The European Parliament
adopted a resolution on the trade aspects of the Eastern
Partnership.
Parliament stresses
that the conclusion and implementation of Association Agreements
including Deep and Comprehensive Free Trade Areas (DCFTAs) is a
priority aim and ambition of the reviewed European Neighbourhood
Policy regarding the Eastern Partners. It recalls that following
the Arab Spring, the EU interest has been focused on the southern
neighbours but the countries belonging to the Eastern Partnership
and EU trade relations with them deserve the attention of the
EU.
In this context,
Parliament feels that the prospect of creating DCFTAs with the EU
is essential for achieving a stable, transparent and predictable
economic environment which respects democracy, fundamental rights
and the rule of law in Eastern Partnership countries. This will
provide not only for greater economic integration but also for
regulatory convergence in areas that have an impact on trade in
goods and services, in particular by strengthening investment
protection, streamlining customs and border procedures, reducing
technical and other non-tariff barriers to trade. Parliament takes
the view that concluding DCFTAs is fundamental in fighting
tendencies towards protectionism at global level. The creation of DCFTAs will impact on the entire
functioning of the EU's trade partner countries that reaches far
beyond purely trade issues, also influencing the state of
democracy, the rule of law and other common standards.
Parliament also stresses the following:
- the support and involvement of local civil society and
international NGOs in promoting the long-term benefits is key for
the success of reform processes in the countries in
question;
- the need for
strengthening cooperation between the EU and its Eastern Partners
in a number of sectors, in particular industry, SMEs, research,
development and innovation, ICT and tourism.
In
an oral amendment adopted in plenary, Parliament acknowledges the fact that DCFTAs might be a core
component of a wider political agreement (association
agreement). It stresses, however, that in cases where it is not
possible or advisable to conclude an association agreement with a
particular country, other strategies shall be considered in
order to efficiently pursue the Union's economic and trade
goals with the country concerned.
Parliament calls for the observance of two major
principles in the treatment of the countries concerned:
- differentiation accompanied by application of the ‘more for
more’ principle as outlined in the Joint
Communication on “A new
response to a changing neighbourhood”;
- flexibility
in the approach to different
partners.
Budget: Parliament
welcomes the Commission’s proposal on the Multiannual
Financial Framework 2014-2020, which proposes a 40% rise in funding
for the European Neighbourhood Policy. It calls on the Council to
maintain the funding proposed by the Commission.
Sectoral matters: Parliament calls for: (i) strengthening the role of
the national parliaments of the EU’s Eastern Partners in
approximation of trade legislation with the EU acquis; (ii)
strengthening the Commission’s flagship initiatives on SMEs,
including the EaP SME facility, and on regional energy markets
and energy efficiency; (iii) further developing the EU Black Sea
Strategy, given its geostrategic role, which offers a significant
potential for energy security and supply diversification; (iv)
reinforcing links with the EURONEST Parliamentary Assembly
(PA).
Parliament also stresses that a DCFTA is not
assistance given to the Eastern Partners, but is a trade deal
bringing about reciprocal advantages and obligations for both
parties. It regrets that the ENP review still does not
elaborate on how developing such a trade policy could present a
boost for EU economic interests by bringing substantial benefits to
EU consumers, companies and workers. It stresses
that DCFTAs would not only bring economic benefits for the Eastern
Partners but can also accelerate institutional reforms,
modernisation and development.
Recalling that the Union is the main exporting partner of
the majority of countries in the Eastern Partnership and noting the
growing economic influence of China in the countries of the Eastern
Partnership, Parliament also makes the
following points regarding the current negotiations:
- it notes that
Russia has concluded a customs union with Kazakhstan and
Belarus, and regrets that Russia may have undermined the trade
negotiations between the EU and several Eastern Partners, in
particular Ukraine, by offering them an alternative path, based on
short-term solutions, such as lower gas prices;
- it points out
that, despite making sufficient progress, Georgia and
Moldova still need to ensure that their commitment to the
reform process is of a long-term nature and that they engage in a
durable reform process throughout the negotiations. It emphasises
that both countries still need to make significant progress in
regulatory reform concerning in particular technical barriers to
trade, sanitary and phytosanitary measures, intellectual property
rights and competition law;
- DCFTAs should be
accompanied by effective measures on competition and against
corruption as well as observance of fundamental labour rights
approved by the International Labour Organisation and a binding
sustainable development chapter.
- regional frozen
conflicts have for many years harmed the effectiveness and
development of cross-border trade and continue to cause enormous
economic losses to some of the Eastern Partners and to lead to
their economic isolation.
Parliament then makes a series of observations on each of
the countries concerned in the Eastern Partnership:
- Armenia:
Parliament welcomes the launch of DCFTA negotiations between
Armenia and the EU in 2012 and stresses that closer economic
integration with the EU must contribute to the strengthening of
political stability and security in the region. It considers it
necessary to sustain reforms to create a stable and transparent
economic environment which will attract foreign investments, boost
growth and create jobs. It is concerned about the indications of
the ongoing close links between political and business circles and
significant impediments for businesses, including the untransparent
tax system and low investment protection. It also regrets that the
Nagorno-Karabakh conflict still resonates in the closed
borders of Armenia with Azerbaijan and Turkey, keeping the country
economically isolated and stress that opening of the borders is,
inter alia, an important condition for attracting foreign
investment. It calls for the strengthening of
the following: (i) protection investments; (ii) an institutional
framework for public procurement and competition policy; (iii)
effective anticorruption measures; (iv) implementation of
competition law, thus enabling foreign investors and companies to
participate, in particular, in Armenia’s construction and
energy industries; (v)compliance with EU sanitary and phytosanitary
measures; (vi) measures to weaken Armenia’s dependence on
Russian commercial and governmental support;
- Azerbaijan: Parliament
emphasises that the accession of Azerbaijan to the WTO is the key
prerequisite for opening the DCFTA negotiations and thus bringing
EU-Azerbaijan trade relations to a higher level. It notes
that the structure of the Azerbaijani economy does not give its
government a strong motivation to seek WTO membership and a DCFTA
with the EU. It urges the Azerbaijani Government therefore to step
up its efforts towards WTO membership, and calls on the EU to
provide Azerbaijan with the necessary assistance. Whilst commending
the remarkable economic growth experienced by Azerbaijan in past
years, Parliament points out that the Azerbaijani economy is
very vulnerable to oil price volatility and calls in this
regard on the Azerbaijani Government to consider adopting effective
and consistent measures to diversify the country’s economy,
through development of competitive agricultural production, subject
to compliance with EU sanitary and phytosanitary requirements. It
stresses the need to fight corruption and social inequalities and
for the country to open its economy to foreign investment;
- Belarus: Parliament
regrets that Belarus, despite its unquestionable potential, is
drifting further and further from the EU in terms of its
overall political and economic standards, as well as its economic
model. It stresses the importance of Belarus’s strategic
position as a country of transit for energy, particularly supplies
of natural gas for the EU. It also stresses the need for more EU
assistance in order to: (i) fight corruption; (ii) reduce poverty
(reportedly 20% of Belarusians live below the breadline); (iii)
strengthen competition (80% of companies are publicly owned and the
development of the private sector is hampered by discriminatory and
arbitrary measures; (iv) open markets to foreign investment
(currently 1% of GDP) ; v) strengthen civil society ;
(vi) encourage reforms which are indispensable and of extreme
importance for Belarusian citizens. Parliament notes, in this
regard, the current EU targeted restrictive economic measures
against Belarus. It takes the view that the EU should continue
its targeted individual restrictive measures while continuing to
support civil society and entrepreneurs with the aim not only of
improving economic conditions but also of enhancing the rule of
law, transparency and the fight against corruption;
- Georgia: pointing out
that Georgia is one of the world’s fastest reforming economies
and is ranked by the World Bank as the world’s 16th best place
to do business, Parliament notes that Georgia still has the highest
alleged prevalence of pirated software of any country. It calls on
the Georgian Government to develop laws for the enforcement of
intellectual property rights. Other measures are also
awaited. Parliament encourages Georgia to perfect its legislation,
improve the efficiency of its institutions and ensure high
quality-control standards for its products. It calls on Georgia to ensure that, after the
conclusion of the DCFTA negotiations, only products originating
from regions formally recognising their adhesion to the Georgian
state are eligible for trade preferences. It welcomes
Georgia’s new procurement system, enabling e-auctions for all
types of contracts, irrespective of their size or nature. It points
out that Georgia should also serve as an example for the EU Member
States in this area.
- Moldova: despite the
fragility of its economy, Parliament notes the country has in
recent years undergone a remarkable reform process. It is of the
opinion that the future DCFTA should apply to the whole territory
of Moldova that formally acknowledges its adhesion to the Moldovan
state. It notes that, for the time being, most Moldovan exports
originate from agriculture and thus face fierce competition and
strict requirements in the EU market. A DCFTA should help diversify
Moldovan exports and make the country more competitive and enable
Moldova to attract foreign investments. It points out that
considerable progress is still needed in the area of services and
investment protection. It also calls on the EU authorities to be
more involved in finding a peaceful solution for the problems of
territorial reintegration of Moldova;
- Ukraine: Parliament
welcomes the conclusion of the DCFTA between the EU and Ukraine,
as the first ever free trade agreement between the EU and an
Eastern Partner. The DCFTA opens a new market of 46
million consumers for the EU. Parliament takes
note of the fact that the Commission excluded the possibility of
provisional application of the DCFTA before the conclusion of
the Association Agreement and its consent by the European
Parliament. It calls for proper implementation of the DCFTA and
the gains coming from it and for continuation of economic reforms
in the areas of agriculture, energy and transport sectors.
Parliament is concerned about the negative indications regarding
Ukraine’s business and investment climate resulting from
various institutional and systemic deficiencies such as barriers to
market entry, administrative permits, the excessive number of
administrative inspections, poor administration, weak contract
enforcement and insufficient property rights protection. It
urges the Ukrainian Government to address the concerns of the
business sector more effectively, in particular with regard to
access to credit and land, mortgages, preferential credits and
calls on Ukraine to adapt its internal legislation in order to
facilitate uninterrupted transit of gas to the EU Member
States. Parliament notes that this process
should include a restructuring of the gas sector and the
establishment of fair regulation of energy infrastructure with a
view to placing foreign suppliers, foreign customers and local
energy demand on an equal footing. It calls for enhanced
cooperation between the EU and Ukraine in the energy
sector.
Lastly, Parliament calls on the Council, the
Commission and the European External Action Service to take the
above considerations and recommendations duly into account and to
regularly and fully report to the European Parliament on the
progress of the negotiations and, after its entry into force, on
the progress in implementation of each DCFTA.