 European elections.

US duties on imports of Spanish ripe olives

06-03-2019

In January 2019, the European Union (EU) launched a case before the World Trade Organization (WTO) against the United States (US) challenging duties on imports of Spanish ripe olives, definitively in place since July 2018. US authorities have concluded that certain EU support measures for Spanish olive producers under the common agricultural policy (CAP) are contrary to WTO rules and can be countervailed. Given the importance of such support for EU farmers, the US measures could have far-reaching ...

In January 2019, the European Union (EU) launched a case before the World Trade Organization (WTO) against the United States (US) challenging duties on imports of Spanish ripe olives, definitively in place since July 2018. US authorities have concluded that certain EU support measures for Spanish olive producers under the common agricultural policy (CAP) are contrary to WTO rules and can be countervailed. Given the importance of such support for EU farmers, the US measures could have far-reaching consequences for the EU's agricultural model and set precedents in the WTO.

Understanding trade balances

08-02-2019

Trade policy discourse on both sides of the Atlantic has recently focused on trade deficits and surpluses. In the United States (US), President Donald Trump has routinely referred to the US trade deficit as a central indicator of the country's economic woes and made its reduction a key objective of US trade policy. In Europe, the world's largest trade surplus, run by Germany, has come under scrutiny. However, focusing on trade balances of exports and imports can be misleading in the trade policy ...

Trade policy discourse on both sides of the Atlantic has recently focused on trade deficits and surpluses. In the United States (US), President Donald Trump has routinely referred to the US trade deficit as a central indicator of the country's economic woes and made its reduction a key objective of US trade policy. In Europe, the world's largest trade surplus, run by Germany, has come under scrutiny. However, focusing on trade balances of exports and imports can be misleading in the trade policy context. Trade balances need to be considered as an integral part of a larger whole, the balance of payments of an economy. The imposition of specific trade policy measures, such as unilateral tariffs, cannot be expected to improve a trade balance significantly.

United States-Mexico-Canada Agreement (USMCA): Potential impact on EU companies

14-12-2018

The USMCA is a new trade agreement due to replace the North American Free Trade Agreement (NAFTA). The United States, Mexico and Canada signed the agreement on 30 November 2018. While the text of the agreement may still change, if approved, certain USMCA provisions on rules of origin, geographical indications and voluntary export restraints could have implications for EU companies trading with or present in North America, in particular carmakers, food and drink exporters, and dairy producers. The ...

The USMCA is a new trade agreement due to replace the North American Free Trade Agreement (NAFTA). The United States, Mexico and Canada signed the agreement on 30 November 2018. While the text of the agreement may still change, if approved, certain USMCA provisions on rules of origin, geographical indications and voluntary export restraints could have implications for EU companies trading with or present in North America, in particular carmakers, food and drink exporters, and dairy producers. The USMCA could also set precedents for future US trade policy, in departing from key principles in international trade and origin determination.

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