Dispute Settlement regarding Trade Remedies in the FTA

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• Dispute Settlement regarding Trade Remedies in
  the FTA
• EUROPEAN COMMISSION
• Directorate General for External Trade

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1. Overview of Free Trade Agreements

• The EU is firmly committed to the promotion of
  open and fair trade with all its trading
  partners. In addition to the WTO's multilateral
  negotiations, the EU concludes bilateral
  agreements and devises specific trading policies
  with third countries and regional areas.
• Bilateral agreements are agreements between two
  political entities, thus legally binding these
  two territories only. Bilateral trade relations
  are about agreement on custom unions, free-trade,
  association, co-operation and partnership. These
  preferential trade agreements are notified under
  either Article XXIV of the GATT or Article V of
  the GATS.

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Overview of Free Trade Agreements (Agreements
notified under GATT Article XXIV)
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1. Overview of Free Trade Agreements
(Agreements notified under GATT Article XXIV)
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1. Overview of Free Trade Agreements
(Agreements notified under GATT Article XXIV)
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1. Overview of Free Trade Agreements
(Agreements notified under GATS Article V
Regional Economic Integration Agreements covering
Trade in services )
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1. Overview of Free Trade Agreements(agreement
for which the EC received a waiver in WTO)
For information on the bilateral trade relations
of the European Communities as well as for access
to the full texts of the Agreements please visit
the following Internet address
http//ec.europa.eu/comm/trade/issues/bilateral/in
dex_en.htm
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2. Nature of Association Agreements

• The Association Agreements are based on Article
  310 of the Treaty establishing the European
  Communities The Community may conclude with
  one or more States or international organisations
  agreements establishing an association involving
  reciprocal rights and obligations, common action
  and special procedure.
• No provision of Community law contains a
  definition of the notion Association Agreement.
  
• An Association Agreement is anything which is
  more than an agreement creating reciprocal
  obligation like a trade agreement and less than
  membership in the Community (as defined by the
  late Walter Hallstein the first president of the
  European Commission).
• Contemporary practice distinguishes three general
  categories of association agreements concluded by
  the European Community
• Association Agreements which contemplate eventual
  membership in the Community
• Association Agreements which serve as a
  substitute for membership in the Community and
• Association Agreements whose objective is to
  provide assistance to the associated country.

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2. Nature of Association Agreements

• Although trade forms an important part of the
  association agreements it should be underlined
  that the Association Agreements, go far beyond
  trade.
• Examples
• The Agreement with Chile is based on three
  pillars i) political dialogue, ii) co-operation
  and iii) trade, thus covering the broad range of
  EU-relations
• The Agreement with South Africa is based on three
  pillars i) trade, ii) development and iii)
  co-operation
• .

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2. Nature of Association Agreements

• Description of the procedure for the Conclusion
  of Association Agreements (Article 300 of the
  Treaty)
• The Commission first submits recommendations to
  the Council which shall authorize the Commission
  to open the necessary negotiations. The Council
  must act unanimously when authorizing the
  Commission to open negotiations.
• On adoption of such recommendations by the
  Council, the Commission conducts the negotiations
  with the party with which it is intended to
  conclude an Association Agreement (in
  consultation with special Committees appointed by
  the Council)
• The Association Agreements are concluded by the
  Council, acting unanimously on a proposal from
  the Commission.
• Before conclusion, the assent of the European
  Parliament is obtained. The European Parliament
  may give its assent by simple majority.

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3. Trade remedies chapter in Association and/or
FT Agreements

• In principle, the Trade remedies chapter in the
  Free Trade Agreements confirm the rights and
  obligations under the WTO.
• However, special safeguard provisions are set
  principally to address any serious difficulties
  caused by increased imports to one Party of the
  Agreement as a result of the reduction of the
  custom duties envisaged under the Agreement.
• .

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4. Dispute Settlement Chapter in Association
and/or FT Agreements

• Association and/or Free Trade Agreements contain
  a Dispute Settlement Chapter.
• This chapter contains a Dispute Settlement
  mechanism that covers all aspects and pillars of
  the agreements, with provisions related to the
  appointment of arbitrators, to the arbitration
  panel ruling and provisions related to the
  compliance with the ruling of the arbitration
  panel.
• In most Agreements the Dispute Settlement Chapter
  does not contain a carve-out provision for the
  settlement of disputes arising from the
  implementation of the trade remedy instruments.
• However, in certain agreements there is a
  carve-out clause regarding anti-dumping and
  countervailing measures (e.g. FTA with Mexico).
• .

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4. Dispute Settlement Chapter in Association
and/or FT Agreements

• Although as mentioned earlier the carve-out
  clause regarding the settlement of disputes
  arising from anti-dumping and countervailing
  measures does not appear in all FTAs concluded
  by the European Communities, its inclusion is
  only reasonable as it eliminates the risk of
  conflicting decisions with those adopted at WTO
  level.
• There have been no cases in which either the
  European Community or an Associated Party to an
  Agreement have referred a trade remedy case to
  the Dispute Settlement Mechanism of an FTA.
• With the exception of the special (bilateral)
  safeguard measures justified under the FTAs, the
  European Institutions are committed to resolve
  disputes arising from the imposition of trade
  remedy measures under the provisions of the
  Dispute Settlement Understanding of the WTO.
• .