EU EXTERNAL ECONOMIC RELATIONS

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1 EU EXTERNAL ECONOMIC RELATIONS Common Customs Tariff (CCT) Common Commercial Policy (CCP) R.Greaves

2 LEGAL PERSONALITY & COMPETENCES (Article 235 TFEU) Articles 2-6 TFEU on categories and areas of Union competence Express powers Art 207 TFEU Implied powers: ERTA Case, Case 22/70 (now Art 3(2) TFEU) Opinion 1/76 (now Art 3(2) TFEU) Open Skies Agreement C-476/98 R.Greaves

3 ARTICLE 206 TFEU By establishing a customs union in accordance with Articles 28 to 32, the Union shall contribute in the common interest, to the harmonious development of world trade, the progressive abolition of restrictions on international trade and the lowering of customs and other barriers. R.Greaves

4 COMMON CUSTOMS TARIFF Uniform system of tariffs In place since July 1968 Classification of goods Valuation rules of goods Origin rules of goods Community Customs Code. R.Greaves

5 Article 207 TFEU The common commercial policy shall be based on uniform principles, particularly with regard to changes in tariff rates, the conclusion of tariff and trade agreements relating to trade in goods and services and the commercial aspects of intellectual property, foreign direct investment, the achievement of uniformity in measures of liberalisation, export policy and measures to protect trade such as those to be taken in the event of dumping and subsidies. The common commercial policy shall be conducted in the context of the principles and objectives of the Union s external action. R.Greaves

6 SCOPE OF THE CCP Inseparable link with internal free movement of goods Rules of origin main tool on principle of uniformity of treatment with 3rd countries Trade in goods and services (but excludes transport) R.Greaves

7 SCOPE OF CCP cont d Sociaal Fonds. Dutch Diamond Case [1973] Aim: to contribute to harmonious development of world trade and progressive removal of barriers Opinion 1/94 (WTO Opinion) R.Greaves

8 CCP broad but not too broad Belgian Diamond Case, 1973 Opinion 1/94 (WTO Agreements) GATT GATS TRIPS TRANSPORT

9 CCP post Lisbon Art 207(4): qualified majority re agreements with 3 rd countries and international organizations But unanimity re services, commercial aspects of IPRs and foreign direct investment where unanimity required if acting internally Art 207(5): transport agreements within Transport provisions of the TFEU Opinion 1/2008 on Art 207(6) re agreements not affecting competences between EU and MSs and not lead to harmonisation

10 The Opinion to safeguard a uniform and consistent application of the [EU] rules and the proper functioning of the system which they establish in order to preserve the full effectiveness of [EU] law.

11 EU relationship with WTO WTO Background: Uruguay Round ( ) Trade in Goods (GATT) Trade in Services (GATS) Trade-Related Aspects of Intellectual Property Rights (TRIPS) GATT influenced EU Treaty eg Art 36 borrowed wording of Art XX Concept of non-discrimination Most-favoured-nation principle (MFN)

12 EU bound by WTO rules Customs Union is a permissible derogation International Fruit 21-24/72 [1972] ECR MSs committed to GATT when ToR negotiated) - EU assumed functions in tariff & trade policy -in so far as EU assumed MSs powers, WTO EU provisions bind the NB: binding effect does not give RIGHTS to individuals

13 Further case law Germany v Council C-280/93 [1994] -CJEU: GATT provisions cannot be invoked in a court - confirmed in Portugal v Council C-149/96 [1999] Reasoning: (from International Fruit) GATT based on the principle of negotiation undertaken on the basis of reciprocal and mutually advantageous arrangements.

14 But.. CJEU will review EU legislation in light of WTO in 2 situations: (a) (b) where implementing particular WTO obligation where EU refers expressly to WTO precise provisions

15 .. and in Germany v Council [1994] The primacy of international agreements concluded by the [Union] over provisions of secondary [Union] legislation means that such provisions must, so far as possible, be interpreted in a manner that is consistent with these agreements.

16 EU s Trade Policy Covers all measures affecting trade in goods and services and almost trade-related issues (inc. company law; indirect taxation; standards & other technical regulations; and enforcement of IPRs) Most important policy: customs union Trade defence measures

17 Principles of Policy Geared towards trade and investment liberalization Donckerwolcke 41/76 [1976] ECR 1921 (Belgian firms imported textiles into France good to be Belgian though true origin was Syria and Lebanon. Could France continue to apply quotas and monitor indirect imports; CJEU said YES but need Commission) Uniformity Assimilation No discrimination (WTO s MFN but Art XXIV GATT allows preferential trade agreements eg EFTA or CU

18 Substantive Policies of CCP Generalised Scheme of Preferences (GPS) Import/Export Regimes Trade Defences measures Anti-dumping Anti-subsidy Safeguard measures

19 Generalised Scheme of Preferences Full or partial reduction or suspension of customs duties set out in the CCT with a view to facilitating imports of certain products from developing countries Autonomous measure of the EU: Reg 978/2012 Link between trade and development permitted under Art 207 TFEU Protection of environment Social rights Employment policies Immigration

20 Import/Export Regimes (common rules) Liberal import regime: import licence not required; no quotas (some exceptions eg tobacco, weapons) Reg 2015/478 EU import restrictions: pirated or counterfeit goods; import of live animals; hazardous substances

21 EU Legislation Regulation 2015/478 on imports Derogations same as Art 36 Safeguard measures may be preceded by surveillance Regulation 2015/479 on exports Some export authorisation required but Commission Oks it first Art 36 grounds

22 Trade Defence Measures Antidumping: Reg 1225/2009 (very technical) Normal value (price paid or payable in exporting country) Export price Dumping margin Causes injury Provisional and definitive duties NB: duties not exceed either the dumping or injury margin (the so-called lesser duty rule) Anti-subsidy: Reg 2016/1037 Safeguard Measures: Reg 260/2009 & Reg 625/2009

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