EU Common Commercial Policy

Stakanov R.D., 2014

Lecture 1. The objectives and principles of the common commercial policy of the European Union

Economic integrationThe Single Market and the Common

External Trade PolicyTrade Policy Review of the EUCommon commercial policy in general.CCP after Lisbon treaty.

The degree of economic integration can be categorized into several stages:

The Single Market and the Common External Trade Policy

A key activity of the EU is the establishment and administration of a common single market, consisting of a customs union, a common trade policy, the single currency, a common agricultural policy, and a common fisheries policy.

The customs union is a free trade area with a common external tariff: as the EU is a group of Member States forming a customs union, it has introduced such a tariff system. The same customs duties, quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which Member State within the area they are entering.

Policy areas, which can be generally referred to as regulatory issues

a. technical standards and regulations,b. environmental policy,c. consumer policy,d. intellectual property,e. competition policy.

Common commercial policy: general view

The creation of a customs union in the European Economic Community in 1968 was implemented internally through the abolition of customs duties, quantitative restrictions and measures having equivalent effect between Member States and, on the external front, through the introduction of a common customs tariff and a common commercial policy. In fact, goods imported from third countries had to be treated in the same way by all Member States in order to circulate freely in the customs union. But the customs union itself had to be integrated into the existing international economic order, regulated by the 1948 General Agreement on Tariffs and Trade (GATT).

CCP after Lisbon treaty

With the foundation of the WTO in 1994 and new developments in international economic law deficits in the CCP became visible.

Systematically the Lisbon Treaty restructures the external policies and integrates the CCP, the development cooperation and economic, financial and technical cooperation with third countries together as part five of the Treaty on the Functioning of the European Union.

Since the Lisbon Treaty entered into force in December 2009, the EU's external trade and investment policy has been conducted within a transformed legal and institutional framework. The European Parliament has rights equal with the Council in adopting EU trade legislation, and must give its consent before the Council can ratify international trade agreements. In addition, the Lisbon Treaty broadened the exclusive competence of the EU to encompass foreign direct investment. Several trade policy regulations, including on contingency measures, are being adapted to the new standard "comitology" rules defining procedures for the control by member States of the Commission's exercise of its implementing powers. The Commission considers that the new comitology rules increase transparency and give it greater political responsibility.

NB!

International agreements on trade in services will not have to be concluded any more by both EU and Member States. Out of this aspect and the new EU competence for foreign direct investment multiple questions of international and European law arise.

For the first time Foreign Direct Investments are included in the scope of the CCP: After the entry into force of the Lisbon Treaty the EU would have the exclusive competence in this field. Therefore EU Member States could not conclude so called “Bilateral Investment Treaties” or BITs any more. Today Germany has concluded almost 140 of such BITs, Great Britain more than 120, Austria 50 and France almost one hundred – it is a “spaghetti bowl” of BITs after a Multilateral Agreement on Investment had failed in the OECD in 1998. Negotiations in the WTO-Doha-Round on a new Agreement on Trade and Investment were terminated at an early stage. “After Lisbon” the EU would possess exclusive powers to negotiate BITs in almost all sectors and to adopt the appropriate legislation regarding the access of foreign direct investments into the EU internal market.

References 1. Brülhart M. Matthews A. EU External Trade Policy / The European Union:

Economics & Policies, 8th edition. Cambridge University Press // Marius Brülhart Alan Matthews. – 2007. - [Electronic Resource] - Mode of access: www.hec.unil.ch/mbrulhar/papers/elagraa610.pdf

2. Moussis N. Access to European Union. 18th updated edition. / Nicholas Moussis. – 2009. – 556 p. [Electronic Resource] - Mode of access: http://europedia.moussis.eu/about/?book=B0001

3. EU commercial policy / [Electronic Resource] - Mode of access: http://www.europedia.moussis.eu/books/Book_2/7/23/index.tkl?term=%20EC%20Treaty&s=1&e=20&pos=88&all=

4. European Custom Law / [Electronic Resource] - Mode of access: http://www.studymode.com/course-notes/European-Custom-Law-1839234.html

5. The European Community Common Customs / [Electronic Resource] - Mode of access: Tariff  http://www.sec.gov/Archives/edgar/data/1471302/000114420409055618/v164311_s1a.htm

6. The Single Market and the Common External Trade Policy / [Electronic Resource] - Mode of access: http://info.hktdc.com/euguide/1-4.htm

7. WTO Praises EU for Resisting Protectionist Pressures but Highlights Existing Barriers / [Electronic Resource] - Mode of access: http://www.strtrade.com/news-publications-5969.html

Thank you!

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