RESTRICTED  
  
WT/TPR/S/284  
28 May 2013  
(13-2753)  Page: 1/252  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
EUROPEAN UNION 
This report, prepared for the eleventh Trade Polic y Review of the European Union, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the European Union on its 
trade policies and practices.  Any technical questions arising from this report may be addressed to Messrs John Finn 
(tel: 022/739 5081), Pierre Latrille  (tel: 022/739 5266), Michael Koli e (tel: 022/739 5931), Xinyi Li 
(tel: 022/739 5579), and Roger Kampf (tel: 022/739 6218).  
Document WT/TPR/G/284 contains the policy statement submitted by the European Union. 
 
  
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review  Body on the European Union. This report was 
drafted in English. WT/TPR/S/284 • European Union 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 9 
1   ECONOMIC ENVIRONMENT ........................................................................................ 12  
1.1   Recent developments ................................................................................................ 12 
1.1.1   Macroeco nomic co ntext .......................................................................................... 12 
1.1.2   Policy measures ..................................................................................................... 15 
1.2   Outlook ................................................................................................................... 17 
1.3   Mercha ndise tr ade .................................................................................................... 17 
1.4   Services trade .......................................................................................................... 21 
1.5   Foreign direct  investment  (FDI) .................................................................................. 22 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 26  
2.1   Legal and Inst itutional Fr amework .............................................................................. 26 
2.2   Trade Policy Object ives and Cons ultation ..................................................................... 29 
2.3   Participation to the World Trade Or ganization ............................................................... 30 
2.4   Preferential Trade Ag reements and A rrangements ......................................................... 30 
2.4.1   Unilateral preferences ............................................................................................ 30 
2.4.2   Reciprocal preferences ............................................................................................ 32 
2.5   Foreign Investment ................................................................................................... 35 
2.5.1   Foreign investment regime ...................................................................................... 35 
2.5.2   Bilateral in vestment tr eaties .................................................................................... 37 
2.6   Aid for Trade ............................................................................................................ 37 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 39  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 39 
3.1.1   Procedures ........................................................................................................... 39 
3.1.2   Custom s valuation ................................................................................................. 42 
3.1.3   Rules of origin .......................................................................................................  42 
3.1.3.1   Overview ........................................................................................................... 42 
3.1.3.2   GSP rules of origin .............................................................................................. 43 
3.1.3.3   Other preferen tial rules of  origin ........................................................................... 44 
3.1.4   Tariffs ............................................................................................................... ... 44 
3.1.4.1   M FN tari ffs .........................................................................................................  44 
3.1.4.2   WTO bound tariffs ............................................................................................... 48 
3.1.4.3   Tariff suspension s and tariff ra te quotas ................................................................. 48 
3.1.5   Domestic taxes collected at the border ...................................................................... 49 
3.1.6   Import control and restrictions ................................................................................. 51 
3.1.7   Continge ncy measures ........................................................................................... 52 
3.1.7.1   Overview ........................................................................................................... 52 
3.1.7.2   Anti-dumping  and counter vailing ........................................................................... 53 
3.1.7.3   Safeguards ........................................................................................................ 56 
3.1.8   Technical regu lations and standards ......................................................................... 57 WT/TPR/S/284 • European Union 
 
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  3.1.9   Sanitary and phyt osanitary stan dards (SPS) .............................................................. 64 
3.2   Measures Directly Affecting Exports ............................................................................. 69 
3.2.1   Registration and documentation ............................................................................... 69 
3.2.2   Export taxes,  charges and levies .............................................................................. 69 
3.2.3   Restrictio ns and co ntrols ......................................................................................... 69 
3.2.4   Official support an d related fisca l measures ............................................................... 71 
3.2.5   Finance, insurance guarantees, and promotion ........................................................... 71 
3.3   Measures Affectin g Production and Trade ..................................................................... 72 
3.3.1   State trading and state-owned en terprises ................................................................ 72 
3.3.2   Subsidies and othe r government assistan ce ............................................................... 73 
3.3.2.1   General legal an d institutional framework ............................................................... 73 
3.3.2.2   Region al assist ance ............................................................................................. 74 
3.3.2.3   Non-crisis aid at member-Sta te level ..................................................................... 75 
3.3.2.4   Crisis-related aid ................................................................................................. 76 
3.3.3   Governme nt procurement ....................................................................................... 80 
3.3.3.1   Legislative framework .......................................................................................... 80 
3.3.3.2   GPA and inte rnational pr ocurement........................................................................ 84 
3.3.3.3   Other developments ............................................................................................ 85 
3.3.4   Competition policy  and regulato ry issues ................................................................... 86 
3.3.4.1   Overview ........................................................................................................... 86 
3.3.4.2   An ti-trust .......................................................................................................... . 87 
3.3.4.3   Mergers and acquisitions ...................................................................................... 88 
3.3.4.4   Internat ional cooperation ..................................................................................... 89 
3.3.5   Intellectual property rights ...................................................................................... 89 
3.3.5.1   Ex haustion ......................................................................................................... 91 
3.3.5.2   Copyright and related rights ................................................................................. 91 
3.3.5.3   Indust rial property .............................................................................................. 94 
3.3.5.3.1   Patents ...........................................................................................................  94 
3.3.5.3.2   Supplementary protection certificates .................................................................. 97 
3.3.5.3.3   Plant varieties .................................................................................................. 97 
3.3.5.3.4   Trademarks ..................................................................................................... 98 
3.3.5.3.5   Geographical indications .................................................................................... 99 
3.3.5.3.6   Indust rial designs ........................................................................................... 102  
3.3.5.3.7   Undisclos ed information .................................................................................. 102  
3.3.5.4   Enforcement ..................................................................................................... 103  
3.3.5.4.1   Legal basis at EU level .................................................................................... 103  
3.3.5.4.2   IPR enforcement at the EU's extern al borders ..................................................... 105  
3.3.5.4.3   IPR enforcem ent within the EU ......................................................................... 107  
3.3.5.4.4   Measuring the impact of counterfeiting and piracy ............................................... 108  
3.3.5.4.5   International coop eration in IPR enforcement ..................................................... 109  WT/TPR/S/284 • European Union 
 
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  4   DEVELOPMENTS IN SELECTED SECTORS .................................................................. 111  
4.1   Agriculture ............................................................................................................ 111 
4.1.1   Agriculture in the European  Union .......................................................................... 111  
4.1.2   Trade .................................................................................................................  112 
4.1.3   Agriculture policies ............................................................................................... 114  
4.1.3.1   Domest ic support .............................................................................................. 114  
4.1.3.1.1   Rural development ......................................................................................... 115  
4.1.3.1.2   Internal mark et support me asures .................................................................... 115  
4.1.3.2   Export subsidies................................................................................................ 118  
4.1.3.3   Market access ................................................................................................... 119  
4.1.4   Domestic support le vels ........................................................................................ 119  
4.2   Fisheries ...............................................................................................................  123 
4.2.1   Fisherie s in the EU ............................................................................................... 123  
4.2.2   Trade .................................................................................................................  125 
4.2.3   Policies ............................................................................................................... 126  
4.2.3.1   Total allowable catch ......................................................................................... 127  
4.2.3.2   Effort and gear restrictions ................................................................................. 128  
4.2.3.3   Illegal, unreported an d unregulated (I UU) fishing .................................................. 129  
4.2.3.4   Regional Fisheries Management Or ganizations and multilat eral agreements ............... 129  
4.2.3.5   Bilateral agreements ......................................................................................... 130  
4.2.3.6   Support to fisheries ........................................................................................... 130  
4.3   Services ................................................................................................................  132 
4.3.1   Financial services ................................................................................................. 132  
4.3.1.1   Market si ze and stru cture ................................................................................... 132  
4.3.1.1.1   Banking ........................................................................................................ 13 2 
4.3.1.1.2   Insurance ...................................................................................................... 133  
4.3.1.1.3   Securities ...................................................................................................... 134  
4.3.1.2   Recent and planned regulatory evolutions ............................................................. 135  
4.3.1.2.1   Banking union project ..................................................................................... 137  
4.3.1.2.2   Reforming financial institutio ns and markets to im prove stability ........................... 138  
4.3.1.2.2.1   Financial supervision reform .......................................................................... 138  
4.3.1.2.2.2   Banks and insurance co mpanies .................................................................... 138  
4.3.1.2.2.3   Credit rating  agencies and auditors ................................................................ 139  
4.3.1.2.2.4   Securities markets and de rivatives ................................................................. 140  
4.3.1.2.2.5   Speculative trading practices that may lead to excessive market volatility ............ 140  
4.3.1.2.3   Reinforcing the accountability of th e financial system and its user friendliness ......... 140  
4.3.1.2.4   Instituting a financial transaction tax ................................................................. 142  
4.3.1.2.5   Third- country re gime ...................................................................................... 144  
4.3.1.2.6   Planned next steps of  financial services reform ................................................... 147  
4.3.2   Environmental services ......................................................................................... 147  WT/TPR/S/284 • European Union 
 
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  4.3.3   Transpor t services ............................................................................................... 154  
4.3.3.1   Air transport services ......................................................................................... 154  
4.3.3.2   Rail tran sport serv ices ....................................................................................... 157  
4.3.3.3   Maritime tr ansport serv ices ................................................................................ 164  
4.3.3.4   Road tran sport services ..................................................................................... 167  
4.3.4   Pipeline services .................................................................................................. 17 1 
REFERENC ES ................................................................................................................ 175  
5   APPENDIX TABLES .................................................................................................. 179  
CHARTS 
 Chart 1.1 Long-term gove rnment bond yields ...................................................................... 13
 
Chart 1.2 Balance of the curre nt account as  % of GDP .......................................................... 14 
Chart 1.3 General government  balance as % of GDP ............................................................. 14 
Chart 1.4 Unemployment  response to GDP .......................................................................... 15 
Chart 1.5 Composition of merc handise trade, 2009 and 2012 ................................................. 18 
Chart 1.6 Direction of merchandise trade, 2009 and 2012 ...................................................... 19 
Chart 1.7 EU exports and shar e in world to tal exports ........................................................... 21 
Chart 1.8 Selected EU nations, export volumes of goods and services ...................................... 21 
Chart 1.9 FDI flows and stocks , 2004-11  ............................................................................. 23 
Chart 3.1 Anti-dumping measures in force, by region, 2008-12  .............................................. 55 
Chart 3.2 Anti-dumping measures  imposed, by product,  2008- 12 ........................................... 55 
Chart 4.1 Exports and imports of  agriculture pr oducts, 2004-11 ........................................... 112  
Chart 4.2 Domestic support in the European Union, 2000/01-2009/10 ................................... 120  
Chart 4.3 Green Box support in th e European Union,  2000/01-20 09/10 ................................. 120  
Chart 4.4 Blue Box support in the European Union, 2000/01-2009/ 10 ................................... 121  
Chart 4.5 Amber Box support in th e European Union,  2000/01-20 09/10 ................................ 121  
Chart 4.6 Value of production, and support  to agriculture in  EU-27, 2001-11 .......................... 122  
Chart 4.7 Total catch in the EU-27 .................................................................................... 124  
 
TABLES 
 
Table 1.1 Scoreboard for the surveill ance of macroecono mic imbalances .................................. 16 
Table 1.2 Trade in  services , 2009- 11 .................................................................................. 22 
Table 1.3 Distribution of FDI stocks, 2005 and 2009-11 ......................................................... 23 
Table 2.1 Competen ces of the EU ....................................................................................... 26 
Table 2.2 Active free-trade agreements signed by the EU, December 2012 ............................... 32 
Table 2.3 The EU's services commitment under the FTA, and comparison with its GATS 
commitments .................................................................................................................. 34 
Table 3.1 Benefits of Authorized Economic Operator  Certificates ............................................. 41 
Table 3.2 Structure of MFN tariffs in the EU-27, 200 8, 2011, an d 2013  .................................... 45 
Table 3.3 Summary statis tics of MFN tariff, 2013 .................................................................. 46 WT/TPR/S/284 • European Union 
 
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  Table 3.4 VAT revenue ratio, 2000-10 ................................................................................. 50 
Table 3.5 Anti-dumping investigations and measures imposed, 2008-12a ................................. 54 
Table 3.6 Countervailing investigations and measures imposed, 2008-12a ................................ 56 
Table 3.7 Specific trade concerns over  EU TBTs, January 2011-February  2013 .......................... 59 
Table 3.8 Specific trade concerns over EU  SPS measures, January  2011-Februa ry 2012 ............. 64 
Table 3.9 RASFF notifications,  January 2011-Dec ember 20 12 ................................................. 68 
Table 3.10 Approved amount of aid, by instru ment, 2008 -11 ................................................. 78 
Table 3.11 Approved amount of aid to financial institutions, by instrument and member 
State, 2008-11  ................................................................................................................  79 
Table 3.12 Used amount of aid to financial institutions, by instrument and member State, 
2008-1 1 ....................................................................................................................... .. 79 
Table 3.13 Minimum public procurement thresholds, 2010-13a ............................................... 80 
Table 3.14 Selected procur ement indicato rs, 2008- 10 ........................................................... 82 
Table 3.15 Overview of selected  IP enforcemen t measur es .................................................. 104  
Table 3.16 Enforcement of intellec tual property rights, 2009-11 ........................................... 106  
Table 4.1 Agriculture production values at ba sic prices for selected  products, 2006-11  ............. 111  
Table 4.2 Selected indicators for farm struct ure in 2010 ...................................................... 111  
Table 4.3 Imports of selected ag ricultural prod ucts, 2005 -11 ............................................... 113  
Table 4.4 Exports of selected ag ricultural prod ucts, 2005 -11 ................................................ 113  
Table 4.5 Direct payments to agricultural producers in the EU, 2005/06-2009/10 .................... 115  
Table 4.6 Intervention and private storag e aids in the EU, 2007/08 to 201 1/12 ...................... 116  
Table 4.7 Export refunds for agricultural products in the EU, 2007-11 .................................... 118  
Table 4.8 Total producer support estimate and single commodity transfer values for 
selected commodities, 2003-11 ........................................................................................ 122  
Table 4.9 EU-27 total catch for selected species, 2002-09 .................................................... 124  
Table 4.10 EU fishin g fleet, 2007-10 ................................................................................. 125  
Table 4.11 Imports of selected  fish products , 2005-11 ........................................................ 125  
Table 4.12 Exports of selected  fish produc ts, 2005-1 1 ......................................................... 126  
Table 4.13 Long-term plan s for EU fi sheries ....................................................................... 128  
Table 4.14 EU participation in regional fisheries management  organizations ........................... 130  
Table 4.15 EU payments fo r fisheries,  2008-1 1 .................................................................. 132  
Table 4.16 Consolidated bank ing indicators , 2010-11  .......................................................... 132  
Table 4.17 Performance indicators , 2010-11 ...................................................................... 133  
Table 4.18 Main economic indicators of the insurance sector (EU level) .................................. 133  
Table 4.19 Number of insurance companies, by type, origin, and location of activity, 2011 ....... 133  
Table 4.20 EU security market capitalizationa ..................................................................... 134  
Table 4.21 Total assets under manage ment by pension funds, 2010- 11 ................................. 134  
Table 4.22 Overview of le gislative inst rument .................................................................... 135  
Table 4.23 Main elements of the planned financial transaction tax ......................................... 142  
Table 4.24 State of play of equivalence decisions ................................................................ 144  
Table 4.25 Importance of the environmental prot ection sector in the EU economy, 2010-11 ..... 148  WT/TPR/S/284 • European Union 
 
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  Table 4.26 European and global environmenta l market, detailed by EU member States, 
2010-1 2 .......................................................................................................................  148 
Table 4.27 European and global environm ent market, by segm ent, 2008 an d 2010 ................. 149  
Table 4.28 Market structure and regulato ry framework of wa ter services ............................... 149  
Table 4.29 Market structure and regulatory  framework of solid and hazardous waste 
management services ..................................................................................................... 151  
Table 4.30 Market structure and regulatory fr amework of air and noise pollution abatement 
services ........................................................................................................................ 152  
Table 4.31 Regulatory framework for EU aviation  services ................................................... 154  
Table 4.32 Rail transp ort indica tors .................................................................................. 158  
Table 4.33 EU existing regulatory framework for rail way transp ort ........................................ 158  
Table 4.34 Institutional setting s in the member States ........................................................ 159  
Table 4.35 Railway undertakings ...................................................................................... 160  
Table 4.36 Regulatory developments during the period under review: Recast of the first 
package .......................................................................................................................  161 
Table 4.37 On-going regulatory developments: the "fourth package" Commission proposal ...... 162  
Table 4.38 EU maritime fleetsa, 1 Januar y 2012 ................................................................. 164  
Table 4.39 Port tr affic, 2010 ............................................................................................ 164  
Table 4.40 EU regulatory framework fo r maritime transp ort servic es ..................................... 165  
Table 4.41 Road freight and passenger transport vehicle fleet and traffic, by member 
States, 2010 ................................................................................................................. 167 
Table 4.42 Market structure and regulatory framework of EU road transport services ............... 168  
Table 4.43 Breakdown of EU member States ECMTa multilateral quotas, by vehicle 
environmental ca tegory, 2010 ......................................................................................... 170  
Table 4.44 Main economic indicators of the EU pipeline transport sector, 2011 ........................ 171  
Table 4.45 EU regulatory framew ork for pipeline s servic es ................................................... 172  
BOXES 
 
Box 1.1 Credit boom and macroeconomic imbalances ............................................................ 12 
Box 1.2 Export perfor mance in the EU ................................................................................ 20 
 
 
APPENDIX TABLES 
 
Table A1. 1 Key economic indicators, 2010-12  ................................................................... 179  
Table A1. 2 Structure of imports, 2009-12 ......................................................................... 180  
Table A1. 3 Origin of  imports, 2009-12 ............................................................................. 181  
Table A1. 4 Structure of  exports, 2009-12 ......................................................................... 182  
Table A1. 5 Destination of exports,  2009-12 ...................................................................... 183  
 
 
Table A2. 1 Selected EU legislations .................................................................................. 184  
Table A2. 2 Selected notifications to  the WTO, January  2011-March 2013 .............................. 186  
Table A2. 3 Status of dispute-related WTO matters involving the EU, January 2011–
February 2013 ............................................................................................................... 190  WT/TPR/S/284 • European Union 
 
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Table A3. 1 Products to whic h an entry price applies ........................................................... 193  
Table A3. 2 Tariffs under preferential agreements, 2012 ...................................................... 194  
Table A3. 3 Contingency measur es, January 2007-Ja nuary 2013  .......................................... 196  
Table A3. 4 Anti-dumping measures, by trading partner, 2008-12 ......................................... 203  
Table A3. 5 Summary of the main legislation of intellectual property rights, 2013 .................... 204  
Table A3. 6 Term of protection of majo r intellectual proper ty rights , 2013 .............................. 208  
 
 Table A4. 1 Main economic indicators of the insurance sector, by me mber State,  2011 ............ 211
 
Table A4. 2 Number of insurance companies, by type, origin, and locati on of activity, 2011 ...... 212  
Table A4. 3 EU security market ca pitalization, by member State ........................................... 213  
Table A4. 4 Total assets under management by pension funds, 2010 and 2011 ....................... 215  
Table A4. 5 Transposition of financial directives .................................................................. 216  
Table A4. 6 Employment in water and sewerage serv ices, 2010- 11 ....................................... 217  
Table A4. 7 Modalities of private sector participation in the management of water utilities 
in selected member States .............................................................................................. 218  
Table A4. 8 Rules of the public procurement di rectives applicable to public contracts and 
concessi ons .................................................................................................................. 219 
Table A4. 9 Summarized trade regimes of environmental services ......................................... 220  
Table A4. 10 Summarized trade regime s of air transpor t services ......................................... 224  
Table A4. 11 Summarized trade regimes of rail transport services ......................................... 231  
Table A4. 12 Summarized trade regimes of maritime transport services ................................. 234  
Table A4. 13 Summarized trade regimes of road transpor t services ....................................... 246  
Table A4. 14 Summarized trade regimes of  pipelines transp ort services ................................. 252  
 
 WT/TPR/S/284 • European Union 
 
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  SUMMARY 
1. The EU, as a single entity, remains the largest trading bloc in the world and imports and 
exports continued to increase in 2011-12, although  its share of world trade is declining due to 
faster growth in other countries. The EU is also an open economy with extra-EU trade in goods and 
services representing over 33% of GDP in 2011. It s rules and procedures are also transparent and, 
despite the wide diversity among its member States in terms of their economies, legal systems, and public institutions, it is a highly integrated economic unit with a single trade policy and 
common legislation in most trade-related areas. 
2. The focus of EU policy over the past two years has been on the financial crises and there 
have been relatively few changes to trade policies, laws, or institutions in other areas. However, the fact that there has been no retreat into protectionism is, in itself, a positive sign. Among the 
causes of the crises were lack of appropriate fiscal reforms in a context of easy access to credit 
and low borrowing costs relative to economic grow th for governments and the private sector which 
resulted in unsustainable levels of private and/or public sector debt and some banks' exposure to 
such debts. A related factor that exacerbated the crises was a decline in competitiveness in some 
member States as their unit labour cost and real effective exchange rates rose relatively quickly. 
3. At both the EU and member State levels, steps are being taken to reduce public deficits and 
improve economic governance. The full implementati on of those measures is expected to support 
economic recovery in 2013 and 2014. 
4. In terms of customs procedures, the EU has been steadily moving towards an EU-wide 
system of electronic procedures with centralized  clearance, with an ultimate deadline of 2020. 
Single authorizations for simplified procedures be came more widely used during the review period. 
For goods coming from outside the EU, it is now possible to complete customs formalities at the port of arrival when the destination is in another member State while an "Entry Summary 
Declaration" may now be lodged at the destination in stead of at the point of first entry. The first 
project of the Single Window is expected to be in place in 2014.   
5. There have not been any major changes to tariffs or market access generally in the EU. 
Although there are a large number of duty-free tariff lines and the average MFN tariff is 6.5%, 
some sectors, particularly agriculture, remain re latively well protected, sometimes by complex or 
seasonal tariffs. However, relatively few countries trade with the EU on an MFN basis as the EU has a considerable number of trade agreements with other countries as well as a GSP and GSP+, and 
EBA schemes. 
6. Different member States charge different rates of value added tax and excise duties while 
corporate and personal taxation systems and rates of tax vary widely from one member State to 
another. The complexity of the taxation system, including collection and payment, for example for 
VAT, can result in additional compliance costs for economic operators while the application of reduced VAT rates for some products results in si gnificant revenue transfers to some sectors that 
are typically not traded. If all reduced rates were  removed, the standard rate of VAT could in 
certain member States theoretically be dropped by up to 7.5% without any impact on overall revenue. 
7. There is little official information available at the EU level on state-owned or controlled 
enterprises although some sources indicate that there are several hundred among the member 
States. The total number may have increased over the past few years as a number of banks have been taken over by some member States in re sponse to the financial crises. Of course, the 
definition of a "state-owned or controlled" enterprise is not the same as a "state-trading 
enterprise" in the sense of Article XVII of GATT and the Understanding on the Interpretation of 
Article XVII. However, many of these state-owned enterprises in the EU member States are 
commercial entities which have effects on trade and investment. 
8. Although there are extensive data for the EU on  procurement above the thresholds set out in 
EU law and the Government Procurement Agreem ent, a considerable proportion of public 
procurement takes place below these thresholds. It is not clear how procurement takes place 
below the threshold because of differences in reporting among member States, including 
procurement by sub-national authorities and state-owned enterprises. This problem is not peculiar WT/TPR/S/284 • European Union 
 
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  to the EU, but public procurement is a large port ion of GDP in the EU and some member States 
have federal structures with a significant proportion of procurement taking place at sub-federal level.  
9. To a large extent, SPS measures are harmonized at EU level as is EU legislation on technical 
requirements. However, there remain significant differences in some areas among Member states. 
As noted by the Commission: "Technical obstacles to the free movement of goods within the EU are still widespread." During the review period, the EU had an agreement on conformity 
assessment and acceptance enter into force, which not only aligns legislation on technical 
requirement but also foresees the possibility of mu tual market access of specific products that are 
lawfully placed on partners' markets. 
10. In the area of intellectual property rights (IPR), the EU is continuing a comprehensive 
process of reviewing and developing the existing body of legislation in order to move towards a 
coherent and balanced overall framework. For that purpose, the European Commission's "blueprint" of May 2011 to boost creativity and innovation in the EU proposed a comprehensive 
strategy for the modernization of the IPR regime. Among the most significant developments during 
the period under review is the creation of a European patent with unitary effect. It will allow future right holders to request the grant of a patent title that provides uniform protection and is 
automatically valid in the 25 participating member States. In parallel, a unified patent litigation 
system will be put in place. The EU's trademar k system and copyright regime are also undergoing 
a major review. As part of this process, the Commission has submitted a number of legislative 
proposals in the field of copyright, including with respect to the collective management and multi-
territorial licensing of copyright, and is review ing the legislative framework in general. Another 
important step towards a more coherent regime has been made in the field of geographical 
indications: a unified framework has been set up to promote quality agricultural products and 
foodstuffs, including through denominations of orig in and geographical indications. That said, the 
establishment of an equivalent legal framework for the protection of geographical indications for non-agricultural products continues to be under examination. Finally, the imminent adoption of the 
revised customs regulation aims at strengthening the enforcement of IPRs at the EU's external 
borders. For this purpose, its scope will be extended, customs procedures be simplified, and 
further clarity will be provided as regards Custom s action in relation to goods transiting the EU. 
Whether and what type of update of the existing legal framework for the civil enforcement of IPRs 
within the EU's internal market is needed continues to be subject of an extensive consultation 
process. 
11. During the review period there was no major ch ange in agricultural policy as implementation 
of the last set of reforms continued. More reform is expected to be decided in 2013 for 
implementation in 2014. As a result of past reforms and higher international prices for agricultural commodities, the total level of support to the agriculture sector has declined over the past few 
years and for most products there is now little difference between EU and international prices. 
However, the EU's reforms have not affected market access conditions and tariffs remain higher than on non-agricultural products and in some cases these tariffs are complex and/or seasonal.  
12. Overfishing remains a serious problem for the EU as total allowable catches have regularly 
exceeded sustainable limits. However, for some  time now the EU has been increasing the 
emphasis on long-term planning and more reform of the Common Fisheries Policy should take place this year. 
13. On financial services, the policy objectives for reform have been fourfold: the first is the 
creation of a banking union through a single supervisory mechanism, a European deposit guarantee system, and a European resolution fr amework for banks in cases of bankruptcy; the 
second objective is the reform of financial institutions and markets to improve stability through the 
establishment of European supervisory authorities, higher capital requirements for banks and insurance companies along with specific regulations on credit rating agencies, auditors, securities markets and derivatives, and speculative trading practices that may lead to excessive market 
volatility; the third objective is the reinforcement of accountability in the financial system towards 
consumers; and the fourth is the institution of a financial services tax for some member States. These reforms have maintained third party access and developed new regulatory instruments in 
that regard such as the notion of equivalence. WT/TPR/S/284 • European Union 
 
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  14. For environmental services the most notable tr ade development is the ongoing reform of the 
legislative framework for concessions in order to ensure more transparency and more competition. 
15. On air transport, the rules for the single avia tion market are going through a "fitness check" 
process while other reforms on ground handling, slots, and noise are being considered and the 
common external aviation policy continues to be extended, particularly through the generalization 
of the "Community clause". On maritime transpor t the main developments over the review period 
relate to competition issues with ongoing revision of state aids and anti-trust guidelines. The third 
energy package, which has implications for pipeline transport, contains reinforced unbundling and 
third party access provisions; it entered into force in all its components starting in 2011 and finishing in 2013. 
16. The EU is a highly integrated economic unit with common policies and laws for many 
trade-related areas. As noted, in many areas integration is increasing including foreign investment 
policy which, as provided for in the Treaty on the Functioning of the European Union (TFEU), is now the exclusive competence of the EU. While th e EU is in the processing of developing and 
implementing its investment policy, member States may maintain in force their investment 
agreements with third countries that were sign ed before the entry into force of the TFEU. 
17. However, in many areas of EU competence , the member States are responsible for 
implementing the law and in other areas the member  States have competence or share it with the 
EU. These areas include: monetary policy for countries outside the Euro-zone; corporate and 
personal taxation; and (at least to some extent) technical regulations, fiscal policy, government procurement, value added tax and excise duties . In addition, the number and importance of 
state-owned enterprises varies considerably from one member State to another. Overall, 
therefore, there are several reasons why future trade policy reviews of the EU should pay closer attention to trade-related practices in the me mber States, not least because they are WTO 
Members in their own right.  
 WT/TPR/S/284 • European Union 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Recent developments 1.1.1  Macroeconomic context 1.1.  In 2012, the EU's GDP stood at €12.894 trillion, making it the largest economy in the world.
1 
Despite the on-going economic and financial crisis, trade continues to play a central role in its 
overall economic performance.  
1.2.  The EU economy started to recover in 2010, shifting from output contraction to growth. With 
depressed domestic demand, net exports continued to  be the main driver of growth, in a context 
of a gradual recovery of global demand. However,  growth of GDP remained subdued, with rates of 
2% and 1.5% in 2010 and 2011, respectively. Sign ificant disparities continued to exist among 
member States (Table A1.1).  
1.3.  In 2012, following the worsening sovereign debt crisis in some member States, and the 
recent slowdown in global trade, EU GDP contra cted by 0.3%. Private consumption, already weak 
in 2011, continued to be constrained due to sluggish employee income growth and relatively high 
inflation rates. Increased precautionary saving by households, as a response to growing 
uncertainty following the resurgence of the sovere ign debt crisis, has also played its part in 
restricting private consumption. Lower public consumption was reported in 2012, in line with 
on-going fiscal consolidation efforts. The increase in net exports, the main driver for GDP growth in 
2011, was not sufficient to offset the depressed private consumption. 
1.4.  Differences in economic performance among member States remain substantial, and weak 
GDP growth has been reported in the main national economies (Germany, France, and the 
United Kingdom). Italy's output has contracted  as well as other member State economies. 
Diverging growth performances reflect, in particular, different constraints for the financial sector and fiscal policy. Countries hosting heavily indebted private sectors and governments are 
experiencing tighter credit conditions and substantial austerity measures, which put pressure on 
domestic demand for investment and consumption.  
1.5.  Over the years leading up to the economic and financial crisis, current account balances of EU 
member States showed diverging paths. In the eu ro area, the divergences were driven by large 
capital flows from the richer countries to the periphery, following financial integration in the euro area; as a consequence, while capital outflows reduced domestic demand in surplus countries, demand for imports of goods and services increased significantly in deficit countries (Box 1.1).  
Box 1.1 Credit boom and macroeconomic imbalances 
In general, major economic, including financial and debt , crises are preceded by a period of buoyant credit 
growth and low risk premium, and the eu ro-zone debt crisis is no exception.  
During the decade leading up to the 2007-2008 global economic and financial crises, market financing grew 
markedly for both governments and the private sector in the euro-zone, follo wing the convergence of yields on 
government bonds issued by euro-zone member States. Th e convergence in yields was driven to a large extent 
by anticipated macroeconomic stability (low and stab le inflation spurred by a common monetary policy) 
(Chart 1.1).  
Furthermore, strong GDP growth dyna mics were recorded in many euro-zon e countries. For example, Greece, 
Ireland and Spain recorded average nominal growth rates of 7% from 2003 to 2007, though, the strong 
growth of output recorded in those countries was accompanied by higher demand for imports which resulted in 
larger current account deficits. In the end, the accumu lation of several years of current account deficit was 
translated into significant stocks of private and/or pu blic debt. Furtherm ore, in some case s, the economies, 
and commercial banks, had become over-exposed to volatile real estate prices and unsustainable levels of 
construction activity.  
Ultimately, the situation of low and stable inflation, together with positive output growth, nurtured a perception 
of low risk and high return on capital.a As their economies were growing relatively quickly and bond yields were 
relatively low, there was little pressure on governments to undertake fiscal reform to address fiscal deficits.  
                                               
1 European Commission online information. Viewed at: 
http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database . WT/TPR/S/284 • European Union 
 
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  When the crisis hit the EU in 2008, economic growth fell , risk perceptions changed, and bond yields diverged. 
In some cases, high levels of public debt became unsustainable, in other cases, banks that were over-exposed 
to property-related debts had to be re scued and/or taken over by the state,  leading to a significant conversion 
of debt from the private to the publ ic sector. Lower tax revenues and higher unemployment exacerbated the 
problems.  
Since 2009, rating agencies have downgraded banks and governments in some euro-zone countries, with 
Cyprus, Greece, Ireland, Portugal, and Spain being the most affected. As bond yields have diverged, peripheral 
countries (higher bond yields) are ma rket out from those with relatively strong fundamentals (lower bond 
yields). In order to reassure investors' confidence, the EU has recently adopted (in addition to specific country 
programmes for the most affected) a number of polic y measures geared at st rengthening surveillance 
procedures (section 1.1.2).  
a Economic and Financial Affairs of the European Commission (2009), Economic Crisis in Europe: 
Causes, Consequences and Policy Responses , Brussels.  
Source: Gros, D. (2012), Macroeconomic Imbalances in the Euro Ar ea: Symptom or cause of the crisis?, 
CEPS Policy Brief 2012. Viewed at: http://www.ceps.eu/book/macroeconomic-imbalances-euro-area-
symptom-or-cause-crisis . 
Chart 1.1 Long-term government bond yieldsa 
024681012141618202224
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Austria Belgium Cyprus Germany
Spain Finland France Greece
Ireland Italy Luxembourg Malta
Netherlands Portugal Slovenia Slovakia(%)
 
a Average rates of monthly data on interest rates. 
Note: No data available for Estonia. Source: European Central Bank on line information. Viewed at: 
http://www.ecb.int/stats/money/long/html/index.en.html#fn1  [March 2013]. 
1.6.  Within the EU-27, external factors were additional drivers of differences in current-account 
balances. The net effects of factors such as stiffer competition from emerging countries, increases in commodity prices, the enlargement of the EU, and changes in the pattern of global demand, 
were more favourable for surplus countries' terms of trade due to their stronger competitiveness. 
Price competitiveness of deficit countries has suffered from the strengthening of the euro, given that their export structures are more price-sensitive. On the whole, the bulk of current-account divergences stem from the different im port performances of both groups.
2  
1.7.  The recent contraction in economic activi ty has reduced the divergences. On the one hand, 
EU countries with large current account deficits have seen a noticeable correction in their deficits, as deleveraging by the private sector has led to declining import demand. The drying up of private 
capital inflows to the deficit countries has also played a part in the on-going adjustment process, 
as well as the improvement in their competitiven ess, reflected by lower real effective exchange 
rates and falling unit labour costs. On the other hand, member States with large current account 
surpluses have shown moderate increases in exports due to weaker world demand. Furthermore, 
domestic demand in these member States has recently improved (Chart 1.2). 
                                               
2 DG Economic and Financial Affairs (2012a). WT/TPR/S/284 • European Union 
 
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  Chart 1.2 Balance of the current account as % of GDPa 
-15.0-10.0-5.00.05.010.0EU-27AustriaBelgiumBulgariaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuaniaLuxembourgMaltaNetherlandsPolandPortugalRomaniaSlovakiaSloveniaSpainSwedenUnited Kingdom
2009-2011 2011CA% GDP
b
 
a EU-27 with the extra EU countries. Each member State with all the other countries. 
b Simple average of three years. 
Source: Eurostat online  database. Viewed at: 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [March 2013]. 
1.8.  The slowdown of economic activity has affe cted fiscal balances in the EU, mainly through the 
fall in public revenues and the increase in automatic stabilisers through unemployment benefits. 
Economic stimulus plans have also affected fiscal stances in the EU. However, since 2010, public deficits have been decreasing steadily (from -6.5% of GDP in 2010 to -4.4 in 2011) (Chart 1.3), in line with fiscal consolidation measures being implemented by several member States, together 
with the modest recovery in public revenues.  
Chart 1.3 General government balance as % of GDP 
-20.0-15.0-10.0-5.00.05.0EU-27AustriaBelgiumBulgariaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuaniaLuxembourgMaltaNetherlandsPolandPortugalRomaniaSlovakiaSloveniaSpainSwedenUnited Kingdom
2009-2011 2011% of GDP
a
 
a Simple average of three years. 
Source: Eurostat online  database. Viewed at 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [February 2013]. 
1.9.  Despite falling deficits in most of the EU member States, government debt to GDP ratios 
continued to increase in 2010 and 2011, but at a slower pace compared with 2009. Interest expenditures, combined with inflation and modera te GDP growth are the main drivers of public 
debt ratios. WT/TPR/S/284 • European Union 
 
- 15 - 
 
  1.10.  Unemployment remains high, in a context of persistent cross-country differences. Low and 
unstable GDP performance, coupled with uncertainty driven by the escalation of the debt crisis, 
has been reflected in a rising unemployment rate at the EU level (Chart 1.4). Unemployment has been on a three-year upward trend, recently reaching a record high of some 26.1 million (10.5% 
of the EU labour force by November 2012 compared with 9.7% in 2011). The overall 
unemployment data conceal significant differences among member States; the increase in total EU 
unemployment is mainly driven by countries such as Greece, Portugal, and Spain. Different 
economic developments, including GDP growth and adjustment needs, have been the main 
determinants of cross-country disparities. Different institutional settings in national labour markets have also played a significant role in shaping labour market absorption capacities. In fact, countries with more flexible labour markets and moderate labour costs, such as Austria and 
Germany, registered relatively moderate unemployment between 2011 and 2012. 
Chart 1.4 Unemployment response to GDP
a 
0.02.04.06.08.010.012.0
-3.0-2.5-2.0-1.5-1.0-0.50.00.51.01.507 08 09 10 11 12a
Real growth rate (Left-hand scale)Unemployment rate (Right-hand scale)(%)
b
 
a Seasonally adjusted data. 
b Seasonally adjusted and adjusted data by working days. 
Source: Eurostat online  database. Viewed at 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [March 2013]. 
1.11.  From 2011 to 2012, consumer price inflatio n continued to be determined by increases in 
indirect taxation rates in several EU countries. Furthermore, rising food and oil prices and the pass-through from the recent depreciation of the euro (in the euro area) have contributed to 
relatively high inflation. In addition, in spite of a limited rise of labour costs on the back of high 
unemployment, and a moderate consumption growth, producer price inflation has been strong (2.7% in 2012), due to the effect of higher energy prices.  
1.1.2  Policy measures  
1.12.  A wide range of policy decisions, includin g a further strengthening of institutional settings, 
additional structural reforms, and exceptional monetary support in the euro area, have been 
adopted in the EU. 
1.13.  In 2010, the Commission rolled out its gr owth strategy, "Europe 2020", for the coming 
decade. In the context of this strategy, five objectives (concerning employment, innovation, 
education, social inclusion and climate/energy) were set to be reached by 2020. Each member 
State has adopted its own national targets in each of these areas.  
1.14.  In 2011 and 2012, the European Central Bank provided large-scale liquidity injection 
through the Eurosystem's three-year longer-t erm refinancing operations (LTROs), which 
contributed significantly to averting a more pronounced credit crunch in the euro-area banking 
sector. In addition, the ECB's decision to undertake Outright Monetary Transactions (OTMs) in the WT/TPR/S/284 • European Union 
 
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  secondary market of sovereign bonds in the euro area has also contributed to avoiding turbulence 
in the markets. 
1.15.  As part of policy decisions aimed at improving economic governance in the EU, in 
September 2011, the European Commission presented six legislative proposals on strengthening 
macroeconomic and fiscal surveillance. On 13 December 2011, these six proposals (six-pack) 
entered into force as five regulations and one di rective. Two of the regulations established the 
Macroeconomic Imbalance Procedure (MIP). It introduced a new surveillance mechanism aimed at 
preventing and correcting macroeconomic imbalances at the European level with surveillance 
starting from a scoreboard of eleven indicato rs. The scoreboard is published in the Alert 
Mechanism Report (AMR). For each indicator, alert thresholds have been defined to detect potential imbalances (Table 1.1). In addition, quantitative and qualitative information is taken into 
account to identify countries and issues for which an in-depth review is deemed necessary. 
However, the composition of the scoreboard ma y evolve over time. Through the Excessive 
Imbalance Procedure (EIP) corrective measures may be taken against a country in the euro area if 
it experiences excessive imbalances in the sense of the MIP regulation.
3 
Table 1.1 Scoreboard fo r the surveillance of macroeconomic imbalances  
Indicator Accepted range (%) 
Current account balance (3-year moving average, % of GDP) Between -4 and 6  
Net international investment position (% of GDP) > -35 
World export share (in current value, 5-year % change) > -6 
Real effective exchange rate ( vis-à-vis  35 industrial countries, based on 
consumer-price indices, 3-year % change) -/+ 5 (euro area) 
-/+ 11 (non-euro area) 
Nominal unit labour cost (3-year % change) < 9 (euro area) 
< 12 (non-euro area) 
Private sector debt (% of GDP) < 160 
Private sector credit flow (% of GDP) <15 
House prices relative to consumer prices (year-on-year changes, in %) < 60 
General government debt (% of GDP) < 60  
Unemployment rate (3-year moving average, in %)  < 10 
Source: European Commission (2012), Scoreboard for the surveillance  of macroeconomic imbalances , 
Occasion Paper No. 92, February. Viewed at: http://ec.europa.eu/economy_finance/publications/occasional_paper/2012/pdf/ocp92_en.pdf ; and 
Bénassy-Quéré, A., L. Nayman, and S. Piton (2012), "Six pack: the case for a simplified 
scoreboard", Le Blog du CEPII , 14 November. Viewed at: 
http://www.cepii.fr/BLOG/en/post.asp?IDcommunique=162 .  
1.16.  In February 2012, the Commission presented its first "Alert Mechanism Report" (AMR) which 
identified 12 member States needing further economic analysis in order to determine whether macroeconomic imbalances existed or risked em erging (Belgium, Bulgaria, Cyprus, Denmark, 
Finland, France, Italy, Hungary, Slovenia, Sp ain, Sweden, and the United Kingdom). Further 
analysis confirmed that these 12 member States faced macroeconomic imbalances of different natures. The Commission considered that Spain and Cyprus were experiencing "very serious" 
imbalances, while the imbalances of France, Hungary, Italy, and Slovenia were considered 
"serious". None of these imbalances were deemed "excessive" in the sense of the procedure, but they all needed to be closely monitored. During  the second AMR in November 2012, Malta and the 
Netherland were added to the list.  
1.17.  On its fiscal component, the six-pack addr esses the weaknesses identified in the Stability 
and Growth Pact (SGP), by strengthening both it s fiscal surveillance and enforcement provisions. 
In fact, it ensures stricter application of the fiscal rules under the SGP by defining quantitatively 
what a "significant deviation" (from the medium-t erm Objectives or the adjustment path towards 
it) means in the context of the preventive arm; an d by introducing an early and gradual system of 
financial sanctions for euro-area Member States, and requiring new minimum standards for 
national budgetary frameworks. 
1.18.  In response to the worsening employment situation in the EU, a number of initiatives have 
been taken. In April 2012, the Commission presented an "employment package", in order to 
                                               
3 European Commission online information. Viewed at: 
http://ec.europa.eu/economy_finance/economic_gover nance/macroeconomic_imbalance_procedure/index_en.
htm. WT/TPR/S/284 • European Union 
 
- 17 - 
 
  improve, inter alia , the demand side of job creation in sectors with sustainable employment 
potential, and the dynamics in member States' labour markets; it also aims at strengthening EU employment governance. In addition, in February 2013 a "social investment package" was presented, calling on member States to prioritise social investment and modernise their welfare 
states. Specific measures targeting youth employment have also been adopted. As an example, in 
February 2013, political agreement was reached between member States on a Council Recommendation to establish guaranteed youth schemes. 
1.2  Outlook 
1.19.  Based on the conclusions of the autumn  edition of the European Economic Forecast, 
conditional on the implementation of recent policy measures at the EU and national level, the EU economy is projected to stabilise in 2013, before picking up in 2014. Policy actions in the 
United States and some emerging economies are ex pected to play a part in economic activity 
recovery.
4 
1.20.  In 2013, domestic demand will continue to make a negative contribution to GDP growth as 
disposable income continues to suffer from a fu rther contraction of employment, low real wages 
growth and higher taxes. In addition househol ds' precautionary savings are not expected to 
decrease, and ongoing fiscal consolidation will fu rther constrain domestic demand. In this context 
of constrained private consumption, net export s are expected to remain the main positive 
contributor to GDP growth in the EU, supported by  a reaccelerating global demand, combined with 
the depreciation in the nominal exchange rate in  2012, and falling unit labour costs. Overall, the 
EU economy is expected to register subdued annual growth in 2013 (0.5%).  
1.21.  By 2014, domestic demand is expected to ta ke over as the main driver of GDP growth, as 
most of the headwinds are expected to abate. Improving consumer confidence, together with rising real disposable incomes and slowly improving labour market conditions are set to boost 
household consumption, while the initial effects of reforms on financing conditions for the private 
sector in vulnerable countries are expect ed to invigorate investment demand.  
1.22.  Unemployment rates are likely to remain high in 2013 and 2014. However, the modest 
recovery, combined with the return of confidence is set to stabilise labour markets in 2013, before 
a weak increase in employment in 2014.  
1.23.  Inflation in the EU will decrease gradually in 2013 and 2014. The average inflation rate is 
set to decline to 2.0% in 2013 and to 1.8% in 2014. A moderate rise in labour costs and falling 
commodity prices are forecast to be the main determinants of declining inflation. In addition, the 
relative recovery in GDP growth is not expected  to generate further inflationary pressures. 
1.24.  General government deficits are also expected to decrease in the short-term, following 
increased government revenues, as a result of higher tax rates and a wider tax basis. The deficit in 
the EU is projected to decline to 3.2% of GDP in 2013 and to 2.9% in 2014. However, public debts, as a percentage of GDP, will continue to  increase, influenced by interest expenditure, 
moderate GDP growth and inflation.  
1.25.  Nevertheless, the rather positive outlook remains exposed to downside risks, such as the 
persistence of pools of vulnerability in financ ial markets, and the possible moderation of GDP 
growth in China and other emerging economies. 
1.3  Merchandise trade  
1.26.  Since 2009, the EU's merchandise trade with the rest of the world continues to grow. Both 
imports and exports have recovered from the 2008 negative performance. 
1.27.  The EU's trade deficit is driven mainly by the large deficit in trade of fuel products, which 
has continued to widen from €241 billion in 2009 to €422 billion in 2012. However, this has been partly offset by trade surpluses in machinery and transport equipment, together with chemicals.  
                                               
4 DG Economic and Financial Affairs (2012b). WT/TPR/S/284 • European Union 
 
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  1.28.  Fuel products are the most buoyant import  category of the EU. Rising fuel bills have 
contributed to increased import values since 2009. In 2011 and 2012, fuel products became the main import category before machinery and transp ort equipment, following the rapid increase in 
their import value (Chart 1.5 and Table AI.2). Between 2009 and 2012, the import value of fuel 
products increased by 83% to €546 billion, whil e that of machinery and transport equipment 
increased by 28% to €452 billion.  
Chart 1.5 Composition of merchandise trade, 2009 and 2012 
(%) 
2009 2012
(a)    Exports 
Other 
manufactures
9.3
Manufactures
82.0Iron and steel
2.5
Chemicals
16.4Non-
electrical 
machinery
12.9Electrical 
machines
4.5Textiles and 
clothing
2.4
Office and 
telecommunication 
equipment
4.8Power 
generating 
machinery
3.1
Total:  €1,099.7 billion T otal:  €1,686 .3 billion  
(b)    Imports 
Chemicals
9.1Transport 
equipment  
7.5Manufactures
59.9Textiles and 
clothing
6.3
Other 
machinery
9.4
Other fuels and 
mining
3.4Fuels
24.1
Iron and steel
1.5Office and 
telecommunication 
equipment
11.6Office and 
telecommunication 
equipment
10.0
Iron 
and steel
1.5Other
4.0
Textiles and 
clothing
5.1Agriculture
8.2
Other semi-
manufactures
4.7Transport 
equipment  
6.0
Chemicals
9.0Manufactures
53.8
Total:   €1,2 34.2 b illion Total:  €1, 791.4 billion Manufactures
79.4
Other 
manufactures
8.3Other
4.4Other 
manufactures
9.0
Fuels and mining
7.4
Chemicals
17.9
Other 
machinery
9.2Other semi-
manufactures
7.1Fuels and 
mining
10.0Agriculture
7.6
Other 
manufactures
9.6
Fuels and 
mining
34.6Other semi-
manufactures
7.5
Other semi-
manufactures
4.8Transport 
equipment
13.7
Fuels and 
mining
27.5Agriculture
7.5Other
3.3Other
3.1
Other fuels 
and mining
4.2Fuels
30.5Transport 
equipment
16.5Power generating 
machinery
3.5Agriculture
7.3
Iron and steel
2.7
Non-electrical 
machinery
13.5Textiles and 
clothing
2.7
Office and 
telecommunication 
equipment
5.9Electrical 
machinery
5.0
 
Source: Information provided by the European Commission  (SITC Rev.4).  
1.29.  China was the EU's largest source of imports in 2012 (with 16.2% of market share), 
followed by Russia (11.9%), and the United States  (11.5%) (Chart 1.6 and Table AI.3). Except for WT/TPR/S/284 • European Union 
 
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  Russia, the main import countries continue to register decreases in their import share into the EU. 
This is happening to the benefit of non-traditional partners in both Africa and America. 
Chart 1.6 Direction of merchandise trade, 2009 and 2012 
(%) 
2009 2012
(a)    Exports (f.o.b.)
Asia  
25.4
Middle East
7.4America 
26.2
Russian 
Federation 
7.3Switzerland
8.0
Norway 
3.0
Turkey 
4.5
Other CIS
2.9
Total:  €1,099.7 billion Total:  €1,686.3 billion
(b)    Imports 
Norway
5.6Europe  
16.3Other America
7.7
Middle East 
4.0Africa 
9.1America 
20.3
Russian 
Federation 
9.6Other 
1.4
Switzerland
6.6
Other Europe
4.1Japan
4.7Other Asia
14.8
Other CIS
2.5China
16.2Europe 
15.3Asia
33.3Other America 
8.2
Africa 
10.4Middle East 
5.2America 
19.7
Russian 
Federation 
11.9Other 
0.8
Norway
5.6Switzerland
5.9
Other CIS
3.4Other Europe 
3.8United States 
11.5
Total:   €1,234. 2 billion Total:   €1,791.4 billionOther Asia
13.6United States
18.5
Other Europe
2.9United States 
17.3
Japan
3.6
Asia
36.9Switzerland
8.2
Other 
Europe 
2.6Other America
8.9
Africa 9.9Other Asia
15.2
China 
8.5Other America
8.2
China
17.4Other    
2.1
Africa 9.0
United States 
12.5Japan 
3.3
Europe
18.5
Middle East
8.5
Russian 
Federation 
6.0Other 
2.3
China 
7.5
Europe
18.0Japan 
3.3
Asia   
27.0
Norway 
3.4America 
26.7
Turkey 
4.0Other Asia
14.7
Other CIS
2.8
 
Source: WTO Secretariat calculations, based on Eurost at data; and information provided by the European 
Commission.  
1.30.  Exports have been increasing since 2009. The recovery was driven mostly by increased 
exports of machinery and transport equipment, with  over 40% of total EU exports (Chart 1.5 and 
Table A1.4). Almost all export categories regi stered a positive performance between 2009 and 
2012.  WT/TPR/S/284 • European Union 
 
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  1.31.  The United States remains the most important destination for EU exports (17.3% of EU 
exports in 2012), although its share has been decreasing since 2009 (when it stood at 18.5%). China surpassed Switzerland to become the second  export destination in 2011 and 2012. On broad 
geographical destinations, Asia is the most important, with 27% of total exports in 2012, closely 
followed by America, with 26.2% in the same year (Chart 1.6 and Table AI.5). 
1.32.  Some two thirds of the EU's total trade ta kes place within the EU (Box 1.2). The proportion 
varies considerably across member States. In 2011, the highest shares of intra-EU trade (about 
80%) were recorded for Luxembourg, the Czech Republic and Slovakia, with this ratio falling to 
51.2% in Greece and 49.4% in the United Kingdom.
5  
Box 1.2 Export performance in the EU 
The EU-27 is the largest trading entity in the wo rld. In 2012, manufactured  goods represented some 
80% of its goods exports by value. The sector also  provides employment to over 33 million people.  
Exports of goods from the EU (as a single trading enti ty) have continued to perform positively during the 
last decade, and recovered rapidly from the shar p drop between 2008 and 20 09 in the middle of the 
global economic crisis. However, despite the increase in the value of exports from the EU, the growth 
rate has actually been lower than that of world to tal exports and, as a result, the EU's share in the 
global export market has declined markedly ov er the last decade, denoting a deteriorating 
competitiveness vis-à-vis  its main trading partners (Chart 1.7).  
Export performance varies considerably among me mber States. While exports from some, including 
Germany, Netherland and Austria, have continuously increased at a relatively fast pace (except for the 
drop between 2008 and 2009), export growth in some other member States, mainly the southern 
European countries, has been modest (Chart 1.8). Ar guably, these figures point to a substantial export 
market share loss in these countries.  
The weak increase in exports of some member States tends to reflect unfavourable competitiveness 
figures. Looking at their price competitiveness fact ors, for example, wage growth has continuously 
outstripped productivity gains; and as a result, unit labour costs and real effective exchange rate (REER) 
have risen significantly. Figures also show that the good performance of Germany in reining in its 
productivity-adjusted wages stems from, among other fact ors, a well-tuned labo ur policy. Since 2000, 
unit labour costs have increased only by 5% in Germanya, while they have risen by between 25% and 
35% in other member States in the Eurozone.b 
In addition, the diversity in economic structures with in the EU has also contributed to diverging export 
performance profiles; and the global  economic and financial crisis has exacerbated these differences.  
The limited success of most southern European countr ies in taking advantage of  the increasing volume 
of world trade reveals their constrained flexibility to  tap the opportunities offered by changing global 
trade patterns. They have registered slower geograph ical, sectoral, and technological diversification in 
order to redirect their exports to fast-growing mark ets or towards products with higher value added, 
reflecting their weaker national mechanisms for, inter alia , resources deployment across sectors, and 
innovation and quality upgrading. 
On a different note, the good performance of the research and innovation systems, and the friendly 
business environment characterized by access to fi nance and good infrastructure in Germany, have 
enhanced productivity in their enterprises and prompted the move toward higher value products.c  
The EU is the main export market for its member States. In 2010, intra-EU ex ports of goods accounted 
for 64% of total exports. This was far larger than the level recorded for extra-EU exports. Much as this 
might suggest strong regional integration, it is al so the evidence of weak export dynamics towards the 
fast growing economies of Asia and Latin America. 
a Unit labour cost is one of the competitiveness indicators in the Commission's Scoreboard for the 
surveillance of macroeconomic imbalances. 
b Eurostat online database. Viewed at 
http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/.  
c European Commission (2012), Member States' Competitiveness Performance and Policies and 
Industrial Performance Scoreboard . Viewed at: http://ec.europa.eu/enterprise/policies/industrial-
competitiveness/monitoring-member-states/files/ms_comp_report_2012_en.pdf . 
Source: WTO Secretariat.  
                                               
5 Eurostat online information. Viewed at 
http://epp.eurostat.ec.europa.eu/statistics_explained/ index.php/International_trade_in_goods#Further_Eurost
at_information .   WT/TPR/S/284 • European Union 
 
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  Chart 1.7 EU exports and share in world total exportsa 
0246810121416182022
02004006008001,0001,2001,4001,6001,800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Exports in € billion
Share in world total exports
Exports in valueShare in world (%)
 
a Extra-EU-27 exports.  
Source: Eurostat online  database. Viewed at: 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [March 2013] .  
Chart 1.8 Selected EU nations, ex port volumes of goods and servicesa 
80100120140160180200
00 01 02 03 04 05 06 07 08 09 10 11 12Germany Greece Spain France
Italy Netherlands Austria Portugal(Indices, 2000=100)
b 
 
a Including intra-EU exports. Seasonally ad justed and adjusted data by working days. 
b Provisional data for Greece. Data are available up to 2011 Q1. 
Source: Eurostat online  database. Viewed at: 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [March 2013]. 
1.4  Services trade 
1.33.  Both services imports and exports increa sed in 2010 and 2011 while the surplus in services 
trade also increased, from €83 billion in 2009 to €121 billion in 2011. "Other business services" is the largest category of export services with 30%, followed by transportation (22%), travel (14%), 
and financial services (8%) (Table 1.2). Exports of transportation services increased by nearly 
1 percentage point, whereas other business, government, insurance, services exports declined. 
Imports of transportation services showed the bi ggest increase in absolute terms, by nearly 
3 percentage points and second biggest in relative terms (after financial services, which increased 
by 20%).  WT/TPR/S/284 • European Union 
 
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  Table 1.2 Trade in services, 2009-11 
(€ billion and %) 
 EU-27 exports EU-27 imports 
2009 2010 2011 2009 2010 2011 
Total (€ billion) 512.2 566.6 603.9 429.1 463.6 482.9 
  % of total services exports % of total services imports 
Transportation 21.5 23.2 22.4 21.0 23.8 23.7 
Travel 13.5 13.5 14.2 20.0 19.4 18.9 
Other services 64.9 63.3 63.4 56.0 53.8 54.6 
Communications services 2.5 2.8 2.9 3.1 3.2 3.2 
Construction services 3.8 3.3 3.2 2.3 1.7 1.7 
Insurance services 4.4 4.0 3.0 2.5 2.4 2.3 
Financial services 8.4 8.4 8.4 3.7 4.0 4.5 
Computer and information services 6.4 6.7 6.8 3.2 3.2 3.0 
Royalties and license fees 5.8 6.0 6.4 9.9 9.6 9.4 
Other business services 31.1 29.8 30.3 28.3 26.8 27.9 
Personal, cultural, and recreational services 1.0 1.1 1.1 1.2 1.3 1.2 
Government, n.i.e. 1.5 1.3 1.2 1.7 1.6 1.3 
Branding, quasi-transit adjustment 0.0 0.0 0.0 3.0 2.9 2.8 
Services not allocated 0.1 0.1 0.0 0.1 0.1 0.1 
Selected trading partners       
EFTA 17.1 16.5 16.9 14.2 13.9 13.9 
Switzerland 13.4 13.1 13.3 11.5 11.4 11.3 
Russia 3.7 4.2 4.0 2.7 3.0 3.0 
Turkey 1.3 1.5 1.6 2.7 3.0 3.1 
Africa 8.0 7.4 7.5 7.9 7.9 6.7 
Egypt 0.6 0.5 0.5 1.5 1.5 1.1 
South Africa 1.2 1.2 1.2 1.0 1.0 0.9 
Morocco 0.6 0.5 0.6 0.9 0.9 0.8 
Nigeria 0.8 0.7 0.9 0.4 0.4 0.4 
America 35.6 35.3 34.9 41.2 40.2 39.9 
United States 25.0 24.5 24.1 30.4 29.3 29.0 
Canada 2.4 2.6 2.6 1.9 2.1 2.1 
Brazil 1.9 1.7 1.9 1.4 1.4 1.5 
Mexico 0.9 1.0 1.0 0.6 0.7 0.7 
Asia 24.3 25.1 25.2 20.9 22.0 22.7 
China (except Hong Kong, China) 3.7 4.2 4.3 3.3 3.7 3.8 
Japan 3.6 3.5 3.6 3.1 3.3 3.3 
Singapore 2.3 2.4 2.7 1.9 2.1 2.4 
India 1.8 1.9 1.9 1.8 2.0 2.2 
Hong Kong, China 1.5 1.6 1.6 1.6 1.6 1.7 
Thailand 0.5 0.4 0.4 1.1 1.0 1.0 
Republic of Korea 1.3 1.5 1.5 0.9 1.0 0.9 
Australia 2.5 2.7 2.6 1.4 1.5 1.5 
Source:  Eurostat. 
1.34.  The United States remains the largest ex port (24%) and import (29%) partner of the EU, 
though its share in both has been declining since 2000. Switzerland remains the second largest importer and exporter of services.  
1.5  Foreign direct investment (FDI) 
1.35.  The EU continues to be the world's largest recipient and supplier of FDI. In addition, it 
continues to be a net investor in the rest of the world. Both stocks held by the EU and those held 
by the rest of the world have risen steadily during  the last years (Chart 1.9); however the trend of 
flows reflected the impact of the financial turmoil. 
1.36.  After a significant decrease in its outward and inward flows between 2007 and 2009, there 
was some increase in 2011, although below the record peaks of 2007 (Table 1.3). The 
United States, Switzerland, Canada, and Brazil ar e the main partners, with Brazil increasingly 
becoming an important destination for EU investors, as outflows to Brazil tripled from 2008 to 2011. WT/TPR/S/284 • European Union 
 
- 23 - 
 
  Chart 1.9 FDI flows and stocks, 2004-11 
(€ billion) 
0100200300400500600
01,0002,0003,0004,0005,0006,000
2004 2005 2006 2007 2008 2009 2010 2011
Extra‐EU‐27 outward stocks Extra‐EU‐27 intward stocks
Outflows to extra‐EU Inflows from extra‐EUStocks Flows
 
Source: Eurostat online  database. Viewed at: 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [March 2013].  
Table 1.3 Distribution of  FDI stocks, 2005 and 2009-11 
(€ billion and %)  
 Outward stock 
2005 2009 2010 2011 Share 2011 
(%) 
World 6,305.1 9,589.7 10,590.7 11,920.0 100.0 
Intra EU-27 3,878.9 5,838.7 6,343.8 6,936.6 58.2 
Extra EU-27 2,426.2 3,751.0 4,247.0 4,983.5 41.8 
Major partners      
United States 844.6 1,204.7 1,275.1 1,421.0 11.9 
EFTA 350.4 582.3 639.4 697.3 5.9 
Switzerland 309.7 518.5 543.8 598.2 5.0 
Norway 38.7 61.5 91.9 94.9 0.8 
Brazil 74.1 139.7 200.2 238.9 2.0 
Canada 94.3 166.2 196.9 221.6 1.9 
Russia 32.9 99.1 130.6 166.8 1.4 
Australia 53.9 81.2 118.9 124.9 1.0 
Hong Kong, China 87.3 90.2 110.9 124.0 1.0 
Singapore 49.2 95.6 110.1 122.8 1.0 
Chinaa 27.5 63.9 79.9 101.5 0.9 
Japan 90.3 81.8 88.3 85.8 0.7 
South Africa 47.2 72.2 75.6 79.5 0.7 
Mexico 42.5 61.0 75.1 76.7 0.6 
Turkey 23.5 52.5 63.5 73.5 0.6 
India 10.6 27.4 34.8 46.4 0.4 
Argentina 38.0 41.7 48.1 44.3 0.4 
Republic of Korea 28.5 30.0 36.8 39.1 0.3 
Nigeria 14.6 27.8 28.5 32.4 0.3 
Indonesia 11.2 17.5 20.9 27.0 0.2 
Egypt 8.3 23.4 25.2 26.3 0.2 
Chile 18.2 19.5 24.9 25.0 0.2 
Bolivarian Republic of 
Venezuela 9.4 16.3 18.9 24.8 0.2 
Malaysia 8.0 13.3 21.9 24.0 0.2 WT/TPR/S/284 • European Union 
 
- 24 - 
 
   Outward stock 
2005 2009 2010 2011 Share 2011 
(%) 
Ukraine 7.8 13.2 22.8 23.7 0.2 
Croatia 8.2 16.8 20.1 21.5 0.2 
Colombia 7.2 13.0 14.8 12.7 0.1 
Uruguay 3.4 5.3 6.4 6.9 0.1 
Israel 3.6 5.7 5.0 6.4 0.1 
 
 Inward stock 
2005 2009 2010 2011 Share 2011 
(%) 
World 5,690.7 8,507.1 9,168.1 10,119.7 100.0 
Intra EU-27 3,855.6 5,723.7 6,025.3 6,312.9 62.4 
Extra EU-27 1,835.1 2,783.3 3,142.8 3,806.8 37.6 
Major partners      
United States 874.8 1,089.7 1,240.0 1,344.2 13.3 
EFTA 304.0 418.3 476.7 555.5 5.5 
Switzerland 245.6 340.0 395.9 467.3 4.6 
Norway 45.4 64.4 68.2 74.6 0.7 
Brazil 8.1 63.9 85.2 77.8 0.8 
Canada 76.2 125.0 144.0 137.6 1.4 
Russia 12.1 46.9 50.6 53.1 0.5 
Australia 22.7 30.2 29.5 34.3 0.3 
Hong Kong, China 16.8 27.5 41.5 63.9 0.6 
Singapore 28.5 50.1 60.3 67.3 0.7 
Chinaa 1.2 5.9 6.4 15.0 0.1 
Japan 78.2 126.8 132.2 144.2 1.4 
South Africa 4.3 8.2 9.1 8.1 0.1 
Mexico 9.1 16.8 20.2 20.4 0.2 
Turkey 6.9 7.5 8.2 8.9 0.1 
India 2.5 5.5 7.3 10.1 0.1 
Argentina 2.0 -0.3 -1.5 2.5 0.0 
Republic of Korea 6.2 10.9 12.7 11.2 0.1 
Nigeria 2.8 5.4 7.5 7.0 0.1 
Indonesia -2.6 -2.6 -2.2 -2.5 0.0 
Egypt 0.6 5.5 2.8 2.7 0.0 
Chile 0.8 3.6 1.4 2.1 0.0 
Bolivarian Republic of 
Venezuela 2.0 3.5 4.0 8.2 0.1 
Malaysia 1.7 3.7 4.2 4.1 0.0 
Ukraine 0.4 2.7 1.5 2.0 0.0 
Croatia 0.6 0.7 1.2 0.8 0.0 
Colombia 0.3 1.9 1.8 2.2 0.0 
Uruguay 0.8 4.2 2.7 2.9 0.0 
Israel 5.7 20.3 25.4 28.1 0.3 
a Except Hong Kong, China.  
Source:  WTO Secretariat, based on Eurostat online database, "EU direct invest ments: main indicators 
(bop_fdi_main)". Viewed at: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database  [March 2013].  
1.37.  Between 2009 and 2010, the stock of outward FDI increased by about €1,000 billion 
(including intra EU). Intra-EU investments a ccounted for about 60% of the total. While the 
United States continues to hold the biggest share of outward stocks of FDI (11%), EFTA countries (Switzerland and Norway) are also important partners. 
1.38.  In 2010, the United States accounted for over 40% of the EU's inward stocks of FDI from 
the rest of the world (extra-EU). Most US investments were made in financial and insurance WT/TPR/S/284 • European Union 
 
- 25 - 
 
  activities and manufacturing (one third of the latter being in metal and machinery 
manufacturing).6 
1.39.  Other countries with significant shares of inward FDI stocks in the EU-27 included Canada; 
Japan; Brazil; Singapore; Hong Kong, China; and Russia. Canada and Japan held 15% and 4% 
more FDI stocks respectively in 2010 compared with the previous year. In 2010, the highest 
annual growth among these partners was achieved by Hong Kong, China (51%), followed by Brazil (34%) and Singapore (21%). 
 
                                               
6 Eurostat online information. Viewed at: 
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Foreign_direct_investment_statistics . WT/TPR/S/284 • European Union 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  Legal and Inst itutional Framework 
2.1.  There have been no major changes to th e legal and institutional framework for trade and 
investment policies in the European Union (EU)  since the Treaty on the Functioning of the 
European Union (TFEU, also known as the Lisbon Treaty) came into effect in December 2009. The 
Lisbon Treaty clarifies the division of competences between the EU and its member States, and "draws up a non-exhaustive list of fiel ds concerned in each case" (Table 2.1).
1 
Table 2.1 Competences of the EU 
 Definition Field  
Exclusive 
competence  
(TFEU, Article 3) Only the EU is able to legislate and 
adopt binding acts. The member States' role is limited to applying these acts, unless the Union 
authorizes them to adopt certain 
acts themselves   Customs union 
 Common commercial policy 
 Agriculture and fisheries only for 
conservation of resources  
 Competition (establishing rules 
necessary for the functioning of the internal market) 
 International agreements 
 Monetary policy (for those members 
whose currency is the euro) 
Shared 
competence  
(TFEU, Article 4) The EU and the member States 
may adopt binding acts. However, 
the member States may do so 
only if the EU has not exercised its 
competence or has decided not to   Agriculture and fisheries (except for 
conservation of resources) 
 Internal market  
 Consumer protection (including 
technical regulations, sanitary and 
phytosanitary issues) 
 Development cooperation and 
humanitarian aid 
 Economic, social, and territorial 
cohesion 
 Energy 
 Environment 
 Freedom, security, and justice 
 Public health 
 Research, technological development, 
and space 
 Social policy 
 Transport 
Trans-European networks 
Supporting 
competence  
(TFEU, Article 6) The EU may only intervene to 
support, coordinate or 
complement the action of Member states. Therefore, it has no legislative power and may not 
interfere in the exercise of these 
competences reserved for member States   Administrative cooperation 
 Civil protection 
 Culture 
 Education, vocational training, youth, 
and sport 
 Human health 
 Industry 
Tourism 
Coordination 
competence  
(TFEU, Article 5) The EU may adopt broad 
guidelines to be followed by 
member States to ensure 
coordination of their policies within 
the Union  Economic policy 
 Employment policy 
 Social policy  
                                               
1 European Union online information, "Division of competences within the European Union". Viewed at: 
http://europa.eu/legislation_summaries/institutional_affairs/treaties/lisbon_treaty/ai0020_en.htm  [14.03.13]. WT/TPR/S/284 • European Union 
 
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   Definition Field  
Other 
competence    
Treaty on EU, 
Article 24  The EU has competence in all 
fields connected with the Common 
Foreign and Security Policy 
(CFSP). However, the EU may not 
adopt legislative acts in this field. 
In addition, the Court of Justice of 
the EU does not have competence 
to give judgment in this area  Common foreign and security policy  
TFEU, Article 352  The "flexibility clause" enables the 
EU to act beyond the power of 
action conferred upon it by the 
Treaties if the objective pursued so requires. However, this clause 
is framed by a strict procedure 
and by certain restrictions in terms of its application.  
Source: Europa online information. Viewed at: 
http://europa.eu/legislation_summaries/institutional_affairs/treaties/lisbon_treaty/ai0020_en.htm ; 
and European Commission's Euro pean citizens' initiative online information. Viewed at: 
http://ec.europa.eu/citizens-initiative/public/competences/faq .  
2.2.  The EU's trade and trade-related policies are formulated and implemented by means of two 
types of legislation:  
 primary legislation, such as treaties and other agreements of similar status, where the EU 
concludes and implements the Common Commercial Policy (CCP); and  
 secondary legislation (Table A2.1)2, such as:  
 regulations (with general application) that are binding and directly applicable to all 
member States;3 
 directives that require transposition into national law and practice; 
 decisions that are binding on those addressed in the decision; and 
 recommendations and opinions, that are based on primary legislation but are not 
legally binding. 
2.3.  Under the Lisbon Treaty, the EU has exclusive competence, inter alia,  for trade and 
investment policies and member States may develop legal acts in these areas only when 
authorized by the EU. The scope of common commercial policy covers trade in goods, trade in services, trade aspects of intellectual property ri ghts, foreign direct investment, and trade defence 
measures.
4 In addition to the areas of exclusive competences, the EU may acquire exclusive 
external competence to the extent that it ha s exercised internally shared competences (for 
example, in the field of transport). Member States retain varying degrees of independent 
regulatory authority, which may result in the adopti on of national measures that affect trade within 
the EU, and with non-EU countries.  
2.4.  The EU's trade policy is decided through th e "ordinary legislative procedure" under which the 
Commission puts forward legislative proposals to the European Parliament and the Council which 
may, in turn, propose amendments. If the Parliament and the Council cannot reach agreement on 
draft legislation at a second reading, a conciliation committee composed of equal numbers of 
                                               
2 Article 288, TFEU. 
3 The Commission indicates that trade policy is admi nistered, in general, in the form of regulations 
which ensures the uniformity implementation of the common commercial policy EU-wide. 
4 Article 207 (1) TFEU. WT/TPR/S/284 • European Union 
 
- 28 - 
 
  representatives from both institutions is convened to negotiate a joint text. If the conciliation 
committee reaches an agreement, the text may be adopted as an EU act.  
2.5.  The Commission implements trade policy through "delegated acts" and "implementing acts".5 
Under "delegated acts", the legislators (i.e. the Council and the European Parliament) delegate 
power to the Commission to adopt non-legislative acts of general application, in order to 
supplement or amend certain non-essential elements of the legislative act. Under "implementing acts", the Commission, where specified in the primary legislation, acquires the necessary 
implementing powers, in instances where uniform conditions for implementing legally binding 
Union acts are needed. The Commission's exercise of implementing powers is controlled by the member States through "comitology", the procedure whereby committees composed of representatives from member States assist the Commission in executing its "implementing 
powers" conferred on it by the legislator. 
2.6.  New rules of "comitology" came into effect on 1 March 2011.
6 According to the Commission, 
these new rules not only increase the transparency  and effectiveness of policy implementation in 
the area of trade policy, but also give the Commission more flexibility and greater political 
responsibility.7 The adaptation of trade instruments to th e new "comitology" rules is provided by 
the Trade Omnibus Proposals (Omnibus I and II). At  the time of drafting this Report, the Trade 
Omnibus Proposals had not yet been adopted by the Council and the European Parliament.  
2.7.  The Trade Omnibus Proposals form part of the alignment of legislation to the new regime for 
implementing and delegated acts introduced by the Lisbon Treaty. Trade Omnibus I, adopted by 
the Commission in March 2011, converts all procedures that were not based on the 1999 
comitology decision into implementing or delegated acts. The Commission noted that Omnibus I 
deals with 24 pieces of legislation, largely trade defence instruments (the anti-dumping regulation, safeguard legislation etc.). Trade Omnibus II, adopted by the Commission in June 2011, converts 
existing decision-making systems based on the 1999 comitology decision. The Commission noted 
that Omnibus II concerns 12 pieces of legislation. 
2.8.  Before commencement of trade negotiations  with a non-EU territory or territories, the 
Commission must acquire prior authorization from the Council whose decisions are taken by 
qualified majority voting (QMV).
8 The Commission must conduct negotiations in consultation with a 
special committee appointed by the Council (usually the TPC Committee), and within the framework of relevant Council negotiating directiv es. The Commission must report the progress of 
negotiations regularly to the special committee and to the European Parliament. 
2.9.  On ratification of trade agreements, the Eu ropean Parliament and the Council vote on trade 
agreements as a whole. The Council may agree to the provisional application of a trade 
agreement, where parliamentary consent is not required. However, if the European Parliament 
were to refuse to consent to the conclusion of an agreement, the provisional application would have to be discontinued. 
2.10.  The European Parliament ratifies trade ag reements by simple majority, while the Council 
generally needs a qualified majority to give cons ent. Unanimity by the Council is required for 
agreements on trade in services, trade-related intellectual property rights, and foreign direct investment that include "provisions for which unanimity is required for the adoption of internal 
rules", as well as for agreements on trade in cultural and audiovisual services that "risk prejudicing 
the Union's linguistic and cultural diversity", and for agreements in the field of social, education, 
                                               
5 Article 290 and 291(2), TFEU. 
6 Regulation (EU) No. 182/2011 of the European Parliament and of the Council of 16 February 2011 
(OJ L 55/13, 28 February 2011). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:055:0013:0018:EN:PDF . 
7 WTO document WT/TPR/M/248/Add.1, 30 August 2011. 
8 Following the enlargement of the EU, under the qu alified majority voting (QMV) system there are 
345 votes divided among the member States roughly according to population with 255 votes required for a QMV. Germany, France, Italy, and the United Kingdom have 29 votes each; Spain and Poland have 27 votes 
each; Romania has 14 votes; the Netherlands has 13 vote s; Belgium, the Czech Republic, Greece, Hungary, 
and Portugal have 12 votes each; Austria, Bulgaria, and Sweden have 10 votes each; Denmark, Finland, 
Ireland, Lithuania, and Slovakia have 7 votes each; Cy prus, Estonia, Latvia, Luxembourg, and Slovenia have 
4 votes each; and Malta has 3 votes. WT/TPR/S/284 • European Union 
 
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  and health services that "risk seriously disturbing the national organization of such services and 
prejudicing the responsibility of a member State to deliver them".  
2.11.  For agreements that go beyond the competence of the EU such as common commercial 
policies, ratification by national parliaments of individual member States may be required.  
2.2  Trade Policy Objectives and Consultation 
2.12.  The Lisbon Treaty describes common commerc ial policy as an integral part of the EU's 
overall external action. The EU's trade policy is required to address developmental, environmental 
and social objectives, and contribute to the objectives set out in the Treaty on the European Union, 
including development and consolidation of democracy and the rule of law, and respect of human rights. 
2.13.  According to the European Commission, the objectives of the EU's trade policy for the next 
decade include "tailoring trade and investment policy for those countries most in need".
9 The EU 
intends to differentiate between developing countri es and focus on those most in need. Among the 
proposals put forward by the Commission are: the reform of the GSP scheme; the use of new rules 
of origin to improve the complementarity between  trade and development; to enhance investment 
provisions in trade agreements to grant legal certainty to investors, and thus to enhance FDI potential; to provide market access to certain services sectors for least-developed countries; and 
to conclude Economic Partnership Agreements with interested ACP countries. 
2.14.  DG Trade maintains the Civil Society Dialog ue, which provides registered stakeholders with 
an opportunity to participate in meetings with the Commission on trade and trade-related issues. In addition, DG Trade holds public consultations on major policy initiatives where participation is 
open to EU and non-EU parties. Proposed regulations are published in the Official Journal of the 
European Union  in the C series; and the final regulations are published in the L series. The 
Commission indicated that its major political priorities, including legislative proposals, are 
presented in its Annual Work Programme; roadmaps are also available on the internet providing 
details of the content and timing of each planned regulatory initiative, including public stakeholder 
consultation and impact assessment.
10 
2.15.  The Commission carries out impact-assessment analysis to support its decision-making for 
all proposals with significant direct impact, including in the trade policy area.11 The 
impact-assessment process assesses different policy options by comparing both potential benefits and costs in economic, social and environmen tal terms. The system relies on stakeholder 
consultations, and impact-assessment reports are published once the Commission's decision has 
been taken.
12 In the case of trade negotiations, the Commission carries out "trade sustainability 
impact assessments" (SIAs) to analyse the economic, environmental and social impact of the EU 
trade agreements for the EU and its trading partners. SIAs inform negotiations and are 
independent studies conducted by external consul tants, involving comprehensive consultation of 
stakeholders to ensure a high degree of transp arency and taking account of the knowledge and 
concerns of relevant interest groups both in the EU and in the trading partner. The Commission is 
committed to better assessing the impact of trade initiative including carrying out ex-post analysis of agreement implementation.
13 SIAs are also published online.14 
                                               
9 European Commission document COM(2012) 22 final, 27 January 2012. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2012/january/tradoc_148992.EN.pdf . 
10 European Commission online information, "E uropean Commission at work". Viewed at: 
http://ec.europa.eu/atwork/key-documents/index_en.htm  
11 European Commission online informatio n, "Impact Assessment". Viewed at: 
"http://ec.europa.eu/governance/impact/index_en.htm  
12 European Commission online information, "List of Impact Assessment". Viewed at: 
http://ec.europa.eu/governance/impact/ia_carried_out/cia_2013_en.htm  
13 European Commission document COM(2012) 22 final, 27 January 2012. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2012/january/tradoc_148992.EN.pdf . 
14 European Commission online information, "Sus tainability impact assessments".  Viewed at: 
http://ec.europa.eu/trade/analysis/sustainability-impact-assessments/assessments/ . WT/TPR/S/284 • European Union 
 
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  2.16.  During the period under review, Croatia signed an accession treaty with the EU15; accession 
negotiations are ongoing with Iceland, Turkey and Montenegro. 
2.3  Participation to the World Trade Organization 2.17.  As stated in the Commission Communication, the multilateral agenda remains a priority for 
the EU, and the EU's "absolute priority must be to  preserve and strengthen the multilateral trading 
system".
16  
2.18.  The EU is an original member of the WTO and each member State is also a Member. The 
EU, through the European Commission, represents all the member States in the WTO. The EU is a 
contracting party to the Agreement on Government Procurement (GPA), a participant in the Information Technology Agreement (ITA), and a signatory to the Agreement on Trade in Civil 
Aircraft. 
2.19.  Following the entry into force of the Ge neva Agreement on Trade in Bananas, the EU 
submitted modifications and rectificatio ns to the EU-15 schedule on 24 July 2012
17, which was 
certified, effective 27 October 2012.18 The EU's tariff concessions and agricultural commitments 
regarding agricultural market access, domestic support, and export subsidies to reflect the 
enlargement from 15 to 27 member States have not yet been formally agreed in the WTO and consolidated in an EU-25 or EU-27 goods schedule.
19 In the context of this Trade Policy Review, 
the Commission indicated that the EU will submit its EU-25 schedule for certification in 2013. 
Negotiations to consolidate the EU's services commitments following the accession of Bulgaria and Romania have not yet been concluded. With regard to the certified EU-25 services schedule, 18 EU member States have ratified the schedule, as of October 2012.
20 
2.20.  The EU submitted numerous notifications to  the WTO during the review period, covering, 
inter alia , agriculture, trade remedies, technical regulations, regional trade agreements, and 
preferential rules of origin (Table A2.2). In 2013, the EU submitted five notifications under 
Article III:3 of the GATS, covering legislation that entered in force in 2012.21 Three of these 
notifications were related to the financial services  sector, including regulations on short selling and 
credit default swaps; and over-the-counter derivatives, central counterparties and trade 
repositories, and the Solvency II Directive (section 4.3.1). The other two notifications concerned 
transport services, including the Single Railway Area Directive, and Regulation on Aircrew (section 4.3.3). 
2.21.  During the period under review, the EU wa s involved in three new cases as a respondent, 
and in five new cases as a complainant under th e Dispute Settlement Mechanism (Table A2.3). In 
addition, the EU was a third party in 13 new cases. 
2.4  Preferential Trade Agreements and Arrangements 
2.4.1  Unilateral preferences 
2.22.  The EU's GSP consists of three arrangements:   Standard GSP, which provides tariff preferences to eligible developing countries;  
 GSP+, which offers additional tariff reductions to "vulnerable" countries that implement 
international conventions in the fields of human rights, core labour standards, sustainable development, and good governance; and  
                                               
15 Official Journal  of the European Union , L112, Vol. 55, 24 April 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:112:FULL:EN:PDF  [14.12.12]. 
16 European Commission document COM(2012) 22 final, 27 January 2012. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2012/january/tradoc_148992.EN.pdf . 
17 WTO document G/MA/TAR/RS/297, 27 July 2012. 
18 WTO document WT/Let/868, 30 October 2012. 
19 WTO document G/MA/W/23/Rev.8, 23 April 2012. 
20 WTO document S/C/M/111, 21 November 2012. 
21 WTO documents S/C/N/684, S/C/N/685, S/C/N/686, S/C/N/687, and S/C/N/688, 13 March 2013. WT/TPR/S/284 • European Union 
 
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   Everything But Arms (EBA), which offers duty -free and quota-free access for all products 
except arms and ammunitions from least-developed countries (LDCs). 
2.23.  Under Regulation (EU) No. 978/2012 of 25 October 2012, the EU adopted a new General 
Scheme of Preferences (GSP) which will appl y on 1 January 2014 while current preferences 
provided in Regulation (EC) No. 732/2008 apply till 31 December 2013.22  
2.24.  According to the European Commission, the new GSP scheme will concentrate GSP benefits 
on fewer countries because 34 countries have equivalent or better preferential access under other 
arrangements (such as free trade agreements), and for 20 countries classed as high or 
upper-middle income for the most recent three years by the World Bank. Also, 33 overseas countries and territories (OCTs) of developed countries, most of which are EU OCTs, that have alternative market access arrangements will no longer be eligible for preferences.
23 Thus when the 
new preferences apply, the number of GSP benefi ciary countries will decrease from the current 
176 to 89.24 The EU considers that the impact of removing "more advanced developing countries" 
out of GSP preferences is small, and the "mar ginal drop in exports by the more advanced 
economies can potentially provide significant opportunities for the poorest".25 
2.25.  Under the graduation system in the GSP regu lations, imports of a particular product from a 
developing country no longer have preferential a ccess when they exceed a certain level, defined as 
a percentage of total imports of that product from all GSP beneficiaries. Under Regulation (EU) 
No. 978/2012, the thresholds for graduation will increase to 17.5% (from 15% previously) in 2014 and for textiles 14.5% (up from 12.5%). Production sections used for graduation increase from 21 to 32. The Commission noted that this finer product classification avoids graduation 
"overshoots". Other changes to the graduation syst em also mean that the GSP+ arrangement will 
be exempted from graduation.
26 A list of graduated sectors for 2014-16 is available on the 
Commission website.27 
2.26.  Under the new regulation, beneficiary countries are required to effectively implement 
conventions in order to maintain preferences.28 Furthermore, eligible countries need to apply for 
GSP+ preferences, even if they are GSP+  beneficiaries under the current scheme. 
2.27.  GSP, GSP+ and EBA treatment may be temporarily withdrawn in certain circumstances, 
including: serious and systematic violation of human and labour rights; exported goods being made by prison labour; serious shortcomings in customs control; serious and systematic unfair trading practices, including those affecting the suppl y of raw materials that have an adverse effect 
on the EU's industry and have not been addres sed by the beneficiary country; and serious and 
systematic infringement of the objectives adop ted by Regional Fishery Organisations or other 
international arrangements.
29 If the unfair trading practices are subject to EU anti-dumping or 
countervailing measures, GSP treatment of the products concerned may not be withdrawn. 
Temporary withdrawal is preceded by an investigation.  
2.28.  The new regulation provides that EU pr oducers may request initiation of a safeguard 
investigation if the GSP imports in volumes and/or at prices cause or threaten to cause serious 
deterioration in the economic and/or financial situation of the EU producers; the last regulation did not offer this provision to EU producers, although the same substantive conditions applied. Special safeguards for clothing are extended to plain textiles and to ethanol. The EU has not removed any 
                                               
22 Technically, the current GSP scheme unde r Council Regulation No. 732/2008 expired on 
31 December 2011. However, under Regulation No. 512/2011 it has been extended until 31 December 2013. 
23 European Commission DG Trade online information.  Viewed at:  http://ec.europa.eu/trade/wider-
agenda/development/generalised-system-of-preferences/  [January 2013]. 
24 The Commission pointed out the di stinct between "eligible countries" and "beneficiary countries". 
According to the Commission, high or upper middle inco me economies remain "eligible" for the GSP but do not 
receive tariff preference as "beneficiaries". In case situat ion changes (e.g. no longer classified as high or upper 
middle income, or other preferential arrangements terminat ed), the "eligible countries" will be back on the list 
of beneficiaries again. 
25 European Commission (2013). 
26 European Commission (2013). 
27 Commission Implementing Regulation (EU) No. 1213/2012, viewed at: 
http://trade.ec.europa.eu/doclib/docs/2012/december/tradoc_150166.pdf  [18.12.12] 
28 Article 15, Regulation (EU) No. 978/2012. 
29 Article 19, Regulation (EU) No. 978/2012. WT/TPR/S/284 • European Union 
 
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  GSP preferences under the safeguard clause. Procedures regarding safeguard measures under the 
GSP will be published in 2013.  
2.29.  The new regulation will extend the validity  of standard GSP to ten years (currently three 
years), and offers at least a one year transition period for graduation and/or changes in the 
beneficiaries' list. More tariff lines will be subject to preferential treatment under the new 
regulation.30 
2.30.  Under the current GSP scheme, there were two main developments. First, Cape Verde 
successfully requested and obtained GSP+ treatmen t. This provided for a smooth transition from 
its previous EBA status, which expired on 31 December 2011 as the country ceased to be a Least Developed Country according to the UN. The expiry took place after a transition period of four years. Second, an investigation was initiated in March 2012 to assess whether Bolivia's GSP+ 
preferences should be temporarily withdrawn. The investigation was subsequently closed in March 
2013, and Bolivia retained GSP+ preferences. 
2.31.  There was no change in the GSP rules of or igin during the review period (section 3.1.3). 
2.32.  Regarding other unilateral measures outside the GSP, tariff preferences were granted to six 
countries in the Western Balkans which expired in December 2011, those granted to Moldova which expired in December 2013 have been extended to 31 December 2015.
31 
2.4.2  Reciprocal preferences  
2.33.  The EU maintains the European Economic Area agreement with Iceland, Liechtenstein and 
Norway, allowing these countries to participate in the internal market for free movement of goods, capital and labour. Switzerland has several bilateral agreements with the EU, covering, inter alia , 
the free movement of persons, trade in agricultur al products, public procurement, technical barrier 
to trade, transport, research, taxation of savi ngs, and fighting against fraud. The EU also 
maintains Customs Unions with Andorra, San Marino and Turkey. 
2.34.  The EU has 33 FTAs with other countries (Table 2.2). The FTAs with Albania, CARIFORUM 
States, Chile, Croatia, Korea, the Former Yugoslav Republic of Macedonia, Mexico, and Montenegro, cover both goods and services. The EU considers that "new trade agreements go 
beyond import tariffs, whose importance has diminished, addressing regulatory barriers in goods, 
services and investment, intellectual property rights, government procurement, the protection of innovation, sustainable development and other important issues".
32 
Table 2.2 Active free-trade agreements signed by the EU, December 2012  
RTA name Coverage Date of entry into force 
European Economic Area (EEA) Services 1 January 1994 
EU-Albania Goods and services 1 December 2006 (G) 
1 April 2009 (S) 
EU-Algeria Goods 1 September 2005 
EU-Andorra Goods 1 July 1991 
EU-Bosnia and Herzegovina Goods 1 July 2008 
EU-CARIFORUM States EPA Goods and services 1 November 2008a 
EU-Chile Goods and services 1 February 2003 (G) 
1 March 2005 (S) 
EU-Croatia Goods and services 1 March 2002 (G) 
1 February 2005 (S) 
EU-Eastern and Southern Africa States Interim EPA Goods 14 May 2012
a 
                                               
30 15 new tariff lines were added to GSP as "non-s ensitive"; 4 tariff lines under GSP turned "non-
sensitive" from "sensitive"; and 4 ne w tariff lines are added to GSP+. 
31 Regulation (EU) No. 1336/2011 of the European Parliament and of the Council provides the extension 
for Western Balkans countries, and Regulation (EU)  No. 581/2011 of the European Parliament and of the 
Council for the extension for Moldova. 
32 European Commission document COM(2010) 612 final, 9 November 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0612:FIN:EN:PDF . WT/TPR/S/284 • European Union 
 
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  RTA name Coverage Date of entry into force 
EU-Egypt Goods 1 June 2004 
EU-Faroe Islands Goods 1 January 1997 
EU-Former Yugoslav Republic of Macedonia Goods and services 1 June 2001 (G) 
1 April 2004 (S) 
EU-Iceland Goods 1 April 1973 
EU-Israel Goods 1 June 2000 
EU-Jordan Goods 1 May 2002 
EU-Korea Goods and services 1 July 2011 
EU-Lebanon Goods 1 March 2003 
EU-Mexico Goods and services 1 July 2000 (G) 
1 October 2000 (S) 
EU-Montenegro Goods and services 1 January 2008 (G) 
1 May 2010 (S) 
EU-Morocco Goods 1 March 2000 
EU-Norway Goods 1 July 1973 
EU–Overseas countries and territories (OCT) Goods 1 January 1971 
EU-Palestinian Authority Goods 1 July 1997 
EU-Papua New Guinea/Fiji Goods 20 December 2009a 
EU-San Marino Goods 1 April 2002 
EU-Serbia Goods 1 February 2010 
EU-South Africa Goods 1January 2000 
EU-Switzerland-Liechtenstein Goods 1 January 1973 
EU-Syria Goods 1 July 1977 
EU-Tunisia Goods 1 March 1998 
EU-Turkey Goods 1January 1996 
a Date of provisional application. Not yet entered into force. 
Source:  WTO Regional Trade Agreem ents Information System (RTA-IS). 
2.35.  During the period under review, the FTA with Korea (goods and services) entered into force, 
with the EU eliminating 6,399 lines of customs du ty for imports from Korea. Together with the 
2,326 lines of already MFN duty free, 93.8% of th e EU's total imports from Korea are duty free. 
For those products for which the EU implements an "entry price scheme", the EU commits to remove the ad valorem  customs duty applicable in accordance with its commitments in the 
Agreement. The specific duty component for some of these products (including cucumbers, fresh 
pears and cherries, and unfermented grape juice and must) is eliminated immediately; others including fresh or chilled vegetables and fresh or dried fruit will be subject to tariff elimination within 2 to 20 years of entry into force of the Agreement, except for tomatoes, oranges, monreales 
and satsumas. 
2.36.  In addition, the FTA with Korea has provisions on non-tariff measures, inter alia , technical 
regulations, standards, and conformity assessmen t. For instance, for electronics originating in 
Korea or the EU, third-party testing or certificat ion for EMC or safety of covered products are 
eliminated except cases covered by the provisions on exceptions and emergency measures, and for motor vehicles and parts originating from Korea or the EU, they can access each other's market 
as long as they meet technical regulations corresponding to the relevant UN/ECE Regulations. The 
EU recognizes the equivalence for 74 different area s of technical regulations for which the UN/ECE 
Regulations exist.
33  
2.37.  The FTA with Korea also covers trade in services with a positive-list approach for services 
sectors. Market access and national treatm ent are granted, subject to conditions and 
qualifications, to the services and services providers/establishments and investors in the sectors inscribed in the lists of commitments (Table 2.3). The list of commitments does not include 
measures relating to qualification requirements and procedures, technical standards, and licensing 
requirements and procedures when they do not co nstitute a market access or a national treatment 
limitation within the meaning of the Agreement. The FTA with Korea also includes provisions with 
regard to sustainable development (e.g. labour, environment). 
                                               
33 WTO document WT/REG296/1/Rev.1, "Factual Pr esentation: Free-Trade Agreement between the 
European Union and the Republic  of Korea", 31 August 2012. WT/TPR/S/284 • European Union 
 
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  Table 2.3 The EU's services commitment under  the FTA, and comparison with its GATS 
commitments 
Sectors GATS FTA with Korea 
1. BUSINESS SERVICES   
A. Professional services √ Improved 
B. Computer and related services  √ Improved 
C. Research and development √ Improved 
D. Real estate √ Similar 
E. Rental/leasing serv ices without operators √ Similar 
F. Other √ Improved 
2. COMMUNICATION SERVICES   
A. Postal - New 
B. Courier - - 
C. Telecommunication  √ Improved 
D. Audiovisual - - 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Improved 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES √ Improved 
6. ENVIRONMENTAL SERVICES √ Improved 
7. FINANCIAL SERVICES   
A. All insurance and insu rance-related services √ Improved 
B. Banking and other financial services √ Improved 
8. HEALTH RELATED AND SOCIAL SERVICES √ Improved 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels an d restaurants √ Improved 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides √ Improved 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Improved 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways √ Improved 
C. Air  √ Improved 
D. Space - - 
E. Rail  √ Improved 
F. Road √ Improved 
G. Pipeline - New 
H. Services auxiliary to all modes of transport √ Improved 
I. Other √ Similar 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE √ Similar 
√ Commitments in the GATS schedule (full or partial). 
- No commitments. 
Note:  New: New commitments made under the Agreement. 
 Improved: Improved commitments made under th e Agreement compared to those under the GATS. 
 Similar: Similar commitments made under the Ag reement as those under the GATS (though with 
minor improvements). 
Source:  WTO Document WT/REG296/1/Rev.1, 31 August 2012. 
2.38.  The EU completed the technical negotiations on two FTAs during the review period: the 
agreement with Singapore on 16 December 2012 (exc ept on investment protection, on which talks 
continue), and the deep and comprehensive Free-Trade Agreement (DCFTA) with Ukraine as a part 
of a wider EU-Ukraine Association Agreement. Th ese two agreements had not been signed at the 
time of drafting this report. According to the Commission, the draft EU-Singapore FTA is 
considered to be of similar calibre to the EU-Korea FTA. The DCFTA with Ukraine foresees 
dismantlement of both import and export duties (with limited temporary exceptions for sensitive 
sectors), but also services and investment market access for internal EU market treatment, subject to conditions; the Agreement also contains  trade-related provisions on energy, a dispute 
settlement mechanism and commitments on  trade and sustainable development. WT/TPR/S/284 • European Union 
 
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  2.39.  During the review period, the interim Economic Partnership Agreement (EPA) with Eastern 
and Southern Africa States also entered into provisional application.34 The EU's trade relations with 
the African, Caribbean and Pacific (ACP) countries aim to be governed by EPAs, which are to replace unilateral preferences granted under the Cotonou Agreement until the end of 2007. The 
EPA programme involves seven regional configurations: CARIFORUM, Pacific, Central Africa, 
West Africa, Southern African Development Comm unity, East African Community, and Eastern and 
Southern Africa. As of January 2008, the EU ha s granted duty-free and quota-free (DFQF) access 
to all ACP countries that had initialled an EPA by the end of 2007.  
2.40.  Currently, the following EPAs are in provisional application: CARIFORUM region has 
concluded a "comprehensive EPA"; Papua New Guinea ratified the interim EPA in the Pacific region; and four countries in Eastern and Southern Africa (i.e. Madagascar, Mauritius, Seychelles, and 
Zimbabwe) ratified the ESA interim EPA. No other regions in Africa has concluded or ratified an 
EPA with the EU. In 2011, the Commission proposed that DFQF access be removed as of 1 January 2014 for those ACP countries that initialled an EPA in 2007 but have not yet signed and 
ratified it. The European Parliament proposed to extend this deadline to 1 January 2016. The 
Council has endorsed the 2014 date. At the time of writing this report, the legislative procedure to 
set the date continues between the Council, the Commission and the Parliament.  
2.41.  FTAs in force with Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian 
Authority, and Tunisia are part of Associatio n Agreements concluded in the context of the 
Euro-Mediterranean partnership. In December 2011, the Council adopted negotiating directives for Deep and Comprehensive Free Trade Areas (DCFTAs)  with Egypt, Jordan, Morocco and Tunisia, to 
"upgrade" the current trade agreements with these countries; negotiations on a DCFTA will be 
launched with Morocco in February 2013. 
2.42.  During the period under review, the EU signed two FTAs: the association agreement with 
Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama) on 
29 June 2012; and the trade agreement with Peru and Colombia on 26 June 2012. The EU expects provisional application of these two ag reements to enter into force in 2013. 
2.43.  The EU is involved in negotiations with Canada, India, Malaysia, Viet Nam, MERCOSUR, and 
the Gulf Cooperation Council, the negotiation with Viet Nam being launched in June 2012. An Association Agreement, including a DCFTA, betwee n the EU and Armenia, Georgia, and Moldova is 
under negotiation.
35 
2.44.  On 29 November 2012, the Commission was mandated to open free-trade negotiations with 
Japan. 
2.5  Foreign Investment 
2.5.1  Foreign investment regime 
2.45.  The EU's foreign investment policy has remained largely unchanged since the last Review. 
The Lisbon Treaty provides that foreign investment policy is an integral part of the common 
commercial policy, which remains an exclusive competence of the EU. 
2.46.  The EU is in the process of developing and implementing a comprehensive investment 
policy.36 The Commission believes that EU international investment policy should seek to ensure 
the uniform treatment of EU investors, and the ne twork of existing BITs resulting in an "uneven 
playing field for EU companies investing abroad, which depends on whether they are covered as a 
'national' under a certain Member State BIT or not."37 
                                               
34 An FTA may be provisionally applied while awaiting consent from the European Parliament and/or 
ratification by other signatories. Provision application should discontinue when the European Parliament refuse 
to consent, or other signatories do not ratify. 
35 Details of state-of-play of the EU’s FTA can be found on the Commission Memo, 21 December 2012. 
Viewed at: http://trade.ec.europa.eu/doclib/docs/2012/november/tradoc_150129.pdf  [19.12.12]. 
36 European Commission Memo (MEMO/12/977). Viewed at: http://europa.eu/rapid/press-
release_MEMO-12-977_en.htm  [18.12.12]. 
37 European Commission document COM(2010) 343 final, 7 July 2010.  Viewed at:  
http://trade.ec.europa.eu/doclib/docs/2010/july/tradoc_146307.pdf . WT/TPR/S/284 • European Union 
 
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  2.47.  In addition, the EU has concluded several international agreements with third countries with 
provisions on market access for foreign investment, and post-establishment national treatment and most-favoured-nation treatment for sectors liberalized by the parties. According to the 
European Commission, the EU has started filling the gap of "entry" or "admission" through both 
multilateral and bilateral agreements at EU level covering investment market access and 
investment liberalization.
38 
2.48.  On EU investment negotiations, the Commission intends to include investment provisions in 
the ongoing trade negotiations, and make investment protection an integral part of the free trade 
agreements, for example with Canada; or to pursue stand-alone investment agreements, for example with China. 
2.49.  The Commission considers that investor-to-state dispute settlement mechanisms ensure 
effective enforcement of investment agreements. Investor-state dispute settlement forms a key 
part of the inheritance that the EU receives from its member States BITs, and will be included in future EU investment agreements with other countries. 
2.50.  On 21 June 2012, the Commission released a draft Regulation establishing a framework for 
managing financial responsibility linked to inve stor-state dispute settlement tribunals established 
by international agreements to which the European Union is party. The regulation seeks to 
establish the legal and financial certainty for foreign investors in the EU when they have dispute 
complaints against the EU or its member States. Under the draft regulation, when an investor brings a claim: if the alleged measure is a member State measure and not required by EU law, the member State would bear the financial responsibility flowing from the dispute and may in principle 
also act to defend the claim; if the measure at issue is an EU measure or a member State measure 
mandated by EU law, the EU would bear the fina ncial responsibility and could act as defendant. 
The Commission indicated that the proposed provis ions ensure that any final award or settlement 
award is paid to the investor promptly, regardless of the decisions on the allocation of financial 
responsibility.
39 
2.51.  Article 63 of the Lisbon Treaty prohibits restrictions on capital movements among EU 
member States, and between EU and non-EU member s. Restrictions on direct investment from 
non-EU members that were in place before December 1993 (December 1999 for Bulgaria, Estonia, and Hungary) are exempt from this prohibition.
40 Exemptions are also granted to restrictions that 
are "justified on grounds of public policy or public security", and those taken "to prevent 
infringement of national law and regulations, in part icular in the field of taxation and the prudential 
supervision of financial institutions, or to lay down procedures for the declaration of capital movements for purposes of administrative or statistical information".
41 
2.52.  The same article of the Lisbon Treaty also prohibits restrictions on payments among EU 
member States and between member States and third countries. These provisions protect legitimate transfers, for example repatriation of profits from direct investment, to third countries. 
Article 66 provides that where, in exceptional circ umstances, movements of capital to or from third 
countries cause, or threaten to cause, serious difficulties for the operation of economic and monetary union, safeguard measures may be taken for a period not exceeding six months, if such measures are strictly necessary.
42 To date no such measure has been taken. 
2.53.  The Lisbon Treaty prohibits restricted meas ures on the "freedom of establishment" of EU 
nationals in the territory of another EU member State. Freedom of establishment extends to EU 
subsidiaries affiliated to non-EU companies43, but not to branches or agencies of non-EU 
companies. 
                                               
38 European Commission document COM(2010) 343 final, 7 July 2010.  Viewed at:  
http://trade.ec.europa.eu/doclib/docs/2010/july/tradoc_146307.pdf . 
39 European Commission document COM(2012) 335 final, 21 June 2012.  Viewed at: 
http://trade.ec.europa.eu/do clib/docs/2012/june/tradoc_149567.pdf  [19.12.12]. 
40 Article 64, TFEU. 
41 Article 65, TFEU. 
42 Article 66, TFEU. 
43 Article 49 and 54, TFEU. WT/TPR/S/284 • European Union 
 
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  2.54.  Some member States such as France, Germany, and the United Kingdom maintain FDI 
review procedures for national security purposes. On 9 May 2012, French Decree No. 2012-691 on foreign investments subject to prior authorisation entered into force. The Decree specified the sectors for which foreign investments shall be subject to prior authorisation and removed all 
references to the notion of indirect control by an investor of a third country. The Act on the 
Monitoring of Foreigners' Corporate Acquisitions in Finland entered into force on 1 June 2012, with an objective to monitor and restrict when required by national interests, the transfer of assets to 
foreigners and to foreign organizations and foundations; compared to the previous act of 1992, the 
categories of enterprises subject to potential review have been reduced.
44 
2.55.  According to the OECD, Luxembourg, Portugal, Slovenia, Romania, and the Netherlands had 
the most open foreign investment regime among EU's member States in 2012.45 
2.5.2  Bilateral investment treaties 
2.56.  On 12 December 2012, the European Parliament and the Council adopted the Regulation 
establishing transitional arrangements for bilateral investment agreements between member 
States and third countries.46 This Regulation provides legal certainty in EU law for bilateral 
investment agreements which were signed by EU member States before the entry into force of the Lisbon Treaty. The regulation confirms that member States may maintain in force these 
agreements notwithstanding the EU's competences re lating to investment, until they are replaced 
by investment agreements concluded by the EU. Member States must notify the Commission which agreements they want to maintain. The regulation also provides for a mechanism authorizing member States, under certain conditions, to negotiate bilateral investment agreements 
with third countries not immediately scheduled for EU-wide investment negotiations, or to 
re-negotiate existing agreements.  
2.57.  As of 15 June 2010, there were more than 1,100 bilateral investment treaties (BITs) 
between the EU member States and third countries.
47 
2.6  Aid for Trade 2.58.  The EU and its member States are amon g the leading providers of aid for trade. In 
December 2007, the EU adopted a joint strategy on aid for trade with its member States. The 
strategy aims to support developing countries "to better integrate into the rules-based world trading system and to use trade more effectively in promoting the overarching objective of eradicating poverty". Each year the Commission publishes an annual report on aid-for-trade 
spending and implementations.
48 
2.59.  According to the Commission, the EU, together with its member States, was the largest 
provider of Aid for Trade (AfT) in the world in 2010 (€10.7 billion), accounting for around 32% of 
total AfT flow. Since 2008, the EU and its member St ates also have exceeded the target to provide 
€2 billion annually for trade-related assistance (TRA) by 2010. In 2010, 60% of global TRA commitment was from the EU and its member States.
49 In addition, "the EU is by far the biggest 
global official development assistance (ODA) dono r, accounting for over half of the total ODA to 
developing countries" with €53.1 billion in ODA in 2011.50 
2.60.  Building Productive Capacity (BPC) and Trade-related Infrastructure (TRI) represent the 
most important components of the collective EU  AfT, respectively €5.1 billion and €4.8 billion 
                                               
44 UNCTAD (2012). 
45 OECD online information, "FDI Regulatory Restrictiveness Index, 5 November 2012". Viewed at: 
http://www.oecd.org/in vestment/fdiindex.htm .   
46 European Commission Press Release, 12 December 2012. Viewed at: 
http://trade.ec.europa.eu/do clib/press/index.cfm?id=854  [19.12.12]. 
47 European Commission document COM(2010) 343 final, 7 July 2010. Viewed at:  
http://trade.ec.europa.eu/doclib/docs/2010/july/tradoc_146307.pdf  [15.12.12]. 
48 European Commission online information,  "DG Trade: Aid for Trade". Viewed at: 
http://ec.europa.eu/trade/wider-agenda/development/aid-for-trade/ . 
49 European Commission document SWD(2012) 199, 9 July 2012. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2012/november/tradoc_150104.pdf . 
50 European Commission document COM(2012) 366 final, 9 July 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0366:FIN:EN:PDF . WT/TPR/S/284 • European Union 
 
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  in 2010. With regard to geographical coverage, Africa still accounted for the largest share at 38% 
(€3.9 billion), followed by Asia (20%), Eu rope (13%), America (9%), and Oceania (1%). 
2.61.  In 2010, the relative shares of the collective EU TRA categories were as follows: Trade 
Policy and Regulation representing 20%, Trade Development almost 70% and Other Trade Related 
Needs approximately 10%. 35% of the TRA commitment went to Africa (among which 70% 
dedicated to South of Sahara), 20% to Asia, and 16% to America. 
2.62.  With regard to further bolstering the effectiveness of AfT, the EU and its member States 
intend to pay more attention to LDCs and developing countries most in need, and continue 
supporting regional and continental integration efforts (including South-South initiatives). 
 WT/TPR/S/284 • European Union 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE   
3.1  Measures Directly Affecting Imports  3.1.1  Procedures 3.1.  The basic customs legislation is the Community Customs Code
1 and its Implementing 
Provisions.2 The Modernized Customs Code (MCC) was adopted in June 2008 but has not yet been 
applied. The European Commission submitted on 20 February 2012 a proposal to recast the Customs Code as the Union Customs Code (UCC), which will replace the MCC.
3 
3.2.  The recast of the Customs Code includes an ultimate deadline of 31 December 2020 
(compared to 30 June 2013 in the MCC), giving more time for national authorities and economic operators to develop their IT capacity. According to the Commission, existing customs procedures 
are to be streamlined in the UCC, once adopted; this also applies to the rules for customs 
declarations and for the placing of goods under a customs procedure which will be modernized, in 
particular by requiring that customs declarations, as a rule, be made electronically and providing for only one type of simplified declaration.  
3.3.  Under EU legislation, the term "customs procedure" means: release for free circulation; 
transit; customs warehousing; inward processing; processing under customs control; temporary admission; outward processing; and exportation. The Commission maintains a website of customs 
legislation and related case law, and legislative proposals.
4 The Trade Contact Group is the main 
framework for regular consultations between the European Commission and economic operators on EU customs matters. A website designated for customs consultations is also maintained by the Commission.
5  
3.4.  The EU has exclusive competence in the fi eld of customs policy and legislation. Under the 
Customs Code and its Implementing Provisions, customs procedures are harmonized and monitored at the EU level. National customs laws  provide for the implementation of EU customs 
legislation while national administrations and courts in the member States are in charge of 
applying EU customs legislation under monitoring by the Commission and oversight of the Court of 
Justice of the EU. The Commission adopted a Co mmunication on the State of the Customs in 
December 2012.
6 According to the Communication, a review of governance of the Customs Union 
will be initiated, with an aim of improving efficiency, effectiveness and uniformity of customs services.  
3.5.  The time needed to complete import procedures varies between member States.
7 It is among 
the shortest in the world for Estonia, Cyprus, Denmark (5 days), the Netherlands, Sweden, and 
the United Kingdom (6 days) but from 1.5 to 1.8 times the average time of OECD countries for Greece, Poland, Slovakia, Czech Republic, Italy and Bulgaria. Hungary requires the longest time 
for import procedures: 19 days (or 1.9 times the OECD average).  
3.6.  There has been no change in appeal proc edures regarding customs decisions since the last 
review of the EU. Specific appeals procedures are set out in national legislation, and vary across 
member States. Appeals must be lodged in the member State where the decision under dispute 
                                               
1 Council Regulation (EEC) No. 2913/92, 12 October 1992 (OJ L 302, 19 October 1992). Viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1992R2913:20070101:EN:PDF  
2 Commission Regulation (EEC) No. 2454/93, 2 July 1993 (OJ L 253, 11 October 1993). Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/customs/procedural_aspects/general/regulation_2
454_93_en.pdf  
3 European Commission COM(2012) 64 final, 20 February 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0064:FIN:EN:PDF . 
4 European Commission online information, "Legislation". Viewed at: 
http://ec.europa.eu/taxation_customs/common/legislation/legislation/customs/index_en.htm . 
5 European Commission online information,  "Customs consultations". Viewed at: 
http://ec.europa.eu/taxation_customs/common/consultations/customs/index_en.htm . 
6 European Commission document COM(2012) 791 final, 21 December 2012. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/common/publications/com_reports/customs/com(
2012)791_en.pdf . 
7 World Bank online information, "Doing Bu siness, Trading across border". Viewed at: 
http://www.doingbusiness.org/data/ex ploretopics/trading-across-borders . WT/TPR/S/284 • European Union 
 
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  has been taken. Most member States require ad ministrative review before a decision can be 
appealed judicially. The review by national courts of a decision taken by the customs administration of one member State is not binding on the customs administrations of other member States. However, in the context of the la st Review of the EU, the Commission pointed out 
that national courts may seek referral to the European Court of Justice (ECJ) with regard to the 
interpretation or validity of EU laws. In any event, national courts must refer a matter to the ECJ in case of doubt regarding a European provision.
8 In addition, under some conditions, any person 
or company that has suffered damage as a result of the action or inaction of the EU or its staff can 
bring an action seeking compensation before the European Court of Justice (the General Court). 
In 2011, 10 cases were brought to the General Court,9 and 19 to the Court of Justice.10 
3.7.  One of the objectives of the Union Customs Code is to replace paper-based customs 
procedures with EU-wide electronic procedures. Since July 2009, a system of Economic Operation 
Registration Identification (EORI) has been in  place. An EU-wide recognized EORI number is 
required for economic operators, and persons esta blished in the EU under certain conditions who 
are involved in activities covered by customs legi slation, and for non-established persons if they 
perform one of the activities listed in Article 4l (3) of the Customs Code Implementing Regulation. 
EORI numbers are unique to each person, and i ssued by competent authorities of the member 
States.11 
3.8.  Traders, or their representatives, must lodge import declarations for their imports to the 
customs office in the member State, either electronically or in writing. Non-established persons may lodge declarations for transit or for temporary admission.
12 In accordance with the relevant 
provisions13, declarants may be authorized, subject to conditions, to lodge: incomplete declaration, 
simplified declaration, or declaration under th e local clearance procedure. From 1 January 2011, 
the use of a simplified procedure or the local clea rance procedure is conditional on the lodging of 
electronic customs declarations and notifications.14  
3.9.  When customs procedures involve more than one customs authority in the EU, a single 
authorization may be granted for a customs procedure with economic impact (e.g. customs 
warehousing, inward processing, processing und er customs control, temporary importation, 
outward processing) or end-use relief. A person may also apply for a single authorisation for simplified procedures which allows the applicant to use local clearance procedures or the simplified declaration procedure applicable in the member State where they are established. 
3.10.  Wider use of single authorisations for simplified procedures is expected to lead to 
implementation of centralized clearance as a standard procedure under the Union Customs Code, once adopted. Centralized clearance would allow economic operators to centralize and integrate 
accounting, logistics and distribution functions with consequent savings in administrative and 
transaction costs, thus providing genuine simplifi cation. According to the Commission, the impact 
                                               
8 WTO document WT/TPR/M/248/Add.1, 30 August 2011. 
9 Court of Justice of the European Union online info rmation, "General Court: Statistics of judicial 
activity". Viewed at: http://curia.europa.eu/jcms/upload/docs/application/pdf/2012-
06/ra2011_statistiques_tribunal_en.pdf . 
10 Court of Justice of the European Union online inform ation, "Court of Justice: Statistics of judicial 
activity". Viewed at: http://curia.europa.eu/jcms/upload/docs/application/pdf/2012-
06/ra2011_statistiques_cour_en.pdf . 
11 EU established persons applied for EORI numbers in the member State where they are established 
whereas non-established person acquire EORI numbers in the member State where they first perform the 
activities listed in CCIP. The Commission maintain a document of the list of authorities responsible for assigning EORI numbers in each member State. Viewed at: http://ec.europa.eu/ecip/documents/who_is/eori_national_implementation_en.pdf . 
12 A non-established person is perm itted to lodge a customs declaration for release for free circulation 
provided that he appoints a customs representative established in the EU unless there are not some specific 
requirements that the declaration is lodged by a specific person. 
13 Article 253a to 253m, Commission Regulation (EC) No. 1192/2008, 17 November 2008 (OJ L 329, 
6 December 2008). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:329:0001:0051:EN:PDF . See also Article 76, 
Community Customs Code, and Article 253, Customs Code Implementing Provision. 
14 Article 253a, of the Commission Regulation (EC) No. 1192/2008, 17 November 2008 (OJ L 329, 
6 December 2008). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:329:0001:0051:EN:PDF . WT/TPR/S/284 • European Union 
 
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  of the financial/economic crisis did not have any negative impact on the number of customs 
declarations using simplified procedures.15  
3.11.  From 1 January 2011, carriers must lodge at the "customs office of first entry" electronic 
Entry Summary Declarations (ENS) for goods from outside the EU except for goods from countries 
that have a security agreement with the EU, i.e. Norway, Switzerland, Liechtenstein, and 
Andorra.16 The person lodging the ENS must have an EORI number. Some member States offer 
the possibility to lodge an ENS at a customs office other than the customs office of entry, provided 
the ENS is electronically communicated or made available to the customs office of entry; this other 
customs office is called the "customs office of lodgement".17 The ENS must be submitted 
electronically in advance within the suggested time limits; otherwise, goods have to be declared immediately on arrival at the border, which may delay customs clearance pending the results of 
risk analysis for safety and security purposes. 
3.12.  EU member States may grant authorized  economic operator (AEO) status, based on 
common criteria
18, to interested economic operators involved in activities covered by customs 
legislation. The benefits of AEO status depend on  the type of certificate granted to the economic 
operator19, and could include fewer customs controls, or easier admittance to customs 
simplifications (Table 3.1). Participation in the authorized economic operator programme is 
voluntary, but not open to persons established outside the EU. The authorized status granted by 
one member State is recognized by other member  States of the EU. When an AEO applies for a 
specific authorisation for simplified procedure, the conditions and criteria which have already been examined are not examined again. As of 31 Ja nuary 2013, 12,464 applicants were granted the 
trusted trader status.
20 
Table 3.1 Benefits of Authorized Economic Operator Certificates 
 AEO-C AEO-S AEO-F 
Easier access to customs simplifications x  x 
Prior notifications of controls  x x 
Reduced data requirements for summary declarations  x x 
Fewer physical and documentary controls x x x 
Priority treatment if selected for control x x x 
Choice of location where control will be carried out x x x 
Source: WTO document WT/TPR/M/248/Add.1, 30 August 2011.  
3.13.  Under EU customs legislation, national cu stoms administrations must issue advance written 
rulings on tariff classification and origin matters.21 Advance rulings issued by the customs 
authorities of one member State are binding on national customs authorities of all other member States.
22 The Customs Code Implementing Provisions sets out a procedure to resolve 
inconsistencies in binding information issued by two or more member States.23 The Commission 
maintains a public online database of advance written rulings on tariff classification.24 
                                               
15 European Commission document COM(2011) 922 final, 20 December 2011. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/common/publications/com_reports/customs/com(
2011)922_en.pdf . 
16 Article 181c of the Customs Code Implementing Regulation sets out several exceptions. 
17 A list of the Member states that allow an ENS to be  lodged in an office other than the customs office 
of entry is available from the European Co mmission online information. Viewed at: 
http://ec.europa.eu/ecip/documents/procedures/ics_office-lodgment-overview_en.xls  [January 2013]. 
18 Articles 5a (2), Council Regulation (EEC) No. 2913/92, 12 October 1992 and Article 14h-k, 
Commission Regulation (EEC) No. 2454/93, 2 July 1993. 
19 Article 14a, Commission Regulation (EEC) No. 2454/93, 2 July 1993. 
20 Among which AEO-F, 6,086; AEO-C, 6,022; and AEO-S, 356. 
21 Article 12, Council Regulation (EEC) No. 2913/92, 12 October 1992. 
22 Articles 5 and 11, Commission Regulation (EEC) No. 2454/93, 2 July 1993. 
23 Article 9, Commission Regulation (EEC) No. 2454/93, 2 July 1993. 
24 European Commission online information, "Eur opean Binding Tariff Information". Viewed at: 
http://ec.europa.eu/taxation_customs/dds2/ebti/ebti_home.jsp?Lang=en . WT/TPR/S/284 • European Union 
 
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  3.1.2  Customs valuation 
3.14.  There has been no change in customs valu ation legislation since the last Review. According 
to the Commission, the rules set out in the WTO Customs Valuation Agreement have been transposed into directly applicable EU legislation, i.e. Articles 28 to 36 of the Customs Code, and 
its related Implementing Provisions (Articles 141 to 181a and annexes 23 to 29). 
3.15.  The transaction value is the primary basis for customs value determination. The transaction 
values used are c.i.f. values. Around 95% of all import declarations are accepted in accordance 
with the transaction value method. 
3.16.  The Customs Valuation Section of the Customs Code Committee publishes a compendium 
which contains commentaries and committee conclusions on specific valuation topics, including the interpretation of certain rules on customs valuation brought to the attention of the Committee. The 
compendium also provides an overview of European  Court of Justice rulings in relation to customs 
valuation. The latest update of the compendium was published in September 2008. 
3.1.3  Rules of origin 
3.1.3.1  Overview 
3.17.  The EU maintains non-preferential and prefer ential rules of origin. Non-preferential rules of 
origin are applied for the purposes of, inter alia , implementation of anti-dumping and 
countervailing measures, quantitative restrictions, MFN tariff quotas, origin marking, contingency 
measures, and government procurement. Preferential  rules of origins are those related provisions 
set out in unilateral trade arrangements (e.g. the GSP) and reciprocal trade arrangements. 
3.18.  For non-preferential rules, in cases where more than one country is involved in the 
production of a good, the country of origin is determined as the country where the product has 
undergone it "last substantial transformation", i.e. where the product "underwent their last, substantial, economically justified processing or working in an undertaking equipped for that 
purpose and resulting in the manufacture of a new product or representing an important stage of 
manufacture".
25 
3.19.  Under preferential rules, non-originating materials may obtain originating status as long as 
they have undergone "sufficient working or processi ng". The origin rules for "sufficient working or 
processing" are provided in the table of "list rules", which are expressed as: 
 a change of HS tariff heading or subheading criterion;  
 specific processing criterion; or  
 value-add or ad valorem  criterion.  
3.20.  Working or processing considered insuffici ent to confer origin ("minimal operation") is 
defined in the relevant articles of individual  preferential trade arrangements. In general, 
operations are considered "simple" when neither special skills nor machines, apparatus or tools 
especially produced or installed for those operations, are required. Operations such as preserving operations to ensure that a product remains in  good condition during transport and storage, 
breaking up and assembly of packages, simple mixing of products, simple assembling of parts are 
considered as insufficient operations. 
3.21.  Regarding the value-added criterion for obtaining the originating status, there are several 
rules on cumulation of origin. These rules allow countries with identical rules of origin to work 
together while the preference is maintained. When countries are in the same cumulation system, it 
is not necessary that the processing carried out on the materials imported from the other countries in the same cumulation system satisfies the list rules as long as the minimal operation 
requirements are satisfied: 
                                               
25 Article 24, Council Regulation (EEC) No. 2913/92, 12 October 1992. WT/TPR/S/284 • European Union 
 
- 43 - 
 
  a. Bilateral cumulation: materials originating in the donor country or partner country may be 
used for cumulation purposes;  
b. Diagonal or regional cumulation: materials originating in a third country belonging to a 
system or group of cumulation may be used for cumulation purposes;26 
c. Full cumulation: all operations carried out in the countries belonging to a system or group of 
cumulation are qualified.27 
3.22.  Non-originating products or materials that do not satisfy the minimal operation 
requirements may be "tolerated". The "tolerance" level varies in different preferential regimes.  
3.23.  Binding origin information (BOI) decisions may be issued by the customs authorities in the 
member States when importers are uncertain about the origin of products. BOIs are binding in all member States in respect of imported good s, provided the goods and the circumstances 
determining the acquisition of origin are identical in every respect to what is described in the BOI. 
BOIs are valid for three years after issuance.  
3.1.3.2  GSP rules of origin 
3.24.  There has been no change in the rules of  origins for the GSP since the last Review. These 
rules entered into force on 1 January 2011, and are more consistent, simplified and flexible compared to the previous rules. 
3.25.  For non-originating materials used in manufactured goods of GSP countries, 15% of the 
ex-works price is the maximum "tolerance” level, if those materials were not sufficiently processed in the beneficiary country; 15% of the product weight for products of HS chapters 2, and 4-24 other than processed fishery products of chapter 16, and products under HS chapters 50-63 
are subject to specific tolerance rules. 
3.26.  Regarding the value-added criterion of GSP rules of origin, least-developed countries (LDCs) 
are allowed to have up to 70% of non-originating materials in most industrial and processed 
agricultural exports, subject to sufficient-processing conditions; other GSP beneficiary countries 
m a y  a l s o  h a v e  u p  t o  7 0 %  f o r  s o m e  p r o d u c t s
28 and up to 50% for others.29 For most apparel 
products originating in LDCs, a single transforming requirement replaces the previous double 
transformation requirement.30 
3.27.  GSP countries may cumulate origin with countries in the same regional group, provided that 
the processing carried out goes beyond insufficient processing operations. If the operation does not go beyond the insufficient processing, the product may be still be considered as originating 
provided that the value of the processing carri ed out there is greater than the value of the 
materials used in any of the other countries of the group of cumulation, otherwise the country in the regional group that accounts for the highest of the customs values of the originating materials 
is considered the country of origin for the prod uct. There are four regional groups in the GSP 
scheme of the EU:  
a. Group I: Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, the Philippines, 
Singapore
31, Thailand, and Viet Nam; 
                                               
26 If the minimal operation requirements are not satisfie d, the preference is sti ll allowed to be cumulated 
but the country of origin is determined by where the suffi cient last working or processing operation took place. 
27 Preferences for products or materials are cumulate d for operations taken plac e in the territories of 
certain agreements (e.g. EPA), regardle ss the minimal operation requirements. 
28 The rule of origin for all products of HS chapters 42, 45, 46, 47, 48, 49, 66, 89, 91, 92, 94, and most 
of products of HS chapters 25, 27, 34, 40, 43, 44, 68, 70, 71, 82, 83, 86, 88, 84, 85, 90, 95, 96 refers to threshold of 70% maximum non-originatin g materials for both LDC and non-LDCs. 
29 The non-LDC countries in the GSP scheme are no longer required to sati sfy the secondary local 
component condition. 
30 European Commission Regulation (EU) No . 1063/2010, entered into force 1 January 2011. 
31 Singapore is not a beneficiary country under the GSP. WT/TPR/S/284 • European Union 
 
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  b. Group II: the Plurinational State of Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, 
Guatemala, Honduras, Nicaragua, Panama, Peru, and the Bolivarian Republic of Venezuela; 
c. Group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka; and 
d. Group IV: Argentina, Brazil, Paraguay, and Uruguay. 
3.28.  Upon request from the beneficiary country, cumulation may be possible among countries in 
Groups I and III, subject to conditions. Under regional cumulation, exporters must be careful of whether the input materials from other countries in the region are "graduated" or "excluded" from 
the GSP.
32 
3.29.  Similar to bilateral cumulation, GSP beneficiary countries may cumulate origin with products 
under HS chapters 25-97 from No rway, Switzerland, Liechtenstei n and Turkey. Additionally, GSP 
beneficiary countries may apply to the Commission for cumulation extension to countries that have 
free trade agreements with the EU. The Commissio n may grant conditional approval for extended 
comulation. Products under HS chapters 1-24 are excluded from extended cumulation. 
3.30.  Direct transport is no longer required for GSP origin goods upon the condition of 
non-manipulation. Storage of products and splitting of consignments may now be possible under 
the supervision of the customs authorities of the transit countries, hence, the GSP benefits may be 
maintained in cases where the goods are moved through regional distribution hubs.33 
3.1.3.3  Other preferential rules of origin 
3.31.  The EU's preferential rules of origins va ry among different reciprocal trade arrangements.34 
However, there are general rules that are applied in most cases; exceptions for application of the "general rules" differ from trade arrangements.
35 According to the Commission, a large proportion 
of the EU's preferential rules share common feat ures in the general provisions and list rules; 
relevant provisions in the FTAs signed before the finalisation of the GSP reform were based on the "traditional" preferential structures, i.e. the rule s applicable in the EU's agreements within the 
pan-Euro-Mediterranean area. The EU also indicate d in the context of this Review that a general 
extension of GSP rules to other preferential a rrangements cannot be considered systematically, 
but that many aspects of the general provisions as well as some aspects of the list rules 
(simplification, modernisation) of the GSP-type rules have been considered for some FTA 
negotiations.  
3.32.  On cumulation rules, diagonal cumulation prevails in the agreements with EFTA countries, 
Mediterranean countries, and Western Balkan countries. The EU grants full cumulation to ACP 
countries (including South Africa) as well as Algeria, Morocco, and Tunisia. Common origin is 
established for industrial products in the European Economic Area with EFTA countries. Bilateral cumulation is applied to other reciprocal trading agreements, i.e. with Chile, Korea and Mexico. 
3.1.4  Tariffs 
3.1.4.1  MFN tariffs 3.33.  The EU offers MFN or better treatment to WTO and non-WTO Members. 
3.34.  Under the Lisbon Treaty, common customs tari ff duties are set by the European Parliament 
and the Council, or the Council based on a proposal from the Commission.
36 The basic legal 
                                               
32 European Commission (2010a). 
33 European Commission Regulation (EU) No. 1063/ 2010, entered into force 1 January 2011. Viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:307:0001:0081:en:PDF . 
34 European Commission online information, "D G TAXUD: Arrangements list". Viewed at: 
http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/preferential/article_779_en.htm . 
35 For detailed summary, see the HMRC Notice 828, "Tariff Preferences: Rules of origin for various 
countries", November 2012. Viewed at: 
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_CL_000193.  
36 Article 31, TFEU. WT/TPR/S/284 • European Union 
 
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  instrument on the tariff is Regulation No. 2658/87.37 The tariff nomenclature, known as the 
Combined Nomenclature, is based on the Harmonized Commodity Description and Coding System (HS), but is further specified at the eight-digit level. The 2013 tariff reflects the fourth amendment to the HS (HS 2012).
38 The nomenclature and rates of duty are contained in Annex I of Regulation 
No. 2658/87. An updated version of Annex I is published annually as a Commission regulation in 
the L-Series of the Official Journal  of the European Union .39  
3.35.  The EU maintains a public, online database that integrates tariff rates and other measures, 
including quantitative restrictions and contingency measures, applied to imports (and exports). 
According to the Commission, the database, known as TARIC, "secures the uniform application [of 
these measures] by all Member States and gives all economic operators a clear view of all measures to be undertaken when importing or exporting goods."
40 The nomenclature codes under 
TARIC are specified at the ten-digit level. 
3.36.  According to the Commission, there have been  no changes in applied tariff rates of the EU; 
changes in the average rates only reflect the chan ges of nomenclatures, and the changes in world 
price of certain goods subject to non- ad valorem  rates.  
3.37.  The 2013 tariff comprises 9,376 lines at the eight-digit level: around one-quarter of all tariff 
lines are duty free; and approximately 9% of lines are "nuisance" rates (Table 3.2). The simple 
average applied MFN tariff rate, including the ad valorem  equivalents (AVEs) of non- ad valorem  
tariff rates, was 6.5%, slightly less than in 2008. Based on the relevant WTO definition, the average applied rate for agriculture fell to 14.8% from 15.2% in 2011 and 17.9% in 2008. This reflects increases in prices of agricultural products and the resulting reduction in the AVEs of 
non-ad valorem  tariff rates applied on such products. The average applied rate for non-agricultural 
products was at 4.4%. The tariff shows escalation between semi- and fully processed goods, and reverse escalation between raw materials and semi -processed goods; tariff quotas cover around 
5% of tariff lines (Table 3.3). 
Table 3.2 Structure of MFN tariffs in the EU-27, 2008, 2011, and 2013  
(%) 
 MFN applied Final 
bound 
(2013)  2008a 2011b 2013c 
Bound tariff lines (% of all tariff lines) 100 100 100.0 100.0 
Simple average tariff rate 6.7 6.4 6.5 6.6 
Agricultural products (WTO definition) 17.8 15.2 14.8 14.8 
Non-agricultural products (WTO definition) 4.0 4.1 4.4 4.4 
Agriculture, hunting, forestry and fishing (ISIC 1) 9.3 8.7 8.6 8.9 
Mining and quarrying (ISIC 2) 0.2 0.2 0.2 0.3 
Manufacturing (ISIC 3) 6.7 6.3 6.4 6.5 
Duty-free tariff lines (% of all tariff lines) 25.3 25 24.7 24.0 
Simple average rate of dutiable lines only 9.05 8.51 8.7 8.7 
Tariff quotas (% of all tariff lines) 4.8 4.9 5.0 5.0 
Non-ad valorem  tariffs (% of all tariff lines) 10.1 10.5 10.7 10.7 
Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  2.7 2.9 2.9 2.9 
Domestic tariff peaks (% of all tariff lines)d 5.3 5.7 5.8 6.0 
International tariff peaks (% of all tariff lines)e 8.4 8.7 9.1 9.3 
Overall standard deviation of applied rates 14.1 10.3 10.4 10.4 
Nuisance applied rates (% of all tariff lines)f 9.6 8.8 7.0 7.1 
                                               
37 Council Regulation (EEC) No. 2658/87, 23 July 1987 (OJ L 256, 7 September 1987). Viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:1987:256:0001:0675:EN:PDF  
38 European Commission Explanator y notes to the Combined Nomenc lature of the European Union 
(2011/C 137/01), 6 May 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2011:137:FULL:EN:PDF  
39 The latest version is contained in Commissi on Implementing Regulation (EU) No. 927/2012, 
9 October 2012 (OJ L 304, 31 October 2012). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:304:FULL:EN:PDF  
40 European Commission online information, "Onlin e customs tariff database (TARIC)". Viewed at: 
http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/customs_tariff/index_en.htm . WT/TPR/S/284 • European Union 
 
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   MFN applied Final 
bound 
(2013)  2008a 2011b 2013c 
Number of lines 9,699 9,294 9,376 9,376 
Ad valorem  8,720 8,319 8,370 8,372 
Duty-free lines 2,451 2,319 2,312 2,246 
Non-ad valorem   979 975 1,006 1,004 
Specific 629 553 577 575 
Compound 215 193 201 201 
Alternate 74 59 58 58 
Other 61 170 170 170 
a Ad valorem  equivalents (AVEs) were estimated based on  2007 import data at the eight-digit tariff 
from Eurostat database. In case of unavailability, the ad valorem  part is used for compound and 
alternate rates. 
b Ad valorem  equivalents (AVEs) were estimated based on  2010 import data at the eight-digit tariff 
from Eurostat database. In case of unavailability, the ad valorem  part is used for compound and 
alternate rates. 
c Ad valorem  equivalents (AVEs) were estimated based on  2011 import data at the eight-digit tariff 
from Eurostat database. In case of unavailability, the ad valorem  part is used for compound and 
alternate rates. 
d Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate (indicator 6). 
e International tariff peaks are defined as those exceeding 15%. f Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: All tariff calculations exclude in-quota lines. Year 2008 and 2011 tariff schedules are based on 
HS2007 nomenclature and Year 2012 schedule is based on HS2012. 
Source: WTO Secretariat. 
Table 3.3 Summary statistics of MFN tariff, 2013  
 Number 
of lines Simple 
average 
(%) Tariff 
range 
(%) Standard 
deviation Share of 
duty free 
lines (%) Share of 
non- ad 
valorem 
tariffs 
(%) Share 
of 
quotas 
(%) 
Total 9,376 6.5 0-197 10.3 24.7 10.7 5.0 
HS 01-24 2,440 14.7 0-197 17.4 14.9 38.9 18.6 
HS 25-97 6,936 3.8 0-47.8 3.8 28.1 0.8 0.2 
By WTO 
category        
WTO agricultural 
products 2,067 14.8 0-197 19.0 18.6 47.0 19.2 
Animals and 
products thereof 351 20.4 0-192.1 24.1 15.1 67.5 35.3 
Dairy products 152 31.7 1.5-164.8 21.6 0.0 98.7 31.6 
Fruit, vegetables, 
and plants 501 13.3 0-197 14.6 11.6 17.4 13.0 
Coffee and tea, 
cocoa and cocoa preparations 47 11.6 0-18.7 6.7 14.9 51.1 42.6 
Cereals and 
preparations 230 18.1 0-94 13.8 5.2 84.4 28.7 
Oils seeds, fats, oil 
and their products 174 7.5 0-154.1 17.1 35.6 6.9 0.0 
Sugars and 
confectionary 44 25.4 0-135.3 28.4 0.0 93.2 22.7 
Beverages, spirits, 
and tobacco 303 14.2 0-196.3 20.9 18.2 55.8 14.2 
Cotton 6 0.0 0 0.0 100.0 0.0 0.0 
Other agricultural 
products, n.e.s. 259 5.6 0-83.5 11.8 50.6 22.0 7.7 
WTO 
non-agricultural 
products 7,309 4.4 0-26 4.3 26.4 0.5 1.0 
Fish and fishery 
products 492 11.9 0-26 6.4 8.1 0.0 12.0 WT/TPR/S/284 • European Union 
 
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   Number 
of lines Simple 
average 
(%) Tariff 
range 
(%) Standard 
deviation Share of 
duty free 
lines (%) Share of 
non- ad 
valorem 
tariffs 
(%) Share 
of 
quotas 
(%) 
Minerals and 
metals 1,447 2.0 0-12 2.5 50.6 0.7 0.5 
Chemicals and 
photographic supplies 1,230 4.5 0-18.1 2.7 23.8 0.3 0.1 
Wood, pulp, 
paper, and 
furniture 429 1.2 0-10 2.3 73.7 0.0 0.5 
Textiles 850 6.6 0-12 2.4 1.9 0.1 0.2 
Clothing 341 11.6 6.3-12 1.3 0.0 0.0 0.0 
Leather, rubber, 
footwear, and 
travel goods 264 5.0 0-17 4.6 18.9 0.0 0.0 
Non-electric 
machinery 881 1.9 0-9.7 1.4 20.9 0.0 0.0 
Electric machinery 444 3.1 0-14 3.2 21.0 0.0 0.0 
Transport 
equipment 248 5.1 0-22 5.1 12.1 0.0 0.0 
Non-agricultural 
products, n.e.s. 634 2.6 0-14 2.1 25.6 3.2 0.0 
Petroleum 49 3.0 0-4.7 1.8 24.5 0.0 0.0 
By ISIC sectora        
ISIC 1 – 
Agriculture, 
hunting, and 
fishing 633 8.6 0-143.1 12.8 34.3 20.1 10.6 
ISIC 2 – Mining 
and quarrying 115 0.2 0-8 1.1 93.0 2.6 0.0 
ISIC 3 – 
Manufacturing 8,627 6.4 0-197 10.2 23.0 10.2 4.6 
By stage of 
processing        
First stage of 
processing 1,189 6.8 0-143.1 10.7 43.2 14.1 11.1 
Semi-processed 
products 2,755 4.9 0-135.3 6.5 30.6 3.9 1.0 
Fully processed 
products 5,432 7.3 0-197 11.7 17.6 13.5 5.7 
a. International Standard Industri al Classification (Rev.2). Electr icity, gas and water are excluded 
(1 tariff line). 
Note: Calculations for averages are based on the nati onal tariff line level (8-digit), excluding in-quota 
rates. Tariff schedule is based on HS2012. Ad valorem  equivalents (AVEs) were estimated based on 
2011 extra-EU-27 import data at the 8-digit tariff from Eurostat database. In case of unavailability, the ad valorem  part is used for compou nd and alternate rates.  
Source: WTO Secretariat calculations, based on IDB database and Eurostat database. 
3.38.  The Secretariat used average unit values to estimate the ad valorem  equivalents of 
non-ad valorem  tariff rates. The data used to calculate import unit values are from Eurostat for 
2011. The analysis excludes 273 lines for which AVEs could not be estimated.41 In the context of 
this Review, the Commission expressed reservat ions about the Secretariat's methodology for 
estimating AVEs.42 
                                               
41 AVEs were not estimated for those lines with no or  very low imports, or no entry prices; regarding 
compound or alternate tariffs, only the ad valorem  component was used for the analysis. 
42 The Commission indicates that any calculation of AVEs has shortcomings that can lead to distortions 
in the characterization of the actual level of tariff protections. The Commission notes that it is therefore important to treat results of AVE calculations with great caution, bearing in mind that the result can be 
influenced by several elements, including: the base pe riod and partners chosen; commodity prices; exchange 
rates; shocks in specific markets; treatment of mixed tariffs and tariff lines for which trade data are not 
available; and the extent to which preferential tr ade is included in the unit value calculation. WT/TPR/S/284 • European Union 
 
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  3.39.  Around 11% of tariff lines are non- ad valorem , mostly on agricultural products (Table 3.2). 
Furthermore, the EU uses seasonal duties and duties that are reduced if a product's declared price is above a certain level (entry price system).
43 Entry prices apply on 28 tariff lines at the 8-digit 
level, including tomatoes, cucumbers, courgettes, citrus fruits, grapes, apricots, and plums 
(Table A3.1). The EU uses the "Meursing Table" to determine the customs tariffs for processed 
agricultural products based on what they are made of. These products include confectionary, 
cakes, and biscuits. Their tariffs are defined according to the level of milk fats and proteins, sugar, 
and starch they contain. The table results in thousands of possible combinations of tariffs. 
3.40.  On average, non- ad valorem  rates continue to afford higher protection than ad valorem 
rates. The average AVE of non- ad valorem  tariff rates is 24.5%, compared with 4.8% for ad 
valorem  duties. Under the WTO definition, dairy is subject to the highest average tariff rate, 
followed by sugars and confectionary, live  animals and their products, and cereals and 
preparations (Table 3.3). All rates above 100% ar e AVEs relating to agricultural goods, applying 
to, inter alia , prepared or preserved mushrooms (197% and 170%), citrus juice including orange 
juice and grape juice (196.3% and 165.3%), certain meats and edible meat offal (192.1% and 
120.1%), goat meat (166.7%), whey (164.8%), olive oil (154.1% and 120.6%), and isoglucose (135.3%). Apart from agricultural products, non- ad valorem  tariff rates apply on 35 tariff lines, 
including mostly glass and watches, watch and clock movements, and watch cases. The highest 
rates for non-agricultural products apply on motor vehicles (22%) and on fish (22-26%). 
3.1.4.2  WTO bound tariffs 3.41.  All EU tariff lines are bound. Applied rates, in general, are at their bound rates (Table 3.2). 
The simple average bound tariff rate is 6.6%. 
3.42.  The WTO certified Schedule of Concessions reflecting the EU's enlargement from 12 to 
15 member States became effective in October 2012.
44 The EU's commitments with respect to 
agricultural market access, domestic support, and export subsidies to reflect the enlargement from 
15 to 27 member States have not yet been formally agreed in the WTO and consolidated in the EU's Schedule (section 2.3).  
3.43.  The EU is covered by the collective Gene ral Council waiver suspending the application of 
GATT binding disciplines to allow WTO Members to implement the HS 2007 and HS 2012 changes pending the incorporation of these changes into their schedules of concessions.
45 This waiver 
expires in December 2013. 
3.1.4.3  Tariff suspensions and tariff rate quotas 
3.44.  The Council may approve "autonomous" tariff suspensions and quotas on the basis of a 
proposal from the Commission. These measures pe rmit the total or partial waiver of duties 
applicable to imported goods for an unlimited quantity (tariff suspension) or a limited quantity 
(tariff quotas). Tariff suspensions may be granted for products unavailable within the EU whereas tariff quotas for goods produced in insufficient quantities within the EU. According to the 
Commission, these measures allow enterprises to obtain supplies at a lower cost for a certain 
period, thus stimulating economic activity and improve competition in the EU. No tariff suspensions or quotas are granted for finished products.
46 
3.45.  Member States transmit requests for autonomous tariff suspensions to the Commission. The 
requests are examined by the Commission with the aid of the Economic Tariff Questions Group 
representing the industries of each member Stat e. According to the Commission, an increase in 
                                               
43 The rules for the application of the entry price for fruit and vegetables are laid down in Regulation 
(EC) No. 1580/2007, 21 December 2007 (OJ L 350, 31 December 2007). 
44 WTO document WT/Let/868, 30 October 2012. 
45 WTO documents WT/L/874 and WT/L/875, 14 December 2011. 
46 Some of the parts and components that are highly  technical, sophisticated and used without major 
modification could be considered as "finished" products ; however, tariff suspensions could be grated for those 
"finished" products as components in the final products, provided the added value of such an assembly 
operation is sufficiently hi gh. Paragraph 2.5.3, European Commissi on Communication on autonomous tariff 
suspensions and quotas (2011/C 363/02), (OJ C 363, 13 December 2011). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2011:363:0006:0017:EN:PDF.  WT/TPR/S/284 • European Union 
 
- 49 - 
 
  requests was registered during the recent economic recession in the EU.47 In 2012, there were 
around 1,700 autonomous suspensions and 80 autonomous tariff quotas in force.  
3.46.  According to the Commission, as a general rule, autonomous tariff suspensions are opened 
for a period of five years, and are automatically prolonged if they are sufficiently used. The 
Commission notes that an early termination of  these measures is possible if economic 
circumstances change; measures are reviewed regularly, and interested parties may request to delete them.
48 Products covered include basic chemicals, components for the microelectronics 
industry, and components for heavy and industrial machinery. 
3.47.  Autonomous" tariff rate quotas are allocated on the "first-come, first-served" basis. When 
the quotas of the year for the products in questi ons are used up, normal import duties will be 
applied. 
3.48.  The EU grants preferential tariff quotas in accordance with the unilateral or reciprocal trade 
agreements (Table A3.2). It also operates a number of quotas for agricultural goods (section 4.1). 
3.1.5  Domestic taxes collected at the border 
3.49.  In the EU, value-added tax (VAT) is applied to both domestic and imported goods and 
services. For imported goods, VAT is assessed on the customs values plus duties, other charges, and incidental expenses. VAT on imports, in ge neral, must be paid at the time of customs 
clearance. Goods are treated as imports for VAT purposes if they arrive from outside the EU 
(within the meaning of the VAT Directive) or via another EU country without having been released for free circulation. Imported goods are in free circulation once the applicable duties have been paid and the customs formalities complied with. Ho wever, traders need to cope with different 
import VAT rules depending on the member State of importation; there is no uniformity between 
member States with regard to the liability and different payment regimes applied.
49 
3.50.  VAT rates differ across member States. The standard rate applied by member States must 
be at least 15%50, and member States may apply up to two reduced rates of at least 5% on 
21 categories of goods and services listed in Anne x III of the VAT Directive, including food, water, 
medicines, certain medical equipment, books, newspapers, periodicals, certain agricultural inputs, 
passenger transport, renovation and repairing of private dwellings, social services that do not fulfil 
the conditions for exemption, and admission to spor ting events. In addition, there is a multitude of 
derogations on the application of zero rates, and super-reduced rates (lower than 5%), resulting in 
the application in member States of different combinations of rates.51 Standard VAT rates cover 
about two thirds of total consumption, with the remainder subject to other rates.52 The average 
VAT rate in the EU-27 is currently 21%.53  
3.51.  The VAT revenue ratio comprises actual VAT revenue collection divided by the theoretical 
standard VAT tax base (i.e. products at the VAT standard rate and the net final consumption). It is 
an indicator to describe the extent of exemptions, reduced rates, or tax evasion: a lower value suggests more applications of VAT exemption/redu ction. The VAT revenue ratio for the EU member 
States in the last decade is shown in Table 3.4.  
                                               
47 Paragraph 2.4.4, European Commission Communication 2011/C 363/02, 13 December 2011. 
48 In exceptional cases where a continuation of a tariff suspension implies the lasting need in external 
supplies or it is too costly to in vest for domestic supplies, the Commission may propose an amendment to the 
Common Customs Tariff. Paragraph 2.3.2, European Commission Communication 2011/C 363/02, 13 December 2011. 
49 Deloitte and Copenhagen Economics (2011) . 
50 Council Directive 2010/88/EU, 7 December 2010 (OJ L 326, 10 December 2010). 
51 European Commission document taxud.c.1(2013)69398 – EN, "VAT Rates Applied in the member 
States of the European Union", 14 January 2013. Viewed at: http://ec.europa.eu/taxation_customs/resources/docum ents/taxation/vat/how_vat_works/rates/vat_rates_en.
pdf. 
52 European Commission document COM(2010) 695 final, 1 December 2010. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/doc uments/common/consultations/tax/future_vat/com(2010)
695_en.pdf.  
53 DG Taxation and Customs Union/Eurostat (2012). WT/TPR/S/284 • European Union 
 
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  Table 3.4 VAT revenue ratio, 2000-10 
  2000 2001 2002 2003  2004  2005  2006  2007  2008 2009 2010  
Austria 0.62 0.62 0.63 0.61 0.60 0.60 0.59 0.61 0.61 0.61 0.60 
Belgium 0.51 0.48 0.48 0.47 0.49 0.50 0.51 0.51 0.49 0.47 0.48 
Bulgaria 0.52 0.52 0.45 0.53 0.63 0.66 0.72 0.69 0.76 0.64 0.66 
Cyprus 0.73 0.75 0.66 0.68 0.75 0.82 0.88 0.91 0.92 0.80 0.79 
Czech Republic  0.43 0.42 0.41 0.41 0.57 0.57 0.54 0.54 0.58 0.55 0.54 
Denmark 0.61 0.61 0.60 0.60 0.60 0.63 0.65 0.65 0.63 0.59 0.58 
Estonia 0.70 0.69 0.70 0.69 0.65 0.76 0.81 0.80 0.67 0.65 0.68 
Finland 0.60 0.59 0.58 0.60 0.59 0.61 0.61 0.60 0.58 0.55 0.52 
France 0.53 0.52 0.51 0.50 0.51 0.52 0.51 0.51 0.50 0.46 0.47 
Germany 0.60 0.58 0.56 0.56 0.55 0.55 0.57 0.55 0.55 0.56 0.55 
Greece 0.48 0.51 0.50 0.48 0.47 0.45 0.47 0.49 0.46 0.39 0.38 
Hungary 0.53 0.48 0.45 0.46 0.52 0.49 0.55 0.59 0.57 0.50 0.53 
Ireland 0.62 0.61 0.61 0.60 0.64 0.67 0.67 0.63 0.56 0.47 0.48 
Italy 0.45 0.43 0.43 0.41 0.40 0.40 0.43 0.43 0.40 0.38 0.41 
Latvia  0.51 0.49 0.48 0.52 0.51 0.59 0.65 0.63 0.49 0.38 0.42 
Lithuania 0.52 0.51 0.52 0.48 0.45 0.52 0.55 0.61 0.58 0.47 0.49 
Luxembourg 0.74 0.74 0.74 0.79 0.85 0.90 0.90 0.94 0.98 0.97 0.97 
Malta 0.50 0.53 0.55 0.55 0.51 0.61 0.58 0.58 0.57 0.56 0.57 
Netherlands 0.60 0.59 0.57 0.57 0.58 0.58 0.60 0.62 0.60 0.54 0.57 
Poland 0.42 0.41 0.42 0.42 0.44 0.47 0.51 0.54 0.50 0.47 0.49 
Portugal 0.60 0.59 0.53 0.53 0.53 0.52 0.53 0.53 0.53 0.44 0.47 
Romania 0.43 0.41 0.49 0.48 0.45 0.54 0.54 0.57 0.56 0.47 0.44 
Slovakia 0.44 0.44 0.43 0.54 0.60 0.61 0.58 0.53 0.54 0.48 0.46 
Slovenia  0.67 0.65 0.64 0.64 0.65 0.67 0.67 0.69 0.68 0.63 0.61 
Spain 0.55 0.53 0.52 0.54 0.56 0.59 0.59 0.54 0.45 0.35 0.41 
Sweden  0.52 0.52 0.53 0.52 0.53 0.55 0.55 0.57 0.58 0.57 0.59 
United Kingdom  0.49 0.48 0.48 0.50 0.49 0.48 0.48 0.47 0.46 0.46 0.47 
Source: DG Taxation and Cust oms Union/Eurostat (2012), Taxation trends in the European Union . Viewed at: 
http://ec.europa.eu/taxation_customs/resources/d ocuments/taxation/gen_in fo/economic_analysis/t
ax_structures/2012/report.pdf ; and Eurostat online database. Viewed at 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [February 2013]. 
3.52.  Differences in VAT rates may lead to additional compliance costs for traders.54 An economic 
evaluation carried out by the Commission also confirmed that the use of reduced rates is often not the most suitable instrument for pursuing policy objectives, particularly for ensuring redistribution 
to poor households or encouraging the consumption of  a good that is deemed socially desirable. In 
fact, the existing application of reduced rates translates into significant subsidies.
55 
3.53.  In December 2011, the Commission adopted a Communication on the future of VAT, which 
called for "a more efficient VAT system", through reviewing the rate structure and more restriction 
on the application of reduced rates.56 If all reduced rates were removed, the standard rate could in 
certain member States theoretically be reduced by up to 7.5%, without any impact on overall 
revenue.57 
3.54.  Domestic and imported alcoholic beve rages, manufactured tobacco products, energy 
products (e.g. petrol, gas oil, natural gas) and electricity are subject to excise duties in all EU member States.
58 Excise duty rates applied on these products vary across member States, but 
must be at least equal to the minimum rates established in EU legislation, which also defines the 
product categories subject to excise duties, and the basis on which they must be calculated.59 A 
                                               
54 European Commission document COM(2011) 851 final, 6 December 2011. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/docum ents/taxation/vat/key_documents/communications/co
m_2011_851_en.pdf.  
55 European Commission document MEMO/11/874, "Questions and Answers: Value Added Tax", 
6 December 2011. Viewed at: http://europa.eu/rapid/press-release_MEMO-11-874_en.pdf.  
56 European Commission document COM(2011) 851 final, 6 December 2011. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/docum ents/taxation/vat/key_documents/communications/co
m_2011_851_en.pdf.  
57 European Commission document SPEECH/11/852, "Commissioner Šemeta's speaking points on the 
Strategy for the future of VAT",  6 December 2011. Viewed at: http://europa.eu/rapid/press-release_SPEECH-
11-852_en.htm?locale=en.  
58 In contrast to VAT, excise duti es are mainly specific taxes. 
59 Council Directive 92/83/EEC, 19 October 1992 (OJ L 316, 31 October 1992); Council Directive 
92/84/EEC, 19 October 1992 (OJ L 316, 31 October 1992); Commission Regulation (EC) No 3199/93, WT/TPR/S/284 • European Union 
 
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  Council Directive adopted in February 2010 gradually increases minimum excise duty rates on 
cigarettes and fine-cut tobacco; the Directive modified the definitions of manufactured tobacco products and established transition periods for certain member States.
60 EU member States have 
not yet agreed to increase the minimum rates on alcoholic beverage in line with inflation, as 
proposed by the Commission in 2006.61 In 2011 the Commission proposed a revision of the 
legislation on taxation of energy products and electricity,62 but no legal act has been adopted by 
the Council. The Excise Duty Tables published by the Commission contain the tax rates levied by 
member States and tax receipts from excise duties on alcoholic beverages, manufactured tobacco 
(quantities released for consumption are also published) and energy products and electricity.63 
3.55.  Under Council Directive 92/83/EEC, member States may levy reduced excise duty rates on 
beer and ethyl alcohol produced by small domestic  breweries and distilleries, as defined in the 
Directive. Reduced rates may be lower than the mi nimum rates defined in EU legislation, but not 
less than half the rate of the standard exci se duty on these products. According to the 
Commission, although the Directive is silent on whether similar reduced rates should be granted 
on beer and ethyl alcohol from outside the EU, in practice similar tax reductions are provided in 
accordance with GATT commitments, usually on condition of a certificate of eligibility issued by the relevant national authority where the brewery or distillery is established.
64  
3.56.  The Commission notes that no taxes other than VAT and excise duties are payable at the EU 
external border. 
3.1.6  Import control and restrictions 3.57.  The EU does not maintain quantitative restrictions on imports from WTO Members and 
countries with bilateral agreements. As a result of Russia's accession to the WTO, quotas of certain 
steel products were abolished on 22 August 2012. Import quotas are applied to certain steel products from Kazakhstan, and certain textiles from Belarus and the Democratic People's Republic 
of Korea. The EU has a bilateral Agreement on Trade in Textiles with Serbia (dated 
31 March 2005) which foresees the possibility to introduce quantitative restrictions on imports of textile products.
65 According to the Commission, this Agreement will lapse upon the entry into 
force of the Stabilisation and Associatio n Agreement between the EU and Serbia. 
3.58.  The EU import licensing system is based on the premise that no import licences are required 
unless specific products are subject to quantitative restrictions, safeguard measures or import surveillance. Import surveillance is administered through automatic licensing; the Commission 
notes that the licensing procedure for products und er surveillance is for statistical purposes and 
improves the "transparency of import trends, but with no intention of limiting market access".
66 
The prior surveillance of imports of certain iron and steel products expired on 
31 December 2012.67 According to the Commission, there ar e no import surveillance schemes in 
force since 1 January 2013. 
                                                                                                                                               
22 November 1993(OJ L 288, 23 November 1993); Council Directive 95/59/EC, 27 November 1995 (OJ L 291, 
6 December 1995); Council Directive 92/79/EEC, 19 October 1992 (OJ L 316, 31 October 1992); Council Directive 92/80/EEC, 19 October 1992 (OJ L 316, 31 October 1992); and Council Directive 2003/96/EC, 27 October 2003 (OJ L 283, 31 October 2003). 
60 Council Directive 2010/12/EU, 16 February 2010 (OJ L 50, 27 February 2010). 
61 European Commission document COM(2006) 486 final, 8 September 2006. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/taxation/excise_duties/alcoholic_beverages/com(
2006)486_en.pdf . 
62 European Commission document COM(2011) 169 final, 13 April 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0169:FIN:EN:PDF . 
63 European Commission document Ref 1036, Excise Duty Tables (Parts I-III), January 2013. Viewed at: 
http://ec.europa.eu/taxation_customs/taxation/exci se_duties/alcoholic_beverages/rates/index_en.htm . 
64 The member States that maintain reduced exci se duty rates for small domestic breweries or 
distilleries are Austria, Belgium, Bulgaria, Czech Re public, Denmark, Estonia, Finland, France, Germany, 
Greece, Ireland, Latvia, Luxembourg, the Netherlands, Portugal, Romania, Slovakia , and the United Kingdom. 
65 WTO document, G/LIC/N/3/EU/1, 25 Septembre 2012. 
66 WTO document G/LIC/N/3/EU/1, 25 September 2012. 
67 Regulation (EU) No. 529/2012 of the European Parliament and of the Council (OJ L 172/1, 
30 June 2012) took effect on 22 August 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:172:0001:0002:EN:PDF  . WT/TPR/S/284 • European Union 
 
- 52 - 
 
  3.59.  For importation of products subject to impo rt quotas, including tariff rate quotas, import 
licences must be sought from the competent authorities of the member States in cooperation with the Commission.
68 The licences are valid throughout the EU, except in the case of a quota being 
limited to certain member States. Quotas are centrally managed by the Commission, and allocated 
on the "first-come, first-served" basis. The EU  made information on current level of quota 
utilization available online.69 A double-checking mechanism is in place when administering import 
licences.70 
3.60.  Import licensing for bananas was abolished on 1 January 2012; licensing requirements for a 
number of agricultural products were abolished on 24 May 2012 with entry into force of Regulation No. 418/2012.
71 Pursuant to Article 130(1) of Regulation No. 1234/2007, the Commission may 
impose licensing requirements on imports of certain agricultural products. Products subject to 
licensing include: cereals and rice, beef and veal, sheepmeat and goatmeat, milk and milk 
products, sugar, olives and table olives, some vegetables and processed vegetables, and ethyl alcohol of agricultural origin.
72 The Commission indicated that the import licensing scheme for 
agricultural products is for statistical purposes, and administered through automatic licensing.73  
3.61.  Import licences are not subject to fees and are not transferable. There is no penalty for 
non-utilization of an import licence or portion of it. However, for import licences for agricultural 
products, importers must lodge a security to apply for an import licence; the amount of the 
security is product specific, and is forfeit if the product in question is not imported or only partially imported during the validity period of the licence. 
3.62.  The EU maintains import restrictions on, inter alia , security, technical, sanitary, 
phytosanitary, and environmental grounds. Some such controls/restrictions stem from treaties and 
international conventions to which it, and/or its member States, are party, for instance the Convention on International Trade in Endangered Species of Wild Fauna and Flora. The EU has 
entered into bilateral "Forest Law Enforcement Governance and Trade Voluntary Partnership 
Agreements" with a number of countries, through which imports of timber and timber products from such countries will be subject to a licensing scheme. 
3.1.7  Contingency measures 
3.1.7.1  Overview 3.63.  Contingency measures, which are called "trade defence instruments" by the Commission 
and are part of the Common Commerce Policy (CCP ), are the exclusive competence of the EU. 
Industries within the EU may lodge a complaint with the Commission which may then initiate an 
investigation. If the investigation determines there is dumping or subsidies in production and/or export of the products concerned, causality betwee n the imports and injury of the EU's industries, 
and that the imposition of contingency measures is not against the EU's interests, the Commission 
may propose contingency measures to the Council. The adoption of contingency measures is subject to the comitology rules that entered into  force in March 2011 (section 2.1), and requires a 
positive opinion voted by qualified majority of a committee composed of member State 
representatives.  
3.64.  In 2012, the Regulation No. 1225/2009 (known  as "Basic Anti-dumping Regulation") was 
amended twice (September and December 2012) reflecting the rulings of the WTO Dispute 
                                               
68 The competent authorities in the member States must transmit all licence applications to the 
European Commission, and wi ll only issue a licence after the application is approved by the Commission. 
69 The websites are: EC online in formation, "Système Intégré de Ge stion de Licences". Viewed at: 
http://trade.ec.europa.eu/sigl/  (for imports of textiles, clothing, f ootwear and steel); and EC Taxation and 
Customs Union, "Tariff quota consultation". Viewed at: 
http://ec.europa.eu/taxation_customs/dds2/taric/quota_consultation.jsp?Lang=en . 
70 The double-checking mechanism operates thus: when  importers apply for impo rt licences, they must 
submit the original of the corresponding expo rt licence plus other relevant documents. 
71 The agricultural products no lo nger subject to import licensing are explained in Article 3 of the 
Regulation. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:130:0001:0013:EN:PDF . 
72 Annex II, Commission Regulation (EC) No. 376/2008, 23 April 2008 (OJ L 114/3, 26 April 2008). 
Viewed at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:114:0003:0056:en:PDF  
73 WTO document G/LIC/N/3/EU/1, 25 September 2012. WT/TPR/S/284 • European Union 
 
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  Settlement Body74 and of the European Court of Justice.75 These amendments are related to the 
treatment of exporters from non-market economy countries. According to the Commission, the amendment codifies the practice of the Commission to resort to sampling when investigating claims for market economy treatment made by ex porters located in economies in transition; the 
amendment also clarifies the methodology to be followed to establish the duty rate applicable to 
non-sampled cooperating exporting producers. Suppliers which are legally distinct from other suppliers or from the State may nevertheless be considered as a single entity for the purpose of 
specifying the duty. In this examination, account may be taken of factors such as the existence of 
structural or corporate links between the suppliers  and the State or between suppliers, control or 
material influence by the State in respect of pric ing and output, or the economic structure of the 
supplying country. Both amendments have been no tified to the WTO. According the Commission, 
economies in transition include China, Viet Nam, Kazakhstan, Albania, Armenia, Georgia, 
Kyrgyzstan, Moldova and Mongolia.
76  
3.65.  The Commission launched an initiative to modernize trade defence instruments in 
October 2011. The exercise covers the anti-dumping and countervailing instruments, with the aim 
of improving the efficiency of the instruments and effectiveness of actual anti-dumping and countervailing measures imposed. Safeguards are not part of the initiative because the criteria and 
procedure to impose safeguard measures are very different from those of the AD and AS 
instruments. The modernization exercise will include a communication, guidelines and a legislative proposal. It is planned to release all three elements in spring 2013. The legislative proposal will then follow the ordinary legislative procedure during 2013 and 2014. The Commission indicated 
that changes in practice which do not require a le gislative change are expected to be implemented 
during 2013, e.g. changes to facilitate cooperation and guidelines. 
3.66.  According to the Commission, about 0.3% of total volume of imports into the EU was 
subject to contingency measures in 2011, and 0.2% in 2012.
77 During the last five years, the iron 
and steel industry, and chemical industries were the sectors most affected by contingency measures adopted in the EU (Table A3.3). 
3.1.7.2  Anti-dumping and countervailing 
3.67.  The legislative framework for anti-dumping  (AD) and countervailing (CV) measures in the 
EU remained largely unchanged during the peri od under review. The main EU legislation is 
contained in Regulation No. 1225/2009 on anti-dumping and Regulation No. 597/2009 on 
countervailing (known as "Anti-subsidy Regulation"). The Commission maintains websites, which 
are available to the public, on information on investigations,
78 and on notices and adopted 
measures.79 
3.68.  Provisional measures may be imposed no earlier than 60 days from the initiation of the 
proceeding. The provisional duties apply the "lesse r duty" principle, i.e. the amount of the duty 
should be lesser of the dumping margin and the level determined to "remove the injury". 
Provisional duties must be secured by a guarante e; upon provision of the guarantee, imports of 
the product concerned will be released for free circulation in the EU. Provisional duties may be imposed for six months up to a maximum of nine months. 
3.69.  Definitive anti-dumping or countervailing me asures are usually imposed for a fixed period of 
f i v e  y e a r s ,  s u b j e c t  t o  e x p i r y  r e v i e w s ;  i f  n o  expiry review is requested, the measure expires 
automatically. The Commission indicated that the av erage duration of AD measures in the EU is 
                                               
74 WTO document G/ADP/N/1/EU/1, 16 October 2012. See also Regulation (EU) No. 765/2012 of the 
European Parliament and of the Council, 13 June 2012 (OJ L 237, 3 September 2012). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:237:0001:0002:EN:PDF . 
75 WTO document G/ADP/N/1/EU/2, 17 January 2013. See also Regulation (EU) No. 1168/2012 of the 
European Parliament and of the Council, 12 December 2012 (OJ L 344, 14 December 2012), viewed at: http://trade.ec.europa.eu/doclib/docs/2012/december/tradoc_150149.amend.en.L344-2012.pdf . 
76 European Commission online information,"Anti-dumping investigation". Viewed at: 
http://ec.europa.eu/trade/tackling-unfair-trad e/trade-defence/anti-dumping/investigations/  [16.02.13]. 
77 Percentage number in 2012 is provisional. 
78 European Commission online information, "T rade Defence: Investigation". Viewed at: 
http://trade.ec.europa.eu/tdi/index.cfm . 
79 European Commission online information, "T rade Defence: Notice board". Viewed at: 
http://trade.ec.europa.eu/tdi/notices.cfm . WT/TPR/S/284 • European Union 
 
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  seven years; approximately 17% of AD measures remain in place for more than ten years. 
According to the European Commissioner for Trade, the Commission is to consider "ways to make sure that the levels of the duties are still appropriate after such a long time".
80  
3.70.  During the period under review, 14 anti-d umping measures that lasted for longer than 
10 years affecting 13 trading partners were terminat ed or expired. For instance, AD measures on 
imports of potassium chloride from Belarus and Russia, initially imposed in October 1992, were 
terminated in July 2011; the extension of AD measures on imports of polyethylene terephthalate 
(PET) from Chinese Taipei, India, Indonesia, Korea, Malaysia and Thailand expired in 
February 2012 (Table A3.3). 
3.71.  EU industries may request the Commission to hold expiry reviews no later than three 
months prior to the expiry of a measure.81 In the last five years (2008–2012), 61 requests were 
submitted to the Commission for expiry reviews, accounting for 60% of 101 measures due to 
expire during the period. In 54 cases (53%), an ex piry review was initiated. An expiry review can 
result in either the repeal or continuation of the duties in force, but not in a change in the level or 
form of the duties.82 If the expiry review determines the measure should be retained, the duties 
normally remain in force for another five years.  For the period 2008 through 2012, 40 measures 
were extended – some as a result of expi ry reviews initiated prior to this period. 
3.72.  AD or CV measures may be terminated before their expiry. After the measures have been 
imposed for longer than one year, interim reviews may be requested by any exporter, importer, or by EU producers.
83 Anti-dumping measures against certain trading partners may be terminated in 
an expiry review or an interim review while bein g retained for others. For instance, anti-dumping 
duty on ferro-silicon imports from Russia was terminated on 25 January 2012 whereas the duty 
remained on imports from China, Egypt, and Kazakhstan.84 The threshold for terminating AD 
measures is where the dumping margin is determined to be less than 2% of the export price.85  
3.73.  During the period under review, the EU initiated 30 new AD investigations, the same 
number as in the last review period. Not all investigations resulted in the imposition of definitive AD measures. For instance, less than 60% of investigations initiated in the period 2009-10 led to 
definitive measures being imposed (Table A3.3). Eleven new definitive measures were adopted 
in 2011, up from six in 2010. Three new definitive measures were imposed in 2012 (Table 3.5).  
Table 3.5 Anti-dumping investigatio ns and measures imposed, 2008-12
a 
 2008  2009  2010 2011 2012  
Investigation initiations 18 15 15 17 13 
Provisional measures 5 9 9 10 8 
Definitive measures 16 9 6 11 3 
Expired measuresb 2 3 14 11 13 
Confirmation of measure following expiry review 8 5 10 7 9 
Termination of measure following expiry review 5 0 1 3 4 
a As at 31 December 2012. 
b Measures that expired automatically after thei r five-year imposition, not include the extended 
measures that automatically expired after the extension. 
Source: WTO Secretariat; and European Comm ission online information. Viewed at: 
http://trade.ec.europa.eu/tdi/notices.cfm . 
3.74.  At the end 2012, the EU had 112 AD measures in force, affecting 20 trading partners 
(Table A3.3). The majority of AD measures in force in recent years were on imports from Asia, in 
particular China. Over the past five years, Asia accounted for 74% of the AD measures imposed, with other European countries outside the EU accounting for 17% (Chart 3.1 and Table A3.4). 
                                               
80 De Gucht (2012). 
81 The expiry reviews may be initiated on the Commission's own initiatives. 
82 Changes in the level or form of  the contingency measures can be done through interim reviews. 
83 Interim review may also be carried out on the in itiative of the Commission or at the request of 
member States. See Article 11.3 of the Basic Anti-dumping Regulation. 
84 WTO document G/ADP/N/230/EU, 4 September 2012. 
85 Article 9(3), Council Regulation (EC) No. 1225/2009, 30 November 2009 (OJ L 343/51, 
22 December 2009). WT/TPR/S/284 • European Union 
 
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  Chart 3.1 Anti-dumping measures in force, by region, 2008-12 
5 5 5 4 35 7 5 6 49398
91 87
812323
23
19
1422
1
1
020406080100120140160
2008 2009 2010 2011 2012Africa Americas Asia Europe Middle EastNumber of measures
a
 
a Other European coun tries outside the EU. 
Source: Information provided by the European  Commission. 
3.75.  In terms of sectors affected by AD measures imposed over the last five years, chemical and 
other metals (e.g. aluminium foil, ferro-silicon, t ungsten electrodes, etc.) each accounted for 22%, 
followed by iron and steel with 20%, and mechan ical engineering with 10% (Chart 3.2). Other 
sectors such as agri/food products (sweetcorn, citrus fruit, strawberries), plastic bags, salmon, trout, biodiesel, glass fibre fabrics, and magnesia bricks combined accounted for around 20%. 
Chart 3.2 Anti-dumping measures imposed, by product, 2008-12 
13
15
23
4126
3
1 111
1
11
1112
2
14
1
0246810121416
2008 2009 2010 2011 2012Footwear Chemical and allied Iron and steel
Other metals Electronics Other mechanical engineering
Textiles and allied Wood and paper OtherNumber of measures
 
Source: Information provided by the European  Commission. 
3.76.  Some of the highest definitive AD duties that resulted from original investigations or reviews 
between June 2010 and June 2012 concern synthetic fibre ropes (82%) from India, polyethylene terephthalate (148.3%) from Korea,
86 stainless steel seamless pipes and tubes (71.9%) from 
                                               
86 The measure on PET from Korea was terminated on 28 February 2012. WT/TPR/S/284 • European Union 
 
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  China, and certain molybdenum wires (64.3%) from China and Malaysia.87 Among all the definitive 
anti-dumping duties in force, the highest ad valorem  duties apply to stainless steel fasteners from 
Viet Nam (up to 707%). 
3.77.  Initiations of countervailing investigations have slightly increased since the previous review. 
During 2011-12, two new definitive measures and one provisional measure were imposed 
(Table 3.6). 
Table 3.6 Countervailing investigatio ns and measures imposed, 2008-12a 
 2008 2009 2010 2011 2012 
Investigation initiations 2 6 3 4 6 
Provisional measures 0 1 4 0 1 
Definitive measures 0 1 3 2 0 
Expired measuresb 0 1 0 3 0 
Confirmation of measure following expiry review 1 0 0 0 0 
Termination of measure following expiry review 0 0 0 1 0 
a As at 31 December 2012. 
b Measures that expired automatically after their five-year imposition, not including the extended 
measures that automatically expired after the extension. 
Source: WTO Secretariat; and European Comm ission online information. Viewed at: 
http://trade.ec.europa.eu/tdi/notices.cfm . 
3.78.  Newly opened investigations in 2012 covered biofuels, steel products, solar panels, and 
bicycles. There are seven countervailing measures in force; some countervailing measures that had been extended before, such as CV measures against PET film from Brazil, India, and Israel, were terminated during this review period (Table A3.3). 
3.79.  The EU does not impose AD or CV measur es on imports from Iceland, Liechtenstein or 
Norway, except for fish and other goods that ar e outside the scope of the European Economic 
Area. 
3.1.7.3  Safeguards 
3.80.  No safeguard measures have been applied since 2005.  3.81.  There was no change in the legislative fr amework for safeguard measures in the EU during 
the period under review. Regulation No. 260/2009 contains the general EU rules on safeguards
88 
which apply to imports from most WTO Members outside the EU. For imports from some other trading partners (mostly non-WTO Members), safeguards are subject to Regulation No. 625/2009.
89 Rules on safeguards on imports of textile products are contained in Regulation 
No. 517/94.90 Regulation No. 427/2003 governs the imposi tion of transitional product-specific 
safeguards on imports from China,91 and will expire in December 2013.92  
3.82.  The Commission is in charge of conducting safeguard investigations in cooperation with 
member States. The adoption of definitive safeguard measures is not subject to the standard 
regime under the new "comitology" rules; the adoption of definitive safeguard measures requires a positive opinion voted by qualified majority of a committee composed of member State 
representatives, as opposed to general "comitology" rules which require a qualified majority to 
                                               
87 Only AD duties in the form of ad valorem  duties were considered. See WTO documents 
G/ADP/N/209/EEC, 28 March 2011; G/ADP/N/216/EEC, 14 October 2011; G/ADP/N/223/EU, 20 April 2012; and G/ADP/N/230/EU, 4 September 2012. 
88 Council Regulation (EC) No. 260/2009, 26 February 2009 (OJ L 84, 31 March 2009). 
89 Council Regulation (EC) No. 625/2009, 7 July 2009 on common rules for imports from certain third 
countries, OJ L 185, 17 July 2009. Annex I of which lists the following "Armenia; Azerbaijan; Belarus; Kazakhstan; North Korea; Russia; Tajikist an; Turkmenistan; Uzbekistan; Vietnam". 
90 Council Regulation (EC) No 517/94, 7 March 1994 as amended. Imports of textiles produced or 
originating in the countries listed in Annex IV are subject to the annual quantitative limits. Annex IV of the Regulation lists the following "North Korea". 
91 Council Regulation (EC) No. 427/2003, 3 March 2003 (OJ L 65, 8 March 2003). 
92 European Commission online inform ation, "Safeguards". Viewed at: 
http://ec.europa.eu/trade/tackling-unfair-trade/trade-defence/safeguards/  [17.02.13]. WT/TPR/S/284 • European Union 
 
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  reverse a Commission proposal to adopt AD/CV measures. Under the EU safeguard legislation, the 
Commission may decide to impose surveillance if the "trend in imports of a product originating in a third country threatens to cause injury to EU pr oducers". Since the last TPR of the EU, there was 
one import surveillance measure in force, on st eel products, which expired on 31 December 2012 
(section 3.1.6). 
3.83.  Recent applied/concluded free trade agreements (FTAs), as well as the recent reformed 
General Scheme of Preference (GSP), also cont ain provisions on safeguards. The implementing 
regulations with regards to the safeguard provisions in the FTAs with Korea and with Central 
America are expected to enter into force in 2013 (section 2.4). The Commission indicates that safeguards measures in accordance with provisions  in FTAs or GSP have not applied to any cases. 
3.1.8  Technical regulations and standards 
3.84.  Technical regulations and conformity assessm ent procedures are adopted at EU level and at 
the level of its member States, i.e. national level. A large amount of legislation on technical requirements and conformity assessment has been  harmonized at EU level. According to the 
Commission, the harmonization legislation assures the free movement of goods and a high level of 
health, safety, environmental and consumer protec tion within the single market. A significant 
disparity between non-harmonized requirements across member States that impedes free 
movement or the need to regulate new policy areas or emerging risks where little or no national 
legislation exists are the most common reasons for adopting harmonization legislation at EU level.
93 The Commission does not have accurate numbers of products that are not subject to non-
harmonized rules.94  
3.85.  The Regulation (EC) No. 764/2008 provides  procedures relating to the application of 
member States' technical requirements, and requires the Commission to publish "a non-exhaustive list of products which are not subject to Community harmonization legislation".
95 Directive 
98/34/EC obliges member States to notify the Commission and other member States of any draft 
technical regulation concerning any product together with a statement of the grounds which make the enactment of that regulation necessary.
96 If the proposed technical rule is considered justified, 
the Commission requests member States to include in the notified text a "mutual recognition 
clause" in the interests of transparency and legal certainty for national administrations and economic operators.
97 This notification procedure has existed since the early 1980s. 
3.86.  In principle, EU-produced and imported goods that are not covered by EU harmonizing 
legislation and have been lawfully placed on th e market of a member State can be marketed in 
another member State, even if they do not comply with the technical regulations of the member State of destination ("mutual recognition" principle, as established in the Regulation (EC) 
No. 764/2008). The only exceptions to this principle are restrictions introduced for reasons 
specified in Article 36 of the TFEU, or for overriding reasons of public interest that are proportionate to the aim pursued. According to the Commission, the most common justification for 
restrictions on the free movement of goods is related to the protection of health and life of 
humans, animals and plants. As recognized by the Commission, "technical obstacles to the free movement of goods within the EU are still widespread," and "those rules apply without distinction to all products, foreign and domestic alike".
98 A number of procedures exist to support the 
                                               
93 European Commission Staff Working Document, SWD(2013) 33 final, 13 February 2013. Viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=swd:2013:0033(51):FIN:EN:PDF . 
94 In 2007, the Commission estimated based on then existing data that around 25% of the volume of 
intra-EU trade in manufactured products is not covere d by harmonized rules; ho wever the Commission also 
noted that this estimate is outdated due to the conti nuous removal of technical ba rriers through harmonization 
legislation. For details see European Commission Staff Working Document SEC(2007) 112, 14 February 2007 and the Impact Assessment accompanying the legislative proposal leading to the adoption of Regulation No. 764/2008, Section 1.5 at pp. 10-11. Viewed at: http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2007/sec_2007_0112_en.pdf . 
95 The list can be consulted on European Commission online inform ation, "DG Enterprise: Mutual 
recognition". Viewed at: http://ec.europa.eu/enterprise/intsub/a12/ . 
96 Directive 98/34/EC of the European Parliament and of the Council, 22 June 1998 (OJ L 24, 
21 July 1998). Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1998L0034:20070101:EN:PDF . 
97 European Commission (2010b). 
98 European Commission document COM(2012) 292 final, 15 June 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0292:FIN:EN:PDF . WT/TPR/S/284 • European Union 
 
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  Commission's monitoring of member  States' compliance with their obligations under the TFEU and 
EU legislation. These procedures, which may eventually culminate in formal infringement proceedings and actions against the member States concerned before the Court of Justice of the European Union, aim to ensure the correct application of EU law and to eliminate unjustified 
restrictions to the free movement of goods. 
3.87.  Member States that use existing technical regulations to restrict market access for products 
lawfully marketed in another member State must justify their position with technical or scientific 
evidence, and must grant economic operators affect ed by the restriction an opportunity to provide 
comments.  
3.88.  Between the entry into force of Regulation (EC) No. 764/2008 on 13 May 2009 and 
31 December 2011, the Commission received 1,524 notifications from seven member States 
denying within their territory the marketing of non- harmonized products lawfully marketed in other 
member States.
99 The notifications cover articles of precious metals, foodstuffs (or food 
additives/medicines), energy drinks and electrical equipment. 
3.89.  The Commission has overall responsibility for the implementation and administration of the 
TBT Agreement. The TBT enquiry point for EU legisl ation is the Directorate-General for Enterprise 
and Industry of the European Commission. Member States have designated TBT enquiry points for 
national legislation. 
3.90.  The EU notified 154 technical regulation s and conformity assessment procedures to the 
WTO in the period from January 2011 to February 2013. The notifications cover, inter alia,  
household appliances, electric and electronic equipment, biocidal products, machinery, motor 
vehicles and parts, measuring devices, chemical s, food, cosmetics, and textile products. The 
notifications normally specify a comment period of at least 60 days and a proposed date of adoption after the expiry of the comment period.
100 During the period under review, the EU 
submitted a large number of addenda, providing addi tional information on the adoption, entry into 
force, and content of the final text of previously notified TBT measures. 
3.91.  Individual member States notified 97 technical regulations and conformity assessment 
procedures during the period under review. France accounted for the largest share with 25%, 
followed by the Czech Republic with 22%, Sw eden (18%), Denmark (6%), Lithuania (5%), 
Finland, Hungary, Italy, and Slovenia (4% each ). Estonia, Germany, the Netherlands, and the 
United Kingdom also made notifications. According to the Commission, the EU replied, on behalf of 
its member States, to other WTO Members' comments regarding notified measures proposed or 
adopted in individual member States. 
3.92.  In the context of the last TPR of the EU, some WTO Members were concerned that the EU's 
technical regulations and conformity assessment procedures would create unnecessary obstacles 
to trade such as the compliance overburdens on foreign small-and-medium-sized enterprises.101 In 
response, the EU indicated that its regulations, most of which are subject to an impact 
assessment, are developed according to a transparent process allowing ample opportunity for 
interested parties from other WTO Members to participate and make their views known, and are largely based on relevant international standa rds. Moreover, regulatory impact assessments 
contain a specific "SME test" that analyses in detail the effects of the legislative proposals on 
SMEs.
102 The Commission pointed out that several measures were taken to mitigate the 
compliance burdens on SMEs (e.g. reduced registra tion or conformity assessment fees, simplified 
administrative requirements, etc.). The EU also pr ovides technical assistance to assist developing 
countries meet regulatory requirements on bilateral and multilateral bases. Between January 2011 
and February 2013, WTO Members raised concerns in the TBT Committee over several measures proposed or adopted by the EU or its individual member States (Table 3.7). 
                                               
99 1,378 notifications were submitted by one member St ate, and concern articles of precious metals. In 
the opinion of the Commission, member States do not notify all decisions under Article 6(2) and 7 of the 
Regulation they take. See European Commission document COM(2012) 292 final, 15 June 2012. Viewed at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0292:FIN:EN:PD .F 
100 According to the Commission, the EU notifies draft measures to the WTO once a complete text of the 
measure is available, but at a stage when  comments can be taken into account. 
101 WTO document WT/TPR/M/248/Add.1, 30 August 2011. 
102 European Commission online information, "DG-Enterprise: Small and medium-sized enterprises test". 
Viewed at: http://ec.europa.eu/enterprise/policies/sme/small-business-act/sme-test/index_en.htm . WT/TPR/S/284 • European Union 
 
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  Table 3.7 Specific trade concerns over  EU TBTs, January 2011-February 2013 
Issue WTO reference 
documentsa Member(s) concerned First 
raised 
EU restriction on the use of 
certain hazardous substances in electrical and 
electronic equipment G/TBT/Notif.00/310/Corr.1 Australia, Canada, 
China, Israel, Japan, Jordan, Korea, Malaysia, 
Mexico, Thailand, Egypt, 
United States, Bolivarian Republic of 
Venezuela 31/03/1999
 
Regulation on certain wine 
sector products G/TBT/W/290 Argentina, Australia, 
Plurinational State of 
Bolivia, Brazil, Canada, 
Chile, Mexico, New 
Zealand, Paraguay, 
Peru, South Africa, 
United States, Uruguay 01/10/1999  
Regulation on the 
registration, evaluation and 
authorization of chemicals 
(REACH) G/TBT/W/289 Argentina, Australia, 
Botswana, Brazil, 
Canada, Chile, China, 
Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, 
Egypt, El Salvador, 
India, Indonesia, Israel, Japan, Korea 02/11/2005
 
Toys G/TBT/N/EEC/184/Add.1 China, Korea 20/03/2008  
Accreditation and market 
surveillance relating to the 
marketing of products G/TBT/N/EEC/152 Australia, Korea, 
Thailand, United States 25/06/2009  
Dairy regulation (Italy) G/TBT/N/ITA/13 Australia, New Zealand 24/03/2010  
Registration on traditional 
herbal medicinal products G/TBT/M/56 China, Ecuador, India 23/06/2010  
France – The National 
Commitment for the 
Environment (Grenelle 2 
Law) G/TBT/M/54 Argentina, Cuba, India, 
Korea, South Africa, 
Uruguay 15/06/2011  
Renewable Energy Directive  G/TBT/M/54 Argentina, Indonesia, 
United States 15/06/2011  
Ecodesign requirements for 
air conditioners and comfort 
fans G/TBT/M/55 China 10/11/2011  
Honey containing pollen 
from genetically modified 
maize MON810, Ruling from ECJ G/TBT/M/55 Argentina, Brazil, 
El Salvador, Mexico, 
Uruguay, Canada, United States 10/11/2011
 
Medicinal products for 
human use, as regards the 
prevention of the entry into 
the legal supply chain of 
falsified medicinal products G/TBT/M/56 India, Brazil, China 20/03/2012  
Safety evaluation of 
childcare cosmetic products G/TBT/M/56 China 20/03/2012  
Alternatives to animal 
testing and new cosmetic 
regulations G/TBT/M/56 China 20/03/2012  
Provisions on limit values 
for allergenic substances in children's products 
(2009/48/EC) G/TBT/M/56 China 20/03/2012
 WT/TPR/S/284 • European Union 
 
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  Issue WTO reference 
documentsa Member(s) concerned First 
raised 
Regulation (EC) 
No.1222/2009 La belling of 
Tyres, Commission 
Regulation 
(EC) No.228/2011, 
No.1235/2011 G/TBT/M/56 Korea 20/03/2012  
Wine and Grape Juice 
Certification G/TBT/M/56 United States, Brazil 20/03/2012  
Protected designations of 
origin and geographical 
indications, traditional 
terms, labelling and 
presentation of certain wine 
sector products G/TBT/M/57 South Africa, New 
Zealand, Australia, 
Canada, Argentina, 
United States  13/06/2012  
Spain – Ministerial Order of 
the Government of Spain IET/822/2012, published on 
21 April 2012 and in force 
as of 22 April 2012 G/TBT/M/57 Argentina 13/06/2012
 
Amended limit values for 
soluble cadmium in toys 
(Directive 2012/7/EU) G/TBT/M/57 China 13/06/2012  
Air conditioners, liquid 
chilling packages and heat 
pumps, with electrically 
driven compressors, for space heating and cooling. 
Testing and rating at part 
load conditions and calculation of seasonal performance (EN 14825) G/TBT/M/57 China 13/06/2012
 
Lists of substances 
prohibited and restricted in 
cosmetic products 
(2008/0025 COD and other 
related regulations) G/TBT/M/57 China 13/06/2012  
a Only the most recent source document is cited. 
Source: WTO Secretariat. 
3.93.  Technical regulations and conformity asse ssment procedures are established at EU level 
through EU legislative acts adopted by the Eu ropean Parliament and the Council, or by the 
Commission on the basis of implementing acts or de legating acts conferred by means of an EU act. 
In addition to publications in the Official Journal , the Commission maintains a dedicated website 
for all public consultations on policy and legislative initiatives.103 Although there is no statutory 
requirement to publish notices of preparation of legislation, the Commission indicated that legislative proposals to the European Parlia ment and the Council are published in the Official 
Journal  and the EU decision-making process ca n be monitored through the internet.
104 The 
Commission's Comitology Register enables the tracing of the different stages of the adoption of an 
implementing measure.105 According to the Commission, the period allowed between publication of 
a measure and its application to economic operators varies depending on the measure and 
whether the measure needs to be transposed into national legislation. The Commission noted that, in general, the minimum implementation period for harmonization legislation is between 18 and 
                                               
103 European Commission online information,  "Your Voice in Europe". Viewed at: 
http://ec.europa.eu/yourvoice/index_en.htm  
104 European Parliament online  information. " Legislativ e Observatory". Viewed at: 
http://www.europarl.europa.eu/oeil/home/home.do  
105 European Commission online informatio n, "Comitology Register". Viewed at: 
http://ec.europa.eu/transparency/regcomitology/index.cfm  WT/TPR/S/284 • European Union 
 
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  24 months; it may be longer for legislation that breaks new ground or introduces substantial 
amendments to existing requirements.  
3.94.  Legislations relating to technical regulations and conformity assessment procedures is 
published in the Official Journal  once it is adopted. The Commission maintains the Export Helpdesk 
website listing the requirements by sector.106 In addition, an overview of EU legislation relating to 
various product areas is available on the website of the Commission's Directorate-General for Enterprise and Industry.
107 
3.95.  Under the "new approach" to technical harmonization launched in the mid-1980s, legislation 
adopted at EU level contains "essential requirements" expressed in terms of performance-based indicators or objectives. Essential requirements defi ne the results to be attained, or the hazards to 
be dealt with, without specifying any particular technical solution. New-approach legislation covers 
a wide variety of products, including electrical and electronic products, pressure equipment and 
gas appliances, toys, machinery, medical devices, radio and telecom equipment, elevators, personal protective equipment, equipment for use in explosive atmospheres, and recreational 
craft. The so-called "old approach" based on detailed product-specific technical requirements is 
currently applied in the motor vehicles sector. Other specific approaches to EU harmonization have been developed in sectors such as pharmaceuticals, chemicals, cosmetics, construction products, 
tailored to their particular needs. The Commission  does not have data on the market shares of 
products subject to new approach legislation and other types of harmonizing legislation.  
3.96.  Technical solutions to meet essential requirements under the "new approach" regulations 
are set out for most products in harmonized European standards developed by the European 
Standardization Organizations based on a request from the Commission.
108 Compliance with 
"harmonized European standards", which according to the Commission are meant to express the state-of-the-art in relation to a specific produc t/risk, confers presumption of conformity with the 
essential requirements covered by the standards. Hence, manufacturers who have followed 
harmonized standards do not have to provide detailed justification as to the adequacy of the applied technical solutions. However, manufacturers remain free to use other technical means to 
demonstrate compliance with those essential requirements. Harmonized standards, which remain 
voluntary, can therefore also be regarded as  a benchmark against which manufacturers can 
develop innovative solutions.  
3.97.  European Standards Organizations include the European Committee for Standardization, the 
European Committee for Electrotechnical Standardization, and the European Telecommunications 
Standards Institute. European Standards Organi zations have accepted the WTO Code of Good 
Practice. In addition, all member States have noti fied acceptance of the Code by one or more of 
their national standards organizations. In addition , voluntary European standards for services have 
also been developed.
109 
3.98.  Goods that are covered by "new-approach" technical regulations are subject to conformity 
assessment procedures commensurate with the level of risk associated with them. Large product 
sectors considered low to medium risk are subject to a supplier's declaration of conformity. These include electrical and electronic products, energy -related products, radio and telecom equipment, 
toys, most machinery products, and certain categories of personal protective equipment. In 
addition, no specific conformity assessment procedure is required for consumer goods that, in the 
absence of more specific safety legislation at EU level, are subject to the General Product Safety Directive (these goods include childcare goods,  textiles, and several other consumer goods).
110 For 
                                               
106 European Commission online information, "Export Helpdesk". Viewed at: 
http://exporthelp.europa.eu/index_en.html  
107 European Commission online information, "DG Enterprise: All topics". Viewed at: 
http://ec.europa.eu/enterprise/topics/index_en.htm  
108 The EU considers that standardisation is the definition of voluntary technical or quality specifications. 
Details of European standards and European standard ization policy can be found  the European Commission 
online information, "DG Enterprise : European Standards". Viewed at: 
http://ec.europa.eu/enterprise/policies/european-standards/index_en.htm  
109 European Commission online information, "DG Enterp rise: Standardisation in the internal market for 
services". Viewed at: http://ec.europa.eu/enterprise/policies /european-standards/standardisation-
policy/policy-activities/services/index_en.htm  
110 Directive 2001/95/EC of the European Parliament and of the Council, 3 December 2001 (OJ L 11, 
15 January 2002). WT/TPR/S/284 • European Union 
 
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  certain categories of products deemed high risk, third-party conformity assessments conducted by 
"notified bodies" are required. These high-risk goods include medical devices, pressure equipment, lift, cableways, gas appliances, and most types of equipment for use in explosive atmospheres.  
3.99.  Notified bodies are certification, inspec tion, and testing bodies designated by member 
States to perform specific conformity assessment activities mandated under EU product legislation. 
The designation of notified bodies by member States involves a technical assessment of their 
competence and adequacy of their organization and procedures, typically based on accreditation, 
and a political decision (the actual designation) whereby member States take responsibility for the 
operation and supervision of the notified body. In pr inciple, notified bodies must be accredited by 
the national accreditation body in the member State where they are established.
111 Conformity 
assessment bodies that are not established in the European Economic Area (EEA) cannot qualify as 
notified bodies. 
3.100.  Accreditation is regulated at EU level as provided in Regulation (EC) No. 765/2008 on 
accreditation and market surveillance. Member States must appoint a single national accreditation 
body.112 National accreditation bodies cannot be involved in conformity assessment, operate on a 
for-profit basis, or compete with other accreditation bodies elsewhere in the EU. National accreditation bodies must recognize the equivalence of the services of other national accreditation 
bodies that have successfully passed the peer review. Member States cannot refuse certificates or 
test reports issued by a conformity assessment body accredited by another member State's national accreditation body.
113 
3.101.  The designated notified body may subcontr act specific parts of its conformity assessment 
activities to "a different legal entity"114 according to the legislation and related standards for which 
it is accredited and only to the extent allowed by such legislation and standards. The notified body in question must demonstrate to the national accreditation body that subcontracted activities are 
carried out in a competent and reliable manner consistent with relevant requirements. Any 
certificates prescribed by the applicable legislat ion must be issued exclusively under the name and 
responsibility of the notified body that holds the accreditation in the EU. 
3.102.  Within the EU and EFTA, accreditation bodi es cooperate within the framework of European 
Co-operation for Accreditation (EA). Under EA policy, European accreditation bodies' relationship with accreditation bodies from countries outside EFTA or the "European neighbourhood" should be managed through the International Accreditation Forum (IAF) Multilateral Recognition Agreement 
(MLA) and the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition 
Agreement (MRA).
115 Regarding countries from the European neighbourhood, the EU notified the 
WTO that an agreement on conformity assessment and acceptance of industrial products (ACAA) 
with Israel entered into force since 19 January 2013.116 The ACAA is a specific type of mutual 
recognition agreement, based on alignment of the legislation, standards and related infrastructure 
of the partner country concerned with those of th e EU. In the covered sectors, the ACAA provides 
for mutual acceptance of products, without the need for any additional testing and certification. 
While the focus of ACAAs is on products subject to EU harmonization legislation, the ACAAs also 
foresee the possibility of granting mutual acceptance of specific industrial products (to be individually listed in an Annex) that are lawfully placed in the each other's market in the absence 
of common regulation. At present, the EU-Israel ACAA is limited to one sector (good 
manufacturing practice for pharmaceuticals) and scope extensions will be possible in the future. 
                                               
111 Three exemption scenarios allow conformity assess ment body may seek accreditation elsewhere: the 
member State in question has not set up a national a ccreditation body; the national  accreditation body does 
not perform accreditation for the activity for which accreditation is sought; and the relevant national 
accreditation body has not successf ully undergone peer evaluation. 
112 All national accreditation bodies must be member s of the European Co-operation for Accreditation 
(EA) which is the official accreditatio n "infrastructure", and be subject to regular peer evaluations. The EA is 
responsible for managing peer evaluations of national accreditation bodies' conformity to the relevant legal 
requirements. 
113 Article 11, Regulation (EC) No. 765/2008 of the Europe an Parliament and of the Council, 9 July 2008. 
114 For example, another conformity  assessment body established in other member State or even 
outside the EEA. 
115 European co-operation for Accreditation document EA-1/13: 2009, EAs Relationship with 
Accreditation Bodies not being Members of the EU or EFTA, May 2009. The following participate in the 
European neighbourhood policy: Alge ria, Armenia, Azerbaijan, Belarus,  Egypt, Georgia, Israel, Jordan, 
Lebanon, Libya, Moldova, Morocco, Palestin ian Authority, Syria, Tunisia, Ukraine. 
116 WTO document G/TBT/10.7/N/121, 7 February 2013. WT/TPR/S/284 • European Union 
 
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  ACAA negotiations are ongoing with the Former Yu goslav Republic of Macedonia, and preparations 
for ACAA negotiations are under way with Tunisia,  Morocco, Egypt, Jordan, Algeria, Lebanon, the 
Palestinian Authority, Ukraine, Moldova, Georgia and Armenia. 
3.103.  For products subject to mandatory third- party conformity assessment in a non-harmonized 
area pursuant to member State legislation, memb er States' national authorities may refuse to 
accept conformity attestations issued under accreditation by non-European accreditation bodies that do not comply with the new European requ irements even if they are signatories to the 
ILAC/IAF MRA/MLA.
117 Where mandatory third-party conformity assessment is provided for in the 
harmonised area, the relevant EU legislation specifies the applicable procedures, the qualifications that conformity assessment bodies must fulfil (e.g. in  the case of notified bodies), including, where 
applicable, the conditions of acceptance of tests and certificates from conformity assessment 
bodies not established in the EU. In addition, ther e exist a number of bilateral mutual-recognition 
agreements relating to conformity assessment, ac cording to which member State authorities must 
accept certificates issued by foreign bodies in accordance with the agreement. Currently the EU 
has such agreements in place with: Australia; Canada; Israel; Japan; New Zealand; Switzerland; 
and the United States.
118 The Commission also noted that recently concluded/signed FTAs also 
include certain TBT provisions and, in some cases, contain general or sector-specific arrangements 
aimed at facilitating acceptance of conformity assessment results. 
3.104.  In addition to a common accreditation framework, Regulation (EC) No. 765/2008 sets out 
common principles for market surveillance.119 In February 2013, the Commission submitted 
proposals for revision of the regulatory framework for market surveillance, with the aim of 
streamlining and simplifying surveillance operations whilst maintaining a high level of protection of 
the health and safety of consumers.120 Market surveillance activities are organized at the level of 
member States who must notify the Commission, through the rapid information system "RAPEX", 
of any restrictive measures taken against products presenting a serious risk.121 In 2012, 
2,278 measures (1,938 of them concerning products presenting a serious risk) were notified to the Commission, compared with 2011 when 1,803 measures were notified (1,556 concerning a serious 
risk). As regards measures against dangerous professional products, the number of notified 
measures to the Commission has shown a pattern of increase since the entry of force of Regulation (EC) No. 765/2008: in 2012, 37 notifications submitted to the Commission with 31 presenting serious risks, up from 25 notifications (17 as serious risks) in 2011; and 20 with 7 as serious risks 
in 2010.
122 The Commission expects that the notification figures will go up over time as member 
States become more proactive in the area of prof essional products and fully adjust their practices 
to the broader scope of RAPEX. Regarding imports, the Regulation requires that customs 
authorities must carry out "appropriate checks on the characteristics of products on an adequate 
scale" before those products can be marketed in the EU. 
                                               
117 European Commission document SWD (2013) 35 final, 13 February 2013. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=swd:2013:0035:FIN:EN:PDF.  
118 European Commission document SWD (2013) 35 final, 13 February 2013. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=swd:2013:0035:FIN:EN:PDF.  
119 Regulation (EC) No. 765/2008 complements the market surveillance rules set out in 
Directive 2001/95/EC (General Product Safety Directive)  and in sector-specific harmonization legislation. 
120 European Commission online information, "DG Enterprise: Market surv eillance". Viewed at: 
http://ec.europa.eu/enterprise/policies/single-m arket-goods/internal-market-for-products/market-
surveillance/index_en.htm  
121 The reference to the RAPEX system has also had the effect of extending the obligation to send RAPEX 
notifications to all goods falling within the scope of EU harmonisation legislation, including products for use in a professional context (e.g. industrial machinery) and products which may harm pu blic interests other than 
health and safety (e.g. environment, security, fairne ss of commercial transactions, etc.). See European 
Commission document COM(2013) 77 final, 13 February 2013. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2013:0077:FIN:EN:PDF  
122 The reference to the RAPEX system has also had the effect of extending the obligation to send RAPEX 
notifications to all goods falling within the scope of EU harmonization legislation, including products for use in a professional context (e.g. industrial machinery) and products which may harm pu blic interests other than 
health and safety (e.g. environment, security etc.). However, the Commission pointed out that not all 
harmonized products are subject to RAPEX notifications,  e.g. for medicinal produc ts, medical devices member 
States use specific alert systems. WT/TPR/S/284 • European Union 
 
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  3.1.9  Sanitary and phytosanitary standards (SPS) 
3.105.  The European Union and each of its member States have notified enquiry points under the 
SPS Agreement.123 The Directorate General for Health and Consumers of the European 
Commission is the EU notification authority.124 
3.106.  The EU notified 51 regular and 7 emergency SPS measures to the WTO between 
1 January 2011 and 31 January 2013. The EU considers that, of the 41 notified measures for which there was a relevant international standard, 29 conformed to that international standard. Apart 
from emergency notifications, almost 85% of  notifications specified the multilaterally 
recommended 60-day period for public comment (u p from below 60% in the last TPR); for the 
rest, the EU considered that a comment period was not applicable, or the period between publication of the notification and adoption of the measure was less than 60 days. Among the 
notified measures, the EU identified 13 as "trade fa cilitating". In addition, the EU submitted a large 
number of addenda during the period under review, providing additional information on previously 
notified SPS measures. 
3.107.  Among the EU member States, only th e Netherlands and France made individual 
notifications via the EU Notification Authority and Enquiry Points during the review period.
125 The 
notification from the Netherlands concerns the legislation of SPS procedure for ornamental plants 
from Asia; and the notification from France co ncerns the amended legislation of the use of 
enzymes in certain manufactures of certain foods and beverages. 
3.108.  Since the last Review of the EU, WTO Members have discussed concerns in the SPS 
Committee regarding a few EU measures. Five new trade concerns were raised for the first time 
during the review period (Table 3.8).  
Table 3.8 Specific trade concerns over EU  SPS measures, January 2011-February 2012 
 WTO reference 
documenta Raised by Date first 
raised Solution 
Application and modification 
of Regulation on Novel Foods G/SPS/R/64 Colombia; 
Ecuador; Peru 01/03/2006 Not reported 
Regulation No. 1099/2009 G/SPS/R/63 India 29/06/2010 Not reported 
Maximum residue levels of 
pesticides G/SPS/R/64 India 20/10/2010 Not reported 
Regulation on Polyamide and 
Melamine Plastic Kitchenware G/SPS/R/62 China; Hong 
Kong, China 30/03/2011 Not reported 
Regulations on Cadmium in 
Cocoa G/SPS/R/64 Ecuador 19/10/2011 Not reported 
EU Court of Justice ruling 
regarding pollen derived from 
GMOs G/SPS/R/64 Argentina 19/10/2011 Not reported 
Limits of Aluminium in Flour 
Products G/SPS/R/66 China 27/03/2012 Not reported 
Testing of Pesticide Residues G/SPS/R/67 India 10/07/2012 Not reported 
a Only the most recent source document is cited. 
Source: WTO Secretariat. 
3.109.  EU member States are members of the Codex Alimentarius Commission, the World 
Organization for Animal Health (OIE), and the International Plant Protection Convention (IPPC). 
The EU itself is a member of Codex and the IPPC. 
3.110.  Since the last TPR of the EU, there has be en no change in the legislative framework for 
SPS: Regulation No. 178/2002 (known as the General Food Law), Regulation No. 852/2004, 
853/2004, and 854/2004 on food hygiene, Regula tion No. 882/2004 on official controls, and 
Council Directive 2000/29/EC on plant health. 
                                               
123 WTO document G/SPS/ENQ/26, 11 March 2011. 
124 WTO document G/SPS/NNA/16, 11 March 2011. 
125 WTO documents G/SPS/N/NLD/70, 11 Apri l 2011; and G/SPS/N/FRA/8, 15 May 2012. WT/TPR/S/284 • European Union 
 
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  3.111.  SPS legislation is to a very large extent harmonized in the EU, hence SPS measures are 
adopted mostly at EU level; only in very few cases member States may also adopt individual SPS measures.
126 SPS measures at EU level are usually established through "implementing acts" that 
are subject to the "comitology" procedures prov ided in Regulation (EU) No. 182/2011. The main 
regulatory committees involved in the development of SPS measures are the Standing Committee 
on the Food Chain and Animal Health, and the Standing Committee on Plant Health.127 Provided by 
the Lisbon Treaty, SPS measures may also be established on the basis of powers conferred to the 
Commission to adopt "delegated acts". The Euro pean Food Safety Authority (EFSA) is an 
independent risk assessment body of the EU, prov iding independent scientific advice on existing 
and emerging risks related to SPS matters including food safety and genetically modified organisms authorization. 
3.112.  All food must comply with the general requirements laid down in the General Food Law and 
specific requirements depending on the produc t. The General Food Law sets out the general 
principles governing food and feed at EU and member State level; the Commission noted that 
measures adopted under this Law are always based on risk analysis. The General Food Law 
permits the establishment of "provisional" measures if "the possibility of harmful effects on health 
is identified but scientific uncertainty persists".
128 These measures must be "proportionate and no 
more restrictive of trade than is required to achi eve the high level of health protection" in the EU, 
and must be reviewed "within a reasonable period of time". 
3.113.  Measures adopted under the General Food Law must take into consideration international 
standards, "except where such standards or relevant parts would be an ineffective or inappropriate 
means for the fulfilment of the legitimate object ives of food law or where there is a scientific 
justification, or where they would result in a diff erent level of protection from the one determined 
as appropriate in the EU". In the context of the last review of the EU, some Members sought 
clarification on the actual level of protection adopted by the EU, and the consistency of the 
application of protection.129 Regarding animal health and food of animal origin, the Commission 
stated that EU legislation is largely based on OIE/Codex recommendations, standards, and 
guidelines;130 in rare cases where the EU does not fo llow OIE/Codex recommendations, the EU SPS 
measures are based on the scientific opinion of the EFSA. On measures in the field of plant health and products of non-animal origin, the Commission noted that the EU follows the relevant international standards where they exist.  
3.114.  Imported food must comply with relevant EU requirements or those recognized by the EU 
to be at least equivalent to the ones established in the EU food law and animal and plant health rules. The EU has concluded agreements in the veterinary or, more generally, in the SPS field with 
Andorra, Canada, Chile, EFTA, Faroe Islands, Liechtenstein, Mexico, New Zealand, San Marino, 
Switzerland, the United States and Korea.
131 The EU has also concluded agreements with 
Singapore, Peru and Colombia, and with Central America132 that contain specific provisions to 
facilitate trade once the respective SPS import requirements are met. 
3.115.  Imports of live animals and products of anim al origin are allowed only from those countries 
or regions that have received prior approval, and thus appear on the relevant "third country list" 
managed by the Commission.133 This list can be consulted by sector or by country. The term 
"products of animal origin" covers food that has been derived from animals or comes from 
animals, whether processed (e.g. ham, marinated fish, egg powder, and gelatine) or not 
                                               
126 In the context of previous review of the EU, the Commission notes that SPS measures not being 
harmonized are very residual. See WTO document WT/TPR/M/248/Add.1, 30 August 2011. 
127 These committees are composed of experts of the member States and of the Commission. 
128 Article 7(1). 
129 WTO document WT/TPR/M/248/Add.1, 30 August 2011. 
130 European Commission (2007). 
131 For detailed information about these agreements, see the European Commission online information, 
"International Affairs: Sanitary and Phytosanitary Agreements". Viewed at: http://ec.europa.eu/food/international/trade/agreements_en.htm  [24.02.13] . 
132 The agreements with Peru and Colombia, and wi th Central America are expected to be applied 
in 2013. 
133 Detailed information can be found on the Europe an Commission (DG-SANCO)  online information, 
"International Affairs: Import Conditions – Third Countries". Viewed at: http://ec.europa.eu/food/international/trade/third_en.htm  [25.02.13]. WT/TPR/S/284 • European Union 
 
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  (e.g. fresh meat, fishery products, raw milk, eggs, and honey).134 It also covers products not 
intended for human consumption, whether processe d (e.g. pet food) or not (e.g. raw material for 
pharmaceutical use, wool, hides, and skins). 
3.116.  Requests for first-time imports of live animals and products of animal origin must be 
submitted to the Commission by the competent national authority of the exporting country. 
In general, the approval process involves an eval uation, including an on-site audit visit, by the 
Commission's inspection service, the Food and Vete rinary Office (FVO). The objective of the audit 
is to evaluate whether the animal and public health situation, official services, legal provisions, 
control systems, and production standards meet EU requirements. The Commission indicates that 
it does not charge a fee for its audits and pays the expenses of the audit team. 
3.117.  If the evaluation outcome is satisfacto ry, the Commission prepares draft legislation to 
include the country in question on the lists regarding animal and public health. The Commission 
adopts the draft legislation provided that the Standing Committee on the Food Chain and Animal Health agrees. Approvals may cover all or part of a country, reflecting its animal and public health 
status and the type of animal or product of animal origin for which approval is sought. Applicant 
countries must be OIE members, have systems in place for the rapid detection, reporting, and confirmation of OIE-listed diseases, and fulfil other legislative requirements. The Commission has 
published guidance on these requirements.
135 
3.118.  In addition to being placed on the releva nt list, countries seeking to export animals and 
products of animal origin to the EU must obtain approval for their residue monitoring programme. For live animals, hatching eggs and table eggs of fowl ( Gallus gallus ) and turkeys, the exporting 
country must have a salmonella control programme in these animal populations. For certain food 
products, food safety criteria (salmonella, listeria) apply. Products of animal origin may be imported into the EU only from food businesses (e.g. slaughterhouses, processing plants and 
fishing vessels) that appear on lists drawn up and updated by the Commission on the basis of a 
request from the exporting country. The compet ent authorities of exporting countries must 
guarantee the requirements are met, and must inform the Commission if a [listed] establishment 
no longer fulfils the requirements. For food, these approvals also involve the adoption of legislation 
by the Commission. The Commission has published guidance on the criteria for these approvals.
136 
Imports of meat are also subject to certification on the protection of animals at the time of slaughter or killing.
137 There are no statutory limitations regarding the duration of the process to 
approve first-time imports of live animals and products of animal origin. 
3.119.  Control procedures on imports of live animals and products of animal origin are largely 
harmonized across the EU. Imports of those goods must be accompanied by health certification 
attesting to the fulfilment of EU import conditions. They must undergo official controls at the 
EU-approved Border Inspection Posts (BIPs) on th e EU border and may be subject to additional 
controls at the destination countries. The official controls at the border involve documentary, 
identity, and physical checks.138 The frequency of physical checks may be reduced for products of 
animal origin subject to EU harmonized requirements, taking into account the risk profile of the product concerned.
139 Imports of live animals must be notified to the border inspection post at 
                                               
134 European Commission (2006), Guidance document key questions related to import requirements and 
the new rules on food hygiene and official food controls, January 2006. Viewed at: http://ec.europa.eu/food/international/trade/interpretation_imports.pdf . 
135 European Commission document SANCO/7166/2010. Viewed at: 
http://ec.europa.eu/food/international/trade/importing_en.htm . See also, European Commission online 
information, "International Affairs,  Import Conditions". Viewed at: 
http://ec.europa.eu/food/international/trade/ . 
136 European Commission document SANCO/7166/2010. Viewed at: 
http://ec.europa.eu/food/international/trade/importing_en.htm . See also, European Commission online 
information, "International Affairs,  Import Conditions". Viewed at: 
http://ec.europa.eu/food/international/trade/index_en.htm . 
137 The principal legislation on animal welfare is li sted in: European Commiss ion online information, 
"Animal Welfare: Main Community Legislative References". Viewed at: http://ec.europa.eu/food/animal/welfare/references_en.htm . 
138 Consignments of live animals and products of animal origin must also be accompanied by the model 
health certificate set out in EU legislation for the relevant species or product. In the absence of an EU model 
health certificate for a particular species or prod uct, member States may establish their own import 
requirements. 
139 Decision 94/360/EC, 20 May 1994 (OJ L 158, 25 June 1994). WT/TPR/S/284 • European Union 
 
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  least 24 hours prior to arrival in the EU; imports of products of animal origin must be notified 
before arrival. Notifications may be submitted electronically through the Trade Control and Expert System (TRACES); an electronic communication tool that allows all the veterinary inspectors in BIPs to access the documents with the outcome of checks performed by other BIPs. 
3.120.  Where recurrent problems have been identifi ed with certain products of animal origin from 
a given third country, a safeguard measure can be adopted, i.e. the "special import conditions". These measures of "special import conditions" consist of up to 100% testing of the consignment or 
pre-export testing and certification. The list rega rding products from third countries subject to 
"special import conditions" is available to the public on the website of the European Commission.
140 These measures currently affect eight WTO Members and involve fishery products, 
horse and rabbit meat, poultry, eggs and egg products, honey, milk products, and food and feed 
(November 2012).141 
3.121.  Unlike for animals and products of animal  origin, first-time imports of plants and their 
products do not require pre-approval. The same principle applies to food of non-animal origin, 
including fruits, vegetables, cereals, drinks, spices, condiments, and food of mineral origin. All food 
must comply with the general requirements on food hygiene in Regulation No. 852/2004, and, 
depending on the product, on contaminants, pesticide residue levels, food additives, food 
irradiation, novel foods, and radioactivity. There are also product-specific requirements for 
quick-frozen foodstuffs, foodstuffs for particular  nutritional purposes, and genetically modified 
organisms. Certain plants and plant products must comply with phytosanitary requirements. 
3.122.  In general, feed and food of non-animal origin may enter the EU without certification by 
the exporting country or pre-arrival notification. Authorities of member States must organize 
regular official controls for such imports. Control activities in member States must take place at an appropriate place, which may be the border, point of release for free circulation, or retail outlets. 
Consignments of certain imports of feed and food of non-animal origin specified in Annex I to 
Regulation No. 669/2009 must be notified before arrival, and must enter the EU through designated points of entry, where they are subject to reinforced controls. These include 
documentary checks on all consignments, and identity and physical checks, including laboratory 
analyses, at the frequency established by Annex I (subject to quarterly review). 
3.123.  Plants and plant products listed in Council Directive 2000/29/EC (Annex V, Part B) must be 
accompanied by a phytosanitary certificate issued by the competent authority of the exporting 
country, and are subject to border controls, including physical inspection. The frequency of 
controls may be reduced for products from specific countries, based on risk profiling. There are 52 products from specific countries subject to reduced inspections. Unless determined by member 
States on an exceptional basis for particular commodities, imports of plants and plant products are 
not restricted to specific border posts. 
3.124.  The Rapid Alert System for Food and Feed (RASFF) is a network managed by the 
Commission that allows food and feed authorities of member States to exchange information about 
measures taken in response to serious risks detect ed in relation to food and feed. Measures taken 
by member States, e.g. recalls of food/feed, or border rejections of consignment of food/feed, 
must be immediately notified to the Commission (Table 3.9).
142 There are two kinds of RASFF 
notifications: market notifications and border rejections. A member of the network sends a market 
notification143 when a risk is found in a food or feed  product placed on the market whereas a 
border rejection is sent when a product has been refused entry into the EU. In the context of the 
previous review of the EU, some WTO Members raised concerns and asked questions about the 
transparency of the RASFF, and potential restrictions on trade.144 The Commission indicates that 
one of the objectives for RASFF is to assist the risk assessment of food and feed, and the exporting 
country concerned will be notified and allowed to provide feedback when the consignment is 
notified to the RASFF. According to the Commissi on, notifications to the RASFF do not trigger 
                                               
140 European Commission online information, "DG SANCO: Special Import Conditions". Viewed at: 
http://ec.europa.eu/food/animal/bips/special_imports_en.htm . 
141 Albania, Bangladesh, China, India, Japan, Mexico , Myanmar, and Ukraine. The updated list is found 
on European Commission online information. Viewed at: http://ec.europa.eu/food/animal/bips /docs/special_impo rt_conditions.pdf . 
142 Article 50 of the General Food Law sets out the criteria for notification to the RASFF. 
143 There are two types of market notifications: alert and information notifications. 
144 WTO document WT/TPR/M/248/Add.1, 30 August 2011. WT/TPR/S/284 • European Union 
 
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  immediate restrictions on trade. The Commission noted that Standard Operation Procedures 
(SOPs) for using RASFF are currently under review, and will be made public in 2013. These Procedures are intended to harmonize the use of RASFF between EU member States and allow the system to work in a more coordinated manner.
145  
Table 3.9 RASFF notifications, January 2011-December 2012 
Year Alerta Border 
rejectionb Informationc Information 
for 
attentiond Information 
for 
follow-upe 
Original notification       
2011 617 1,813 26 697 544 
2012 526 1,715 0 682 508 
Follow-up notification       
2011 2,265 1,053 421 480 1,126 
2012 2,312 906 74 663 1,326 
a Alert notifications are sent when a food or feed pr esenting a serious health risk is on the market and 
when rapid action is required. The RASFF member that identifies the problem and takes the relevant actions (e.g. withdrawal of the product) triggers the alert. 
b Border rejections concern food and feed consignm ents that have been test ed and rejected at the 
external borders of the EU (and the European Ec onomic Area – EEA) when a health risk has been 
found. The notifications are sent to all EEA border posts in order to reinforce controls and to ensure 
that the rejected product does not re-ent er the EU through another border post. 
c Information notifications are used when a risk has been identified about food or feed placed on the 
market, but the other members do not have to take rapid action. 
d Information notifications for attention are related to a product that is present only in the notifying 
member country, or has not been placed on the market, or is no longer on the market 
e Information notifications for follow-up are related to a product that is or may be placed on the 
market on another member country. 
Source: Information provided by the European  Commission. 
3.125.  The legislative framework at EU level regarding genetically modified organisms (GMOs) 
remained largely unchanged during the period under review. Its basis includes Regulation (EC) No. 1829/2003 on genetically modified food an d feed, Directive 2001/18/EC on the deliberate 
release of GMOs into the environment, and Re gulation (EC) 1830/2003 on the traceability and 
labelling of GMOs, and food and feed produced from GMOs. In June 2011, the Commission adopted 
Regulation (EU) 619/2011 (entry into force on 15 July 2011) which laid down methods of sampling and analysis for the official control of feed as regards presence of genetically modified material for 
which an authorization procedure is pending or the authorization of which has expired.  
3.126.  Within the EU, GMOs need different author izations to be used in food and feed, or for 
cultivation. The EFSA is responsible for carrying out the risk assessment on each application for 
authorization in collaboration with member States. The risk management and the authorization 
process are carried out by the Commission with member States, and the authorization decision is applied to all EU member States.
146 The Commission in March 2013 adopted the Implementing 
Regulation on requirements to be fulfilled by companies when submitting applications for the 
authorization of new GMOs for food/feed uses. Th e Commission stated that the key objectives of 
this Implementing Regulation are: to reinforce and improve the authorization process of GM food 
and feed; to clarify the requirements for submitti ng a request; and to have these requirements 
formally endorsed by EU member States. The auth orization of GMOs is subject to "comitology" 
procedures. 
3.127.  Under certain circumstances, member States are allowed to temporarily restrict or prohibit 
the use and/or sale the GM products that are authorized at EU level on their own territory.147 Six 
member States currently apply restrictions on use (including sale) of certain GMOs: Austria, France, Greece, Hungary, Germany, and Luxembourg. In a proposed regulation to amend Directive 
2001/18/EC, the Commission in July 2010 proposed to allow member States to restrict or prohibit 
                                               
145 WTO document WT/TPR/M/248/Add.1, 30 August 2011. 
146 The European Commission maintains a website of re gister of authorized GMOs. For details, see the 
European Commission online in formation, "EU Register of Authorised GMOs". Viewed at: 
http://ec.europa.eu/food/dyna/gm_register/index_en.cfm . 
147 Article 23 of the Directive 2001/18/EC. WT/TPR/S/284 • European Union 
 
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  the cultivation in all or part of their territories of GMOs authorized at EU level.148 Under the 
proposed regulation, member Stat es may adopt measures with respect to the cultivation of GMOs 
in their territories, but not with respect to the import into the EU of authorized GM seeds and plant-propagating material, and the products of their harvest. 
3.128.  The European Court of Justice ruled in September 2011 that pollen from genetically 
modified (GM) plants contained in honey counts as  a food ingredient and requires authorization. 
The implications of this ruling affect both honey imported into the EU and honey produced within 
the EU. GM pollen in honey needs to be authorized in accordance with EU GMO legislation and 
pollen in honey is considered as an ingredient and not a constituent and consequently honey needs to be labelled with a list of ingredients and GM labelling is needed when GM pollen exceeds 0.9% of total pollen. The Commission adopted a propos al in September 2012 for an amendment to the 
Honey Directive explicitly providing that pollen is not an "ingredient" but a "constituent" of honey 
thus aligning EU legislation with the provisions of the Codex Standard on honey. The consequences 
of this change are that honey will not have to be labelled with a list of ingredients, as it is 
considered to be a primary product and is subject to the 0.9% GM labelling threshold if it 
constitutes GM pollen. The proposal does not question the conclusion of the Court that GM pollen in honey will need to be authorized. 
3.2  Measures Directly Affecting Exports  
3.129.  The legal and institutional framework of export measures has not substantially changed 
since the last review.
149  
3.2.1  Registration and documentation 
3.130.  The main customs procedures for imports of goods also apply to exports (section 3.1.1). 
3.131.  In general, goods exported out of the EU must go through an export procedure and 
declared at customs. If no simplified procedure is used, the export declaration is made on the 
Single Administrative Document (SAD) or its electronic equivalent at the customs office of export, 
at the place where the declarant/exporter is estab lished, or where the goods are packed or loaded 
for export. If this is not possible for administrative reasons, the EU Customs Code allows for 
declarations to be lodged with any customs office which is competent for the operation in question. 
An export declaration may also be accepted by a customs office other than that normally responsible, provided there are "duly justified good reasons".
150 
3.132.  The information contained in the export declaration is complemented, where appropriate, 
by security-related data. 
3.133.  In cases where the goods travel through another member State, the customs office of 
export then sends the customs office of exit the export declaration information through the Export 
Control System (ECS). The results of the exit are re ported back electronically to the customs office 
of export, for the issuance of the export notice (exit confirmation) to the declarant or exporter. 
3.134.  Simplified procedures allow for swifter clearance at the time of shipment.  
3.2.2  Export taxes, charges and levies 
3.135.  The EU does not apply taxes on exports. 3.2.3  Restrictions and controls 3.136.  The export control regime is set out in several pieces of legislation including: EU Council 
Regulation (EC) No. 428/2009 on dual-use items; and the Common position on Arms Exports 
                                               
148 European Commission document COM(2010) 375 final, 13 July 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0375:FIN:EN:PDF . 
149 WTO document WT/TPR/S/248, 8 July 2011. 
150 European Commission, online information. Viewed at 
http://ec.europa.eu/taxation_customs/customs/procedural_aspects/export/procedure/index_en.htm . WT/TPR/S/284 • European Union 
 
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  (2008/944/CFSP). Regulation 428/2009 was amende d on 16 November 2011 by Regulation (EU) 
No 1232/2011 that entered into force on 7 January 2012.151  
3.137.  Under the EU regime, controlled items may not leave the EU customs territory without an 
export authorization, although items not on the list of controlled items (in Annex I of Regulation 
No. 428/2009) may also be subject, by national authorities, to export controls. In compliance with 
UN Resolution 1540, Regulation 428/2009 provides me mber States with the possibility to prohibit 
brokering services with regard to dual-use items not located in the EU and transit of 
non-Community dual-use items passing through the EU under very strictly defined circumstances 
(mainly a serious risk of proliferation of weapons of mass destruction).  
3.138.  There are four types of export authorizat ions granted at EU and member-State levels: EU 
General Export Authorisations (EU GEAs); National General Export Authorisations (NGAs); Global 
Authorisations; and Individual Authorisations. 
3.139.  There are currently six EU GEAs in place fo r dual-use items (five of which were created by 
amending Regulation 1232/2011):  
 EU001 - export of most dual-use items to Aust ralia, Canada, Japan, New Zealand, Norway, 
Switzerland (including Liechtenstein), and United States of America; 
 EU002 - export of 19 specified categories of dual -use items to Argentina, Croatia, Iceland, 
South Africa, the Republic of Korea, and Turkey; 
 EU003 - export of certain dual-use items after repair/replacement to 24 specified 
destinations; 
 EU004 - temporary export of certain dual-use it ems for exhibitions or fairs to 24 specified 
destinations; 
 EU005 - export of specified telecommunication pr oducts and technologies to nine specified 
destinations; and 
 EU006 - export of specified chemicals to Argentin a, Croatia, Iceland, the Republic of Korea, 
Turkey, and Ukraine. 
3.140.  At the member-State level, there are general, global, or individual export authorizations, 
all of which are valid throughout the EU. Fr ance, Germany, Greece, Italy, Sweden, the 
Netherlands, and the UK currently have National General Export Authorizations (NGAs) in place.152 
In addition, NGAs are published in the official journals of the issuing countries, and they may only 
be issued if they do not conflict /overlap with existing EU GEAs. 
3.141.  Individual and Global Authorizations may be granted to an exporter by member States, 
and they cover either one end user (Individual), or several countries and end users (Global). In assessing applications for Individual or Global Authorizations, member States must take into 
consideration the criteria specified in the Regulation. 
3.142.  The EU list of controlled items is based on control lists adopted by international export 
control regimes:  
 the Australia Group on minimizing the risk of assisting chemical and biological weapon 
proliferation; 
 the Nuclear Suppliers Group on the non-proliferation of nuclear weapons;  
                                               
151 Regulation (EU) No. 1232/2011 of 16 November 2011. 
152 Official Journal of the European Union , volume 55, 6 March 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2012:067:FULL:EN:PDF . WT/TPR/S/284 • European Union 
 
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   the Wassenaar Arrangement on export control for conventional arms and dual-use goods 
and technologies; and  
 the Missile Technology Control Regime on the coordination of national export licensing 
efforts on the non-proliferation of unmanned delivery systems capable of delivering weapons 
of mass destruction. 
3.143.  Following the 2011 amending regulation, EU member States may deny certain EU General 
Export Authorizations to an exporter if they have reasonable suspicion about the exporter's ability 
to comply with such authorization. However, in such a case, member States are obliged to 
exchange information on those exporters. In addition, under Regulation 428/2009, the EU may 
negotiate mutual-recognition agreements with third countries (which so far has not been used). 
3.144.  Annex I to Regulation (EC) No. 428/2009 was amended on 15 June 2012, in order to take 
account of changes agreed within the Australia Group, the Nuclear Suppliers Group, the Missile 
Technology Control Regime and the Wassenaar Arrangement.153 
3.145.  In June 2011, the European Commission issued a Green Paper launching a public 
consultation on the EU export control system in  which over 100 stakeholders representing public 
administrations, business associations and private operators, as well as academia and civil society took part. The report on the Green Paper public consultation was issued in January 2013.
154 
According to the Commission, a Communication is under preparation, and should be issued by 
2014, to set out policy initiatives geared at adapting the system to rapidly changing technological, economic and political circumstances. 
3.2.4  Official support and related fiscal measures 
3.146.  The EU continues to provide export subsidie s to eligible exporters of certain agricultural 
products (Chapter 4.1). 
3.147.  A drawback system continues to apply under the EU Customs Code. It allows importers to 
claim repayment of import duties paid on imported goods if they export such goods in the form of 
"compensating products", i.e. products resulting from processing operations.
155 In addition, the 
Customs Code establishes a suspension system wher eby imported goods intended for export in the 
form of compensating products are not subject to import duties.156  
3.148.  Once in force, the Modernized Customs Code will eliminate the drawback system, as the 
number of importers using this procedure has decreased to a level where the management cost of 
the procedure is now disproportionate to the benefits provided by the scheme. 
3.2.5  Finance, insurance guarantees, and promotion  
3.149.  Export credits are granted at the member-State level through official export credit 
agencies. 
3.150.  Since 2012, the simplified "escape clause" for short-term export insurance under the 
Temporary Union framework for State-aid measures to support access to finance in the financial and economic crisis, has been terminated. Official export credits are regulated through Council 
Directive 98/29/EC of 7 May 1998, on medium- and long-term export credit insurance established 
principles for official insurance and guaran tee arrangements, premiums, and cover policies.   
3.151.  The European Union is a participant to the OECD Arrangement on Officially Supported 
Export Credits, whose modifications are regularly integrated into EU law (the most recent update 
being made through EU Regulation 1233/2011). 
                                               
153 Official Journal of the European Union , 16 May 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:129:0012:0280:EN:PDF . 
154 European Commission document SWD(2013) 7 Final, 17 January 2013. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2013/february/tradoc_150459.pdf . 
155 Article 114.1(b), Council Regulation No. 2913/92, 12 October 1992. 
156 Article 114.1(a). WT/TPR/S/284 • European Union 
 
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  3.152.  The EU provides assistance to promote it s agricultural products and food outside the EU. 
Export promotion schemes are in place at the nati onal or sub-national levels. In November 2011, 
the European Commission adopted a Communication which aims at creating conditions for European SMEs to seize new business opportunities outside the EU.
157 The fields of action defined 
include the reinforcement of existing support services, the creation of a single virtual gateway to 
disseminate information to SMEs, and promoting networks.158 
3.153.  Existing measures financed by the Commission to support SMEs' access in third markets 
include: the Enterprise Europe Network; the European Business and Technology Centre in India; 
the EU SME Centre in Beijing, China; and the EU-J apan Centre for Industrial Cooperation in Japan. 
3.3  Measures Affecting Production and Trade 3.3.1  State trading and state-owned enterprises 
3.154.  Systembolaget is a state-owned company with an exclusive right for retail sale of alcoholic 
beverages that contain more than 3.5% (by volume) alcohol in Sweden. According to the Commission, after requests from WTO Members,  the EU notified "Systembolaget AB" as a 
"state-trading enterprise" in accordance with the working definition in the Understanding on the 
Interpretation of Article XVII of the GATT 1994.
159  
3.155.  In 1997, the European Court of Justice (ECJ) recognized that retail sale of alcoholic 
beverages in Sweden could be carried out exclusively by the state-owned "Systembolaget" as long 
as the system was non-discriminatory and pursue d a legitimate public interest, namely the 
protection of public health against the harm caused by alcohol.160  
3.156.  In 2007, the ECJ ruled that Sweden's Alco hol Act, under which private individuals (other 
than travellers) were prohibited from importing alcoholic beverages without involving 
"Systembolaget" amounted to an unjustified quantitative restriction on imports, and could not be justified as a means to protect human life and health.
161 
3.157.   The Commission indicated that the Swedish law was changed, following the ECJ's 
judgement, to allow the import (including through distance selling) of alcohol from other EU member States for personal use to Sweden.
162  
3.158.  Under the existing contract between the Swedish Government and Systembolaget, the 
company must treat all beverage suppliers equally. The resale price of an imported product is determined by adding to the supplier's offering pr ice: a variable mark-up (currently 19%), a fixed 
mark-up (that is added on all items sold by Sy stembolaget), a mark-up covering transport and 
administrative costs, estimated duties and ta xes (if applicable), and recycling costs.  
3.159.  EU member States continue to have fu ll or partial ownership of several enterprises 
operating in the scope of Services of General Economic Interest (SGEI), including energy and 
transport sectors. Sources have indicated that EU countries retain shareholdings in over 
900 enterprises.
163 However, the Commission could not guarantee the accuracy of that 
information.  
                                               
157 European Commission document COM(2011) 702 final, 9 November 2011. Viewed at:  
http://ec.europa.eu/enterprise/policies/sme/market-access/files/com_2011_0702_f_en.pdf . 
158 European Commission online information. Viewed at: 
http://ec.europa.eu/enterprise/policies/sme/market-access/internationalisation/index_en.htm . 
159 WTO document G/STR/N/13/EU, 28 June 2012. 
160 EU on line information, Case C-189/95 Franzen. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:61995CJ0189:EN:PDF . 
161 European Commission Legal Service, Case C- 170/04 Klas Rosengren and Others. Viewed at 
http://ec.europa.eu/dgs/legal_service/arrets/04c170_en.pdf . 
162 Amendment SFS 2008:366 of 11 June 2008. Viewed at:  
http://www.lagboken.se/files/SFS/2008/080366.PDF . 
163 SPC Network online information. Viewed at: http://spcnetwork.eu/news/item/database-of-state-
owned-enterprises-in-the-european-union . WT/TPR/S/284 • European Union 
 
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  3.160.  The EU maintains competitive neutrality frameworks in order to identify and eliminate 
competitive advantages which SOEs may have, including with respect to taxation, financing costs and regulatory neutrality.
164 
3.161.  In 2012, the Commission issued a guidance paper on state-aid-compliant financing, 
restructuring and privatization of state-owned enterprises.165 The paper aimed to raise awareness 
of the EU's main state-aid rules when providing finance to state-owned enterprises, as well as 
restructuring and privatizing SOEs. 
3.162.  Gradual market opening and liberalization are under way in rail transport and postal 
services. The first railway package (Directive 2001/12 of 26 February 2001, amending Directive 
91/440) opened the Trans-European Rail Freigh t network by 15 March 2003. In the second rail 
package of 29 April 2004 (Directive 2004/51), freight liberalisation was extended to international 
freight services by 1 January 2006 and to domestic freight services by 1 January 2007. In the third 
railway package (Directive 2007/58 of 23 October 2007), international passenger services were opened by 1 January 2010. In its proposal of 30 January 2013 [COM (2013)29] the Commission 
proposes to open domestic passenger services as of December 2019. 
3.163.  The 3
rd Directive on postal services adopted on 20 February 2008 provides for the 
termination of all remaining postal monopolies by the end of 2012. The Commission indicated in 
the context of this report that it was too early to assess the full implementation of the Directive. 
3.3.2  Subsidies and other government assistance 3.3.2.1  General legal and institutional framework 3.164.  Since 2011, the institutional and legal framework for subsidies and other assistance in the 
EU has not changed substantially.
166 They continue to be granted at  the EU level, i.e. out of the 
Union budget, and by member States.  
3.165.  The provision of state aid by EU member States is regulated by Articles 107 to 109 of the 
Treaty on the Functioning of the European Union (TFEU). State aid is deemed incompatible with 
the internal market of the EU if it distorts competition by favouring certain undertakings or the production of certain goods.
167 
3.166.  Under Article 108 of the TFEU, the Commission has the authority to determine if state aid 
is compatible with the internal market. In doing so, the Commission is required to weigh the benefits of the aid towards achieving objectives of common European interest against the distortions it may cause to competition and trade. Any plan to grant or alter aid shall be notified to 
and approved by the Commission. Certain categories of aid are however exempt from that 
procedure (General Block Exemption Regulation – "GBER"). The GBER applies to, inter alia , aid for: 
disadvantaged regions; small- and medium-siz ed enterprises; female entrepreneurship; 
environment protection; training; research, de velopment and innovation; risk capital; and 
disadvantaged or disabled workers. 
3.167.  In addition, the " de minimis  regulation" provides that state aid below €200,000 spent over 
a three-year period is deemed to have no substantial effect on competition and trade between 
member States, and therefore requires no notification.  
3.168.  Rules for the compatibility assessment of state aid are set out in specific Commission 
guidelines. They are detailed in a number of "horizontal" or "sectoral" guidelines: horizontal 
guidelines for regional aid, research, development, innovation, risk capital, environmental aid, 
training aid, and aid for disadvantaged or disabl ed workers; sector-specific guidelines for the 
financial sector, agriculture, audio-visual production, broadband (new guidelines adopted 
                                               
164 OECD (2011b). 
165 European Commission document SWD(2012) 14 Final, 10 February 2012. Viewed at: 
http://ec.europa.eu/competition/state_aid/ studies_reports/swd_guidance_paper_en.pdf . 
166 WTO document WT/TPR/S/248, 8 July 2011. 
167 See definition of "state aid" in Article 107(1), Treaty of the Functioning of the European Union. WT/TPR/S/284 • European Union 
 
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  in 2012)168, broadcasting, coal industry, electricity, fisheries, postal services, shipbuilding (new 
guidelines adopted in 2011)169, steel, synthetic fibres, motor vehicles industry, and transport.  
3.169.  In 2004, the Commission adopted rules for state aid for rescuing and restructuring of firms 
in difficulty.170 They were set to expire in October 2012, but were extended until end-2013, at 
which time all state aid regulations are to be updated. 
3.170.  Services of General Economic Interest (SGEI) are economic activities that public 
authorities identify as being of particular importan ce to citizens and that would not be supplied (or 
would be supplied under different conditions) if there were no public intervention. SGEI in the 
transport sector, and construction, management and maintenance of infrastructure benefit from substantial public resources in the EU. Since January 2012 new regulations entered into force setting the criteria for state aid for SGEI to be compatible with state-aid rules, and cases where no 
prior notification is necessary.
171 The de minimis  amount for state aid for SGEI was increased in 
April 2012 from €200,000 to €500,000 spent over three fiscal years. In 2011, several state-aid measures were approved under the SGEI framework in the transport subsector.  
3.171.  On 8 May 2012 the Commission launched a Communication on State Aid Modernisation 
(SAM), by introducing a reform package, the main reforms of which should be in place by the end of 2013. The objective of the SAM is to make state aid more supportive for sustainable growth 
without distorting competition. Action envisaged under this reform includes the identification of 
common principles for the compatibility assessment of state aid, an increased focus on the cases with the biggest impact, and the simplification of  rules and procedures. In particular, the main 
compatibility guidelines, the " de minimis"  regulation, the GBER, the Procedural Regulation are set 
to be reviewed under the package. 
3.3.2.2  Regional assistance  3.172.  The EU's latest subsidies notification to the WTO and member States' addenda, submitted 
in July 2011, contained statistical information up to end-2010.
172 The two largest areas of 
expenditure out of the EU budget were agriculture (chapter 4.1) and structural actions, i.e. the 
Structural Funds and the Cohesion Fund. Another notable area of expenditure is research. The 
Structural Funds comprised the European Region al Development Fund (ERDF), and the European 
Social Fund (ESF).  
3.173.  The goal of the Cohesion Policy is to promote social and economic cohesion in the EU, by 
reducing disparities between regions and countries. The Cohesion Policy is put in place for a 
seven-year period. The current cycle is set to be completed by end-2013. The budget and the 
framework of the Cohesion Policy for 2014-2020 ar e currently being developed. For the period 
2007-2013, the EU's intervention in the field of th e Cohesion Policy is being realised through the 
Structural Funds (the European Regional Development Fund, the European Social Fund, and the 
Cohesion Fund). 
3.174.  According to the latest notification, ou tlays under the European Regional Development 
Fund, the Cohesion Fund, and the European Social  Fund totalled over €49 billion in 2010, the 
latest year available.  
3.175.  The total allocation on structural and cohesion funds, over 2007-2013, amounted to 
€347 billion (€201 billion for the ERDF, €76 billion fo r the ESF and the Cohesion Fund €70 billion). 
Additional funding from the member States will bring the total amount spent to €700 billion. Based 
on the objectives for the different funds, the allocations are: €283 billion for convergence; 
                                               
168 See European Commission online information. Viewed at: 
http://ec.europa.eu/competition/state_aid/legislation/specific_rules.html . 
169 European Commission (2012a). 
170 For more details see OJ C244, "Community guidelines on state aid for rescuing and restructuring 
firms in difficulty" , 1 October 2004. 
171 State aid legislation compilation in Official Journal of the European Union , 11 January 2012. Viewed 
at: http://ec.europa.eu/competition/state_aid/legislation/compilation/j_23_05_12_en.pdf . 
172 WTO document G/SCM/N/220/EEC, 10 October 2011. Subsidies granted by individual member States 
are contained in addenda to this notification. WT/TPR/S/284 • European Union 
 
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  €55 billion for Competitiveness and Employment; and €9 billion for European Territorial 
Co-operation.173 
3.176.  Regions that are economically, socially  or environmentally disadvantaged are given 
preference under the ERDF. The fund is given for three different objectives, namely convergence, 
regional competitiveness and employment, and European territorial cooperation. It is used mostly 
to finance investments made by SMEs for jobs cr eation, infrastructure, financial instruments or 
technical assistance. 
3.177.  The European Social Fund is used with regard to the EU objectives of convergence and 
regional competitiveness and employment. It is mainly used to finance projects in education and job market improvement, with a special focu s on disadvantaged groups of population. 
3.178.  In principle, the Cohesion Fund is designed for member States with a GNI per capita of 
less than 90% of the Community's average. Unde r the current programme, the following countries 
are eligible to receive funds: Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, and Slovenia. Projects in this 
context must be related to the improvement of trans-European transport networks or 
environmental protection.
174 
3.179.  Assistance for candidate countries to help them prepare for implementation of the 
Cohesion Policy after accession is provided thro ugh the Instrument for Pre-Accession Assistance 
(IPA). 
3.180.  In addition, the European Globalisation Adjustment Fund (EGF) was set up in 2007 to help 
workers made redundant as a result of globalisation to return to employment. According to the 
Commission, for the period May 2009 to December 2011, the scope of the Fund was broadened to 
include workers made redundant as a result of the global financial and economic crisis. By the end of 2012, the Fund had received applications totalling almost €450 million and targeting almost 
100,000 redundant workers. Twenty member Stat es had implemented over 100 EGF cases; these 
were in support of workers made redundant in a broad range of sectors, from basic metals to manufacturing (automotive, textiles and numerous others), construction and services. 
3.3.2.3  Non-crisis aid at member-State level 
3.181.  Updated information on state aid provided by EU member States is regularly published by 
the Commission through the state-aid scoreboard.  
3.182.  In 2010 and 2011 respectively €73.3 billion (0.6% of EU GDP) and €64.3 billion (0.5% of 
EU GDP) were provided for non-crisis state aid.  Fourteen member States increased their average 
state-aid levels between the period 2006-2008 and 2009-2011. Relative to economic size, Malta, Portugal and Hungary recorded the highest levels of non-crisis aid in the EU. Malta spent more 
than 2%, Portugal more than 1.5% and Hungary more than 1.2%. Non-crisis state aid was 0.4% 
of national GDP or less in Lithuania, Bulgaria, Estonia, Italy, Luxembourg, Romania, Netherlands, Spain, Slovakia, Latvia, and the United Kingdom. 
3.183.  Aid to industry and services amounted to  €52.9 billion (over 82% of non-crisis aid) or 
0.42% of EU GDP. Other substantial recipients of no n-crisis state aid are: agriculture (13% of total 
aid), and transport (5%). Fisheries and aquaculture get less than 0.2%.
175  
3.184.  90% of state aid to industry and services was earmarked for horizontal objectives of 
common interest, i.e. aid that is not granted to specific sectors of the economy (most notably aid 
measures for regional development, research, and environmental protection).176 Only Malta and 
Portugal spent less than half of their state aid on horizontal objectives. 
                                               
173 European Commission, online information. Viewed at: 
http://ec.europa.eu/regional_policy/thefunds/funding/index_en.cfm . 
174 European Commission, online information. Viewed at: 
http://ec.europa.eu/regional_policy/thefunds/cohesion/index_en.cfm . 
175 European Commission document SWD(2012) 443 final, 21 December 2012. Viewed at: 
http://ec.europa.eu/competition/state_aid/studies_reports/2012_autumn_working_paper_en.pdf . 
176 Aid granted under block exemption is  included under horizontal aid. WT/TPR/S/284 • European Union 
 
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  3.185.  In 2011, regional development was the horizontal objective to which most resources were 
directed (26% of total aid to industry and se rvices), followed by the environment (23%) and 
research, development and innovation (19%). SMEs, employment, training, risk capital, and other, 
received the least funds. 
3.186.  Member States used mostly grants (58%) as instruments for state aid, followed by tax 
exemptions (36%), while soft loans and guarant ees, equity participation and "other" together 
made up about 6%. However, the use of instruments differs widely among member States. 
Denmark, Cyprus, Luxembourg, and the Netherlands used grants for more than 90% of state aid 
to industry and services, whereas Portugal and Sweden for example used more than 80% for tax 
exemptions. 
3.3.2.4  Crisis-related aid 
3.187.  Since the onset of the global economic and financial crisis in 2008, the EC has issued a 
number of guidelines geared at disciplining member States' assistance measures to firms in difficulty. These measures were rolled out through two different subcomponents: 
 financial institutions (state-aid rules to support measures in favour of banks in the context of 
the financial crisis); and 
 the real economy (Temporary Union framework for state-aid measures to support access to 
finance in the current financial and economic crisis – "Temporary framework").
177  
3.188.  The Temporary framework to ease access to finance expired in December 2011. No new 
aid measure was implemented in 2011 under the framework. However, the Commission allowed 23 schemes to be extended:  
 ten for aid of up to €500,000 per company, in the Czech Republic, Estonia, Greece, France, 
Latvia, Lithuania, the Netherlands, Austria, Portugal, and the United Kingdom;  
 eight guarantee schemes in Greece, Spain, France, Luxembourg, Hungary, and Romania; 
 three schemes for subsidized interest rate loans, in the Czech Republic, France, and 
Hungary; and 
 two schemes for subsidized interest rate loans to produce green products, in Germany and 
France.  
3.189.  The state-aid rules to support measures in favour of banks in the context of the financial 
crisis were extended twice, in 2010 and 2011. In fact, of the four Communications from the 
Commission on state aid to financial institutions issued since 2008
178, only the "Communication on 
the return to viability and the assessment of restructuring measures in the financial sector" had a 
specified expiry date, and, in December 2010, it was extended through the "prolongation communication" until 31 December 2011.
179 However, each of the Communications refers to the 
temporary nature of such aid measures. According to the Commission, in spite of the recent signs 
of economic recovery within the Union and the relative improvement in the banking sector, the prolongation communication is justified in consideration of a number of factors such as the 
                                               
177 WTO document WT/TPR/S/248, 1 June 2011. 
178 The Communications in question are: the Communication on the application of state-aid rules to 
measures taken in relation to financial institutions in the context of the current financial crisis (the Banking Communication); the Communication on the recapitalisation of financial institutions in the context of the current financial crisis: limitation of the aid to the minimum necessary and safeguards against undue 
distortions of competition (the Recapitalisation Communication; the Communication from the Commission on the treatment of impaired assets in the community bank ing sector (the Impaired Assets Communication), and 
the Communication on the return to viability and the assessment of restructuring measures in the current crisis under the State aid rules (the Restructuring Communication). 
179 Official Journal of the European Union , "Communication from the Commission on the application, 
from 1 January 2011, of State aid rules to support measures in favour of banks in the context of the financial 
crisis", 7 December 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2010:329:0007:0010:EN:PDF . WT/TPR/S/284 • European Union 
 
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  existence of some pockets of vulnerability that could provoke negative effects. In addition, the 
occurrence of increased tensions in the sovereign debt market and the threat it represents for the financial institutions within the region further justify the possibility for member States to continue with their crisis-related support to their banks. 
3.190.  The Commission is committed to a gradual exit from the temporary exceptional situation 
and to create suitable conditions for permanen t state-aid rules. In 2010, it carried out an 
assessment of government guarantees in terms of both the frequency of recourse to them and the 
economic benefits they yield. It turned out that , as regard the recourse to guarantees, the number 
of banks resorting to government guarantees has decreased over the period of assessment (2008-2009) reflecting an exit process by individu al banks. The same trend was also observed at 
member-State level, with four member States having discontinued their schemes in 2009. 
Furthermore, the cost of funding with guarantees has fallen relative to the cost of funding via 
unsecured debt. These developments may constitute signals for positive developments in market conditions and a gradual return to a more stable situation for banks. As a consequence, the 
competition context between banks that issue gu aranteed bonds and those that issue strictly 
under market conditions is likely to become an issue.
180  
3.191.  Since 1 July 2010, the Commission has restricted the conditions for the compatibility of 
government guarantees under Article 107(3)(b) of the Treaty. These restrictions include an 
increased guarantee fee and tighter requirements for viability plans for beneficiaries that have recourse to new guarantees and exceed a cert ain threshold of total outstanding guaranteed 
liabilities. The increase (relative to the pricing formula recommended by the ECB in October 2008) 
in the fee for a government guarantee ranged between 20 basis points to 40 basis points 
depending on the ratings of the beneficiaries. Above certain thresholds
181, a viability requirement 
is necessary, i.e. for any bank that requests government guarantees under a scheme covering new 
or renewed debt to be issued as from 1 July 2010, the member State concerned would be required 
to submit a review demonstrating the bank's long-term viability to the Commission within three months of the granting of guarantees.  
3.192.  At the beginning of the financial crisis, a distinction was established between "structurally 
sound" and "unsound" banks, i.e. those suffering from the fragility/inefficiency of their structural organization, and those whose problems are mostly linked to the financial crisis.
182 The 
recapitalisation of an "unsound" bank was subject to the submission to the Commission of a 
restructuring plan, while a viability plan was required in the case of a "sound" bank. The 
Prolongation Communication has also taken an additional step toward the disengagement from the temporary extraordinary support measures for banks. It included the recapitalisation and 
impaired-asset measures into the phasing out process.  
3.193.  Based on the rationale that the situation in the capital market has sufficiently improved to 
allow banks to raise capital on the markets, the Commission considered that the distinction 
between banks, on the basis of the soundness of their structural organization, is no longer 
relevant. Therefore, the Prolongation Communication required banks which continued to recourse to the exceptional state-aid opportunities, in  2011, to submit a restructuring plan to the 
Commission regardless of their status.  
3.194.  Increased tensions in sovereign debt markets since 2011 have put the EU banking sector 
under increased pressure, and this has led the Commission to prolong its crisis-related rules under the "banking package" agreed by the Heads of State or Government at their meeting of 
26 October 2011.  
3.195.  "The package aims to restore confidence in the sector by way of guarantees on 
medium-term funding and the creation of a temporar y buffer amounting to a capital ratio of 9% of 
the highest quality capital after counting for market valuation of sovereign debt exposures".
183 
                                               
180 DG Competition (2010) . 
181 The threshold is set at a ratio of 5% of outstanding guaranteed liabilities over total liabilities and a 
total amount of €500 million. 
182 The distinction is based on a set of indicators defined in the Recapitalisation Communication. 
183 Official Journal of the European Union , "Communication from the Commission on the application, 
from 1 January 2012, of State aid rules to support measures in favour of banks in the context of the financial WT/TPR/S/284 • European Union 
 
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  3.196.  The Communication adopted by the Commission on the application, from 1 January 2012, 
of state-aid rules to support measures in favour of banks in the context of the financial crisis, keeps in place the four Communications that regulate the exceptional State aid measures to banks.  
3.197.  The Communication also brought some chan ges in the pricing for state recapitalisations 
and guarantees. In fact, under the Recapitalisation  Communication, the pricing of capital injections 
is based mainly on capital instruments bearing a fixed remuneration. The Communication adopted 
by the Commission on the application, from 1 January 2012, of state-aid rules to support 
measures in favour of banks in the context of the financial crisis comes up with the view that states' capital injections may take the form of shares bearing a variable remuneration.  
3.198.  In the context of this Communication, revised minimum fees are established for 
guarantees covering debt with a maturity between one and five years (seven years in the case of 
covered bonds). 
3.199.  Concerning the way the Commission will undertake the assessment of long-term viability, 
in order to determine the need for restructuring, attention will be given to, inter alia , the extent to 
which the capital shortage is essentially linked to a confidence crisis on sovereign debt, and evidence that the bank in question did not ta ke excessive risks in acquiring sovereign debt. 
3.200.  In the context of the "exceptional" si tuation in the financial sector, the European 
Commission took 350 decisions between 1 October 2008 and 1 October 2012, in order to authorize, amend or prolong over 50 schemes . In addition, except from Bulgaria, the 
Czech Republic, Estonia, Malta and Romania, all EU member States have resorted to state-aid 
measures in the financial sector. 
3.201.  The amount of aid approved decreased over 2008-2011 (Table 3.10). However, this does 
not denote improving economic conditions, as the coexistence of sovereign-debt tensions and 
weaknesses in the banking sector continue to require alternative support measures (sometimes in 
the form of Central Bank interventions).  
Table 3.10 Approved amount of aid, by instrument, 2008-11 
(EU-27) 
 2008 2009 2010 2011 
€ billion % of 
2011 
GDP € billion % of 
2011 
GDP € billion % of 
2011 
GDP € billion % of 
2011 
GDP 
Outstanding 
guarantees 3,097.34  24.8 87.63 0.7 54.81 0.4 179.70  1.4 
Recapitalisation 269.87  2.16 110.04  0.93 184.01  1.5 37.47 0.3 
Impaired assets 4.80 0.04 338.50  2.87 77.98 0.6 6.30 0.05 
Liquidity 
interventions 85.48 0.7 5.49 0.05 66.75 0.5 50.23 0.4 
Total  3,457.49 27.7 541.66 4.55 383.55 3 273.70 2.15 
Source: European Commission document SEC(2012) 443 final, 21 December 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0443:FIN:EN:PDF . 
3.202.  From October 2007 to December 2011, the Commission approved €5,086 billion (40.3% of 
EU GDP), with the bulk of the aid being authoriz ed in 2008 in the form of guarantees for banks' 
bonds and deposits (Tables 3.11 and 3.12). Between 2007 and 2011, an amount of €1,616 billion was used on guarantees (€1,085 billion), recapitalisation (€322 billion), impaired assets (€120 billion), and liquidity measures (€89 billion). 
                                                                                                                                               
crisis", 6 December 2011, Viewed at http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2011:356:0007:0010:EN:PDF . WT/TPR/S/284 • European Union 
 
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  Table 3.11 Approved amount of aid to financ ial institutions, by instrument and member 
State, 2008-11 
 Recapitalisation 
measures Guarantees  Asset relief 
intervention Liquidity 
measures Total 2008-11  
€ billion % of 
2011 
GDP € billion % of 
2011 
GDP € billion  % of 
2011 
GDP € billion  % of 
2011 
GDP € billion % of 
2011 
GDP 
Austria 15.65 5.2 75.20 25.0  0.40 0.1 0.00 0.0 91.25 30.3  
Belgium 20.40 5.5 303.95 82.5 28.22  7.7 0.00 0.0 352.57 95.7 
Bulgaria 0.00 0.0 0.00 0.0  0.00 0.0 0.00 0.0 0.00 0.0  
Cyprus  0.00 0.0 3.00 16.9 0.00 0.0 0.00 0.0 3.00 16.9 
Czech 
Republic 0.00 0.0 0.00 0.0  0.00 0.0 0.00 0.0 0.00 0.0  
Denmar k 14.03 5.9 580.00 242.4  0.00 0.0 6.08 2.5 600.11 250.8  
Estonia 0.00 0.0 0.00 0.0  0.00 0.0 0.00 0.0 0.00 0.0  
Finland 4.00 2.1 50.00 26.4 0.00 0.0 0.00 0.0 54.00 28.5 
France 26.65 1.3 336.15 16.8  4.70 0.2 0.00 0.0 367.50 18.4  
Germany 113.68 4.4 455.85 17.7 65.40  2.5 9.50 0.4 644.43 25.1 
Greece 15.47 7.2 85.00 39.5  0.00 0.0 8.00 3.7 108.47 50.4  
Hungary 1.07 1.1 5.35 5.3 0.04 0.0 3.87 3.9 10.33 10.3 
Ireland 90.61 57.9 386.00 246.7  54.00  34.5 40.73  26.0 571.34 365.2  
Italy 20.00 1.3 80.00 5.1 0.00 0.0 0.00 0.0 100.00 6.3 
Latvia 0.83 4.1 5.15 25.7  0.54 2.7 2.26 11.3 8.78 43.8  
Lithuania 0.58 1.9 0.29 0.9 0.58 1.9 0.00 0.0 1.45 4.7 
Luxembourg 2.50 5.8 5.80 13.5  0.00 0.0 0.32 0.7 8.62 20.1  
Malta 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 
Netherlands 37.64 6.3 200.00 33.2  22.79  3.8 52.90  8.8 313.33 52.0  
Poland 4.62  1.2 4.62 1.2 0.00 0.0 0.00 0.0 9.24 2.5 
Portugal 12.00 7.0 35.45 20.7  0.00 0.0 0.00 0.0 47.45 27.8  
Romania 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0 
Slova kia  0.66 1.0 2.80 4.1  0.00 0.0 0.00 0.0 3.46 5.0  
Slovenia 0.25 0.7 12.00 33.7 0.00 0.0 0.00 0.0 12.25 34.4 
Spain 101.10 9.4 201.15 18.7  2.86 0.3 31.85  3.0 336.96 31.4  
Sweden 5.03 1.3 156.00 40.3 0.00 0.0 0.52 0.1 161.56 41.8 
United 
Kingdom 114.61 6.6 435.71 24.9  248.05  14.2 51.93  3.0 850.30 48.7  
EU-27 601.39 4.8 3,419.47 27.1 427.58  3.4 207.96  1.6 4,656.41 36.9 
Source: European Commission document SEC(2012) 443 final, 21 December 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0443:FIN:EN:PDF . 
Table 3.12 Used amount of aid to financia l institutions, by instrument and member 
State, 2008-11 
 Recapitalisation 
measures Guarantees  Asset relief 
intervention Liquidity 
measures 2008-11  
€ billion % of 
2011 
GDP € billion % of 
2011 
GDP € billion  % of 
2011 
GDP € 
billion % of 
2011 
GDP € billion % of 
2011 
GDP 
Austria 7.38 2.45 19.33 6.43  0.40 0.13 0.00 0.00 27.11 9.01  
Belgium 20.40 5.54 44.23 12.01  7.73 2.10 0.00 0.00 72.36  19.65  
Bulgaria 0.00 0.00 0.00 0.00  0.00 0.00 0.00 0.0 0.00 0.00  
Cyprus  0.00 0.00 2.83 15.91  0.00 0.00 0.00 0.00 2.83 15.91  
Czech 
Republic 0.00 0.00 0.00 0.00  0.00 0.00 0.00 0.0 0.00 0.00  
Denmar k 10.77 4.50 145.00 60.61  0.00 0.00 1.97 0.82 157.75 65.94  
Estonia 0.00 0.00 0.00. 0.00  0.00 0.0 0.00 0.00 0.00 0.00  
Finland 0.00  0.00 0.12 0.06 0.00 0.00 0.00 0.00 0.12 0.06 
France 22.46 1.12 92.73 4.64  1.20 0.06 0.00 0.00 116.39 5.83  
Germany 63.24 2.46 135.03 5.25 56.17  2.19 4.75 0.18 259.19 10.08  
Greece 6.30  2.93 56.30 26.17  0.00 0.00 6.90 3.21 69.49 32.31  
Hungary 0.11 0.11 0.01 0.01 0.00 0.00 2.13 2.12 2.24 2.23 
Ireland 62.78  40.13 284.25 181.70  2.60 1.66 0.08 0.05 349.71 223.54  
Italy 4.05 0.26 10.90 0.69 0.00 0.00 0.00 0.00 14.95 0.95 
Latvia 0.51 2.53 0.54 2.69  0.41 2.03 0.97 4.86 2.43 12.12  
Lithuania 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.00 0.00 
Luxembourg 2.60 6.07 1.65 3.84  0.00 0.00 0.19 0.44 4.43 10.35  
Malta 0.00 0.00 0.00 0.00 0.00 0.0 0.00 0.00 0.00 0.00 
Netherlands 18.86  3.13 40.90 6.79  5.00 0.83 30.40  5.05 95.16 15.80  
Poland 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0.00 0.00 
Portugal 0.00 0.00 8.54 5.00  3.10 1.81 3.81 2.23 15.45 9.04  
Romania 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 
Slovakia 0.00 0.00 0.00 0.00  0.00 0.00 0.00 0.00 0.00 0.00  
Slovenia 0.25 0.70 2.15 6.03 0.00 0.00 0.00 0.00 2.40 6.73 
Spain 19.31 1.80 62.20 5.79  2.86 0.27 19.31  1.80 103.68 9.66  
Sweden 0.78 0.20 19.92 5.15 0.00 0.00 0.00 0.00 20.70 5.35 
United 
Kingdom 82.39 4.72 158.22 9.06  40.41  2.31 18.55  1.06 299.57 17.15  WT/TPR/S/284 • European Union 
 
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   Recapitalisation 
measures Guarantees  Asset relief 
intervention Liquidity 
measures 2008-11  
€ billion % of 
2011 
GDP € billion % of 
2011 
GDP € billion  % of 
2011 
GDP € 
billion % of 
2011 
GDP € billion % of 
2011 
GDP 
EU-27 322.18  2.55 1,084.83 8.59 119.88  0.95 89.06  0.70 1,615.9
6 12.79  
Source: European Commission document SEC(2012) 443 final, 21 December 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0443:FIN:EN:PDF . 
3.3.3  Government procurement 
3.3.3.1  Legislative framework 
3.203.  Government procurement in the EU accounts for a significant share of its total economic 
activity, with possible implications for economic growth and the European single market.184 
In 2010, EU public expenditures totalled €2,407 billion,185 comprising 19.7% of the EU GDP 
(compared to 16% in 2006), of which €447 billion, according to Commission estimates, was 
procurement subject to EU rules, i.e. above the threshold.186 
3.204.  All procurement carried out in the EU ab ove specified thresholds must comply with the 
requirements of the EU Directives on procurement,  which are reflected in relevant legislation and 
regulations of the EU member States.187 Directive 2004/18/EC (Public Procurement Directive) 
covers the procedures for the award of public work  contracts, public supply contracts, and public 
services contracts; and Directive 2004/17/EC (Utili ties Directive) covers procurement procedures 
of entities in the domains of water, energy, tr ansport, and postal sectors. According to the 
Commission, these Procurement Directives have been transposed into member States' national legislation.  
3.205.  In compliance with the Directives on pr ocurement, above-threshold public procurement 
must be advertised EU-wide and must follow uniform procedures. Entering into force on 1 January 2012, the latest thresholds on procurement of supplies, services, and construction works 
under the three Directives are specified in Commission Regulation (EC) No. 1251/2011, 
30 November 2011, amending Directives 2004/17/EC and 2004/18/EC and 2009/81/EC (Table 3.13).
188  
Table 3.13 Minimum public procurement thresholds, 2010-13a  
(€ '000) 
 Supplies Services Works 
2010-11 2012-13 2010-11 2012-13 2010-11 2012-13 
Public contracts, other 
than for utilities       
EU GPA contracting 
authorities  125 130 125 130 4,845 5,000 
Other public sector 
contracting authorities 193 200 193 200 4,845 5,000 
Contracts subsidized at 
more than 50% by the 
contracting authorityb n.a. n.a. 193 200 4,845 5,000 
                                               
184 European Commission document COM(2010) 2020 final, 3 March 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF . 
185 Total public expenditure is the public spending on  health, defence and fuel for production of energy, 
rail and other expenditures. The Commission indicates that the total value of public expenditure is VAT inclusive. 
186 European Commission (2011a). The Commission stated that it does not exact figures for below-
threshold procurement. Based on 2008 data, it was estimated that about €250 billion was the procurement below the threshold. See European Commission document SEC(2011) 853 final, 27 June 2011. Viewed at: http://ec.europa.eu/internal_market/public procurement/docs/modernising_rules/er853_1_en.pdf . The 
procurement value is VAT exclusive. 
187 Rules on public procurement of the EU can be fo und on the European Commission online information, 
"DG MARKT: Rules for contracting authorities/entities". Viewed at: 
http://ec.europa.eu/internal_market/publicprocurement/rules/index_en.htm . 
188 WTO documents GPA/W/309/Add.4, 5 February 2010; and GPA/W/314/Add.6, 23 February 2012. WT/TPR/S/284 • European Union 
 
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   Supplies Services Works 
2010-11 2012-13 2010-11 2012-13 2010-11 2012-13 
Service designs contests       
Central government 
authorities n.a. n.a. 125 130 n.a. n.a. 
Other authorities n.a. n. a. 193 200 n.a. n.a. 
Specific sectorsc n.a. n.a. 193 200 n.a. n.a. 
Utilitiesd       
All sectors, except 
service designs contests  387 400 387 400 4,845 5,000 
Service designs contests n.a. n.a. 387 400 n.a. n.a. 
n.a. Not applicable. 
a Threshold amounts do not include VAT. 
b Contracts that are subsidized at more than 50% by the contracting authorities involve either civil 
engineering to build hospitals, facilities intended  for sports, recreation and leisure, school and 
university buildings, and buildings used for administra tive purposes or the services connected to the 
aforementioned types of projects.  
c Specific sectors refer to fields of research an d development, telecommunications (CPC Reference 
No. 752), hotel and restaurant services, transport by rail and waterway, provision of personnel, vocational training, investigation and security, lega l, health and social, recreational, cultural and 
sporting services. 
d Utilities include water, energy, transport, postal and telecommunications services. 
Source: Commission Regulation (EC) No. 1251/2011, 30 November 2011, amending Directives 2004/17/EC 
and 2004/18/EC and 2009/81/EC; and WTO documents GPA/W/309/Add.4, 5 February 2010; and GPA/W/314/Add.6, 23 February 2012. 
3.206.  Public procurement policy in the EU aims to achieve the best value for money through 
open, transparent and non-discriminatory procedures, consistent with the underlying objectives of 
the internal market. The Directives also mention other aspects such as social, innovation, and environmental considerations that can be incorporated into technical specifications, selection and 
award criteria, as well as contract-performance clauses. Contracting authorities may lay down 
specific environmental conditions relating to the performance of the contract and may ask for evidence of environmental management measures.
189 While the Green Public Procurement policy is 
voluntary, the European Court of Justice case law has shown that "it is acceptable to make use of 
environmental/ecological award criteria, even if  the criterion in question doesn't provide an 
immediate economic benefit for the contracting authority."190 
3.207.  Procurement procedures for contract awards  by public authorities and utility operators in 
the water, energy, transport, and postal se rvices sectors are regulated separately by 
Directive 2004/17/EC (Utilities Directive). While in some member States utilities are private sector 
companies operating in a fully commercial environment, in others they are state-owned 
monopolies or oligopolies, or they compete with private companies. Private contracting entities in 
the utilities sector may also be covered by the Utilities Directive if they have a special or exclusive right granted by member states.
191 Given the variety of ways that member States can influence 
the behaviour of these entities and the closed natu re of the markets in wh ich they often operate, 
the Directive aims to ensure a fair balance in the application of procurement rules in the utilities sector.  
3.208.  In specific utility markets where entities  operate in a competitive environment to which 
market access is not restricted, the Utilities Directive grants exemptions from the procurement 
rules, upon the Commission's approval, when it considers the existing competitive conditions ensure that contracting entities, state-owned or private, buy commercially without favouring their 
national industry. In such cases it is considered that procurement regulation is not needed. During 
the period under review, the Commission approved some member States' requests to exempt specific markets.
192 
                                               
189 OECD and European Union (2011a). 
190 The 'Wienstrom'  case (Case C‐448/01 of 4 December  2003).  
191 However, if a specific right can be obtained by  all or nearly all applicants (thus avoiding a 
monopolistic or oligopoly situation), companies will not be subject to the Utilities Directive. 
192 Certain financial services in the postal sector in Hungary (16 December 2011), production and 
wholesale of electricity in Italy (26 September 2012), production and wholesale of electricity in Germany WT/TPR/S/284 • European Union 
 
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  3.209.  In December 2011, the Commission adopted its new legislative proposals on public 
procurement, which include the revision of the "Utilities Directive" and the "Public Procurement 
Directive", as well as a Directive on concessions.193 The proposed new Directive on concessions 
covers not only works of maintenance and development of infrastructures but also the services 
supplies of general economic interest (e.g. energy, health, water supply and treatment, and waste 
disposal). The Commission aims to make the publ ic procurement regime more comprehensive by 
including services concessions which are currently only partially regulated at EU level. Taking a 
similar approach to other procurement Directives, the proposed Concessions Directive requires 
mandatory publication of tenders for concession contracts in the Official Journal of the European 
Union  if the contract value exceeds €5 million. Also in the proposals, individual member States are 
to establish a national independent body to over see the implementation of EU procurement rules, 
which the Commission believes will enhance their enforcement. 
3.210.  Procurement above the stipulated thresholds must be published in the Official Journal  (OJ) 
(S series) which may be accessed online through the TED website.194 In 2010, on average, there 
were five bids per procedure published in TED.195 In the same time period, the total value of 
invitations to tender for contracts above thresholds was estimated to be approximately €447 billion,
196 representing 3.7% of the EU GDP and 64.1% of total procurement in the EU. In 
2010, published procurements varied among member States, ranging between 1.5% and 11.6% of 
member States' GDP and between 6.1% and 57.3% of member States' total procurement (Table 3.14). The Commission indicates that differences in percentages of procurement published in the OJ might be explained by, for example, th e small value of individual contracts, and the 
various degrees of centralization across member States: most of the smaller contracting 
authorities may never make a purchase large enough to fall into the scope of the Directives, and member States with a generally higher degree of centralization are more likely to have tender 
invitations published in the OJ because pr ocurement tends also to be centralized.
197 The 
Commission also points out that publication requirements for below-threshold procurement vary across member States, and are established on a vo luntary basis at EU level. In some member 
States, contracting entities thus publish below-threshold procurement, whereas some publish 
above-threshold procurement only.  
Table 3.14 Selected procurement indicators, 2008-10 
 Value of procurement published in the OJ 
As a percentage of GDP As a percentage of total public 
procurement 
2008 2009 2010 2008 2009 2010 
Austria 2.4 2.3 2.3 11.6 10.3 10.0 
Belgium 3.6 4.0 3.1 22.8 23.5 18.5 
Bulgaria 8.4 11.9 6.4 42.0 63.3 34.8 
Cyprus 4.7 8.3 5.2 51.7 78.6 49.1 
Czech Republic 5.3 5.2 5.6 20.9 19.6 21.5 
Denmark 3.0 4.0 4.4 18.7 22.5 25.0 
Estonia 8.1 8.3 10.6 43.5 39.9 54.6 
Finland 3.9 4.8 4.6 22.5 24.6 23.6 
France 5.4 6.4 7.4 21.1 20.5 18.3 
Germany 1.2 1.4 1.3 6.9 7.4 6.9 
Greece 2.8 3.7 2.4 23.3 29.7 22.0 
Hungary 5.1 6.3 5.6 25.4 27.7 24.5 
Ireland 2.5 2.2 2.3 15.5 13.8 14.6 
                                                                                                                                               
(24 April 2012), exploration for oil and gas and extraction  of oil in Denmark (28 July 2011), exploration for oil 
and gas and extraction of oil in Italy (24 June 2011). 
193 For details, see European Commission online info rmation, "DG MARKT: Reform proposals". Viewed 
at: http://ec.europa.eu/internal_market/publicprocurement/modernising_rules/reform_proposals/index_en.htm . 
194 Tenders Electronic Daily, Supplement to the Official Journal of the European Union  online 
information. Viewed at: http://ted.europa.eu/ . 
195 DG Internal Market and Services  (2012), page 11. 
196 European Commission document SWD(2012) 342 final, 9 October 2012, page 7. Viewed at: 
http://ec.europa.eu/internal_market/publicproc urement/docs/implementation/20121011-staff-working-
document_en.pdf . 
197 European Commission document SEC(2011) 853 final, 27 June 2011. Viewed at: 
http://ec.europa.eu/internal_market/public procurement/docs/modernising_rules/er853_1_en.pdf . WT/TPR/S/284 • European Union 
 
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   Value of procurement published in the OJ 
As a percentage of GDP As a percentage of total public 
procurement 
2008 2009 2010 2008 2009 2010 
Italy 2.3 2.5 3.4 15.4 15.3 21.0 
Latvia 9.7 8.6 11.5 61.1 42.1 57.3 
Lithuania 3.6 4.9 4.9 22.2 29.0 26.9 
Luxembourg 1.3 1.5 1.5 9.2 9.7 9.5 
Malta 1.2 6.9 4.2 8.8 50.2 31.4 
Netherlands 1.9 2.0 1.9 6.9 6.7 6.1 
Poland 7.1 8.2 8.7 38.9 41.2 42.6 
Portugal 2.5 3.4 4.1 14.1 16.9 19.5 
Romania 7.4 6.4 6.2 31.6 25.0 23.3 
Slovakia 3.7 6.8 11.6 17.1 28.5 48.8 
Slovenia 5.1 6.0 4.6 31.9 34.5 26.3 
Spain 3.6 3.4 3.2 22.7 19.7 19.9 
Sweden 3.5 4.3 4.9 19.3 21.0 24.5 
United Kingdom 4.4 6.2 6.5 21.4 26.0 28.2 
EU-27 3.1 3.6 3.7 17.4 18.0 18.6 
Source:  Eurostat, Public pr ocurement advertised in the Official Journal  (Last update: 06-03-2012). Viewed 
at: http://appsso.eurostat.ec.europa.eu/nui/show.do . 
3.211.  The share of published procurement in total procurement varies significantly between 
years for some member States, for example, Bulgaria published 42% of its total procurement in 2008, 63.3% in 2009, and 34.8% in 2010 (Table 3.14). According to the Commission, such wide 
variation may reflect procurement of infrastructure construction in certain years for some member 
States. 
3.212.  After a contract is awarded, the contracting authority should announce in the OJ/TED the 
result of the procurement procedure, including th e total value and details of the winning company. 
3.213.  In 2010, of the total value of contract award notices published in the OJ/TED, about 36% 
was for works contracts (€161 billion), 42% for services (€187 billion), and 22% for goods (€99 billion). In terms of the number of notices, services contracts accounted for about 47%, 
followed by goods (36%) and then works (17%).
198 I n the  s ame p e riod , op en c omp e titio n, i .e .  
publication of a notice inviting all interested bidders to submit their tenders, accounted for approximately 73% of all contract award notices (accounting for 52% of the total value of 
contracts awarded and published), while restricted procedures accounted for 9% of contract award 
notices and 23% of the total value.
199 The main procurement procedures available under the 
Directives are open procedure, restricted pr ocedure, competitive dialogue procedure, and 
negotiated procedure with prior publication of a contract notice. 
3.214.  In the proposals to "modernize" the procurement Directives, in December 2011 the 
Commission proposed "an increased possible use of negotiation through the competitive procedure with negotiation and prior publication". In response to concerns with regard to the risks involved in 
the increased use of negotiation, the Commission stated that it is conscious of the risk, and 
negotiations therefore must be supervised in a transparent manner: contracting authorities must 
specify at the time of prior publication the subject matter of the contract, the award criteria and 
the minimum requirements to be met, which may not be changed in the course of negotiations. 
Any change in those parts of the technical specifications must be communicated to all firms participating in the negotiations allowing them to submit new, adapted tenders. Before the negotiations are concluded, every interested supplier must be given the possibility to submit a final 
tender.
200 
                                               
198 European Commission document SWD(2012) 342 final, 9 October, page 9.  Viewed at: 
http://ec.europa.eu/internal_market/publicproc urement/docs/implementation/20121011-staff-working-
document_en.pdf . 
199 European Commission document SEC(2011) 853 final, 27 June 2011. Viewed at: 
http://ec.europa.eu/internal_market/public procurement/docs/modernising_rules/er853_1_en.pdf . 
200 European Commission document MEMO/11/931, "Commission proposals to modernise the European 
public procurement market - Frequently Asked Questions", 20 December 2011. Viewed at: http://europa.eu/rapid/press-release_MEMO-11-931_en.pdf . WT/TPR/S/284 • European Union 
 
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  3.215.  Directive 2007/66/EC (Remedies Directive) provides legal remedies for breaches of EU 
procurement law, including a "standstill period," which requires contracting bodies to provide at 
least 10 days after deciding the winning bid before it can be signed, and more stringent rules against illegal direct awards of public contracts so that illegally awarded contracts may be 
rendered ineffective (or null and void) by national courts.  
3.216.  According to the Commission, below-threshold procurement was estimated at around 
€250 billion in 2008, accounting for 2% of EU GDP. The EU Procurement Directives do not apply to 
below-threshold procurements; and they are covered by  national legislation. Therefore, there is no 
obligation for national authorities to follow EU Directives. However, contracting authorities and entities are still required to comply with the rules and principles of the TFEU, including those on transparency and competition, especially for contracts that are potentially of cross-border interest. 
Most member States have laws or regulations governing below-threshold procurement, sometimes 
covering contracts above and below thresholds in the same laws, although these laws may apply different rules to each group.
201 In a number of member States such as Bulgaria and Malta, there 
are different procedural requirements and time limits applying to two or three value-related bands 
for contracts below the level of the EU threshold, for example, different rule s apply for each of the 
bands: below €5,000, between €5,000 and €15,000, and from €15,000 to the EU threshold. 
3.217.  There are "aggregation rules" in the procurement Directives regarding below-threshold 
procurement. For example, contracting authorities are required to aggregate the value of separate 
contract lots for works or services to be awarde d at the same time for a particular project. The 
value of each of the individual contracts may be less than the relevant EU financial threshold, but 
when added together the total value of these su b-threshold contracts may exceed the threshold. 
In such a case, the Directive will generally apply to the award of each of those sub-threshold contracts.
202 
3.3.3.2  GPA and international procurement 
3.218.  The EU is a signatory to the WTO Agreement of Government Procurement (GPA), thus, 
relevant EU procurement Directives (i.e. the Public Procurement Directive and the Utilities 
Directive), in addition to member States' legislat ion, must comply with the GPA. The GPA applies 
to procurement contracts of value above certain specified thresholds. The EU notified its GPA thresholds for 2012-13
203, which are the same as those under the EU Procurement Directives. 
Commission Regulation (EC) No. 1251/2011 states that one of the objectives of Directives 
2004/17/EC and 2004/18/EC is to allow the contract ing entities and the contracting authorities to 
comply with the obligation laid down in the GPA. Thus, the thresholds under those Directives are aligned to the Euro equivalents, rounded down to the nearest thousand, of the thresholds set out 
in the GPA. 
3.219.  Although the thresholds are the same, the co verage of the GPA is different from that of the 
Directives. The GPA covers entities, goods, and services, including construction services, as 
specified in EU’s Appendix I. In 2009, out of th e total €420 billion above-threshold procurement in 
the EU, some €352 billion was open to GPA Parties.
204  
3.220.  In the conclusion of the GPA re-negotiati on, improved EU commitments provide for further 
market access opportunities. New sectors and contracting authorities/entities now are included in 
the EU schedules, for instance, the European External Action Service at EU level and a number of 
central government contracting authorities and sub-central entities of member States.205 In 
March 2013, the Commission adopted a proposal for a Council Decision on the conclusion of the 
revised GPA, in order to allow the EU to submit its instruments of acceptance. 
3.221.  In addition to the GPA, the EU has sign ed a number of bilateral agreements that include 
chapters on government procurement with CARIFORUM, Central America, Chile, Colombia, Iraq, 
                                               
201 OECD and European Union (2011b). 
202 More examples can be found in OECD and European Union (2011b). 
203 WTO document GPA/W/314/Add.6, 23 February 2012. 
204 European Commission document COM(2012) 124 final, 21 March 2012. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2012/march/tradoc_149243.pdf . 
205 WTO document GPA/113, 2 April 2012. WT/TPR/S/284 • European Union 
 
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  Mexico, Peru, South Korea, and Switzerland.206 The negotiations with Ukraine are finalized and the 
text was initialled in July 2012. In December 2012 the negotiations with Singapore were finalized.
207 At the same time, the EU is negotiating with India on procurement following the 
EU-India Summit in February 2012, as well as with Canada, Georgia, Armenia, Malaysia, Moldova 
and MERCOSUR. Negotiations have been launched with Viet Nam and the launch of negotiations 
has been agreed with Japan and Morocco.208 The Commission notes that all these free-trade 
agreements are to include provisions on public procurement.  
3.222.  There are currently no explicit provisions in the EU Directives generally excluding the 
participation of suppliers from third countries in the EU procurement market. The Commission indicates that participation in the GPA or in a bilateral agreement with the EU provides an enforceable right to access the EU procurement market covered by the EU’s commitments under 
the GPA or a bilateral agreement. There are on ly two specific cases where the EU public 
procurement market can be closed to foreign bidders from third countries: the Utilities Directive contains provisions which allow contracting authorities to reject foreign bidders while the Defence 
Directive leaves it up to member States to decide whether or not to accept foreign bids.
209 The 
Commission indicated that 85% of procurement in the EU is opened to international competition via the GPA and FTAs concluded by the EU.  
3.223.  In March 2012, the Commission adopted a proposal for a Regulation on the access of 
third-country goods and services to the European Union’s internal market in public procurement.
210 
In the proposed Regulation, access of third-co untry goods and services to the EU's public 
procurement market may be made conditional up on the openness of their procurement market. 
According to the Commission, this does not concern goods and services originating in a country or 
countries with which the EU has concluded an international agreement in the field of public procurement, including market access commitments  (like GPA and FTAs) and in respect of which 
the relevant agreement applies. There is a threshold of €5 million in the proposed Regulation: for 
above-threshold contracts, contracting authorit ies may exclude, subject to approval by the 
Commission, tenders comprising a significant part (e.g. more than 50%) of third-country content; 
below the threshold, there is a default rule of openness according to the Commission.
211 
Furthermore, the Commission states that if it finds that restrictive practices exist and result in "lack of substantial reciprocity" and all attempts to consult and negotiate with the third country in question are in vain, the Commission may consider EU-wide restrictive measures. 
3.3.3.3  Other developments 
3.224.  In 2004, the Commission adopted the Action Plan for implementing the legal framework for 
electronic public procurement, the increased use of which is expected to result in significant 
savings and improvements in efficiency and co mpetition in the EU. The Public Procurement 
Directives contain relevant provisions for member States to introduce e-procurement, e.g. electronic publication of procurement notices, use of electronic means of communication, and 
electronic auctions. Since it is up to contracting authorities or suppliers in the majority of member 
States to decide whether to use electronic means, the transition is gradual: the use of e-procurement accounted for 5-10% of procurement procedures carried out across the EU. In 2012, 22% of enterprises surveyed used th e Internet to access tender documents and 
specifications as well as e-procurement systems of public authorities. In order to increase the use 
of electronic procedures, the Commission adopted in December 2011 a legislative proposal to make them mandatory for certain phases of the procurement process by mid-2014. The aim is 
that they become the standard method of procurement (mandatory for all contracting authorities 
                                               
206 WTO document WT/TPR/248/Rev.1, 1 August 2011. 
207 European Commission online information. Viewed at: http://ec.europa.eu/trade/creating-
opportunities/bilateral-relations/countries/singapore/ . 
208 European Union Press Release MEMO/12/201, 21 March 2012. Viewed at: 
http://europa.eu/rapid/press-release_MEMO-12-201_en.htm?locale=en . 
209 European Union Press Release MEMO/12/201, 21 March 2012. Viewed at: 
http://europa.eu/rapid/press-release_MEMO-12-201_en.htm?locale=en . 
210 European Commission document IP/12/268, 21 March 2012. Viewed at: 
http://europa.eu/rapid/press-release_IP-12-268_en.htm . 
211 European Commission document MEMO/12/201, "External public procurement initiative - Frequently 
Asked Questions", 21 March 2012. Viewed at: http://europa.eu/rapid/press-release_MEMO-12-201_en.pdf . For 
detail of the proposal text, see European Commission document COM(2012) 124 final, 21 March 2012. Viewed 
at: http://trade.ec.europa.eu/doclib/docs/2012/march/tradoc_149243.pdf . WT/TPR/S/284 • European Union 
 
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  and all procurement procedures) in the EU by mid-2016.212 Furthermore, one of the priority 
actions included in the Single Market Act II presented by the Commission in October 2012, was to make electronic invoicing the standard invoicing mode for public procurement.
213  
3.3.4  Competition policy and regulatory issues 
3.3.4.1  Overview 
3.225.  The basic competition policy framework has remained unchanged since the previous 
Review. Articles 101-109 of the Treaty on the F unctioning of the European Union (TFEU) provide 
the basic competition principles: Article 101 prohibits agreements between two or more 
independent market operators that restrict competition;214 and Article 102 prohibits firms holding 
a dominant position from abusing that position. The main rules on procedures are found in Council Regulation (EC) 1/2003, which implements the rules laid down by Articles 101 and 102. Article 106 
stipulates that undertakings must not obstruct competition and not be contrary to the interest of 
the EU. Council Regulation No. 139/2004 set out the rules on procedures for review of mergers 
and acquisitions. 
3.226.  Under Article 105 of the TFEU, the Comm ission may conduct investigations and take 
decisions either following receipt of a complaint or on its own initiative when it suspects there may have been a violation of the Treaty concerning co mpetition policy. The Court of Justice reviews the 
Commission’s activities and may rule against the Commission’s decisions.
215 
3.227.  The responsibility for public enforcement of  competition policy across the EU is shared by 
the Commission and the national competition authorities of the member States. The Commission cooperates with member States' national competition authorities through the European 
Competition Network (ECN), established to enhance the efficiency of policy application within the 
system of shared jurisdiction. Within the ECN,  the Commission and member States' competition 
authorities share information and attempt to agree on effective allocation of cases, which should 
be dealt with by a single competition authority as often as possible, either a member State's or the 
Commission. Where an agreement or practice substantially affects competition in more than one member State, the Network members seek to ensure  that the case is assigned to the authority 
which is well placed to deal with it.
216 The Commission is particularly well placed if one or several 
agreement(s) or practice(s) have effects on competition in more than three member States.217 
3.228.  Appeals in competition matters can be br ought before the General Court and the Court of 
Justice.218 Subject to certain conditions, the parties can bring an action for annulment of 
Commission decisions before the General Court (on grounds of fact or law). Appeals on points of 
law only may be brought before the Court of Justice against judgements and orders of the General Court. 
                                               
212 European Commission Press Releases IP/11/1580, 20 December 2011. Viewed at: 
http://europa.eu/rapid/press-release_IP-11-1580_en.htm ; and IP/12/389, 20 April 2012. Viewed at: 
http://europa.eu/rapid/press-release_IP-12-389_en.htm?locale=en . 
213 European Commission document COM(2012) 573 final, 3 October 2012. Viewed at: 
http://ec.europa.eu/internal_market/smact/docs/single-market-act2_en.pdf . See also European Commission 
(document COM(2012) 179 final, 20 April 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0179:FIN:EN:PDF . 
214 In particular, agreements that: (a ) directly or indirectly fix purcha se or selling prices or any other 
trading conditions; (b) limit or control production, markets, technical development, or investment; (c) share markets or sources of supply; (d) apply dissimilar cond itions to equivalent transactions with other trading 
parties, thereby placing them at a co mpetitive disadvantage; and (e) make the conclusion of contracts subject 
to acceptance by the other parties of supplementary obligations which, by their nature or according to 
commercial usage, have no connection with the subject of such contracts. 
215 For example, case T-344/88, 22 May 2012. 
216 An authority can be considered to be well placed to  deal with a case if the following three cumulative 
conditions are met: the agreement or practice has su bstantial direct actual or  foreseeable effects on 
competition within its territory, is implemented within or originates from its territory; the authority is able to effectively bring to an end the entire infringement; it can gather, possibly with the assistance of other authorities, the evidence required to prove the infringement. 
217 Council of the European Union document 15435/02 ADD.1, "Joint Statement of the Council and the 
Commission on the Functioning of the Network of Competition Authorities", 10 December 2002. Viewed at: 
http://register.consilium.europa.eu/pdf/en/02/st15/st15435-ad01.en02.pdf . 
218 Article 263, TFEU. WT/TPR/S/284 • European Union 
 
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  3.3.4.2  Anti-trust 
3.229.  Article 101 of the TFEU prohibits agr eements between undertakings that restrict 
competition, with the provision that this prohibition may be declared inapplicable for agreements that contribute to improving production or distribu tion of goods, or promote technical or economic 
progress while allowing consumers a fair share of the benefits. It does not apply to agreements of 
minor importance ( de minimis ) where the aggregate market share of the undertakings is small 
(less than 10% in cases of horizontal agreements, or 15% for vertical agreements).
219 The 
Commission has also published guidelines on the applicability of Article 101 on horizontal 
cooperation agreements between actual or potential competitors, such as agreements on product standardization or joint R&D.
220 Furthermore, through Commission Regulation (EC) No. 772/2004 
of April 2004, certain kinds of licensing agreements for transfer of technology have been granted a 
block exemption through regulation whose current regime, set to expire in April 2014, is currently 
under review by the Commission. 
3.230.  In the context of the current economic downturn, a number of undertakings in various 
industries cited economic crises and the overcapa city problems as justifications for agreements 
that restrict competition, by, for example, jointly reducing output. The Commission pointed out that such crisis cartels, or industrial restruct uring agreements, despite their seeming remedy to 
overcome the effects of crisis, cannot be justified by economic downturns. It further stressed that 
not only are they in principle a restriction of competition under Article 101(1), but also are unlikely to be exempted under Article 101(3).
221  
3.231.  Since 2008, companies found to have participated in a cartel can settle their case by 
acknowledging their involvement in the cartel and having a reduced fine in return. Since the first 
settlement case in 2010, three out of four deci sions made in 2011 resulted in settlements. The 
ECN published a revised version of its Model Leniency Programme that introduced a set of common 
standards for applications for leniency in order to address the issue of discrepancies among 
member States. For instance, under the refined Model Leniency Programme, all leniency applicants applying to the European Commission in cases concerning more than three member States will 
now be able to submit a summary application to national competition authorities, whereas in the 
past only the immunity applicant could do so. The Commission received 146 applications for immunity and 132 applications for a reduction of fines under the 2006 Notice, from the date of its introduction to the end of 2012. 
3.232.  The total number of new anti-trust cases (i ncluding cartels and antitrust non-cartel cases) 
rose from 95 in 2010 to 103 in 2011, and fell to 98 in 2012; 87 cases were closed in 2010, 95 in 2011, and 68 in 2012. In 2012 (as of 5 December) there were 5 cartel decisions imposing fines 
totalling €1.9 billion and involving 37 undertakings/associations by the Commission, compared 
with 4 decisions in 2011 with fines totalling €614 million, involving 14 undertakings.  
3.233.  Under Council Regulation (EC) No. 1/2003, when circumstances suggest that competition 
may be restricted or distorted in a certain sector, the Commission can conduct its inquiry into the 
particular sector and request information from the undertakings concerned. In the context of rising 
food prices, the Commission and national competition authorities began monitoring the food industry in order to find out the level of competition and competitive structure for the period 
2004-2011. Among some 180 cases examined by the authorities in the period, more than 50 cartel 
cases were sanctions, and vertical restraints were  found mainly in coffee, sugar and multi-product 
markets.
222 In 2011, the Commission concluded its investigation into the EU banana markets and 
imposed a fine of €8.9 million on two of the main importers and sellers of bananas in the EU for 
price fixing and exchanging price information in Italy, Greece and Portugal.223 
                                               
219 Commission Notice on agreements of minor importance, (2001/C 368/07), 22 December 2001. 
Viewed at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2001:368:0013:0015:EN:PDF.  
220 European Commission (2011), Guidelines on the applicability of Article 101 of the Treaty on the 
Functioning of the European Union to  horizontal co-operation agreements , 2011/C 11/01, 14 January. Viewed 
at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2011:011:0001:0072:EN:PDF.  
221 OECD document (2011c). 
222 European Commission (2012c). 
223 European Commission Press Release IP/11/1186, 12 October 2011. Viewed at: 
http://europa.eu/rapid/press-release_IP-11-1186_en.htm . WT/TPR/S/284 • European Union 
 
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  3.234.  In early 2012, DG Competition began its third monitoring exercise of the pharmaceutical 
industry. This concerned patent settlements between originator and generic companies focusing on potentially anti-competitive reasons for the delay in entry into the market of generic medicines following patent expiry.
224 It showed that, during 2011, although the number of agreements 
concluded among pharmaceutical enterprises has not decreased, the perc entage of settlements 
restricting generic entry had decreased: 70% of settlements did not limit generic market entry 
in 2011, compared to 57% in 2008-2009. Following the sector inquiry, the Commission issued 
statements of objections against pharmaceutical companies in two major cases in July 2012, 
concerning citalopram (an antidepressant) and perindopril (a cardio-vascular medicine). The concern in both cases was that the originator companies (i.e. enjoying patent protection for their products) and the generic competitors entered into patent settlement agreements which may have 
hindered the entry of generic alternatives into markets in the EEA and maintained unnecessarily 
high prices.
225 
3.3.4.3  Mergers and acquisitions 
3.235.  Council Regulation No. 139/2004 requires examination of whether a concentration would 
significantly impede effective competition, notably through the creation or strengthening of a dominant position. In such cases, the concentration may be prohibited or conditionally approved. 
Therefore, all concentrations with a "Communi ty dimension" are subject to review by the 
Commission before being approved. A merger with  a "Community dimension" is defined as a 
merger where the parties have a combined worldwide turnover of €5 billion and each party has a Community-wide turnover of €250 million.
226 In accordance with the stand-still obligation, no 
merger may proceed unless approved by the Commission. Most mergers are approved within the 
initial (first phase) period, without the need for an in-depth (second phase) investigation. As for 2012, 263 out of 283 merger notifications were cleared in the first phase. 
3.236.  In 2011 there were 309 merger notifications to the Commission (up from 274 in 2010), of 
which 299 were approved in the first phase (5 of them conditionally), 5 were approved after a second-phase investigation, and 10 were withdraw n. The only prohibited concentration of that 
year, of two airlines, was the Commission's first prohibition since 2007. Despite the financial 
crises, M&A activity in the EU has been slowly recovering since 2010, although still below the peak of 402 notified mergers in 2007. In 2012, there were 283 notifications, of which 254 were 
approved in the first phase (9 were approved cond itionally), 5 were approved after a second-phase 
investigation, and 4 were withdrawn. One merger was prohibited. 
3.237.  The proposed trans-Atlantic transaction between two stock exchanges, which the 
Commission blocked in 2012, was also being investigated by the US Department of Justice at the 
same time. The Commission cooperates with the US competition authorities (Department of 
Justice and Federal Trade Commission) primarily on the basis of the 1991 Cooperation Agreement and 1998 Positive Comity Agreement. Although differ ent outcomes resulted from differences in the 
markets in the respective jurisdictions, during the parallel investigation it was noted that the open 
and regular dialogue between the European Commi ssion and the US Department of Justice was 
very effective, allowing each agency to conduc t its respective investigation and to understand 
developments and anticipate outcomes in the other jurisdiction.
227 The 2011 EU/US Best Practices 
                                               
224 The first two monitoring exercises were conc luded in 2010 and 2011. The inquiry showed that 
originator companies used a variety of instruments to protect the commercial life of their products without 
generic entry, including patent clusters, patent litigations, and settlement agreements. Patent settlement agreements are commercial agreements to settle patent -related disputes. The Commission noted that some of 
the agreements could be in violation of EU competition la w, which may result in restricting, limiting or delaying 
generic entry in return for a value tr ansfer (by means of monetary transfer , distribution agreements, granting 
a license, etc.), for instance, by the originator company to the generic company. 
225 European Commission Press Release IP/12/834, 25.July.2012. Viewed at: 
http://europa.eu/rapid/press-release_IP-12-834_en.pdf ; and European Commission Press Release IP/12/835, 
30 July 2012. Viewed at: http://europa.eu/rapid/press-release_IP-12-835_en.pdf.  
226 Mergers with a combined worldwide turnover of €2. 5 billion are also examined by the Commission if: 
(i) the parties' combined turnover exceeds €100 million in at least three EU member States; (ii) each party has a turnover of €25 million in the same three EU member States; and (iii) the individual Community-wide turnover of each party exceeds €100 million. If these thresholds are not met, mergers may be subject to review under national laws of the member States. Howeve r, mergers that do not have EU dimensions can still 
be subject to the Commission’s review, upon a member St ate’s request, if they affect trade between member 
States and significantly affect competition in the territory of the involved member States. 
227 U.S. Department of Justice (2012). WT/TPR/S/284 • European Union 
 
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  on Cooperation in Merger Investigation revised the 2003 version, to better reflect current 
cooperation practices, particularly on remedies and on the timing of investigations, in order to set an advisory framework on inter-agency cooperation.
228 
3.238.  Amid the increasing number of M&A activi ties in the EU involving firms from emerging 
economies, the Commission stressed the current merger control regime’s equal treatment of 
foreign firms in relation to their investment in the EU and the importance of staying away from using merger control as a protectionist measure against foreign investment in the EU.
229 Notably, a 
number of mergers involving firms owned by the Chinese State were approved by the Commission, 
which stated that the same criteria that it adopts to assess mergers involving member-State-controlled firms were applied, irrespective of the nationality of the companies.
230 
3.3.4.4  International cooperation 
3.239.  As companies increasingly engage in cross-border deals affecting several countries, the EU 
has cooperated with competition authorities outside its jurisdiction. The EU's competition agreements with the United States, Canada, Japan, and Korea enable the parties to share mainly 
non-confidential information.
231 The agreement with Switzerland that was concluded in 2012 goes 
beyond previous cooperation with other jurisdictions, due to the fact that the concluded agreement would allow a broader scope of information exchange, even without the consent of the companies 
involved.
232 At present, the EU has concluded bilateral agreements and/or memoranda of 
understanding with Brazil, China, and Russia.233  
3.240.  An advocate in promoting greater convergenc e, the EU has also been supportive of greater 
multilateral cooperation through the International Competition Network (ICN), the UNCTAD 
Intergovernmental Group of Experts on Competition Policy, and the OECD Competition 
Committee.234 The EU considered that these multilateral  fora provide an important platform to 
promote open competition and fight protectionism; this will enable competition authorities 
worldwide to respond to cases more efficiently through coordinated inspections across several 
jurisdictions.235 
3.3.5  Intellectual property rights 
3.241.  Since its previous Trade Policy Review in 2011, the EU has continued to review and 
develop its legislative framework for the protection and enforcement of intellectual property rights 
(IPRs) in response to a rapidly changing economic and technological environment. In particular, in its May 2011 "blueprint" for IPRs to boost creativity and innovation
236, the European Commission 
                                               
228 The stated common objectives of the co-operation  are: promoting fully-informed decision-making; 
minimizing the risk of divergent outcomes; enhancing th e efficiency of investigat ions; reducing burdens on 
merging parties and third parties; and increasing the overall transparency of the merger review process 
(U.S. Department of Justice, 2012). 
229 European Union Press Release SPEECH/11/346, 18 May 2011. Viewed at: 
http://europa.eu/rapid/press-release_SPEECH-11-561_en.htm . 
230 Case No COMP/M.6082 (China National Bluestar/Elkem), Case No COMP/M.6113 (DSM/Sinochem), 
Case No COMP/M.6151 (Petrochina/Ineos), and Case No COMP/M.6111 (Huaneng/Intergen). 
231 They contain various instruments of cooperation in the area of competition policy but exclude the 
exchange of evidence. Only with the waiver of companies providing the information there can be exchange of confidential information between agencies involved . For details, see Europe an Commission document 
COM(2012) 245 final, 1 June 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0245:FIN:EN:PDF . 
232 The Commission published in June 2012 its proposal (COM(2012) 245 final) on the conclusion of an 
agreement, which needs to be adopted by the EU Council and the EU Parlia ment and could be the object of a 
Swiss referendum (European Commission document COM(2012) 245 final, 1 June 2012). Viewed at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0245:FIN:EN:PDF . 
233 For detailed legislation provisions, see European Commission online information, "DG COM: 
Provisions on international relations in EU competition policy". Viewed at: http://ec.europa.eu/competition/international/legislation/legislation.html.  
234 European Commission online information. Viewed at: 
http://ec.europa.eu/competition/international/overview/index_en.html . 
235 European Union Press Release SPEECH/11/346, 18 May 2011. Viewed at: 
http://europa.eu/rapid/press-release_SPEECH-11-346_en.htm?locale=en . 
236 European Commission documents COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf ; and COM(2012) WT/TPR/S/284 • European Union 
 
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  recognized the need to adapt and modernize the exis ting body of IPR legislation in order to reduce 
its current fragmentation. The objective is to establish a coherent and holistic framework that contributes to enhanced economic growth, job cr eation and competitiveness in the EU's single 
market, while ensuring a high level of protection of  IPRs, and taking into account cultural diversity. 
For this purpose, the Commission proposed a comprehensive strategy, which includes a series of 
actions in key areas. Among others, those are the introduction of a unitary patent and specialized patent court, the modernisation of the trademar k system, the streamlining of copyright licensing 
and revenue distribution, and the strengthening of IPR enforcement both within the EU and at its 
borders. They will be discussed in detail in the relevant sections below. At the same time, the Commission recognized the need to opt for a balanced approach that provides the right incentives to promote creative and innovative activity and to preserve cultural diversity, and ensures the 
widest possible access to IPR-protected creations and innovations. To do so, it calls, among others, 
for the rigorous application of competition rules in order to prevent or correct the abuse of IPRs.  
3.242.  For the EU, as a knowledge-based economy, IPRs are generally considered the vital 
backbone of the EU's economy and a key driver for its growth, as they constitute a key element to 
ensure that creativity and innovation are rewarded.
237 For example, investment in R&D has been 
reported to amount to 1.9% of the EU's GDP, and is expected to reach 3% in 2020.238 Similarly, 
the EU's cultural and creative industries account  for 3.3% of its GDP (2006) and 3% of total 
employment (2008). In 2008, 6.7 million people worked in creative industries. Another interesting example are is fashion and high-end industries which are highly dependant on cultural and creative input; they each account for 3% of the EU GDP an d employ 6 million people, with the creation of 
an additional 1 million jobs expected in high-end industries by 2020.
239 
3.243.  The importance of IPR protection in th e EU is also reflected by the high number of 
applications and titles granted. For example, in the period 2011-12, the European Patent Office 
recorded a 5.7% increase in patent filings and a 5.8% increase in patent grants. In total numbers, 
applications went up from almost 244,000 to 258,000, with about two thirds of applications submitted by non-EU countries of origin, and the number of patents granted amounting to 
65,700 in 2012, as compared to about 62,000 in 2011.
240 That said, the European Patent Office, 
like other developed-country IP offices, also saw an annual decrease in its share of worldwide patent filings by 0.8% in the period 2008-11 which went down from 7.6% to 6.7%.
241 In contrast, 
the Office for Harmonization in the Internal Market (OHIM) witnessed an annual growth of 6% in 
trademark applications during the same period, with the share of worldwide filings increasing from 
4.6% to 4.9%. For example, according to statisti cs released by the OHIM, annual applications for 
Community trademarks went up from 105,900 in 2011 to 107,927 in 2012, and registrations 
increased from 93,834 to 95,641 during the same period.242 
3.244.  The IPR regime in the EU is governed bo th by EU legislation and legislation in member 
States. Article 118 of the Treaty on the Functionin g of the European Union contains an IP-specific 
provision that calls for measures to be established "for the creation of European intellectual 
property rights to provide uniform protection of intellectual property rights throughout the Union and for the setting up of centralised Union-wide authorisation, coordination and supervision arrangements". The EU has put in place an extens ive body of intellectual property legislation. 
Table A3.5 provides an overview of the main legislative instruments, as well as their status of 
notification to the Council for TRIPS pursuant to Article 63.2 TRIPS. Member states' legislation implements and complements, where appropriate, EU legislation and commitments under 
international agreements. The EU is an observer to the World Intellectual Property Organization 
(WIPO), while its member States are WIPO member States.  
                                                                                                                                               
582 final, 10 October 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF . 
237 European Commission document COM(2012) 582 final, 10 October 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF . 
238 European Commission document SEC(2011) 482 final, 13 April 2011. Viewed at: 
http://ec.europa.eu/internal_market/indprop/docs/patent/sec2011-482-final_en.pdf . 
239 European Commission document COM(2012) 537 final, 26 September 2012. Viewed at: 
http://ec.europa.eu/culture/our-policy-development/documents/communication-sept2012.pdf . 
240 See EPO Press Release, 17 January 2013. Viewed at: http://www.epo.org/news-
issues/news/2013/20130117.html . 
241 WIPO (2012b). 
242 For OHIM statistics, see OHIM (2013). WT/TPR/S/284 • European Union 
 
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  3.3.5.1  Exhaustion 
3.245.  The EU has a regime of regional exha ustion, under which parallel imports from third 
countries are not allowed without authorization by the right holder, while parallel imports within the EU are permitted. The principle of regional exha ustion will also apply to European patents with 
unitary effect.
243  
3.3.5.2  Copyright and related rights  3.246.  Copyright-dependent industries play an im portant role in the EU economy. For example, 
the sales revenue of book publishers in the EU/EEA amounted to about €23 billion in 2009, with 
more than 500,000 new titles being put on the market, and approximately 135,000 people being 
employed in this sector in the same year.
244 Europe's TV market grew by 12% between 2006 and 
2010, reaching an annual turnover of €84.4 billio n in 2010. Having produced 1,168 films in 2009 
and employing over 1 million people, the EU is among the largest film producers worldwide.245 
3.247.  In its 2011 blueprint for IPRs246, the Commission listed the creation of a comprehensive 
framework for copyright in the digital marketplace as a key component for further advancing the 
Single Market in IPRs. In a similar vein, the conclusions of the European Council in June 2012 
underlined the importance of modernising Europe's copyright regime and facilitating licensing, while ensuring a high level of protection of intellectual property rights and taking into account 
cultural diversity.
247 
3.248.  To achieve this objective, the Commission has proposed a number of legislative and other 
actions. The development of online copyright lice nsing services figures among the key features. As 
a follow-up, the Commission has submitted a proposal for a Directive on "Collective Management 
of Copyright and Related Rights and Multi-Territo rial Licensing of Rights in Musical Works for 
Online Uses in the Internal Market" in July 2012.248 The main objectives of the proposed Directive 
are twofold: first, to enhance the transparency an d governance of collecting societies to ensure, 
inter alia , that right holders can freely choose the collecting society and are remunerated more 
quickly; and second, to facilitate cross-border licensing of musical works for online use to allow their distribution across the EU while collecting the revenues due to the authors, thus benefiting 
authors, service providers and consumers. The economic relevance of establishing EU-wide 
minimum standards in this field is highlighted by the fact that more than 250 collecting societies 
collect about €6 billion in royalties every year and that about 80% of the total revenue collected by collecting societies stems from licensing of musi cal works. The reported target date for the 
adoption of the proposed Directive is March 2014. 
3.249.  In order to allow for the free movement of goods within the EU's internal market, 
legislative action with respect to private copying levies is under consideration. Although copyright 
holders have the exclusive right to authorize the re production of their works, EU legislation allows 
member States to limit this right by permitting private copying on condition that the right holders receive "fair compensation" (Article 5(2) of Directive 2001/29/EC
249). The CJEU considered private 
copying levies to be a valid form of providing for fair compensation, while clarifying that the 
indiscriminate application of such levies to digital reproduction equipment, devices, and media purchased for purposes clearly unrelated to pr ivate copying (e.g. for professional use by 
professional users) is not compatible with Directive 2001/29/EC.
250 That said, approaches to a 
number of key issues under member States' national laws diverge and thus potentially affect the 
                                               
243 See Article 6 of Regulation (EU) No. 1257/2012 on Implementing Enhanced Co-operation in the Area 
of the Creation of Unitary Patent Protection (OJEU L 361/1, 31 December 2012). 
244 European Commission Press Release MEMO/11/619, 20 September 2011. Viewed at: 
http://europa.eu/rapid/press-release_MEMO-11-619_en.htm?locale=en . 
245 European Commission Press Release MEMO/11/502, 13 July 2011. Viewed at: 
http://europa.eu/rapid/press-release_MEMO-11-502_en.htm?locale=fr . 
246 European Commission documents COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
247 European Council document EUCO 76/12, 29 June 2012. Viewed at: 
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131388.pdf . 
248 European Commission document COM(2012) 372 final, 11 July 2012. Viewed at: http://eur-
lex.europa.eu/Result.do?T1=V5&T2=2012&T3= 372&RechType=RECH_naturel&Submit=Search . 
249 OJEU L 167/16, 22 June 2001. 
250 Case C-467/08 (Padawan vs. SGAE). WT/TPR/S/284 • European Union 
 
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  free movement of goods within the Single Market.251 Those include the methodology used to 
impose levies, the type of equipment subject to levies, the person or entity liable to pay the levy and the level of fees applied. For some time now, the Commission has facilitated discussions 
between the main stakeholders in order to identify solutions that could address those and other 
challenges. However, opposing interests in the hardware industry, which is seeking lower levies to 
be imposed on fewer devices, and right holders, who want higher levies to be imposed on a wider range of devices, have so far made any progress impossible.
252 As suggested in its 2011 blueprint 
for IPRs, the Commission appointed a high-level mediator in April 2012 to look into possible 
compromise solutions. In January 2013, he presented a set of recommendations for consideration by the Commission.
253 Those include clarifying that no additional remuneration in the form of 
private copying levies should be due for copies that are made by end users for private purposes 
only in the context of a service previously licensed and which do not cause any harm to the right 
holder. 
3.250.  As a contribution to the preservation and dissemination of the cultural heritage and to the 
development of Europe's knowledge-based economy, a number of initiatives have been taken by 
the EU, including the digitisation and online accessi bility of "orphan works" (i.e. works protected by 
copyright for which the author cannot be located), as well as the setting up of collective licensing 
schemes for "out-of-commerce" works (i.e. works protected by copyright for which authors or 
publishers are known, but which are not available in traditional or new digital channels of trade). Given that orphan works represent a significant part of libraries' and cultural institutions' collections in the EU, the establishment of a harmonized framework was considered essential in 
order to advance large-scale digitisation projects. For this purpose, Directive 2012/28/EU of 
25 October 2012 on Certain Permitted Uses of Orphan Works
254 provides for an exception to 
copyright, permitting cultural institutions to di gitise orphan works in th e printed and audiovisual 
sector, as well as phonograms and works embedd ed in other works or phonograms, and to make 
them available online to the public. Parallel work in the area of out-of-commerce works has resulted in the signature of a Memorandum of Understanding (MoU) in September 2011 between 
libraries, as well as publishers, authors and collecting societies.
255 It establishes certain key 
principles regarding the digitisation and making available of out-of-commerce books and journals 
to which the contracting parties have committed themselves. Conscious of the need to fully respect existing copyright, the MoU encourages voluntary licensing agreements between all 
relevant parties. As another complementary tool to enhance access to the EU's cultural heritage, a 
further MoU was signed in September 2010 to access books for the visually impaired.
256 It aims to 
enhance the publication of works in special format s and to increase cross-border trade of such 
works through a network of trusted intermediaries. The Commission works with signatories to 
implement the MoU in order to ensure that the network of trusted intermediaries is set up and becomes operational, and to establish an online catalogue of works available in accessible formats. 
3.251.  In order to ensure that both performers and producers of phonograms dispose of adequate 
revenues, Directive 2006/116/EC
257 which harmonizes the term of protection of copyright and 
certain related rights at EU level, was amended by Directive 2011/77/EU.258 It extends the term of 
protection for fixations of performances and for phonograms which have been lawfully published or 
communicated to the public to 70 years after such publication or communication (Table A3.6). The 
initial Commission proposal that the term of protection be extended to 95 years has thus not been 
                                               
251 See WIPO (2012a). 
252 EurActiv online information, "EU asks mediator to untangle copying levies", 25 May 2011. Viewed at: 
http://www.euractiv.com/infosociety/eu-asks-mediator-untangle-copyin-news-505104.  See also Society of 
Audiovisual Authors online information, "Declaration on Private Copying Remuneration of 21 September 2012, 
signed by trade associations representing right holders". Viewed at: http://www.saa-
authors.eu/fr/news/72/Declaration-on-Private-Copying-Remuneration- . 
253 Vitorino (2013). 
254 OJEU L 299/5, 27 October 2012. 
255 European Commission Memorandum  of Understanding on Key Princi ples on the Digitisation and 
Making Available of Out-of-Commerce Works. Viewed at: http://ec.europa.eu/internal_market/copyright/docs/copyright-infso/20110920-mou_en.pdf . 
256 European Commission, EU Stakeh olders Dialogue Memorandum of Understanding (MOU) on access to 
works by people with print disabilities". Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/copyright-infso/2010/20100914_mou_en.pdf . 
257 OJEU L 372/12, 27 December 2006. 
258 OJEU L 265/1, 11 October 2011. WT/TPR/S/284 • European Union 
 
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  retained.259 Directive 2011/77/EU also introduces a number of accompanying measures supportive 
of performers' interests. For example, a mandat ory clause in contracts between performers and 
producers ensures that performers can recover thei r rights if the producer does not market the 
sound recording during the extended term of protec tion. In addition, performers are entitled to an 
annual supplementary remuneration during the exte nded period of protection, to be funded by 
part of the revenue that producers are required to set aside for this purpose. 
3.252.  According to the Commission, the extended  term of protection would bring performers' 
protection closer to that given to authors (life plus 70 years) (Table A3.6) and would ensure 
additional revenues both for performers, who often do not dispose of regular salaries, and producers of phonograms who are exposed to a ra pidly changing business environment, allowing 
them to invest in new talents.
260 In response to earlier criticism261, the Commission reaffirmed its 
view that the extended term of protection is no t expected to negatively affect prices paid by 
consumers. While the recording industry welcomed the extension262, concerns were, however, also 
reiterated regarding the necessity of the adopted measures which would mainly benefit producers 
and imply high costs for the general public.263 The continuing divergence of views is also confirmed 
by the fact that eight member States voted agains t the adoption of the Directive, and two others 
abstained. 
3.253.  Most of the measures in the copyright sector  described so far do not deal with works in the 
audiovisual sector. As foreshadowed in its 2011 blueprint for IPRs, the Commission has also launched a consultation process in order to identify new approaches that would facilitate cross-border and EU-wide licensing. This is regard ed as another major step towards the creation of 
a digital internal market that makes audiovisual content widely available online and equally 
benefits producers and consumers. In order to  discuss whether and how the EU's legislative 
framework needs to be adapted with a view to ac hieving this objective, a number of key issues 
have been identified by the Commission, including: the difficulties faced by broadcasters to clear 
rights with respect to the transmission and retransmission of audiovisual works for online use and across multiple territories, and to clear rights regarding transactional Video-on-Demand services; 
and the need to ensure that adequate remuneration is paid to authors and performers for the 
online exploitation of their works/performances . These and other issues are the object of the 
consultation process launched by the Commission in its Green Paper of 13 July 2011 that seeks the views of stakeholders with respect to the main obstacles impeding the development of a digital 
single market for audiovisual works and to identify possible ways forward.
264 According to the 
Commission, a report on the results of the public consultation will be published in the course of 2013.  
3.254.  To complement the measures set out above which aim to review and adapt the EU's 
legislative framework in the field of copyright and related rights, the Commission, in its Communication on "Content in the Digital Single Market" of 18 December 2012
265, has proposed to 
address a number of other, closely related issues  by means of a structured stakeholder dialogue. 
Under what is referred to as "Licences for Europe ", it suggests that (i) current restrictions to 
                                               
259 European Commission document COM(2008) 464 final, 16 July 2008. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0464:FIN:EN:PDF . 
260 EU online information. Viewed at: http://ec.europa.eu/internal_market/copyright/term-
protection/index_en.htm . 
261 See, for example, Gowers (2006), as well as the references provided in European Commission 
document SEC(2008) 2287, 16 July 2008. Viewed at: http://ec.europa.eu/internal_market/copyright/docs/term/ia_term_en.pdf . 
262 See IFPI online information, "Recording industry welcomes EU decision on copyright term extension" 
12 September 2011. Viewed at: http://www.ifpi.org/content/section_news/20110912.html . 
263 See, for example, The Register , "EU recording copyright ex tension 'will cost €1bn'", 
20 September 2011. Viewed at: http://www.theregister.co.uk/2011/09/20/kretschmer_consumers_lose_out_when_artists_get_copyright_exte
nsion/ . Dudge Stanford has compiled views in his contribu tion to IP Watch online information, "EU Extends 
Copyright Protection from 50 to 70 years", 12 September 2011. Viewed at: http://www.ip-
watch.org/2011/09/12/eu-extends-copyright-protection-from-50-to-70-years/ . 
264 European Commission document COM(2011) 427 final, 13 July 2011. Viewed at: 
http://ec.europa.eu/internal_market/consultati ons/docs/2011/audiovisual/green_paper_COM2011_427_en.pdf
. 
265 European Commission document (COM)2012 789 final, 18 December 2012. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/copyright-infso/121218_communication-online-
content_en.pdf  . WT/TPR/S/284 • European Union 
 
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  cross-border online access and portability of services be identified, (ii) questions of licensing of and 
access to user-generated content be examined, (iii ) online availability of audiovisual works be 
improved, including out-of-distribution works and (iv) the application of standard licensing models to text and data mining for scientific purposes be examined. 
3.255.  In parallel with the initiatives set out before, the Commission is also reviewing the EU 
copyright framework in general. Based on market studies, impact assessment and legal drafting work, it intends to take a decision in 2014 regarding the appropriateness of moving towards a 
comprehensive codification of the copyright directives.
266 The on-going review process covers the 
following elements: territoriality in the Internal Market; harmonization, limitations and exceptions to copyright in the digital age; fragmentation of  the EU copyright market; and how to improve the 
effectiveness and efficiency of enforcement while underpinning its legitimacy in the wider context 
of copyright reform. 
3.256.  As regards the legal protection of computer programmes provided for under 
Directive 91/250/EEC (replaced by the codified version in Directive 2009/24/EC)
267, the CJEU 
issued an important preliminary ruling that clarif ies the scope of copyright protection for computer 
software. In SAS Institute v World Programming Ltd268, it confirmed that the expression in any 
form of a computer programme, including the source code and the object code, as well as the 
preparatory design work capable of leading to the reproduction or the subsequent creation of such 
a programme fall within the Directive's scope of application. To support its interpretation, the CJEU also referred to Articles 9 and 10 of the TRIPS Agreement, as well as the Berne Convention and the WIPO Copyright Treaty. The CJEU excluded, however, the functionality of a computer 
programme, as well as the programming language and the format of data files used in such a 
programme from the scope of copyright protecti on available under Directive 91/250/EEC. This 
finding is based on the consideration that protecting the functionality as a form of expression 
would amount to allowing the monopolization of ideas which, in turn, could affect technological 
progress and industrial development.  
3.3.5.3  Industrial property 
3.3.5.3.1  Patents 
3.257.  Currently, there are three different avenues for patent applications: a national procedure is 
provided by the competent authority of each member  State; a centralized procedure is available at 
the European Patent Office (EPO) to grant a European patent (Table A3.6); and an international 
procedure is available under the Patent Cooperation Treaty (PCT) administered by the WIPO.
269  
3.258.  The European patent system under the EPO is considered as incomplete, fragmented, and 
costly.270 For a European patent to take effect in member States, the patent owner must request 
validation at national level. This involves translation, local representation, and administration 
requirements. A European patent validated for example in all 27 member States costs around €36,000, of which more than €23,000 is for translation. This is almost 20 times the cost of 
obtaining a patent in the United States (on average €1,850).
271 Because of the cost, most 
inventors seek patent protection in a limited number of member States. Low validation entails a fragmented system for patent protection in the EU, with negative effects on the commercial value of patented inventions.
272 Problems associated with the fragmentation of the system include high 
translation and publication costs, diverging rules regarding renewal fees (for example, cumulated 
                                               
266 See European Commission document COM (2011) 287 final, 24 May 2011. Viewed at: Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
267 OJEU L 122/42, 17 May 1991; and OJEU L 111/16, 5 May 2009. 
268 Case C-406/10, CJEU judgment of 2 May 2012. Viewed at: 
http://curia.europa.eu/juris/document/document.jsf?text&docid=122362&pageIndex=0&doclang=EN&mode=ls
t&dir&occ=first&part=1&cid=115060 . 
269 European Commission document SEC(2011) 482 final, 13 April 2011. Viewed at: 
http://ec.europa.eu/internal_market/indprop/docs/patent/sec2011-482-final_en.pdf . 
270 Harhoff (2009). 
271 European Commission Press Release IP/11/470, "Co mmission proposes unitary patent protection to 
boost research and innovation", 13 April 2011. Viewed at: http://europa.eu/rapid/press-release_IP-11-
470_en.htm?locale=en . 
272 European Commission document SEC(2010)797, 30 June 2010. Viewed at: 
http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2010/sec_2010_0797_en.pdf . WT/TPR/S/284 • European Union 
 
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  fees until the 20th year of protection range from €2,400 in Malta to €13,170 in Germany) and 
complex national provisions with respect to registration of transfers and licences. In addition, in legal disputes, innovators are exposed to high costs and legal uncertainty as they may have to litigate in several countries in parallel to enforce their rights, taking the risk of diverging court 
decisions.  
3.259.  The need to address those shortcomings and to establish a coherent system of patent 
protection in the internal market that stimulates  innovation, growth and competitiveness had been 
recognized for a long time.
273 The Commission first proposed the creation of a unitary EU patent in 
2000. Yet, despite the Council's Common Political Approach of 2003, the negotiation process came 
to a halt. It was criticised by stakeholders mainly on two grounds: the inadequate jurisdictional arrangements and an unsatisfactory language re gime. In 2007, discussions on a unitary patent 
protection were relaunched. Since no agreement could be reached on translation arrangements, 
the Commission, in 2010, responded favourably to the request of 25 member States and proposed to launch enhanced cooperation for the creation of unitary patent protection.
274 Following the 
consent by the European Parliament275, the Council authorized enhanced cooperation.276 On this 
basis, in April 2011, the Commission proposed two Regulations implementing enhanced cooperation to adopt the legal basis for a European patent with unitary effect (unitary patent) and 
to establish the applicable translation arrangements.
277 Next to those Regulations, the third 
element of the "unitary patent package" is the (d raft) Agreement on the Unified Patent Court, an 
international agreement open for signature by all EU member States278 (but outside the EU 
institutional framework and without EU participation) which aims at setting up a unified patent 
litigation system. 
3.260.  The European Parliament and the Council  reached a political agreement on the unitary 
patent package in December 2012. Regulati on (EU) No. 1257/2012 of 17 December 2012 
"Implementing Enhanced Co-operation in the Area of the Creation of Unitary Patent Protection"279 
and Council Regulation (EU) No. 1260/2012 of 17 December 2012 "Implementing enhanced cooperation in the area of the creation of unitary patent protection with regard to the applicable 
translation arrangements"
280 were adopted and will apply from 1 January 2014 or, should this be 
later, the date of entry into force of the Agreem ent. At a diplomatic conference in February 2013, 
24 EU member States signed the Agreement.281 Acceptance by 13 member States, including the 
three member States with the highest number of European patents in force (Germany, France and 
the United Kingdom) is now required for the Agreement to enter into force.282 
3.261.  The European patent with unitary effect  will provide uniform protection and will be 
automatically valid in the participating member States. Validation in individual member States 
(and thus costly translation requirements) will no longer be necessary. The European patent with 
unitary effect may only be limited, transferred or revoked, or lapse in respect of all those member 
                                               
273 For a description of the procedures leading to the adoption of the unitary patent, see European 
Council (2012). 
274 European Commission document COM(2010) 790 final, 14 December 2010. Viewed at: 
http://ec.europa.eu/internal_market/indprop/docs/patent/COM(2010)790-final_en.pdf . The framework of 
enhanced cooperation allows a group of member States to go ahead with legislation in a given area, while 
others may join at any time in the future (see Article 329 TFEU). 
275 European Parliament Legislative Resolution of  15 February 2011 on the draft Council decision 
authorising enhanced cooperation in the area of the creation of unitary patent protection, P7_TA(2011)0054. Viewed at: http://www.europarl.europa.eu/sides/ge tDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2011-
0054+0+DOC+XML+V0//EN . 
276 Council Decision 2011/167/EU, 10 March 2011 (OJEU L 76/53, 22 March 2011). Viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:076:0053:0055:en:PDF . 
277 European Commission documents COM(2011) 215 final, 13 April 2011. Viewed at: 
http://ec.europa.eu/internal_market/indprop/docs/patent/com2011-215-final_en.pdf ; and COM(2011) 
216 final, 13 April 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0216:FIN:en:PDF . 
278 Taking into account an earlier CJEU Opinion, the participation of third countries is excluded (CJEU 
Opinion 1/09, 8 March 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62009CV0001:EN:HTML ). 
279 OJEU L361/1, 31 December 2012. 
280 OJEU L361/89, 31 December 2012. 
281 The text of the Agreement on a Unified Patent Court can be viewed at Council of the European Union 
online information. Viewed at: http://register.consilium.europa.eu/pdf/en/12/st16/st16351.en12.pdf . 
282 The status of signature and acceptance of the Agreement can be viewed at European Commission 
online information. Viewed at: http://ec.europa.eu/internal_market/indprop/patent/ratification/index_en.htm . WT/TPR/S/284 • European Union 
 
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  States. As regards the rights conferred, Article 5 of Regulation (EU) No. 1257/2012 stipulates that 
the patent provides protection against certain acts by third parties and that the definition of those acts is left to the national law of the participating members States. The scope of the rights under the unitary patent, as well as the applicable exceptions and limitations will nevertheless be uniform 
since national laws are due to be harmonized through the Agreement: the latter incorporates the 
provisions on rights and exceptions/limitations from the initial Commission proposal (see Articles 6 to 8 of the proposed Regulation
283); they have been transferred from the Regulation to the 
Agreement (see Articles 25 to 27). This was in re sponse to the view expressed by some member 
States that the CJEU should not interpret substantive patent law (as including those provisions in the Regulation would have implied conferring juri sdiction to the CJEU). In order to obtain a 
European patent with unitary effect, the right holder will have to request, no later than one month 
after the grant of the European patent by the EPO,  the "unitary effect" at the EPO. Otherwise, the 
patent will remain a "classical" European patent (which needs to be validated in individual member States). The estimated cost for the grant of a European patent with unitary patent will, after the 
transition period, amount to approximately €5,000 and is thus much lower than the costs currently 
occurring for the grant of a European patent. 
3.262.  The translation arrangements for European patents with unitary effect are based on the 
EPO's linguistic regime, under which a patent is granted in English, French or German; the claims 
are translated into the other two languages. Applic ants can, however, file patent applications in 
any official EU language. The translation arrangem ents will also provide for the reimbursement of 
translation costs. Unlike today, further costly translations would thus not be required. The 
translation arrangements are expected to lead to a considerable reduction of costs and benefit the 
users of the system, in particular SMEs. In addi tion, machine translation will be available for 
information purposes in all official EU languages. 
3.263.  The Unified Patent Court will have exclusive jurisdiction in infringement and revocation 
proceedings, both for "classical" European patents and European patents with unitary effect. This will ensure legal certainty through the uniform application of patent law. Multiple court cases on 
the same patent will thus be avoided and uni form jurisdiction guaranteed. Following the 
agreement reached by participating member St ates on outstanding issues on 28 June 2012
284, the 
location of the Central Division of the Court of Fi rst Instance of the Unified Patent Court will be 
Paris, with Munich and London hosting specialist se ctions. The Court of Appeal will be located in 
Luxemburg.  
3.264.  Both Spain and Italy have decided not to participate in the enhanced cooperation for the 
creation of unitary patent protection. In parallel, they have asked the CJEU to annul the above 
Council Decision authorising enhanced cooperation.285 In his opinion of 11 December 2012, the 
Advocate General dismissed the claims by Spain and Italy286, but the CJEU decision is still pending 
at the time of writing. That said, Italy has signed the Unified Patent Court Agreement.  
3.265.  The forthcoming introduction of the European patent with unitary effect has been generally 
welcomed by business as a useful means to ease access to patent protection, in particular for small and medium-sized enterprises. However, concerns have also been voiced, for example as regards possible forum shopping and the yet-to-be-determined court costs. In any event, a 
number of outstanding issues still need to be sett led, including the infrastructure of the patent 
registry and the courts. The Rules of Procedure of the Unified Patent Court will be finalized by a 
Preparatory Committee in 2013. 
3.266.  Issues related to the patenting of biotechnological inventions are often sensitive and 
complex. A good illustration is the question of patentability of inventions which involve work on human embryotic stem cells where the cultural and religious differences in EU member States 
would prohibit some from research into and use of such stem cells, whereas others are taking a 
more permissive approach. Against this back ground, the CJEU was asked to interpret the 
                                               
283 See European Commission document COM(2011) 215 final, 13 April 2011. Viewed at: http://eur-
lex.europa.eu/Result.do?T1=V5&T2=2011&T3= 215&RechType=RECH_naturel&Submit=Search . 
284 EPO Press Release, 29 June 2012. Viewed at: http://www.epo.org/news-
issues/news/2012/20120629.html . 
285 Joined cases C-274-11 and C-295-11 (Kingdom of Spain/Italian Republic v. Council of the European 
Union). 
286 Opinion of Advocate General Bot, delivered on 11 December 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62011CC0274:EN:HTML . WT/TPR/S/284 • European Union 
 
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  Biotechnology Directive 98/44/EC.287 In Oliver Brüstle v Greenpeace e.V., it ruled that a process in 
which a human embryo is used for purposes of scientific research and which leads to its destruction is, in principle, not patentable, thus prohibiting the patenting of a wide range of inventions based on human embryotic stem cells.
288 Under Directive 98/44/EC, the Commission 
was also requested to report annually on the de velopment and implications of patent law in 
biotechnology and genetic engineering. Two such re ports were issued in the past and a third is 
impending. Given the complexity of issues related to the interface between biotechnological 
inventions and IP law, the Commission decided to set up an expert group, composed of IP law 
practitioners and scientists, that will assist the Commission in its reporting requirements.289 Ethical 
issues will, however, continue to be dealt with  by the European Group on Ethics in Science and 
New Technologies. 
3.267.  Recognizing the risks of patent thickets (i.e. a "dense web of overlapping IPRs that a 
company must hack its way through in order to actually commercialize new technology"290) and 
patent ambushes (i.e. where a participant in a standard-setting structure withholds disclosure of 
his/her patent or patent applications until a standard is set and subsequently refuses to grant a 
licence for the patented technology included in the standard on fair, reasonable and non-discriminatory terms), in particular in high technology areas, the Commission suggested that the 
regulatory system be reviewed in order to foster pro-competitive licensing and patent pool 
arrangements, as well as technology transfer. For this purpose, it has announced its intention to consider measures to increase transparency and improve the treatment of IPRs in standardization 
procedures and to foster cooperation between patent offices and standard-setting organizations.
291  
3.3.5.3.2  Supplementary protection certificates 
3.268.  Although closely related to, and conferring the same rights as the basic patent, 
supplementary protection certificates (SPCs) have been described by the Commission as a 
sui generis  IP category that only applies after expiry of the basic patent.292 Making SPCs available 
aims to restore effective patent protection for certain regulated products; they are designed to compensate the right holder for the time it takes from the filing of a patent application to the 
marketing authorization, and the potentially negative impact resulting from the reduction of the 
effective period of market exclusivity to recove r R&D investment. SPCs are available for medicinal 
products (Regulation (EC) No. 469/2009
293) and plant-protection products (Regulation (EC) 
No. 1610/96294). Both regulations are motivated by the desire to incentivize further research into 
medicinal and plant protection products and to en sure that those products are developed in the 
EU. For this purpose, SPCs confer an additional period of market exclusivity of no more than five years to the right holder, provided that an ov erall maximum of 15 years of exclusivity on the 
market from the time of first marketing of the product concerned is not exceeded. Protection 
under an SPC is strictly confined to the product which obtained marketing authorization as a medicinal product in the first place. Article 36 of Regulation (EC) No. 1901/2006 provides for an 
additional six-month extension for compliance with new pediatric-related requirements.
295 
3.3.5.3.3  Plant varieties 3.269.  In the EU, breeders can seek protection of plant varieties either as a Community plant 
variety right under a sui generis  system, established by Council Regulation (EC) No. 2100/94
296, or 
                                               
287 OJEU L 213/13, 30 July 1998. 
288 Case C-34/10, CJEU judgement of 18 October 2011. Viewed at: 
http://curia.europa.eu/juris/document/document.jsf?text=&docid=111402&pageIndex=0&doclang=en&mode=
lst&dir=&occ=first&part=1&cid=2135020 . 
289 Commission Decision C(2012) 7686 final, 7 November 2012. Viewed at: 
http://ec.europa.eu/internal_market/indprop/docs/invent/dec_121107_biotechinventexpertgroup_en.pdf . 
290 Shapiro (2001). 
291 European Commission document COM(2012) 582 final, 10 October 2012. Viewed at: http://eur-
lex.europa.eu/Result.do?T1=V5&T2=2012&T3= 582&RechType=RECH_naturel&Submit=Search . 
292 See, for example, European Commission docume nt COM(94) 579 final, "Proposal for a Regulation 
concerning the creation of a supplementary protec tion certificate for plant protection products", 
9 December 1994. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:1994:0579:FIN:EN:PDF . 
293 OJEU L 152/1, 16 June 2009. 
294 OJEU L 198/30, 8 August 1996. 
295 OJEU L 378/1, 27 December 2006. 
296 OJEU L 227/1, 1 September 1994. WT/TPR/S/284 • European Union 
 
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  under national systems in 23 member States.297 Regulation (EC) No. 2100/94 sets out rules for 
the application, examination and grant of new plant variety rights that become effective in all EU member States through a single application process. The EU-wide system is administered by the Community Plant Variety Office (CPVO). It grants Community plant variety rights to breeders 
which are similar to patent rights, i.e. they entitle the right holder to prevent unauthorized third 
parties from undertaking certain acts based on a single title that is valid throughout the EU. In order to stimulate plant breeding, a breeder's exemption permits free access to protected varieties 
in order to stimulate the development and expl oitation of new varieties. The exercise of 
Community plant variety rights is also subject to certain exceptions and limitations motivated by public interest, including where they are necessary to preserve agricultural production or to supply 
the market. The general term of protection for all botanical genera and species is 25 years; in the 
case of varieties of vine and tree species, it extends to 30 years (Table A3.6).  
3.270.  As of 2013, the CPVO applies the followin g fees: €650 for an application, €1,160 to €2,500 
for a technical examination, €240 for taking over reports, as well as an annual fee of €300. The fee 
for an appeal is to €1,500. From 1995 to 2011, a total of more than 41,000 applications were 
received by the Community Plant Variety Office, of which almost 60% were in the ornamental 
sector. By 2012, more than 44,000 applications had been received and more than 20,000 titles 
were in force. A report evaluating the Community Plant Variety Acquis, released in April 2011
298, 
concluded that the system had achieved its initial objectives since it provided a uniform, harmonized and balanced system of protection at EU level. That said, a number of areas were identified in which the system could be further clarified and improved. Those include its interaction 
with plant-related patents under the Biotechnology Directive 98/44/EC, among others, because a 
breeder's exemption is unknown to the latter, an d the potential tensions between the system and 
Enforcement Directive 2004/48/EC regarding infringement procedures.  
3.3.5.3.4  Trademarks 
3.271.  In the EU, trademarks can be registered either as a Community trademark
299 (Table A3.6), 
or under national trademark systems. The main substantive provisions of the latter are 
harmonized by means of Directive 2008/95/EC300 (the Trademark Directive) and interpreted by the 
CJEU301, thus ensuring that an equivalent level of pr otection applies throughout all member States. 
The two regimes coexist and have different coverage and application requirements. 
3.272.  A link between the two systems is established through the concept of seniority, i.e. the 
possibility of claiming, in applying for the Community trademark, the seniority of the earlier 
trademark in the member State in or for which it was registered, preserving prior rights, even if 
the earlier trademark is not renewed. Another link is the concept of conversion, i.e. the possibility 
of converting a Community trademark application that was refused, or declared invalid or revoked, 
into a national trademark application in all member States in which the ground for refusal does not apply. The ensuing national trademark applications  will retain the filing date of the Community 
trademark application.  
3.273.  Businesses can register a trademark in each of the 27 EU member States, and at the same 
time a Community trademark. Opposition to a national trademark application can be filed based on a prior Community trademark. Registering a Community trademark may thus prevent a specific 
mark from being registered as a national trademark by a third party. If, on the other hand, a 
company chooses to register a trademark at national level and not as a Community trademark, the same sign could be registered by another company in another member State. Trademark 
infringement is dealt with by specialized national courts of first and second instance, or 
"Community trademark courts", based on Regulation (EC) No. 207/2009. 
3.274.  The Community trademark is valid througho ut the EU, and is registered and administered 
by the OHIM (Table A3.6). The time needed to  process applications for a Community trademark 
                                               
297 Cyprus, Greece, Luxemburg, and Malta do not have a national pl ant variety protection regime. 
298 GHK Consulting and ADAS UK (2011). 
299 Established by Council Regulation (EC) No. 207/2009 of 26 February 2009 (OJ L78/1, 
24 March 2009). 
300 OJ L299/25, 8 November 2009. 
301 According to some views expressed in literature, the CJEU jurisprudence has significantly relaxed the 
requirements to be met in order to enjoy trademark protection. See, for example, Senftleben (2011). WT/TPR/S/284 • European Union 
 
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  has been considerably reduced in recent years. In  2012, it took less than 25 weeks from reception 
of the application to registration in 99% of the cases.302 Since 2009, OHIM fees for the registration 
of an individual trademark of up to three classe s of goods and services amount to €1,050, or €900 
if the application is filed electronically. Renewal fees are €1,500 and €1,350, respectively. The 
basic fee for a collective mark is €1,800. The opposition fee is €350.303 
3.275.  In 2011, a comprehensive report was released that evaluated the overall functioning of the 
trademark system in the EU.304 It concluded that the basic features of the European trademark 
system, including the principle of coexistenc e between the Community trademark system and 
national systems, function well in practice. However, in order to further improve the functioning of the internal market, the process of harmonizing national trademark law should be continued by making the optional provisions of the Trademark Directive mandatory and by extending its scope 
to other areas of substantive law. 
3.276.  Taking into account the findings of the study and the feedback received from stakeholders, 
the Commission has announced its intention to submit proposals designed to review the 
Community Trademark Regulation and the Trademark Directive.
305 These proposals have been 
adopted by the Commission in March 2013.306 The objective is to modernize and adapt the 
trademark system both at the EU and national levels to make it more efficient, effective and 
consistent as a whole. 
3.3.5.3.5  Geographical indications  3.277.  According to the Commission, trade in products carrying a protected geographical 
indication (GI) is of significant economic relevance to the EU. For example, an estimated 
25%-30% of the EU's trade in processed agricultural products is covered by GIs, as well as 80% of 
total wine exports and nearly all spirits exports.
307 As regards bilateral relationships, GI protection 
is particularly relevant for the EU's trade: for example, in 2010, the total value of products 
protected by GIs and exported from the EU to the United States amounted to €3.4 billion, to both 
Switzerland and Singapore €800 million, and to Canada €700 million. As regards the EU's trade with China, exports of GI-protected products were more than €650 million in 2010, reflecting a 
400% increase in exports of wines and spirits to China between 2005 and 2010. 
3.278.  In the EU, there are three approaches for protecting geographical indications: as protected 
designations of origin (PDOs) or protected geographical indications (PGIs) for wine, spirits, and agricultural and foodstuff products (Table A3.6); as collective Community trademarks 
(Table A3.6); and through national appellation systems in EU member States.  
3.279.  At EU level, the key provisions for the protection of GIs in the form of PDOs or PGIs are 
laid down for wine in Regulation (EC) No. 1234/2007, as amended by Council Regulation (EC) 
491/2009, for spirits in Regulation (EC) No. 110/2008,  and for agricultural products and foodstuffs 
in Regulation (EU) No. 1151/2012
308, which establishes a unified framework for several quality 
schemes (PDOs and PGIs, traditional specialities guaranteed, and optional quality terms) by 
covering them in a single legal instrument. Its stated objectives include the creation of a more 
robust framework for the protection and promotion of quality agricultural products, the introduction of more coherent and clearer quality schemes and a shortening of the application process. The Regulation also attributes a more important role to producer groups.  
3.280.  Applications for registration of GIs of prod ucts originating in a geographic area in the EU 
are sent to the relevant member State which scrutinizes the application and initiates a national opposition procedure. If the member State consid ers that the application meets the requirements 
                                               
302 See the statistical data provided by OHIM  at OHMI online information. Viewed at: 
http://oami.europa.eu/ows/rw/resource/documents/QP LUS/serviceCharter/2012/timelinessservicestandards_2
012_en.pdf . 
303 See list of fees at OHIM online information. Viewed at: 
http://oami.europa.eu/ows/rw/pages/CTM/feesPayment/listFees.en.do . 
304 Max Planck Institute for Intellectual Property and Competition Law (2011). 
305 See European Commission document COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
306 European Commission documents COM(2013) 161 final and COM(2013) 162 final, 27 March 2013. 
307 See DG Agriculture and Rural Development (2012b). 
308 OJEU L 343/1, 14 December 2012. WT/TPR/S/284 • European Union 
 
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  for registration at EU level and no valid oppositi on has been received, it  may take a favourable 
decision and transmit the application to the European Commission. Member States may charge a fee to cover their costs. The Commission scrutinizes applications in order to check that they are justified and meet the conditions of the respective scheme.  
3.281.  If the Commission is satisfied with an application, it publishes the single document and 
reference to the product specification in the Official Journal . Within two (wine), three (agricultural 
products and foodstuffs) or six (spirits) months from the date of publication, a notice of opposition 
may be lodged. If no objections are raised within the deadline, the product is registered. In case of 
an opposition, a reasoned statement must be submitted, followed by a consultation process.  
3.282.  The registration system for and protection of GIs is also available for products from third 
countries. For GIs of products of non-EU origin, the application may be sent either directly, or 
through the authorities of the country where the ge ographical area is located, to the Commission. 
No fees are required for applications from third countries.
309  
3.283.  The average registration time for European and foreign GIs, including scrutiny, opposition 
procedures and procedures for the adoption of the final decision, was around three years under 
the previous legislative framework. It is expected  to become shorter with the implementation of 
the new time limits for scrutiny and opposition procedures under Regulation (EU) No. 1151/2012. 
3.284.  According to the Database of Origin and Registration (DOOR) for agricultural products and 
foodstuffs administered by the Commission, there are 14 third-country names among the 1,104 GIs registered in the EU (558 PDOs, 546 PGIs), including Café de Colombia and Darjeeling
310; 12 of which have been registered since 2011. DOOR is a transparency tool, but has 
no legal status. Registration with legal authority for PDOs and PGIs for agricultural products and 
foodstuffs is provided for by the Register of protected designations of origin and protected 
geographical indications (Article 11 of Regulation (EU) No. 1151/2012).  
3.285.  The wine register "E-Bacchus" is a database which includes the Register of designations of 
origin and geographical indications protected in  the EU under Regulation (EC) No. 1234/2007. It 
contains 1,310 PDOs and 570 PGIs for EU wine,311 as well as two PDOs for third-country wine, i.e. 
Vale dos Vinhedos (Brazil) and Napa Valley (Uni ted States)). It also lists more than 1,100 third 
country geographical indications and names of origin protected in the EU in accordance with bilateral agreements on trade in wine that the EU has concluded with a number of trading partners. The register for spirits GIs consists of Annex III of Regulation (EC) No. 110/2008. 
"E-spirit-Drinks", a database on GIs protected in the EU for spirits originating in member States 
and third countries, lists 334 names for spirits. Two third-country names (Ron de Guatemala (Guatemala), and Pisco (Peru)) are currently being processed for registration.
312 An application for 
Tequila (Mexico) was received in January 2013.  
3.286.  Given the significant importance of GIs for the EU's external trade, the Commission has 
requested that the inclusion of a satisfactory chapter on GI protection becomes a prerequisite for 
the conclusion of any new generation FTA.313 That said, a large number of EU and third-country 
GIs are already protected in third countries and in the EU through bilateral agreements that the EU 
has signed with its trading partners.314 Recent examples include the Agreement on the Protection 
                                               
309 WTO document WT/TPR/M/214/Add.1, 2 July 2009. 
310 DOOR online information. Viewed at: 
http://ec.europa.eu/agriculture/quality/door/list.ht ml;jsessionid=pL0hLqqLXhNmF QyFl1b24mY3t9dJQPflg3xbL2
YphGT4k6zdWn34!-370879141  [February 2013]. 
311 E-Bacchus database. Viewed at: http://ec.europa.eu/agriculture/markets/wine/e-
bacchus/index.cfm?event=pwelcome&language=EN  [January 2013]. 
312 European Commission online information. Viewed at: http://ec.europa.eu/agriculture/spirits/  
[January 2013]. 
313 DG Agriculture and Rura l Development (2012b). 
314 These include agreements with Albania (wine and spirits, 2006); Australia (wine, signed in 2008 and 
entered into force in 2010); Bosnia and Herzegovina (w ine, spirits and foodstuffs, 2008); Canada (wine and 
spirits, signed in 2003 and entered into force in June  2004); Chile (wine and spirits, 2002); Croatia (wine and 
spirits, 2001); former Yugoslav Republic of Macedonia (wine and spirits, 2001), Georgia (agricultural products 
and foodstuffs, signed in 2011 and entered into forc e in April 2012); Mexico (spirits, 1997); Moldova 
(agricultural products and foodstuffs, signed in 2012, entry into force pending); Montenegro (wine, spirits, and foodstuffs, 2008), Republic of Korea (wines, spirits, foodstuffs, signed in October 2010 and entered into force WT/TPR/S/284 • European Union 
 
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  of Designations of Origin and Geographical Indications for Agricultural Products and Foodstuffs315 
between the EU and Switzerland, which entered in to force in December 2012. It establishes a 
detailed framework for the promotion and protection of GIs and accords protection to a large number of existing GIs (800 from the EU and 22 fr om Switzerland) listed in Appendix 1 to the 
Agreement; GIs for wine and spirits have been protected by both Parties since 2002 under the 
bilateral Agricultural Agreement. The EU and China have also made progress bilaterally in ensuring the protection of GIs. Under the "ten-plus-ten project", initiated in 2007 and completed in 2012, 
both sides agreed to the protection of ten EU GIs for agricultural products and foodstuffs on the 
Chinese market, as well as the registration of ten Chinese GIs by the EU.
316 In addition, under the 
EU-China Project on the Protection of IPRs (I PR2, 2007-11) and its successor programme "IP - A 
Key to Sustainable Competitiveness" (2013-15), analytical work with respect to the legal 
framework for the protection of GIs in China is  supported. The EU and China have also launched 
negotiations on a bilateral agreement on GIs. Fu rthermore, a number of cooperation activities are 
being considered or carried out with other develo ping countries, for example, ECAP III with ASEAN 
countries. Under the EPA concluded with CARIFORUM, the establishment of a protection system for 
GIs by 2014 is supported by the EU. Similarly, in ongoing EPA negotiations with other trading 
partners, the EU has proposed its assistance to develop a GI system. In a similar vein, the 
Commission's Directorate General for Agriculture and Rural Development signed a Memorandum of 
Understanding with the African Regional Intellectual Property Organization on 
26 November 2012.317 It aims to enhance cooperation with a view to supporting the development 
of GIs.  
3.287.  Under the Community Trademark Regulation, GIs can be protected as Community 
collective trademarks.318 Marks that identify the geographic origin of a product may be registered, 
as long as they have not become generic in th e trade concerned. A collective trademark may be 
applied for by associations of manufacturers, produc ers, suppliers of services, or traders, and may 
be used only by members of such associations . However, this does not prevent the right of 
operators in the territory in which a corresponding GI originates to use the GI in accordance with 
the respective specification. Collective trademarks do not serve to identify the quality of a product. 
3.288.  GIs may also be protected and enforced through labelling rules, unfair competition law, 
customs law, trading standards, and other IPR syst ems applied in the EU and at national level in 
the member States. In 14 member States there are specific GI systems covering products that the 
EU system does not cover (such as handicrafts), and agricultural-product GIs that are pending 
registration in the EU register. For the latter, member States may provide transitional protection within their national territory. For wines and spirits, such transitional protection is not available. 
Once the agricultural-product GI is registered at EU level, the EU system provides legal protection 
for the name in the territory of the 27 member States. The EU has taken steps to increase the visibility of the EU scheme by requiring the EU  PDO/PGI symbols for agricultural products to 
appear on the labelling as from January 2016.
319 These labelling provisions are optional for 
third-country GIs registered in the EU. Moreover, an  optional PDO/PGI logo exists for wines. There 
is no logo for spirits.  
3.289.  Recognizing the fragmentation of the legal framework for the protection of non-agricultural 
GIs and the potentially negative impact on the functioning of the internal market, the Commission, 
following the announcement in its 2011 blueprint for IPRs, has entrusted a group of consultants to prepare a study that analyses the current legal framework, stakeholders' needs and the economic 
                                                                                                                                               
in July 2011); Serbia (wine, spirits, and foodstuffs: In terim Agreement on Trade and Trade Related Matters in 
force since 2010); and South Africa (wine and spirits, 2002); Switzerland (wines, spirits, and agricultural 
products, 2002). Although not specifically labelled as GI protection, the wine agreement concluded with the United States in 2006 establishes that names of orig in are to be protected on a reciprocal basis. 
315 The text of the agreement has been pu blished in OJEU L 297/3, 16 November 2011. 
316 European Commission Press Release IP/12/1297, 30 November 2012. Viewed at: 
http://europa.eu/rapid/press-release_IP-12-1297_en.htm . 
317 European Commission Administrative Memorandum  of Understanding on co-operation between the 
African Regional Intellectual Property Organization and the Directorate General for Agriculture and Rural 
Development of the European Commission. Viewed at: http://ec.europa.eu/agriculture/developing-
countries/gi/memorandum-aripo/text_en.pdf . 
318 WTO document WT/TPR/M/214/Add.1, p. 142, 2 July 2009. 
319 Articles 12(3) and 59 of Regulation (EU) No 1151/2012. WT/TPR/S/284 • European Union 
 
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  impact of regulating the protection at EU level.320 The report was submitted to the Commission in 
December 2012. Based on stakeholder consultations and an impact assessment to be prepared in 2013, the Commission will decide on the appropriate follow-up. 
3.3.5.3.6  Industrial designs 
3.290.  Since 2003, industrial designs can be regist ered in the EU as a Community design at the 
OHIM (Table A3.6) under Council Regulation (EC) No. 6/2002 of 12 December 2001
321. A 
Registered Community Design (RCD) is protected throughout the EU. Registration fees amount to 
€350; renewal fees range from €90 (first time ) to €180 (fourth time). By end 2012, about 
700,000 RCDs have been registered by OHIM, and about 75,000 new designs are applied for each year. Next to registered designs, Regulation (EC) No. 6/2002 also provides for protection of unregistered Community designs for a period of three years from the date of making the design 
available to the public in the EU. 
3.291.  Following the accession of the EC to the Geneva Act of the Hague Agreement concerning 
international registration of industrial designs, the EC can be designated under the Hague System 
since 2008. Consequently, in the absence of a notification of refusal by OHIM within six months or 
if any such refusal has been withdrawn, an international registration at WIPO has the same effect in the EU as an application for a registered Community design. In addition, with a single 
application, design protection may also be obta ined in the other Members of the Geneva Act. 
3.292.  Industrial designs can be registered under national design systems too. Directive 
98/71/EC
322 harmonized the main substantive provisions  of the national systems, thus ensuring 
the application of an equivalent level of protection throughout all EU member States. The 
Community system and national systems coexist, but have different coverage and application 
requirements. 
3.3.5.3.7  Undisclosed information 
3.293.  While views differ as to whether trade secrets are to be considered as a category of IPRs 
and their protection accordingly provided by differe nt types of legislation, there can be no doubt 
about the close relationship between trade secrets and IPRs. Given that Article 39 of the TRIPS 
Agreement specifically mandates the protection of  undisclosed information and that the European 
Commission addressed this matter in its 2011 blueprint for IPRs323, it is appropriate that this 
important area be included in this section.  
3.294.  Currently, the protection of trade secrets is not harmonized at EU level. Their protection is 
dealt with in national laws of the EU member States in a diverse manner which results in different 
levels of protection. Recognizing the need for protection against acts of dishonest misappropriation of know-how and other strategic business information, the European Commission has initiated 
work with a view to analysing the legal aspects and economic impact of trade secret infringements 
in order to assess whether those matters would be better dealt with at EU level.
324 For this 
purpose, a first study was commissioned by the Commission in 2011 to compare the current legal 
framework and practices in EU member States.325 It confirmed important differences in the way in 
which protection was provided under national juri sdictions. In addition, the Commission, in 2012, 
commissioned a second study on the economics of trade secrets and the implications for the Internal Market. An industry survey to gather empirical data was launched in October 2012.
326 
                                               
320 See Insight Consulting, oriGIn and REDD Press Release, "The economic potential of non-agricultural 
geographical indications in the European Unio n under scrutiny", 23 April 2012. Viewed at: 
http://www.ecta.org/IMG/pdf/press _release_non-agricultural_gis.pdf . 
321 OJEU L 3/1, 5 January 2002. 
322 OJEU L 289/28, 28 October 1998. 
323 See European Commission documents COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
324 See European Commission documents COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
325 Hogan Lovells International LPP (2010). 
326 More information on the survey is viewed at Eu ropean Commission online information. Viewed at: 
http://ec.europa.eu/internal_market/iprenforcement/trade_secrets/index_en.htm#maincontentSec1 . WT/TPR/S/284 • European Union 
 
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  3.295.  The requirement under Article 39.3 of the TRIPS Agreement to protect clinical test data 
under certain conditions forms an integral part of the section on the protection of undisclosed information. In the EU, Directive 2004/27/EC
327 provides for a regime of exclusivity periods of 
eight plus two plus one years during which generic manufacturers cannot rely on the data 
submitted by the originator company to the regulatory authorities, nor market the generic product. 
Accordingly, an application for an abridged authorization, under which the applicant has to demonstrate that the medicinal product is a generic of a reference medicinal product, but is not 
required to submit his own data, is only possible eight years after the first marketing approval has 
been granted in a member State or in the Comm unity. In addition, the generic medicinal product 
thus authorized can only be put on the market after ten years from the initial authorization of the reference product. This period is extended to a maximum of eleven years if, during the first eight 
years after the initial authorization, new therapeutic indications with a significant clinical benefit 
have been authorized. 
3.296.  The link between protection of clinical test data and access to such data has been 
prominently illustrated by a decision taken by the European Medicines Agency (EMA) in 
December 2010 when it adopted a new policy desi gned to implement the concept of public access 
to EMA documents.
328 Since then, access to 1.5 million pages of clinical trial data has been granted 
by the EMA. During the second phase of implementation, the EMA intends to proactively publish 
clinical trials data that applicants submit to the agency within the framework of the authorization process. The disclosure of such data is considered to be in the public interest as it allows independent researchers and other interested groups to screen the raw data and to assess for 
themselves the efficacy and potential side effect s of a product. The modalities of providing such 
proactive access to clinical trial data are under consideration. The new policy is expected to enter into force in January 2014.
329 
3.297.  Initially, the EMA had refused access to the data, arguing that disclosure would undermine 
the commercial interests of the owners of the data, referring, inter alia , to Article 39.3 of the 
TRIPS Agreement. The envisaged publication of clin ical trials data does not appear, however, to 
affect the protection of such data against unfair commercial use, which, in the case of the EU, is 
achieved through the above-described periods of data exclusivity.  
3.3.5.4  Enforcement 3.3.5.4.1  Legal basis at EU level 
3.298.  Enforcement of IPRs in the EU is base d on Directive 2004/48/EC on the Enforcement of 
IPRs (IPRED) and Directive 2001/29/EC on the Harmonisation of Certain Aspects of Copyright and Related Rights in the Information Society.
330 Enforcement at the EU borders is covered by Council 
Regulation (EC) No. 1383/2003 and implementing Commission Regulation (EC) No. 1891/2004.331  
3.299.  An overview of the main enforcement prov isions is provided in Table 3.15. The earlier 
responses provided by the EU to the TRIPS Co uncil's Checklist of Issues on Enforcement332 also 
provide some useful background information regarding the EU's framework for IPR enforcement.333 
However, this information dates back to 1997 and needs updating in order to reflect a number of important legislative changes during the past 16 years. 
                                               
327 Directive 2004/27/EC of 31 March 2004 amending Directive 2001/83/EC on the Community code 
relating to medicinal products for human use (OJ L136/34, 30 April 2004). 
328 European Medicine Agency (2010). 
329 See European Medicine Agency Press Release EMA/754763/2012, 23 November 2012. Viewed at: 
http://www.ema.europa.eu/docs/en_GB/document_library/Press_release/2012/11/WC500135088.pdf  . 
330 OJEU L 157/45, 30 April 2004; and OJEU L 167/10, 22 June 2001. 
331 OJEU L 196/7, 2 August 2003; and OJEU L 328/16, 30 October 2004. 
332 WTO document IP/C/5, 30 November 1995. 
333 WTO document IP/N/6/EEC/1, 13 February 1997. WT/TPR/S/284 • European Union 
 
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  Table 3.15 Overview of selected IP enforcement measures 
Matter Key elements Brief description or quote from 
the relevant provisions  Legal basis 
or source 
General 
procedures 
and remedies  Has a distinct judicial system 
been established for the 
enforcement of IPRs (i.e. are there specialized courts, or chambers within courts for patent litigation or other 
IPR-related law suits)? At EU level, there is no specific 
provision on the establishment of 
specialized judicial systems. This decision is left to member States Directive 
2004/48/EC 
on IPR Enforcement (IPRED) 
 Do judicial authorities have the 
authority to award injunctions 
against innocent infringers (i.e. 
those infringing without 
knowing or having reasonable 
grounds to know that their 
actions constitute infringement) 
or in the case of use by 
governments, or authorized by 
governments? Yes, injunctions may be issued 
against any infringer. The Directive 
only distinguishes between innocent 
infringers and those that knowingly 
or with reasonable grounds to know 
engaged in an infringing activity, for 
damages. There are no specific 
provisions on any "use by 
governments or authorized by 
governments" Article 11 of 
Directive 
2004/48/EC  
 Is it possible to recover 
damages and/or lost profits in 
case of IPR infringement? Yes Article 13 of 
Directive 
2004/48/EC 
 May the authorities order the 
removal from the channels of 
commerce or the destruction of 
(i) infringing goods and (ii) the 
materials/ instruments used to 
produce such goods? Yes Article 10 of 
Directive 
2004/48/EC 
 Are courts authorized to order 
the infringer to inform the right holder of the identity of third persons involved in the 
production and distribution of 
the infringing goods? Yes Article 8 of 
Directive 2004/48/EC 
 Do courts have the authority to 
order an applicant who has 
abused enforcement procedures 
to pay adequate compensation 
to the defendant? Yes, including provisional measures Articles 7(4) 
and 9(7) of 
Directive 
2004/48/EC 
Provisional measures  Under which circumstances and 
for what purposes may a judicial/ administrative authority authorize provisional 
measures in the area of 
intellectual property law?  Provisional measures are ordered by 
the competent authorities in order to prevent an imminent infringement of an IPR or to forbid the continuation 
of such an infringement Article 9(1) of 
Directive 2004/48/EC 
 After what time period are 
provisional measures revoked, 
or otherwise cease to have 
effect, if proceedings leading to 
a decision on the merits of the 
case have not been initiated? Provisional measures are to 
be revoked if the applicant 
does not initiate proceedings 
leading to a decision on the 
merits of the case within a 
reasonable period of time to 
be determined by the judicial 
authority ordering the 
measure, or, in the absence 
of such determination, within 
a period not exceeding 
20 working days or 
31 calendar days Article 9(5) of 
Directive 
2004/48/EC WT/TPR/S/284 • European Union 
 
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  Matter Key elements Brief description or quote from 
the relevant provisions  Legal basis 
or source 
Border 
measures  What types of goods may be 
subject to border enforcement 
procedures (e.g. goods 
infringing trademarks, copyrights, patents, GIs, etc.)?  Border measures apply to: 
(i) counterfeit goods, including any 
trademark symbol and packaging 
materials; (ii) pirated goods; and (iii) goods infringing a patent, a supplementary protection certificate, a national or Community plant variety right, designations of origin 
or geographical indications, or 
geographical designations Article 2 of 
Council 
Regulation 
(EC) No. 1383/2003 
 Under what circumstances may 
the competent authorities act 
upon their own initiative – ex 
officio  – to suspend the release 
of goods and, if they may do 
so, must the authorities notify 
the right holder? Ex officio  action is possible where 
the customs authorities have 
sufficient ground for suspecting that 
goods infringe an IPR. The right 
holder shall be informed in order to 
enable him to submit an application 
for action Article 4 of 
Council 
Regulation 
(EC) 
No. 1383/200
3 
 Under what circumstances may 
the authorities allow the re-exportation of infringing 
goods in an unaltered state or 
subject goods to a different customs procedure? Under no circumstances Article 16 of 
Council Regulation 
(EC) 
No. 1383/2003 
Criminal 
procedures  What infringements of 
intellectual property rights are 
considered criminal offences 
(e.g. wilful trademark 
counterfeiting and copyright 
piracy on a commercial scale; 
other IPRs; etc.)? EU legislation covers only civil and 
administrative measures. Criminal 
procedures fall within the 
competence of EU member States See Article 
2(3) of 
Directive 
2004/48/EC 
for the 
definition of 
its scope in 
respect of 
criminal 
procedures 
and penalties 
 What type of criminal sanctions 
may be imposed?   
 Do private persons have 
standing to initiate criminal 
proceedings?    
 Is there a specialized law 
enforcement unit for IPR crimes? If so please share any information on its size and 
operational structure.   
Source: WTO Secretariat, based on informat ion provided by the European Commission. 
3.3.5.4.2  IPR enforcement at the EU's external borders 
3.300.  At the external border of the EU, Customs authorities may suspend the release of or detain 
goods that are suspected of infringing or found to have infringed IPRs. In most cases, Customs 
authorities act upon applications from right holders. However, Customs may also act ex officio  if 
they have sufficient grounds for suspecting that g oods infringe an IPR. In such cases, they will 
notify the detention/suspension to the importer an d the right holder. The right holder must submit 
an application for action within three working days of receiving the notification. If no application is submitted within this period, the goods are released.
334 
3.301.  Results of Customs action are publis hed annually by the European Commission. In 
particular, the annual reports provide statistical information and data about Customs interventions 
                                               
334 WTO document WT/TPR/M/248/Add.1, p. 421, 31 August 2011; and Council Regulation (EC) 
No. 1383/2003 of 22 July 2003 concerning customs action  against goods suspected of infringing certain 
intellectual property rights and the measures to be taken against goods found to have infringed such rights . WT/TPR/S/284 • European Union 
 
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  which support the analysis of IPR infringements occurring in the EU. According to the latest 
report335, there were over 91,000 cases of goods be ing detained by Customs in 2011, which 
represents more than a 1,000% increase since 2001, due, among others, to internet sales. In total, almost 115 million articles were detained, amounting to a domestic retail value of over 
€1.27 billion (Table 3.16). Medicines accounted for 24% of the articles detained, followed by 
packaging materials (21%) and cigarettes (18%). Due to the increase of detentions in the field of medicines, the share of products potentially harmful to human health and safety has almost 
doubled since 2010, amounting to 28.6% in 2011.  
Table 3.16 Enforcement of intellectual property rights, 2009-11 
 2009 2010 2011 
Customs actions    
Applications by right holders 14,797 18,330 20,566 
Number of cases 43,572 79,112 91,254 
Number of articles  117,959,298 103,306,928 114,772,812 
 
Breakdown of cases in 2011  (%) 
IP right in relation to detained 
articles Trademark 97.00 
Patent 0.73 
Copyright/related right 1.12 
Design and model right 1.14 
Results Destruction of goods 77.69 
Court case initiated 12.49 
No action undertaken 4.48 
Pending case 2.3 
Original goods 3.03 
Settlement out of court 0.01 
Cases per procedure Imports 85.43 
Transit EU 8.98 
Transit 3.49 
Smuggling 0.82 
Warehouse 0.64 
Transhipment 0.33 
Export 0.31 
Re-export 0.01 
Top 4 categories of products  Cigarettes 19 
Other tobacco products 16 
Labels, tags, and emblems  13 
Medicines and other products 10 
Source:  European Commission (2012), Report on EU Customs Enforcement of Intellectual Property Rights: 
Results at the EU Border – 2011 . Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/customs/customs_controls/counterfeit_
piracy/statistics/2012_ipr_statistics_en.pdf  . 
3.302.  The close cooperation between Customs and th e private sector is illustrated by the steadily 
increasing number of applications for action subm itted by right holders to Customs, raising from 
2,888 in 2004 to 20,566 in 2011, when less than 3% of interventions by Customs were initiated 
ex officio . In 90% of the detentions, the goods were destroyed following either an agreement 
between the holder of the goods and the right holder  or the initiation of a court case by the right 
holder to determine the infringement. In 93% of the cases, Customs action began while the goods were under an import procedure; in 4%, goods we re discovered while in transit to the EU, and in 
1% in transit to a declared destination outside the EU.  
3.303.  In May 2010, Brazil and India both requested consultations with the EU and the 
Netherlands regarding the Customs treatment of me dicines in transit through EU ports, produced 
in India and destined for developing countries.
336 Individual consignments of medicines declared to 
be in transit were temporarily detained by certain EU member States' Customs authorities on 
grounds of alleged infringement of intellectual property rights, as provided for under Council 
                                               
335 DG Taxation and Customs Union (2012b). 
336 WTO documents WT/DS408/1 and WT/DS409/1, 19 May 2010. WT/TPR/S/284 • European Union 
 
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  Regulation (EC) No. 1383/2003 and the national law of the member State concerned. Following an 
understanding reached with the Government of India337, the European Commission, in 
February 2012, issued "Guidelines concerning the enforcement by EU Customs authorities of IPRs 
with regards to goods, in particular medicines, in transit through the EU".338 These guidelines 
clarified the application of Council Regulation No. 1383 and took account of the findings in a 
European Court of Justice judgment of 1 December 2011.339 In particular, the guidelines laid down 
the understanding that the mere fact that medicines are transiting through the EU territory and 
are subject to a patent rights in the EU "does no t in itself constitute enough grounds for customs 
authorities to suspect that those medicines are infringing patent rights." However, a substantial likelihood of diversion of such medicines onto th e EU market "may constitute enough grounds for 
customs authorities to suspect that the medicines at stake infringe patent rights" and justify the 
detention. Council Regulation (EC) No. 1383/2003 is currently being modified in order to further 
clarify the procedures so that additional certaint y is provided to operators and legitimate trade 
preserved (see paragraph 3.305 below.). 
3.304.  The EU Customs Action Plan to combat IPR infringements for 2009-2012
340 listed a number 
of targeted measures, including the review of existing IPR legislation, stronger cooperation with right holders, intensified international cooperation on IPR enforcement and awareness raising. The 
European Commission, in cooperation with EU  member States, submitted a report on the 
implementation of the Action Plan in October 20 12 and recommended the adoption of a new Action 
Plan.
341 The Council followed the Commission recommendation and, on 10 December 2012, 
adopted a Resolution which endorsed a new EU Customs Action Plan.342 It sets the following 
strategic objectives for the years 2013 to 2017: effectively implementing and monitoring new 
legislation; tackling major trends in trade of IPR-infringing goods, including throughout the international supply chain; and strengthening cooperation with the European Observatory and 
law-enforcement authorities. 
3.305.  Among the measures foreseen by the Action Plan 2009-2012 was the review of Council 
Regulation (EC) No. 1383/2003. As a follow-up,  the Commission submitted a proposal for a 
revised Regulation in 2011.
343 The draft Regulation aims to strengthen Customs enforcement of 
IPRs, by extending the scope to trade names, topographies of semiconductor models and utility models, and by including infringements resulting from parallel trade and devices to circumvent technological protection measures. It also targets a further streamlining and simplification of 
Customs procedures. Finally, the proposal seeks to establish legal clarity with respect to certain 
provisions in the current Regulation that gave raise to concerns regarding their impact on legitimate trade in generic medicines transiting th e EU. The proposal is expected to be adopted in 
the first half of 2013. 
3.3.5.4.3  IPR enforcement within the EU 3.306.  The EU has several Directives containing ru les applicable to the (online) enforcement of IP 
rights, such as Directive 2004/48 (the Enforcement Directive), which establishes general applicable 
rules regarding IPR enforcement, and Directive 2000/31 (E-commerce Directive), which establishes minimum applicable rules regarding the conditional exemption of liability for internet service providers (ISPs). Certain flexibilities are left to member States in implementing these 
provisions. For example, in many member States, ISPs cannot store IP addresses for the specific 
purpose of online copyright enforcement; exceptions include France.  
                                               
337 See the Government of India Press Release, 28 July 2011. Viewed at: 
http://pib.nic.in/newsite/erelease.aspx?relid=73554 . 
338 DG Taxation and Customs Union (2012a). 
339 Joined cases C-446/09 (Philips v LuchengMeijing) and C-495/09 (Nokia v Her Majesty's 
Commissioners of Revenue and Customs). 
340 Council Resolution of 16 March 2009 (OJ C 71/1, 25 March 2009). 
341 European Commission document SWD(2012) 356 final, 23 October 2012. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/customs/report_action_plan_en.pdf . 
342 Council Resolution on the EU Customs Action Plan to combat IPR infringements for the years 2013 to 
2017. Viewed at: http://ec.europa.eu/taxation_customs/resources/documents/customs/action_plan_en.pdf . 
343 European Commission document COM(2011) 285 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/common/legislation/proposals/customs/com(2011
)285_en.pdf ; the latest text as agreed by the Council's Permanent Representatives Committee on 
21 December 2012 can be viewed at Council of the European Union online in formation. Viewed at: 
http://register.consilium.europa.eu/pdf/en/13/st05/st05129.en13.pdf . WT/TPR/S/284 • European Union 
 
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  3.307.  Following a December 2010 Commission report on the application of 
Directive 2004/48/EC344, the Commission launched a public consultation on the findings of the 
report in preparation for a possible review of the Directive.345 According to a Commission summary 
of 8 July 2011 of the issues raised during the consultation346, diverse views were expressed as to 
whether the Directive needed to be adapted in order to effectively respond to challenges posed by 
the digital environment. Other topics covered included  the scope of the Directive, the application of 
injunctions to intermediaries, the right of information and privacy laws and the need to put 
dissuasive damages in place. Since 2011, the Commission is conducting an extensive public 
consultation on the civil enforcement of IPRs within the Internal Market, including the functioning of Directive 2004/48/EC.
347 A Commission Communication that presents conclusions and possible 
follow-up initiatives to improve the system is expected by end 2013. 
3.308.  Concerned by the damaging impact of sales of counterfeit products over the internet, the 
Commission played an instrumental role in setting up a dialogue between major private-sector stakeholders, including companies and associations, which led to the signing of a Memorandum of 
Understanding, on 4 May 2011, on the sale of counterfeit goods over the internet.
348 The MoU 
establishes a code of practice designed to effect ively combat the sale of such goods, including 
through notice and take-down procedures, and to strengthen collaboration between the 
signatories. A report on the functioning of the MoU which aims at developing good practices in 
order to tackle online counterfeiting will be adopted in April 2013. Signatories are considering 
extending the MoU to companies from other industry sectors, as well as broadening its scope of application. 
3.3.5.4.4  Measuring the impact of counterfeiting and piracy 
3.309.  To address the steady increase in count erfeiting and piracy, the Commission launched the 
European Observatory on Counterfeiting and Piracy in April 2009.
349 Its objectives are to gather 
and monitor information regarding counterfeiting and piracy on the EU's internal market, to 
exchange experiences and share best practices in combating counterfeiting and piracy, and to raise public awareness. Acknowledging that IPR enforcement requires close coordination between 
public administrations and businesses, the Observatory's membership is composed of 
representatives from the public and private sectors, including European and national associations actively engaged in combating counterfeiting and piracy. The Observatory was initially run by Commission staff and did not dispose of any sustainable structure to carry out the tasks it had 
been attributed. Through a Memorandum of Understanding of 15 April 2011, the Office for 
Harmonization in the Internal Market (OHIM) an d the European Commission therefore agreed on a 
set of temporary arrangements under which th e OHIM undertook to support and assist the 
Commission in the delivery of the tasks of the Observatory.
350 By means of Regulation (EU) 
No. 386/2012 of 19 April 2012351, the OHIM was then formally entrusted with tasks related to IPR 
                                               
344 European Commission document COM(2010) 779 final, 22 December 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0779:FIN:EN:PDF . 
345 Europa online information. Viewed at: 
http://ec.europa.eu/internal_market/consultations/2011/intellectual_property_rights_en.htm . 
346 European Commission document COM/2010/779 final, July 2011. Viewed at: 
http://ec.europa.eu/internal_market/consultations/do cs/2011/intellectual_property_rights/summary_report_re
plies_consultation_en.pdf . See also DG Internal Market and Services (2011). 
347 Information with respect to relevant public hear ings and consultations can be viewed at European 
Commission online information. Viewed at: http://ec.europa.eu/internal_market/iprenforcement/directive/index_en.htm . 
348 The Memorandum of Understanding of 4 May 2011 can be viewed at European Commission online 
information. Viewed at: http://ec.europa.eu/internal_market/iprenforcement/docs/memorandum_04052011_en.pdf . 
349 This initiative is based on the Council Resolution on a Comprehensive European Anti-counterfeiting 
and Anti-piracy Plan of 25 September 2008 (Council of  European Union online information. Viewed at: 
http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/intm/103037.pdf ) and the European 
Commission document COM(2009) 467 final, 11 September 2009. Viewed at: http://eur-
lex.europa.eu/lexuriserv/lexuriserv.do?uri=com:2009:0467:fin:en:pdf . Council Resolution of 1 March 2010 on 
the enforcement of IPR in the internal market (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2010:056: 0001:0004:en:pdf ) added further elements to 
the tasks of the Observatory. 
350 The Memorandum of Understanding of 15 April 2011 can be viewed at European Commission online 
information. Viewed at:: 
http://ec.europa.eu/internal_market/iprenforcement/docs/observatory/memo_understanding_en.pdf . 
351 OJ L 129/1, 16 May 2012. WT/TPR/S/284 • European Union 
 
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  enforcement. These include awareness raising, th e establishment of a transparent methodology for 
the collection of reliable data regarding IPR infringements and their economic value, the dissemination of best practices and the developm ent of training programmes for officials from 
member States. In order to carry out those tasks,  the OHIM has been asked to assemble at least 
once a year public and private sector representa tives of the Observatory, which has been renamed 
the European Observatory on Infringements of IPRs , thus reflecting the attribution of extended 
tasks. 
3.310.  As a contribution to developing evidence-based IP policies, the Commission is also 
considering the development of a methodology to better quantify the scope, scale and impact of 
IPR infringements on the EU's economy. A study, commissioned by the Directorate General for the Internal Market, found that there is currently no reliable or accepted methodology to estimate the 
extent of counterfeiting and piracy. It sugg ested possible objective and evidence-based 
approaches on how to define such a methodology so that the impact of infringements on sales can be more accurately measured.
352  
3.3.5.4.5  International cooperation in IPR enforcement 
3.311.  Based on the above-mentioned Regulation (EU) No. 386/2012, the OHIM has also been 
tasked to build strategies and develop tools to enforce IPRs through international cooperation with 
IP offices in third countries, as well as to develop technical-assistance programmes for third 
countries. 
3.312.  Taking into account a recent study353 assessing the implementation of the initial (2004) 
Strategy for the enforcement of intellectual property rights in third countries354, and input from a 
public consultation held in May 2011355, the Commission has submitted an indicative roadmap 
leading towards the adoption of a revised strategy for the protection and enforcement of intellectual property rights in third countries.
356 As well as fine-tuning the 2004 strategy, the 
revised approach is designed to better take into account the situation in developing countries and 
to enhance transparency and visibility. 
3.313.  The EU continues to fight against counterf eiting and piracy, both unilaterally, and through 
bilateral, regional, and multilateral agreements. Detailed IPR clauses, particularly on enforcement 
and border measures, are included in several trade agreements concluded or negotiated by the EU, such as the EU-Korea Free Trade Agreement. The EU's declared objective is to ensure a 
balanced approach, that aims to achieve a level of protection identical to that in the EU, while 
acknowledging that the level of development of its trading partners needs to be taken into 
account.
357 
3.314.  In parallel, enforcement and cooperation activities are being reinforced bilaterally, for 
example with Brazil, China, Russia, Thailand, and Uk raine, to tackle problems raised by EU right 
holders. These activities include structured IP dialogues, as well as a dedicated Action Plan with China focused on enhancing Customs cooperation in IPR enforcement, to reduce the amount of 
counterfeit and pirated goods traded bilaterally. Th e EU-China Action Plan has reportedly led to 
some progress.
358 
                                               
352 RAND Europe (2012). An overview of the main findings was presented at the eighth session of 
WIPO's Advisory Committee on Enforcement on 19-20 December 2012, see WIPO document WIPO/ACE/8/7, 29 October 2012. Viewed at: http://www.wipo.int/meetings/en/doc_details.jsp?doc_id=220162 . 
353 ADE (2010). 
354 OJ C 129/3, 26 May 2005. 
355 DG Trade (2011). 
356 Communication from the Commission on the Revised strategy for the protecti on and enforcement of 
intellectual property rights in third countries. Viewed at: http://ec.europa.eu/governance/impact/planned_ia/docs/2011_trade_005_intellectual_property_rights_ipr_co
mmunication_en.pdf . 
357 See European Commission documents COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
358 For a report on the EU-China Action Plan, see European Commission document SWD(2012) 356 final, 
23 October 2012. Viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/customs/report_action_plan_en.pdf . WT/TPR/S/284 • European Union 
 
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  3.315.  The EU also participated in the negotiations of a plurilateral agreement, the 
Anti-Counterfeiting Trade Agreement (ACTA). The ACTA  builds on existing international rules in the 
area of IP, in particular on the TRIPS Agreem ent, and is intended to address a number of 
enforcement issues where gaps were perceived in the international legal framework, including the 
establishment of a state-of-the-art legal fram ework of enforcement measures to effectively 
respond to the growing phenomena of counterfeiting and piracy in international trade; the promotion of sound enforcement practices; and th e fostering of cooperation among the parties to 
address the challenges of cross-border trade in counterfeit and pirated goods. The text of the 
Agreement was circulated as a TRIPS Council document in October 2011.
359 As of February 2013, 
the number of countries that have ratified the ACTA was not yet sufficient for it to enter into force. 
3.316.  According to the Commission, the ACTA is entirely in line with the EU acquis  and does not 
therefore require any changes to EU legislation.360 The Council approved the signing of the ACTA 
on behalf of the EU in a decision taken in December 2011.361 Subsequently, the ACTA was signed 
for the EU and 22 member States on 26 January 2012. However, the Agreement triggered an 
intense debate, particularly in the EU, about, amon g others, its impact on fundamental rights, such 
as freedom of speech, as well as possible restrictions regarding online content-sharing or access to medicines.
362 In May 2012, the Commission responded to the criticism by referring the ACTA to 
the CJEU for it to examine the Agreement's compatib ility with EU Treaties and, in particular, the 
EU Charter of Fundamental Rights.363 After overwhelming rejection of the ACTA by the European 
Parliament in early July 2012, the Commission, at its session on 19 December 2012, decided to withdraw its request for an opinion of the CJEU.
364  
 
                                               
359 WTO document IP/C/W/563, 17 October 2011. 
360 See European Commission documents COM(2011) 287 final, 24 May 2011. Viewed at: 
http://ec.europa.eu/internal_market/copyright/docs/ipr_strategy/COM_2011_287_en.pdf . 
361 Press Release 18708/11 of the Agriculture and Fisheries Council held in Brussels on 
15-16 December 2011. Viewed at: http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/agricult/127031.pdf . 
362 Martin (2012). 
363 See European Commission Press Release, "Overview of Commission’s Referral of ACTA to the CJEU". 
Viewed at: http://trade.ec.europa.eu/doclib/docs/2012/may/tradoc_149464.doc.pdf . 
364 See Secretariat General of the European Commissi on document PV(2012), 2028 final, "Minutes of 
the 2028th meeting of the Commission", 15 January 2013. Viewed at: 
http://ec.europa.eu/transparency/regdoc/rep/10061/2012/EN/10061-2012-2028-EN-F-0.Pdf . WT/TPR/S/284 • European Union 
 
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  4  DEVELOPMENTS IN SELECTED SECTORS 
4.1  Agriculture 4.1.1  Agriculture in the European Union 4.1.  Agriculture contributes about 1.3% to gross value added (GVA) in the EU and 5% to total 
employment.
1 Its importance varies considerably from one Member state to another: from less 
t h a n  1 %  o f  G V A  i n  B e l g i u m ,  G e r m a n y ,  L u x e m b o u r g ,  a n d  t h e  U n i t e d  K i n g d o m ,  t o  o v e r  5 %  i n  Bulgaria, Latvia, and Romania. The GVA for agricu lture has recovered strongly since 2009, when it 
had fallen to €164 billion after the start of the global financial crises in 2008, and reached a 
historic high of €194 billion in 2011. The recovery in  the GVA of agriculture at a time of economic 
difficulties in other areas has also reversed a historic trend of the declining importance of agriculture in the EU's economy as its contribution to GVA increased from 1.5% in 2009 to 1.7% 
in 2011. 
4.2.  The total value of agricultural output at basic prices was about €362 billion in 2011, the main 
products being milk, pigs, cattle, wheat, and forage  plants (Table 4.1). While the value of output 
has increased for most products over the past few years, the increase in value is mostly from 
higher prices rather than increased production. 
Table 4.1 Agriculture production values at  basic prices for selected products, 2006-11
 
(€ million) 
 2006 2007 2008 2009 2010 2011 
Value of agricultural goods 
output at basic prices 301,938  332,883  350,789  309,058  331,200 362,416  
of which:       
Milk 43,890  48,592  52,801  41,932  47,583 53,094  
Pigs 31,442  29,717  32,716  31,638  30,942 34,656  
Cattle 29,655  30,099  30,877  28,306  28,232 31,006  
Wheat and spelt 15,732  23,184  25,462  17,058  22,569 26,925  
Cauliflower, tomatoes, other 
fresh vegetables 28,424  29,631  29,403  27,132  29,407 26,867  
Forage plants 18,926  21,816  24,713  25,341  25,041 26,569  
Plants and flowers 18,546  19,883  20,365  19,566  20,449 20,409  
Poultry 13,438  15,934  17,525  16,535  17,105 19,503  
Wine 12,891  13,765  13,780  13,261  12,949 14,910  
Maize grain 7,204  9,701  9,843  7,457  9,840 13,618  
Source: Eurostat online  database. Viewed at: 
http://epp.eurostat.ec.europa.eu/po rtal/page/portal/eurostat/home/  [December 2012]. 
4.3.  The structure of agricultural production varies considerably among the Member states. While 
France is the biggest producer, the Czech Republic  has the biggest holdings on average while the 
Netherlands has the biggest value of output per holding (Table 4.2). 
Table 4.2 Selected indicators for farm structure in 2010  
 Total number 
of holdings 
(Number) Average area 
per holding 
(Hectares) Average work force 
employed per 
holding (Annual 
work units) Standard 
output (SO) 
per holding 
(€) Production 
value at 
basic prices 
(€ million) 
EU-27  12,014,570 14. 3 0.8 24,748 331,200 
Austria  150,170 19.2 0.8 39,151 5,678 
Belgium  42,850 31.7 1.4 169,143 7,579 
Bulgaria  370,490 12.1 1.1 6,847 3,234 
Cyprus  38,860 3.0 0.5  11,809 654 
Czech Republic  22,860 152.4 4.7 168,513 3,870 
Denmark  42,100 62.9 1.2 .. 9,114 
Estonia  19,610 48.0  1.3 30,320 596 
Finland  63,870 35.9 0.9 48,499 3,634 
                                               
1 Eurostat online statistics database: GVA for EU-27 at basic prices for 2011 is €11,282,595.4 million, 
GVA for EU-27 for the agricultural industry at basic prices for 2011 is €155,190.25 million. Viewed at: http://epp.eurostat.ec.europa.eu/ portal/page/portal/eurostat/home  [February 2013]. WT/TPR/S/284 • European Union 
 
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   Total number 
of holdings 
(Number) Average area 
per holding 
(Hectares) Average work force 
employed per 
holding (Annual 
work units) Standard 
output (SO) 
per holding 
(€) Production 
value at 
basic prices 
(€ million) 
France  516,100 53.9  1.5  98,301 62,378 
Germany  299,130 55.8 1.8 138,716 44,094 
Greece  723,010 4.8  0.6 9,267 9,521 
Hungary  576,810 8.1 0.7 9,086 5,653 
Ireland  139,890 35.7 1.2 30,722 5,382 
Italy  1,620,880 7.9  0.6 30,514 38,263 
Latvia  83,390 21.5 1.0  9,320 858 
Lithuania  199,910 13.7 0.7  7,635 1,873 
Luxembourg  2,200 59.6 1.7 122,072 299 
Malta  12,530 0.9 0.4 7,653 119 
Netherlands  72,320 25.9 2.2 261,753 21,566 
Poland  1,506,620 9.6 1.3 12,602 19,157 
Portugal  305,270 12.0 1.2 15,199 6,037 
Romania  3,859,040 3.4 0.4 2,700 13,960 
Slovakia  24,460 77.5 2.3 70,769 1,673 
Slovenia  74,650 6.5 1.0 12,233 1,089 
Spain  989,800 24.0  0.9  34,525 38,825 
Sweden  71,090 43.1 0.8 52,515 4,633 
United Kingdom  186,660 84.0 1.4 104,754 21,459 
.. Not available. 
Source:  Eurostat online  database. Viewed at: 
http://epp.eurostat.ec.europa.eu/ portal/page/portal/eurostat/home  [December 2012]. 
4.1.2  Trade 
4.4.  The EU is the biggest importer of agricultural products (WTO definition)2 in the world with 
imports recovering rapidly from a fall in 2009 to reach a new high of US$135 billion in 2011. It is also one of the biggest exporters in the world of agricultural products with US$130 billion of 
agricultural exports in 2011 (Chart 4.1 and Tables 4.3 and 4.4). In most years the EU has a deficit 
in agricultural trade, but in 2010 it had a surplus of about US$6.5 billion as exports recovered more quickly from the decline in trade seen in 2009 before the deficit reappeared in 2011. 
Chart 4.1 Exports and imports of agriculture products, 2004-11 
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%
020406080100120140160180200
2004 2005 2006 2007 2008 2009 2010 2011Exports of agricultural products Imports of agricultural products
Exports of agricultural products as a % of total exports Imports of agricultural products as a % of total imports(% of total trade) (US $ billion)
 
Source: UNSD Comtrade. 
                                               
2 For the purposes of this section of the Trade Policy Report, the definition of agriculture product used is 
that set out in Annex 1 of the Agreement on Agriculture where fish and fish products are taken to include 
HS Headings 020840, 03, 051191, 1504, 1603, 1604, 1605, and 230120. Fisheries are addressed in section 4.2 below. WT/TPR/S/284 • European Union 
 
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  Table 4.3 Imports of selected agricultural products, 2005-11  
HS 
2002   2005 2006 2007 2008 2009 2010 2011 
 Total imports 
of agricultural products US$ million 79,064
 85,123  105,808  126,692  105,888 110,634 134,575  
0901 Coffee '000 tonnes 2,531 2,683  2,752 2,765 2,717 2,789 2,774 
US$ million 4,649 5,490  6,664 8,247 7,338 8,750 13,112 
2304 Oil-cake  '000 tonnes 22,268 22,391  23,551 22,852 20,706 21,585 20,877 
US$ million 5,100 5,052  6,738 9,709 8,497 8,457 8,938 
1201 Soya beans '000 tonnes 14,432 14,075  15,218 14,425 12,903 13,469 12,149 
US$ million 3,790 3,647  5,243 7,530 5,671 5,945 6,586 
1801 Cocoa beans '000 tonnes 1,409 1,335  1,459 1,453 1,503 1,375 1,555 
US$ million 2,332 2,267  2,882 3,576 4,320 4,535 5,145 
1511 Palm oil '000 tonnes 4,028 4,272  4,408 4,555 5,351 5,438 4,639 
US$ million 1,786 2,024  2,901 4,389 3,716 4,206 5,034 
0803 Bananas '000 tonnes 3,983 4,453  4,763 4,925 4,592 4,601 4,712 
US$ million 3,109 3,217  3,770 4,338 3,850 3,705 3,972 
2204 Wine of fresh 
grapes '000 tonnes 1,226 1,227  1,331 1,272 1,311 1,373 1,427 
US$ million 2,973 3,040  3,724 3,621 3,254 3,140 3,330 
1701 Sugar '000 tonnes 3,175 3,269  3,062 3,306 3,063 3,105 4,413 
US$ million 1,736 1,886  1,886 2,112 1,783 1,699 3,299 
0802 Other nuts, 
fresh or dried '000 tonnes 438 460  487 504 501 494 506 
US$ million 2,716 2,711  2,754 2,837 2,450 2,827 3,257 
2401 Unmanufactured 
tobacco '000 tonnes 572 564  621 597 613 597 630 
US$ million 2,146 2,159  2,501 2,433 2,771 2,875 3,216 
Source:  UNSD Comtrade. 
Table 4.4 Exports of selected  agricultural products, 2005-11  
HS 
2002   2005 2006 2007 2008 2009 2010 2011 
 Total exports of 
agricultural products US$ million  75,625
 84,956  98,128  114,974  103,095 117,132 129,863  
2208 Alcohol strength 
less than 80 % 
vol '000 tonnes 1,010  1,107  1,155  1,122  1,039 1,183 1,376  
US$ million  6,971  8,061  9,098  9,154  7,991 9,378 10,679  
2204 Wine of fresh 
grapes 000 tonnes 1,509  1,839  1,893  1,799  1,665 2,085 2,331  
US$ million  5,857  6,957  8,272  9,205  7,535 8,913 10,231  
1001 Wheat and meslin '000 tonnes 10,639  13,978  8,448  18,185  20,603 22,285 17,488  
US$ million  1,554  2,204  2,182  6,157  4,628 5,048 5,361  
2106 Food 
preparations, nes '000 tonnes 753 808 855 868 919 936 1,027  
US$ million  3,235  3,746  4,346  4,725  4,750 4,676 5,115  
0203 Meat of swine '000 tonnes 793 901 907 1,230  1,008 1,260 1,588  
US$ million  2,217  2,585  2,738  3,697  2,896 3,461 4,373  
0406 Cheese and curd '000 tonnes 551 587 596 555 577 676 682 
US$ million  2,525  2,785  3,347  3,781  3,301 3,948 4,051  
1901 Malt extract '000 tonnes 620 638 686 701 726 818 942 
US$ million  1,764  1,980  2,537  3,000  2,902 3,282 3,853  
0402 Milk, cream 
concentrated or 
with added sugar '000 tonnes 882 730 798 887 916 1,070 1,154  
US$ million  2,057  1,758  2,736  3,445  2,350 3,393 3,804  
1806 Chocolate '000 tonnes 388 515 461 476 442 477 589 
US$ million  1,649  2,034  2,529  2,848  2,633 2,913 3,379  
2402 Cigars, 
cigarettes, etc. '000 tonnes 133 132 130 168 175 181 205 
US$ million  1,784  1,858  1,978  2,465  2,404 2,575 2,968  
Source:  UNSD Comtrade. 
4.5.  Trade in agriculture products is disperse d among many products although the main imports 
tend to be of raw products for processing while the main exports tend to be processed products. 
The most notable trend in trade in the 2005 to 2011 period has been that the value of trade in many agricultural goods has increased at a much fa ster rate than the quantity: for example, in the 
2005-11 period, imports of coffee (HS0901) were fair ly constant at about 2.7 million tonnes, but 
the value of imports increased from US$4.6 billion  to US$13.1 billion while imports of soya beans 
(HS1201) declined from 14.4 millio n tonnes to 12.1 million tonnes while the value increased from 
US$3.8 billion to US$6.6 billion (Table 4.3).  WT/TPR/S/284 • European Union 
 
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  4.1.3  Agriculture policies 
4.6.  In 2007, the European Agricultural Guidan ce and Guarantee Fund (EAGGF) was replaced by 
two separate funds:  
 the European Agricultural Guarantee Fund (EAGF) that covers Pillar I which includes market 
measures and direct payments, in particular the Single Payment Scheme and the Single Area Payment Scheme; and  
 the European Agricultural Fund for Rural Development (EAFRD) that covers Pillar II which 
includes measures aimed at addressing challenges faced by the EU's rural areas, such as 
assistance to less-favoured areas, investment aids for agriculture and forestry, and payments under some environmental programmes. 
4.7.  Over the past decades, the CAP has been substantially reformed, including the Health Check 
in 2008 which continued the direction of reforms of the Mid-Term Review that was agreed in 2003. However, over the past two years, there have not been any significant changes to the Common Agricultural Policy although implementation of the reforms has continued. As a result of these 
reforms and relatively high international prices, the level of support provided to agricultural 
producers has continued to decline, as measured by both the Producer Support Estimate and the Aggregate Measurement of Support (see section 4.1.4).  
4.8.  It is expected that further reforms of th e CAP will be decided in 2013 for implementation in 
2014. In April 2010, the Commissioner for Agriculture and Rural Development launched a public debate on the future of the CAP and, in Octo ber 2011, the Commission presented a set of legal 
proposals and an impact assessment for further reforms.
3 Currently, the proposals of the 
Commission are being discussed in the inter-institutional process with the European Parliament and the Council. According to the Commission, post-2013 reforms are expected to continue the direction towards market orientation of policy while decoupled direct payments will remain the 
core of CAP spending. However, the reform post- 2013, like earlier reforms, will not directly 
address market access conditions into the EU market, and tariffs, tariff quotas and the Special Agricultural Safeguard will not be affected.  
4.1.3.1  Domestic support  
4.9.  The main support to agricultural producers continues to be provided through direct payments 
decoupled from production and prices (Table 4.5). For the EU-15 member States
4 along with Malta 
and Slovenia, the Single Payment Scheme applie s, under which each member State can provide 
decoupled direct payments to farmers based on a reference period (generally payments received during the 2000-02 reference period). The support under the Single Payment Scheme can be applied either in accordance with a historical model or a regional model, or a hybrid of the two.
5 
Other member States6 apply the Single Area Payment Scheme under which each hectare of eligible 
land qualifies for the direct payment. From en d-2012, the possibility to grant direct payments 
linked to production has been further restricted so that only suckler cows, sheep and goats, and 
cotton are eligible (where 35% of the cotton component of the Single Payment Scheme remains 
coupled to production). 
4.10.  Under Article 69 of Council Regulation (EC) No. 73/2009 each member State may reserve 
up to 10% of the total amount available for direct payments to fund support for quality, 
marketing, environment, or risk management, or to assist farmers in disadvantaged areas, or types of farming in the dairy, rice, bovine meat, or sheep meat and goat meat sectors.
7 Under the 
                                               
3 European Commission online information. Viewed at: http://ec.europa.eu/ag riculture/cap-post-
2013/index_en.htm  [October 2012]. 
4 Austria, Belgium, Denmark, Fi nland, France, Germany, Greece,  Ireland, Italy, Luxembourg, 
Netherlands, Portugal, Spain, Sweden, and United Kingdom. 
5 European Commission online information. Viewed at: http://ec.europa.eu/agriculture/direct-
support/index_en.htm . 
6 Lithuania, Latvia, Estonia, Poland, Hungary, the Czech Republic, the Slovak Republic, Cyprus, 
Romania, and Bulgaria. 
7 Article 68 of Council Regulation (EC) No 73/2009, 19 January 2009, which replaced Article 69 of EC 
Regulation (EC) No. 1782/2003. WT/TPR/S/284 • European Union 
 
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  same provision, the amount of coupled aid provided  under specific support is limited to 3.5% of 
the national envelope for direct aid. 
Table 4.5 Direct payments to agricult ural producers in the EU, 2005/06-2009/10  
(€ million) 
 2005/06  2006/07  2007/08  2008/09 2009/10  
Decoupled payments      
Single payment scheme, separate 
sugar payments 14,734 30,672 31,346 31,894 31,482 
Single area payment scheme 1,937 2,280 3,182 3,752 4,482 
Total decoupled direct payments  16,671 32,952 34,428 35,646 35,564 
Other direct aids      
Cereals, oilseeds, protein crops, grass 
silage and set aside (including durum 
wheat, seeds, rice) 8,064 2,185 1,882 1,839 1,759 
Cotton 0 255 248 217 222 
Protein crops, olives, hops, legumes, 
energy crops 125 186 223 192 228 
Fruits and vegetables 0 0 0 301 317 
Bananas 0 0 277 278 275 
Beef, suckler cows 2,662 1,610 1,703 1,694 1,674 
Sheep and goats 942 398 404 397 415 
Dairy payments 1,454 641 4 3 0 
Article 69 specific supports, not 
decoupled 199 423 427 427 434 
Source:  WTO notifications.  
4.1.3.1.1  Rural development 
4.11.  The legal framework for each member State's rural development policy, which includes the 
policy measures they can take, was established in 2005 for the period 2007 to 2013.8 
Rural-development policy is based on three "thematic axes": improving competitiveness; improving the environment; and encouraging diversification and improving the quality of life in 
rural areas. In addition, some of the funding s h o u l d  b e  u s e d  t o  s u p p o r t  " L e a d e r "  c o m m u n i t y  
projects which are projects run by local organizations to address specific local problems. All national strategy plans had been agreed by end-20 08 with funding from national sources (average 
40%) and the EAFRD. The total value of payments in 2011 on rural development from the EU 
budget was €11.5 billion, most of which was under the EAFRD. EU budgetary spending on agri-environmental measures, which are part of rural development, increased under the 2007-13 strategy (after a relatively slow start in 2007) and reached €3 billion in 2010 with an 
additional €2 billion from member States' budgets.
9 
4.1.3.1.2  Internal market support measures   
4.12.  For the purposes of this section, internal market support measures are defined as those that 
work inside the customs territory of the EU to increase prices through reduced production and 
supply control measures, or by encouraging consumption. Border measures, which can also lead to positive transfers to producers through higher prices, are dealt with under section 4.1.3.1.5 on 
export subsidies and section 4.1.3.1.6 on market  access. In the EU, internal market support 
measures have included public intervention, aids  to private storage, production quotas, market 
withdrawals, and consumer subsidies. 
4.13.  Historically, public intervention was one of the main tools used to maintain domestic prices 
in the EU, but in recent years the use of interventi on has greatly declined (Table 4.6) as, according 
to the Commission, it has become to a genuine safety net. Since the start of the 2001/02 marketing year, the intervention price for common wheat, durum wheat, maize, barley, and 
sorghum has been €101.31 per tonne; for paddy rice the intervention price has been €150 per 
                                               
8 Council Regulation (EC) No. 1698/2005, 20 September 2005 and Council Decision 2006/144/EC, 
20 February 2006. 
9 DG Agriculture and Rural Development (2011). WT/TPR/S/284 • European Union 
 
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  tonne since the start of the 2004/05 marketing year. Buying at the intervention price is limited to 
3 million tonnes per year for common wheat and zero tonnes for durum wheat, maize, barley, sorghum and paddy rice. However, there are provisions for purchases beyond these ceilings if the "market situation and, in particular, the development of market prices, so requires."
10 In such 
cases buying-in would take place by tendering at a price not higher than the intervention price.  
Table 4.6 Intervention and private storage aids in the EU, 2007/08 to 2011/12  
Marketing year  2007/08 2008/09 2009/10 2010/11 2011/12 
Wheat             
Intervention price €/tonne 101.31 101.31 101.31 101.31 101.31 
Purchases tonnes 0 81,435 268,555 0 0 
Sales tonnes 172,147 572 23,806 231,866 38,946 
Barley             
Intervention price €/tonne 101.31 101.31 101.31 101.31 101.31 
Purchases tonnes 0 930,222 5.606.460 0 0 
Sales tonnes 17,662 0 659.578 4,982,192 398,623 
Maize             
Intervention price €/tonne 101.31 101.31 101.31 101.31 101.31 
Purchases tonnes 0 555,467 0 0 0 
Sales tonnes 2,204,677 52,305 354.243 214.586 0 
Sugar             
Reference price 
white sugar €/tonne 632.00 541.50 404.40 404.40 404.40 
Purchases   0 0 0 0 0 
Sales   270,000 290,000 35,000 0 0 
Private storage 
aids (entry)   0 0 0 0 0 
Calendar year   2008 2009 2010 2011 2012 
Butter             
Intervention price €/tonne 2,217.51 2,217.51 2,217.51 2,217.51 2,217.51 
Purchases tonnes 0 82,000 0 0 0 
Sales tonnes 0 5,000 75,000 1,500 0 
Private storage 
aids (entry)   160,000 136,000 97,000 104,000 131,000 
Skimmed milk 
powder             
Intervention price €/tonne 1,746.90 1,698.00 1,698.00 1,698.00 1,698,00 
Purchases tonnes 0 274,000 0 0 0 
Sales tonnes 0 14,000 65,000 145,000 50,000 
Olive oil             
Private storage 
aid (entry) tonnes   110,000   100,000 200,000 
Beef             
Intervention 
trigger price €/tonne 
2weeks 1,560.00 1,560.00 1,560.00 1,560.00 1,560.00 
Public 
intervention   0 0 0 0 0 
Private storage 
aid (entry)   0 0 0 0 0 
Pig meat             
Purchases private 
storage aid tonnes 98,919 2,161 0 141,023 0 
Sheep and goat 
meat             
Private storage 
aid (entry) tonnes  0 0 0 0 0 
Source:  European Commission. 
4.14.  Since July 2007, the price at which butte r may be bought into public intervention has 
remained at €221.75 per 100 kg for butter (i.e. at 90% of the reference price of €246.39 per 
100 kg) for up to 30,000 tonnes and for skimmed milk powder at €169.80 per 100 kg for up to 
109,000 tonnes. 
                                               
10 Council Regulation (EC) No. 1234/2007, Article 13(3). WT/TPR/S/284 • European Union 
 
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  4.15.  For beef and veal, the Commission may decide to open intervention when the average 
market price in a member State or region falls below €1,560 per tonne for two consecutive weeks. However, intervention has not been opened since 1999. 
4.16.  In addition to purchases into public in tervention, the Commission may also open Private 
Storage Aids (PSA) for butter, white sugar, olive oil, beef, pig meat, sheep meat, and goat meat. 
Under the PSA schemes, the products remain in private ownership and the owner receives aid to cover the cost of storage for periods specified in the contracts before they can be released onto 
the market. In 2011, PSAs were made available for butter, olive oil and pig meat and, in 2012, for 
butter and olive oil (Table 4.6).  
4.17.  Under the Health Check decided in November  2008, milk quotas were increased by 2% in 
2008 and are subject to 1% annual increases from 2009 to 2013 (except for Italy where there was 
a single 5% increase in 2009). In addition, an adjustment in the fat correction factor resulted in a 
further de facto 1% increase in quotas.
11 The goal is to achieve a smooth phasing-out of the milk 
quota system by 2015. The total quota for the EU -27 in marketing year 2011/12 was 151.1 million 
tonnes. Although production in the EU as a wh ole has been below quota, five Member states 
exceeded their quotas in 2010/11 and six in 2011/12. Producers that exceed their quotas are required to pay a levy of €27.83 per 100kg of production in excess of their quota to the extent 
they contributed to the member State's overshoot.
12 
4.18.  Under the Milk Package agreed in December 2011 and formalized in March 2012, member 
States may make it compulsory for farmers and processors to have written contracts. The Package also allows farmers to negotiate collectively with processors with limits on the amount of milk 
subject to such negotiations: the limits are 3.5% of  EU production, or 33% of national production 
in the member State, or 45% for a member State with production of less than 500,000 tonnes. The Package also allows member States to regulate the supply of cheeses with protected 
designations of origin (PDO) or protected geographical indications (PGI).
13  
4.19.  The European School Milk Scheme remains in operation. Under the Scheme, member States 
are free to choose from a variety of dairy pr oducts the ones they wish to provide to 
schoolchildren.14 In the school year 2010/11, €64 million was provided by the EU for the Scheme 
with no obligation for member States to contribute. Since the school year 2009/10, a similar scheme has operated for fruits and vegetables: the School Fruit Scheme.
15 In 2011, €57 million 
was provided by the EU for the latter; the scheme was also partly financed by each member State 
at rates that varied from 50% to 25%. In addition, support is available for free distribution of fruit 
and vegetables to schools, hospitals, and charities. 
4.20.  Support in the fruit and vegetables sector is structured through Producer Organizations, 
which may set up a fund to finance operationa l programmes approved by member States. The 
member States are required to establish national strategies, which define the objectives of the programmes (based on a list of objectives define d by the EU regime for fruit and vegetables) and 
the nature of the actions that are eligible for support under these programmes. Recognition of a 
producer organization is based on a number of factors including: that membership is voluntary; that the organization contributes towards the aims of the EU regime for fruit and vegetables; and based on evidence of its ability to provide services to its members. Among the eligible actions that 
producer organizations may choose to implement under operational programmes are: crisis 
prevention and management measures such as market withdrawal (where products are withdrawn from the market); non-harvesting (where no commercial produce is taken); and green harvesting 
(total harvesting of non-marketable products before normal harvesting). Crisis prevention and 
management also include promotion and communication, training, harvest insurance, and support 
                                               
11 European Commission document COM(2010) 727 final, 8 December 2010. Viewed at: 
http://ec.europa.eu/agriculture/milk/quota-report/com-2010-727_en.pdf . 
12 European Commission Press Release, "Quota year 2011/12: Six Member states have exceeded their 
milk quota", Ref. IP/12/1116, 18 October 2012. 
13 Regulation (EU) No. 261/2012, Commission Implementing Regulation (EU) No. 551/2012, and 
Commission Delegated Regulation (EU) No. 880/2012; and European Commission online information. Viewed at: http://ec.europa.eu/agriculture/milk/milk-package/index_en.htm  [February 2012]. 
14 Council Regulation (EC) No. 1234/2007 and Commission Regulation (EC) No. 657/2008. 
15 Council Regulation (EC) No. 1234/2007, Commission Regulation (EC) No. 288/2009, and Commission 
Implementing Decision of 29 March 2012. WT/TPR/S/284 • European Union 
 
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  for the administrative cost of setting up mutual funds.16 In addition, they may also implement 
measures related to planning of production, im provement and maintenance of product quality, 
marketing and promotion, training and environmenta l actions. Producer organizations' operational 
funds are 50% financed from the EU budget (in some cases 60%). In 2011, the EU provided a 
total of over €1 billion in support of the fruit and vegetables sector, including €786 million for 
operational funds for producer organizations and €195 million for assistance to producer groups for preliminary recognition as producer organizations. 
4.21.  In June 2012, the Commissioner for Agricu lture and Rural Development presented an action 
plan for the olive oil sector which focused on: quality and control, through measures to enhance the public image of European olive oil and to im prove consumer protection and information; and 
strengthening the industry, by making use of all the opportunities offered by CAP reform and by 
engaging all stakeholders.
17 Most support to the sector is currently provided through quality 
improvement measures with €44 million provided by the EU in 2011. 
4.22.  Production quotas continue to apply to the sugar sector with a total EU quota of 
13.3 million tonnes of sugar divided among 19 member States. However, unlike milk production, 
the quota can be exceeded without penalties, prov ided the excess is exported, sold for non-food 
uses (such as biofuels) or counted against the following year's quota. Sugar produced in excess of 
the quota does not qualify for the €26.29 per tonne of sugar beet minimum price. There are also 
reference prices for sugar, set at €404.40 per tonne for white sugar and €335.20 per tonne for raw sugar, and the Commission may allow Private Storage Aids if prices fall below 85% of the reference price. The reference price for white sugar has been reduced over the past few years: 
from €632 per tonne to €541.50 per tonne in 2008, and then to the current level of €404.40 per 
tonne in 2009. Public intervention for sugar ended in 2010. 
4.1.3.2  Export subsidies 
4.23.  The use of export subsidies in the EU cont inued to decline although they were still being 
used in 2011 for some products such as poultry meat, eggs, beef and veal, processed pig meat products and some Non-Annex I products (prepare d foods containing eggs). In the absence of 
notifications to the WTO for marketing years 201 0/11 or 2011/12, Table 4.7 shows the payments 
from the EU budget on export subsidies by budget year.
18  
Table 4.7 Export refunds for agricu ltural products in the EU, 2007-11 
(€ million) 
 Outturn 
2007 Outturn 
2008 Outturn 
2009 Outturn 
2010 Outturn 
2011 
Cereals 41.80 9.70 0.85 -0.37 0.05 
Rice 0.05 0.00 -0.03 0.00 0.01 
Sugar 509.34 501.34 179.11 9.80 1.48 
Fruits and vegetables 21.74 18.60 5.16 0.39 0.05 
Wine 14.03 14.54 7.34 0.00 0.00 
Milk and milk products 513.38 28.83 181.10 186.44 5.42 
Beef and veal 31.72 23.10 21.48 16.67 46.14 
Live bovines 14.53 10.05 10.16 8.68 9.64 
Pig meat 20.33 99.04 59.95 18.76 19.12 
Eggs 4.80 4.34 3.14 1.97 2.78 
Poultry meat 86.04 97.16 91.56 90.67 81.70 
Non-annex I products 185.16 118.12 89.68 51.35 12.74 
Total export refunds 1,442.92 914.82 649.52 384.35 179.12 
Source:  European Union budgets for 2008-2013, figures are for payments in the budget year. Viewed at: 
http://ec.europa.eu/budget/biblio/documents/2013/2013_en.cfm#draft_budget  [February 2013]. 
                                               
16 Council Regulation (EC) No. 1182/2007. 
17 DG Agriculture and Rural Development (2012a). 
18 The most recent notification is WTO document G/AG/N/EU/6, 15 March 2012. WT/TPR/S/284 • European Union 
 
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  4.1.3.3  Market access 
4.24.  The reforms of the CAP that have taken pl ace over the last decades did not address market 
access directly. However, changes to preferential arrangements under the Generalized System of Preferences and as a result of bilateral trade ag reements have resulted in changes to market 
access for many countries (Chapter 2). In addition, the Agreement on Trade in Bananas 
established a new bound tariff and schedule for tariff reductions for bananas.
19 Since 
1 January 2008, all ACP exports of bananas to the EU have qualified for duty-free and quota-free 
access under separate trade and development agreements.20 
4.25.  Tariffs on agriculture products at 8.6% remain higher than those on non-agriculture 
products at 6.5%, and the tariff rates vary consider ably from one product to another. In addition, 
many agriculture products are subject to non- ad valorem  d u t i e s  t h a t  a l s o  v a r y  i n  t y p e  ( f r o m  
simple specific duties to more complex forms such as those in the Meursing Table) as well as the 
degree of protection applied to different products. Furthermore, for some products, particularly for 
fresh fruit and vegetables, seasonal duties may apply. However, the Commission pointed out that, 
specific duties are not in themselves complex and that increasing prices for agricultural 
commodities has reduced the relative degree of protection from such duties. 
4.26.  For some cereals, the specific duties on imports are based on the difference between 155% 
of the intervention price and c.i.f. import prices based on f.o.b. U.S. prices, or quotations of the 
Chicago Mercantile Exchange (for maize, sorghum , and rye) or the Minneapolis Grain Exchange 
(for common wheat) adjusted for freight costs from the U.S. to Rotterdam and other costs. Reductions to the duty may apply depending on th e port of delivery. In response to high world 
prices, duties on these cereals can be set at lo wer rates and have often been set at zero, most 
recently during the current marketing year.
21 
4.27.  The EU notified 112 separate tariff quotas as being in operation in the calendar year 2010 
and marketing year 2009/10. As already noted, in some cases two or more quotas covered the 
same or similar products and some quotas are quite small.22 However, the Commission noted that 
changes to quotas were the result of EU enlargement and subsequent GATT Article XXVIII 
negotiations. Furthermore, it noted that in some cases a small quota could be a commercial 
opportunity, for example in niche markets. 
4.28.  The methods used to administer and allocate tariff quotas vary: some are allocated to 
supplying countries while others are open to all potential suppliers. The validity of licences to 
import inside a quota vary from a few weeks to one year. Quotas are administered in different 
ways from licences on demand, to historical  importers, to first-come-first-served.  
4.29.  Fill rates vary widely from one tariff quota to  another. In the last notification for marketing 
year 2009/10 and calendar year 2010, out of a total of 112 tariff quotas for agricultural products, 
34 were fully used, 9 had a fill rate between 80% and 99%, while 31 had a fill rate below 1%, among which 19 were managed on a first come-first served basis. 
4.30.  In its Uruguay Round commitments, the EU reserved the right to use the Special 
Agricultural Safeguard (SSG) on 539 tariff lines. However, actual use of the SSG has been on a limited range of products. The price-based SSG ha s been made operational for chicken, turkey, 
and sugar products almost continuously, with some egg products added since marketing year 
2007/08. The EU has calculated trigger volumes for fruit and vegetables on a regular basis but the 
volume-based SSG has never been implemented. 
4.1.4  Domestic support levels 
4.31.  The most recent notification on domestic support from the EU is for marketing year 2009/10 
and it shows little change from the levels seen for 2007/08 and 2008/09, which represented a 
                                               
19 WTO document WT/Let/868, 30 October 2012. 
20 Europa Press Release, "The EU-Latin America Bananas Agreements – Questions and Answers", 
15 December 2009. Viewed at: http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/557 . 
21 Commission Implementing Regulation (EU) No. 1010/2012. 
22 WTO document WT/TPR/S/248/Rev.1, 1 Au gust 2011, Chapter IV, paragraph 34. WT/TPR/S/284 • European Union 
 
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  decline compared to support notified in previous years under the Blue and Amber Boxes, and an 
increase in support notified under the Green Box (Chart 4.2).  
Chart 4.2 Domestic support in the European Union, 2000/01-2009/10 
(€ million) 
 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10Green Box Blue Box Amber Box
 
Note: The chart does not include de minimis  support. 
Source: WTO notifications.  
4.32.  For measures notified under the Green Box, decoupled income support remains the main 
element, under the Blue Box most support goes to cereal planting and beef cattle, while most support under the Amber Box is for cereals, beef and sugar (Charts 4.3, 4.4, and 4.5). 
Chart 4.3 Green Box support in the European Union, 2000/01-2009/10 
(€ million) 
 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10Other
Decoupled income support and SAPS
Structural adjustment, environment and regional assistance
General services
 
Source: WTO notifications.  WT/TPR/S/284 • European Union 
 
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  Chart 4.4 Blue Box support in the European Union, 2000/01-2009/10 
(€ million) 
 - 5,000 10,000 15,000 20,000 25,000 30,000
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10Other
Sheep and goats
Dairy
Beef
Crops
 
Source: WTO notifications. 
Chart 4.5 Amber Box support in the European Union, 2000/01-2009/10 
(€ million) 
 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10Others Olive oil
Sugar Dairy
Cereals Fruit and vegetables
Beef
 
Note: The chart does not include de minimis  support. 
Source: WTO notifications.  
4.33.  The OECD has been publishing reviews of  agriculture policies in the EU, other OECD 
countries, and some emerging economies for several years. In these publications, the value of transfers to agricultural producers is measured using the Producer Support Estimate (PSE) and 
associated indicators. The methodology for calculating these indicators is different from that used 
to calculate the AMS, and the two sets of data are not compatible or comparable. The methodology used by the OECD is evolving and was revised for the 2007 Monitoring and Evaluation report, resulting in several changes, including the method used to estimate support for specific 
commodities. The total PSE is "the annual monetary value of gross transfers from consumers and 
taxpayers to agricultural producers, measured at the farm-gate level, arising from policy measures that support agriculture, regardless of their nature, objectives or impacts on farm production or WT/TPR/S/284 • European Union 
 
- 122 - 
 
  income. It includes market price support, budgeta ry payments and budget revenue forgone, i.e. 
gross transfers from consumers and taxpayers to agricultural producers arising from policy measures based on: current output, input use, area planted/animal numbers/receipts/incomes 
(current, non-current), and non-commodity criteria." Thus, the PSE includes estimates for the 
value of transfers provided by market-access measures, such as tariffs and tariff quotas, as well as 
input subsides, direct payments to producers that are coupled to prices or production, and direct 
payments decoupled from prices and production.
23 
4.34.  Although the methodology is very differen t from that used to calculate the Current Total 
AMS, as the PSE represents the value of transfer s to producers rather than compliance with WTO 
commitments, the trends in both indicators are si milar. The PSE has declined steadily over the 
past few years both as a percentage of gross farm incomes and in Euros: in 2011 the PSE was 
€74 billion (17.5% of gross farm receipts) compar ed to its peak of €105 billion or 38% of gross 
farm receipts in 1999. Although CAP reforms have contributed to the decline in support, another factor has been the increase in international prices which, along with reductions in intervention 
prices, have reduced the difference between prices  within the EU and those at the border. The 
reduction in the difference between border and internal prices is reflected in the decline in the Nominal Protection Coefficient for producers to  1.03 (meaning that, on average, border and 
internal prices are almost the same) and in market price support which has become a relatively 
small component of total support to agriculture (Chart 4.6). 
Chart 4.6 Value of production, and support to agriculture in EU-27, 2001-11 
(€ million) 
050,000100,000150,000200,000250,000300,000350,000400,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Total Support Estimate
Producer Support Estimate
Market Prices Support
Total Value of Production
 
Source: OECD PSE database. 
4.35.  As measured by the Single Commodity Transfer, support levels vary considerably from one 
product to another. In recent years, support for cereals and oilseeds has been low while support 
for sugar and milk production, as well as for mo st other commodities has declined, although it 
remains considerable for beef and poultry (Table 4.8).  
Table 4.8 Total producer support estimate and single commodity transfer values for 
selected commodities, 2003-11 
(€ million or % of gross farm re ceipts for respective products) 
 2003 2004 2005 2006 2007 2008 2009 2010 2011 
Producer support 
estimate          
€ million 98,150  108,924  99,425  98,719  90,827  90,197  85,649  77,317  74,203  
PSE as % of gross 
farm receipts 34  33  30  29  24  22  23  20  18  
                                               
23 OECD (2011a). WT/TPR/S/284 • European Union 
 
- 123 - 
 
   2003 2004 2005 2006 2007 2008 2009 2010 2011 
Single commodity 
transfers 65,915  71,543  54,814  42,585  35,244  30,155  26,267  16,105  12,717  
o f  w h i c h           
Common wheat          
€ million 65  1  1  0  (2) 0  2  0  0  
SCT as % of gross 
farm receipts 1 -  -  -  -  -  -  -  -  
Maize          
€ million 4,750  6,542  5,567  5,793  9,384  10,253  7,099  8,750  13,503  
SCT as % of gross 
farm receipts 36  11  15  10  23  -  -  -  -  
Sugar          
€ million 3,136  2,608  2,866  3,083  3,847  3,545  1,388  1,742  1,327  
SCT as % of gross 
farm receipts 65  65  56  32  49  44  17  3  1  
Milk          
€ million 16,460  17,034  11,894  8,389  2,162  1,057  592  712  701  
SCT as % of gross 
farm receipts 45  39  28  21  5  2  2  2  1  
Beef and veal          
€ million 15,637  16,914  13,578  12,732  10,774  8,097  8,353  3,079  3,135  
SCT as % of gross 
farm receipts 61  60  55  52  44  31  34  12  11  
Pig meat          
€ million 2,810  4,043  1,673  1,588   (532) 2,878  1,103  883  24  
SCT as % of gross 
farm receipts 12  14  6  5   (2) 8  4  3  0  
Poultry          
€ million 2,575  4,443  3,358  2,800  4,842  4,640  4,896  3,802  3,101  
SCT as % of gross 
farm receipts 31  43  33  28  37  34  38  29  21  
Source :  OECD Producer and Consumer Suppo rt Estimates database. Viewed at: 
http://www.oecd.org/chile/ producerandconsumersupportestimatesdatabase.htm  [February 2013]. 
4.36.  As a percentage of gross farm receipts, support has fallen more substantially: from 33% in 
in 2004 to 18% in 2011. The structure of support has also changed: until 2003 over half of the 
PSE was market prices support, but, as interventi on prices were reduced and international prices 
increased this declined to less than 12% in 201 1 (Chart 4.6). Over the same period direct 
payments based on area planted or animal num bers also declined while decoupled payments 
increased, which led to the decline in transfers to specific commodities (Table 4.8). However, the OECD calculations of EU support to agriculture re main high in absolute terms with over €74 billion 
going to support agricultural producers (PSE) and over €86 billion in total support to the sector 
(TSE). The Commission also noted that, at 18% the EU PSE as a share of gross farm receipts remains close to the OECD average (19%) and the EU TSE as a share of GDP at 0.7% is below the 
OECD average of 1.0%.
24  
4.2  Fisheries 4.2.1  Fisheries in the EU 
4.37.  Gross value added from the fisheries sector was €6,785 million for the EU in 2010 and 
represented about 0.06% of GVA for all sectors. Its importance varies considerably from one 
member State to another, being most important to Greece (0.29% of GVA), Estonia (0.26%), and Malta (0.23%). Spain, Italy, and France repres ented 62% of GVA for fishing for the EU in 2009.
25 
Employment in the fisheries and aquaculture sector s also represents a small proportion of total 
employment with about 140,000 working in fisher ies, 31,000 in aquaculture, and another 120,000 
in the processing sector.26  
4.38.  FAO fishing data show that total catch in the EU has been declining for many years both in 
terms of tonnage caught and relative to the rest of the world: in 2000 the EU-27 catch was 6% of 
                                               
24 OECD (2012). 
25 Eurostat. 
26 European Commission (2012b). WT/TPR/S/284 • European Union 
 
- 124 - 
 
  world catch and in 2010 it had fallen to 3.9%.27 Eurostat data differ from FAO data but show a 
similar trend with total catch declining from 6.8 million tonnes in 2000 to 4.9 million tonnes in 2010. However, the trend varies from one member State to another and was slightly upwards in Germany and Portugal (though it varied a lot from one year to another in both cases). Denmark, 
Spain, the United Kingdom, and France account for over half of the EU's total catch (Chart 4.7). 
Chart 4.7 Total catch in the EU-27 
(Tonnes) 
01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Denmark Spain
United Kingdom France
Ireland Netherlands
Italy Germany
Portugal Others
 
Note: Data are not available for all member States for 2011.  
Source: Eurostat. 
4.39.  Many different fish species are caught by EU  fishers, with the top nine species representing 
just over half the total weight. The main specie s caught were European sprat, Atlantic herring, 
Atlantic mackerel and sandeels (Table 4.9). The structure of catch varies considerably from one 
member State to another: in Denmark sandeels and sprat make up over half the catch while in Spain the top three species by catch (skipjack tuna, jack and horse mackerels, and European 
pilchard) are just over one fifth of the total catch. 
Table 4.9 EU-27 total catch for selected species, 2002-09  
('000 tonnes) 
 2002 2003 2004 2005 2006 2007 2008 2009 
Total catch 6,247 5,822 5,804 5,619 5,430 5,138 5,136 5,049 
European sprat 528 546 612 703 512 499 468 543 
Atlantic herring 652 673 737 830 748 684 578 531 
Atlantic mackerel 443 396 370 283 258 302 279 347 
Sandeels 723  307 338 167 294 180 280 339 
European pilchards 261 245 257 252 251 235 237 243 
Jack and horse 
mackerel 113 89 126 134 110 114 131 173 
Atlantic horse 
mackerel 167 176 182 177 184 153 173 155 
Atlantic cod 163 141 151 125 125 118 119 127 
Skipjack tuna 214 208 174 141 133 88 251 114 
Chilean jack mackerel  ..  ..  ..   ..  34 119 106 111 
European anchovy 124 115 144 112 133 109 100 102 
..  Not available. 
Source:  Eurostat. 
                                               
27 FAO Fishery Commodities Global Production and Trade online database. Viewed at: 
http://www.fao.org/fishery/statistics/global-commodities-production/query/en  [November 2012]. WT/TPR/S/284 • European Union 
 
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  4.40.  There were nearly 84,000 fishing vessels in the EU in 2010 with a total gross tonnage of 
over 1.75 million GT. Over the period 2007-10, the number of vessels in each size category has declined, except for vessels of over 2,000 GT (Table 4.10). Under Council Regulation No. 2371/2002, the total capacity of the fleet has been restricted and new vessels are only 
permitted to replace old ones of equivalent capacity (in both gross tonnage and engine power). 
Table 4.10 EU fishing fleet, 2007-10  
 Gross tonnage ('000) Number of vessels 
2007 2008 2009 2010 2007 2008 2009 2010 
Total 1,927 1,869 1,820 1, 754 88,998 86,587 84,502 83,796 
Size          
0-24.9 GT 258 253  249 247 78,782 76,751 75,092 74,778 
25-49.9 GT 119 115 110 106 3,318 3,216 3,075 2,973 
50-99.9 GT 210 203 195 188 2,935 2,835 2,731 2,632 
100-149.9 GT 171 163 154 145 1,398 1,337 1,260 1,186 
150-249.9 GT 250 243 231 218 1,318 1,276 1,219 1,153 
250-499.9 GT 291 271 261 247 843 789 757 715 
500-999.9 GT 131 121 114 111 194 179 168 163 
1,000-1,999.9 GT 180 172 161 157 121 116 108 105 
2,000 + GT 317 328 346 336 87 88 92 90 
Source:  Eurostat. 
4.41.  The structure of the fishing fleet varies from one member State to another, for example, 
Greece has the greatest number of vessels (17,144)  but is the sixth largest in terms of gross 
tonnage and fifth largest in terms of total engine  power. These differences among member States 
are the result of many factors, including the type of fishing: Italy is third in the EU-27 in terms of 
fishing vessels but first in terms of total engine power because about one third of the fleet are 
trawlers, while only 5% of the Greek fishing fleet ar e trawlers, and vessels also tend to be smaller. 
4.42.  Aquaculture production is small relative to the catch sector with total production of 
1.3 million tonnes in 2009, valued at about €2,246 million. About half of the total catch were 
molluscs (mussels, oysters, and clams), but, in value terms, salmon and trout production were 
more important. The main producers are France, the UK, Italy, Greece, and Spain that together 
account for over three quarters of the value of production in the EU as a whole. 
4.2.2  Trade 4.43.  The EU has a trade deficit in fish and fish products with imports of US$26.7 billion and 
exports of US$4.8 billion in 2011.
28 From 2002-08, both exports and imports more than doubled, 
then fell in 2009, and recovered to new record leve ls in 2011, with the increase in the total value 
of exports largely a result of higher prices rath er than increased quantities (Tables 4.11 and 4.12). 
However, trade in fish and fish products repres ents only about 1.1% of imports and 0.2% of 
exports. 
Table 4.11 Imports of selected fish products, 2005-11 
HS 
2002   2005 2006 2007 2008 2009 2010 2011 
 Total imports of 
fishery products US$ million 17,779 20,741 
 23,198  24,758  22,115  23,710  26,695  
030420 Fish fillets, frozen US$ million 849  974  1,047  1,078  1,030  1,066  1,075  
'000 tonnes 2,970 3,725  4,346  4,522  4,077  4,185  4,713  
030613 Shrimps and 
prawns, frozen US$ million 430  487  492  466  469  476  471  
'000 tonnes 2,460  2,954  2,942  3,086  2,727  3,082  3,381  
030212 Salmon US$ million 325  342  400  430  473  483  524  
'000 tonnes 1,363  1,754  1,886  2,120  2,360  3,027  3,067  
160414 Tunas, skipjack, 
bonito, 
prepd/psvd US$ million 459  474  474  482  466  443  463  
'000 tonnes 1,347  1,486  1,766  2,264  1,958  1,782  2,156  
                                               
28 For the purposes of this section of the Review, fish products are defined as HS Headings 020840, 03, 
051191, 1504, 1603, 1604, 1605, and 230120. WT/TPR/S/284 • European Union 
 
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  HS 
2002   2005 2006 2007 2008 2009 2010 2011 
160520 Shrimps and 
prawns, 
prepd/psvd US$ million 109  112  123  125  134  140  139  
'000 tonnes 660  685  838  959  988  1,061  1,241  
030410 Fish fillets and 
other fish meat US$ million 122  116  128  117  122  124  124  
'000 tonnes 804  918  1,091  1,095  1,059  1,138  1,238  
030749 Cuttle fish and 
squid US$ million 301  282  283  265  254  287  262  
'000 tonnes 853  860  976  974  772  998  1,165  
030759 Octopus, excl. 
live/fresh/chilled US$ million 85  91  93  94  104  84  91  
'000 tonnes 420  453  536  634  509  452  730  
030269 Fish, nes, 
fresh/chilled 
(excl. fillets) US$ million 160  155  148  150  157  159  117  
'000 tonnes 682  721  772  773  672  588  598  
030799 Molluscs and 
invertebrates 
frozen/dried/etc. US$ million 138  200  182  179  134  154  162  
'000 tonnes 314  347  320  326  287  445  545  
Source: UNSD Comtrade. 
Table 4.12 Exports of selected fish products, 2005-11 
HS 
2002   2005 2006 2007 2008 2009 2010 2011 
 Total exports of 
fishery products US$ million 3,086  3,345  3,910  4,499  3,940  4,484  4,785  
030379 Fish, n.e.s., frozen  US$ million 326  332  331  333  293  398  278  
'000 tonnes 253  301  319  414  380  484  465  
030212 Salmon US$ million 9  13  17  18  26  32  41  
'000 tonnes 55  90  113  116  162  226  331  
230120 Flours, meals and 
pellets  US$ million 230  196  139  177  235  192  222  
'000 tonnes 177  204  182  216  277  296  330  
030420 Fish fillets, frozen US$ million 32  23  24  27  27  34  31  
'000 tonnes 127  159  176  192  178  273  243  
030613 Shrimps and prawns, 
frozen US$ million 75  78  85  77  71  69  56  
'000 tonnes 210  219  250  281  242  237  225  
030374 Mackerel US$ million 124  75  116  94  129  162  118  
'000 tonnes 162  131  177  169  212  248  202  
030269 Fish, nes, fresh/chilled 
(excl. fillets) US$ million 20  23  29  26  32  26  31  
'000 tonnes 161  184  200  233  202  179  199  
030343 Skipjack/stripe-bellied 
bonito US$ million 141  145  126  144  147  133  142  
'000 tonnes 109  127  145  216  168  144  185  
030331 Halibut US$ million 20  18  26  26  24  30  32  
'000 tonnes 82  77  108  127  108  143  174  
150420 Fats and oils and their 
fractions, of fish, other 
than liver oils US$ million 80  88  110  79  119  106  98  
'000 tonnes 72  89  126  151  125  120  147  
Source:  UNSD Comtrade. 
4.2.3  Policies 
4.44.  The EU has exclusive competence for the conservation of marine biological resources under 
the Common Fisheries Policy and for negotiating agreements with other countries and international 
organizations. For other fishery matters, competence is shared between the EU and the member States. The member States are responsible for implementation of EU rules and have competence 
for registration of vessels and other matters related to the jurisdiction of vessels. In matters other 
than the conservation of marine biological resources, competence is shared between the EU and member States.  
4.45.  At the EU level, the principal legislation on fisheries is Council Regulation (EC) 
No. 2371/2002 on the conservation and sustainable exploitation of fishery resources under the 
Common Fisheries Policy (CFP). The Regulation sets  out the legal basis for the CFP and provides 
for measures covering all areas relating to commercial fishing, including: conservation and 
management; environmental impact; conditions of access; fleet capacity; control; aquaculture; 
the common organization of the markets; and international relations. Fisheries policy has changed significantly over the past few years and reform is continuing with increased emphasis on 
sustainability through long-term management, enforcement of rules, and inputs from 
stakeholders, including scientific advice.  WT/TPR/S/284 • European Union 
 
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  4.46.  The reform of the CFP is continuing with several proposals from the Commission on a ban 
on discarding catch, maximum sustainable yields , regionalization, and transferable fishing 
concessions currently before the European Parliament and the Council.29 
4.47.  Overfishing continues to be a major problem facing EU fishing with the majority of 
commercial fish stocks in EU waters giving cause for concern. In 2007, 29 out of 33 of Europe's 
most important commercial fish species were over-fished while "decisions on catch levels remain dominated by short-term thinking, and the catching  capacity of the European Fleet remains more 
than twice what is needed to harvest [the EU's] fish stocks sustainably."
30 
4.48.  In preparing proposals for the Council and European Parliament, the Commission may 
consult the Advisory Committee on Fisheries and Aquaculture which was set up in 1971 to represent the main stakeholders in the fisheries sector, including representatives for the catch 
sector, aquaculture producers, processing and tr ading enterprises, as well as consumers and 
environmentalists.
31  
4.49.  Over the period November 2004 to April 2009, seven Regional Advisory Councils (RAC) were 
established Under Regulation No. 2371/2002. Five of the RACs cover geographic marine areas32, 
one is for pelagic stocks, and one is for the high seas/long distance fishing fleet.33 The RACs 
comprise the various stakeholders in the fisheries sector with two thirds of members from the 
catch sector and one third from other interested groups. The RACs are not part of the formal 
decision-making process under the Common Fisheries Policy but make recommendations on policy. In June 2008, the European Commission reported th at the RACs were, in general, functioning well 
but faced some problems, including with their input into the annual establishment of total annual 
catches and the allocation of quotas.
34 
4.2.3.1  Total allowable catch 4.50.  According to the Commission, its proposals to  the Council on TACs and quotas are based on 
advice from the Scientific, Technical and Economic Committee (which takes into account advice 
from other sources, including the International Council for the Exploration of the Sea), and input from stakeholders (including the RACs). Based on the Commission's proposals, the Council sets 
TACs for each species each year (every two years for deep sea species) which are distributed 
among the member States which in turn allocate quotas to fishing vessels.
35 Control and 
enforcement are carried out by the member States and include a satellite-based vessel monitoring system (VMS) and traceability syst ems covering catch from the vessel to the retailer. Sanctions for 
not complying with quotas or other rules may be applied at both the member State and 
fishing-vessel level. At the member State level, sanctions for not complying with the CFP include reduced financial aid, closure of fisheries, or reduction of quotas. Since 1 January 2012, a 
penalty-point system applies to fishing vessels for serious offences which may result in the 
withdrawal of fishing permits.
36  
4.51.  Although one of the main instruments for controlling fishing is the annual or biennial 
establishment of TACs and the allocation of quotas, some of the main stocks are under long-term 
management plans and/or recovery plans that have been developed for several areas and species with several more plans proposed. The long-term plans set out a range of measures to restrict fishing effort, which may include: closed areas; gear restrictions (such as minimum mesh size), as 
well as monitoring, inspection, and control measures. The current long-term plans include those in 
Table 4.13. 
                                               
29 European Commission online information. Viewed at: 
http://ec.europa.eu/fisher ies/reform/index_en.htm  [December 2012]. 
30 European Commission (2009), pp. 4-5. 
31 Commission Decision No. 1999/478/EC. 
32 Baltic Sea, Mediterranean Sea, North Sea, north-western waters, and south-western waters. 
33 Council Decision No. 2004/585/EC of 19 July 2004. 
34 European Commission document COM(2008) 364 final, p. 9, 17 June 2008. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0364:FIN:EN:PDF . 
35 For example, see European Commission online in formation, "Fishing TACS and Quotas 2012". Viewed 
at: http://ec.europa.eu/fisheries/documentation/publications/poster_tac2012_en.pdf  [December 2012]. 
36 Council Regulation (EC) No. 1224/2009. WT/TPR/S/284 • European Union 
 
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  Table 4.13 Long-term plans for EU fisheries 
Plan Legislation 
English title Spanish title French title 
Recovery plan for cod in 
the North Sea, Kattegat, Skagerrak, the eastern Channel, Irish Sea and West of Scotland Plan de recuperación del 
bacalao: Mar del Norte, Kattegat, Skagerrak, Mancha oriental, Mar de Irlanda y oeste de Escocia Plan de reconstitution 
des stocks de cabillaud: mer du Nord, Kattegat, Skagerrak, Manche orientale, mer d’Irlande et ouest de l’Écosse Council Regulations (EC) 
No. 423/2004 of 26 February, and No. 1342/2008 of 18 December 
Recovery plan for 
Northern hake Plan de recuperación de 
la merluza del norte Plan de reconstitution du 
stock de merlu du nord Council Regulation (EC) 
No. 811/2004 of 21 April 
Recovery plan for Southern hake and Norway lobster Plan de recuperación de 
la merluza del sur y la cigala Plan de reconstitution 
des stocks de merlu austral et de langoustine Council Regulation (EC) 
No. 2166/2005 of 20 December 
Multi-annual plan for 
sole, Bay of Biscay Plan plurianual del 
lenguado, Golfo de 
Vizcaya Plan pluriannuel pour le 
stock de sole du golfe de 
Gascogne Council Regulation (EC) 
No. 388/2006 of 23 
February 
Multi-annual plan for sole, Western Channel Plan plurianual del 
lenguado, la Mancha occidental Plan pluriannuel pour le 
stock de sole de la Manche occidentale Council Regulation (EC) 
No. 509/2007 of 7 May 
Multi-annual plan for sole 
and plaice, North Sea Plan plurianual del 
lenguado y la solla, Mar 
del Norte Plan pluriannuel pour les 
stocks de sole et de plie 
de la mer du Nord Council Regulation (EC) 
No. 676/2007 of 11 June 
Measures for the recovery of eel Medidas para la 
recuperación de la 
anguila europea Mesures de reconstitution 
du stock d’anguille Council Regulation (EC) 
No. 1100/2007 of 18 
September 
Multi-annual plan for cod, 
Baltic Plan plurianual de 
recuperación del bacalao 
del Báltico Plan pluriannuel pour les 
stocks de cabillaud de la 
mer Baltique Council Regulation (EC) 
No. 1098/2007 of 18 
September 
Long-term plan for West 
of Scotland herring Plan a largo plazo para el 
arenque del oeste de Escocia Plan à long terme pour le 
stock de hareng présent à l’ouest de l’Écosse Council Regulation (EC) 
No. 1300/2008 of 18 December 
Source:  European Commission, Fisheries. Viewed at: 
http://ec.europa.eu/fisheries/cfp/fishing_rules/multi_annual_plans/index_en.htm  [December 2012]. 
4.52.  In addition to long-term plans for EU waters, the EU also implements a number of plans for 
stocks shared with other countries, such as the 15-year recovery plan for Eastern Bluefin tuna 
which was adopted by the International Commission for the Conservation of Atlantic Tuna (see section 4.2.3.4). 
4.53.  Under Regulation (EU) No. 1026/2012 the Commission can adopt measures against a third 
country which it has identified as allowing non-sustainable fishing of a fishing it shares with the 
EU. Allowing non-sustainable fishing is defined as failure to cooperate in management of the shared stock "in full compliance" with international law, and failing to adopt fishery-management 
measures or adopting such measures without due regard for other countries and the EU. The 
measures that may be taken include: imposing quantitative restrictions on imports of fish from the stock, on imports of species associated with th e stock, on imports of products made of or 
containing the stock or species associated with it; and other restrictions. Before taking such 
measures, the third country would be notified and it then has one month to respond and "remedy the situation".
37  
4.2.3.2  Effort and gear restrictions 
4.54.  The EU has recognised the need to reduce  capacity and fishing effort and member States 
are required to submit annual reports on fleet capacity and fishing opportunities.38 However, the 
Commission has noted that these reports are of limited value and that it is "impossible to derive 
conclusions regarding fishing overcapacity."39 However, under the measures on capacity 
management, each addition to capacity must be ma tched by an equivalent withdrawal in terms of 
gross tonnage and power, and any withdrawal of capacity that receives public aid cannot be 
                                               
37 Regulation (EU) No. 1026/2012 of 25 October 2012 
38 Council Regulation (EC) No. 2371/2002, Article 14. 
39 European Commission document COM(2012) 368 final, 6 July 2012. Viewed at: 
http://ec.europa.eu/fisheries/cfp/fishing_rules/fishing_effort/official_documents/com_2012_368_en.pdf . WT/TPR/S/284 • European Union 
 
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  replaced. These measures have contributed to the reduction in total capacity of the fishing fleet 
(Table 4.10). 
4.55.  The CFP also includes a range of other restrictions to fishing effort and gear that may be 
used. These include technical measures that may be incorporated into long-term plans, such as 
minimum landing sizes, minimum mesh sizes, closed areas and seasons, by-catch limits, and 
permitted fishing gear. The measures and the stocks they apply to are set out in a number of regulations
40, with several more proposals before the European Parliament and Council, including 
proposals for regulation: 
 on the conservation of fishery through technical measures in the Baltic Sea, the Belts and 
the Sound41; 
 establishing specific conditions to fishing for deep-sea stocks in the North-East Atlantic and 
provisions for fishing in international waters of the North-East Atlantic;42 and 
 concerning the conservation of fishery resources through technical measures for the 
protection of juveniles of marine organisms.43 
4.2.3.3  Illegal, unreported and unregulated (IUU) fishing 
4.56.  The EU has increased the legal and regulato ry framework to address illegal, unreported, and 
unregulated (IUU) fishing. Under Council Regulation (EC) No. 1005/2008 and the implementing regulations issued in 2010 and 2011, only marine fishery products validated as legal by the flag State or exporting State can be imported into, or exported from the EU while EU operators found 
to have fished illegally (regardless of location or flag) may be penalised. The Commission has also 
established a list of vessels that have engaged in IUU fishing
44 and notified several third countries 
that the Commission considers them as possible candidates for identification as non-cooperating 
third countries pursuant to the IUU regulation.45 
4.2.3.4  Regional Fisheries Management Organizations and multilateral agreements 
4.57.  The EU participates in six tuna regional fishing management organizations (RFMOs) 
(including the Agreement on the International Dolphin Conservation Programme (AIDCP) which is 
a sister organisation to IATTC) and 9 non-tuna RFMOs. The EU is also a member of two advisory RFOs: the Western Central Atlantic Fisheries Commission (WECAFC) and the Fisheries Committee for the Eastern Central Atlantic (CECAF) (Table 4.14). The EU is also an active participant in 
multilateral negotiations on Law of the Sea and Fisheries in global fora, such as the UN and FAO, 
and other organizations dealing with fishing, such as the OECD. The Communication on the 
external dimension of the CFP, as endorsed by the European Parliament and the Council, 
advocates the fight against IUU, reducing overcapacity, reinforcing compliance with management 
measures adopted by RFMOs and the use of the best  scientific evidence available to underpin their 
decisions.
46 
                                               
40 Regulation (EU) No. 579/2011, Commission Regulation (EU) No. 686/2010, Council Regulation (EC) 
No. 1288/2009, Commission Regulation (EC) No. 517/2008, Council Regulation (EC) No. 2187/2005, and Council Regulation (EC) No. 850/98 and corrigendum. 
41 European Commission document COM(2012) 591 final, 17 October 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0591:FIN:EN:PDF . 
42 European Commission document COM(2012) 371 final, 19 July 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0371:FIN:EN:PDF . 
43 European Commission document COM(2012) 298 final, 21 June 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0298:FIN:EN:PDF . 
44 Commission Regulations (EU) No. 468/2010 and No. 724/2011. 
45 Commission Decision of 15 November 2012 on notifying third countries that the Commission 
considers them possible of being identified as non-cooperating third countries pursuant to Council Regulation (EC) No 1005/2008 establishing a Community system to prevent, deter and eliminate illegal, unreported and unregulated fishing and Commission Regulation (EU) No. 468/2010 of 28 May, as amended by No. 724/2011 of 
25 July. 
46 European Commission document COM(2011) 424 final, 13 July 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0424:FIN:EN:PDF . WT/TPR/S/284 • European Union 
 
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  Table 4.14 EU participation in regional  fisheries management organizations  
Regional fisheries management organization EU status 
1. Highly-migratory species  
International Commission for the Conservation of Atlantic Tuna Contracting party 
Indian Ocean Tuna Commission Member 
Western and Central Pacific Fisheries Commission Member 
Inter-American Tropical Tuna Commission Member 
Commission for the Conservation of the Southern Bluefin Tuna Cooperating non-member 
2. Geographical   
North-East Atlantic Fisheries Commission Contracting party 
Northwest Atlantic Fisheries Organization Contracting party 
North Atlantic Salmon Conservation Organization Member 
South-East Atlantic Fisheries Organisation  Contracting party 
South Indian Ocean Fisheries Agreement Contracting party 
South Pacific Regional Fisheries Management Organisation  Member 
Convention on Conservation of Antarctic Marine Living Resources Member 
General Fisheries Commission for the Mediterranean Member 
Convention on the Conservation  and Management of Pollock 
Resources in the Central Baring Sea Member (Poland) 
3. Advisory organizations  
Western Central Atlantic Fisheries Commission Member 
Fisheries Committee for the Eastern Central Atlantic Member 
Source:  European Commission, Fisheries. 
4.2.3.5  Bilateral agreements 
4.58.  Agreements with third countries on fishin g are negotiated by the Commission on behalf of 
the EU. These agreements fall into two categories : the exchange of fishing opportunities for the 
joint management of shared stocks with Norway, Iceland and the Faroe Islands (also called 
"Northern Agreements"; and Fisheries Partnership Agreements (FPAs) which give EU vessels the right to fish in other countries' EEZs in return for financial contributions. As of 
end-December 2012, the EU had 11 protocols in forc e for FPAs with third co untries, each of which 
included an EU contribution: the total annual co ntribution from the EU was €26,543,953 of which 
€7,983,141 was earmarked for fisheries policy development.
47  
4.2.3.6  Support to fisheries 
4.59.  On 1 January 2007, the European Fisheries Fund (EFF) replaced the Financial Instrument for 
Fisheries Guidance (FIFG). The EFF has a total budget of €4,305 million for the seven years 2007-13 and covers all sectors of the industry, including: sea and freshwater fishing; aquaculture; 
processing; and marketing. Funding to each member  State is based on its national strategic plan 
and operational programme. 
4.60.  The main priorities or axes for EFF funding are:  
 adapting the EU fishing fleet to meet resources; 
 support for aquaculture, inland fishing, processing, and marketing; 
 support to for organizations that represent the interests of the fishing sector; 
 sustainable development of fisheries-dependent areas; and  
 technical assistance to member States to facilitate delivery of aid. 
                                               
47 European Commission Fisheries online information. Vviewed at: 
http://ec.europa.eu/fisheries/cfp/international/agreements/index_en.htm  [February 2013]. WT/TPR/S/284 • European Union 
 
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  4.61.  In addition to the EFF, member States may provide state aid to fishing, subject to the 
general rules on state aid and specific guidelines for the fishery sector.48 De minimis  state aid 
cannot exceed €30,000 per beneficiary over three years and the total amount must be less than 2.5% of the annual value of the member State's fisheries output. Other programmes of state aid 
must be notified to the Commission which, in pr inciple, must declare that the programme complies 
with the EU Treaty before it can be implemented. In addition, the annual amount per beneficiary may not exceed €1 million, the total eligible costs per project may not exceed €2 million, the 
project must be aimed at small and medium-sized en terprises, it has to be in accordance with EFF 
regulations, and it cannot be given to someone who has been ordered to pay back incompatible state aid until that case has been closed. 
4.62.  The common organization of the market for fishery and aquaculture products consists of 
four main elements: 
 common market standards for fresh products which include provisions on information to be 
provided to consumers;  
 incentives to fishers to form producer organizations that can take steps to stabilize market 
fluctuations. To qualify for funding, a producer organization must develop an operational 
programme that includes measures to adap t catches to market demand, a marketing 
strategy, a catch plan for fishing or production plan for aquaculture, and an internal penalty 
system; 
 price support measures which compensate producer organizations should market prices fall 
below the withdrawal price set for various species. The level of compensation declines with 
increasing proportion of the producer organizations' output that is withdrawn. The first 4% 
of production gets 85% of the withdrawal price, the next 4% (6% for pelagic species) gets 
55%, and no compensation is provided after th at. Aid is also provided for processing and 
storage of up to 18% of the producer organization's catch so that produce can be sold later, 
presumably at higher prices; and 
 trade-related measures (autonomous tariff quotas) to ensure supply of certain fishery 
products to EU processors.  
4.63.  According to the OECD, total government financial transfers to the marine capture fisheries 
sector in the EU were US$369 million in 2009, about half of which was for general services, one 
third for direct payments and the remainder was cost-reducing transfers. The total transfer, at 
16% compared to the landed value for marine fisheries, was below the average for all OECD countries for which statistics were available. However, data were not available for all OECD countries or for all EU member States. 
4.64.  Several member States provide fuel tax ex emptions, often exemptions from excise duties 
and/or VAT. The value of these exemptions varies considerably from one State to another: from 22% of the total landed value in Italy and 19% in France and Sweden, to zero in Germany and 
Portugal.
49 The legal framework covering such exemptions at the EU level is Council 
Directive 2003/96/EC. 
4.65.  The EU budget for the fishery sector averaged €678 million in payments per year for 
2008-11 and €726 million in 2011. Over half of th e €726 million was for the EFF, about one fifth 
for international fisheries agreements, and most of the remainder went towards the cost of control and enforcement and market interventions (Table 4. 15). Not all of this sum was for support to the 
fishery sector as it also includes contributions to international organizations, technical cooperation, 
and other headings. 
                                               
48 Treaty on the Functioning of the European Union, Articles 107-109, and Guidelines for the 
examination of State aid to fisheries and aquaculture 2008/C 844/06. 
49 Martini (2012). WT/TPR/S/284 • European Union 
 
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  Table 4.15 EU payments for fisheries, 2008-11 
(€ million) 
Budget Chapter  2008 2009 2010 2011 
1102.01.01 Intervention  9.5 11.1 10.4 17.2 
1102.03.01 Programme for the outermost regions 16.7 13.1 0 16.9 
1103.01 International fisheries agreements 166. 0 143.2 136.6 155.7 
1106 European Fisheries Fund 571.7 290.3 394.8 445.1 
 of which     
1106.01-08 Completion of earlier programmes 320.3 114.2 10.7 0.7 
1107 Conservation and manage ment  35.4 29.8 27.3 36.6 
1108 Control and enforcement 27.4 23.9 31.6 41.8 
 Othera 7.8 11.3 11.2 12.8 
a Budget chapter headings: 1102.01.03, 1103.02, 1103.03, 1103.04, and 1104.01. 
Source:  European Union Budgets. Viewed at 
http://ec.europa.eu/budget/biblio/documents/2013/2013_en.cfm  [February 2013].  
4.3  Services 
4.3.1  Financial services  
4.66.  Financial services in the EU are both a major sector of the EU economy and a major market 
as, for instance, the EU alone accounts for more than 35% of world gross insurance premiums. As 
a consequence of the financial crisis, this sector has been the object of intense legislative activity. 
4.3.1.1  Market size and structure 4.67.  Tables 4.16 to 4.21 list the main indicators  of the three sub-segments of financial services: 
banking, insurance, and securities at EU level. Similar data at EU member-State level can be found 
in Tables A4.1 to A4.4.  
4.3.1.1.1  Banking Table 4.16 Consolidated banking indicators, 2010-11 
 2010 2011 
Number of credit institutions, by type of unit   
Stand-alone credit institutions 4,350 4,296 
Banking groups 418 417 
Number of credit institutions, by origin    
Domestic credit institutions 3,730 3,691 
Foreign-controlled subsidiaries and branches 1,038 1,022 
Total number of credit institutions  4,768 4,713 
 
(€ billion) 
Assets of credit institutions  2010 2011 
Domestic credit institutions, of which:  34,638.03 35,901.58 
Large 25,742.47 26,780.48 
Medium-sized 7,822.77 8,039.59 
Small 1,072.79 1,081.50 
Foreign-controlled subsidiaries and branches 8,234.19 8,916.17 
As % of total  19.20 19.90 
Total assets 42,872.22 44,817.75 
 
Employment 2010 2011 
Euro area 2,132,902 2,107,109 
EU 3,078,687 3,045,465 
Source: Information provided by the European  Commission. WT/TPR/S/284 • European Union 
 
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  Table 4.17 Performance indicators, 2010-11 
(%) 
Capital adequacy 
indicators Domestic banks Foreign banks 
All Large Medium-
sized Small 
2010 2011 2010  2011  2010  2011  2010  2011 2010 2011  
Overall solvency ratio 13.59 13.53 13.64 13.54 13.03 12.97 16.44 17.13 16.34 16.74 
Tier 1 ratio 10.53 10.70 10.63 10.81 10.01 10.10 12.41 12.92 12.79 13.15 
Capital buffer  5.59 5.53 5.64 5.54 5.03 4.97 8.44 9.13 8.34 8.74 
(%) 
Doubtful and 
non-performing 
loans and loss 
provisions Domestic banks Foreign banks 
All Large Medium-
sized Small 
2010 2011 2010  2011  2010  2011  2010  2011 2010 2011  
(Gross) Total doubtful 
and non-performing loans (loans and debt securities)
a  3.72 3.92 3.65 3.70 3.92 4.65 3.58 2.79 2.41 2.44 
(Net) Total doubtful 
and non-performing 
loans (loans and debt 
securities)b 24.71 25.70 25.89 25.61 22.64 28.28 20.18 14.13 11.66 9.66 
Total loss provisionsc  49.11 50.38 47.16 48.73 55.00 54.31 39.52 43.88 63.18 68.64 
a Per total loans and advances and total debt instruments. 
b Per total own funds for solvency purposes. 
c Per total (gross) doubtful and non-performing loans. 
Source: Information provided by  the European Commission.  
4.3.1.1.2  Insurance  
Table 4.18 Main economic indicators of the insurance sector (EU level) 
Number of EU insu rances companies (2011) 5, 500 (top 3 member States): 
United Kingdom: 1,213; Germany: 580; and France: 434) 
Number of employees (2011) 960,000 (top 3 member States: Germany: 
216,400; France: 148,000; and 
United Kingdom: 120,000) 
EU total premiums (2011, US$ billio n) 2009: 1,614; 2010: 1,615; 2011: 1,651 
EU premiums as percentage  of world total premiums 
(2011, %) 2009: 39.27%; 2010: 37.24%; 
2011: 35,91% 
EU total gross written premiums (2011, € million) 999,320 
EU life gross written premiums (2011, € million) 593,985 
EU non-life gross written premiums (2011, € million) 405,338 
EU health gross written premiums (2011, € million) 103,641 
EU total insurers' investment portfolio (2011, € million) 7,115,002 
Source: Insurance Europe. 
Table 4.19 Number of insurance companies, by  type, origin, and location of activity, 
2011 
  Total 
Life enterprises   
1 National enterprises 818 
2 Branches of third (non-EU/EEA) countries 6 
1 + 2 Total under national supervision 824 
3 Branches of EU/EEA countries 119 
1 + 2 + 3 Total activity in the country 943 
Branches in EU/EEA countries 91 
Branches in third (non-EU/EEA) countries 5 
Non-life enterprises  0 
1 National enterprises 1805 
2 Branches of third (non-EU/EEA) countries 34 
1 + 2 Total under national supervision 1839 WT/TPR/S/284 • European Union 
 
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    Total 
3 Branches of EU/EEA countries 474 
1 + 2 + 3 Total activity in the country 2313 
Branches in EU/EEA countries 286 
Branches in third (non-EU/EEA) countries 33 
Composite enterprises  0 
1 National enterprises 247 
2 Branches of third (non-EU/EEA) countries 4 
1 + 2 Total under national supervision 251 
3 Branches of EU/EEA countries 26 
1 + 2 + 3 Total activity in the country 277 
Branches in EU/EEA countries 32 
Branches in third (non-EU/EEA) countries 8 
Reinsurance enterprises  0 
1 National enterprises 448 
2 Branches of third (non-EU/EEA) countries 1 
1 + 2 Total under national supervision 449 
3 Branches of EU/EEA countries 14 
1 + 2 + 3 Total activity in the country 463 
Branches in EU/EEA countries 25 
Branches in third (non-EU/EEA) countries 10 
Total  0 
1 National enterprises 3318 
2 Branches of third (non-EU/EEA) countries 45 
1 + 2 Total under national supervision 3363 
3 Branches of EU/EEA countries 633 
1 + 2 + 3 Total activity in the country 3996 
Branches in EU/EEA countries 434 
Branches in third (non-EU/EEA) countries 56 
Source: Information provided by  the European Commission.  
4.3.1.1.3  Securities 
Table 4.20 EU security market capitalizationa 
(€) 
  Quoted shares issued 
Total MFIs Non-MFI corporations 
Financial corporations 
other than MFIs Non-financial 
corporations 
Euro area 4,407,151 395,749 338,207 3,673,194 
Non-euro area 2,565,079 114,530 416,048 2,034,502 
Total 6,972,230 510,279 754,255 5,707,696 
 
  Securities other than shares issued 
Total MFIs 
(including 
euro system) Non-MFI corporations General 
government Financial 
corporations 
other than MFIs Non-financial 
corporations 
Euro area 16,827,169 5,514,315 3,264,770 984,318 7,063,765 
Non-euro area 5,724,794 2,054,430 941,266 616,076 2,113,023 
Total  22,551,963 7,568,745 4,206,036 1,600,394 9,176,788 
a Data are from November 2012 for euro-area member States and December 2011 for non-euro-area 
member States. 
Note: MFI: monetary financial institutions.  Source: Information provided by  the European Commission.  
Table 4.21 Total assets under management by pension funds, 2010-11 
(€ million)  
 2010 2011 
Euro area 1,056,010 1,110,130 
EU 2,747,912 2,822,256 
Source: Information provided by  the European Commission.  WT/TPR/S/284 • European Union 
 
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  4.3.1.2  Recent and planned regulatory evolutions 
4.68.  To address the weaknesses the financial crisis revealed, the Commission launched an 
ambitious programme of reforms which implements  the decisions taken by the G20 summits since 
2008 and aims at tackling more structural issues. The roadmap for this programme was first laid 
out in the Commission Communication of 4 March 2009, "Driving European Recovery".50 The 
roadmap was described in detail in the European Commission Communication of 2 June 2010 entitled "Regulating financial services for sustainable growth".
51 These two documents are the first 
two initial steps in the EU's strategy to create a renewed and stronger regulatory framework to 
fight the consequences of the financial crisis.  
4.69.  Reform of EU financial sector has gone beyond mere crisis management and the roadmaps 
announced in 2009 and 2010. Additional initiatives were found necessary to address the new 
challenges that continued to emerge partly as a follow-up of the crisis. In particular one must keep 
in mind the special role played by the decision to set up a genuine banking union whose role is to break the negative interconnections between banks and public debt management. 
4.70.  Table 4.22 provides an overview of the legi slative instruments adopted since the last review 
and of those currently under negotiation or still at the planning stage and indicate their paper 
and/or electronic references. 
Table 4.22 Overview of legislative instrument 
1. Adopted legislation 
Capital Requirements Directive 3: new rules on  remuneration, prudential requirements and 
governance of financial institutions. Directive No. 2010/76/EU (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:329:0003:01:EN:HTML ) 
Introduction of the European Systemic Risk Bo ard and the European Supervisory Authorities for 
Banking, Securities and Markets, and Insuranc e and Pensions. Regulation No. 1092/2010 (viewed 
at: http://eur-lex.europa.eu/LexUriServ/LexUri Serv.do?uri=OJ:L:2010:331:0001:0011:EN:PDF ) 
Over-the-Counter Derivatives: European Market Infrastructure Regulation (EMIR) No. 648/2012 
(viewed at: http://eur-lex.europa.eu/LexUriServ/Le xUriServ.do?uri=CELEX:32012R0648:EN:NOT ) 
Short selling (Regulation (EU) No. 236/2012 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:086:0001:0024:en:PDF ) 
Alternative fund industry, including hedge funds. Alternative Investment Funds Managers Directive 
(AIFMD) No. 2011/61/EU (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:174:0001:01:EN:PDF ) 
Revision of Framework on Credit Rating Ag encies reforms (CRA I and II). Regulation 
No. 1060/2009 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:145:0030:0056:EN:PDF ) 
SEPA (Single Euro Payments Area). SEPA End Date Regulation  No. 260/2012 (viewed at: 
http://eur-lex.europa.eu/LexUriServ/Le xUriServ.do?uri=CELEX:32012R0260:EN:NOT ) 
Recommendation (2011/442/EU) on access to basic bank account (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:190:0087:0091:EN:PDF )  
"Quick fix" Directive Solvency II. Directive  No. 2009/138/EC (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0138:EN:NOT ) 
2. Proposals currently under negotiation  
Deposit Guarantee Schemes. European Commission document COM(2010) 368 final, 12 July 2010 
(viewed at: 
http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2010/com_2010_0368_en.pdf ) 
                                               
50 European Commission document COM(2009) 114 final, 4 March 2009. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52009DC0114:EN:NOT . 
51 European Commission document COM(2010) 301 final, 2 June 2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0301:FIN:EN:HTML.  WT/TPR/S/284 • European Union 
 
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  Investors Compensation Schemes. Proposal COM(2010) 371 final, 12 July 2010 (viewed at: 
http://ec.europa.eu/internal_market/securities/d ocs/isd/dir-97-9/proposal-modification_en.pdf )  
Omnibus 2. European Commission document COM(2011) 8 final, 19 January 2011 (viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=CELEX:52011PC0008:EN:NOT ) 
Mortgage Credit Directive. European Commission document COM(2011) 142 final, 31 March 2011 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011PC0142:EN:NOT ) 
Capital Requirements Directive IV. European Commission document COM(2011) 453 final, 
20 July 2011 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2011:0453:FIN:EN:PDF ) 
Market in Financial Instruments Directive and regulation. European Commission documents 
COM(2011) 656 final, 20 October 2011 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2011:0656:FIN:EN:PDF ) and COM(2011) 
652 final, 20 October 2011 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2011:0652:FIN:EN:PDF ) 
Market Abuse Regulation/CSMAD (Criminal sanctions on market abuse). European Commission 
documents COM(2011) 651 final, 20 October 2011 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2011:0651:FIN:EN:PDF ), including criminal 
sanctions; and COM(2011) 654 final, 20 October 2011 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2011:0654:FIN:EN:PDF ) 
Transparency Directive. European Commission document COM(2011) 683 final, 25 October 2011 
(viewed at: http://ec.europa.eu/internal_market/securities/docs/transparency/modifying-
proposal/20111025-provisional-proposal_en.pdf )  
Accounting Directive. European Commission document COM(2011) 684 final, 25 October 2011, to 
replace accounting directives (viewed at: 
http://ec.europa.eu/internal_market/accounting/docs/sme_accounting/review_directives/COM_20
11_684_en.pdf )  
Credit Rating Agencies III. European Commission documents COM(2011)746 final, 
15 November 2011 (viewed at: 
http://ec.europa.eu/internal_market/secu rities/docs/agencies/COM_2011_746_en.pdf ); and 
COM(2011) 747 final, 15 November 2011 (viewed at: 
http://ec.europa.eu/internal_market/secu rities/docs/agencies/COM_2011_747_en.pdf ) 
Audit. European Commission documents COM(2011) 778 final, 30 November 2011 (viewed at: 
http://ec.europa.eu/internal_market/au diting/docs/reform/directive_en.pdf ); and COM(2011) 
779 final, 30 November 2011 (viewed at: 
http://ec.europa.eu/internal_market/au diting/docs/reform/regulation_en.pdf ) 
Venture Capital. European Commission document COM(2011) 860/2, 7 December 2011 (viewed 
at: http://ec.europa.eu/internal_market/investment/docs/venture_capital/111207-
proposal_en.pdf ) 
Central Security Depositories Regulation. Europe an Commission document  COM(2012) 72 final, 
20 October 2012 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2011:0652:FIN:EN:PDF ) 
Bank Resolution. European Commission document COM(2012) 280 final, 6 June 2012 (viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=CELEX:52012PC0280:EN:NOT ) 
Insurance Mediation Directive. Directive 2012/92/EC (viewed at:  http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=CELEX:32002L0092:EN:HTML )  
Packaged Retail Investment Products (PRIPS ). European Commission document COM(2012) 
352 final, 3 July 2012 (viewed at: http://ec.europa.eu/internal_market/finservices-
retail/docs/investment_products/20120703-proposal_en.pdf ) 
UCITS5 (Undertakings for Collective In vestment in Transferable Securities) WT/TPR/S/284 • European Union 
 
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  SSM/EBA (Single Supervisory Mechanism/Amendments to Regulation establishing European 
Banking Authority) (viewed at: http://ec.europa.eu/commission_2010-
2014/barnier/headlines/news/2012/12/20121213_en.htm ) 
3. Examples of planned proposals 
Banking Union related proposals 
Shadow banking related legislation 
Revision of Anti-Money-Laundering Directive 
Bank Accounts Package 
Revision of Directive on institutions for occupational retirement provision (IORP Directive)  
Non-bank resolution 
Financial Conglomerates Directive 
Revision of Payment Services Directive (PSD) 
Source: Information provided by  the European Commission.  
4.71.  As "directive" is the most frequently used legislative instrument, Table A4.5 indicates the 
state of play of the transposition of financial se rvices directives already adopted but on a wider 
timespan (2006-13) than the time elapsed the last review in order to take into account the 
additional delays given to member States to transpose the directives. 
4.72.  These legislations and draft legislation have basically five aims around which their 
description can be organized: (I) creating a banking union, (II) reforming financial institutions and markets to improve stability, (III) reinforcing accountability of the financial system and its 
user-friendliness, and (IV) instituting a financial transaction tax while (V) not hampering market 
access. 
4.3.1.2.1  Banking union project  
4.73.  A major point on the Commission's regulato ry agenda is the Banking Union project. The 
Banking Union entails four major elements: a single rulebook, a Single Supervisory Mechanism (SSM), a European deposit guarantee system, and a European resolution framework for banks.  
4.74.  The SSM would apply to all the euro-area member States and is open to the participation of 
other member States who wish to embark on a pa th of deeper integration. Non-euro-area member 
States may decide to join the SSM by establishing close cooperation between their competent authorities and the ECB. In that case they may,  on an equal footing with the euro-area member 
States, participate in the activities of the newly created Supervisory Board which is in charge of 
planning and executing the supervisory tasks conferred upon the European Central Bank (ECB). 
4.75.  The Council of the European Union agreed on a position regarding the SSM Regulation on 
13 December 2012.
52 The regulation gives key supervisory tasks and powers to the ECB over all 
the credit institutions established within the euro  area. The ECB carries out its tasks within an SSM 
composed of ECB and national competent authoritie s. The ECB shall have particular responsibility 
for direct supervision of banks having assets of more than EUR 30 billion or constituting at least 
20% of their home country's GDP or which have requested or received direct public financial assistance from the European Financial Stability Facility  (EFSF) or the European Stability 
Mechanism. National supervisors will have respon sibility for less significant banks, while the ECB 
may at any time decide to directly supervise on e or more credit institution. The governance 
structure of the ECB will consist of a separa te Supervisory Board supported by a steering 
committee, the ECB Governing Council, and a mediation panel to solve disagreements that may 
arise between national competent authorities and the Governing Council. The SSM is envisaged to 
be in place by 1 March 2014. To allow for a smooth transition to the new mechanism, the ECB may extend the deadline. 
                                               
52 European Commission online information. Viewed at: http://ec.europa.eu/commission_2010-
2014/barnier/headlines/news/2012/12/20121213_en.htm.  WT/TPR/S/284 • European Union 
 
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  4.76.  After the establishment of the Single Supervisory Mechanism, the Commission intends to 
progress on the remaining pillars, i.e. a Common Deposit Guarantee Scheme for the protection of depositors as well as a single European recovery and resolution framework. Therefore, once the Council and the European Parliament agree on the existing Commission proposals on deposit 
guarantee
53 and bank recovery and resolution54, the Commission envisages proposing a single 
resolution mechanism to deal efficiently with cross-border bank resolution and to coordinate the application of resolution tools to banks.
55 
4.3.1.2.2  Reforming financial institut ions and markets to improve stability  
4.3.1.2.2.1  Financial supervision reform 4.77.  To cope with deficiencies in cooperation between nationally based supervisors, the EU has 
established several new European Supervisory Authorities (ESAs) that have been operational since 
January 2011: the European Banking Authority (EBA)
56, the European Insurance and Occupational 
Pensions Authority (EIOPA)57 and the European Securities and Markets Authority (ESMA).58 
4.78.  These new European authorities work together with Member States' supervisors to foster 
improved cross-border supervisory cooperation and work towards harmonized rules and their strict 
and coherent enforcement. More specifically, the ES As can (i) draw up specific rules for national 
authorities and financial institutions; (ii) take action in emergency situation (including banning 
certain products); (iii) mediate and settle disputes between national supervisors; and (iv) ensure 
the consistent application of EU law. 
4.79.  In addition, the ESAs have extensive emergency powers to coordinate with national 
supervisors and impose the necessary actions, in a harmonized way across Europe, if the 
European Council decides that turbulent market conditions warrant their use (Regulation 
1092/201059). Such measures can include bans on short-selling of securities, for example. 
4.80.  A European Systemic Risk Board (ESRB) was also established to monitor threats to the 
stability of the financial system as a whole. It provides early warning of system-wide risks that 
may be building up and, where necessary, issues recommendations to deal with them.  
4.81.  A general review of the European su pervisory architecture is planned for the 
end-2013/beginning-2014.  
4.3.1.2.2.2  Banks and insurance companies 4.82.  A key element of the reform programme has also been to increase the capital requirements 
for banks, investment firms and insurance companies.  
4.83.  The Capital Requirements Directive an d Regulation for banks and investment firms
60 which 
implements the Basel III framework into EU law, is of utmost importance for the strength and stability of the European banking sector and the creation of a single rule book. The European 
Commission, Council and Parliament announced on 28 February 2013 that provisional agreement 
had been reached on this proposal. 
                                               
53 European Commission document COM(2010) 368 final, 12 July 2010. Viewed at: 
http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2010/com_2010_0368_en.pdf . 
54 European Commission document COM(2012) 280 final, 6 June 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52012PC0280:EN:NOT . 
55 European Commission Press Release IP/12/953, 12 September 2012. Viewed at: 
http://europa.eu/rapid/press-release_IP-12-953_en.htm.  
56 EBA online information. Viewed at: http://www.eba.europa.eu/Home.aspx . 
57 EIOPA online information. Viewed at: https://eiopa.europa.eu/home/index.html . 
58 ESMA online information. Viewed at: http://www.esma.europa.eu/ . 
59 Regulation 1092/2010. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:331:0001:0011:EN:PDF . 
60 European Commission document COM(2011) 453 final, 20 July 2011. Viewed at:  http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0453:FIN:EN:PDF . WT/TPR/S/284 • European Union 
 
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  4.84.  For insurance companies, the Solvency II Directive (No. 2009/138/EC of 
25 November 200961) modernizes the capital rules by introducing risk-based capital requirements. 
The new system, which should begin to be applied by companies from 2014, introduces risk-based capital requirements and places greater emphasis on risk management. The Commission is 
awaiting agreement by the legislators on its primary legislative proposal
62 before tabling the 
implementing measures necessary in order to make the system fully operational.63  
4.85.  In June 2012, the Commission proposed a new comprehensive EU crisis management 
framework which would provide more comprehensive and effective arrangements to deal with 
failing banks. Under the draft Bank Resolution Directive64, public authorities will be in a position to 
act in a more coordinated way should banks be in difficulty. The framework provides public 
authorities with a wide-ranging toolbox of powers, including early intervention to reorganise a 
bank in difficulty and, if the financial situation of a bank deteriorates beyond repair, the power to 
ensure that its critical functions can be rescued, with the costs falling upon the bank's owners and creditors, and not on taxpayers. Cross-border cooperation mechanisms would be established, as 
these were clearly inadequate, as shown in recent years. The measures also foresee robust 
European financing arrangements, based on contributions from the banking sector itself. The aim is to avoid further recourse to taxpayers' money to rescue failing institutions. 
4.3.1.2.2.3  Credit rating agencies and auditors 
4.86.  With amendments to the Regulation on Credit Rating Agencies (No. 1060/2009
65) these 
agencies were made subject to EU-level supervis ion by the European Securities Markets Authority 
(mid-2011). The Commission has also proposed rules66 in order to reduce reliance on ratings in 
general, mitigate the concentrated market structure for ratings and underline the special 
responsibility of credit rating agencies regardin g sovereign debt ratings. The European Parliament 
and the Council agreed on this proposal in November 201267 that the CRA III Regulation can be 
formally adopted early-2013. 
4.87.  The Commission has also introduced legislative proposals affecting auditors68 to ensure their 
appropriate supervision and to minimise possible conflicts of interest. The proposal also aims at 
increasing choice and competition in a market currently dominated by the "big four" multinational 
auditors (PricewaterhousCoopers, KPMG, Ernst&Young , Deloitte). Some of the envisaged measures 
are mandatory rotation of audit firms after six ye ars, mandatory tendering of audit services by 
public-interest entities, prohibition of audit firms to provide non-audit services to their audit 
clients.  
                                               
61 Directive No. 2009/138/EC. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0138:EN:NOT . 
62 European Commission document COM(2011) 8 final, 19 January 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011PC0008:EN:NOT . 
63 The Framework Directive for Solvency II Directive needs to be complemented by level 2 delegated 
acts. Based on CEIOPS'/EIOPA's technical advice, the Co mmission Services have dr afted legal text for those 
measures. These draft delegated acts cannot, however, be formally adopted by th e Commission before the 
Omnibus II Directive enters into force. This is expected by the end of autumn 2013. 
64 European Commission document COM(2012) 280 final, 6 June 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52012PC0280:EN:NOT . 
65 Regulation No. 1060/2009. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:145:0030:0056:EN:PDF . 
66 European Commission documents COM(2011) 746 final, 15 November 2011. Viewed at: 
http://ec.europa.eu/internal_market/securities/docs/agencies/COM_2011_746_en.pdf ; and COM(2011) 
747 final, 15 November 2011. Viewed at: 
http://ec.europa.eu/internal_market/securities/docs/agencies/COM_2011_747_en.pdf . 
67 European Commission Press Release MEMO/12/911, 27 November 2012. Viewed at: 
http://europa.eu/rapid/press-release_MEMO-12-911_en.htm?locale=FR.  
68 European Commission documents COM(2011) 778 final, 30 November 2011. Viewed at: 
http://ec.europa.eu/internal_market/auditing/docs/reform/directive_en.pdf ; and COM(2011) 779 final, 
30 November 2011 http://ec.europa.eu/intern al_market/auditing/docs/ reform/regulation_en.pdf . WT/TPR/S/284 • European Union 
 
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  4.3.1.2.2.4  Securities markets and derivatives 
4.88.  The objective of the European Market Infrastructure Regulation (EMIR) (No. 648/201269), 
which entered into force in August 2012, is to increase transparency in over-the-counter (OTC) trading of derivatives. The Regulation provides for detailed information on OTC derivative contracts 
to be reported to trade repositories that centrally collect and maintain the records of OTC 
derivatives. This information will also be made accessible to supervisory authorities. In addition, certain standardised OTC derivative contracts will have to be cleared through central 
counterparties (CCPs), thus reducing the risk that a counterpart may not pay. The ESAs are now 
developing the technical standards required to support the implementation of this new legislation. 
4.89.  In October 2011, the Commission presented new legislative proposals to revise the rules on 
markets in financial instruments.
70 The proposals aim at making fi nancial markets more efficient, 
resilient and transparent, and strengthen invest or protection. They extend the existing rules 
regarding transparency and conduct of business to new and innovative types of trading platforms, 
thus ensuring safety and creating a level playing fi eld. The new rules will also allow supervisors to 
ban specific products, services or practices in case of threat to investor protection, financial 
stability or the orderly functioning of markets. 
4.90.  To complete the framework of common rules governing securities infrastructures such as 
trading platforms, trade repositories, and CCPs, in March 2012 the Commission proposed draft 
legislation regarding Central Securities Depositories (CSDs).71 This proposal, if and when adopted, 
would bring more safety and efficiency to securities settlement in Europe. It also seeks to shorten the time it takes for securities settlement and to minimise settlement failures. 
4.3.1.2.2.5  Speculative trading practices th at may lead to excessive market volatility 
4.91.  The EU adopted new regulation and supervis ion on the alternative fund industry, including 
hedge funds, in the Alternative Investment Funds Managers Directive (AIFMD) No. 2011/61/EU.
72 
4.92.  Legislation has also been adopted to increa se transparency in short selling with the aim of 
helping regulators detect risks (Regulation (EU) No. 236/2012).73 In exceptional circumstances, 
supervisors will have the power to restrict or even ban short selling. To implement this legislation, 
in summer 2012 the European Commission set out detailed rules, based on the work of the 
European Securities and Markets Authority (ESMA), aimed at reducing the risk of settlement failures linked to certain types of short selling, as well as the means by which market participants should disclose significant short positions to the market. The rules also specify the cases in which 
sovereign credit default swaps are considered covered, and therefore not banned. 
4.93.  The same legislation also addresses the problems associated with credit default swaps 
(CDSs) when used speculatively. As a result, the CDS market has become more transparent and 
naked CDSs on government debt in the EU is, in general, banned as an unhelpful form of 
speculation.  
4.3.1.2.3  Reinforcing the accountability of th e financial system and its user friendliness 
4.94.  The crisis revealed the financial sector's careless short-term behaviour, characterised in 
particular by a lack of responsibility and acco untability. To counteract this behaviour, the EU 
introduced binding rules on compensation practices for banks and investment firms  (for instance in 
articles 1.4, 1.10.(a), 1.18, 3.2, and Annex I of the Directive 2010/76/EU of the European 
                                               
69 Regulation No. 648/2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012R0648:EN:NOT . 
70 European Commission documents COM (2011) 656 final, 20 October 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0656:FIN:EN:PDF ; and COM(2011) 652 final, 
20 October 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0652:FIN:EN:PDF . 
71 European Commission document COM(2012) 73 final, 7 March 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0073:FIN:EN:PDF . 
72 Regulation (EU) No. 2011/61/EU. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:174:0001:01:EN:PDF . 
73 Regulation (EU) No. 236/2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:086:0001:0024:en:PDF . WT/TPR/S/284 • European Union 
 
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  Parliament and of the Council of 24 Nove mber 2010 amending Directives 2006/48/EC and 
2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies
74). 
4.95.  Further legislative initiatives aim at increasing the responsibility of boards of financial 
institutions and improving the supervision of senior management in order to establish a sound risk 
culture at all levels (see Capital RD III Directive No. 2010/76/EU75 and CRD IV76).  
4.96.  In recent years financial markets have become increasingly global, giving rise to new 
trading platforms and technologies. This has also le d to new possibilities for manipulation of these 
markets. As part of the initiatives taken to make financial markets more sound and transparent, in October 2011, the European Commission presented legislative proposals on insider dealing and market manipulation.
77 These proposals are currently being discussed by the European Parliament 
and the Council. 
4.97.  Sanctions are another instrument to ensure that financial services providers bear full 
responsibility for their behaviour. But sanctions differ widely across EU member States and are 
sometimes trifling. The Commission has therefore proposed EU-level measures to achieve greater 
convergence of national regimes with sufficient deterrents. It also proposed to increase the powers of supervisors to investigate and penalise market abuse by, for instance, setting a minimum 
amount for fines.  
4.98.  In July 2012 the Commission presented a legislative package that raises standards and 
removes loopholes for the benefit of consumer s, the "Packaged Retail Investment Products" 
(PRIPS).
78 The package entails:  
 new, consumer-friendly standards on informat ion about investments. The draft legislation 
requires that every designer of investment products will have to produce a 'key information 
document' on the product's main features, as well as the risks and costs associated with 
investment in that product;  
 strengthened standards for the sale of and advice on insurance products, irrespective of 
whether they are sold directly by an insurance undertaking or indirectly via an intermediary 
(such as a broker or agent); and 
 stricter rules on investment funds marketed and sold to retail investors to ensure their 
soundness, including by defining precisely the tasks and liabilities of all depositaries acting 
on behalf of such funds; clear rules on the remuneration of fund managers; and a common approach to how breaches of the legal framework would be sanctioned. 
4.99.  The Commission has proposed amendments in the Deposit Guarantee Scheme Directive to 
increase the confidence of bank-account holders by  further harmonizing the protection of deposits, 
ensuring faster pay-outs, and improving th e financing of deposit guarantee schemes.
79 
4.100.  Similar proposals are tabled to ensure a minimum of €50,000 protection for investors in 
the event of fraud or failure of an investment company. 
                                               
74 Directive 2010/76/EU. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:329:0003:01:en:HTML  
75 Directive No. 2010/76/EU. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:329:0003:01:EN:HTML . 
76 European Commission document COM(2011) 453 final, 20 July 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0453:FIN:EN:PDF . 
77 European Commission documents COM(2011) 651 final (market abuse), 20 October 2011. Viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0651:FIN:EN:PDF ; and COM(2011) 654 
final (including criminal sanctions), 20 October 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0654:FIN:EN:PDF . 
78 European Commission document COM(2012) 352 final, 3 July 2012. Viewed at:  
http://ec.europa.eu/internal_market/finservices-retail/docs/investment_products/20120703-proposal_en.pdf . 
79 European Commission document COM(2010) 368 final, 12 July 2010. Viewed at: 
http://ec.europa.eu/governance/impact/ia_carried_out/docs/ia_2010/com_2010_0368_en.pdf . WT/TPR/S/284 • European Union 
 
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  4.101.  The Commission has proposed legislation ensuring that residential mortgage lending is 
tailored to consumers' needs and their ability to repay.80 The proposed legislation covers all loans 
which allow the consumer to borrow money in order to buy a home. All lenders and intermediaries must act in an honest and professional manner when offering and granting a mortgage loan and 
consumers should provide lenders with all necessary information to make a responsible decision. 
The proposal would also ensure that all mortga ge lenders and intermediaries are appropriately 
regulated and supervised.  
4.102.  In the area of payments, the SEPA End-Date Regulation (No. 260/2012
81) foresees 
pan-European SEPA credit transfers and direct debits across the euro area replacing domestic 
payment schemes as of February 2014. Customer s and banks now have the opportunity to fully 
migrate to these pan-European core-payment instruments, avoiding the cost of operating dual 
payment systems and being able to reap the benefits of SEPA. 
4.3.1.2.4  Instituting a financial transaction tax 4.103.  Table 4.23 describes the draft financial transaction tax that 11 member States are now 
negotiating. At EU level under the specific legal framework of "enhanced cooperation". Enhanced 
cooperation is a procedure used when a group of at least nine member States decide to move ahead with an initiative proposed by the Commission, once it proves impossible to reach 
unanimous agreement within a reasonable period. It is relevant only to policy areas which require 
unanimity, and its aim is to overcome a situation whereby certain member States are prevented from advancing with a common approach due to the reluctance and non-agreement of others. The conditions and procedures for enhanced cooperation are set out in Article 20 of the Treaty on 
European Union (TEU) and Articles 326 to 334 of th e Treaty on the Functioning of the European 
Union (TFEU). 
Table 4.23 Main elements of the planned financial transaction tax 
Chronology and references 
 28 September 2011: initial proposal for a Council directive on a common system of financial transaction 
tax (FTT) and amending directive 2008/7/EC. European Commission document COM(2011) 594 final, 
28 September 2011 (viewed at: 
http://ec.europa.eu/taxation_customs/resources/doc uments/taxation/other_taxes/financial_sector/com
(2011)594_en.pdf ). 
 June-July 2012: no unanimous support in the ECOFIN Council for a common system of FTT in the Union 
as a whole as proposed by the Commission in the foreseeable future. 
 28 September 2012: reception by the Commission of requests from 11 members States (Austria, 
Belgium, Estonia, France, Germany,  Greece, Italy, Portugal, Sloven ia, Slovak Republic, and Spain), 
representing 2/3 of EU GDP, aski ng it to submit a proposal for a Council decision to authorize an 
enhanced cooperationa based on the original Commission FTT proposal. 
 23 October 2012: proposal by the Commission to the Council to authorize enhanced cooperation in the 
area of FTT. 
 12 December 2012: consent by the European Parliament to the latter proposal.  
 22 January 2013: adoption by the Council of a decision authorizing 11 member States to go ahead with 
enhanced cooperation on a common system of FTT (2 3 member States voting "yes" and 4 abstaining). 
Decision 2013/52/EU, 25 January 2013 (viewed at: http://eur-
lex.europa.eu/Result.do?T1=V4&T2=2013&T3=5 2&RechType=RECH_naturel&Submit=Search ). 
 14 February 2013: adoption by the European Commission of a proposal for a Council directive 
implementing enhanced cooperation in the area of FTT. European Commission document COM(2013) 
71 final, 14 February 2013 (viewed at: 
http://ec.europa.eu/taxation_customs/resources/documents/taxation/com_2013_71_en.pdf ). 
                                               
80 Consumer Mortgage Directive (European Commission document COM(2011) 142, 31 March 2011.  
Viewed at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011PC0142:EN:NOT) . 
81 Regulation No. 260/2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32012R0260:EN:NOT . WT/TPR/S/284 • European Union 
 
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  Objectives of the FTT 
 To harmonise legislation concerning indirect taxation to tackle fragmentation of  the Single Market that 
an uncoordinated patchwork of national financial transaction taxes would create. 
 To ensure that the financial sector makes a fair an d substantial contribution to public finances in 
covering the costs of the crisis, and to create a le vel playing field with other sectors from a taxation 
point of view. 
 To create appropriate disincentives fo r financial transactions which do no t contribute to the efficiency of 
financial markets or to the real economy. 
Scope of the FTT 
 The base of the tax is very wide, covering transactions carried out by financial institutions on all 
financial instruments and markets,  once there is an established economic link to the FTT zone. 
 The rates are low, at 0.1% for shares and bonds, un its of collective investment funds, money-market 
instruments, repurchase agreemen ts and securities-lending agreem ents, and 0.01% for derivative 
products. These are proposed minimu m rates, and participating member  States would be free to apply 
higher rates if they wanted to. The tax would have to be paid by each financial institution involved in 
the transaction. 
 Day-to-day financial activities of ordinary citizens  and businesses (e.g. insurance contracts, mortgage 
and business lending, credit card  transactions, payment services, deposits, spot currency transactions 
etc.) are excluded from the FTT, in order to protect the real economy.  
 The raising of capital (i.e. primary issuance of shares and bonds, units of collective investment funds) 
and certain restructuring operations  will not be taxed. Also exclud ed from the scope of the FTT are 
financial transactions with the ECB and national central banks, the EFSF and ESM. 
 The "residence principle" remains a core element to safeguard against the relocation of financial 
transactions. Under the residence principle, who is pa rty to the transaction is what counts, not where it 
takes place. If a financial institution involved in the transaction is established in the FTT zone, or is 
acting on behalf of a party established in this zone , then the transaction will be taxed, regardless of 
where it takes place in the world. 
To further prevent avoidance of the tax, the Commission  has added to this proposal the "issuance principle". 
This means that a transaction will also be taxed, whenever and wherever it takes place, if it involves financial 
instruments issued by a company or entity whose registered seat is in one of the participating member States. 
Expected benefits 
A common FTT will ensure a fairer contribution to publ ic finances from the financia l sector, which is currently 
under-taxed by about €18 billion a year in the EU, and which has benefited greatly from rescue operations 
pre-financed by tax payers.  
It will reduce fragmentation of the Single Market, by ha ving a single system for taxing financial transactions 
which covers 11 member States.  
Importantly, those that participate in enhanced cooperat ion on the FTT will also have a significant new source 
of revenue without a placing further burden on the ordinary citizen.  
Expected revenue and planned use of this revenue 
The proposed FTT applied under enhanced cooperation is expected to generate €30-35 billion a year, 
corresponding to 1% of the particip ating member States' tax revenues.  
The Commission has proposed that a portion of the revenue could be used  as an own resource for the EU 
budget, resulting in a corresponding reduction of the national GNI contributions of participating member 
States. The money for the national bu dgets could be used to help conso lidate public finances, invest in 
growth-promoting activity, or meet development-aid co mmitments. Ultimately, it will be for participating 
member States to decide how the re venues of the FTT should be used. 
Assessment of tax avoida nce and relocation risks 
The "residence principle" ensures that if any party to the transaction is established in the FTT zone, the 
transaction is taxed, regardless of where in the world it takes place. This means that financial operators would 
only be able to avoid the FTT if they were prepared to relocate, abandon all their clients in the 11 member 
States, and refrain from any interaction with financial institutions established in the participating member 
States. This makes relocation  a very unlikely response, particularly co nsidering the low rate of the proposed 
FTT and the fact that the part icipating member States comprise two thirds of EU GDP. 
In addition, the proposal further reinforces the safegu ards against relocation. Unde r the issuance principle, 
financial products issued in the 11 member States will be taxed when traded, even if those trading them are 
not established within the FTT zone. Again, this removes any incentive to relocate in order to avoid the tax.  WT/TPR/S/284 • European Union 
 
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  Planned implementation calendar 
The proposal foresees the FTT for the 11 member Stat es taking effect on 1 January 2014. Obviously, it 
depends on the Council reaching agreement on the proposal in time to respect this proposed implementation 
date. The European Parliament, the European Economic and Social Comm ittee and national parliaments will 
also be consulted, and national transposition would then be needed. 
a The conditions and procedures for enhanced cooper ation are set out in Article 20 of the Treaty on 
European Union (TEU) and Articles 326 to 334 of the Treaty on the Functioning of the European 
Union (TFEU). 
Source: Information provided by  the European Commission.  
4.3.1.2.5  Third-country regime  
4.104.  The new European legislation on financial services does not introduce new market access 
or national-treatment limitations. It establishe s a new and comprehensive regulatory framework 
and extends regulation over new markets, entities, and activities. 
4.105.  Regarding cross-border supply of services, most of the recent legislation adopted by the 
EU includes third-country regimes under which fore ign-based operators are allowed to pursue their 
activities linked with European financial markets, provided that certain prudential requirements are 
met, in particular that the regulatory system under which they operate locally is considered of equivalent quality with that of the EU.  
4.106.  This system thus guarantees that, for instance, foreign credit-rating agencies and foreign 
auditors can provide their services to European consumers from abroad if their national supervisory and regulatory systems have been granted equivalence by the European Commission 
on the basis of recommendations by European independent supervisory agencies. 
4.107.  Table 4.24 gives an overview of the equi valence decisions adopted under the EU financial 
services legislations. 
Table 4.24 State of play of equivalence decisions 
Legal instruments Detailed status  
Prospectus Directive  
Directive 2003/71/EC of 4 November 2003 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2003:345:0064:0089:EN:PDF )  No equivalence decisions have been taken by the 
Commission so far. 
Transparency Directive  
Directive 2004/109/EC of 15 December 2004 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2004:390:0038:0057:EN:PDF )  Commission Decision 2008/961, as amended by 
Decision 2012/194, recognizes  as equivalent to the 
IFRS the generally accepted  accounting principles of 
China; Japan; the Republic of Korea; and the United 
States. 
Anti-Money Laundering 
Directive/Counter-Financing of Terrorism Directive 2005/60/EC of 26 October 2005 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2005:309:0015:0036:EN:PDF )  EU member States agreed a list of equivalent third 
countries, which are Australia; Brazil; Canada; Hong Kong, China; India; Japan; Mexico; Republic of Korea; Singapore; Switzerland; South Africa; and 
the United States.
a  
Alternative Investment Fund Managers 
Directive (AIFMD) 
Directive 2011/61/EU of 8 June 2011 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2011:174:0001:0073:EN:PDF )  AIFMD will apply as of 22 July 2013. No equivalence 
assessment process is under way. 
Regulation on Credit Rating Agencies (CRA 
Regulation) Regulation (EC) No. 1060/2009 of 
16 September 2009 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2009:302:0001:0031:EN:PDF )  The Commission has adopted equivalence decisions 
on Australia, Canada, Japan, and the United States.b 
Furthermore the Commission asked ESMA to 
provide technical advice by end of May 2013 with a 
view to declaring Argentina; Brazil; Hong Kong, China; Mexico; and Si ngapore equivalent. WT/TPR/S/284 • European Union 
 
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  Legal instruments Detailed status  
Statutory Audit Directive 
Directive 2006/43/EC of 17 May 2006 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2006:157:0087:0107:EN:PDF )  Commission Decision 2008/627/EC of 29 July 2008 
concerning a transitional pe riod for audit activities 
of certain third-country auditors and audit entities 
allowed the auditors and audit entities from 34 third 
countries to continue their activities in the EU in 
relation to audit reports concerning the annual or 
consolidated accounts for financial years starting 
during the period from 29 June 2008 to 1 July 2010. 
These third countries/territories were: Argentina; 
Australia; Bahamas; Bermuda; Brazil; Canada; 
Cayman Islands; Chile; China; Chinese Taipei; 
Croatia; Guernsey; Jersey; Isle of Man; Hong Kong, 
China; India; Indonesia; Israel; Japan; Kazakhstan; 
Korea; Malaysia; Mauritius; Mexico; Morocco; 
New Zealand; Pakistan; Russia; Singapore; 
South Africa; Switzerland; Thailand; Turkey; 
Ukraine; United Arab Emirates; and United States. 
Commission Decision 2011/30/EU of 
19 January 2011 concerning the equivalence of 
certain third-country public oversight, quality 
assurance, investigation and penalty systems for 
auditors and audit entities and a transitional period 
for audit activities of certain third-country auditors 
and audit entities in the EU:  
(i) declared equivalent 10 third countries: Australia; 
Canada; China; Croatia; Ja pan; Korea; Singapore; 
South Africa; Switzerland; and United States. The 
equivalence decision for the United States was 
limited in time and will cease to apply on 
31 July 2013 in order to review and assess the 
progress made towards reaching mutual reliance; 
and (ii) extended the transitional period to the 
following countries/territori es: Abu Dhabi; Bermuda; 
Brazil; Cayman Islands; Chinese Taipei; Dubai; 
Egypt; Guernsey; Hong Kong, China; India; 
Indonesia; Isle of Man; Israel; Jersey; Malaysia; 
Mauritius; New Zealand; Russia; Thailand; and 
Turkey. 
Short Selling Regulation 
Regulation (EU) No. 236/2012 of 14 March 2012  
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2012:086:0001:0024:EN:PDF )  No equivalence assessment process is currently 
under way.  
Regulation on OTC derivatives, central 
counterparties and trade repositories 
(EMiR)  
Regulation (EU) No. 648/2012 of 4 July 2012 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2012:201:0001:0059:EN:PDF )  After ESMA provides its technical analysis, the 
Commission will proceed with an assessment of 
whether to grant equivalence. 
 
Solvency II Directive for insurance and 
reinsurance undertakings Directive 2009/138/EC of 25 November 2009 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2009:335:0001:0155:EN:PDF )  In October 2010, the Commission asked EIOPA to 
assess the equivalence of Bermuda, Japan, and Switzerland. EIOPA's advice concluded that each of the third countries was equivalent, but with certain caveats. The Commission has asked EIOPA to revisit its assessment once the delegated acts are adopted 
in order to verify whether any amendments to the 
criteria or any changes made to the Bermudan, Japanese, and Swiss solvency and prudential regimes affect the conclusions reached in the reports. Once this review is complete, the 
Commission will take its decisions on the 
equivalence of those third countries. WT/TPR/S/284 • European Union 
 
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  Legal instruments Detailed status  
UCITS Directive 
Directive 2001/108/EC of 21 January 2002 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2002:041:0035:0042:EN:PDF )  Equivalence decisions are taken by the competent 
authorities of the UCITS home member State. 
Financial Conglomerates Directive 
Directive 2002/87/EC of 16 December 2002 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2003:035:0001:0027:EN:PDF )  Individual equivalence decisions are taken by the 
competent national authorities.  
Capital Requirements Directive 
Directive 2006/48/EC of 14 June 2006 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2006:177:0001:0200:EN:PDF ) Individual equivalence decisions are taken by the 
competent national authorities. 
Proposed legal instruments  
 The Commission's proposals on a Directive on 
markets in financial instruments (MiFID II)c, a 
Regulation on markets in financial instruments (MiFIR)
d, and a Regulation on improving securities 
settlement in the European Union and on central securities depositories (CSDs Regulation)
e, contain 
equivalence provisions. The proposals are currently 
under negotiation in the European Parliament and the Council. 
a For further information, se e European Commission online  information. Viewed at: 
http://ec.europa.eu/internal_market/company/docs/financial-crime/3rd-country-equivalence-
list_en.pdf . 
b For Australia and the United States, see Commission Implementing Decision of 5 October 2012, 
Official Journal  L 278, 12 October 2012, pp. 17 and 32. For Canada, see Commission Implementing 
Decision of 5 October 2012, Official Journal  L 274, 9 October 2012, p.30. For Japan, see Commission 
Decision of 28 September 2010, Official Journal  L 254, 29 September 2010, p. 46. 
c Directive of the European Parliament and of the Council on markets in financial instruments 
repealing Directive 2004/39/EC of the European Pa rliament and of the Council (Recast). European 
Commission document COM(2011) 656 final, 20 October 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0656:FIN:EN:PDF .  
d Regulation of the European Parliament and of the Council on markets in financial instruments and 
amending Regulation [EMIR] on OTC derivatives, central counter parties and trade repositories. 
European Commission document COM(2011) 652 final, 20 October 2011. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0652:FIN:EN:PDF .  
e Proposal for a Regulation of the European Parlia ment and of the Council on improving securities 
settlement in the European Union and on central securities depo sitories (CSDs) and amending 
Directive 98/26/EC. European Commission docu ment COM(2012) 73 final, 7 March 2012 . Viewed 
at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0073:FIN:EN:PDF .  
Source: Information provided by the European  Commission. 
4.108.  Concerning commercial presence and in particular subsidiaries, European regulations 
continue to apply to all financial operators regardless of their origin. Foreign-owned subsidiaries 
can benefit from a "European passport" allowing them to pursue their activities in the whole 
European internal market. 
4.109.  Regarding branches, several EU financial regulations give competence to member States to 
authorize and supervise activities of branches in  their territory, provided they respect minimum 
standards in such authorization and supervision. The activity of the branch is limited to the 
territory of the member State which authorises the third-country company to establish a branch. 
For example, the capital requirement directives and the regulation setting up a Single Supervisory 
Mechanism give member States (and national supe rvisors) competence to authorize and supervise 
branches of foreign banks wanting to establish themselves in their territory. 
4.110.  The same authorization system will be applied to branches in the insurance and 
reinsurance sectors under the Solvency II regime. Indeed, harmonized requirements on branches 
belonging to insurance or reinsurance undertakings with head offices situated outside the EU will 
also be introduced by Solvency II. Member States  are required to make such branches subject to 
an authorization, and Solvency II sets out the conditions for granting authorization. WT/TPR/S/284 • European Union 
 
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  4.111.  Furthermore, in the Commission's MiFID II proposal, the "European passport" referred to 
above can be granted to foreign companies' branches. 
4.3.1.2.6  Planned next steps of financial services reform 
4.112.  The planned next steps of the reform touch on five different points: 
 Completing the banking union : alongside the proposal on Single Supervisory Mechanism, 
the Commission will launch initiatives to create a complete banking union, including a single 
EU deposit guarantee scheme and a centralized EU approach to deal with bank failure and 
resolution. 
 Structural reform in the banking sector : the Commission is looking at the 
recommendations of the high-level group led by  Erkki Liikanen and will decide on how best 
to follow them up. The Liikanen group was mandated to assess whether further reforms 
directly targeted at the structure of individual banks themselves and at the banking system 
as a whole may further enhance the stability and efficiency of the banking sector and its 
ability to serve and protect the needs of citi zens and better support the EU economy and the 
single market.  
 Shadow banking : in early 2013, the Commission will present a roadmap on shadow 
banking in the EU focusing on three priorities : first, the strengthening of transparency and 
data collection and monitoring; second, money market funds, and, third, strengthening 
policies in the field of repo and securities lending transactions. The Commission also plans to 
bring forward draft legislation on securities law with a view to clarifying who owns what. This 
will help further to improve transparency, safe ty and investor rights in the single market. 
 A crisis management framework for ot her important financial institutions : together 
with its international partners, the Commission services are reflecting on what arrangements 
might be needed to prevent the failure of systemically important financial institutions, apart 
from banks, from compromising financial stability.  
 Payments : the Commission plans an integrated European market for innovative payment 
methods. A Green Paper on card, internet and mobile payments, the fastest-growing retail 
payment methods in Europe, was published in January 2012.82 The Commission plans to 
adopt legislative proposals addressing the obstacles for market integration in these areas in 
the first half of 2013. The Commission is also looking at issues such as the right of access to 
a basic payment account for all EU citizens and residents, and measures to improve the transparency and comparison of bank fees and to facilitate bank account switching within 
the EU.  
4.3.2  Environmental services  4.113.  Environmental services constitute an important economic sector for the EU as their two 
main susbsectors (water collection treatment and supply on the one hand, and sewerage, waste 
management, and remediation on the other hand
83) employed 1,037,000 persons84 in 2007 and 
accounted for a gross value added of €100.5 billion  (€29.6 billion for water, €69.8 billion for the 
remainder), i.e. an approximate turnover of €250 billion.85 
4.114.  Table 4.25 gives an overview of the econ omic importance of the environmental services 
subsectors in the EU. Table A4.6 provides a brea kdown by member States of employment figures 
for the sector.  
                                               
82 European Commission online information. Viewed at: 
http://ec.europa.eu/internal_market/consultations/2012/card_internet_mobile_payments_en.htm . 
83 These categories corresponds respectively to item s E-36 and E37-39 of the NACE rev2 EU statistical 
nomenclature. 
84 These figures do not include Spain, Sweden, an d the United Kingdom for which no data were 
available. 
85 The ratio output/value added of these two sectors is estimated at  approximately 2.5. WT/TPR/S/284 • European Union 
 
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  Table 4.25 Importance of the environmental protection sector in the EU economy, 
2010-11 
  2010 2011 
Employment of water collection treatment and 
supply ('000) 255,700 .. 
Employment of sewerage, waste management, 
and remediation activities ('000) 781,300 .. 
Total output € million 23,046,636 24,111,715 
Gross domestic product at market prices (GDP) € million  12,279,915 12,642,729 
Output of water collection, treatment, and supply % of total 
output 0.27 0.27 
Output of sewerage, waste management, and 
remediation activities  % of total 
output 0.91 0.90 
Gross value added of water collection, treatment, 
and supply % of GDP 0.24 0.24 
Gross value added of sewerage, waste 
management, and remediation activities % of GDP 0.63 0.64 
.. Not available.  
Source: Information provided by  the European Commission.  
4.115.  There is no detailed split by member St ate of the environmental services market but 
Table 4.26 details, by member State, the size of the environmental market, including both 
environmental equipment and environmental services. 
Table 4.26 European and global environmenta l market, detailed by EU member States, 
2010-12 
(US$ billion) 
Country 2010 2011 2012 
Austria 6.3 6.5 6.6 
Belgium 5.4 5.5 5.6 
Bulgaria 0.2 0.3 0.3 
Czech Republic 1.3 1.3 1.4 
Denmark 4.6 4.7 4.7 
Estonia 0.1 0.1 0.1 
Finland 4.0 4.1 4.2 
France 35.3 35.8 36.0 
Germany 74.1 76.3 77.2 
Greece 2.6 2.5 2.4 
Hungary 1.0 1.0 1.0 
Ireland 3.0 3.0 3.1 
Italy 22.2 22.3 22.4 
Latvia 0.1 0.2 0.2 
Lithuania 0.3 0.3 0.3 
Luxembourg 0.6 0.6 0.6 
Netherlands 14.2 14.4 14.6 
Poland 5.0 5.2 5.4 
Portugal 2.4 2.3 2.3 
Romania 0.7 0.8 0.8 
Slovakia 0.6 0.6 0.6 
Slovenia 0.4 0.4 0.4 
Spain 17.1 17.3 17.0 
Sweden 7.1 7.4 7.7 
United Kingdom 39.5 39.8 40.1 
Total EU (save Malta and Cyprus) 248.1 252.7 259.4 
Total world market  834.0 866.0 897.0 
Total EU as % of world market  29.7 29.2 28.4 
Source: Environmental Business International Inc. WT/TPR/S/284 • European Union 
 
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  4.116.  At a European-wide level, however, detailed statistics of the various subsegments of 
environmental services are available and appear in  Table 4.27, which shows that, depending of the 
subsector concerned, the EU accounts for approximately 20% to 25% of the global environmental services market.  
Table 4.27 European and global environm ent market, by segment, 2008 and 2010 
(US$ billion) 
  2008 2010 
Total 
Europea Total 
world  Europe 
as % of 
world 
market Total 
Europea Total 
world Europe 
as % of 
world 
market 
Equipment       
Water equipment and 
chemicals 20.5 67.6 30.3 19.5 68.9 28.3 
Air pollution control 16.5 52.4 31.5 14.9 49.4 30.2  
Instruments and information 
systems 2.4 9.3 25.8 2.2 9.0 24.5 
Waste management equipment 11.9 37 32.3 10.8 32.6 33.3 
Process and prevention 
technology 0.8 4.4 17.8 0.7 4.0 17.7 
Services        
Solid waste management 37.7 141.6 26.6 38.9 140.7 27.7 
Hazardous waste management 6.8 22.9 29.6 6.2 22.1 27.9 
Consulting and engineering 19.2 52.1 36.8 18.8 52.0 36.2 
Remediation/industrial services 10.6 41.3 25.7 10.0 39.0 25.8 
Analytical services 1.5 5.2 28.1 1.4 5.2 27.4 
Water treatment works 36.8 109.5 33.6 36.9 117.1 31.5 
Water utilities 39.5 124.6 31.7 39.4 131.2 30.0 
Resource recovery 23.8 50.9 46.8 22.0 48.2 45.7 
Clean energy systems and 
power 33.8 94.9 35.6 42.7 114.7 37.3 
Total services 209.7 643 32.6 216.5 670.2 32.3 
a Europe = EU-27 (save Malta and Cyprus) + Switze rland, Iceland, Bosnia, Croatia, and Russia.  
Source: Environmental Business International Inc. 
4.117.  Tables 4.28 to 4.30 below detail the ma in economic indicators and the existing and 
planned regulatory regimes of the various environmental services.  
Table 4.28 Market structure and regulatory framework of water services 
Water utilities and waste water treatment services 
EU share of the 
global market 
(2010) Water utilities: 30% (source EBI). Water treatment works: 31.5% (source EBI) 
Market size, 
number of firms, 
and employees 
(2010) Water utilities: US$39.4 billion of revenues (source EBI); €50 billion (source: 
EUROSTAT). Water treatment works: US$36.9 billion of revenues (source EBI); 
3.7 million employees (collection, purification, and distribution of water only) 
EU: 33% of Europeans served by economic operators (according to International 
Federation). France: 72% of the populati on served through se rvice concessions; 
2,536 concessions underway in 2007 with 700 concessions re-opened every year.  
Spain: 36% of the population served und er a concession contract, 16% served 
through IPPPs, some under-concession cont racts. Germany: 6% of the population 
served by private companies, 39% by  IPPPs. Italy: growing 20% of the 
population served by private or mixe d entities of private water operators 
(Aquafed) 
Main private 
companies Suez (France), Veolia Environnement (France), Aguas de Barcelona 
(Spain),Thames Water (UK), SAUR (Fra nce), FCC/Aqualia( Spain), Proactiva 
(France/Spain), Sacyr Va llehermoso/Valoriza/AGS (Spain), ACS-Dragados 
(Spain), Gelsenwasser (Germany), RWE (Germany), Energie AG (Austria), 
EVN(Austria), Berlinwasser (Germany), ACEA (Italy) WT/TPR/S/284 • European Union 
 
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  Water utilities and waste water treatment services 
Level of regulation EU; member States (for member States' regulations, see Table A4.7 on the 
modalities of private sector participation in the management of water utilities) 
Main "qualitative" 
regulations Directive 2000/60/EC establishing a framew ork for Community action in the field 
of water policy so-called "Water framework directive" (viewed at: http://eur-
lex.europa.eu/LexUriServ/site/fr /consleg/2000/L/02000L0060-20011216-fr.pdf ) 
Council Directive 98/83/EC on the quality of water intended for human 
consumption (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:31998L0083:en:NOT ) 
Directive 91/271/EEC concerning urban waste-water treatment (viewed at: 
http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:31991L0271:EN:NOT ) 
amended by Directive 98/15/EC (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:31998L0015:EN:NOT ) 
Water Framework Directive 2000/60 expands th e scope of water protection to all 
waters and sets clear objectives that a "good status" must be achieved for all 
European waters by 2015 and that water use must be sustainable throughout 
Europe. It does not specifically address water utilities and waste water treatment 
services but contains one article (Article 9) on water services in a much broader 
sense: irrigation, self-abstraction, flood protection, navigation, and drinking water 
supply and waste water treatment 
Main "economic" 
regulations Directive 2004/18/EC on the coordination of  procedures for the award of public 
works contracts, public supply contracts and public service contracts (viewed at: 
http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:32004L0018:en:NOT )  
Directive 2004/17/EC coordinating the pr ocurement procedur es of entities 
operating in the water, energy, transport and postal services sectors (viewed at: 
http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=OJ:L:2004:134:0001:0113:en:PDF ) 
For more detailed rules applicable to the va rious type of contracts, see Table A4.8 
on the rules of public procurement direct ives applicable to public contracts and 
concessions 
Ongoing EU level 
regulatory 
developments Concessions are partnerships between th e public sector and mostly private 
companies, where the latter exclusivel y operate, maintain and carry out the 
development of infrastructure (ports, wa ter distribution, parking garages, toll 
roads) or provide services of general economic interest (energy, water and waste 
disposal, for example). Concessions are the most common form of public private 
partnership (PPP). Unlike pu blic contracts, which are regulated by Directives 
2004/17/EC and 2004/18/EC and public work s concessions, wh ich are partially 
covered in Directive 2004/18/EC, the award of service concessions is not subject 
to any clear and unambiguous provisions , being guided only by the general 
principles of transparency and equal treatment of the Treaty on the Functioning of 
the EU. This loophole gives rise to potentially serious distortions of the internal 
market such as direct awards of contracts without any competition (with 
associated risks of national favouritis m, fraud and corruption) and generates 
considerable inefficiencies. 
The Commission has, ther efore, proposed on 20 De cember 2011 a directive on 
the award of concessions contracts (viewed at: 
http://ec.europa.eu/internal_market/pub licprocurement/docs/modernising_rules/
COM2011_897_en.pdf ) as well as a revision of the public procurement directives 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=COM:2010:0608:REV1:EN:PDF , 
point 1.4 proposal No. 17). The main provis ions of the concession proposal, which 
are still under discussion, are: 
 a clearer and more precise definition  of a concession (building on the 
Court's case law); 
 coverage of award of works and services concessions both in the classic 
sector (all other sectors not covered by utilities) and in the utilities sector 
(Directives 2004/18/EC and 2004/17/EC, respectively); 
 compulsory publication of concessions in the Official Journal  of the EU , 
when their value is equal to  or greater than €5,000,000; WT/TPR/S/284 • European Union 
 
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  Water utilities and waste water treatment services 
  pragmatic solutions for dealing with changes to concessions contracts 
during their term, notably when justified by unforeseen circumstances; 
 establishment of a minimum deadline of 52 days for the submission of 
applications for the concession; 
 establishment of certain obligations with respect to the selection and award 
criteria to be applied by the contract ing authorities and contracting entities 
when awarding concessions. These rules aim at ensuring that such criteria 
are published in advance, are objectiv e and not discriminatory. In general, 
they are less rigid than similar provisions currently applicable to public 
contracts; 
 no specific award procedures but in stead definition of certain general 
guaranties aimed at en suring transparency and equal treatment with 
particular reference to negotiation; and 
 application of the Remedies Dire ctives (Directives 89/665/EEC and 
92/13/EC, as amended by Directive 2007/66/EC) to all concessions above 
the threshold. 
For a detailed and comparative overview of existing legislation on concession at 
member States' level, see EU Commission (2011), Impact Assessment of an 
Initiative on Concessions , pp. 77-91, 20 December. Viewed at: 
http://ec.europa.eu/internal_market/pub licprocurement/docs/concessions/SEC20
11_1588_en.pdf .  
Source: Information provided by the European  Commission, unless otherwise indicated.  
Table 4.29 Market structure and regulatory  framework of solid and hazardous waste 
management services 
Solid and hazardous waste management services 
EU share of the global market 
(2010) Solid waste management: 27.7% (source EBI). Hazardous waste 
management: 27.9% (source EBI) 
Share of the private 
sector in the 
revenues of the 
solid waste 
management 
industry (2011) 50% (in the form of concessions) 
Market size, number of firms, and employment (2010) Solid waste management: US$38.9 billion of revenues (source EBI). 
Hazardous waste management: US$6.2 billion of revenue (source EBI). "Industrial waste management services sector": US$75 billion or €55 billion 
(source Frost and Sullivan
a). "Waste management": €75 billion over 
3,000 private firms, over 320,000 employees (source European Federation of Waste Management
b). "Recycling": €50.7 billion (2007) (EUROSTAT); 
1.6 million of employees (2007) (EUROSTAT) 
EU: 50% of waste treatment is operated on the basis of a concession. France: 80%-90% of contracts under way are concessions 
Volume produced 
(2011) EU production of waste: 3 billion tonnes, i.e. 6 tonnes/inhabitant. EU 
production of hazardous waste: 90 million tonnes  
Main private companies (2009) 
and number of 
countries (including EU member States) 
in which they 
operate  Top 15: Veolia (France, 15), Suez Environnement (France, 18) , Remondis 
(Germany, 21), FCC (Spain, 11), Alba (Germany, 4), Urbaser(Spain, 6), 
AVR-Van Gansewinkel (USA/UK, 8), Shanks (UK, 3), Séché-Saur 
(France, 3), CESPA (Spain, 2), Ragn-Sells (Sweden, 6), Delta (Netherlands, 2), Lassila and Tikanoja (Finland, 4), CNIM (France, 3) 
(source: PSI)  
Level of regulation EU; member States  WT/TPR/S/284 • European Union 
 
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  Solid and hazardous waste management services 
Main "qualitative" 
regulations Directive 2008/98/EC on waste so-called "Waste Framework Directive" 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32008L0098:EN:NOT ). 
For detailed legislation, see European Commission online information. 
Viewed at: http://ec.Europa.eu/environment/waste/legislation/index.htm  
Waste Framework Directive 2008/98 sets the basic concepts and definitions 
related to waste management, such as definitions of waste, recycling and recovery, and lays down some basic waste-management principles. It 
contains requirements relating to the provision of services: 
(a) establishments or undertakings which collect or transport waste on a professional basis; and (b) dealers or brokers. Article 26 refers to a requirement for member States to ensure that the competent authority 
keeps a register of these entities. 
Main "economic" 
regulations Directive 2004/18/EC on the coordination of procedures for the award of 
public works contracts, public supply contracts, and public service contracts 
(viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0018:en:NOT ) 
Ongoing regulatory 
developments As described above for water and waste water utilities 
a Frost and Sullivan online  information. Viewed at: http://www.frost.com/prod/servlet/press-
release.pag?ctxixpLink=FcmCt x1&searchQuery=waste&bdata=aH R0cDovL3d3dy5mcm9zdC5jb20vc3
JjaC9jYXRhbG9nLXNlYXJjaC5kbz9xdWVyeVRleH Q9d2FzdGUmcGFnZVNpem U9OCZwYWdlPTImc29ydE
J5PURAfkBTZWFyY2ggUmVzdWx0c0B+QDEzMTcxO TQ3NDI5MzY=&docid=242671976&ctxixpLabel=F
cmCtx2 . 
b FEAD (2011), Representing an Integrated and Balanced Approach to Waste Management in Europe , 
p.2. Viewed at: http://www.fead.be/uploads/ FEADA4(PRO-EN)-PRO.pdf . 
Source: Information provided by the European  Commission, unless otherwise indicated.  
Table 4.30 Market structure and regulatory framework of air and noise pollution 
abatement services 
Air and noise pollution abatement services 
Market size Noise pollution: the overall market of environmental noise reduction can have a 
turnover of some tens of billion euros per year (EU-27). Concerning the costs at source, 14 million new cars per year, and an estimated cost of insulation 
distributed among exhaust, engine, appropriate tyres of €800 per car means an 
additional €12 billion per year, approximately. For aircrafts, considering that noise is a major issue and requires investment in research and assessment, and 
involves extra costs in new engines and airframes, and taking this at 5% of the 
direct aircraft industry turnover, it can be estimated at €5 billion per year. For railways, the amount is probably similar. Overall, it can be considered that 15,000 jobs are based on noise pollution abatement services and that the 
turnover corresponds to €50 billion per year (EU-27). 
Air pollution: the total value estimated on the basis of air pollution abatement 
costs alone is in the range of 0.5% to 0.6%a of the GDP in the EU. This market 
value is expected to increase in future and be in the range of €80 billion per 
year by 2020.  According to the authorities, Europe is leading the sector on 
technologies for noise and air pollution abatement. Figures on materials (such as 
exhaust systems for cars, materials for noise barriers, filters for industry, 
aircraft components, etc.), are not known.  
Level of 
regulation EU; member States  
Main 
regulations Directive 2008/50/EC on ambient air qualit y and cleaner air for Europe (viewed 
at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32008L0050:EN:NOT ). 
For more detailed legislation, see Eu ropean Commission online information. 
Viewed at: http://ec.europa.eu/environment/air/legis.htm  
Industrial Emission Directive 2010/75  (viewed at: 
http://ec.europa.eu/environment/air/pollutants/stationary/ied/legislation.htm . 
Environmental Noise Directive 2002/49  (viewed at: 
http://ec.europa.eu/environment/noise/directive.htm ) WT/TPR/S/284 • European Union 
 
- 153 - 
 
  Air and noise pollution abatement services 
 There has been no significant change in legislation on noise pollution abatement 
services in the past five years. EU air quality legislation is presently under 
review and the Commission plans a "package" as part of the 2013 Thematic 
Strategy on Air Pollution. That review will also include a major component on 
research and innovations and the green economy and socio-economic impacts of 
this new policy initiative. The Environmental Noise Directive 2002/49 obliges 
member States to prepare noise maps, in form and consult the public and adopt 
action plans to tackle noise. It sets no noise limits. The Industrial Emission 
Directive (IED) 2010/75 aims at minimizi ng pollution from various industrial 
sources throughout the EU. Operators of industrial installations operating 
activities covered by Annex I of the IED are required to obtain an integrated 
permit from the authorities in EU countries. 
 
Remediation and nature and landscape protection (NLP) services 
EU share of the 
worldwide 
remediation and 
industrial services market  25.8% (source EBI) 
Revenues, 
number of firms, 
and employment 
in the 
remediation and 
industrial 
services sector US$10 billion of revenues (2010) (source EBI) 
In the context of sites in the NATURA 2000 network, established under the EU 
Habitats and Birds Directive, there is a significant amount of management and 
restoration works to be undertaken. The ov erall estimated annual cost of managing 
the NATURA 2000 network, based on inform ation supplied by the member States, is 
estimated to be about €5.8 billion per year. It  is estimated that at most 10%-20% of 
this is currently being met. Independent st udies carried out of the economic value of 
the benefits of NATURA 2000 by the Institute of European Environmental Policy 
estimated that the ecosystem services of NATURA 2000 are worth a minimum of 
€200-€300 billion per year (viewed at: 
http://ec.europa.eu/environment/nature/n atura2000/financing/docs/Economic_Benef
its_of_Natura_2000.pdf ). 
One of the studies informing this estimate related to employment and 
recreation/tourism. This study estimate d that there are between 1.2 billion to 
2.2 billion visitor days to NATURA 2000 sites each year providing recreational 
benefits estimated at between €5 billi on and €9 billion per annum, based on 
estimates of visitors' willingness to pay pe r recreational visit. Visitor expenditure 
resulting from these visits provide direct and indirect economic impacts estimated in 
the range of €50-85 billion and supporting dire ctly and indirectly between 4.5 million 
and 8 million full-time equivalent jobs (viewed at: 
http://ec.europa.eu/environment/nature/n atura2000/financing/docs/Estimating_econ
omic_value.pdf ). 
Level of 
regulation EU; member States  
Main regulations Directive 92/43 on the conservation of natural habitats and of wild fauna and flora – 
Habitats Directive  (viewed at: 
http://ec.europa.eu/environment/nature/leg islation/habitatsdirective/index_en.htm );  
Directive 2009/147 on the conservation of wild birds – Birds Directive  (viewed at: 
http://ec.europa.eu/environment/nature/l egislation/birdsdirective/index_en.htm ). 
There has been no recent change to EU nature legislation that is relevant to 
remediation and nature and landscape prot ection services. The Habitats Directive 
forms the cornerstone of Europe's nature conservation policy. It is built around two 
pillars: the NATURA 2000 network of protected sites and the strict system of species 
protection. The directive protects over 1.000 animals and plant species and over 
200 so-called "habitat types" (e.g. specia l types of forests, meadows, wetlands, 
etc.), which are of European importance. The Birds Directive creates a 
comprehensive scheme of protection for all wild bird species naturally occurring in 
the Union. 
a See International Institute for Applied Systems Analysis (2011), Cost-effective Emission Reductions 
to Improve Air Quality in Europe in 2020 , 31 March. Viewed at: 
http://www.unece.org/fileadmin/DAM/env/docum ents/2011/eb/wg5/WGSR48/Informal%20docs/Inf
o.doc.8_CIAM_report_on_Cost_effective_emission_r eductions_to_improve_air_quality_in_Europe_in
_2010.pdf . 
Source: Information provided by the European  Commission, unless otherwise indicated.  WT/TPR/S/284 • European Union 
 
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  4.118.  The trade regimes of EU environmental services appear very open. Under GATS, all 
environmental services are covered by commitments save some minor intra-sectoral exceptions mostly concerning new member States. Mode 3, which is the essential mode of provision of these services, is entirely committed for all services except noise abatement and for all members, except 
Cyprus, Hungary, Malta, Poland, and Romania for all sectors, and Finland and Sweden for some.  
4.119.  Regarding FTAs, the agreement with Chile includes a sector that is not covered by the EU 
GATS commitments, namely water collection purification and distribution services through mains 
except steam and hot water, with full mode 3 commitments for 13 member States, while 14 other 
remain unbound. The corresponding applied regime at EU level, and its ongoing reform, is described above in the regulatory framework char t and regarding third party access it contains a 
cross reference to the WTO Agreement on Government Procurement.  
4.120.  For all other environmental services, the regime granted by the FTAs regarding the key 
mode 3 is more favourable than the GATS one, several member States having lifted their mode 3 restrictions. There is no other preferential trea tment granted by sectoral agreements. The applied 
regime for sewage services is similar to that to water distribution and is subject to the same 
ongoing regulatory reforms. For all other services the applied regime at EU level adheres to the standards rules of the EU Treaty regarding es tablishment and freedom to provide services. 
Table A4.9 describes in more detail these trade regimes. 
4.3.3  Transport services  4.3.3.1  Air transport services  4.121.  Table 4.31 describes the main economic characteristics as well as the existing and planned 
regulatory framework for EU aviation services. 
Table 4.31 Regulatory framework for EU aviation services 
Generic economic data on the EU aviation sector 
Number of jobs supported: direct 3 millio n; direct and indirect: 5.1million (2011) 
Contribution to EU GDP: €365 billion, i.e. 2.4% (2011)  
Number of scheduled airlines: 146 (2012)  
Number of airports: 450 (2011) 
Number of air navigation providers: 60 (2010) 
Number of passengers (departed and arrived): 820 million (2011) 
Growth in the number of in tra-EU routes since full liberalization: +145% (1992-2012) 
Growth in the number of intra-EU routes with more than 2 carriers since full liberalization: +430% 
(1992-12) 
Existing regulatory regime (EU level) 
Aircraft repair and maintenance: no EU level market access entry regulations. The EU regulation on 
certification of foreign and EU repair stations is based on safety considerat ions and ensured by the 
European Agency for Safety in Aviation (EASA). For more elements, see WTO document S/C/W/270, 
18 July 2006, pp. 14 and 19. 
Computer reservation serv ices and selling and marketing: Regula tion 80/2009 on a Code of Conduct for 
computerised reservation systems: this regulation do es not deal strictly speaking with market access 
(where the general rules of the Treaty apply) but with competition policy and safeguards (viewed at: 
http://eur-lex.europa.eu/LexUriServ/Le xUriServ.do?uri=CELEX:32009R0080:EN:NOT ).  
Ground-handling servic es: Directive 96/67/EC  on access to the ground-handling market at Community 
airports (viewed at: 
http://eurlex.europa.eu/smartapi/cgi/sga_doc?smart api!celexplus!prod!DocNumber&lg=en&type_doc=Di
rective&an_doc=1996&nu_doc=67 ) and standard clauses for inclusion in bilateral air services 
agreements (allowance for self-handling and competitiv e choice among third-party handlers and, if not 
legally permitted, non-discriminatory treatment of EU airlines (viewed at: 
http://ec.europa.eu/transport/modes/air/intern ational_aviation/doc/standard_clauses_en.pdf ). WT/TPR/S/284 • European Union 
 
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  Airport services: the EU is neutral regarding ownershi p and corporatization policies which are decided at 
member State level in application of the subsidiari ty principle. In most member States, the legal 
framework allows corporatization and private management of airport services in the form of concessions, 
and in some member States, such as the United King dom and Portugal, there has been full privatization 
of these types of services. 
Airport charging is regulated at EU  level by Directive 2009/12/EC of th e European Parliament and of the 
Council of 11 March 2009 on airport charges (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:32009L0012:EN:NOT ).  
Slots:  Regulation (EC) 793/2004 on common rules for the allocation of slots at Community airports (viewed at: 
http://eur-lex.europa.eu/LexUriServ/Le xUriServ.do?uri=CELEX:32004R0793:EN:NOT ). 
Commercial aviation: single market: Regulation 1008/2008 on common rules for the operation of air 
services in the EU (viewed at: 
http://europa.eu/legislation_summaries/t ransport/air_transport/tr0008_en.htm ).  
Ongoing regulatory developments  
"Fitness check" of the sing le aviation market rules: initiated by  the Commission in January 2011, this 
exercise is still ongoing an d will soon be completed (it is tentatively scheduled to be published before the 
end of March 2013). It concer ns three regulations:  
 For Regulation 1008/2008 on common rules for the operat ion of air services in the EU (which is a 
recast of the third package of liberalization) , the following points will be discussed: price 
transparency provision, measures to be taken in case of bankrupt cy, public services obligations, 
social impact of the single market, traffic distribution among airports in the same conurbation, 
remaining member States' measures  restricting charter and taxi services to operate to third 
countries, and wet leasing conditions.  
 For Regulation 80/2009 on a Code of Conduct for computerised reservation systems which 
simplified the previous legislation by taking into  account technological developments (internet) 
and market developments (airline direct sales to consumer), the aim is to check whether and how 
market conditions have changed since its inception. 
 For Regulation 785/2004 on insurance requirements for air carriers an d aircraft oper ators, the aim 
is to evaluate ways to cover liabilities for terrorist acts. 
(Viewed at: 
http://ec.europa.eu/transport/modes/air/intern al_market/doc/2011_fitness_check_roadmap_def.pdf .) 
Airport package: adopted by the Commission on 1 December 2012, the "airport package" is still under 
discussion. The "package" contains three sets of propos als: on ground handling, on slots and on noise as 
well as a communication on "Airport policy in the Eu ropean Union – addressing capacity and quality to 
promote growth, connectivity and sustainable mobility" (viewed at: 
http://ec.europa.eu/transport/modes/air/airports/index_en.htm ). 
Slots: as compared to the present rules, the main changes proposed are:  
 to allow airlines to trade slots with each other at airports anywhere in the EU in a transparent 
way; 
 to reform the rules designed to help new entran ts access the market at congested airports. which 
will allow a greater number of carr iers to challenge more  effectively the "domin ant" carriers which 
have a large presence  at busy airports; 
 to tighten the rules requiring airlines to demonstrate that they have used their slots sufficiently 
during the season; 
 to tighten the rules on the independence of the co ordinator and increase the level of transparency 
on slot transactions, in order to make the market work better; 
 to improve the information flow between slot coor dinators, airports, airlines, national authorities 
and organizations providing air traffic control, in order to inform decisions on airport coordination; 
and 
 to allow the system to react better to disruptions, for example due to severe weather conditions. WT/TPR/S/284 • European Union 
 
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  According to analysis carried out by the Commission, the changes proposed could be worth €5 billion to 
the European economy and create  62,000 more jobs over the pe riod 2012-25 and would allow the 
system to handle 24 million more passengers a year by 2025. 
Ground handling: as compared to the present rules, the main changes proposed are: 
 to introduce full opening of the self-handling market for airlines and increase the minimum 
number of service providers (in rest ricted services i.e. baggage handling, ramp handling, fuel and 
oil handling, freight and mail handling) fr om two to three at large airports;  
 to establish a new role for the airport managing bo dy as "ground coordinator" of ground services: 
airports will be tasked with the proper coordination  of ground handling within an airport and will 
be given the tools to establish minimum quality st andards to be respected by all ground handlers 
at their airport. In addition, the propos als will clarify rules for subcontracting; 
 to introduce a new possibility for member States to impose a requirement on companies that win 
ground-handling contracts in restricted markets to transfer the staff from the previous contract 
holder with their full existing conditions; 
 to establish compulsory minimum training for staff;  
 to institute mutual recognition of national a pprovals for ground-handlers issued by member 
States; and 
 to introduce greater transparency on how airlin es (and their handlers) are charged for airport 
"centralized infrastructures" (for example, fees  charged by the airport for the use of baggage 
processing systems) and under which conditions airports themselves can provide ground-handling 
services to create a more level playing field to allow independent handlers to compete more 
effectively. 
Noise: proposals to increase the transparency in th e process of setting noise-related restrictions at 
airports, including an oversight role for the Commi ssion. This is not about targets, but about the 
decision-making process. It gives the Commission a scrutiny role – it  does not replace a member State's 
final decision. The proposals also u pdate existing legislation in line with technological developments to 
make it easier for authorities to phase out the noisiest planes. 
Common external aviation policy: the renewed basis for the common external aviation policy is the 
20 December 2012 "Policy Conclusions of the Council". Among its 31 points one may note in particular: 
 the planned  reform of Regulation 868/2004 co ncerning protection agains t subsidization and unfair 
pricing practices causing injury to EU carriers; 
 the definition at EU level of a  template for a "fair competition clau se" as a basis for inclusion in air 
services agreements;  
 the conclusion of EU-wide agreements (so-called "EU comprehensive agreements" as opposed to 
"horizontal agreements" dealing with the ad option of community ownership clause) with  
Mediterranean and east ern and central European countries (so-called neighbourhood policy 
countries), Russia, India, certain Gulf countries, ASEAN, and China; 
 an active EU impetus in the ICAO  negotiations on the liberalizati on of ownership and on a global 
market-based approach to regulating greenhouse ga s emissions from aviation (on the latter point 
see also below); and 
 regulatory convergence beyond market issues on safety, security, certifications, working 
conditions etc., notably with the US and neighbourhood policy countries. 
(Viewed at: http://ue.eu.int/uedocs/cms_data /docs/pressdata/en/trans/134518.pdf .) 
Emission trading scheme (ETS) for aviation: since the start of 2012, emissi ons from international 
aviation are included in the EU Emissions Tradin g Scheme (EU ETS). The system applies to EU and 
non-EU airlines alike. Emissions from flights to an d from Iceland, Liechtenstein and Norway are also 
covered. 
The necessary legislation for bringing aviation into the EU ETS was proposed by the European 
Commission in 2006 and adopted by the 27 member States and the European Parliament in 2008 
(Directive 2008/101/EC amending Directive 2003/87/EC) so as to include aviati on activities in the 
scheme for greenhouse-gas-emission-allowance trading within the Community. Incoming flights can be 
exempted from the EU ETS if the EU recognizes that the country of origin is taking measures to limit 
aviation emissions from departing flights (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:32008L0101:EN:NOT ). WT/TPR/S/284 • European Union 
 
- 157 - 
 
  In November 2012, the Commission prop osed deferring the application of  the scheme to flights into and 
out of Europe until after the ICAO General Assembly in autumn 2013. This proposal has not yet been 
adopted. Following encouraging discussions in the ICAO  Council on a global market-based approach to 
regulating greenhouse-gas emissions from aviation, th e Commission believes a global solution is within 
reach at the 2013 meeting (viewed at: 
http://ec.europa.eu/clima/policies/transport/aviation/docs/com_2012_697_en.pdf ). 
The legislation will continue to apply to all flights within and between the 30 European countries in the 
EU ETS.  
The Commission made clear that, should the 2013 IC AO General Assembly fail to make the necessary 
progress (for the EU, an agreement in ICAO on market-based measures must include three key 
elements: it must deliver aviation emission reductions at least as big as the EU ETS is doing; it must be 
non-discriminatory for all airlines; and it must contain targets and measures for ICAO member 
countries), the EU ETS legislation wo uld be applied in full again to all flights to and from non-European 
countries. 
Source: Information provided by  the European Commission.  
4.122.  The regime of air transport services ap pears quite liberal. Regarding the three services 
explicitly covered by the GATS air transport annex (maintenance and repair of aircraft, selling and 
marketing of air transport services and computer reservation services) the FTA commitments 
slightly improve the already liberal GATS commitments by for instance binding EU-CARIFORUM's and EU-Korea's commercial presence without restrictions for all member States for maintenance and repair, while this sector remains uncommitted or subject to restrictions in a few member 
States under GATS. The EU-Korea FTA contains an MFN exemption of maintenance and repair that 
has no equivalent under the GATS. FTA commitments on selling and marketing and computer reservation services largely echo those undertaken under GATS. For rental of aircraft with crew, 
FTA commitments cover all member  States, while GATS' ones only cover one member State and 
reflect existing EU regulation on wet leasing. 
4.123.  Two FTAs (with Korea and CARIFORUM) include commitments on ground-handling 
services, an area not covered by EU commitments but covered by its Doha Development Agenda 
offer. The same goes for airport management services bound by the EU-CARIFORUM agreement. Finally, FTA commitments on storage and warehousing and freight transport agency services for air transport improve GATS commitments notably in terms of geographical coverage. In terms of 
applied regime, save for commercial aviation (airlines and air taxi), the air transport sector obeys 
the general rules of treaties on establishment and there is therefore no foreign ownership restriction (Table A3.10).  
4.3.3.2  Rail transport services  
4.124.  Railway transport is historically a major transport sector in the EU although its intermodal 
shares have been declining both for passenger and freight transport since the thirties due to 
competition with road transport (passenger cars and lorries). 
4.125.  Over the last fifteen years this evolutio n has been more pronounced for freight traffic 
(intermodal share 20.2% in 1995, 15.8% in 2009) than for passenger transport (1995: 12.6%, 2010: 10.2%). Like elsewhere in the world, this sect or is in a constant flux of reforms to adapt 
itself to this competitive situation. The traditional model of an integrated state-owned monopoly 
has progressively given way to new forms of delivery such as vertical separation between a network operator and a plurality of transport operators operating either under a licence in 
competition on the same network or through time-bound concessions with a monopoly on a given 
section of the network. In addition, in the case of the EU a process of liberalization of cabotage has taken place in the area of freight and is programmed for passenger traffic. In spite of considerable 
progress in productivity, railways remain very important employers due to the labour-intensive 
nature of the activity. 
4.126.  In the EU as whole the rail industry ha s a turnover of €73 billion, which corresponds to 
65% of that of air (€112 billion), with 800,000  employees. Rail is critical to the effective 
functioning of the European economy. More than  8 billion passenger journeys are made by rail 
each year. Rail carries about 10% of all freight traffic across Europe, with an estimated revenue of €13 billion. Another parameter of the economic importance of railways is the vast amount of funds WT/TPR/S/284 • European Union 
 
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  that public authorities invest in it. In 2009 this amounted to some €46 billion of public subsidies. 
With this kind of public funding becoming scarcer, underinvestment risks a cycle of decline, with decaying infrastructure and rolling stock rendering rail unattractive. 
4.127.  The economic importance and density of railway networks vary however considerably from 
member State to member State with different types of traffic (e.g. high-speed lines versus 
regional services or dedicated freight corridors versus isolated wagonloads), due to historical, geographical, and industrial and urban density re asons. Table 4.32 gives an overview of these 
diverse situations in terms of employment, length of network, network density, and importance of 
traffic as a whole, as well as in terms of the relative share of international traffic. 
Table 4.32 Rail transport indicators 
 2009  2008  2010  
Lines in 
use 
(km) Density 
(km/ 
1,000 km2) Employment 
(number) Freight 
(million tonne/km) Passenger 
(million passenger/km) 
National  International  National International Of 
which, 
under 
PSOa 
Austria 5,635 67.2 13.096  5,800  14,000  .. .. ..  
Belgium 3,578 117.2 .. 1,779  3,950  9,231  1,379 9,225  
Bulgaria 4,150 37.4 17.892  2,218  964 2,045  55 1,740  
Cyprus .. .. 0 .. .. .. .. .. 
Czech 
Republic 9,578 121.4 ..  5,714  8,056  6,263  328 ..  
Denmar k 2,667 61.8 9,527  167 2,075  6,200  .. 6,347  
Estonia 919 21.0 3,109  724 5,917  229 18 229  
Finland 5,919 17.5  6,915  2,835  3,869  90 .. 
France 29,422 53.3 ..  22,500  7,600  .. .. 24,400  
Germany 33,714 94.4 77,410  54,529  52,787  78,515  4,538 .. 
Greece 2,552 19.4 ..  .. .. .. .. ..  
Hungary 7,892 84.8 17,515  1,330  7,460  7,316  376 7,316  
Ireland 1,919 27.5 ..  92 .. 1,582  96 1,678  
Italy 17,004 56.4 57,394  7,519  5,885  43,348b 43,348b 22711  
Latvia 1,884 29.2 5,111  291 16,887  670 79 670  
Lithuania 1,767 28.2 .. 3,376  10,055  226 147 .. 
Luxembourg 275 106.3 ..  50 689 246 103 343  
Malta .. .. .. .. .. .. ... .. 
Netherlands 2,886 69.5 ..  950 5,435  16,002  966 ..  
Poland 20,770 66.4 119,328  27,941  21,014  17,918  530 13,645  
Portugal 2,842 30.9 ..  2,095  389 4,008  103 2,365  
Romania 10,776 45.2 .. 10,345  2,029  5,308  129 .. 
Slovakia  3,623 73.9 ..  762 9,721  .. .. ..  
Slovenia .. .. .. 263 3,649  680 .. 792 
Spain 13,336 26.3 21,063  6,370  1,047  20,421  557 10,555  
Sweden 11,138 25.2 9,882  14,828  8,634  10,674  544 .. 
United 
Kingdom 16,272 66.7 ..  18,169  408 54,111  172 53,630  
.. Not available. 
a Public service obligation.  
b Total national and international. 
Source: European Commission document SWD( 2012) 246 final, 21 August 2012. Viewed at: http://eur-
lex.europa.eu/Result.do?T1=V7&T2=2012&T3= 246&RechType=RECH_naturel&Submit=Search .  
4.128.  Table 4.33 describes the existing EU leve l regulatory framework of  railway transport.  
Table 4.33 EU existing regulatory framework for railway transport 
The First Railway Package  was adopted in 2001, and entered into force in March 2003, was 
designed to: 
 open the Trans-European Rail Freight Network to competition, establish a general framework 
for the development of European railways, and clarify the relationship between (a) the state 
and the infrastructure manager; (b) the state and railway undertakings; and (c) the 
infrastructure manager and railway undertakings (Directive 2001/12/EC) (viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=CELEX:32001L0012:EN:HTML );  WT/TPR/S/284 • European Union 
 
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   set out the conditions that freight operators must meet in order to be granted a licence to 
operate services on the European rail network (Directive 2001/13/EC) (viewed at: 
http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2001:075:0026:0028:EN:PDF ); and 
 define policy for capacity allocation and infrastructure charging (Directive 2001/14/EC). It 
has been recently recast (see below the section on "main regulatory developments since the 
last TPR report) but its present provisions remain valid until the provisions of the recast are 
transposed (deadline 2015) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=CELEX:32001L0014:en:HTML ). 
The Second Railway Package was adopted in 2004 and entered into force on 
31 December 2005. Its aim was to determine: 
 a common approach to rail safety (Directive 2004/49/EC) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0049:en:NOT );  
 requirements for interoperability of the Europe an high speed and conventional rail systems 
(Directive 2004/50/EC) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0050:en:NOT );  
 the opening of national and international rail freight markets on the entire European network 
(Directive 2004/51/EC) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0051:en:NOT ); and 
 the establishment of the European Railway Ag ency (Regulation (EC) 881/2004, amended by 
Regulation 1335/2008) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:354:0051:0059:EN:PDF ). 
The Third Railway Package was adopted in 2007, and entered into force in June 2009, to open 
up international passenger services to competition. The objective of the package was: 
 to open the market for international passenger services to competition 
(Directive 2007/58/EC) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:315:0044:0050:EN:PDF );  
 to set the conditions and procedures for the certification of train crews operating 
locomotives and trains (Directive 2007/59/EC) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:315:0051:0078:EN:PDF );  
 to ensure basic rights for rail passengers (Regulation 1371/2007), for example, with regard 
to insurance, ticketing, and for passengers with reduced mobility (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:315:0014:0041:EN:PDF ). 
Source: Information provided by the European  Commission. 
4.129.  The state of play in terms of liberaliza tion following the implem entation of the three 
railways packages, as it stands on January 2013, is summed up in the two following tables, which 
describe respectively the various types of institutional structure, repartition of functions and the 
relationship between infrastructure managers an d railway undertakings retained by the member 
States (Table 4.34), and the number of railway undertakings operating in both the freight and 
passenger markets in each member State as well as the present market share of railway 
undertakings other than the incumbent former state monopoly (Table 4.35). 
Table 4.34 Institutional setti ngs in the member States 
Infrastructure manager 
(IM) responsibilities Level of independence Member States 
IM in charge of all IM functions 
(incl. capacity allocation and 
charging) IM institutionally independent 
from any railway undertaking Bulgaria; Czech Republic; 
Denmark; Estonia; Finland; 
Greece; Netherlands; Portugal; Romania; Slovakia; Spain; 
Sweden; and United Kingdom 
(excluding Northern Ireland) WT/TPR/S/284 • European Union 
 
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  Infrastructure manager 
(IM) responsibilities Level of independence Member States 
IM in charge of all IM functions 
(incl. capacity allocation and 
charging) Legally independent IM owned 
by a holding company which 
also owns and controls a 
railway undertaking but with 
strong guarantees of 
organizational and 
decision-making independence 
in relation to the railway 
undertaking Belgium and Latvia 
I M  i n  c h a r g e  o f  I M  f u n c t i o n s  
with the exception of the 
essential functions (capacity 
allocation and charging) under 
the responsibility of a separate body IM integrated in a structure 
responsible for transport 
operations 
Separate body in charge of 
essential functions institutionally independent Hungary; Lithuania; 
Luxembourg; and Slovenia 
IM in charge of the essential 
functions (capacity allocation 
and charging) but having 
delegated specific parts of the 
essential function capacity 
allocation and other IM 
functions (e.g. maintenance) 
to a railway undertaking IM institutionally independent 
from any railway undertaking France 
IM in charge of all IM functions (incl. capacity allocation and 
charging) Legally independent IM owned 
by a holding company which 
also owns and controls one of the operators with limited 
guarantees of organizational 
and decision-making independence in relation to the railway undertaking Austria, Germany, Italy, and 
Poland 
IM in charge of all IM functions 
(incl. capacity allocation and 
charging IM integrated in a structure 
responsible for transport 
operations  Ireland and the 
United Kingdom (for the part of 
Northern Ireland) 
Source: European Commission document SWD(2013) 12 final, 30 January 2013. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2013:0012:FIN:EN:PDF  
Table 4.35 Railway undertakings 
  Rail freight transport Rail passenger transport 
No. of 
undertakings Total market share of 
all but the principal 
railway undertakings 
(%) No. of 
undertakings Total market share of 
all but the principal 
railway undertakings 
(%) 
Austria 6 14.60 2 5.40 
Belgium 6 11.82 2 0.20 
Bulgaria 5 21.60 2 2.60 
Cyprus n.a. n.a. n.a. n.a. 
Czech Republic 10 13.16 5 0.24 
Denmark 3 25.00 12 18.00 
Estonia 2 45.00 3 50.00 
Finland 1 0.00 1 0.00 
France 2 20.00 2 1.00 
Germany 2 25.00 2 8.00 
Greece 1 .. 1 .. 
Hungary 6 19.47 2 1.80 
Ireland 1 0.00 1 0.00 
Italy 2 24.10 2 8.30 
Latvia 3 23.30 2 10.54 
Lithuania 1 0.00 1 0.00 WT/TPR/S/284 • European Union 
 
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    Rail freight transport Rail passenger transport 
No. of 
undertakings Total market share of 
all but the principal 
railway undertakings 
(%) No. of 
undertakings Total market share of 
all but the principal 
railway undertakings 
(%) 
Luxembourg 1 0.00 .. .. 
Malta  n.a. n.a. n.a. n.a. 
Netherlands 2 40.00 2 4.80 
Poland 8 35.82 4 48.31 
Portugal 1 .. 1 .. 
Romania 10 54.70 2 3.93 
Slovakia 3 2.03 1 0.03 
Slovenia 3 0.00 1 0.01 
Spain 5 8.08 1 0.00 
Sweden 9 40.00 17 .. 
United Kingdom 4 51.40 19 89.90 
.. Not available. 
n.a. Not applicable. 
Source: European Commissi on document SWD(2012),  246 final, 21 August 2012. Viewed at: http://eur-
lex.europa.eu/Result.do?T1=V7&T2=2012&T3= 246&RechType=RECH_naturel&Submit=Search . 
4.130.  The main regulatory development that occurred during the period under review was the 
adoption of the recast of the first package on 21 November 2012. That recast will enter into force 
in 2015. Table 4.36 describes it main provisions. 
Table 4.36 Regulatory developments during th e period under review: Recast of the first 
package 
Directive 2012/34/EU establishing a single European railway area (recast) merges 3 previous 
major directivesa and later pieces of legislation amending or completing them (9 previous 
legislative texts in total). It aims at strengthen ing the power of regulatory bodies, improving the 
framework for investment in rail and ensuring fairer  access to rail infrastructure as well as rail 
related facilities and services. The new rules will be transposed by 2015 (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:343:0032:0077:EN:PDF ). 
The most important elements of the Directive in  comparison with previous legislation are: 
a) In the field of financing and charging 
A compulsory rail infrastructure development strate gy by member States for at least five years, 
the generalization of contractual agreements, the inception of the principle of short-term balance 
of accounts (maximum five years)b, the definition of  harmonized performance schemesc, the 
modalities of  calculation of direct costsd as well as the definition of  market segments for mark-upse 
to be regulated in implementing measures, the clar ification of principles applying to charges for 
rail-related services, mandatory cooperation between infrastructure managers for charging 
international train paths, the definition of common rules for noise-related modulation of 
infrastructure charges, mandatory European Train Control System (ETCS) related modulation of 
infrastructure charges, reservation charges in case of competition mandatory if there is a regular 
failure to use allocated paths.f 
b) In the field of competition 
The clarification of existing rules on the separation of accounts, the specification of detailed 
contents and compulsory translation of "network statements", mandatory cooperation between 
international managers for international capacity allocation, provision for improved transparency of 
the scheduling process, compulsory information on maintenance work, a limited re-categorization 
of rail-related services (heavy maintenance for high speed and ancillary services; definitions of 
"heavy maintenance" and "storage sidings"), extension of the principle of management 
independence to storage sidings and refuelling fa cilities, the definition of principles for the 
allocation of capacity in case of conflicting requests (definitions of "alternative route" and "viable 
alternative"), the creation of a "use it or lease it " clause to be applied after two years of no use, 
the creation of authorization procedure for cross-border agreements.g WT/TPR/S/284 • European Union 
 
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  c) In the field of regulatory bodies 
The mandatory creation of a single authority in dependent from any other public authority, the 
definition, criteria for recruitment of management, the allowance of actions on their own initiative 
by regulatory bodies, the extension of their competence to rail-related servicesh, the obligation to 
allocate human and material resources proportionate to the importance of the sector, the 
establishment of new deadlines for regulators' decision-making, the right to request examination 
of national measures by the European Commission, stronger coordination among national 
regulators (network with European Commission participation + exchange of information). 
d) In the field of reinforced monitoring by the European Commission  
Extended scope of the Rail Market Monitoring Scheme (to investments, rail-related services and 
social conditions), possibility of a Commission deci sion on the application of national measures in 
relation to the application of the Directive. 
The Directive refers to 16 implementing measures, including 8 mandatory ones (modalities for the 
calculation of direct costs, noise-related and ETCS -related modulation of infrastructure charges, 
determination of the principal purpose of new servicesi and whether a new service damages the 
economic equilibrium of public service contracts,  a common template for EU licences, criteria for 
authorized applicants, levies on passenger services) and 8 optional ones (such as the procedures 
and criteria for framework agreements, access to service facilities and services, common principles 
and practices for the decision-making of regulatory bodies). It also refers to 4 delegated acts 
(licensing requirements related to financial fitness, performance schemes, the schedule for the 
allocation process and accounting information to be supplied to regulatory bodies). 
a Directive 91/440/EEC on the development of the Community's railways, Directive 95/18/EC on the 
licensing of railway undertakings and Directive 2001/14/ EC on the allocation of railway infrastructure 
capacity and the levying of charges fo r the use of railway infrastructure. 
b Article 8 of Directive 2012/34/EU. c Article 35 and Annex VI.2 of Directive 2012/34/EU. 
d Article 31(3) of Directive 2012/34/EU. 
e Article 32(1) and Annex VI.1 of Directive 2012/34/EU. f Article 36 of Directive 2012/34/EU. g Article 14 of Directive 2012/34/EU. h Article 56(1) of Directive 2012/34/EU for the extens ion of the competences of the regulatory body to 
rail-related services; Article 13 and Annex II of Di rective 2012/34/EU for the definition of rail-related 
services. 
i Domestic or international. 
Source: Information provided by the European  Commission. 
4.131.  The major planned evolution of the regulatory framework is the so-called fourth "package" 
proposed by the Commission in January 2013 on which discussion is about to begin. Table 4.37 
below describes the main elements of this proposal. 
Table 4.37 On-going regulatory developm ents: the "fourth package" Commission 
proposal 
The College of Commissioners decided on the Fourth Railway Package on 30 January 2012. The 
complete texts of the proposal are available at: http://ec.europa.eu/commission_2010-
2014/kallas/headlines/news/2013/01/fourth-railway-package_en.htm .  
The proposed package has 3 pillars:  
Market opening:  at the moment, in many cases individual operators are granted exclusive rights 
to the market and compensation payment for public service obligations without competition, which 
provides no pressure for improvement. In member States that have taken the initiative to open 
domestic passenger services to competition, such as the United Kingdom, Germany and Sweden, 
both the volume and quality of services offered to passengers have increased, and the value for 
money for contracting authorities has been improv ed by up to 30%. Therefore, the Commission 
proposes:  
 the opening of domestic rail passenger markets (amendments to Directive 2012/34/EU 
establishing a single European railway area); and WT/TPR/S/284 • European Union 
 
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   a compulsory tendering for public services (amendments to Regulation (EC) 1370/2007 on 
public passenger transport services by rail and by road). 
Independence of infrastructure ma nagers from transport operators:  the Commission is 
willing to strengthen independence criteria for infrastructure managers without full unbundling 
becoming compulsory for those member States who have not opted for full separation at the time 
of the entry into force of the new Di rective amending Directive 2012/34/EU.  
To that effect,  the proposal  suggests abolishment of the option set out in the existing text for 
functions of the infrastructure manager on a network or part of a network to be allocated to 
different bodies or firms and details all the releva nt functions of infrastructure management that 
are to be performed by the infrastructure manager, in order to ensure that all these functions are 
fulfilled in a consistent manner. It also clar ifies the meaning of the different functions of 
infrastructure management. 
It also introduces the institutional separation of the infrastructure manager from transport 
operations, by prohibiting the same legal or natural person from having the right to control or 
exercise influence over an infrastructure manager and a railway undertaking at the same time. 
However, it allows for the possibility of a member State to be owner of both legal entities, in which 
control should be exercised by public authorities that are separate and legally distinct from each 
other. 
A key element is that the proposal allows vertically integrated undertakings, including those with a 
holding structure, to maintain ownership of the infrastructure manager. This would however be 
possible only if strict so-called "China walls" are enforced. In other words, it clarifies that the 
holding model is only permissible if conditions are fulfilled which ensure that the infrastructure 
manager has effective decision-making rights for all it s functions. It further sets out that this must 
be guaranteed by strong and efficient safeguards protecting the infrastructure manager’s 
independence. It specifies that these safeguards should be in place with regard to the structure of 
the undertaking, including the separation of financial circuits between the infrastructure manager 
and other companies of the integrated group. It also sets out rules on the management structure 
of the infrastructure manager. 
Finally to ensure compliance the proposal suggests establishing a possibility for member States to 
limit access rights of railway operators which are part of vertically integrated undertakings, in case 
the Commission is not a position to confirm that safeguards to protect the independence of the 
infrastructure manager have been effectively implemented. 
Safety and interoperability:  The Commission wants to cut the administrative costs of rail 
companies, facilitate the entrance of new operators into the market, reduce possibilities for 
discrimination and further harmonize interoperability and safety rules. The new proposals aim at 
extending the tasks of the European Railway Agency to simplify and streamline vehicle 
authorization and safety certification procedures to facilitate operations in more than one member 
State. In order to achieve that, the Commission proposes a new Regulation on the European 
Railway Agency and amendments to Directive 2008/57/EC on the interoperability of the rail 
system within the Community (recast) and to Di rective 2004/49/EC on safety on the Community's 
railways. 
Source: Information provided by the European  Commission. 
4.132.  In terms of trade regimes, both the GATS and FTA commitments appear limited for the 
core of rail transport activities: passenger an d freight transport. This reflects the former 
monopolistic structure of these activities and the fact that the liberalization process, which is essentially internal, has not yet been achieved, as explained above. However, in terms of applied 
regime there are no ownership restrictions applicable  in the area of rail transport since the generic 
rules of the Treaties on establishment apply. In  the past, there have been examples of fully 
foreign-owned rail transport operators (e.g. EWS). By contrast auxiliary services appear more 
largely committed both under GATS and FTAs. Table A4.11 describes in detail GATS and FTA 
commitments for the rail transport sector. WT/TPR/S/284 • European Union 
 
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  4.3.3.3  Maritime transport services  
4.133.  Maritime transport is of major importance for the EU economy and trade since almost 90% 
of the external EU freight trade is seaborne, an d short sea shipping represents 40% of intra-EU 
exchanges in terms of ton-kilometers. 
4.134.  Table 4.38 describes the fleets and tonnage registered under the national flag of the 
various member States or registered under a third-country flag but controlled by them ("beneficial ownership"). 
Table 4.38 EU maritime fleets
a, 1 January 2012 
Country of 
ownershipb Number of vessels Deadweight tonnage 
National 
flagc Foreign 
flag Total  National flagc Foreign flag  Total  Foreign 
flag as % 
of total Estimated 
market 
share (%)  
Austria         
Belgium 97 180 277 6,319,103  8,202,208  14,521,311 56.48 1.04 
Bulgaria    440,000      
Cyprus 62 152 214 2,044,256  5,092,849  7,137,105 71.36 0.51 
Czech Republic         
Denmar k 394 649 1,043  13,463,727  26,527,607  39,991,334 66.33 2.87 
Estonia    86,000      
Finland    1,258,00      
France 188 297 485  3,430,417  7,740,496  11,170,913 69.29 0.80  
Germany 422 3,567 3,989  17,296,198  108,350,510  125,626,708 86.23 9.03 
Greece 738 2,583 3,321  64,921,486  159,130,395  224,051,881 71.02 16.10  
Hungary         
Ireland    263,000      
Italy 608 226 834 18,113,984  6,874,748  24,988,732 27.51 1.80 
Latvia    79,000      
Lithuania    325,000      
Luxembourg    1,231,000      
Malta         
Netherlands 576 386 962  4,901,301  6,799,943  11,701,244 58.11 0.84  
Poland    73,000      
Portugal    1,236,000      
Romania    59,0000      
Slovakia     22,000      
Slovenia    1,000      
Spain    2,647,000      
Sweden 99 208 307 1,070,563  5,325,853  6,396,416 83.26 0.46 
United Kingdom 230 480 710  2,034,570  16,395,185  18,429,755 88.96 1.32  
Total EU  3,414 8,728 12,142  140,588,605  350,439,794  484,015,399 72.40  
Total world   46,901    1,518,109,503   
Total EU as % 
of world 
market    25.9   31.9   
a Vessels of ≥ 1,000 GT, ranked by deadweight tonnage. 
b The country of ownership indicates where the true controlling interest (i.e. the patent company) of 
the fleet is located. In several cases, determining this has meant making certain judgements. Thus, for example, Greece is shown as the country of ownership for vessels owned by a Greek national 
with representative offices in New York, London, and Piraeus, although th e owner may be domiciled 
in the United States.  
c Includes vessels flying the national flag but regi stered in second registries, such as the Danish 
International Ship Register (DIS) or the French International Ship Register (FIS).  
Source: UNCTAD (2012), Review of maritime transport  2012, November. Viewed at: 
http://unctad.org/en/PublicationsLibrary/rmt2012_en.pdf .  
4.135.  Table 4.39 details the tonnage of goods handled in 2010 in all EU harbours and singles out 
the high value container traffic, measured in container units (Twenty foot Equivalent Units). 
Table 4.39 Port traffic, 2010 
 Total merchandise traffic 
('000 tonne) Containerized port traffic 
(TEU) 
Austria  350,461 
Belgium 228,228 10,984,824 
Bulgaria 22,946 142,611 
Cyprus 6,954 349,357 WT/TPR/S/284 • European Union 
 
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   Total merchandise traffic 
('000 tonne) Containerized port traffic 
(TEU) 
Czech Republic .. .. 
Denmark 87,068 709,147 
Estonia 46,026 151,969 
Finland 109,326 1,247,520 
France 313,593 5,346,799 
Germany 275,953 14,821,766 
Greece .. 1,165,185 
Hungary .. .. 
Ireland 45,071 790,067 
Italy 494,091 9,787,403 
Latvia 58,691 256,713 
Lithuania 37,869 294,954 
Luxembourg .. .. 
Malta 6,004 2,450,665 
Netherlands 538,702 11,345,167 
Poland 59,507 1,045,232 
Portugal 65,981 1,622,246 
Romania 38,122 556,694 
Slovakia  .. .. 
Slovenia 14,591 476,731 
Spain 376,391 12,613,000 
Sweden 179,579 1,309,504 
United Kingdom 511,875 8,590,282 
Total EU  3,516,568 86,408,297 
Total EU as % of world 
market  .. 16.0 
Total world .. 540,693,109 
.. Not available.  
Source: UNCTAD (2012), Review of maritime transport  2012, November. Viewed at: 
http://unctad.org/en/PublicationsLibrary/rmt2012_en.pdf ; and Eurostat database. Viewed at: 
http://epp.eurostat.ec.europa.eu/portal /page/portal/trans port/data/database .  
4.136.  Table 4.40 describes the regulatory framew ork of maritime transport in the EU and its 
planned evolutions. 
Table 4.40 EU regulatory framework for maritime transport services 
Existing EU regulatory framework  
Market access:  
Regulation EC/4055/86 on freedom to  provide services to maritime transport between member States 
and between member States an d third countries (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=OJ:L:1986:378:0001:0003:EN:PDF );  
Regulation EC/3577/92/EEC on freedom to provide services to maritime transport within member States 
(maritime cabotage) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=OJ:L:1992:364:0007:0010:EN:PDF );  
Regulation EC/4058/86 on coordinate d action to safeguard free acce ss to cargoes in ocean trades 
(viewed at: http://eur-lex.europa.eu/Lex UriServ/LexUriServ.do?ur i=OJ:L:1986:378:0021:0023:EN:PDF ) 
Anti-dumping: Regulation EC/4057/86 of 22 December  1986 on unfair pricing pr actices in maritime 
transport (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=OJ:L:1986:378:0014:0020:EN:PDF ) 
State aids: 2004 Community guidelines on state aid to maritime transport (Commission Communication 
C(2004) 43) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=CELEX:52004XC0117(01):EN:NOT) , complemented by the 
Communication from the Commission providing guidan ce on state aid to sh ip-management companies 
(viewed at: http://eur-lex.europa.eu/Lex UriServ/LexUriServ.do?uri=CELEX:52009XC0611(01):EN:NOT ) WT/TPR/S/284 • European Union 
 
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  Antitrust:  
Regulation EC/1419/2006 of 25 September 2006 repea ling Regulation EC/4056/ 86 and hence the block 
exemption for liner conferences,  and amending Regulation EC /1/2003(the generic competition 
regulation) by extending its scope to include cabo tage and international tramp services (viewed at: 
http://eur-lex.europa.eu/LexUriServ/Le xUriServ.do?uri=CELEX:32006R1419:EN:NOT ) 
Regulation (EC) No 246/2009 on consortia (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriS erv.do?uri=CELEX:32009R0246:EN:NOT ) 
2008 Guidelines on the application of Article 81 of the EC Treaty to maritime transport serv ices (viewed 
at: http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=CELEX:52008XC0926(01):EN:NOT ) 
Common external policy: in terms of legal instruments it is so far limited to a maritime agreement with 
China signed on 6 December  2002 which entered into forc e on 1 March 2008 (viewed at: 
http://ec.europa.eu/world/agreements/downl oadFile.do?fullText=yes&treatyTransId=12968 ) 
Main regulatory development since last TPR 
The following two Directives, adopte d in 2012, are worth mentioning: 
Directive 2012/33/EU on Sulphur cont ent of marine fuels (amending Directive 1999/32/EC) (viewed at: 
http://eur-lex.europa.eu/LexUriServ/LexU riServ.do?uri=OJ:L:2012:327:0001:0013:EN:PDF ) 
Directive 2012/35/EU on minimum level of training of seafarers (STCW Convention), amen ding Directive 
2008/106/EC (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriSer v.do?uri=OJ:L:2012:343:0078:0105:EN:PDF ) 
On-going regulatory developments 
Review of the 2004 state aids  guidelines: the public consultation of  member States and stakeholders on 
the functioning of the guide lines took place between 14 February 2012 and 14 May 2012. The 
contributions to the public consultation are currentl y being assessed and on this basis it will be decided 
on the follow up of the review of the Guidelines on State aid to maritime transport. 
Future of the 2008 maritime antitrus t guidelines: a public consultati on was undertaken from 4 May 2012 
to 27 July 2012. These guid elines were adopted in 2008 to ensure a smooth transition to the application 
of the general antitrust rules to maritime transport. The contributions to the public consultation are 
currently being assessed. No decision has yet been made. 
European port policy: a new European port polic y was announced by the 2011 transport white paper 
(viewed at: http://eur-lex.europa.eu/L exUriServ/LexUriServ.do? uri=CELEX:52011DC0144:EN:NOT ). 
In 2012, the Commission carried out an exhaustive stak eholders' consultation exercise for the review of 
the EU ports' policy. The results of the extended impact assessment and the Commission's proposal for 
action in this field will be presented to the Euro pean Parliament and Council before summer 2013. The 
main objectives of the review are the modernization and full integration of ports in the Trans-European 
Transport Network (TEN-T), achievin g an attractive framework for in vestment and jobs in ports and 
ensuring the trade facilitation role of ports in the context of the economic recovery process. The 
Commission is also actively pursuing the provision of infrastructure for clean fuels in ports.  
Greenhouse gas emissions: the Commission is prep aring a legislative proposal for a monitoring, 
reporting and verification system as a first step in  addressing greenhouse gas emissions from shipping. 
Discussions about further global measures are on-going  at IMO level, including as regards intermediary 
steps to quickly deliver emissions reductions, such as such as energy efficiency measures for existing 
ships. 
Common external policy: the negotiat ions of a maritime agreement wi th India are not progressing for 
the moment. However, the FTA negotiations with Indi a take due account of maritime transport aspects. 
Source: Information provided by  the European Commission.  
4.137.  EU trade regimes for maritime transport services appear overall very open. EU GATS 
commitments are however somewhat limited. This is  due to the withdrawal of the EU's extensive 
offer at the end of the 1995-1996 Negotiating Group on Maritime Transport Services (NGMTS) 
negotiations due to the lack of balance achiev ed. Actual EU commitments therefore essentially 
concern member States having joined the EU after 1996. The offer tabled by the EU in the context of the Doha Development Agenda is similar to the EU NGMTS offer and largely reflects the applied regime which is very liberal, except for cabotage which is not offered, while it has been liberalized 
intra-EU to EU flags. 
4.138.  The EU-CARIFORUM, EU-Chile and EU-Korea  FTAs contain extensive maritime transport 
commitments, with no restrictions regarding modes 1 and 2 for international freight (except in 
some member States where feedering is subject to authorization under EU-CARIFORUM, and for WT/TPR/S/284 • European Union 
 
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  Bulgaria and Romania for which modes 1 and 2 are unbound under EU-Chile). Mode 3 remains, as 
is usual, unbound for the registration conditions and not subject to restrictions (except minor individual cases) for commercial presence onshore. All maritime auxiliary services are committed though with various regimes depending of th e member State, the mode, and the agreement 
concerned. The EU-Chile FTA contains in addition access to use of harbour services additional 
commitments , while EU-Korea contains several members state level MFN exemption (Finland and Sweden for cabotage, Germany for rental and leasing, Bulgaria for the UN liner code and cargo 
sharing agreements and for reciprocity for cargo handling, and storage and warehousing). 
Table A4.12 describes in detail GATS and FTA commitments for the maritime transport sector. 
4.3.3.4  Road transport services  4.139.  Road transport is a major economic sector in the EU as its inter-modal share is 46.6% of 
total transport for freight and 73.8% for passengers (including passengers' cars). It employs 
2 million persons directly and accounts for 2% of EU GDP. Table 4.41 describes, by member 
States, the fleets of vehicles and the volume of traffic for both freight and passenger traffic. 
Table 4.41 Road freight and passenger transp ort vehicle fleet and traffic, by member 
States, 2010 
  Road freight transport Road passenger transport 
Fleet 
(vans and 
lorries) Volume 
(million 
tonne/km) Fleet 
(buses and 
motor coaches) Volume 
(million 
passenger/km) 
Austria 396,788 16,539 9,648 .. 
Belgium 746,820 44,812 16,138 132,980 
Bulgaria .. 19,453 23,857 10,613 
Cyprus 120,690 44,812 3,403 .. 
Czech Republic 587,032 51,832 19,653 79,944 
Denmark 485,166 10,573 14,496 67,499 
Estonia 81,204 6,027 4,407 2,266 
Finland 383,158 25,961 11,610 72,285 
France 6,359,000 283,000 86,000 777,000 
Germany 4,432,000 434,000 76,463 948,800 
Greece 1,381,621 29,815 38,260 120,700 
Hungary 451,321 33,721 17,641 72,044 
Ireland 343,940 10,940 8,556 52,900 
Italy 4,556,648 175,775 98,666 803,700 
Latvia 71,575 10,590 5,377 14,288 
Lithuania 133,921 19,398 13,261 17,308 
Luxembourg 35,628 8,694 1,637 7,400 
Malta  45,485 .. 1,835 .. 
Netherlands 1,003,965 75,783 11,277 153,300 
Poland 3,174,755 223,170 97,044 319,504 
Portugal 109,727a 34,640 .. 94,300 
Romania 667,219 25,889 40,877 87,500 
Slovakia  296,511 27,411 9,360 31,388 
Slovenia 89,219 14,762 2,400 28,800 
Spain 5,103,980 210,068 62,445 392,500 
Sweden 525,102 36,300 13,873 108,700 
United Kingdom 3,678,000 146,685 171,000 700,300 
EU total 35,677,789 2,020,650 879,532 5,096,019 
.. Not available. 
a Data for 2009. Source: International Road Federation (2012), IRF World Road Statistics 2012: Data 2005-2010 , Geneva. 
4.140.  Table 4.42 describes the market structure and regulatory framework of EU toad transport 
services. WT/TPR/S/284 • European Union 
 
- 168 - 
 
  Table 4.42 Market structure and regulatory framework of EU road transport services 
Economic indicators 
Employment: 5 million (2011) 
Contribution to EU GDP: 2% (2011) 
Road freight transport split by type of operation (2011):  
 National transport: 1,162 billion tonne-km (67%) 
 International transport (without cabotage): 545 billion tonne-km (32%, of which 97% 
intra-EU, 3% extra-EU) 
 Cabotage (i.e. transport within one country by vehicles registered in another country): 
21 billion tonne-km (1%) 
 Total: 1,728 billion tonne-km 
Traffic: road freight (2010): 2,020,650 million tonne/km; road passenger (2010): 
5,096,019 million passenger/km.  
Fleet: road freight (2010): 35,677,789 vans and lorries; road passenger (2010): 879,532 buses 
and motor coaches. 
Existing regulatory regime (EU level)  
Single road freight and passenger transport market: Regulations 1071/2009 and 1072/2009, 
which entered into force on 4 December 2011 and replace Directive 96/26/EC, stipulate that to 
carry goods or passengers between member States, operators must fulfil four criteria, namely 
good repute, sound financial standing – i.e. capita l assets equivalent to €9,000 for the first vehicle 
and €5,000 for each additional vehicle – profe ssional competence through the passing of a 
standard exam, and effective and stable establishment (viewed at: 
(http://europa.eu/legislation_summaries/transport/road_transport/index_en.htm ). 
National authorities carry out regular checks to ensure that operators continue to satisfy the four 
criteria. Operators fulfilling these criteria obtain a community licence from their own member State 
which allows them to carry out cross-border transport throughout the Union. A certified copy of 
the community licence must be carried in each of their vehicles. Drivers from non-EU countries 
must carry an attestation which certifies that they are legally employed by a licenced EU 
road-haulage operator. 
Road charging system: the present EU road ch arging system is based on the "Eurovignette" 
directive. First adopted in 1999, it allows member States to levy a charge on heavy goods vehicles 
using trunk roads so as to pay for the maintenance and repair of the road infrastructure. An 
updated Eurovignette directive adopted in 2011, directive 2011/76/EU and which should be 
transposed at the latest by October 2013, also provides for an increased charge to take account of 
exhaust emissions and noise pollution. It applie s the "polluter-pays" principle whereby cleaner 
trucks will pay less than those with higher exhaust emissions. The new legislation also authorizes 
national governments to charge higher tolls at peak times. It allows an extra toll charge in 
mountain areas under certain conditions, principally for the revenue to be invested in alternative 
route construction (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:269:0001:0016:EN:PDF ). 
Passengers' rights:  the EU adopted a new regulation, Regulation 181/2011 in February 2011, 
setting out for the first time a series of rights for passengers travelling long distances by coach or 
bus. This brings road transport in line with rail, air and sea travel where passengers already enjoy 
a series of rights. The Regulation will apply fr om March 2013. Subject to certain exceptions, this 
Regulation applies to passengers travelling with re gular services where either the boarding or the 
arrival point is within the European Union (EU) an d where the scheduled distance of the service is 
250 km or more. The Regulation covers non-discrimination between passengers regarding 
transport conditions offered by carriers, rights of passengers in the event of accidents, non-
discrimination and assistance for disabled persons and persons with reduced mobility, rights of 
passengers in case of cancellation or delay, minimum information to be provided to passengers, 
the handling of complaints and general rules on enforcement (viewed at: ( http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32011R0181:EN:NOT ). WT/TPR/S/284 • European Union 
 
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  Common external policy: the common external policy is somewhat limited as most international 
road transport relations are regulated by bilateral road transport agreements concluded at 
member-States level pending the inception of a glob al common external policy for road transport. 
Its main areas of applications are: 
 EEA: full participation of the EEA countries (I celand, Liechtenstein and Norway) to the EU 
single market. 
 EU-Switzerland: traffic-wise, this agreement, signed on 21 June 1999 and entered into force 
on 1 June 2002, liberalizes road transport between the member States of the EU and 
Switzerland and opens up the market for transport between EU member States (" grand 
cabotage ") to Swiss carriers. At the same time, cabo tage in the strict sense of the word (i.e. 
road transport within Switzerland or within a member State of the EU) is not liberalized. The 
agreement does not affect triangular quotas for freight or existing cabotage rights for 
passenger transport. Finally, the agreement provides for mutual recognition of the licences 
needed to gain admission to the occupation, a general harmonization of technical standards, 
and coordination of transport policies, in particular where combined rail-road transport is 
concerned (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:22002A0430%2803%29:EN:NOT ). 
 AETR (European Agreement Concerning the Work of Crews of Vehicles Engaged in 
International Road Transport): through this agreement, the EU promotes its social rules in 
other European neighbouring countries, plus th e Caucasus and Central Asia. The EU member 
States are among the 50 contracting partie s to the AETR. The AETR has aligned its 
provisions for driving time, breaks and rest periods with current EU legislation. AETR 
countries have also introduced the digital tachograph which became compulsory in 2010 in 
vehicles involved in international transport (viewed at: 
http://www.unece.org/fileadmin/DAM/trans /doc/2010/sc1/ECE-TRANS-SC1-2010-AETR-
en.pdf  and http://www.unece.org/trans/conventn/legalinst_21_OLIRT_AETR.html ). 
 Interbus: the Interbus agreement on international occasional carriage of passengers by 
coach and bus facilitates passenger transport services between the EU and a number of 
third countries (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:321:0013:0043:EN:PDF ). 
Member state level external policy 
The WTO LIBRA database includes 530 agreements involving an EU member State and a third 
country (viewed at: 
http://www.wto.org/english/tratop_e/ser v_e/transport_e/transport_land_e.htm )  
ECMT multilateral quotas: total EURO III safe lorries: 1,950; total EURO IV safe lorries: 1,080; and 
total EURO V safe lorries: 400. For individual member States, see Table 4.43  
On-going regulatory developments  
Single market: The Commission has taken note of  the conclusions of the June 2012 High-Level 
Group on the internal market for road transport (viewed at: 
http://ec.europa.eu/transport/modes/road/doc/2012-06-high-level-group-report-final-report.pdf  
It is now carrying out its own assessment of the situation of the EU road-haulage market, as 
required under Article 17(3) of Regulation (EC) No 1072/2009. According to this text, the 
Commission must produce by the end of 2013 a report assessing the situation of the EU 
road-haulage market, so as to determine whether further opening of domestic markets can be 
envisaged. Based on first results, the situation s eems to be appropriate for further opening, and a 
legislative proposal can be expected by mid-2013 along with the report on the situation of the 
market.  
Road charging:  An initiative on smart pricing has already been announced in the 2011 White Paper 
(initiative nr 39) (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52011DC0144:EN:NOT ) 
On the basis of the results of an Impact Assessm ent currently under preparation, the Commission 
will determine the nature and content of this initiative. WT/TPR/S/284 • European Union 
 
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  Weight and dimensions of vehicles: a review of current rules (40 or 44 tonnes when carrying a 
container for combined transport operations + spec ific member-State-level exceptions for heavier 
and longer vehicles to carry out specific tasks) has been announced. The European Commission is 
due to submit proposals in 2013 to adapt maximum dimensions of vehicles, taking into account 
factors like better aerodynamic performance, fuel consumption, emissions and the use of electric 
trucks with heavy batteries. The Commission will also consider the potential of new technology, 
and the promotion of intermodality for freight transport. 
Enforcement of social regulations: on 19 July 2011,  in order to further improve the efficiency of 
the tachograph system, the Commission adopted a legislative proposal amending the current 
tachograph regulation 3821/85. The reasons behind this initiative were to deter fraud and have 
greater control to increase the cost efficiency of the digital tachograph. It contains technical 
measures, such as the use of GNSS to record the starting and ending point of a journey, of remote 
communication solutions for filtering checks and of an intelligent transport system (ITS) standard 
interface. It also contains non-technical measures, like the new rules for approval and audit of 
workshops, common training methods for enforcement officers, new rules on sanctions and legal 
basis for the existing TACHO  net system of exchange of information on driver cards or more 
flexibility for member States in granting the ex emptions foreseen by Article 13 of Regulation 
561/2006. The proposals are still under examination by the co-legislators. 
Common external policy:  
 The negotiations of a draft agreement between  the EU and the Balkan States (Albania, 
Bosnia and Herzegovina, Croatia, Kosovo, FYROM, Montenegro, and Serbia) initiated in 
February 2010 are on-going. Their aim is to extend the single road transport market to 
other countries and to ensure regulatory convergence. 
 The Interbus agreement on international occasional carriage of passengers by coach and bus 
facilitates passenger transport services between the EU and a number of third countries 
(Albania, Bosnia-Herzegovina, Croatia, FYROM, Moldova, Montenegro, Turkey and Ukraine). 
In 2010 the European Commission submitted a recommendation to the Council in order to 
authorize the Commission to open negotiations to enlarge the scope of the Interbus 
agreement to include regular passenger transport. Despite the progress achieved, a final 
agreement on the issue has yet to be reached. 
 In parallel, a similar proposal (the Omnibus  agreement) has been discussed in the context of 
the UN-ECE, at expert group level. Given the ov erlapping of this proposal with the ongoing 
discussions within the EU, the Commission has not participated in the workings of the 
UN-ECE expert group. 
Source: Information provided by the EU Commission. 
4.141.  Table 4.43 describes the breakdown by member States and by vehicle environmental 
category of licences accruing to EU member States for 2010 under the European Council of 
Ministers of Transport pan-European multilateral quota system. 
Table 4.43 Breakdown of EU member States ECMTa multilateral quotas, by vehicle 
environmental category, 2010  
 EURO III safe lorries EURO IV safe lorries EURO V safe lorries 
Annual  Short 
term Total Annual  Short 
term Total Annual Short 
term Total 
Austria    16  16    
Belgium 60  60 51  51 60  60 
Bulgaria 76 15 91 50 16 66    
Cyprus .. .. .. .. .. .. .. .. .. 
Czech 
Republic 124 17 141       
Denmark 76  76 38  38 18  18 
Estonia 77 1 78 49 1 50    
Finland 25  25 25  25 20  20 
France 130  130 82  82 40  40 
Germany 264 10 274 12  12    
Greece 110  110 25  25 14  14 WT/TPR/S/284 • European Union 
 
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   EURO III safe lorries EURO IV safe lorries EURO V safe lorries 
Annual  Short 
term Total Annual  Short 
term Total Annual Short 
term Total 
Hungary 79 21 100 41  41    
Ireland 10  10 6  6 5  5 
Italy 67  67       
Latvia  21 21 97 10 107    
Lithuania 60 3 63 65  65    
Luxembourg 18 1 19 12  12 24  24 
Malta 20  20 8  8 2  2 
Netherlands 40  40 80  80 88  88 
Poland 51  51 102  102    
Portugal 50 1 51 15  15 66  66 
Romania 156  156 52  52    
Slovakia 85  85 43  43    
Slovenia 102  102 26  26    
Spain 74  74 75  75    
Sweden 73  73 50  50 30  30 
United 
Kingdom 33  33 33  33 33  33 
Total   1,950   1,080   400 
.. Not available.  
a European Council of Mi nister of Transport. 
Source: WTO document S/C/W/324, 29 October 2010. 
4.142.  The road transport sector is essentially regulated at member-State level and covers a 
multitude of different segments: taxis, vehicle rental, urban collective transport, road freight 
transport, coaches, and various auxiliary services su ch as toll roads and maintenance of vehicles to 
name a few. It is therefore impossible to describe in any detail their trade regimes in a few lines, let alone to compare the GATS trade regime, FTA trade regimes, the other preferential regimes (international road transport being by excelle nce a sector regulated by bilateral sectoral 
agreements) and finally the applied regime. 
4.143.  Table A4.13 attempts nevertheless to do so partially for GATS and FTA commitments. The 
overlapping picture is that the core of sector (transport activities, strictly speaking) is in general 
not committed for international transport and subject to numerous authorization procedures for 
mode 3, while auxiliary services appear more largely committed. There are no substantial differences between the GATS and FTA commitments though the FTA commitments appear slightly 
more liberal.  
4.144.  In terms of applied regime, one should distinguish between international transport (both 
passenger and freight), cabotage and the establishment regime. International transport is regulated by a series of bilateral agreements concluded so far quasi-uniquely at member-State 
level and based on reciprocity. The WTO LIBRA data base contains the text of over 500 agreements 
signed by individual member States with third pa rties. Regarding cabotage it has been liberalized 
intra-EU to the benefit of EU flags within the limit of three consecutive voyages following an 
international trip. Finally there are no EU-level foreign-ownership restrictions, the sector abiding to 
the general rules of the treaties on establishment. 
4.3.4  Pipeline services  
4.145.  Table 4.44 describes the main economic indi cators of the EU oil pipeline transport sector. 
Table 4.44 Main economic indicators of  the EU pipeline transport sector, 2011
 
 Oil 
pipelines 
(km) Cross-border oil 
pipelines 
('000 tonnes/day) Gas 
pipelines 
(km) Cross-border gas 
pipelines 
(mcm/day) 
To From To From 
Austria 595.5 42.0  1,600.0 170.2 172.2 WT/TPR/S/284 • European Union 
 
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   Oil 
pipelines 
(km) Cross-border oil 
pipelines 
('000 tonnes/day) Gas 
pipelines 
(km) Cross-border gas 
pipelines 
(mcm/day) 
To From To From 
Belgium 771.0   4,040.0 337.9 216.2 
Bulgaria 680.0 1,376.9  2,645.0 71.5 51.2 
Cyprus       
Czech 
Republic 1,774.3   3,640.0 223.5 192.5 
Denmark 517.0   832.0  16.9 
Estonia       
Finland    1,154.0  22.5 
France 9,211.0 213.7  937.0 29.0 183.3 
Germany 4,871.5 208.0  31,515.0 231.2 495.4 
Greece 103.0  6.5 1,232.0  20.6 
Hungary 1,270.0 64.6 28.5 5,783.0 83.0 35.3 
Ireland    1,873.0 8.2 27.7 
Italy 2,618.0   8,894.0 293.1 14.3 
Latvia    1,281.0 9.0 19.8 
Lithuania    1,868.0 15.1 27.1 
Luxembourg    411.0  6.3 
Malta       
Netherlands  4.0  11,500.0 317.9 128.0 
Poland 147.4   10,409.0 201.2 17.0 
Portugal    1,299.0 13.2 7.4 
Romania 873.0   13,642.0 39.4  
Slovakia 1,032.0 54.8 35.3 500.6 313.9 340.3 
Slovenia    1,018.0 9.2 4.8 
Spain    9,984.0 18.5 67.4 
Sweden    620.0  8.7 
United 
Kingdom 6,709.0   8,380.0 82.7 240.4 
Total  31,172.7 1,964.0 70.3 125,027.6 2,467.8 2,315.2 
Source: European Commission document SWD(2012) 367, 15 November 2012. Viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0367:FIN:EN:PDF .  
4.146.  Table 4.45 describes the regulatory framework that prevailed during the period under 
review as well as the main regulatory change that  has intervened during this period, the adoption 
of the so-called "third energy package". 
Table 4.45 EU regulatory framework for pipelines services 
Existing legislation during the period under  review (so called "second energy package") 
Directive 2003/55/EC concerning common rules for the internal market in natural gas and 
repealing Directive 98/30/EC 
Date of adoption: 23 June 2003 
Deadline for transposition: July 2007 
Reference: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:176:0057:0057:EN:PDF  
Main provisions: 
 Definition of the public services obligations where member States may impose undertakings 
relating to security, including security of suppl y, regularity, quality and price of supplies, and 
environmental protection including energy efficiency and climate protection. 
 Imposition of a system of authorizations based on public, objective and non-discriminatory 
criteria for undertakings applying for an authorization to build and/or operate natural gas 
facilities or applying for an authorization to supply natural gas. WT/TPR/S/284 • European Union 
 
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   Publication of the technical rules ensuring  interoperability of network systems. 
 Unbundling of transmission system operators. Where the transmission-system operator is 
part of a vertically integrated undertaking, it has to be independent at least in terms of its 
legal form, organization and decision-making from other activities not related to 
transmission. These rules shall not create an obligation to separate the ownership of assets 
of the transmission system from the vertically integrated undertaking. 
 Rules on unbundling and transparency of accounts. 
 Rules on third party access to transmission systems based on published tariffs, applicable to 
all eligible customers, including supply undertakings, and applied objectively and without 
discrimination between system users (these obligations may be waived under certain 
conditions for new infrastructures in order to encourage investment). 
 Establishment of independent regulatory authorities.  
 Safeguard measures. 
Regulation (EC) No. 1775/2005 on conditions for access to the natural gas transmission networks 
Date of adoption: 28 September 2005 
Date of implementation: 1 July 2006 
Reference: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:289:0001:0001:EN:PDF  
Main provisions:  
 Setting of harmonized principles for tariffs, or the methodologies underlying their 
calculation, for access to the network. 
 Establishment of third-party access services and harmonized principles for capacity 
allocation and congestion management. 
 Determination of transparency requirements, balancing rules and imbalance charges, and 
facilitating capacity trading. 
Regulatory changes implemented during the period under review  (so called "third 
energy package")  
Directive 2009/73/EC concerning common rules for the internal market in natural gas and 
repealing Directive 2003/55/EC  
Date of adoption: 13 July 2009 
Deadline for transposition: 3 March 2011, except for Article 11 of the directive (relating to the 
certification of transmission system owners or transmission system operators which are controlled 
by a person or persons from a third country or third countries), 3 March 2013  
Reference: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:211:0094:0136:en:PDF  
Main provisions: 
 Reinforcement of the unbundling provisions of the previous package through the definition of 
three possible models of unbundling, subject to various level of disciplines and monitoring: 
Model 1: Ownership Unbundling (OU): if a member State decides to impose full ownership 
unbundling, all integrated energy companies would have to give up their rights in either 
energy supply or networks. In this case, no supply and production company would be 
allowed to control a transmission system operator, nor exercise voting rights or appoint 
board members. Supply and production companies are free to decide to whom and at what 
price they sell their networks. 
Model 2: Independent System Operator(ISO): under this model, the supply company can 
still own the physical network, but it has to leave the entire operation, maintenance and 
investment decisions to an independent compan y which operates the network. It is subject 
to stricter regulation and permanent monitoring (e.g. its investment planning has to be 
approved the National regulatory Authority). WT/TPR/S/284 • European Union 
 
- 174 - 
 
  Model 3: Independent Transmission System Operator (ITO): under this model, the supply 
company can own and operate the network. The management of the network must be done 
by a subsidiary of the parent company, which can make all financial, technical and other 
decisions independently from the parent company. It is subject to heavy regulation and to 
permanent monitoring so as to avoid conflicts of interests. 
 institution of a designation and certification system to ensure compliance with the 
unbundling requirements above with a specific procedure to take into account the situation 
of transmission system owner or a transmission system operator controlled by a person or 
persons from a third country or third countries , with a specific role for the Commission 
(Article 11.5 to 11.7) a specific criteria (secur ity of energy supply of the Community, Article 
11.3.b), and a deferred date of implementation (3 March 2013, Article 54.1). 
 Regarding third-party access, the principle did not change in comparison with Second 
Package however the Third-Party Access is applied more consistently and non-discriminatory 
in the view of the network codes for access to infrastructure (see below)  .  
Regulation (EC) No. 715/2009 on conditions for a ccess to the natural gas transmission networks 
and repealing Regulation (EC) No. 1775/2005  
Date of adoption: 13 July 2009 
Date of implementation: 3 March 2011 
Reference: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:211:0036:0054:en:PDF  
Main provisions: 
 Establishment of a new European Network for Transmission System Operators (ENTSO) that 
will bring together EU electricity and gas grid operators to cooperate and develop common 
commercial and technical codes and security standards in order to ensure better 
cross-border collaboration and investment. 
 ENTSO "Network codes" in accordance with the principles that ACER (the Agency for the 
Cooperation of Energy Regulators, an independent regulatory agency, common to the gas 
and electricity sectors established by a separate regulation) are set out in "framework 
guidelines". The network codes are rules which regulate how networks are operated. These 
rules address aspects of network security and interconnection, as well as access of persons 
other than the owners of such an infrastructure ("third party access"). Network codes can be 
made legally binding by a separate Commission decision.  
 Regarding third-party access the network codes, in particular network codes on capacity 
allocation and congestion management, EU-wide auctions are held for capacity of networks 
and non-discriminatory rules for network access. 
Source:  Information provided by the European Commission.  
4.147.  EU commitments regarding pipeline transport services appear limited both under GATS and 
in FTAs (Table A4.14). Under GATS, the key modes for the provision of these services' mode 1 and mode 3 are unbound for all members States both for transport of fuels and transport of goods 
other than fuels, except in Lithuania where there are no restrictions for mode 3, and in Hungary 
where mode 3 provision is subject to a concession contract.  
4.148.  The FTA containing pipeline commitments (EU-CARICOM, EU-Korea, and EU-Chile) echo 
the GATS reservation, except for mode 3 for pipe line transport of goods other than fuel in the 
EU-CARICOM and EU-Korea regime, where there are no restrictions, except in Austria (nationality 
or residency obligation to obtain exclusive rights). The EU-level applied regime, both for EU and third party providers is described above in the regulatory framework table (Table 4.45). 
 WT/TPR/S/284 • European Union 
 
- 175 - 
 
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  WT/TPR/S/284 • European Union  
 
- 179 - 5  APPENDIX TABLES 
Table A1. 1 Key economic indicators, 2010-12  
  Real GDP growth rate - 
volume (% change on 
previous year) Inflation rate (HICP 
annual average rate of 
change) (%) Unemployment (% of 
labour force) General government 
gross debt (% of GDP) General government 
balance (% of GDP) External current account 
balance (% of GDP) 
2010 2011  2012 2010 2011  2012  2010  2011  2012a 2010  2011 2012  2010  2011  2012  2010  2011  2012 
EU-27 2.1 1.5  -0.3 2.1 3.1  2.6 9.7 9.7 10.5 80.0 82.5 ..  -6.5 -4.4 .. -0.5 -0.2 .. 
Austria 2.1 2.7 0.8 1.7 3.6 2.6 4.4 4.2 4.4 72.0 72.4 .. -4.5 -2.5 .. 3.4 0.6 .. 
Belgium 2.4 1.8  -0.2 2.3 3.4  2.6 8.3 7.2 7.3 95.5 97.8 ..  -3.8 -3.7 .. 1.9 -1.4 .. 
Bulgaria 0.4 1.8 0.8 3.0 3.4 2.4 10.3 11.3 12.2 16.2 16.3 .. -3.1 -2.0 .. -1.5 0.3 .. 
Cyprus 1.3 0.5  -2.4 2.6 3.5  3.1 6.5 7.9 12.1 61.3 71.1 ..  -5.3 -6.3 .. -9.8 -4.7 .. 
Czech 
Republic 2.5 1.9 -1.3 1.2 2.1 3.5 7.3 6.7 7.0 37.8 40.8 .. -4.8 -3.3 .. -3.9 -2.9 .. 
Denmar k 1.6 1.1  -0.6 2.2 2.7  2.4 7.5 7.6 7.5 42.9 46.6 ..  -2.5 -1.8 .. 5.9 5.6 .. 
Estonia 3.3 8.3 3.2 2.7 5.1 4.2 16.9 12.5 10.1 6.7 6.1 .. 0.2 1.1 .. 2.9 2.1 .. 
Finland 3.3 2.8  -0.2 1.7 3.3  3.2 8.4 7.8 7.7 48.6 49.0 ..  -2.5 -0.6 .. 1.5 -1.6 .. 
France 1.7 1.7 0.0b 1.7 2.3 2.2 9.7 9.6 10.2 82.3 86.0 .. -7.1 -5.2 .. -1.6 -2.0 .. 
Germany 4.2 3.0  0.7 1.2 2.5  2.1 7.1 5.9 5.5 82.5 80.5 ..  -4.1 -0.8 .. 6.0 5.7 .. 
Greece -4.9c -7.1c -6.4c 4.7 3.1 1.0 12.6 17.7 24.3 148.3  170.6 .. -10.7  -9.4 .. -10.1  -9.9 .. 
Hungary 1.3 1.6  -1.7 4.7 3.9  5.7 11.2 10.9 10.9 81.8 81.4 ..  -4.4 4.3 .. 1.1 0.9 .. 
Ireland -0.8 1.4 0.7b -1.6 1.2 1.9 13.9 14.7 14.9 92.2 106.4 .. -30.9  -13.4  .. 1.1 1.1 .. 
Italy 1.7 0.4  -2.4 1.6 2.9  3.3 8.4 8.4 10.6 119.2  120.7 ..  -4.5 -3.9 .. -3.5 -3.1 .. 
Latvia -0.9d 5.5d 5.6 -1.2 4.2 2.3 19.8 16.2 14.9 44.5 42.2 .. -8.1 -3.4 .. 2.9 -2.1 .. 
Lithuania 1.5 5.9  3.6 1.2 4.1  3.2 18.0a 15.3 13.3 37.9 38.5 ..  -7.2 -5.5 .. 0.1 -3.7 .. 
Luxembourg 2.9 1.7 0.2b 2.8 3.7 2.9 4.6 4.8 5.0 19.2 18.3 .. -0.8 -0.3 .. 8.2 7.1 .. 
Malta 2.9 1.7  0.8 2.0 2.5  3.2 6.9 6.5 6.5 68.3 70.9 ..  -3.6 -2.7 .. -4.9 -0.3 .. 
Netherlands  1.6 1.0 -0.9 0.9 2.5 2.8 4.5 4.4 5.3 63.1 65.5 .. -5.1 -4.5 .. 7.7 9.7 .. 
Poland 3.9 4.3  2.0 2.7 3.9  3.7 9.7 9.7 10.1 54.8 56.4 ..  -7.9 -5.0 .. -5.1 -4.9 .. 
Portugal 1.9 -1.6 -3.2 1.4 3.6 2.8 12.0a 12.9 15.9 93.5 108.1 .. -9.8 -4.4 .. -10.6  -7.0 .. 
Romania -1.1 2.2  0.3 6.1 5.8  3.4 7.3 7.4 7.0 30.5 33.4 ..  -6.8 -5.5 .. -4.4 -4.6 .. 
Slovakia 4.4 3.2 2.0 0.7 4.1 3.7 14.5 13.6 14.0 41.0 43.3 .. -7.7 -4.9 .. -3.7 -2.1 .. 
Slovenia 1.2 0.6  -2.3 2.1 2.1  2.8 7.3 8.2 9.0 38.6 46.9 ..  -5.7 -6.4 .. -0.6 0.0 .. 
Spain -0.3 0.4 -1.4 b 2.0 3.1 2.4 20.1 21.7 25.1 61.5 69.3 .. -9.7 -9.4 .. -4.5 -3.5 .. 
Sweden 6.6 3.7  0.8 1.9 1.4  0.9 8.6 7.8 8.0 39.5 38.4 ..  0.3 0.4 .. 6.8 7.1 .. 
United 
Kingdom  1.8 0.9 0.2 3.3 4.5 2.8 7.8 8.0 7.9 79.4 85.0 .. -10.2  -7.8 .. -3.3 -1.4 .. 
.. Not available. 
a Estimate. 
b Forecast. 
c Provisional. d Break in time series. 
Note: Data related to 2012 unemployment rate (estimates) are provided by European Commission. Source:  Eurostat online  database. Viewed at http://epp.eurostat.ec. europa.eu/portal/page/ portal/eurostat/home/  [March 2013].  
 
 WT/TPR/S/284 • European Union 
 
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  Table A1. 2 Structure of imports, 2009-12 
(€ billion and %) 
 2009 2010 2011 2012 
Total (€ billion) 1,234.2 1,530.5 1,721.7 1,791.4 
 (%) 
Primary products 35.7 37.3 41.2 42.2 
Agricultural products 8.2 7.6 7.8 7.5 
Food 6.9 6.1 6.2 6.2 
Fish 1.2 1.1 1.1 1.0 
Other food products and live animals 5.7 5.0 5.2 5.2 
Raw materials 1.3 1.5 1.5 1.4 
Fuels and mining products 27.5 29.8 33.4 34.6 
Ores and other minerals 1.6 2.3 2.5 2.2 
Fuels 24.1 25.0 28.4 30.5 
Petroleum and petroleum products 17.1 18.7 21.6 23.5 
Other fuels 7.0 6.3 6.8 7.0 
Non-ferrous metals 1.8 2.4 2.5 2.0 
Manufactures 59.9 59.3 55.5 53.8 
Iron and steel 1.5 1.7 2.0 1.5 
Chemicals 9.1 9.0 9.0 9.0 
Pharmaceuticals 3.5 3.1 3.1 3.2 
Plastics 1.0 1.1 1.1 1.1 
Other chemicals 4.6 4.7 4.8 4.7 
Other semi-manufactures 4.8 4.9 5.0 4.7 
Machinery and transport equipment 28.6 29.2 25.7 25.2 
Office and telecommunication equipment 11.6 12.6 10.5 10.0 
Electronic data processing and office equipment  4.6 4.9 4.1 4.1 
Telecommunications equipment 5.1 4.9 4.3 4.4 
Integrated circuits and electronic components 2.0 2.8 2.2 1.5 
Transport equipment 7.5 7.3 5.9 6.0 
Automotive products 3.1 2.9 2.8 2.7 
Other transport equipment 4.4 4.4 3.1 3.3 
Other machinery 9.4 9.3 9.3 9.2 
Power generating machinery 2.0 1.8 1.7 1.9 
Non electrical machinery 3.8 3.7 3.9 3.8 
Electrical machinery 3.7 3.8 3.6 3.6 
Textiles 1.3 1.3 1.3 1.2 
Clothing 5.0 4.4 4.3 3.9 
Other manufactures 9.6 8.9 8.3 8.3 
Personal and household goods 2.4 2.3 2.1 2.1 
Scientific and controlling instruments 2.1 1.9 1.9 1.9 
Miscellaneous manufactures 5.1 4.7 4.3 4.3 
Other products 4.4 3.3 3.2 4.0 
Source:  Information provided by Eu ropean Commission (SITC Rev. 4).  
 WT/TPR/S/284 • European Union 
 
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  Table A1. 3 Origin of imports, 2009-12 
(€ billion and %) 
 2009 2010 2011 2012 
Total (€ billion) 1,234. 2  1,530.5 1,721.7 1,791.4 
 (%) 
America 20.3 19.4 19.6 19.7 
United States 12.5 11.3 11.1 11.5 
Other America 7.7 8.0 8.5 8.2 
Brazil 2.1 2.2 2.3 2.1 
Canada 1.6 1.6 1.8 1.7 
Mexico 0.8 0.9 1.0 1.1 
Europe 16.3 14.7 14.9 15.3 
EFTA 12.4 11.0 11.1 11.7 
Switzerland 6.6 5.6 5.5 5.9 
Norway 5.6 5.2 5.4 5.6 
Other Europe 3.9 3.7 3.8 3.6 
Turkey 2.9 2.8 2.8 2.7 
Commonwealth of Independent States (CIS)  12.1 13.3 15.0 15.3 
Russian Federation 9.6 10.5 11.6 11.9 
Kazakhstan 0.9 1.0 1.3 1.4 
Africa 9.1 8.9 8.7 10.4 
Nigeria 0.8 0.9 1.4 1.8 
Libyan Arab Jamahiriya 1.7 1.9 0.6 1.8 
Algeria 1.4 1.4 1.6 1.8 
South Africa 1.6 1.3 1.2 1.1 
Middle East 4.0 4.7 5.8 5.2 
Kingdom of Saudi Arabia 1.0 1.1 1.6 1.9 
Asia 36.9 37.8 35.2 33.3 
China 17.4 18.5 17.1 16.2 
Japan 4.7 4.4 4.0 3.6 
Six East Asian traders 8.7 8.8 7.5 7.2 
Korea, Rep. of 2.6 2.6 2.1 2.1 
Chinese Taipei 1.4 1.6 1.4 1.3 
Singapore 1.2 1.2 1.1 1.2 
Malaysia 1.2 1.4 1.2 1.1 
Thailand 1.2 1.1 1.0 0.9 
Other Asia 6.1 6.1 6.6 6.4 
India 2.1 2.2 2.3 2.1 
Viet Nam 0.6 0.6 0.8 1.0 
Other 1.4 1.3 0.7 0.8 
Source:  WTO Secretariat calculations, based on Eurost at data and information provided by the European 
Commission. WT/TPR/S/284 • European Union 
 
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  Table A1. 4 Structure of exports, 2009-12 
(€ billion and %) 
 2009 2010 2011 2012 
Total (€ billion) 1,099.7 1,356.6 1,558.9 1,686.3 
 (%) 
Primary products 14.7 15.5 16.7 17.5 
Agricultural products 7.3 7.2 7.4 7.6 
Food 6.0 5.9 6.0 6.2 
Fish 0.2 0.2 0.2 0.2 
Other food products and live animals 5.7 5.7 5.8 6.0 
Raw materials 1.3 1.3 1.3 1.4 
Fuels and mining products 7.4 8.3 9.4 10.0 
Ores and other minerals 1.0 1.2 1.2 1.2 
Fuels 5.2 5.6 6.5 7.3 
Petroleum and petroleum products 4.8 5.2 6.0 6.8 
Other fuels 0.4 0.4 0.5 0.5 
Non-ferrous metals 1.3 1.5 1.7 1.5 
Manufactures 82.0 80.8 79.1 79.4 
Iron and steel 2.7 2.5 2.7 2.5 
Chemicals 17.9 17.2 16.4 16.4 
Pharmaceuticals 7.3 6.9 6.6 6.7 
Plastics 2.3 2.4 2.3 2.2 
Other chemicals 8.2 7.9 7.5 7.5 
Other semi-manufactures 7.5 7.4 7.2 7.1 
Machinery and transport equipment 42.0 42.2 41.7 41.9 
Office and telecommunication equipment 5.9 5.6 5.2 4.8 
Electronic data processing and office equipment  2.0 1.8 1.6 1.6 
Telecommunications equipment 2.7 2.7 2.6 2.3 
Integrated circuits and electronic components 1.2 1.1 1.0 0.9 
Transport equipment 13.7 15.5 15.6 16.5 
Automotive products 8.0 9.9 10.5 11.0 
Other transport equipment 5.7 5.6 5.2 5.4 
Other machinery 22.0 20.9 20.7 20.6 
Power generating machinery 3.5 3.2 3.0 3.1 
Non electrical machinery 13.5 12.9 13.2 12.9 
Electrical machinery 5.0 4.8 4.6 4.5 
Textiles 1.2 1.2 1.1 1.0 
Clothing 1.4 1.2 1.3 1.3 
Other manufactures 9.3 8.9 8.7 9.0 
Personal and household goods 1.7 1.6 1.6 1.7 
Scientific and controlling instruments 3.0 3.0 2.9 3.0 
Miscellaneous manufactures 4.5 4.4 4.2 4.4 
Other products 3.3 3.8 4.2 3.1 
Source: Information provided by Eu ropean Commission (SITC Rev. 4).  
 WT/TPR/S/284 • European Union 
 
- 183 - 
 
  Table A1. 5 Destinatio n of exports, 2009-12 
(€ billion and %) 
 2009 2010 2011 2012 
Total (€ billion) 1,099.7 1,356.6 1,558.9 1,686.3 
 (%) 
America 26.7 26.7 25.6 26.2 
United States 18.5 17.9 16.9 17.3 
Other America 8.2 8.8 8.6 8.9 
Brazil 2.0 2.3 2.3 2.3 
Canada 2.0 2.0 1.9 1.9 
Mexico 1.5 1.6 1.5 1.7 
Europe 18.5 18.4 19.4 18.0 
EFTA 11.7 11.4 12.1 11.0 
Switzerland 8.2 8.2 9.0 8.0 
Norway 3.4 3.1 3.0 3.0 
Other Europe 6.8 7.0 7.3 7.0 
Turkey 4.0 4.5 4.7 4.5 
Commonwealth of Independent States (CIS)  8.7 9.1 9.8 10.2 
Russian Federation 6.0 6.3 6.9 7.3 
Ukraine 1.3 1.3 1.4 1.4 
Africa 9.9 9.3 8.8 9.0 
South Africa 1.5 1.6 1.7 1.6 
Algeria 1.3 1.1 1.1 1.2 
Morocco 1.1 1.0 1.0 1.0 
Middle East 8.5 7.8 7.5 7.4 
United Arab Emirates 2.3 2.1 2.1 2.2 
Kingdom of Saudi Arabia 1.7 1.7 1.7 1.8 
Israel 1.0 1.1 1.1 1.0 
Asia 25.4 26.8 27.0 27.0 
China 7.5 8.3 8.7 8.5 
Japan 3.3 3.2 3.1 3.3 
Six East Asian traders 8.1 8.6 8.4 8.7 
Korea, Rep. of 2.0 2.1 2.1 2.2 
Hong Kong, China 1.8 2.0 2.0 2.0 
Singapore 1.9 1.8 1.7 1.8 
Other Asia 6.6 6.6 6.7 6.5 
India 2.5 2.6 2.6 2.3 
Australia 2.0 2.0 2.0 2.0 
Other 2.3 1.9 2.0 2.1 
Source:  WTO Secretariat calculations, based on Euro stat data and information provided by European 
Commission. WT/TPR/S/284 • European Union 
 
- 184 - 
 
  Table A2. 1 Selected EU legislations 
Scope Legislation 
Customs  
Combined Nomenclature, Common Customs Tariff, and 
Integrated Tariff of the European Communities (Taric) Council Regulation (EEC) No. 2658/87 
Customs Code  Council Regulation (EEC) No. 2913/92 
Customs Code's implementing provisions Commission Regulation (EEC) 
No. 2454/93 
External trade   
Exports   
Ban on trade in instruments of torture Council Regulation (EC) No. 1236/2005 
Common rules for export Council Regulation (EC) No. 1061/2009 
Control of exports, transfer, brokering, and transit of 
dual-use items Council Regulation (EC) No. 428/2009 
Export credit insurance Council Directive No. 98/29/EC 
Export of cultural goods Council Regulation (EC) No. 116/2009 
Imports  
Common rules for import Council Regulation (EC) No. 260/2009 
Common rules for imports from certain non-EU member 
States Council Regulation (EC) No. 625/2009 
Procedure for administering quantitative quotas Council Regulation (EC) No. 717/2008 
Trade in seal products Regulation (EC) No. 1007/2009 
Contingency measures   
Anti-dumping measures  Council Regulation (EC) No. 1225/2009 
Anti-subsidy measures  Council Regulation (EC) No. 597/2009 
Protection against subsidies and unfair pricing practices 
which cause injury in the air transport sector Regulation (EC) No. 868/2004 
Protection against trade barriers Council Regulation (EC) No. 3286/94 
Multilateral trade framework   
Adoption of the WTO Agreements Council Decision No. 94/800/EC 
Aspects of intellectual property rights Council Decision No. 94/800/EC 
Aspects relating to trade in goods Council Decision No. 94/800/EC 
Aspects relating to trade in services Council Decision No. 94/800/EC 
Consumer protection  
Food and feed safety Regulation (EC) No. 178/2002 
Genetically modified food and feed Regulation (EC) No. 1829/2003 
Product safety  Directive No. 2001/95/EC 
Competition  
Competition rules (agricultural products) Council Regulation (EC) No. 1184/2006 
Competition rules (firms) Council Regulation (EC) No. 1/2003 
Competition rules (maritime transport) Council Regulation (EEC) No. 4055/86 
Competition rules (rail, road, and inland waterway 
transport) Council Regulation (EC) No. 169/2009 
Competition rules (state aid) Council Regulation (EC) No. 659/1999 
Intellectual property rights  
Biotechnological inventions European Parliament and Council 
Directive No. 98/44/EC 
Community design Council Regulation (EC) No. 6/2002 
Community trade mark Council Regulation (EC) No. 207/2009 
Copyright and related rights Directive No. 2006/116/EC 
Enforcement of intellectual property rights Directive No. 2004/48/EC 
Topographies of semiconductor products Council Directive No. 87/54/EEC 
Procurement  
Public procurement in the fields of defence and security Directive No. 2009/81/EC 
Public procurement in the water, energy, transport, and 
postal services sectors Directive No. 2004/17/EC 
Public works contracts, public supply contracts, and 
public service contracts Directive No. 2004/18/EC WT/TPR/S/284 • European Union 
 
- 185 - 
 
  Scope Legislation 
Taxation: corporate tax   
Common system of taxation applicable in the case of 
parent companies and subsidiaries of different member 
States Directive No. 2011/96/UE 
Common system of taxation applicable to interest and 
royalty payments made between associated companies 
of different member States Council Directive No. 2003/49/EC 
Taxation: excise duty   
Excise duty on alcohol and alcoholic beverages Council Directive No. 92/83/EEC 
Council Directive No. 92/84/EEC 
Council Regulation No. 3199/93 
Excise duty on energy products and electricity Council Directive No. 2003/96/EC 
Excise duty on gas oils and kerosene Council Directive No. 95/60/EC 
Excise duty on manufactured tobacco Council Directive No. 2011/64/EU 
General arrangements for excise duty Council Directive No. 2008/118/EC 
Commission Regulation (EC) 
No. 684/2009 
Taxation: VAT  
Common System of Value Added Tax  Directive No. 2006/112/EC 
Council Implementing Regulation (EU) 
No. 282/2011 
Agriculture   
Agricultural product nomenclature for export refunds Commission Implementing Regulation 
(EC) No. 1253/2012 
Common organisation of agricultural markets and 
specific provisions for certain agricultural products  Council Regulation (EC) No. 1234/2007 
Common rules for direct support schemes for farmers 
under the common agricultural policy and establishing 
certain support schemes for farmers Council Regulation (EC) No. 73/2009 
Fisheries   
Common fisheries policy  Council Regulation (EC) No. 2371/2002 
De minimis  aid for the fisheries sector Commission Regulation (EC) 
No. 875/2007 
State aid for SMEs in the fisheries sector Commission Regulation (EC) 
No. 736/2008 
Energy  
Common rules for the internal market in electricity  Directive No. 2009/72/EC 
Common rules for the internal market in gas Directive No. 2009/73/EC 
Transport (road)  
Common rules for access to the international market for 
coach and bus services Regulation (EC) No. 1073/2009 
Common rules for access to the international road 
haulage market Regulation (EC) No. 1072/2009 
Transport (air)  
Common rules for the operation of air services Regulation (EC) No 1008/2008 
Source: Europa Summaries of EU Legisl ation online information. Viewed at: 
http://europa.eu/legislation_summaries/index_en.htm ; EUR-Lex online info rmation. Viewed at: 
http://eur-lex.europa.eu/ ; and European Commission online information. Viewed at: 
http://ec.europa.eu/taxation_customs/index_en.htm .  
  WT/TPR/S/284 • European Union  
 
- 186 - Table A2. 2 Selected notifications to  the WTO, January 2011-March 2013 
Legal provision Description of requirement Frequency WTO document 
General Agreement on Tariffs and Trade 1994  
Article XXVIII:5 Reservation of rights to modify 
schedule Ad hoc G/MA/254, 3 December 2011 
Article XVII:4(a) and paragraph 1 of 
the Understanding on the 
Interpretation of Article XVII State-trading enterprises and 
products traded by them Every two years (new 
and full notifications) G/STR/N/13/EU, 17 October 2012 
G/STR/N/14/EU, 17 October 2012 
Article XXIV:7(a) Customs unions and free-trade 
areas Ad hoc WT/REG333/N/1/Rev.1, 21 March 2013 
WT/REG333/N/1, 27 February 2013 
WT/REG332/N/1, 27 February 2013 
WT/REG307/N/1, 10 February 2012 
WT/REG302/N/1, 19 October 2011 
WT/REG296/N/1, 8 July 2011 
Agreement on Agriculture  
Article 18.2 Imports under tariff quotas 
(Table MA:2) Annual G/AG/N/EU/12, 13 December 2012 (covers the marketing years 
2009/10 and 2010/11 and the calendar years 2010 and 2011) 
G/AG/N/EEC/67, 18 January 2011 (covers the marketing year 
2008/09 and the calendar year 2009)  
Article 5.7 and 18.2 Special safeguard (Table MA:5) Annual G/AG/N/EU/9, 31 October 2012 (covers the marketing year 
2010/11)  
G/AG/N/EU/5, 24 February 2012 (covers the marketing year 2009/10) G/AG/N/EEC/66, 12 January 2011 (covers the marketing year 2008/09) 
Article 18.2 and 18.3 Domestic support Annual/ad hoc (DS:1, 
and DS:2) G/AG/N/EU/11, 20 November 2012 
G/AG/N/EU/10, 19 November 2012 (covers the marketing year 
2009/10) 
G/AG/N/EU/8, 3 April 2012 
G/AG/N/EU/7, 2 April 2012 (cover s the marketing year 2008/09) 
G/AG/N/EEC/69, 24 January 2011 
G/AG/N/EEC/68, 24 January 2011 (covers the marketing year 
2007/08) 
Article 18.2 Export subsidies (Tables ES:1, 
ES:2, and ES:3) Annual G/AG/N/EU/6, 15 March 2012 (c overs the marketing years 
2009/10) G/AG/N/EEC/70, 16 March 2011 (covers the marketing years 2008/09) 
Article 16.2 Possible negative effects of the 
reform programme on 
least-developed and net 
food-importing developing 
countries Annual G/AG/N/EU/4, 21 February 2012 (c overs the calendar year 2009) 
G/AG/N/EU/3, 17 February 2012 (c overs the calendar year 2008) 
G/AG/N/EU/2, 16 February 2012 (c overs the calendar year 2007) 
G/AG/N/EU/1, 16 February 2012 (c overs the calendar year 2006)  
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- 187 - Legal provision Description of requirement Frequency WTO document 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Annex B, paragraph 3 Enquiry point Once, then changes G/SPS/ENQ/26, 11 March 2011 
Annex B, paragraph 10 National notification authority Once, then changes G/SPS/NNA/16, 11 March 2011 
Article 7 and Annex B, paragraph 5 Proposed and adopted SPS 
regulations Ad hoc Several notifications (series G/SPS/N/EU) 
Agreement on Technical Barriers to Trade  
Articles 2, 3, 5, and 7 Proposed and adopted technical 
regulations and conformity 
assessment procedures Prior to or, for urgent 
problems, 
immediately after the 
measure is taken Several notifications (series G/TBT/N/EU) 
Articles 10.1 and 10.3 Enquiry point Once, then changes G/TBT/ENQ/38/Rev.1, 8 July 2011 
G/TBT/ENQ/38, 30 May 2011 
Article 10.7   G/TBT/10.7/N/121, 7 February 2013 
Paragraph J of the Code of Good 
Practice for the Prep aration, Adoption 
and Application of Standards Work programme of bodies that 
have accepted the Code Semi-annual ISO/IEC, WTO TBT Standards Code Directory 
Agreement on Implementation of Article VI  of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.4 Anti-dumping actions Semi-annual G/ADP/N/230/EU, 4 September 2012 
G/ADP/N/216/EEC, 14 October 2011 G/ADP/N/209/EEC/Corr.1, 26 April 2011 
G/ADP/N/209/EEC, 28 March 2011 
Article 16.4 Anti-dumping actions Ad hoc G/ADP/N/240, 15 March 2013 
G/ADP/N/236, 20 December 2012 
G/ADP/N/234, 16 October 2012 
G/ADP/N/232, 10 August 2012 
G/ADP/N/229, 13 June 2012 
G/ADP/N/227, 4 April 2012 
G/ADP/N/225, 20 February 2012 
G/ADP/N/222, 22 December 2011 
G/ADP/N/220, 11 October 2011 
G/ADP/N/215, 21 June 2011 
G/ADP/N/214, 9 May 2011 
G/ADP/N/213, 12 April 2011 
G/ADP/N/212, 8 March 2011 
Article 18.5 New or changes to laws or 
regulations relevant to the Agreement and in the 
administration of such laws and 
regulations Ad hoc G/ADP/N/1/EU/2, 17 January 2013 
G/ADP/N/1/EU/1, 16 October 2012  
  WT/TPR/S/284 • European Union  
 
- 188 - Legal provision Description of requirement Frequency WTO document 
Agreement on Rules of Origin  
Annex II, paragraph 4 Preferential rules of origin Once, then changes 
and new rules G/RO/N/69, 29 March 2011 
Agreement on Import Licensing Procedures  
Articles 1.4(a), 5, and 8.2(b) Import licensing procedures Ad hoc G/LIC/N/1/EU/2, 11 April 2012 
G/LIC/N/1/EU/1, 11 April 2012 
Article 7.3 Questionnaire Annual G/LIC/N/3/EU/1/Add. 1, 26 September 2012 
G/LIC/N/3/EU/1, 25 September 2012 
G/LIC/N/3/EEC/14/Add.1, 29 September 2011 
G/LIC/N/3/EEC/14, 28 September 2011 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 Subsidies Every two years (new 
and full notifications) G/SCM/N/220/EEC and addenda, 10 October 2012 
Article 25.11 Countervailing duties actions Semi-annual G/SCM/N/242/EU, 31 August 2012 
G/SCM/N/235/EU, 23 March 2012 
G/SCM/N/228/EEC, 14 October 2011 G/SCM/N/219/EEC, 11 April 2011 
Article 25.11 Countervailing duties actions Ad hoc G/SCM/N/255, 15 March 2013 
G/SCM/N/247, 5 October 2012 
G/SCM/N/245, 7 August 2012 
G/SCM/N/241, 7 June 2012 
G/SCM/N/239, 5 April 2012 
G/SCM/N/237, 15 February 2012 
G/SCM/N/231, 11 October 2011 
G/SCM/N/227, 17 June 2011 
G/SCM/N/225, 27 May 2011 
G/SCM/N/224, 13 April 2011 
G/SCM/N/223, 24 March 2011 
Agreement on Safeguards  
Article 12.1(a) Initiation/termination of an 
investigation Ad hoc G/SG/N/9/EEC/2, 31 January 2011 
Article 12.6 Legislation Ad hoc Last notification in 2010 
General Agreement on Trade in Services  
Article III:3 New or changes to laws or 
regulations that significantly affect 
trade in services Annual S/C/N/684-688, 13 March 2013 
Articles III:4 and IV:2 Contact and enquiry points Once, then changes Last notification in 2009 
Article V:7(a) Economic integration agreements Ad hoc S/C/N/681/Rev.1, 21 March 2013 
S/C/N/681, 27 February 2013 
S/C/N/680, 27 February 2013 
S/C/N/564, 8 July 2011  
  WT/TPR/S/284 • European Union  
 
- 189 - Legal provision Description of requirement Frequency WTO document 
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 63.2 Laws and regulations Once, then changes Last notification in 2010 
Article 69 Contact points Once, then changes IP/N/3/Rev.11/Add.6, 26 January 2011 
TRIPS Council meeting of 
22-25 July 1996 Contact points for technical 
cooperation Once, then changes IP/N/7/Rev.3/Add.2, 26 January 2011 
Agreement on Government Procurement  
WTO document GPA/1, Annex 3 National threshold Biennial GPA/W/314/Add.6, 23 February 2012 
Article XIX:5 Procurement statistics Annual Last notification in 2010 
Other  
GATT document L/4903 (Decision of 
28 November 1979) MFN derogation in favour of 
developing countries Ad hoc WT/COMTD/N/41, 21 January 2013 
WT/COMTD/N/4/Add.5, 12 April 2011 
WTO document G/L/59 (Decision on 
Notification Procedures for 
Quantitative Restrictions) Quantitative restrictions Biennial G/L/59/Rev.1, 3 July 2012 
Source:  WTO Secretariat. 
 
  
  WT/TPR/S/284 • European Union  
 
- 190 - Table A2. 3 Status of dispute-related WTO matte rs involving the EU, January 2011–February 2013 
Subject of dispute Raised by/against 
(WTO document) Request for 
consultations Panel established/ 
panel report circulated AB report 
circulateda Other developments 
As respondent       
Certain measures affecting the 
renewable energy generation sector China (WT/DS452) 05.11.2012 No   
Certain measures concerning the 
importation of biodiesels Argentina 
(WT/DS443) 17.08.2012 No   
Anti-dumping measures on imports of 
certain fatty alcohols from Indonesia  Indonesia 
(WT/DS442) 30.07.2012 No   
Seizure of generic drugs in transit Brazil (WT/DS409) 12.05.2010 No n.a. In consultation 
Seizure of generic drugs in transit India (WT/DS408) 11.05.2010 No n.a. In consultation 
Anti-dumping measures on certain 
footwear China (WT/DS405) 04.02.2010 18.05.2010/ 
28.10.2011 No Implementation notified by 
respondent on 17.12.2012 
Measures prohibiting the importation 
and marketing of seal products Norway (WT/DS401) 05.11.2009 21.04.2011 n.a. Panel composed on 
04.10.2012 
Measures prohibiting the importation and marketing of seal products Canada (WT/DS400) 02.11.2009 25.03.2011 n.a. Panel composed on 
04.10.2012 
Definitive anti-dumping measures on 
certain iron or steel fasteners China (WT/DS397) 31.07.2009 23.10.2009/ 
03.12.2010 15.07.2011 Implementation notified by 
respondent on 23.10.2012 
Certain measures affecting poultry meat 
and poultry meat products United States 
(WT/DS389) 16.01.2009 19.11.2009 n.a. None 
Expiry reviews of anti-dumping and 
countervailing duties imposed on 
imports of PET India (WT/DS385) 04.12.2008 No n.a. None 
Tariff treatment of certain information 
technology products Chinese Taipei 
(WT/DS377) 12.06.2008 23.09.2008/ 
16.08.2010 No Implementation notified by 
respondent on 20.07.2011 
Tariff treatment of certain information 
technology products Japan (WT/DS376) 28.05.2008 23.09.2008/ 
16.08.2010 No Implementation notified by 
respondent on 20.07.2011 
Tariff treatment of certain information technology products United States 
(WT/DS375) 28.05.2008 23.09.2008/ 
16.08.2010 No Implementation notified by 
respondent on 20.07.2011 
Certain measures prohibiting the 
importation and marketing of seal 
products Canada (WT/DS369) 25.09.2007 25.03.2011  Panel established, but not 
yet composed on 25.03.2011 
Regime for the importation of bananas Panama 
(WT/DS364) 22.06.2007 No  Settled or terminated 
(withdrawn, mutually agreed solution) on 08.11.2012 
Regime for the importation of bananas Columbia 
(WT/DS361) 21.03.2007 No  Settled or terminated 
(withdrawn, mutually agreed 
solution) on 08.11.2012  
  WT/TPR/S/284 • European Union  
 
- 191 - Subject of dispute Raised by/against 
(WTO document) Request for 
consultations Panel established/ 
panel report circulated AB report 
circulateda Other developments 
Measures affecting the tariff quota for 
fresh or chilled garlic Argentina 
(WT/DS349) 06.09.2006   In consultations on 
06.09.2006 
Definitive safeguard measure on salmon Norway (WT/DS328) 01.03.2005   In consultations on 
01.03.2005 
Measures affecting trade in large civil aircraft United States 
(WT/DS316) 06.10.2004 20.07.2005/ 
30.06.2010 18.05.2011 Compliance proceeding 
on-going on 13.04.2012 
Aid for commercial vessels Korea, The Republic 
of (WT/DS307) 13.02.2004   In consultations on 
13.02.2004 
Measures affecting imports of wine Argentina 
(WT/DS263) 04.09.2002   In consultations on 
04.09.2002 
Provisional safeguard measures on 
imports of certain steel products United States 
(WT/DS260) 30.05.2002 16.09.2002  Panel established, but not 
yet composed on 16.09.2002 
Generalized System of Preferences Thailand 
(WT/DS242) 07.12.2001   In consultations on 
07.12.2001 
Tariff-rate quota on corn gluten feed 
from the United States Unites States 
(WT/DS223) 25.01.2001   In consultations on 
25.01.2001 
Measures affecting soluble coffee Brazil (WT/DS209) 12.10.2000   In consultations on 
12.10.2000 
As complainant       
Measures affecting the importation of goods Argentina 
(WT/DS438) 25.05.2012 28.01.2013 n.a.  
Measures related to the exportation of 
rare earths, tungsten and molybdenum China (WT/DS432) 13.03.2012 23.07.2012 n.a. Panel report under appeal 
from Canada (05.02.2013) 
and the EU (11.02.2013) 
Measures relating to the feed-in tariff 
program Canada (WT/DS426) 11.08.2011 20.01.2012/19.12.2012 n.a. Panel report under appeal on 
05.02.2013 
Definitive anti-dumping duties on X-ray 
security inspection equipment from the 
European Union China (WT/DS425) 25.07.2011 20.01.2012/26.02.2013   
Anti-Dumping measures on imports of stainless steel sheet and strip in coils from Italy United States 
(WT/DS424) 01.04.2011 n.a.   
Provisional anti-dumping duties on 
certain iron and steel fasteners China (WT/DS407) 07.05.2010 No n.a. In consultation 
Taxes on distilled spirits Philippines 
(WT/DS396) 29.07.2009 19.01.2010 21.12.2011 Implementation notified by 
respondent on 28.01.2013 
Measures related to the exportation of 
various raw materials China (WT/DS395) 23.06.2009 21.12.2009 30.01.2012 Implementation notified by 
respondent on 28.01.2013  
  WT/TPR/S/284 • European Union  
 
- 192 - Subject of dispute Raised by/against 
(WTO document) Request for 
consultations Panel established/ 
panel report circulated AB report 
circulateda Other developments 
Certain taxes and other measures on 
imported wines and spirits India (WT/DS380) 22.09.2008 No n.a. None 
Customs valuation of certain products 
from the European Communities Thailand 
(WT/DS370) 25.01.2008 No n.a.  
Measures affecting trade in large civil 
aircraft — second complaint United States 
(WT/DS353) 27.06.2005 17.02.2006/31.03.2011 12.03.2012 Compliance proceedings 
ongoing on 23.10.2012 
Countervailing duties on olive oil, wheat 
gluten and peaches Argentina 
(WT/DS330) 29.04.2005   In consultations 
Section 776 of the Tariff Act of 1930 United States 
(WT/DS319) 05.11.2004   In consultations on 
05.11.2004 
Measures affecting trade in large civil 
aircraft United States 
(WT/DS317) 06.10.2004 20.07.2005  Panel composed on 
20.07.2005 
Anti-Dumping measures on imports of 
certain products from the European Communities India (WT/DS304) 08.12.2003   In consultations on 
08.12.2003 
Laws, regulations and methodology for 
calculating dumping margins (zeroing) United States 
(WT/DS294) 12.06.2003 19.03.2004/ 
31.10.2005. Then Article 
21.5 circulated on 
17.12.2008 18.04.2006. 
then 
Article 21.5 
circulated on 
14.05.2009 Report(s) adopted, with 
recommendation to bring 
measure(s) into conformity 
on 02.07.2012 
n.a. Not applicable. 
a AB refers to Appellate Body. Source: WTO Secretariat. 
 
 WT/TPR/S/284 • European Union 
 
- 193 - 
 
  Table A3. 1 Products to which an entry price applies  
HS code Product description 
07020000 Tomatoes, fresh or chilled 
07070005 Cucumbers 
07099100 Globe artichokes 
07099310 Courgettes 
08051020  Sweet oranges, fresh 
08052010 Clementines 
08052030 Monreales and satsumas 
08052050 Mandarins and wilkings 
08052070 Tangerines 
08052090 Mandarins: other than 0805.20.10, 0805.20.30, 0825.20.50, and 0805.20.70 
08055010 Lemons (Citrus limon, Citrus limonum) 
08061010 Table grapes, fresh 
08081080 Apples: other 
08083090 Pears: other 
08091000 Apricots 
08092100 Cherries: sour cherries (Prunus cerasus) 
08092900 Cherries: other than sour cherries (Prunus cerasus) 
08093010 Peaches: nectarines 
08093090 Peaches: other than nectarines 
08094005 Plums 
20096110 Grape juice (including grape must): of a value exceeding €18 per 100 kg net weight 
20096919 Grape juice (including grape must): of a brix value exceeding 67 
20096951 Grape juice (including grape must): of a brix value exceeding 30 but not exceeding 
67, concentrated 
20096959 Grape juice (including grape must): of a br ix value exceeding 30 but not exceeding 
67, other than 20096951 
22043092 Wine of fresh grapes; other grape must, concentrated 
22043094 Wine of fresh grapes; other grape must, other than 22043092 
22043096 Wine of fresh grapes; other grape must, concentrated 
22043098 Wine of fresh grapes; other grape must, other than 22043098 
Source: Official Journal of the European Union , Commission regulation (EU) No. 927/2012, 9 October 2012. 
  
  WT/TPR/S/284 • European Union  
 
- 194 - Table A3. 2 Tariffs under preferential agreements, 2012 
 Simple average tariff rate (%) Duty-free rates as a percentage of total tariff lines in 
each category (%) 
Overall WTO agri. WTO non-agr. Overall WTO agri. WTO non-agr. 
MFN 6.5 14.8 4.4 24.6 18.4 26.3 
Albania 0.3 1.2 0.1 97.1 91.1 98.8 
Algeria 2.6 12.5 0.0a 84.2 28.7 99.9 
Andorra 0.1 0.3 0.0 98.5 93.3 100.0 
Bosnia and Herzegovina 0.4 1.2 0.1 97.2 91.5 98.8 
CARIFORUM 0.0a 0.1 0.0a 99.0 96.5 99.8 
Ceuta-Melillab 2.6 12.7 0.0a 84.6 30.5 99.9 
Chile 2.0 9.7 0.1 87.0 48.9 97.8 
Croatia 0.3 1.2 0.1 97.2 91.4 98.8 
EEA 3.1 13.9 0.3 78.5 23.1 94.1 
Egypt 0.2 0.9 0.0a 98.8 94.9 99.9 
EPA 0.0a 0.1 0.0a 99.0 96.5 99.8 
Faroe Islands 3.4 14.3 0.6 79.3 21.1 95.7 
FYROM 0.3 1.2 0.0a 97.6 91.4 99.4 
Iceland 4.9 7.6 4.2 33.8 56.6 27.4 
Israel 0.5 2.2 0.1 95.5 81.1 99.6 
Jordan 0.7 0.3 0.8 94.2 95.6 93.9 
Korea, Rep. of 0.9 1.5 0.7 92.7 91.9 92.9 
Kosovo 0.8 1.6 0.6 93.3 86.3 95.3 
Lebanon 0.3 1.3  0.0  97.3 88.1 100.0 
Liechtenstein 5.8 11.6 4.3 28.7 35.7 26.7 
Mexico 1.8 8.7 0.0a 90.3 56.4 99.9 
Moldova 0.9 4.5 0.0 94.9 76.7 100.0 
Montenegro 0.4 1.2 0.1 97.2 91.5 98.8 
Morocco 2.5 12.1 0.0a 84.8 31.8 99.8 
Norway 5.9 12.3 4.3 27.7 32.5 26.4 
Overseas countries and territories 0.1 0.6 0.0 98.5 93.2 100.0 
Palestinian Authority  0.0a 0.0a  0.0  99.7 98.6 100.0 
Papua New Guinea 0.0a 0.2 0.0a 99.0 96.2 99.8 
San Marino 0.0a 0.2 0.0a 98.7 94.4 99.9 
Serbia 0.4 1.2 0.1 97.3 91.4 98.9 
South Africa 1.7 4.8 0.8 89.0 72.7 93.6 
Switzerland 2.8 10.8 0.8 82.0 38.9 94.2 
Syria 3.5 13.8 0.8 78.3 23.5 93.8 
Tunisia 2.6 12.4 0.1 84.1 29.0 99.7 
Turkeyc 1.7 8.5    0.0a 90.0 55.4 99.8  
  WT/TPR/S/284 • European Union  
 
- 195 -  Simple average tariff rate (%) Duty-free rates as a percentage of total tariff lines in 
each category (%) 
Overall WTO agri. WTO non-agr. Overall WTO agri. WTO non-agr. 
Standard GSP  4.2 12.9 2.0 56.5 24.2 65.6 
Brazild 4.6 14.0 2.1 55.5 23.6 64.6 
Chinad 5.8 13.0 4.0 26.4 22.7 27.4 
Indiad 4.3 12.9 2.1 56.5 24.2 65.6 
Indonesiad 4.3 13.1 2.0 56.3 23.3 65.6 
Malaysiad 4.3 13.1 2.0 56.3 23.3 65.6 
Thailandd 4.2 12.9 2.0 56.5 24.2 65.6 
Viet Namd 4.3 12.9 2.0 56.1 24.2 65.2 
GSP + 1.9 9.3 0.1 88.7 53.4 98.7 
EBA 0.0a 0.0 0.0a 99.8 100.0 99.8 
a Figures corresponding to lower than 0.05%. 
b Preference suspension is taken into account.  
c Turkey Customs Union and bilateral concession are taken into account. d Sector graduations from Standard GSP are taken into account. 
Note: All tariff calculations exclude in-quota lines. If no prefer ential rate is applied, the co rresponding MFN rate is used fo r the calculations. The 2012 tariff is based on HS12 
nomenclature consisting of 9,383 tariff lines (at 8-digit tariff line level). Ad valorem  equivalents (AVEs) were estimated based on  2011 import data at the 8-digit tariff 
from Eurostat database.  
 In case of unavailability, the ad valorem  part is used for compo und and alternate rates. 
Source: WTO Secretariat calculations, based on IDB database and Eurostat database. 
   
  WT/TPR/S/284 • European Union  
 
- 196 - Table A3. 3 Contingency measures, January 2007-January 2013a 
Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
Anti-dumping     
Measures in force (within 
five-year period)     
Korea 20-Apr-06 19-Jan-07  Silicon 
United States 13-Jul-06 11-Oct-07  Peroxosulphates 
China 17-Aug-06 15-Nov-07  Dicyandiamide 
China 30-Nov-06 28-Feb-08  Ferro-silicon 
Egypt 30-Nov-06 28-Feb-08  Ferro-silicon 
F.Y.R. Macedonia 30-Nov-06 28-Feb-08  Ferro-silicon 
Kazakhstan 30-Nov-06 28-Feb-08  Ferro-silicon 
Russian Federation 30-Nov-06 28-Feb-08  Ferro-silicon 
South Africa 21-Dec-06 13-Mar-08  Manganese dioxides 
China 20-Dec-06 18-Mar-08  Coke of coal in pieces with  a diameter of more than 
80 mm 
China 05-Sep-07 02-Dec-08  Monosodium glutamate 
China 04-Sep-07 03-Dec-08  Citric acid 
Belarus 26-Sep-07 19-Dec-08  Welded tubes and pipes, of iron or non-alloy steel 
China 26-Sep-07 19-Dec-08  Welded tubes and pipes, of iron or non-alloy steel 
Russian Federation 26-Sep-07 19-Dec-08  Welded tubes and pipes, of iron or non-alloy steel 
China 20-Oct-07 30-Dec-08  Citrus fruits 
China 09-Nov-07 31-Jan-09  Fasteners, iron or steel 
China 16-Feb-08 13-May-09  PSC wires and strands 
China 16-Feb-08 14-May-09  Candles, tapers and the like 
Thailand 20-Sep-08 16-Jun-09  Hand pallet trucks and their essential parts 
China 08-May-08 05-Aug-09  Wire Rod 
United States 13-Jun-08 10-Jul-09  Biodiesel 
China 09-Jul-08 06-Oct-09  Seamless pipes and tubes of iron and steel 
Brazil 12-Jul-08 06-Oct-09  Aluminium Foil 
Armenia 12-Jul-08 06-Oct-09  Aluminium Foil 
China 12-Jul-08 06-Oct-09  Aluminium Foil 
Korea  11-May-10  Steel Ropes and cables 
China 18-Mar-09 16-Jun-10  Cargo Scanning Systems 
China 08-Apr-09 16-Jun-10  Molybdenum Wires 
China 11-Aug-09 28-Oct-10  Sodium gluconate 
China 13-Aug-09 28-Oct-10  Aluminium road wheels 
China 08-Sep-09 01-Dec-10  Polyester high tenacity filament yarn 
China 02-Oct-09 22-Dec-10  Ironing boards 
China 17-Dec-09 15-Mar-11  Continuous filament glass fibre products 
Canada 12-Aug-10 11-May-11  Biodiesel (ext.) 
Bosnia and Herzegovina 17-Feb-10 14-May-11  Zeolite A powder 
China 17-Feb-10 13-May-11  Melamine  
  WT/TPR/S/284 • European Union  
 
- 197 - Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
China 18-Feb-10 14-May-11  Coated fine paper 
China 20-May-10 09-Aug-11  Open mesh fabrics of glass fibre 
Thailand 20-May-10 09-Aug-11  Ring binder mechanisms 
China 19-Jun-10 15-Sep-11  Ceramic tiles 
India 13-Aug-10 11-Nov-11  Fatty alcohols and their blends 
Indonesia 13-Aug-10 11-Nov-11  Fatty alcohols and their blends 
Malaysia 13-Aug-10 11-Nov-11  Fatty alcohols and their blends 
China 30-Sep-10 20-Dec-11  Seamless pipes and tubes of stainless steel 
Malaysia 28-Oct-10 26-Jul-11  Fasteners, iron or steel 
China 18-May-11 12-Jan-12  Molybdenum wires 
Malaysia 18-May-11 12-Jan-12  Molybdenum wires 
China 26-Jan-11 18-Apr-12  Oxalic acid 
India 26-Jan-11 18-Apr-12  Oxalic acid 
Malaysia  24-Jul-12  Open mesh fabrics of glass fibres  
China 12-Aug-11 09-Nov-12  Aluminium radiators  
Russian Federation 01-Nov-11 29-Jan-13  Tube and pipe fitting, of iron or steel 
Turkey  01-Nov-11 29-Jan-13  Tube and pipe fitting, of iron or steel 
Measures in force through 
extension (after five-year 
period)      
China  28-Jul-90  Silicon metal 
China  27-Sep-90  Tungsten carbide and fused tungsten carbide 
China  09-Sep-93  Bicycles 
Russian Federation 09-Jun-94 23-Aug-95  Ammonium nitrate  
China  03-Apr-96  Tube and piping fitting, of iron or steel 
Thailand  03-Apr-96  Tube and piping fitting, of iron or steel 
China  05-Jun-96  Powered activated carbon 
China  18-Jan-97  Bicycle parts 
China  24-Jan-97  Ring binder mechanisms 
India 01-Jul-97 26-Jun-98  Synthetic fibre ropes 
China 20-May-98 17-Aug-99  Steel ropes and cables  
Ukraine 20-May-98 17-Aug-99  Steel ropes and cables  
Chinese Taipei  14-Apr-00  Tube and pipe fitting, of iron or steel 
Russian Federation 05-May-00 04-Aug-01  Steel ropes and cables 
China 06-Jul-01 25-Jul-02  Sulphanilic acid 
India 06-Jul-01 25-Jul-02  Sulphanilic acid 
Korea 01-Jun-01 24-Aug-02  Tube and pipe fitting, of iron or steel  
Malaysia 01-Jun-01 24-Aug-02  Tube and pipe fitting, of iron or steel  
Thailand 29-Jun-01 27-Sep-02  Welded tubes and pipes of iron or non – alloy steel  
Ukraine  29-Jun-01 27-Sep-02  Welded tubes and pipes of iron or non – alloy steel  
Indonesia  06-Jun-03  Tube and pipe fitting, of iron or steel 
China 19-Dec-02 11-Mar-04  Sodium cyclamate  
Indonesia  19-Dec-02 11-Mar-04  Sodium cyclamate   
  WT/TPR/S/284 • European Union  
 
- 198 - Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
Moldova   24-Apr-04  Steel ropes and cables  
Vietnam 01-Oct-03 04-Dec-04  Ring binder mechanisms  
China 22-May-03 19-Aug-04  PET 
India 21-Aug-03 18-Sep-04  Graphite electrode system 
Morocco  30-Oct-04  Steel ropes and cables 
China 19-Aug-03 12-Nov-04  Okoumé plywood 
Indonesia  01-Dec-04  Tube and pipe fitting, of iron or steel 
Sri Lanka  01-Dec-04  Tube and pipe fitting, of iron or steel 
China 30-Apr-04 21-Jul-05  Barium carbonate 
China 29-Apr-04 21-Jul-05  Hand pallet trucks and their essential parts  
China 30-Apr-04 29-Jul-05  Castings 
China 10-Jul-04 07-Oct-05  Trichloroisocyan uric acid (TCCA) 
China 24-Aug-04 19-Nov-05  Stainless steel fasteners and parts thereof 
Chinese Taipei 24-Aug-04 19-Nov-05  Stainless steel fasteners and parts thereof 
Laos 13-Apr-05 12-Jan-06  Ring binder mechanisms  
China 30-Oct-04 27-Jan-06  Tartaric acid 
Philippines 05-Aug-05 29-Apr-06  Tube and pipe fitting, of iron or steel 
China 28-Apr-05 27-Jul-06  Level arch mechanisms  
China 25-Jun-05 14-Sep-06  Chamois leather 
China 30-Jun-05 29-Sep-06  Plastic sacks and bags 
Measures 
terminated/withdrawn 
during the review period      
Thailand 22-Dec-09  20-Jan-11b Purified Terephthalic Acid (PTA) 
China 30-Jun-10  03-Mar-11b Wireless wide area networking modems 
India 01-Apr-10  10-Mar-11b Stainless steel bars 
China 07-Jul-05 06-Oct-06 16-Mar-11d Footwear with uppers of leather 
Macao, China  01-May-08 16-Mar-11d Footwear with uppers of leather 
Viet Nam 07-Jul-05 06-Oct-06 16-Mar-11d Footwear with uppers of leather 
Singapore 12-Aug-10  11-May-11b Biodiesel 
China 23-Oct-91 11-Dec-93 17-May-11d Magnesia 
China 19-Dec-03 17-Mar-05 09-Jun-11d Polyester staple fibres 
China 13-Jul-04 12-Oct-05 25-Jun-11d Magnesia bricks 
China 20-May-94 04-Apr-96 08-Jul-11d Coumarin 
Belarus 31-Oct-90 24-Oct-92 12-Jul-11d Potassium chloride 
Russian Federation 31-Oct-90 24-Oct-92 12-Jul-11d Potassium chloride 
China 23-Jul-10  10-Aug-11b Tris phosphate (TCPP) 
Korea 02-Jun-05 31-Aug-06 31-Aug-11d Refrigerators 
China 30-Apr-04 29-Jul-05 02-Sep-11d Castings 
China 17-Dec-10  30-Sep-11b Graphite electrode systems 
Oman 16-Feb-11  14-Dec-11b Polyethylene tere-phthalate (PET) 
Saudi Arabia 16-Feb-11  14-Dec-11b Polyethylene tere-phthalate (PET) 
Algeria 26-Jun-99 24-Mar-00 21-Dec-11d Urea and ammonium nitrate solutions  
  WT/TPR/S/284 • European Union  
 
- 199 - Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
Belarus 26-Jun-99 22-Sep-00 21-Dec-11d Urea and ammonium nitrate solutions 
Russian Federation 26-Jun-99 22-Sep-00 21-Dec-11d Urea and ammonium nitrate solutions 
Ukraine 26-Jun-99 22-Sep-00 21-Dec-11d Urea and ammonium nitrate solutions 
United States 04-Dec-10  12-Jan-12b Vinyl acetate 
Switzerland 18-May-11  12-Jan-12b Molybdenum wires 
Russian Federation 30-Nov-06 28-Feb-08 25-Jan-12d Ferro-silicon 
South Africa 20-May-98 17-Aug-99 09-Feb-12d Steel ropes and cables 
Korea 06-Nov-99 30-Nov-00 28-Feb-12d PET 
India 13-May-11  23-Mar-12b Stainless steel fasteners  
China 17-Feb-11  05-Apr-12b Sodium cyclamate 
China 19-Jan-06 17-Apr-07 17-Apr-12d Strawberries 
Belarus 28-Jun-11  08-May-12b Seamless pipes and tubes of iron or steel  
China 28-Jul-11  22-May-12b Woven and/or stitched glass fibre fabrics 
China 29-Jul-11  05-Jun-12b Tartaric acid 
China 07-Apr-06 21-Jun-07 21-Jun-12d Saddles 
China 31-Jul-93 31-Oct-03 26-Jun-12d Furfuraldehyde 
India 06-Nov-99 30-Nov-00 28-Jun-12d PET 
China 19-Apr-11  28-Jun-12b Soy protein products 
India  23-Aug-01 07-Nov-12d PET film 
Brazil  18-Nov-04 07-Nov-12d PET film 
Israel  18-Nov-04 07-Nov-12d PET film 
China  04-May-95 13-Dec-12d Lighters 
Chinese Taipei  29-Jan-99 13-Dec-12d Lighters  
Vietnam 26-Jun-12  13-Dec-12b Lighters  
Measures expired during 
the review period      
Croatia 31-Mar-05 29-Jun-06 30-Jun-11c Seamless pipes and tubes, of iron or steel  
China  25-Jun-05 14-Sep-06 15-Sep-11c Chamois leather  
Thailand  25-Jun-05 14-Sep-06 15-Sep-11c Chamois leather  
Thailand 30-Jun-05 29-Sep-06 30-Sep-11c Plastic sacks and bags 
United States  02-Feb-94 23-Jan-12e Ethanolamine  
Chinese Taipei 06-Nov-99 30-Nov-00 28-Feb-12e Polyethylene terephthalate (PET) 
India 06-Nov-99 30-Nov-00 28-Feb-12e Polyethylene terephthalate (PET) 
Indonesia 06-Nov-99 30-Nov-00 28-Feb-12e Polyethylene terephthalate (PET) 
Korea 06-Nov-99 30-Nov-00 28-Feb-12e Polyethylene terephthalate (PET) 
Malaysia 06-Nov-99 30-Nov-00 28-Feb-12e Polyethylene terephthalate (PET) 
Thailand 06-Nov-99 30-Nov-00 28-Feb-12e Polyethylene terephthalate (PET) 
China 17-Dec-05 13-Mar-07 14-Mar-12c Tungsten electrodes  
Thailand 17-Dec-05 13-Mar-07 14-Mar-12c Tungsten electrodes  
China 19-Jan-06 17-Apr-07 18-Apr-12c Strawberries (frozen) 
Thailand 19-Jan-06 17-Apr-07 18-Apr-12c Strawberries (frozen) 
China  04-Feb-06 26-Apr-07 27-Apr-12c Ironing boards 
Thailand 04-Feb-06 26-Apr-07 27-Apr-12c Ironing boards  
  WT/TPR/S/284 • European Union  
 
- 200 - Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
Ukraine  04-Feb-06 26-Apr-07 27-Apr-12c Ironing boards 
Ukraine 29-Oct-99 25-Jan-01 17-Jun-12e Ammonium nitrate  
Thailand 28-Mar-06 20-Jun-07 21-Jun-12b Sweet corn 
China 07-Apr-06 21-Jun-07 22-Jun-12c Saddles 
Ukraine 31-Mar-05 29-Jun-06 04-Jul-12c Seamless pipes and tubes, of iron or steel  
Russian Federation 31-Mar-05 29-Jun-06 04-Jul-12c Seamless pipes and tubes, of iron or steel  
China 13-Jul-06 11-Oct-07 12-Oct-12c Peroxosulphates (persulphates)  
Chinese Taipei 13-Jul-06 11-Oct-07 12-Oct-12c Peroxosulphates (persulphates)  
Russian Federation 05-May-00 04-Aug-01 31-Oct-12e Steel ropes and cables 
India 27-May-00 23-Aug-01 07-Nov-12e PET film  
Thailand 27-May-00 23-Aug-01 07-Nov-12e PET film  
China 17-Aug-06 15-Nov-07 16-Nov-12c Dicyandiamide  
China 06-Sep-06 05-Dec-07 06-Dec-12c Silico – manganese  
Kazakhstan 06-Sep-06 05-Dec-07 06-Dec-12c Silico – manganese  
India 11-Nov-06 26-Jan-08 27-Jan-13c Dihydromyrcenol  
New investigation initiated 
during the review period      
China 26-Jan-11   Oxalic acid 
Oman 16-Feb-11   Polyethylene tere-phthalate (PET) 
China 12-Aug-11   Aluminium radiators 
Russian Federation 01-Nov-11   Tube and pipe fittings of iron or steel 
Turkey 01-Nov-11   Tube and pipe fittings of iron or steel 
United States 25-Nov-11   Bioethanol 
Kazakhstan 17-Dec-11   White phosphorus (elemental or yellow phosphorus) 
China 20-Dec-11   Aluminium foil in rolls 
China 21-Dec-11   Organic coated steel 
China 16-Feb-12   Ceramic tableware and kitchenware 
China 16-Feb-12   Threaded tube or pi pe cast fittings of malleable cast 
iron 
Indonesia 16-Feb-12   Threaded tube or pipe cast fittings of malleable cast 
iron 
Thailand 16-Feb-12   Threaded tube or pipe cast fittings of malleable cast 
iron 
F.Y.R. Macedonia 31-Mar-12   Welded tubes, pipes and hollow profile of square or 
rectangular cross-section 
Turkey 31-Mar-12   Welded tubes, pipes and hollow profile of square or 
rectangular cross-section 
Ukraine 31-Mar-12   Welded tubes, pipes and hollow profile of square or 
rectangular cross-section 
China 24-Jul-12   Bicycles  
India 10-Aug-12   Stainless steel wire 
Argentina 29–Aug–12   Biodisel  
Indonesia 29–Aug–12   Biodisel   
  WT/TPR/S/284 • European Union  
 
- 201 - Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
China 06-Sep-12   Solar panels 
Malaysia  26-Sep-12   Bicycles 
Sri Lanka  26-Sep-12   Bicycles 
Tunisia  26-Sep-12   Bicycles 
China 23-Oct-12   Aluminium foil 
China 10-Nov-12   Stainless steel tube and pipe butt – welding fittings  
Chinese Taipei 10-Nov-12   Stainless steel tube and pipe butt – welding fittings  
China 20-Dec-12   Molybdenum wire 
Chinese Taipei 16-Jan-13   Open mesh fabrics of glass fibres  
Thailand 16-Jan-13   Open mesh fabrics of glass fibres  
Countervailing      
Measures in force (within 
five-year period)      
USA 13-Jun-08 10-Jul-09  Biodiesel 
Iran 03-Sep-09 29-Sep-10  PET (polyethylene terephthalate) 
Pakistan 03-Sep-09 29-Sep-10  PET (polyethylene terephthalate) 
United Arab Emirates 03-Sep-09 29-Sep-10  PET (polyethylene terephthalate) 
India 01-Apr-10 28-Apr-11  Stainless steel bars and rods 
China 17-Apr-10 14-May-11  Coated fine paper 
Canada 12-Aug-10 11-May-11  Biodiesel 
Measures in force through 
extension (after five-year 
period)      
India  21-Aug-03 18-Sep-04  Graphite electrode systems  
India 06-Jul-01 25-Jul-02  Sulphalinic Acid 
New investigation initiated 
during the review period      
China 22-Feb-12   Organic coated steel products 
China 27-Apr-12   Bicycles 
India 10-Aug-12   Stainless steel wire 
China  08-Nov-12   Solar panels 
Argentina 10-Nov-12   Biodiesel 
Indonesia 10-Nov-12   Biodiesel  
Measures 
withdrawn/terminated 
during the review period      
Thailand 22-Dec-09  20-Jan-11a Purified terephthalic acid 
China 16-Sep-10  03-Mar-11a Wireless wide area networking modems 
Brazil 19-Feb-04 18-Nov-04 03-Mar-11c PET film (polyethylene terephthalate) 
Israel 19-Feb-04 18-Nov-04 03-Mar-11c PET film (polyethylene terephthalate) 
India 21-Nov-98 10-Dec-99 03-Mar-11c PET film (polyethylene terephthalate) 
Singapore 12-Aug-10  11-May-11a Biodiesel  
Indonesia  10-Nov-06 08-Jul-11c Coumarin  
  WT/TPR/S/284 • European Union  
 
- 202 - Partner affected Initiation of 
investigation Imposition of 
measures Withdrawn Product description 
Malaysia  10-Nov-06 08-Jul-11c Coumarin 
India  09-May-02 08-Jul-11c Coumarin 
Thailand  31-Dec-04 08-Jul-11c Coumarin 
India 12-Sep-97 09-Oct-98 11-Aug-11c Antibiotics (broad spectrum) 
China  13-Apr-94 25-Aug-11c Silicon carbide 
Oman 16-Feb-11  14-Dec-11a Polyethylene terephthalate (PET) 
Saudi Arabia 16-Feb-11  14-Dec-11a Polyethylene terephthalate (PET) 
India 13-May-11  24-May-12a Stainless steel fasteners 
United States 25-Nov-11  21-Dec-12a Bioethanol 
Measures expired during 
the review period      
India 06-Nov-99 30-Nov-00 28-Feb-12d Polyethylene terephthalate (PET)  
a The measures in this table are list ed by trading partners affected.  
b Investigation terminated. c Measures automatic expired. d Measures terminated. e Measures extended then expired. 
Source: WTO Secretariat, and European  Commission online information. 
 WT/TPR/S/284 • European Union 
 
- 203 - 
 
  Table A3. 4 Anti-dumping measures, by trading partner, 2008-12 
 2008 2009 2010 2011 2012 
Trading partner/region      
Algeria 1 1 1 0 0 
Armenia 0 1 1 1 1 
Australia 1 0 0 0 0 
Belarus 3 3 3 1 1 
Bosnia and Herzergovina 0 0 0 1 1 
Brazil 1 2 2 2 1 
Canada 0 0 0 1 1 
China 48 54 54 53 48 
Chinese Taipei 6 6 5 5 3 
Croatia 1 1 1 1 0 
Egypt 1 1 1 1 1 
Faroe Islands 1 0 0 0 0 
India 8 8 7 7 7 
Indonesia 5 5 4 4 4 
Israel 1 1 1 1 0 
Kazakhstan 2 2 2 2 1 
Korea 5 5 5 4 3 
Laos 1 1 1 1 1 
Macao, China 1 1 1 0 0 
Macedonia 1 1 1 1 0 
Malaysia 4 4 3 3 6 
Moldova 1 1 1 1 1 
Morocco 1 1 1 1 1 
Pakistan 1 0 0 0 0 
Philippines 1 1 1 1 1 
Russia 8 8 8 6 5 
Saudi Arabia 1 1 0 0 0 
South Africa 2 2 2 2 1 
Sri Lanka 1 1 1 1 1 
Thailand 7 8 7 7 6 
Ukraine 6 6 6 5 4 
United States 4 5 3 3 2 
Viet Nam 4 4 2 1 1 
Total number of measures 128 135 125 117 102 
Source: Information provided by the European  Commission. 
  
  WT/TPR/S/284 • European Union  
 
- 204 - Table A3. 5 Summary of the main legislat ion of intellectual property rights, 2013 
Intellectual 
property right Legislative measure Notification to Council for TRIPS 
pursuant to Article 63.2 TRIPS 
Copyright and 
related rights   Directive 2001/29/EC of 22 May 2001 on the harm onization of certain aspects of copyright 
and related rights in the information society 
 Directive 2012/28/EU of 25 October 2012 on certain permitted uses of orphan works 
 Directive 2006/115/EC of 12 December 2006 on rental right and lending right and on 
certain rights related to copyright in the field of intellectual property 
 Directive 2006/116/EC of 12 December 2006 on th e term of protection of copyright and 
certain related rights, as amended by Directive 2011/77/EU of 27 September 2011 
 Council Directive 93/83/EEC of 27 September 1993 on the coordination of certain rules 
concerning copyright and rights related to copyright applicable to satellite broadcasting and cable retransmission 
 Directive 2001/84/EC of 27 September 2001 on th e resale right for the benefit of the 
author of an original work of art 
 Council Directive 2009/24/EC of 23 April 2009 on the legal protection of computer 
programs 
 Directive 96/9/EC of 11 March 1996 on the legal protection of databases 
 Council Decision 2000/278/EC of 16 March 2000 on the approval, on behalf of the 
European Community, of the WIPO Copyright Treaty and the WIPO Performances and 
Phonograms Treaty 
 National laws of the EU member States  IP/N/1/EU/C/1  
 IP/N/1/EU/C/2 IP/N/1/EU/C/3 
 
IP/N/1/EU/C/4  
IP/N/1/EU/C/5 
  
IP/N/1/EU/C/6 
 IP/N/1/EU/C/7  
IP/N/1/EEC/C/2 
IP/N/1/EU/C/8  
Trade marks  Directive 2008/95/EC of 22 October 2008 to appr oximate the laws of the member States 
relating to trademarks 
 Council Regulation (EC) No. 207/2009 of 26 February 2009 on the Community trademark 
 Council Regulation (EC) No. 1992/2003 of 27 October 2003 amending Regulation (EC) 
No. 40/94 on the Community trademark to give effect to the accession of the European 
Community to the Protocol relating to the Madrid Agreement concerning the international 
registration of marks adopted at Madrid on 27 June 1989 
 Commission Regulation (EC) No. 2082/2004 of 6 December 2004, amending Regulation 
(EC) No. 216/96 laying down the rules of procedure of the Boards of Appeal of the Office 
for Harmonization in the Internal Market (Trademarks and Designs) 
 Commission Regulation (EC) No. 355/2009 of 31 March 2009 amending Regulation (EC) 
No. 2869/95 on the fees payable to the Office for Harmonization in the Internal Market 
(Trademarks and Designs) and Regulation (EC) No. 2868/95 implementing Council 
Regulation (EC) No. 40/94 on the Community trademark 
 National laws of the EU member States on trademarks:  national trademark systems exist 
in parallel to the Community trademark system  IP/N/1/EU/T/1 
 
IP/N/1/EU/T/2 
IP/N/1/EEC/T/2 
 
 
 
IP/N/1/EU/T/3 
 
 
IP/N/1/EEC/T/4 
  
  WT/TPR/S/284 • European Union  
 
- 205 - Intellectual 
property right Legislative measure Notification to Council for TRIPS 
pursuant to Article 63.2 TRIPS 
Geographical 
indications  Wines: Council Regulation (EC) No. 1234/2007 of 22 October 2007 establishing a common 
organisation of agricultural markets and on specific provisions for certain agricultural 
products, as amended by Council Regulation (EC) No. 491/2009 
 Commission Regulation (EC) No. 607/2009 of 14 July 2009, laying down certain detailed 
rules regarding protected designations of orig in and geographical indications, traditional 
terms, labelling and presentation of certain wine sector products 
 Spirits: Regulation (EC) No. 110/2008 of the EP and of the Council of 15 January 2008 on 
the definition, description, presentation, labe lling and the protection of geographical 
indications of spirit drinks 
 Agricultural products and foodstuffs: Council Regulation (EU) No. 1151/2012 of 
21 November 2012 on quality schemes for ag ricultural products and foodstuffs 
 For the protection as collective trademar ks, see Regulation (EC) No. 207/2009 of 
26 February 2009 on the Community trademark 
 National laws of the EU member States, and the Appellation System of certain EU member 
States  IP/N/1/EU/G/1 and IP/N/1/EU/G/2  
 
 IP/N/1/EEC/4 and IP/N/1/EEC/G/5  
 
IP/N/1/EEC/4 and IP/N/1/EEC/G/6  
 
IP/N/1/EU/G/3  
IP/N/1/EU/T/2 
   
Industrial 
designs  Directive 98/71/EC of 13 October 1998 on the legal protection of designs 
 Council Regulation (EC) No. 6/2002 of 12 December 2001 on Community designs, as 
amended by Council Regulation (EC) No. 1891/2006 of 18 December 2006 
 Commission Regulation (EC) No 2245/2002 of 21 October 2002 implementing Council 
Regulation (EC) No. 6/2002, as amended by Commission Regulation (EC) No 876/2007 of 
24 July 2007 
 Commission Regulation (EC) No 2246/2002 of 16 December 2002 on the fees payable to 
the Office for Harmonization in the Internal Market (Trademarks and Designs) in respect of 
the registration of Community designs, as  amended by Commission Regulation (EC) 
No. 877/2007 of 24 July 2007 
 Council Decision 2006/954/EC of 18 December 2006 approving the accession of the EC to 
the Geneva Act of the Hague Agreement concerning the international registration of 
industrial designs, adopted in Geneva on 2 July 1999 
 National laws of the EU member States:  national industrial design systems exist in parallel 
with the Community design system  IP/N/1/EU/D/1 
IP/N/1/EU/D/2 
 
IP/N/1/EU/D/3 
 
 
IP/N/1/EU/D/4 
 
 
 
IP/N/1/EU/D/5  
  WT/TPR/S/284 • European Union  
 
- 206 - Intellectual 
property right Legislative measure Notification to Council for TRIPS 
pursuant to Article 63.2 TRIPS 
Patents  Regulation (EU) No. 1257/2012 of 17 December 2012 implementing enhanced cooperation 
in the area of the creation of unitary patent protection 
 Regulation (EU) No. 1260/2012 of 17 December 2012 implementing enhanced cooperation 
in the area of the creation of unitary patent protection with regard to the applicable translation arrangements  
 Directive 98/44/EC of 6 July 1998 on the legal protection of biotechnological inventions  
 Regulation (EC) No. 1901/2006 of 12 December 2006 on medicinal products for paediatric 
use and amending Regulation (EEC) No . 1768/92, Directive 2001/20/EC, Directive 
2001/83/EC and Regulation (EC) No. 726/2004 
 Regulation (EC) No. 816/2006 of 17 May 2006 on compulsory licensing of patents relating 
to the manufacture of pharmaceutical products for export to countries with public health 
problems 
 National patent laws of the EU member States and the European Patent Convention (EPC) 
exist alongside and in parallel with the European patent system  IP/N/1/EU/P/1 
 
IP/N/1/EU/P/8   
IP/N/1/EEC/P/4 
IP/N/1/EU/P/2  
 
IP/N/1/EEC/P/5  
Supplementary 
protection 
certificates  Regulation (EC) No 469/2009 of 6 May 2009 concerning the supplementary protection 
certificate for medicinal products 
 Regulation (EC) No 1610/96 of 23 July 1996 concerning the creation of a supplementary 
protection certificate for plant protection products  IP/N/1/EU/P/3 
 
IP/N/1/EU/P/4 
Plant varieties  Council Regulation (EC) No. 2100/94 of 27 July 1994, as amended by Council Regulation 
(EC) No. 15/2008 
 Commission Regulation (EC) No. 874/2009 of 17 September 2009, establishing 
implementing rules for the application of Co uncil Regulation (EC) No. 2100/94 as regards 
proceedings before the Community Plant Variety Office  
 Commission Regulation (EC) No. 1238/95 of 31 may 1995 establishing implementing rules 
for the application of Council Regulation (EC) No. 2100/94 as regards the fees payable to 
the Community Plant Variety Office, as amended by Commission Regulation (EC) 
No. 572/2008 of 19 June 2008 and Commission Implementing Regulation (EU) No. 510/2012 of 15 June 2012 
 Commission Regulation (EC) No. 1768/95 of 24 July 1995, establishing implementing rules 
on the agricultural exemption provided for in Article 14(3) of Council Regulation (EC) No. 2100/94, as amended by Commission Regulation (EC) No. 2605/98 of 3 December 1998 
 National laws of the EU member States: national systems work in parallel with the 
Community system  IP/N/1/EEC/P/3 
 IP/N/1/EU/P/5 
 
 IP/N/1/EU/P/6  
 
  
IP/N/1/EU/P/7  
Protection of 
layout designs  Council Directive 87/54/EEC of 16 December 1986 on the legal protection of topographies 
of semiconductor products  
 Council Decision 94/824/EC of 22 December 1994 on the extension of the legal protection 
of semiconductor products to persons from a Member of the WTO  IP/N/1/EEC/1/Rev.1 and 
IP/N/1/EEC/L/1 
IP/N/1/EEC/1/Rev.1 and 
IP/N/1/EEC/L/2 
Undisclosed 
information 
and clinical trial data  Directive 2001/83/EC of 6 November 2001 on th e Community code relating to medicinal 
products for human use, as amended by Directive 2004/27/EC of 31 March 2004 
 Regulation No. 726/2004 of the EP and of the Council of 31 March 2004 laying down 
Community procedures for the authorisation and supervision of medicinal products for 
human and veterinary use and establishing a European Medicines Agency 
 National laws of the EU member States  IP/N/1/EU/U/1 
 
IP/N/1/EU/U/2   
  WT/TPR/S/284 • European Union  
 
- 207 - Intellectual 
property right Legislative measure Notification to Council for TRIPS 
pursuant to Article 63.2 TRIPS 
Enforcement 
  Council Regulation (EC) No. 1383/2003 of 22 July 2003 concerning customs action against 
goods suspected of infringing certain intellect ual property rights and the measures to be 
taken against goods found to have infringed such rights 
 Commission Regulation No. 1891/2004 of 21 October 2004 laying down provisions for the 
implementation of Council Regulation (EC) No. 1383/2003 
 Directive 2004/48/EC of 29 April 2004 on the enforcement of IPRs 
 National laws of the EU member States  IP/N/1/EEC/2 and IP/N/1/EEC/E/2 
 
 
IP/N/1/EEC/2 and IP/N/1/EEC/E/3 
 
IP/N/1/EEC/2 and IP/N/1/EEC/E/4 
 
Source:  WTO Secretariat. 
  
  WT/TPR/S/284 • European Union  
 
- 208 - Table A3. 6 Term of protection of ma jor intellectual property rights, 2013 
Type of rights Term of protection Competent agency at 
the EU level 
Copyright   
 Authors' right  Life of the author plus 70 years irrespective of the date the work was lawfully 
made available to the public. In the case of joint authorship the term should be 
calculated after the death of the last surviving author. In the case of 
anonymous or pseudonymous works, 70 years after the work is lawfully made 
available to the public. If the pseudonym does not leave any doubt as to the 
identity of the author, then protection is for the life of the author plus 70 years 
irrespective of the date the work was lawfully made available to the public Copyright is protected 
without registration 
 Work published in volumes  Protection runs from the time the work was lawfully made available to the 
public 
 Works that have not been lawfully 
made available to the public 
within 70 years from their 
creation  Protection should be terminated 
 Cinematographic or audiovisual 
works  Protection expires 70 years after the death of the authora. 
 Performers  Protection expires 50 years after the date of the performance. However, if a 
fixation of the performance is lawfully published or lawfully communicated to 
the public within this period, the rights expire 70 years from the date of the 
first such publication or the first such communication to the public, whichever is 
the earlier 
 Producers of phonograms  Protection expires 50  years after the fixation is made. However, if the 
phonogram has been lawfully published wi thin this period, the rights expire 
70 years from the date of the first lawful publication. If no lawful publication 
has taken place, and the phonogram has been lawfully communicated to the 
public within this period, the rights will expire 70 years from the date of the 
first lawful communication to the public 
 Producers of a filmb  Protection expires 50 years after the fixation is made. However, if the film is 
lawfully published or lawfully communicated to the public during this period, the 
rights will expire 50 years from the date of the first such publication or the first 
such communication to the public, whichever is the earlier 
 Broadcasting organizations  Protection expires 50 years after the first transmission of a broadcast whether 
transmitted by wire or over the air, including by cable or satellite 
 Photographsc  Life of the author plus 70 years no matter when it was lawfully made available 
to the public. In the case of joint authorship, the term should be calculated 
after the death of the last author. In the case of anonymous or pseudonymous 
works, 70 years after the work is lawfully made available to the public. If the 
pseudonym does not leave any doubt as to the identity of the author then 
protection is for the life of the author plus 70 years no matter when the work 
was lawfully made available to the public  
  WT/TPR/S/284 • European Union  
 
- 209 - Type of rights Term of protection Competent agency at 
the EU level 
Patents    
Any inventions, in all field of technology, 
that are new, involv e an inventive step, 
and are susceptible of industrial 
application 20 years from the date of filing; under a supplementary protection certificate, an 
additional period of market exclusivity of up to five years may be granted for 
medicinal and plant protection products; an extension of another six months is 
available under paediatric legislation European Patent Office 
(EPO) for European 
patent and unitary 
patents 
Plant varieties    
Plant varieties which are distinct, 
uniform, stable, and new Plant varieties for 25 years, wine and tree species for 30 years. Protection may be 
extended for 5 years Community Plant Variety 
Office (CPVO)  
Trade marks    
Any signs represented graphically, 
particularly words, including personal 
names, designs, letters, numerals, the 
shape of goods or their packaging, 
provided that such signs are capable of 
distinguishing the goods or services of 
one undertaking from those of other 
undertakings 10 years from the date of filling of application, may be renewed for an indefinite 
number of 10-year periods Office for Harmonization 
in the Internal Market 
(OHIM) for Community 
trade marks 
Geographical indications    
Indications which identify a good as 
originating in the territory of a Member 
or a region or locality in that territory, 
where a given quality, reputation or 
other characteristics of the good are 
essentially attributable to its 
geographical origin For GIs protected as Community collective trademarks: 10 years from the date of 
filling of application, may be renewed for an  indefinite number of 10 year periods. For 
GIs protected as PDO/PGI, the term of protection is indefinite, unless the geographical 
indication ceases to be protected European Commission 
DG Agriculture and DG 
Trade. OHIM for 
Community collective 
trade marks 
Industrial designs    
Designs that are new and have 
individual character. A design is 
considered new if no identical design 
(i.e. one whose features differ only in 
immaterial details) has been made 
available to the public. It has individual 
character if the overall impression it 
produces on the informed user differs 
from the overall impression produced on 
such a user by any design which has 
been made available to the public Registered design: one or more periods of 5 years, up to a maximum of 25 years 
from the date of filing. Unregister ed design: 3 years after publication OHIM for Community 
designs  
  WT/TPR/S/284 • European Union  
 
- 210 - Type of rights Term of protection Competent agency at 
the EU level 
Undisclosed test or other data    
Data the origination of which involves 
considerable effort and which must be 
submitted to regulatory authorities in 
order to obtain marketing approval of 
pharmaceutical or of agricultural 
chemical products which utilize new 
chemical entities 8-11 years of data and marketing protection European Medicines 
Agency (EMA) grants 
marketing authorization 
a The principal director of a cinematographi c or audiovisual work is considered the author. The author of the screenplay and/or  the author of a dialogue are designated 
as co-authors. 
b The term "film" designates a cinematographic or audiovisual work or moving  images, whether or no t accompanied by sound. 
c Photographs are protected under Community law only if they ar e the author's own intellectual creation. Member States may prov ide protection for ot her photographs.  
Source: WTO Secretariat. 
 
  
  WT/TPR/S/284 • European Union  
 
- 211 - Table A4. 1 Main economic indicators of th e insurance sector, by member State, 2011 
(€ million, unless otherwise indicated) 
 Gross written premiums EU total insurers' 
investment portfolio Number of insurance 
companies Number of employee 
Total  Life  Non-life  Health  
Austria  16,454 6,988 9,466 1,697 82,354 72 25,794 
Belgium 29,207 18,572 10,635 1,308 234,625 147 23,911 
Bulgaria 813 119 695 0 1,056 367 .. 
Cyprus 859 385 474 97 2,164 34 1,968 
Czech Republic 5,957 2,685 3,272 123 13,491 53 14,274 
Denmark 21,881 15,941 5,940 153 286,548 186 16,871 
Estonia 283 66 217 7 1,236 19 .. 
Finland 18,145 14,535 3,610 218 121,501 63 10,646 
France 190,013 124,476 65,537 9,566 1,702,300 441 147,750 
Germany 178,079  86,798 91,282 34,667 1,403,538 582 215,500 
Greece 4,885 2,155 2,730 19 10,433 73 9,000 
Hungary 2,939 1,574 1,365 23 7,691 32 24,493 
Ireland 11,400 8,500 2,900 .. 79,421 227 13,500 
Italy 110,228 73,869 36,359 2,172 511,000 242 47,477 
Latvia 316 34 282 23 406 25 .. 
Lithuania .. .. .. .. .. .. .. 
Luxembourg 1,991 1,238 753 40 .. 95 4,021 
Malta 301 202 99 6 3,494 56 .. 
Netherlands 78,751 21,910 56,841 40,465 380,508 263 56,000 
Poland 13,869 7,729 6,140 106 31,599 63 .. 
Portugal 11,666 7,533 4,133 540 51,454 82 11,242 
Romania 1,845 410 1,435 7 .. 43 .. 
Slovakia  2,109 1,145 964 .. .. 22 6,100 
Slovenia 2,053 599 1,454 429 .. 20 6,099 
Spain 59,568 29,749 29,819 6,540 228,064 287 .. 
Sweden 29,689 22,974 6,715 728 325,948 384 20,428 
United Kingdom  206,019 143,799 62,221 4,707 1,636,171 1,314 .. 
Total 999,320 593,985 405,338 103,641 7,115,002 5,192 655,074 
.. Not available. 
Source: Insurance Europe. 
 
  
  WT/TPR/S/284 • European Union  
 
- 212 - Table A4. 2 Number of insurance companies, by  type, origin, and loca tion of activity, 2011 
 AT BE BU CY CZ DK EE FI FR DE GR HU IE IT LV LT LU MT NL PL PT RO ES SK SI SE GB Total  
Life enterprises                              
1 National enterprises 3 18 16 6 3 45 4 10 63 95 10 12 61 57 3 5 45 7 44 28 14 12 90 6 4 39 118 818 
2 Branches of third (non-EU/EEA) countries 0 0  1 0 0 0 0 0 2 1  1 0 0  0    0  0   0 1 6 
1 + 2 Total under national supervision  3 18 16 7 3 45 4 10 63 97 11 12 62 57 3 5 45 7 44 28 14 12 90 6 4 39 119 824 
3 Branches of EU/EEA countries  3 8 2   3 6 1 5  18 2  8 18 5 5  2   2 6 2 16 2  5  119 
1 + 2 + 3 Total activity in the country  6 26 18 7 6 51 5 15 63 115 13 12 70 75 8 10 47 7 44 30 20 14 106 8 4 44 119 943 
Branches in EU/EEA countries  0 1  1 0 2 3 0  9  1 27 0 0 2  19   2 1  11 1 1 10  91 
Branches in third (non-EU/EEA) countries  0 0  1 0 1 0 0      1 0  2    0  0   0  5 
Non-life enterprises                             0 
1 National enterprises 17 52 18 18 17 80 8 19 224 266 31 15 120 71 9 6 29 35 174 33 22 20 140 2 4 139 236 1805 
2 Branches of third (non-EU/EEA) countries 1 0  1 0 1 0 0 5 3 2  1 2 0  0 1 4  0  1   0 12 34 
1 + 2 Total under national supervision  18 52 18 19 17 81 8 19 229 269 33 15 121 73 9 6 29 36 178 33 22 20 141 2 4 139 248 1839 
3 Branches of EU/EEA countries  18 44 7  3 13 40 4 7  60 16 12 27 59 5 9  10 6  11 24 9 49 13 1 27  474 
1 + 2 + 3 Total activity in the country  36 96 25 22 30 121 12 26 229 329 49 27 148 132 14 15 39 42 178 44 46 29 190 15 5 166 248 2313 
Branches in EU/EEA countries  17 31  4 1 5 3 0  118  2 29 4 5  13 1  1 1  24   27  286 
Branches in third (non-EU/EEA) countries  1 1  1 0 1 0 0  13   6 2 0  7    0  0   1  33 
Composite enterprises                             0 
1 National enterprises 28 23  3 15  0 0 40  11 10  14   0 3   7 10 47 12 8  16 247 
2 Branches of third (non-EU/EEA) countries 0 0   0  0 0 0  0   0   0    1  1    2 4 
1 + 2 Total under national supervision  28 23 0 3 15 0 0 0 40 0 11 10 0 14 0 0 0 3  0 8 10 48 12 8 0 18 251 
3 Branches of EU/EEA countries  0 2  1 0  0 0   0 1  10   3    4  1 2 2   26 
1 + 2 + 3 Total activity in the country  28 25 0 4 15 0 0 0 40 0 11 11 0 24 0 0 3 3  0 12 10 49 14 10 0 18 277 
Branches in EU/EEA countries  8 8   2  0 0    4  6   0    2 1 0  1   32 
Branches in third (non-EU/EEA) countries  0 0   0  0 0      7   0    1  0     8 
Reinsurance enterprises                             0 
1 National enterprises 3 2 1 1 1 9 0 0 19 33   102 0 0  242 7 16  1  2  2 3 4 448 
2 Branches of third (non-EU/EEA) countries 0 0   0  0 0 0 1   0 0 0  0    0  0   0 0 1 
1 + 2 Total under national supervision  3 2 1 1 1 9 0 0 19 34 0 0 102 0 0 0 242 7 16 0 1 0 2 0 2 3 4 449 
3 Branches of EU/EEA countries  1 0   0 0 0 0     0 8 0  0    0  5   0  14 
1 + 2 + 3 Total activity in the country  4 2 1 1 1 9 0 0 19 34 0 0 102 8 0 0 242 7 16 0 1 0 7 0 2 3 4 463 
Branches in EU/EEA countries  0 0  1 0 0 0 0     16 0 0  8    0  0   0  25 
Branches in third (non-EU/EEA) countries  0 0  3 0 0 0 0     7 0 0  0    0  0   0  10 
Total                             0 
1 National enterprises 51 95 35 28 36 134 12 29 346 394 52 37 283 142 12 11 316 52 234 61 44 42 279 20 18 181 374 3318 
2 Branches of third (non-EU/EEA) countries 1 0 0  2 0 1 0 0 5 6 3 0 2 2 0 0  0 1 4 0 1 0 2 0 0 0 15 45 
1 + 2 Total under national supervision  52 95 35 30 36 135 12 29 351 400 55 37 285 144 12 11 316 53 238 61 45 42 281 20 18 181 389 3363 
3 Branches of EU/EEA countries  22 54 9  4 16 46 5 12 0 78 18 13 35 95 10 14  15 6  13 34 11 71 17 3 32 0 633 
1 + 2 + 3 Total activity in the country  74 149 44 34 52 181 17 41 351 478 73 50 320 239 22 25 331 59 238 74 79 53 352 37 21 213 389 3996 
Branches in EU/EEA countries  25 40 0  6 3 7 6 0 0 127 0 7 72 10 5 2  40 1  3 4 1 35 1 2 37 0 434 
Branches in third (non-EU/EEA) countries  1 1 0 5 0 2 0 0 0 13 0 0 13 10 0 0 9 0  0 1 0 0 0 0 1 0 56 
Note: AT: Austria; BE: Belgium; BU: Bulgaria; CY: Cyprus; CZ: Czech Republic; DK: Denmark; EE: Estonia; FI: Finland; FR: France ; DE: Germany; GR: Greece; 
HU: Hungary; IE: Ireland; IT: Italy; LV: Latvia; LT: Lithuania; LU: Luxembourg; MT: Malta; NL: Netherlands; PL: Poland; PT: Por tugal; RO: Romania; ES: Spain; 
SK: Slovakia; SI: Slovenia; SE: Sweden; and GB: United Kingdom.  
Source: Information provided by the European  Commission. 
 
 
  
  WT/TPR/S/284 • European Union  
 
- 213 - Table A4. 3 EU security market capitalization, by member Statea 
(€) 
 Quoted shares issued 
Total MFIs Non-MFI corporations 
Financial corporations other than MFIs Non-financial corporations 
Euro area 4,407,151 395,749 338,207 3,673,194 
Austria 80,333 17,596 6,777 55,960 
Belgium 214,639 0 20,181 194,458 
Cyprus 2,134 784 272 1,078 
Estonia 1,648 0 0 1,648 
Finland 117,741 2,830 14,530 100,381 
France 1,253,938 104,758 47,302 1,101,878 
Germany 1,125,392 53,898 97,803 973,691 
Greece 32,961 3,083 784 29,094 
Ireland 196,699 15,613 12,925 168,161 
Italy 355,427 61,649 38,220 255,558 
Luxembourg 99,143 0 50,730 48,413 
Malta 2,743 1,605 90 1,048 
Netherlands 448,770 647 38,444 409,680 
Portugal 45,852 5,545 78 40,229 
Slovakia 3,419 1,217 0 2,201 
Slovenia 4,571 74 489 4,008 
Spain 421,741 126,449 9,583 285,709 
Non-euro area 2,565,079 114,530 416,048 2,034,502 
Bulgaria 6,354 438 1,566 4,350 
Czech Republic 29,503 4,908 50 24,545 
Denmark 138,412 12,833 6,591 118,988 
Hungary 14,474 2,962 135 11,377 
Lithuania 829   829 
Latvia 3,064 109 100 2,855 
Poland 99,205 32,695 8,412 58,098 
Romania 11,506 2,132 235 9,139 
Sweden 374,506 58,334 25,320 290,852 
United Kingdom  1,887,226 120 373,638 1,513,468 
Total 6,972,230 510,279 754,255 5,707,696 
 
 Securities other than shares issued 
Total MFIs 
(including euro 
system) Non-MFI corporations General government 
Financial corporations other 
than MFIs Non-financial corporations 
Euro area 16,827,169 5,514, 315 3,264,770 984,318 7,063,765 
Austria 489,821 232,051 6,031 58,036 193,703 
Belgium 573,286 68,806 103,114 36,445 364,922 
Cyprus 16,459 5,573 1,276 173 9,437  
  WT/TPR/S/284 • European Union  
 
- 214 -  Securities other than shares issued 
Total MFIs 
(including euro 
system) Non-MFI corporations General government 
Financial corporations other 
than MFIs Non-financial corporations 
Estonia 1,466 4 16 1,194 252 
Finland 214,173 90,578 3,023 31,441 89,131 
France 3,471,636 1,215,194 230,933 458,626 1,566,883 
Germany 3,338,168 1,439,244 124,465 106,389 1,668,070 
Greece 216,716 71,530 4,280 1,619 139,287 
Ireland 1,010,938 84,591 832,765 2,400 91,182 
Italy 2,993,825 957,591 233,001 105,660 1,697,573 
Luxembourg 529,243 63,532 438,256 22,455 5,000 
Malta 5,743 394 252 486 4,611 
Netherlands 1,787,692 574,617 783,639 98,497 330,939 
Portugal 300,992 98,529 34,280 41,996 126,187 
Slovakia  37,597 3,804 68 576 33,149 
Slovenia 20,074 2,247 49 812 16,966 
Spain 1,819,339 606,030 469,323 17,512 726,474 
Non-euro area 5,724,794 2, 054,430 941,266 616,076 2,113,023 
Bulgaria 4,851 143 245 456 4,007 
Czech Republic 88,310 27,648 332 7,705 52,624 
Denmark 675,630 552,182 397 18,967 104,083 
Hungary 76,755 21,992 232 2,086 52,445 
Lithuania 3,028 786  31 2,210 
Latvia 10,520 350 9 112 10,048 
Poland 208,256 31,439 765 13,377 162,675 
Romania 24,727 224 0 0 24,503 
Sweden 623,864 434,276 5,009 63,585 120,995 
United Kingdom  4,008,853 985,389 934,275 509,757 1,579,433 
Total  22,551,963 7,568,745 4,206,036 1,600,394 9,176,788 
a Data are from November 2012 for euro-area member States and December 2011 for non-euro-area member States. 
Note: MFI: monetary financial institutions.  Source: Information provided by the European  Commission. 
 WT/TPR/S/284 • European Union 
 
- 215 - 
 
  Table A4. 4 Total assets under management by pension funds, 2010 and 2011 
(€ million) 
 2010 2011 
Austria 15,734  16,046  
Belgium 2,043  2,351 
Bulgaria 1,178  1,622 
Cyprus .. .. 
Czech Republic 9,192  10,066  
Denmark 69,824  72,517  
Estonia 1,160 .. 
Finland 4,681  4,744 
France 0 0 
Germany 1,043  1,185 
Greece 0 0 
Hungary 14,854  4,114 
Ireland 74,331  61,278  
Italy 30,110  30,989  
Latvia 161  173 
Lithuania 1,145 1,209 
Luxembourg 888  916 
Malta 0 0 
Netherlands 801,028  870,642  
Poland 55,776  54,914  
Portugal 19,724  16,074  
Romania 1,110  1,618 
Slovakia 4,872  5,789 
Slovenia 1,593  1,636 
Spain 87,030  84,819  
Sweden 32,294  34,995  
United Kingdom  1,504,342  1,530,171  
.. Not available. 
Source: ECB online information. Viewed at: http://sdw.ecb.europa.eu/reports.do?node=1000002869 . 
  
  WT/TPR/S/284 • European Union  
 
- 216 - Table A4. 5 Transposition of  financial directives  
Description  Directive No. Transposition 
deadline Member States having 
transposed the directive 
Statutory audits of annual accounts and consolidated accounts 2006/43/EC 29.06.2008 All  
Amendment to accounting directives  2006/46/EC 05.09.2008 All  
Requirement of an independent expert's report (amendment) 2007/63/EC 31.12.2008 All 
Procedural rules and evaluation criteria for the prudential assessment of acquisitions and 
increase of holdings in the financial sector (amendments)  2007/44/EC 21.03.2009 All 
Deposit-guarantee schemes (amendment) 2009/14/EC 31.12.2010 All 
Exercise of certain rights of shareholders in listed companies  2007/36/EC 03.08.2009 All, except 1  
Payment services in the internal market 2007/64/EC 01.11.2009 All 
Amendments to the Capital Requirements Directive  2009/111/EC 31.10.2010 All 
Settlement finality (amendments) 2009/44/EC 30.12.2010 All 
Amendments to the Capital Requirements Directive  2010/76/EU 01.01.2011 All 
Certain disclosure requirements for medium-sized companies and obligation to draw up 
consolidated accounts (amendments) 2009/49/EC 31.12.2011 All, except 17 
Taking up, pursuit, and prudential supervision of the business of electronic money 
institutions  2009/110/EC 30.04.2011 All, except 5  
Undertakings for collective investment in transferable secu rities (UCITS) (recast) 2009/65/EC 30.06.2011 All, except 8  
Reporting and documentation requirements in the case of mergers and divisions 
(amendments) 2009/109/EC 30.06.2011 All 
Directive amending financial services sectoral legislation to ensure effective operation of 
the European System of Financial Supervisors (ESFS) (Omnibus I) 2010/78/EU 31.12.2011 All, except 22 
Prospectus Directive  2010/73/EU 01.07.2012 All, except 25 
Revision of Financial Conglomerates Directive  2011/89/EU 10.06.2013 - 
Taking-up and pursuit of the business of insurance and reinsurance (Solvency II)  2009/138/EC 30.06.2013 - 
Alternative Investment Fund Managers Directive (AIFMD) 2011/61/EC 22.07.2013 - 
Source: Information provided by the European  Commission. 
  
  WT/TPR/S/284 • European Union  
 
- 217 - Table A4. 6 Employment in water and sewerage services, 2010-11 
 Water collection, treatment, and supply Sewerage, waste management, an d remediation activities  
2010 2011 2010 2011 
Employees 
('000) % of total 
employment Employees 
('000) % of total 
employment Employees 
('000) % of total 
employment Employees 
('000) % of total 
employment 
Austria 2.5 0.06 2.6 0.06 18.3 0.45 18.1 0.44 
Belgium 7.8 0.17 8.0 0.18 17.8 0.40 17.8 0.39 
Bulgaria .. .. .. .. ..  .. .. 
Cyprus 0.4 0.10 0.4 0.10 2.1 0.54 2.1 0.53 
Czech Republic 18.1 0.36 18.2 0.36 37.1 0.73 37.5 0.74 
Denmark 3.0 0.11 .. .. 10.0 0.35 .. .. 
Estonia 1.3 0.24 1.9 0.32 1.0 0.18 1.9 0.32 
Finland 2.8 0.11 2.7 0.11 10.1 0.41 10.3 0.41 
France 26.1 0.10 .. .. 116.3 0.43 .. .. 
Germany  37.0 0.09 .. .. 196.0 0.48 .. .. 
Greece 8.8 0.19 7.1 0.16 22.2 0.47 20.8 0.47 
Hungary 26.8 0.66 25.8 0.63 24.4 0.60 22.9 0.56 
Ireland 2.0 0.11 2.8 0.15 9.9 0.54 8.8 0.49 
Italy 36.7 0.15 .. .. 152.0 0.62 .. .. 
Latvia 2.0 0.21 1.8 0.21 6.9 0.74 5.4 0.63 
Lithuania 5.6 0.42 6.3 0.46 5.6 0.42 6.8 0.50 
Luxembourg 0.5 0.14 0.5 0.14 2.1 0.58 2.2 0.59 
Malta 0.8 0.49 0.8 0.48 0.7 0.43 0.7 0.42 
Netherlands 6.3 0.07 6.2 0.07 31.8 0.37 31.5 0.36 
Poland .. .. .. .. .. .. .. .. 
Portugal 13.7 0.28 .. .. 27.9 0.57 .. .. 
Romania 38.4 0.42 .. .. 71.9 0.79 .. .. 
Slovakia 10.9 0.50 10.8 0.49 11.9 0.55 12.1 0.55 
Slovenia 4.2 0.44 4.0 0.42 5.3 0.55 5.6 0.59 
Spain .. .. .. .. .. .. .. .. 
Sweden .. .. .. .. .. .. .. .. 
United Kingdom .. .. .. .. .. .. .. .. 
Total  255.7 0.11 99.9 .. 781.3 0.35 204.5 .. 
.. Not available. 
Source: Information provided by the European  Commission. 
  
  WT/TPR/S/284 • European Union  
 
- 218 - Table A4. 7 Modalities of private sector participation in th e management of water utilities in selected member States 
Member States Private sector participation  Member States Private sector participation  
Austria  None Greece Build, operate, and transfer (BOT) 
Joint ventures 
Belgium 
- Brussels 
- Flanders 
- Wallonia  
Build, operate, own, and transfer (BOOT)  
Water services for industry 
None Hungary Management contract and lease (typical at small systems) 
Share in operating company and lease and company 
owning the system 
Full concession 
Cyprus BOOT (e.g. desalination plants) Ireland Design and build 
Design, build, and operate (DBO) DBFO  
Estonia Sales of shares in municipal water company 
Operating contracts  Luxembourg Private contractors operate public-owned: car; power 
plants; and waste-to-energy plant  
Private carriers operate public communication routes  
Finland Design, build, finance, and operate (DBFO)a Netherlands  Concession (design, finance, build, and maintain 
(BFBM)/DBFO/BOT) Joint development 
France  Concession 
"Affermage " 
"Affermage à îlots "  
"Régie intéressée " (in certain cases) 
"Gérance " (in certain cases) Spain Mixed economy company 
Concessionsb 
Germany " Betreibemodell " 
"Betribsführungsmodell " 
Concession 
"Kooperationsmodell " United Kingdom 
- England & Wales 
- Northern Ireland & Scotland  
Privatization 
Water and waste water projects 
a However, they are not largely used  in water and wast e water services. 
b There are two other contractual forms: " gestión interesada " and " concierto " (Royal Decree No. 2/2000). Moreover, different types of leasing contracts between private 
companies and local authorities still exist.  
Source: Eureau (2004), Contribution to the Green Paper on Public-P rivate Partnership and Community Law on Pu blic Contracts and Co ncessions – COM(2004)  327. Viewed at: 
http://eureau.org/sites/eureau.org /files/documents/2004.07.30-eureau_a nswer_green_paper_on_ppp_final.pdf .  
 
  WT/TPR/S/284 • European Union 
 
- 219 - 
 
  Table A4. 8 Rules of the public procurement di rectives applicable to public contracts and 
concessions 
 Public contracts  Work concessions Service 
concessions 
in classical 
and utilities 
sectors "Classical" 
sectors "Utilities" 
sector "Classical" 
sectors "Utilities" 
sector 
Publication in the Official Journal  of the 
EU  X X X   
Minimum deadline for 
submission X X X   
Rules on additional 
services  X X X   
Rules on 
sub-contracting   X   
Remedies  X X X   
Rules on selection 
criteria X X    
Provisions on technical 
specifications X X    
Rules on award criteria X X    
Publication of contract 
award notices X X    
Rules on choice of 
procedures  X X    
Source: European Commission document SEC( 2011) 1588 final, 20 December 2011. Viewed at: 
http://ec.europa.eu/internal_market/public procurement/docs/concessions/SEC2011_1588_en.pdf . 
  
  WT/TPR/S/284 • European Union  
 
- 220 - Table A4. 9 Summarized trade regimes of environmental services 
Sectors  GATS commitmentsa FTA commitments Other 
agreements Applied regime (EU level and 
intra-EU regime only) 
Water collection 
purification and distribution services through mains except steam and hot water  No commitments
b EU-CARIFORUM, EU-Korea : no commitments  
EU-Chile :  
Market access: 1) Unbound*  2) None, except BG, CY, CZ, EE, HU, LV, LT, MT, PL, RO, SI, SK: unbound 3) None, except AT, BG, DE, UK, CY, CZ, EE, HU, LV, LT, MT, PL, SI, SK: unbound  National treatment: 1) Unbound* 2) None, except BG, CY, CZ, EE, HU, LV, LT, MT, PL, RO, SI, SK: unbound 3) None, except AT, BG, DE, UK, CY, CZ, EE, HU, LV, LT, MT, PL, RO, SI, SK: unbound  -  Directive 2004/18/EC on the 
coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.
do?uri=CELEX:32004L0018:en:NOT )  
Directive 2004/17/EC coordinating the 
procurement procedures of entities operating in the water, energy, transport and postal services sectors (viewed at: http://eur-
lex.europa.eu/LexUriServ/LexUriServ.
do?uri=OJ:L:2004:134:0001:0113:en
:PDF 
6.A Sewage services 
(CPC 9401)c 
(MTN.GNS/W/120 
terminology); or  
Waste water services 
(CPC 9401) (EU 
terminology) Scope: All member States, 
except EE: 9401; EE: 9401 
contracted by private 
industry 
1) All member States: 
unbound, except EE, LV, LT: 
none 
2) 3) All member States: 
none, except CY,FI, HU, 
MT,PL, RO: unbound EU-CARIFORUM : 
1) Unbound, except for consulting services  
2) 3) none  
EU-Chile : (scope: all member States, except BG: CPC 
9401, part of 18000. BG: CPC 9401) 
1) All member States, except EE, LT, LV: unbound; EE, 
LT, LV: none* 
2) 3) HU, RO: unbound 
EU-Korea: 
1) unbound except for consulting services 
2) none  
3) none  - Directive 2004/18/EC on the 
coordination of procedures for the 
award of public works contracts, 
public supply contracts and public 
service contracts ( http://eur-
lex.europa.eu/LexUriServ/LexUriServ.
do?uri=CELEX:32004L0018:en:NOT )  
Directive 2004/17/EC coordinating the 
procurement procedures of entities 
operating in the water, energy, 
transport and postal services sectors 
(http://eur-
lex.europa.eu/LexUriServ/LexUriServ.
do?uri=OJ:L:2004:134:0001:0113:en
:PDF 
6.B Refuse disposal 
services (CPC 9402) (MTN.GNS/W/120 terminology); or  B. Solid/hazardous waste management, excluding cross-border transport of hazardous waste a) Refuse disposal services (CPC 9402) (EU 
terminology)  Scope: all member States, 
except EE: 9402; EE: 9402 contracted by private industry 1) All member States: unbound, except EE, HU: none  2) 3) All member States: none, except CY,MT,PL, RO: unbound EU-CARIFORUM : 
1) Unbound, except for consulting services  2) 3) None  EU-Chile:  Market access +national treatment: 
1) All member States, except EE, HU: unbound; EE, HU: none 2) 3) RO: unbound EU-Korea:  
1) Unbound, except for consulting services 2) 3) None - Directive 2004/18/EC on the 
coordination of procedures for the award of public works contracts, public supply cont racts, and public 
service contracts ( http://eur-
lex.europa.eu/LexUriServ/LexUriServ.
do?uri=CELEX:32004L0018:en:NOT   
  WT/TPR/S/284 • European Union  
 
- 221 - Sectors  GATS commitmentsa FTA commitments Other 
agreements Applied regime (EU level and 
intra-EU regime only) 
6.C Sanitation and similar 
services (CPC 9403) 
(MTN.GNS/W/120 
terminology); or  
Solid/hazardous waste 
management, excluding 
cross-border transport of 
hazardous waste 
b) Sanitation and similar 
services (CPC 9403) (EU 
terminology)  1) All member States: 
unbound, except EE, HU, LT: 
none 
2) 3) All member States: 
none, except CY, MT, PL, FI, 
RO: unbound EU-CARIFORUM:  
1) Unbound, except for consulting services 
2) 3) None 
EU-Chile:   
Market access + national treatment:  
1) All member States, except EE, HU: unbound; EE, HU: 
none 
2) 3) RO: unbound 
EU-Korea: 
1) Unbound, except for consulting services 
2) 3) None - 1) 2) 3) None via the freedom of 
establishment and the freedom to 
provide services instituted by the EU 
treaty  
6.D Other environmental 
services      
6.D.a Cleaning services of 
exhaust gases (CPC 9404) 
(MTN.GNS/W/120 
terminology); or  
Protection of ambient air 
and climate (CPC 9404) 
(EU terminology)  
 Scope: all member States, 
expect BG, PL: CPC 9404; 
BG: monitoring services of 
exhaust gases (part of CPC 
9404); PL: part of CPC 9404 
1) All member States: 
unbound, except EE, FI, LT, 
PL, RO: none  
2) 3) All member States: 
none, except CY, CZ, HU, 
MT, SK, SI: unbound and SE 
government-owned 
monopoly for control 
services of exhaust-gas from 
cars and trucks. Such 
services must be offered on 
a non-profit basis (3) only)  EU-CARIFORUM:   
1) Unbound except for consulting services  
2) 3) None 
EU-Chile:  scope: all member States, except BG: CPC 
9404; BG: monitoring services of exhaust gases (part of 
CPC 9404) 
Market access and national treatment:  
1) All member States, except EE, LT, PL, RO: unbound; 
EE, LT, PL, RO: none 
2) None 
Market access:  
3) SE: government-owned mono poly for control services 
of exhaust gas from cars and trucks. Such services must 
be offered on a non-profit basis 
National treatment: 
3) None 
EU-Korea:  
1) Unbound, except for consulting services 
2) 3) none - 1) 2) 3) None via the freedom of 
establishment and the freedom to 
provide services instituted by the EU 
treaty   
  WT/TPR/S/284 • European Union  
 
- 222 - Sectors  GATS commitmentsa FTA commitments Other 
agreements Applied regime (EU level and 
intra-EU regime only) 
6.D.b Noise abatement 
services (CPC 9405) 
(MTN.GNS/W/120 
terminology); or  Noise and vibration abatement (CPC 9405) (EU terminology)  Scope: All member States, 
expect BG, PL: CPC 9405; 
BG: noise pollution 
monitoring services (part of CPC 9405); PL: part of CPC 9405  1) All member States: unbound, except EE, FI, LT, PL, RO: none 2) 3) All member States: unbound, except AT, BG,EE, FI, LV, LT, PL, SE, RO: none  EU-CARIFORUM:  
1) Unbound, except for consulting services  
2) 3) None 
EU-Chile:  scope: all member States, except BG: CPC 
9405. BG: noise pollution monitoring services of exhaust gases (part of CPC 9405) Market access and national treatment:  1) All member States, except EE, LT, PL, RO: unbound; EE, LT, PL, RO: none 2) 3) None, except for CY, CZ, HU, SK, SI, UK: unbound EU-Korea:  
1) Unbound, except for consulting services 2) 3) None - 1) 2) 3) None via the freedom of 
establishment and the freedom to 
provide services instituted by the EU 
treaty  
6.D.c Nature and 
landscape protection 
services (CPC 9406) 
(MTN.GNS/W/120 
terminology); or 
Protection of biodiversity 
and landscape  
a) Nature and landscape 
protection services (part 
of CPC 9406); and 
remediation and clean-up 
of soil and waters 
a) Treatment, remediation 
of contaminated/polluted 
soil and water (part of 
CPC 94060) (EU 
terminology) Scope: services (all member 
States, except BG, LT: CPC 
9406; BG: Nature protection 
services (part of CPC 9406); 
LT: CPC 9406 other than 
destined to national parks) 
 
1) All member States: 
unbound, except EE, FI, RO: 
none 
2) 3) All member States: 
none, except CY, CZ, HU, 
MT,PL, SK: unbound EU-CARIFORUM:  
1) Unbound, except for consulting services  
2) 3) None  
EU-Chile:  scope: BG unbound for  protection of 
biodiversity and landscape nature and landscape 
protection services (CPC 9406)  
Market access + national treatment: 
1) All member States, except EE, RO: unbound; EE, RO: 
none 
2) 3) BG, HU: unbound 
EU-Korea:  
1) unbound except for consulting services 
2) 3) none - 1) 2) 3) None via the freedom of 
establishment and the freedom to 
provide services instituted by the EU 
treaty  
6.D.d Other 
environmental protection services (CPC 9409) (MTN.GNS/W/120 terminology); or Other environmental and ancillary services (CPC 9409) (EU terminology)  Scope: all member States, 
except PL: CPC 9409; PL: monitoring of environment. Consultancy related to the environmental protection) 1) All member States: unbound, except EE, FI, PL, RO: none 2) 3) All member States: none, except BG, CY, CZ, HU, MT, SK, SI: unbound  EC-CARIFORUM:  
1) Unbound, except for consulting services  2) 3) None EU-Chile:  scope: part of 94090  
Market access + national treatment:  
1) All member States, except EE, PL, RO: unbound; EE, PL, RO: none 2) 3) BG, HU: unbound EU-Korea:  
1) Unbound except for consulting services 2) 3) None  - 1) 2) 3) None via the freedom of 
establishment and the freedom to provide services instituted by the EU treaty  
a The description of the commitment is drawn from document S/C/W/273 draft consolidated EU schedule, dated 9 October 2006, whic h has not yet entered into force. This 
document constitutes the only source where the commitments appear  in a consolidated manner, taking into account the full member ship of EU-27.   
  WT/TPR/S/284 • European Union  
 
- 223 - b The question of the coverage by the GATS of water collection, purification and distribution th rough mains is disputed among W TO Members. It has no straightforward 
CPC classification except to a certain extent CPC 18000.  
c In the case of EU-Chile, the EU commitment on waste water se rvice refers to both CPC 9401 (sewage services) and to part of CP C 18000. 
Note: CPC means the United Nations Provisional Central Products Classification. Restrictions to national treatment are indicate d only to the extent that they differ from or add 
specific restrictions to market access restrictions. GATS mode 4 commitments are not included in this table since they are not directly comparable with FTA mode 4 
commitments as they cross-refer to different horizontal commitments. Entries may have been summarized but their substance has b een preserved. "Unbound*" means 
unbound due to lack of technical feasibility. A Classification heading followed by an asterisk (e.g. CPC51310*) means "part of"  the heading, unless otherwise explicitly 
stated. The nomenclature used for the first column of the table is that of WTO document MTN.GN S/W/120. The European Economic Ar ea (EEA) and the agreements 
between EU and Albania, Croatia, FYROM and Montenegro have not be en integrated in this comparat ive table in view of their diffe rent nature (deep integration beyond 
trade concerns) and of their different stru cture (based on the approximation of law and devoid of schedu les of commitments). 
 In GATS: environmental services: BG: the commitments do not apply to services related to the collection, transportation, stora ge, secondary use, recycling, restoration, 
use in the production of energy and materials, and disposal of dangerous waste, refuse and substances. BG: the commitments do n ot include environmental services 
supplied in the exercise of governmental authority. BG: These are regulatory, administrative an d control services by government  and municipal bodies related to 
environmental issues. SE: the offer does no t include public-works functions whether ow ned and operated by municipalities, state  or federal governments or contracted 
out by these governments. 
 In EU-Chile: BG: the commitments do not include environmental se rvices supplied in the exercise of governmental authority (3).  SE: the offer does not include 
public-works functions whether ow ned and operated by municipaliti es, state or federal governments or contracted out by these go vernments.  
Source: WTO Secretariat, based on informatio n provided by the European Commission.  
  
  WT/TPR/S/284 • European Union  
 
- 224 - Table A4. 10 Summarized trade regi mes of air transport services 
Sectors GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
Maintenance and 
repair of aircraft 1) All member States: unbound, except 
AT, EE, LV, HU, PL: none 2) All member States: none, except CY and MT: unbound  3) All member States: none, except CY, 
MT: unbound; CZ: corporate seat required 
in the Czech Republic; SK: corporate seat required in the Slovak Republic; RO: authorization from the Romanian Aeronautical Authority required  EU-CARIFORUM, EU-Korea:  
1) BE, BG, CY, CZ, DE, DK, ES, FI, FR, EL, IE, IT, LT, LU, MT, NL, PT, RO, SK, SI, SE, UK: unbound; all others member States: none 
2) None 
3) None EU-Chile:  1) All member States, except EE, HU, LV, PL: unbound; EE, HU, LV, PL: none 
2) All member States: none 
3) All member States, except CZ, SK, RO: none; CZ, SK: corporate seat is required in a country; RO: authorization from the 
Romanian Aeronautical Authority is 
required EU-Korea:
 
Description: the right to adopt or maintain 
any measure that accords differential 
treatment to countries under any international agreement in force or signed 
after the date of entry into force of this 
Agreement Countries to which the measure applies: all 
countries Duration: indefinite 
Justification: needed to protect existing 
and future international agreements  
Selling and 
marketing of air 
transport services Market access:  
1) All member States, except CY, CZ, HU, 
LV, LT, MT, PL, SK: none; CY, CZ, HU, LV, 
LT, MT, PL, SK: unbound 
2) All member States, except CY, HU, LV, 
LT, MT, PL: none; CY, HU, LV, LT, MT, PL: 
unbound 
3) All member States, except CY, CZ, HU, 
LV, LT, MT, PL , RO, SK: none; CY, CZ, HU, 
LV, LT, MT, PL, RO, SK: unbound 
National treatment:  
1) All member States: for distribution 
through CRS of air transport services 
provide by CRS parent carrier: unbound, 
except CY, CZ, HU, LV, LT, MT, PL, SK: 
unbound; BG, RO: none 
2) All member States: none, except CY, 
HU, LV, LT, MT, PL: unbound 
3) All member States: for distribution 
through CRS of air transport services 
provide by CRS parent carrier: unbound, 
except CY, CZ, HU, LV, LT, MT, PL, SK: 
unbound; BG : none All member States:  
Description: provision of Article 7 of 
Regulation (EC) No. 2299/89, as amended 
by Regulation (EC) No. 3089/93, whereby 
the obligations of CRS system vendors or 
of parent and participating air carriers shall 
not apply where equivalent treatment to 
that applied under the Regulation is not 
accorded in the country of origin of the 
parent carrier or of the system vendor. 
Countries to which the measure applies: all 
countries where a CRS system vendor or a 
parent air carrier is located. Duration: 
indefinite. Justification: the need for the 
exemption results from the insufficient 
development of multilaterally agreed rules 
for the operation of CRS) 
BG: 
Scope: sales and marketing services for air 
transport, including CRS. Description: the 
obligations relating to transport services 
shall not apply where equivalent treatment 
of Bulgarian suppliers of like services is not 
accorded in the country of origin of the 
foreign service supplier. Countries to which 
the measure applies: all countries. 
Duration: indefinite. Justification: the aim 
of the application of such a measure is to 
guarantee equal access to the market of 
other countries for Bulgarian suppliers of 
such kinds of services 
LV, LT, PL:  
Description: preferential market access  EU-CARIFORUM:  
1) 2) 3) All member States: EC specific 
obligations for services suppliers operating 
computer reservation systems that are 
owned or controlled by air carriers + BG (3 
only): unbound for direct branching 
(incorporation is required) 
EU-Korea:  
1) 2) 3) All member States: where air 
carriers of the EU are not accorded 
equivalent treatment to that provided in 
the EU by CRS services suppliers in Korea, 
or where CRS services suppliers of the EU 
are not accorded equivalent treatment to 
that provided in the EU by air carriers in 
Korea, measures may be taken to accord 
equivalent treatment, respectively, to the 
air carriers of Korea by the CRS services 
suppliers in the EU, or to the CRS services 
suppliers of Korea by the air carriers in the 
EU; BG (3 only): unbound for direct 
branching (incorporation is required) 
EU-Chile:  
Market access:  
1) 2) None 
3) All member States, except RO: none; 
RO: unbound 
National treatment:  
1) All member States, except BG, RO: for 
distribution through CRS of air transport 
services provide by CRS parent carrier: 
unbound: BG, RO: none 
2) None EU-Korea:  
All member States: 
Description: provision of Article 7 of 
Regulation (EC) No. 2299/89, as amended 
by Regulation (EC) No. 3089/93, whereby 
the obligations of CRS system vendors or 
of parent and participating air carriers shall 
not apply where equivalent treatment to 
that applied under the Regulation is not 
accorded in the country of origin of the 
parent carrier or of the system vendor. 
Countries to which the measure applies: all 
countries where a CRS system vendor or a 
parent air carrier is located 
Duration: indefinite. Justification: the need 
for the exemption results from the 
insufficient development of multilaterally 
agreed rules for the operation of CRS)   
  WT/TPR/S/284 • European Union  
 
- 225 - Sectors GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
  resulting from bilateral air transport 
agreements. Countries to which the 
measure applies: all countries. Duration: 
indefinite. Justification: reciprocal 
provisions concerning supply of air 
transport services as a result of bilateral 
air transport agreements 
RO: 
Description: the right for sales and 
marketing services for air transport is 
granted on a reciprocal basis. Countries to 
which the measure applies: all countries. 
Duration: indefinite. Justification: the 
reciprocity requirement is the reason for the 
exemption 3) All member States, except BG and RO: 
for distribution through CRS of air 
transport services provide by CRS parent 
carrier: unbound; BG: none; RO: unbound   
Computer 
reservations systems
a Market access:  
1) All member States, except CY, CZ, EE, 
LV, LT, MT, PL, SK: none; CY, CZ, EE, LV, 
LT, MT, PL, SK: unbound  
2) All member States, except CY, EE, LV, LT, MT, PL: none; CY, EE, LV, LT, MT, PL: unbound  
3) All member States, except CY, CZ, EE, 
LV, LT, MT, PL, SK: none; CY, CZ, EE, LV, LT, MT, PL, SK: unbound  National treatment:  1) All member States: for obligations of 
parent or participating carriers in respect 
of a CRS controlled by an air carrier of one or more third countries: unbound, except CY, CZ, EE, LV, LT, MT, PL, SK: unbound; BG, RO: none 
2) All member States: none, except CY, 
EE,LV, LT, MT, PL: unbound 3) All member States: for obligations of parent or participating carriers in respect of a CRS controlled by an air carrier of one 
or more third countries: unbound, except 
CY, CZ, EE, LV, LT, MT, PL, SK: unbound; BG, RO: none All Member States:
 
Description: provision of Article 7 of 
Regulation (EC) No. 2299/89, as amended 
by Regulation (EC) No. 3089/93, whereby 
the obligations of CRS system vendors or of parent and participating air carriers shall not apply where equivalent treatment to 
that applied under the Regulation is not 
accorded in the country of origin of the parent carrier or of the system vendor. Countries to which the measure applies: all 
countries where a CRS system vendor or a 
parent air carrier is located. Duration: 
indefinite. Justification: the need for the 
exemption results from the insufficient 
development of multilaterally agreed rules for the operation of CRS 
BG: 
Scope: sales and marketing services for air 
transport, including CRS. Description: the 
obligations relating to transport services shall not apply where equivalent treatment 
of Bulgarian suppliers of like services is not 
accorded in the country of origin of the foreign service supplier. Countries to which 
the measure applies: all countries. 
Duration: indefinite. Justification: the aim 
of the application of such a measure is to guarantee equal access to the market of other countries for Bulgarian suppliers of such kinds of services  EU-CARIFORUM:
 
1) 2) 3) All member States: EC specific 
obligations for services suppliers operating 
computer reservation systems that are 
owned or controlled by air carriers; BG (3 only): unbound for direct branching (incorporation is required) 
EU-Chile:  
Market access 1) 2) 3) None National treatment:  1) 3) All member States, except BG and 
RO: for obligations of parent or 
participating carriers in respect of a CRS controlled by an air carrier of one or more third countries: unbound; BG, RO: none 2) None 
EU-Korea:  
1) 2) 3) All member States: where air carriers of the EU are not accorded equivalent treatment to that provided in the EU by CRS services suppliers in Korea, 
or where CRS services suppliers of the EU 
are not accorded equivalent treatment to that provided in the EU by air carriers in Korea, measures may be taken to accord 
equivalent treatment, respectively, to the 
air carriers of Korea by the CRS services suppliers in the EU, or to the CRS services suppliers of Korea by the air carriers in the EU; BG (3 only): unbound for direct 
branching (incorporation is required) EU-Korea:
 
All member States: 
Description: provision of Article 7 of 
Regulation (EC) No. 2299/89, as amended by Regulation (EC) No. 3089/93, whereby the obligations of CRS system vendors or of parent and participating air carriers shall 
not apply where equivalent treatment to 
that applied under the Regulation is not accorded in the country of origin of the parent carrier or of the system vendor. Countries to which the measure applies: all 
countries where a CRS system vendor or a parent air carrier is located. Duration: 
indefinite. Justification: the need for the 
exemption results from the insufficient development of multilaterally agreed rules 
for the operation of CRS   
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Rental of aircraft 
with crew (CPC 734) 1) 2) All member States: unbound, except 
(in MA) PL: none except that aircraft used 
by Community air carriers have to be 
registered in the member State licensing 
the air carrier or elsewhere in the 
Community. Waivers can be granted for 
short-term lease contracts or under 
exceptional circumstances and (in NT) PL: 
none 
3) All member States: unbound, except (in 
MA) PL: none except that aircraft used by 
Community air carriers have to be 
registered in the aircraft register of that 
member State, the aircraft must be owned 
either by natural persons meeting specific 
nationality criteria or by juridical persons 
meeting specific criteria regarding 
ownership of capital and control (including 
nationality of directors); and (in NT) PL: 
none  EU-CARIFORUM:  
1) 2) All member States: aircraft used by 
Community air carriers have to be 
registered in the member State licensing 
the air carrier or elsewhere in the 
Community. Waivers can be granted for 
short-term lease contracts or under 
exceptional circumstances  
3) Aircraft used by Community air carriers 
have to be registered in the aircraft 
register of that member State, the aircraft 
must be owned either by natural persons 
meeting specific nationality criteria or by 
juridical persons meeting specific criteria 
regarding ownership of capital and control 
(including nationality of directors). Waivers 
can be granted for short-term lease 
contracts or under exceptional 
circumstances; BG: unbound for direct 
branching (incorporation is required) 
EU-Korea:  
1) 2) All member States: aircraft used by 
an air carrier of the EU have to be 
registered in the member State of the EU 
licensing the air carrier or, if the licensing 
member State so allows, elsewhere in the 
EU. To be registered, aircraft may be 
required to be owned either by natural 
persons meeting specific nationality 
criteria or by juridical persons meeting 
specific criteria regarding ownership of 
capital and control. By exception, aircraft 
registered in Korea may be leased by a 
Korean air carrier to an air carrier of the 
EU in specific circumstances for the air 
carrier of the European Union’s exceptional 
needs, seasonal capacity needs, or needs 
to overcome operational difficulties, which 
cannot reasonably be satisfied through 
leasing aircraft registered within the EU, 
and subject to obtaining the approval of a 
limited duration from the member State of 
the EU licensing the air carrier 
3) All member States: aircraft used by an 
air carrier of the EU have to be registered 
in the member State of the EU licensing 
the air carrier or, if the licensing member 
State so allows, elsewhere in the EU. To be 
registered, aircraft may be required to be 
owned either by natural persons meeting 
specific nationality criteria or by juridical 
persons meeting specific criteria regarding  EU-Korea:  
Description: the right to adopt or maintain 
any measure that accords differential 
treatment to countries under any 
international agreement in force or signed 
after the date of entry into force of this 
Agreement. Countries to which the 
measure applies: all countries. Duration: 
indefinite. Justification: needed to protect 
existing and future international 
agreements  
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- 227 - Sectors GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
   ownership of capital and control. Aircraft 
must be operated by an air carrier owned 
either by natural persons meeting specific 
nationality criteria or by juridical persons 
meeting specific criteria regarding 
ownership of capital and control  
EU-Chile: 
Market access:  
1) 2) All member States, except PL: 
unbound; PL: none, except that aircraft 
used by Community air carriers have to be 
registered in the Member State licensing 
the air carrier or elsewhere in the 
Community. Waivers can be granted for 
short-term lease contracts or under 
exceptional circumstances 
3) All member States, except PL: 
unbound; PL: none, except that aircraft 
used by Community carriers have to be 
registered in the aircraft register of that 
member State, the aircraft must be owned 
either by natural persons meeting specific 
nationality criteria or by juridical persons 
meeting specific regarding ownership of 
capital and control (including nationality of 
directors) 
National treatment:  
1) 2) 3) All member States, except PL: 
unbound; PL: none    
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Ground handling 
services (including catering) No commitments
  EU-CARIFORUM:  
1) 2) All member States: unbound, except 
for catering 3) All member States: categories of activities depend of size of airport. The 
number of providers in each airport can be 
limited due to available space constraints and to not less than two suppliers for other reasons; BG: unbound for direct branching (incorporation is required) 
EU-Korea:   
1) All member States: unbound, except for catering 2) All member States: none, except BG, 
CZ, HU,MT, PL, RO, SK, SI: unbound 
3) All member States: unbound except for national treatment. Categories of activities depend of size of airport. The number of providers in each airport can be limited 
due to available space constraints and to 
not less than two suppliers for other reasons; BG: unbound for direct branching (incorporation is required) EU-Chile:  no commitments  EU-Korea:
 
Description: the right to adopt or maintain 
any measure that accords differential 
treatment to countries under any international agreement in force or signed 
after the date of entry into force of this 
Agreement Countries to which the measure applies: all 
countries Duration: indefinite 
Justification: needed to protect existing 
and future international agreements  
Storage and 
warehousing for air 
transport (part of 
CPC 742) 1) All member States: unbound, except 
EE, HU, LV: none 
2) 3) All member States: none, except BG, 
CY, CZ, MT, PL, RO, SE, SK: unbound   EU-CARIFORUM, EU-Korea:  
1) 2) All member States: none 
3) All member States: none, except BG: 
unbound for direct branching 
(incorporation is required) and PL for 
storage services of frozen and refrigerated 
goods and bulk storage service of liquids 
or gases, categories of activities depend on 
size of airport. The number of providers in 
each airport can be limited due to available 
space constraints and to not less than two 
suppliers for other reasons  
EU-Chile: 
1) All member States: unbound* 
2) 3) All member States: none, except BG, 
CY, CZ, MT, LT, PL, RO, SK and SE: 
unbound EU-Korea:  
Description: the right to adopt or maintain 
any measure that accords differential 
treatment to countries under any 
international agreement in force or signed 
after the date of entry into force of this 
Agreement. Countries to which the 
measure applies: all countries. Duration: 
indefinite. Justification: needed to protect 
existing and future international 
agreements   
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- 229 - Sectors GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
Freight transport 
agency services 
(part of CPC 748) Market access:  
1) 2) All member States: none, except CY, 
CZ, HU, MT, PL, RO, SK, SE: unbound; and 
BG: none other than commercial presence 
required 
3) All member States: none, except CY, 
CZ, HU, MT, PL, RO, SK, SE: unbound; and 
BG: none other than foreign persons can 
only supply services through participation 
in Bulgarian companies with 49% 
limitation on equity participation and 
through branches 
National treatment:  
1) All member States, except CY, CZ, HU, 
MT, PL, RO, SE, SI, SK: none; CY, CZ, HU, 
MT, PL, RO, SK, SE: unbound; SI: none 
other than customs clearance is subject to 
limitation to juridical persons established in 
the Republic of Slovenia 
2) 3) All member States, except CY, CZ, 
HU, MT, PL, RO, SE, SI, SK: none; CY, CZ, 
HU, MT, PL, RO, SK, SE: unbound; SI: none 
other than customs clearance is subject to 
limitation to juridical persons established in 
the Republic of Slovenia  EU-CARIFORUM:  
1) 2) All member States: none 
3) All member States: none, except BG 
unbound for direct branching 
(incorporation is required); and SI: only 
juridical persons established in the 
Republic of Slovenia (no branches) can 
perform custom clearance 
EU-Korea: 
1) 2) All member States: none 
3) All member States: none, except BG 
foreign persons can only supply services 
through participation in BG companies with 
49% limitation on equity participation and 
through branches; and SI: only juridical 
persons established in the Republic of 
Slovenia (no branches) can perform 
custom clearance and CY, CZ, HU, MT, PL, 
RO, SK: unbound 
EU-Chile: 
Market access: 
1) 2) CY, CZ, HU, MT, PL, RO, SK, SE: 
unbound; BG: commercial presence 
required 
3) CY, CZ, HU, MT, PL, SK, SE: unbound; 
BG: foreign persons can only supply 
services through participation in Bulgarian 
companies with 49% limitation on equity 
participation and through branches 
National treatment: 
1) CY, CZ, HU, MT, PL, RO, SK, SE: 
unbound; SI: none other than customs 
clearance is subject to limitation to 
juridical person established in the Republic 
of Slovenia 
2) CY, CZ, HU, MT, PL, RO, SK, SE: 
unbound 
3) CY, CZ, HU, MT, PL, RO, SK, SE: 
unbound; SI: none other than customs 
clearance is subject to limitation to 
juridical persons established in the 
Republic of Slovenia  EU-Korea:  
Description: the right to adopt or maintain 
any measure that accords differential 
treatment to countries under any 
international agreement in force or signed 
after the date of entry into force of this 
Agreement. Countries to which the 
measure applies: all countries. Duration: 
indefinite. Justification: needed to protect 
existing and future international 
agreements   
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- 230 - Sectors GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
Airport 
management  No commitments   EU-CARIFORUM:  
1) All member States: unbound 
2) All member States: none 
3) All member States: none, except BG: 
unbound for direct branching 
(incorporation is required); and PL foreign 
participation is limited to 49% 
EU-Korea:  no commitments 
EU-Chile: no commitments EU-Korea:  
Description: the right to adopt or maintain 
any measure that accords differential 
treatment to countries under any 
international agreement in force or signed 
after the date of entry into force of this 
Agreement.  
Countries to which the measure applies: all 
countries. Duration:  indefinite. 
Justification: needed to protect existing 
and future international agreements  
a For HU, the scope is limited to computer reservations systems (as defined in paragrap h 6(c) of the Annex on Air Transport Ser vices.  
Note: CPC means the United Nations Provisional Central Products Classification. Restrictions to national treatment are indicate d only to the extent that they differ from or add 
specific restrictions to market access restrictions. GATS mode 4 commitments are not included in this table since they are not directly comparable with FTA mode 4 
commitments as they cross-refer to different horizontal commitments. Entries may have been summarized but their substance has b een preserved. "Unbound*" means 
unbound due to lack of technical feasibility. A Classification heading followed by an asterisk (e.g. CPC51310*) means "part of"  the heading, unless otherwise explicitly 
stated. The nomenclature used for the first column of the table is that of WTO document MTN.GN S/W/120. The European Economic Ar ea (EEA) and the agreements 
between EU and Albania, Croatia, FYROM and Montenegro have not be en integrated in this comparat ive table in view of their diffe rent nature (deep integration beyond 
trade concerns) and of their different stru cture (based on the approximation of law and devoid of schedu les of commitments). 
 The description of the commitment is drawn from document S/C/W/273 draft consolidated EU schedule, dated 9 October 2006, which  has not yet entered into force and 
that of the MFN exemptions from  document TN/S/OEECR1, draft o ffer from the European Union and it s member States, dated 29 June 2005, pp. 418-431. Those 
documents constitute the only sources where the commitments and dr aft MFN exemptions appear in a consolidated manner taking int o account the full membership of 
EU-27 for commitme nts and EU-25 for MFN exemptions. 
Source: Information provided by the European  Commission. 
  
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- 231 - Table A4. 11 Summarized trade regi mes of rail transport services 
Sectors  GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
11.E.a Passenger 
transportation CPC 
7111 Market access:  
1) All member States: unbound 
2) All member States: unbound, except HU: none 3) All member States: unbound, except HU: services may be provided through a contract of concession granted by the state or the local authority National treatment:  1) 2) 3) All member States, except HU: unbound; HU: none  CZ, SK:  
Description:  measures that are taken 
under existing or future agreements 
and which regulate traffic rights and operating conditions and the provision of transport services in the territory of the Czech Republic, and the Slovak Republic and between the countries concerned Countries to which the measures apply: 
all countries with which agreements are or will be in force. Duration: indefinite. 
Justification: to protect the integrity of 
rail transport infrastructure and the environment and to regulate traffic rights in the territory of the Czech Republic and the Slovak Republic and between the countries concerned BG: Description: measures taken under 
existing or future agreements which govern access and/or traffic rights and the terms of conduct of this kind of economic activity in the territory of the Republic of Bulgaria or between the 
countries which are parties to the 
corresponding agreements. Countries to 
which the measures apply: all countries 
with which agreements are or will be in force. Duration: indefinite. Justification: 
protection of the integrity of the infrastructure, as well as environmental protection, and regulation of traffic rights in the territory of the Republic of Bulgaria and between the countries concerned, taking account the regional specificity of these kinds of services EU-CARIFORUM, EU-Korea:  
1) All member States: unbound 
2) All member States: none  3) All member States: none except BG unbound for direct branching (incorporation is required)  EU-Chile: Market access: 1) All member States: unbound  2) All member States, except HU: unbound; HU none 3) All member States, except HU: unbound; HU: services may be provided 
through a contract of concession granted 
by the state or the local authorities National treatment:  1) 2) 3) All member States, except HU: unbound; HU: none CZ, BG, SK: 
Description:  measures that are taken 
under existing or future agreements 
and which regulate traffic rights and operating conditions and the provision of transport services in the territory of the Bulgarian Republic, the Czech Republic, and the Slovak Republic and between the countries concerned. Countries to which the measures apply: 
all countries with which agreements are or will be in force. Duration: indefinite. 
Justification: to protect the integrity of 
rail transport infrastructure and the environment and to regulate traffic rights in the territory of the Czech Republic and the Slovak Republic and between the countries concerned PL: Description: a reciprocity requirement 
concerning supply of transport services by suppliers of countries concerned, in, into and across the territory of such countries. Countries to which the 
measure applies: all countries with 
which agreements are or will be in force. Duration: indefinite. Justification: 
system of existing and future reciprocal agreements on transport cooperation (or of similar character), and promotion and protection of foreign investments, implementing, inter alia , transportation 
quotas resulting from bilaterally agreed system of permits  
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- 232 - Sectors  GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
11.E.b Freight 
transportation 
CPC 7112 Market access: 
1) All member States: unbound 
2) All member States: unbound, except 
HU: none 
3) All member States: unbound, except 
HU: services may be provided through a 
contract of concession granted by the 
state or the local authority 
National treatment: 
1) 2) 3) All member States, except HU: 
unbound; HU none CZ, BG, SK: 
Description:  measures that are taken 
under existing or future agreements 
and which regulate traffic rights and 
operating conditions and the provision 
of transport services in the territory of 
the Czech Republic, Bulgaria, and the 
Slovak Republic and between the 
countries concerned. Countries to which 
the measures apply: all countries with 
which agreements are or will be in 
force. Duration: indefinite. Justification: 
to protect the integrity of rail transport 
infrastructure and the environment and 
to regulate traffic rights in the territory 
of the Czech Republic and the Slovak 
Republic and between the countries 
concerned 
BG: 
Description: measures taken under 
existing or future agreements which 
govern access and/or traffic rights and 
the terms of conduct of this kind of 
economic activity in the territory of the 
Republic of Bulgaria or between the 
countries which are parties to the 
corresponding agreements. Countries to 
which the measures apply: all countries 
with which agreements are or will be in 
force 
Duration: indefinite. Justification: 
protection of the integrity of the 
infrastructure, as well as environmental 
protection, and regulation of traffic rights 
in the territory of the Republic of 
Bulgaria and between the countries 
concerned, taking account the regional 
specificity of this kinds of services EU-CARIFORUM, EU-Korea: 
1) All member States: unbound 
2) All member States: none 
3) All member States: none, except BG: 
unbound for direct 
branching(incorporation is required)  
EU-Chile: 
Market access   
1) All member States: unbound  
2) All member States, except HU: 
unbound; HU: none 
3) All member States, except HU: 
unbound; HU: services may be provided 
through a contract of concession granted 
by the state or the local authorities 
National treatment:  
1) 2) 3) All member States, except HU: 
unbound; HU: none CZ, BG, SK: 
Description:  measures that are taken 
under existing or future agreements 
and which regulate traffic rights and 
operating conditions and the provision 
of transport services in the territory of 
the Bulgarian republic, the Czech 
Republic, and the Slovak Republic and 
between the countries concerned. 
Countries to which the measures apply: 
all countries with which agreements are 
or will be in force. Duration: indefinite. 
Justification: to protect the integrity of 
rail transport infrastructure and the 
environment and to regulate traffic 
rights in the territory of the Czech 
Republic and the Slovak Republic and 
between the countries concerned 
PL: 
Description: a reciprocity requirement 
concerning supply of transport services 
by suppliers of countries concerned, in, 
into and across the territory of such 
countries. Countries to which the 
measure applies: all countries with 
which agreements are or will be in 
force. Duration: indefinite. Justification: 
system of existing and future reciprocal 
agreements on transport cooperation 
(or of similar character), and promotion 
and protection of foreign investments, 
implementing, inter alia , transportation 
quotas resulting from bilaterally agreed 
system of permits 
11.E.c Pushing and 
towing services CPC 7113 No commitments  EU-CARIFORUM, EU-Korea: 
1) All member States: unbound 2) All member States: none 3) All member States: none, except BG: unbound for direct branching (incorporation is required). Participation in Bulgarian companies is limited to 
49% 
EU–Chile:  no commitments    
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- 233 - Sectors  GATS commitments  GATS MFN exemptions  FTA commitments  FTA MFN exemptions  
11.E.d 
Maintenance and 
repair of rail 
transport 
equipment 
CPC 8868*  1) All member States: unbound, except 
EE and HU: none  
2) All member States: none, except AT, 
CY, MT, LV, PL, RO: unbound 
3) All member States: none, except AT, 
CY, CZ, LV, MT, PL, RO, SK: unbound; 
and (in MA only) SE: operators allowed 
to establish and maintain their own 
terminal infrastructure facilities, subject 
to space and capacity constraints  EU-CARIFORUM, EU-Korea: 
1) All member States: unbound, except 
EE, HU: none 
2) All member States: none 
3) All member States: none, except LV: 
state monopoly; and SE: economic 
needs tests apply when an investor 
intends to establish its own terminal 
infrastructure facilities. Main criteria: 
space and capacity constraints 
EU-Chile: 
1) All member States, except EE, HU: 
unbound  
2) All member States, except RO: none; 
RO : unbound 
3) All member States, except RO: none; 
RO : unbound  
11.E.f Supporting 
services for rail transport services CPC 743  No commitments  EU-CARIFORUM, EU-Korea: 
1) All member States: none 2) All member States: none 3) All member States: none, except BG: 
unbound for direct branching 
(incorporation is required). Participation in Bulgarian companies is limited to 49% EU-Chile:  no commitments  
Note: CPC means the United Nations Provisional Central Products Classification. Restrictions to national treatment are indicate d only to the extent that they differ from or add 
specific restrictions to market access restrictions. GATS mode 4 commitments are not included in this table since they are not directly comparable with FTA mode 4 
commitments as they cross-refer to different horizontal commitments. Entries may have been summarized but their substance has b een preserved. "Unbound*" means 
unbound due to lack of technical feasibility. A Classification heading followed by an asterisk (e.g. CPC51310*) means "part of"  the heading, unless otherwise explicitly 
stated. The nomenclature used for the first column of the table is that of WTO document MTN.GN S/W/120. The European Economic Ar ea (EEA) and the agreements 
between EU and Albania, Croatia, FYROM and Montenegro have not be en integrated in this comparat ive table in view of their diffe rent nature (deep integration beyond 
trade concerns) and of their different stru cture (based on the approximation of law and devoid of schedu les of commitments). 
 The description of the commitment is drawn from document S/C/W/273 draft consolidated EU schedule, dated 9 October 2006, which  has not yet entered into force and 
that of the MFN exemptions from  document TN/S/OEECR1, draft o ffer from the European Union and it s member States, dated 29 June 2005, pp. 418-431. Those 
documents constitute the only sources where the commitments and dr aft MFN exemptions appear in a consolidated manner taking int o account the full membership of 
EU-27 for commitme nts and EU-25 for MFN exemptions. 
Source: Information provided by the European  Commission. 
  
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- 234 - Table A4. 12 Summarized trade regime s of maritime transport services 
Sectorsa  GATS commitments  GATS MFN exemptions FTA commitments FTA MFN exemptions 
11.A.a 
Passenger 
transportation 
(CPC 7211) and 11.A.b Freight 
transportation 
(CPC 7212) Sectoral qualification: MT, 
excluding cabotage 
1) 2) 3) All member States : 
unbound, except LV, MT: none FI: 
Description: existing or future 
reciprocal measures taken by Finland exempting vessels registered under the foreign flag of a specified other country from 
the general prohibition to operate 
cabotage transport in Finland. Countries to which the measures 
apply: all countries. Duration: 
indefinite. Justification: regional 
specificity of the maritime 
cabotage transport 
SW: Description: reciprocal measures 
taken by Sweden based upon 
existing or future agreements 
exempting vessels registered under the foreign flag of the 
countries indicated in column 3) 
from the general prohibition to operate cabotage traffic in 
Sweden. Countries to which the 
measures apply: all countries 
with which bilateral or plurilateral 
agreements are in force. 
Duration: indefinite. Justification: 
to regulate cabotage traffic based 
on reciprocal agreements  
BG: 
Description: equality in freight 
liftings originating in the ports of 
partners to the agreement and 
equality in freight earnings. Countries to which the measure 
applies: India and other countries 
with which bilateral cargo-sharing agreements are or will be  EU- CARIFORUM: 
Sectoral qualification: all member 
States, excluding cabotage 
1) 2) All member States: none, 
except BG, CY, DE, EE, ES, FR, FI, EL, IT, LT, LV, MT, PL, PT, RO, 
SI and SE: feedering services by 
authorisation 3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, NL, PL, PT, RO, SK,SI, SE, UK: unbound for the 
establishment of a registered 
company for the purpose of operating a fleet under the national flag of the State of 
establishment; BG: unbound for 
direct branching (incorporation is required); BG, CY, DE, EE, ES, 
FR, FI, EL, IT, LT, LV, MT, PL, PT, 
RO, SI, SE: feedering services by authorisation 
EU-Korea:   
Sectoral qualification: all member States, excluding cabotage 1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, LU, NL, PL, PT, RO, SK, SI, SE, 
UK: unbound for the 
establishment of a registered company for the purpose of 
operating a fleet under the 
national flag of the State of establishment EU-Chile:  
Sectoral qualification: all member 
States, excluding cabotage EU Korea: 
All member States : 
Description: measures concerning 
the establishment, activities and 
operations of shipping companies beyond the commitment 
undertaken by Korea in 
Annex 7-A. Countries to which 
the measures apply: unspecified. 
Duration: indefinite. Justification: 
international agreements in the context of overall trade relations 
FI: 
Description: existing or future 
reciprocal measures taken by Finland exempting vessels 
registered under the foreign flag 
of a specified other country from the general prohibition to operate 
cabotage transport in Finland. 
Countries to which the measures 
apply: all countries. Duration: 
indefinite. Justification: regional 
specificity of the maritime cabotage transport SW: 
Description: reciprocal measures 
taken by Sweden based upon 
existing or future agreements 
exempting vessels registered 
under the foreign flag of the countries indicated in column 3) 
from the general prohibition to 
operate cabotage traffic in Sweden. Countries to which the 
measures apply: all countries 
with which bilateral or plurilateral agreements are in force.   
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- 235 - Sectorsa  GATS commitments  GATS MFN exemptions FTA commitments FTA MFN exemptions 
  concluded. Duration: indefinite. 
Justification: bilateral 
international agreements in the 
context of overall trade relations 
BG: Description: preferential 
treatment of national lines 
belonging to countries which are 
parties to the UN Convention on a Code of Conduct on Liner 
Conference. Countries to which 
the measure applies: the parties 
to the UN Convention on a Code of Conduct on Liner Conference. 
Duration: indefinite. Justification: 
international agreement  Market access: 
1) a) liner shipping: none, except BG, RO: unbound 
b) bulk, tramp, and other 
international shipping, including passenger transportation: none, except BG, RO: unbound 
2) BG, RO: unbound 
3) a) establishment of registered company for the purpose of 
operating a fleet under the 
national flag of the State of establishment: unbound for all 
member States, except LV, MT: 
none b) other forms of commercial presence for the supply of 
international maritime transport 
services (as defined below under Definitions concerning maritime 
transport): none, except BG, RO: 
unbound National treatment: 
1) a) liner trade: none, other 
than the exceptional case where a member State would have to enforce EC Regulation 954/79, 
Article 2, par. 2; for all member 
States, except: BG, RO: unbound
 
b) BG, RO: unbound 
2) BG, RO: unbound 
3) a) All member States: unbound, except LV, MT: none 
b) BG, RO: unbound  Duration: indefinite. Justification: 
to regulate cabotage traffic based 
on reciprocal agreements  
11.A.c Rental 
of vessels 
with crew 
CPC 7213 All member States, except FI, LT: 
CPC 7213 and 7223; FI: only 
CPC 7213; LT: only CPC 7223 
1) All member States, except AT, 
BG, CY, CZ, DE, EE, FR, HU, LT, 
LV, MT, PL, RO, SE, SI, SK: none; DE: 
Description: chartering-in of 
foreign ships by consumers 
resident in Germany may be 
subject to a condition of 
reciprocity. Countries to which  EU-CARIFORUM: 
1) AT, BG, CY, CZ, DE, EE, HU, 
LT, MT, PL, RO, SK, SI, SE: 
unbound; all other member 
States: none 
2) All member States: none  EU-Korea: 
DE: 
Description: chartering-in of 
foreign ships by consumers 
resident in Germany may be 
subject to a condition of   
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- 236 - Sectorsa  GATS commitments  GATS MFN exemptions FTA commitments FTA MFN exemptions 
 FR: chartering of all ships is 
subject to prior notification; AT, 
BG, CY, CZ, DE, EE, HU, LT, MT, 
PL, RO, SE, SI, SK: unbound; LV: 
unbound for CPC 7223 
2) All member States, except AT, 
BG, CY, DE, EE, FR, HU, MT, PL, 
RO, SE, SI, SK: none; FR: 
chartering of all ships is subject to 
prior notification; AT, BG, CY, DE, 
EE, HU, MT, PL, RO, SE, SI, SK: 
unbound 
3) All member States, except AT, 
BG, CY, CZ, EE, FR, HU, LT, MT, 
PL, RO, SE, SI, SK: none; FR: 
chartering of all ships is subject to 
prior notification; AT, BG, CY, CZ, 
EE, HU, LT, MT, PL, RO, SE, SI, 
SK: unbound the measure applies: all 
countries. Duration: indefinite. 
Justification: need to ensure 
effective market access and 
equivalent treatment for German 
service suppliers  3) All member States: none, 
except BG: unbound for direct 
branching (incorporation is 
required) participation in 
Bulgarian companies limited to 
49% 
EU-Korea : 
1) AT, BG, CY, CZ, DE, EE, HU, 
LT, MT, PL, RO, SK, SI, SE: 
Unbound, all other member 
States none 
2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO,SK, SI, 
SE, UK: unbound for the 
establishment of a registered 
company for the purpose of 
operating a fleet under the 
national flag of the State of 
establishment; BG: unbound for 
direct branching (incorporation is 
required) participation in 
Bulgarian companies limited to 
49% 
EU-Chile:  
Market access:  
1) FR: chartering of all ships is 
subject to prior notification; AT, 
BG, CY, CZ, EE, HU, LT, LV, MT, 
PL, RO, SE, SK, SI: unbound 
2) FR: chartering of all ships is 
subject to prior notification; AT, 
BG, CY, EE, HU, MT, PL, RO, SE, 
SI, SK: unbound 
3) FR: chartering of all ships is 
subject to prior notification; AT, 
BG, CY, CZ, EE, HU, LT, LV, MT, 
PL, RO, SE, SK, SI: unbound reciprocity. Countries to which 
the measure applies: all 
countries. Duration: indefinite. 
Justification: need to ensure 
effective market access and 
equivalent treatment for German 
service suppliers  
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   National treatment:  
1) AT, BG, CY, CZ, EE, HU, LT, 
LV, MT, PL, RO, SE, SK, SI: 
unbound 
2) AT, BG, CY, EE, HU, LV, MT, 
PL, RO, SE, SI, SK: unbound 
3) AT, BG, CY, CZ, EE, HU, LT, 
LV, MT, PL, RO, SE, SK, SI: 
unbound  
11.A.d 
Maintenance 
and repair of vessels 
CPC 8868* 1) All member States: unbound, 
except EE, HU, LV: none 
2) 3) All member States: unbound, except EE, HU, LV, SI: 
none  EU- CARIFORUM, EU-Korea: 
1) BE, BG, CY, DE, DK, ES, FI, 
FR, EL, IE, IT, LT, MT, NL,PL, PT, RO, SE, SI, UK: unbound; all 
other member States: none 
2) 3) none EU-Chile: Maintenance and repair of 
vessels, except for EE, LV, SI; 
EE, LV: CPC 8868; SI: CPC 8868**  
1) All member States, except EE, 
HU, LV: unbound; EE, HU, LV: none 
2) 3) All member States, except EE, HU, LV, SI: unbound; EE, HU, LV, SI: none  
11.A.e 
Pushing and 
towing 
services 
CPC 7214 1) 2) All member States: 
unbound, except LT, LV: none 
3) All member States: unbound, 
except LV: none  EU- CARIFORUM: 
1) AT, BE, CY, DE, DK, ES, EE, FI, 
FR, EL, IE, IT, MT, NL, PL, PT, SI, 
SE, UK: unbound; all other 
member States: none 
2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered 
company for the purpose of 
operating a fleet under the 
national flag of the State of    
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   establishment; BG: unbound for 
direct branching (incorporation is 
required) participation in 
Bulgarian companies limited to 
49%; FI: pushing and towing 
services can only be provided by 
ships operating under the Finnish 
flag 
EU-Korea: 
1) All member States: unbound* 
2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered 
company for the purpose of 
operating a fleet under the 
national flag of the State of 
establishment; BG: unbound for 
direct branching (incorporation is 
required). Services auxiliary to 
Maritime Transport that require 
the use of vessels can only be 
provided by vessels operating 
under the Bulgarian flag   
11.A.f 
Supporting 
services for maritime 
transport 
CPC 745**  LT: ship agency services (part of 
7480) 
1) 2) All member States: unbound, except LT, LV: none 
3) All member States: unbound, 
except LT, LV; LT: in order to obtain a licence to establish a 
commercial presence a manager 
must speak the Lithuanian language; LV: none  EU-CARIFORUM: 
1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the establishment of a registered 
company for the purpose of 
operating a fleet under the national flag of the State of establishment; BG: unbound for 
direct branching (incorporation is 
required). Participation in    
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   Bulgarian companies is limited to 
49%; other member States: none  
EU-Korea: 
1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, ES, EE, FI, FR, EL, HU, IE, IT, LT, LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered company for the purpose of 
operating a fleet under the 
national flag of the State of establishment; BG: unbound for 
direct branching (incorporation is 
required). For Maritime Agency Services, Korean shipping companies have the right to 
establish branch offices which 
may act as agents for their principal offices. Services 
auxiliary to maritime transport 
that require the use of vessels can only be provided by vessels 
operating under the Bulgarian 
flag; FI: services auxiliary to maritime transport that require the use of vessels can only be 
provided by vessels operating 
under the Finnish flag; other member States: none   
Maritime 
cargo 
handling  EE, LV, LT: CPC 741 
1) All member States, except EE, 
LV: unbound; EE, LV: none 
2) All member States, except EE, 
LV, LT: unbound; EE, LV, LT: none  
3) All member States, except EE, 
LV, LT: unbound; EE, LV, LT: none  BG:  
Description: the right to supply 
these kind of services is granted 
by the Bulgarian Republic on a 
reciprocal basis and under 
bilateral agreements with the 
countries concerned. Countries to 
which the measure applies: all 
countries. Duration: indefinite. 
Justification: the aim of the  EU-CARIFORUM: 
1) AT, BE, BG, CY, CZ, DE, DK, 
ES, FI, FR, EL, HU, IE, IT, LT, LU, 
MT, NL, PL, PT, RO, SK, SI, SE, 
UK: unbound; other member 
States: none 
2) All member States: none 
3) All member States: none, 
except IT: economic needs test 
for maritime cargo-handling  EU-Korea 
BG:  
Description: the right to supply 
these kinds of services is granted 
by the Bulgarian Republic on a 
reciprocal basis and under 
bilateral agreements with the 
countries concerned. Countries to 
which the measure applies: all 
countries. Duration: indefinite.   
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  application of such a measure is 
to guarantee equal access to the 
market of other countries for 
Bulgarian suppliers of such kinds 
of services  services. Main criteria: number of 
and impact on existing 
establishments, population 
density, geographic spread and 
creation of new employment; BG: 
unbound for direct branching 
(incorporation is required). 
Participation in Bulgarian 
companies is limited to 49% 
EU-Korea: 
1) All member States: unbound* 
2)All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered 
company for the purpose of 
operating a fleet under the 
national flag of the State of 
establishment; BG: unbound for 
direct branching (incorporation is 
required); IT: economic needs 
test for maritime cargo-handling 
services. Main criteria: number of 
and impact on existing 
establishments, population 
density, geographic spread and 
creation of new employment; 
other member States: none 
EU-Chile: 
1) All member States: unbound* 
2) 3) (**) BG, MT, RO: unbound; 
(**) public utility concession or 
licensing procedures may apply in 
case of occupation of the public 
domain  Justification: the aim of the 
application of such a measure is 
to guarantee equal access to the 
market of other countries for 
Bulgarian suppliers of such kinds 
of services   
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Customs 
clearance services No commitments  EU-CARIFORUM: 
1) All member States: unbound 2) All member States: none 
3) All member States: none, 
except SI: only juridical persons established in the Republic of Slovenia (no branches) can 
perform customs clearance; BG: 
unbound for direct branching (incorporation is required). 
Participation in Bulgarian 
companies is limited to 49% EU-Korea: 
1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, ES, EE, FI, FR, EL, HU, IE, IT, LT, LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered company for the purpose of 
operating a fleet under the 
national flag of the State of establishment; BG: unbound for 
direct branching (incorporation is 
required); SI: only juridical persons established in the Slovenia (no branches) can 
perform customs clearance; other 
member States: none EU-Chile: 
1) All member States: unbound* 
2) 3) (**) BG, MT, RO: unbound; (**) public utility concession or 
licensing procedures may apply in 
case of occupation of the public domain   
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Container 
station and 
depot services No commitments BG:  
Description: the right to supply 
these kind of services is granted 
by the Bulgarian Republic on a 
reciprocal basis and under 
bilateral agreements with the 
countries concerned. Countries to 
which the measure applies: all 
countries. Duration: indefinite. 
Justification: the aim of the 
application of such a measure is 
to guarantee equal access to the 
market of other countries for 
Bulgarian suppliers of such kinds 
of services  EU-CARIFORUM: 
1) All member States: unbound 
2) All member States: none 
3) All member States: none, 
except BG: unbound for direct 
branching (incorporation is 
required). Participation in 
Bulgarian companies is limited to 
49% 
EU-Korea: 
1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered 
company for the purpose of 
operating a fleet under the 
national flag of the State of 
establishment; BG: unbound for 
direct branching (incorporation is 
required; other member States: 
none 
EU-Chile: 
1) All member States: unbound* 
2) 3) (**) BG, MT, RO: unbound; 
(**) public utility concession or 
licensing procedures may apply in 
case of occupation of the public 
domain EU-Korea:  
BG: 
Description: the right to supply 
these kind of services is granted 
by the Bulgarian Republic on a 
reciprocal basis and under 
bilateral agreements with the 
countries concerned. Countries to 
which the measure applies: all 
countries. Duration: indefinite. 
Justification: the aim of the 
application of such a measure is 
to guarantee equal access to the 
market of other countries for 
Bulgarian suppliers of such kinds 
of services   
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Maritime 
agency services No commitments  EU-CARIFORUM: 
1) 2) All member States: none 3) All member States: none, 
except BG: unbound for direct 
branching (incorporation is required). Participation in Bulgarian companies is limited to 
49% 
EU-Korea: 1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered company for the purpose of operating a fleet under the 
national flag of the State of 
establishment; BG: unbound for direct branching (incorporation is 
required). For maritime agency 
services, Korean shipping companies have the right to 
establish branch offices which 
may act as agents for their principal offices. Services auxiliary to maritime transport 
that require the use of vessels 
can only be provided by vessels operating under the Bulgarian 
flag; other member States: none 
EU-Chile: 1) Unbound 
2) 3) (**) BG, MT, RO: unbound; 
(**) public utility concession or licensing procedures may apply in case of occupation of the public 
domain   
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Maritime 
freight 
forwarding CPC 748 
1) 2) All member States, except 
BG, CY, CZ, HU, MT, PL, RO, SE, 
SK: none; BG: none other than 
commercial presence required; 
CY, CZ, HU, MT, PL, RO, SK, SE: 
unbound 
3) All member States, except BG, 
CY, CZ, HU, MT, PL, RO, SE, SK: 
none; BG: none other than foreign 
persons can only supply services 
through participation in Bulgarian 
companies with 49% limitation on 
equity participation and through 
branches; CY, CZ, HU, MT, PL, 
RO, SK, SE: unbound  EU-CARIFORUM: 
1) 2) All member States: none 
3) All member States: none, 
except BG: unbound for direct 
branching (incorporation is 
required). Participation in 
Bulgarian companies is limited to 
49% 
EU-Korea: 
1) 2) All member States: none 
3) AT, BE, BG, CY, CZ, DE, DK, 
ES, EE, FI, FR, EL, HU, IE, IT, LT, 
LU, MT, NL, PL, PT, RO, SK, SI, 
SE, UK: unbound for the 
establishment of a registered 
company for the purpose of 
operating a fleet under the 
national flag of the State of 
establishment; BG: unbound for 
direct branching (incorporation is 
required). Services auxiliary to 
Maritime Transport that require 
the use of vessels can only be 
provided by vessels operating 
under the Bulgarian flag; other 
member State: none 
EU-Chile: 
1) Unbound 
2) 3) (**) BG, MT, RO: unbound; 
(**) public utility concession or 
licensing procedures may apply in 
case of occupation of the public 
domain   
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Access to/use 
of port services 
(additional 
commitments) No commitments  EU-Chile:   
National treatment with regard to, inter alia , access to ports, use 
of infrastructure and auxiliary 
maritime services of the ports, as well as related fees and charges, customs facilities and the 
assignment of berths and 
facilities for loading and unloading. In ports services also 
include 1) pilotage; 2) towing and 
tug assistance; 3) provisioning, fuelling, and watering; 4) 
garbage collecting and ballast 
waste disposal; 5) port captain's services; 6) navigation aids; 7) shore-based operational 
services essential to ship 
operations, including communications, water, and 
electrical supplies; 8) emergency 
repair facilities; 9) anchorage, berth and berthing services  
a Composite maritime classification associating elements drawn from the CPC-MTN.GNS /W/120 list and from the WTO maritime model s chedule. Commitments belonging 
to item 11.H of the MTN.GNS/W/120 list (“services auxiliary to all modes of transport) are not described here.  
Note: CPC means the United Nations Provisional Central Products Classification. Restrictions to national treatment are indicate d only to the extent that they differ from or add 
specific restrictions to market access restrictions. GATS mode 4 commitments are not included in this table since they are not directly comparable with FTA mode 4 
commitments as they cross-refer to different horizontal commitments. Entries may have been summarized but their substance has b een preserved. "Unbound*" means 
unbound due to lack of technical feasibility. A Classification heading followed by an asterisk (e.g. CPC51310*) means "part of"  the heading, unless otherwise explicitly 
stated. The nomenclature used for the first column of the table is that of WTO document MTN.GN S/W/120. The European Economic Ar ea (EEA) and the agreements 
between EU and Albania, Croatia, FYROM and Montenegro have not be en integrated in this comparat ive table in view of their diffe rent nature (deep integration beyond 
trade concerns) and of their different stru cture (based on the approximation of law and devoid of schedu les of commitments). 
 The description of the commitment is drawn from document S/C/W/273 draft consolidated EU schedule, dated 9 October 2006, which  has not yet entered into force and 
that of the MFN exemptions from  document TN/S/OEECR1, draft o ffer from the European Union and it s member States, dated 29 June 2005, pp. 418-431. Those 
documents constitute the only sources where the commitments and dr aft MFN exemptions appear in a consolidated manner taking int o account the full membership of 
EU-27 for commitme nts and EU-25 for MFN exemptions. 
Source: Information provided by the European  Commission. 
  
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Sectors  GATS commitments  GATS MFN exemption  FTA commitments  FTA MFN exemptions  
11.F.a Passenger 
transport CPC 7121 
(other scheduled 
passenger 
transportation) and 
CPC 7122 (other 
non-scheduled 
passenger 
transportation)  Sectoral qualifications: all member States 
CPC 71213(i.e. interurban regular 
transportation) and 7122 only, except FI, 
LV: idem less CPC 71221 (taxi); and LT: 
the totality of CPC 7121, 7122. For LV, LT, 
RO, SE: cabotage excluded 
1) All member States: unbound 
2) All member States : none, except AT, 
BG, CY, CZ, EE, HU, MT, PL, SI, SK: 
unbound  
3) All member States, except AT, BG, CZ, 
EE, FI, HU, LV, LT, MT, PL, RO, SE, SI, SK: 
for transport within a member State 
(cabotage), by a carrier established outside 
that member State: unbound, except for 
rental of non-scheduled services of buses 
with operator (71223) where no limitation 
will apply as from 1996; AT, BG, CZ, EE, 
HU, MT, PL, SI, SK: unbound; FI: 
authorization required, not extended to 
foreign registered vehicles; LT, RO: none; 
LV: authorization required (licence), not 
extended to foreign registered vehicles; SE: 
authorization required for commercial land 
transport service operations. Authorization 
is based on the applicant's financial 
situation, experience and capability to 
supply the services. Limitations on the use 
of leased vehicles for such operations 
For 7122: ES: economic needs test 
For 71221 (taxi services): all member 
States, except those which are unbound 
and except FI, LT, LV, SE: economic needs 
testa, plus DK: access for natural persons 
only, and local establishment requirement; 
IT: access for natural persons only  
For 71222 (limousine services): DK: access 
for natural persons only, and local 
establishment requirement; FI: 
authorization required, not extended to 
foreign registered vehicles; IT: access for 
natural persons only, and economic needs 
test; LV: authorization required (licence), 
not extended to foreig n registered  vehicles; 
PT: economic needs test 
For 71213 (intercity bussing services): IT, 
ES, IE: economic needs test; FR: unbound; 
FI: authorization required, not extended to 
foreign registered ve hicles; DK: economic  All member States:  
Description:  provisions in existing or 
future agreements on international road 
haulage (including combined transport - 
road/rail) and passenger transport, 
concluded between the EU or their 
member States and third countries, 
which: (a) reserve or limit the provision of 
a transport service between the 
contracting parties or across the territory 
of the contracting parties to vehicles 
registered in each contracting party; or 
(b) provide for tax exemption for such 
vehicles. Countries to which the measures 
apply: Switzerland, states in Central, 
Eastern and South-Eastern Europe and all 
members of the Commonwealth of 
Independent States, Albania, Turkey, 
Lebanon, Israel, Syria, Jordan, Egypt, 
Tunisia, Algeria, Morocco, Cyprus, Malta, 
Iran, Afghanistan, Iraq, Kuwait. Duration: 
indefinite. Justification: the need for 
exemption is linked to the regional 
characteristics of the cross-border 
provision of road transport services 
CZ-BG: 
Description: measures that are taken 
under existing or future agreements and 
which reserve or limit the provision of 
transport services and specify operating 
conditions, including transit permits 
and/or preferential road taxes of transport 
services into, in, across and out of the 
Czech Republic and Bulgaria to the 
contracting parties concerned. Countries 
to which the measures apply: all countries 
with which agreements are or will be in 
force. Duration: indefinite. Justification: to 
protect the integrity of road transport 
infrastructure and the environment and to 
regulate traffic rights in the territory of 
the Czech Republic and between the 
countries concerned 
FI: 
Description: provisions of existing and 
future reciprocal bilateral and plurilateral 
agreements on international road 
transport (including combined transport, 
road/rail) reserving cabotage transport in  EU-CARIFORUM, EU-Korea:  
1) All members States: unbound 
2) All members States: none 
3) EU: foreign investors cannot provide 
transport services within a member State 
(cabotage), except for rental of 
non-scheduled services of buses with 
operator and economic needs test for taxi 
services. Main criteria: number of and 
impact on existing establishments, 
population density, geographic spread, 
impact on traffic conditions and creation of 
new employment; AT, BG: exclusive rights 
and/or authorization can only be granted 
to nationals of the member States of the 
EU and to juridical persons of the EU 
having their headquarters in the EU; BG: 
unbound for direct branching 
(incorporation is required); FI, LV: 
authorization is required, not extended to 
foreign registered vehicles; LV, SE: 
requirement for established entities to use 
vehicles with national registration; ES: 
economic needs test for CPC 7122. Main 
criteria: local demand; IT, PT: economic 
needs test for limousine services. Main 
criteria: number of and impact on existing 
establishments, population density, 
geographic spread, impact on traffic 
conditions and creation of new 
employment; ES, IE, IT: economic needs 
test for intercity busing services. Main 
criteria: number of and impact on existing 
establishments, population density, 
geographic spread, impact on traffic 
conditions and creation of new 
employment; FR: unbound for intercity 
bussing services 
EU-Chile: 
All member States, except FI, LV, LT, RO: 
CPC 71213 and 7122; FI: CPC 71222 and 
71223; LV: CPC 71213, 71222, 71223; 
LT: CPC 7121, 7122. For LV, LT: cabotage 
excluded 
1) All members States: unbound 
2) National treatment: none, except BG, 
CY, CZ, EE, HU, MT, PL, SI, SK: unbound. 
Market access: none, except CY, CZ, EE, 
HU, MT, PL, SI, SK: unbound  EU-Korea:  
RO: 
Description: in Romania, permission for 
vehicles registered in the countries 
indicated in column 3) to transport goods 
and/or passengers is in accordance with 
existing or future bilateral road 
agreements. Road cabotage is reserved 
for domestic registered vehicles. Countries 
to which the measure applies: Austria, 
Albania, Belgium, Bulgaria, Czech 
Republic, Cyprus, Croatia, Denmark, 
Switzerland, Latvia, Lithuania, France, 
Finland, Italy, Iran, Germany, Greece, 
Luxembourg, Great Britain, Norway, 
Netherlands, Poland, Portugal, Spain, 
Sweden, Slovak Republic, Syria, Slovenia, 
Turkey, Hungary, and possibly other 
countries in the future. Duration: 
indefinite. Justification: The need for the 
exemption is linked to the regional 
specificity of the cross-border provision of 
road transport services 
All member States: 
Description: provisions in existing or 
future agreements on international road 
haulage (including combined transport - 
road/rail) and passenger transport, 
concluded between the Community or the 
member States and third countries, 
which: (a) reserve or limit the provision of 
transport service between the contracting 
parties or across the territory of the 
contracting parties to vehicles registered 
in each contracting partyb; or (b) provide 
for tax exemption for such vehicles. 
Countries to which the measures apply: 
Switzerland, states in Central, Eastern and 
South-Eastern Europe and all members of 
the Commonwealth of Independent 
States, Albania, Turkey, Lebanon, Israel, 
Syria, Jordan, Egypt, Tunisia, Algeria, 
Morocco, Iran, Afghanistan, Iraq, and 
Kuwait. Duration: indefinite. Justification: 
the need for the exemption is linked to the 
regional specificity of the cross-border 
provision of road transport services 
CZ: 
Description: measures that are taken   
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 needs  test and residence and citizenship 
requirement for the manager; LV: 
authorization required (licence and special 
permit), not extended to foreign registered 
vehicles; PT: access through incorporation 
only 
For 71223: FI: authorization required, not 
extended to foreign registered vehicles; LV: 
authorization required (licence), not 
extended to foreign registered vehicles Finland. Countries to which the measures  
apply: all countries with which bilateral or 
plurilateral agreements are in force. 
Duration: indefinite 
Justification: regional specificity of the 
road transport services 
AT: 
Description: VAT-exemption in Austria is 
limited to international passenger 
transport carried out by foreign 
entrepreneurs by means of motor vehicles 
registered in countries indicated below. 
Countries to which the measure applies: 
successor states of former Yugoslavia, 
Poland, Switzerland, successor States of 
the former USSR (with the exception of 
the Baltic States, Azerbaijan, Georgia, 
Moldova and Uzbekistan), Czech Republic, 
Slovak Republic, Hungary. Duration: 
indefinite. Justification: reciprocity; 
facilitating of the development of 
international touring 
AT: 
Description: exemption from vehicle tax in 
Austria under certain conditions on the 
grounds of declarations of reciprocity 
limited to vehicles registered in the 
countries  
indicated below. Countries to which the 
measure applies: Poland, Hungary. 
Duration: indefinite. Justification: 
reciprocity; facilitating of the development 
of international touring and/or 
international transport of goods 
AT: 
Description: exemption from vehicles tax 
in Austria under certain conditions on the 
grounds of de facto reciprocity limited to 
vehicles registered in the countries 
indicated below. Countries to which the 
measure applies: Bulgaria, Israel, Monaco, 
San Marino, Turkey, Hungary, Vatican 
City, United States. Duration: indefinite. 
Justification: reciprocity; facilitating the 
development of international touring 
and/or international transport of goods 
BG: 
Description: vehicle tax and 
VAT-exemption on the basis of conventions 
or on the grounds of de facto reciprocity  3) National treatment: unbound for 
transport within a member State 
(cabotage), by a carrier established 
outside that member State; AT, BG, HU, 
MT, PL, SK: unbound; LV, SE: 
requirement on established entities to use 
vehicles with national registration. Market 
access: for transport within a member 
State (cabotage), by a carrier established 
outside that member State: unbound, 
except for rental of non-scheduled 
services of buses with operator (71223) 
(*) where no limitation will apply as from 
1996; AT, HU, PL, MT, SK: unbound; SE: 
authorization required for commercial land 
transport service operations. Authorization 
is based on the applicant's financial 
situation, experience and capability to 
supply the services. Limitations on the use 
of leased vehicles for such operations. For 
7122: ES: economic needs test. For 
71221 (taxi services): all member States, 
except in SE: economic needs test, plus 
DK: access for natural persons only, and 
local establishment requirement; IT: 
access for natural persons only. For 71222 
(limousine services): DK: access for 
natural persons only, and  
local establishment requirement; FI: 
authorization required, not extended to 
foreign registered vehicles; IT: access for 
natural persons only, and economic needs 
test; LV: authorization required (licence), 
not extended to foreign registered 
vehicles. PT: economic needs test. For 
71213 (intercity busing services): IT, ES, 
IE: economic needs test; FR: unbound; 
FI: authorization required, not extended 
to foreign registered vehicles; DK: 
economic needs test; LV: authorization 
required (licence and special permit), not 
extended to foreign registered vehicles; 
PT: access through incorporation only. For 
71223: LV: authorization required 
(licence), not extended to foreign 
registered vehicles  under existing or future agreements, and 
which reserve or limit the provision of 
transport services and specify operating 
conditions, including transit permits 
and/or preferential road taxes of transport 
services into, in, across and out of the 
Czech republic to the contracting parties 
concerned. Countries to which the 
measures apply: all countries with which 
agreements are or will be in force. 
Duration: indefinite. Justification: to 
protect the integrity of road transport 
infrastructure and the environment, and 
to regulate traffic rights in the territory of 
the Czech Republic and between the 
countries concerned 
FI: 
Description: provisions in existing or 
future reciprocal bilateral and plurilateral 
agreements on international road 
transport (including combined transport, 
road and rail) reserving cabotage 
transport in Finland. Countries to which 
the measure applies: all countries with 
which bilateral or plurilateral agreements 
are in force. Duration: indefinite. 
Justification: Regional specificity of the 
road transport services 
AT:  
Description: VAT exemption in Austria is 
limited to international passenger 
transport carried out by foreign 
entrepreneurs by means of motor vehicles 
registered in the countries indicated 
below. Countries to which the measure 
applies: successor states of former 
Yugoslavia, Switzerland, and successor 
states of the former USSR (with the 
exception of the Baltic States, Azerbaijan, 
Georgia, Moldova and Uzbekistan). 
Duration: indefinite. 
Justification: reciprocity; and facilitating of 
the development of international touring 
AT: 
Description: exemption from vehicle tax in 
Austria under certain conditions on the 
grounds of de facto reciprocity, limited to 
vehicles registered in the countries 
indicated below. Countries to which the 
measure applies: Israel, Monaco,   
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  limited to the countries indicated. Countries 
to which the measure applies: Austria and 
other European countries. Duration: 
indefinite. Justification: reciprocity. 
Historical links and specific regional aspects  
LT: 
Description: measures that are taken 
under bilateral agreements and which set 
the provisions of transport services and 
specify operating conditions, including 
bilateral transit and other transport 
permits for transport services into, 
through and out of the territory of the 
Republic of Lithuania to the contracting 
parties concerned, road taxes and levies. 
Countries to which the measures apply: all 
countries with which agreements are or 
will be in force. Duration: indefinite. 
Justification: to protect the transport 
infrastructure and the environment and to 
regulate traffic rights in the territory of 
Lithuania and between countries 
concerned 
RO: 
Description: permission for vehicles 
registered in another specified country to 
transport goods and/or passengers in 
accordance with existing and future 
bilateral road agreements. Road cabotage 
is reserved to domestic registered vehicles. 
Countries to which the measure applies: 
Austria, Albania, Belgium, Bulgaria, Czech 
Republic, Cyprus, Croatia, Denmark, 
Switzerland, Latvia, Lithuania, France, 
Finland, Italy, Iran, Germany, Greece, 
Luxembourg, Great Britain, Norway, 
Netherlands, Poland, Portugal, Spain, 
Sweden, Slovak Republic, Syria, Slovenia, 
Turkey, Hungary, and possibly other 
countries in future. Duration: indefinite. 
Justification: the need for the exemption is 
linked to the regional specificity of the 
cross-border provision of the road transport 
services  
PL: 
Description: reciprocity requirement 
concerning supply of transport services by 
suppliers of countries concerned - in, into 
and across the territory of such countries. 
Countries to which the measure applies: 
all countries. Duration: indefinite. 
Justification: system of reciprocal   San Marino, Turkey, Vatican City, and 
United States. Duration: indefinite. 
Justification: reciprocity; and facilitating of 
the development of international touring 
and/or international transport of goods 
LT: 
Description: measures that are taken 
under bilateral agreements and which set 
the provisions for transport services and 
specify operating conditions, including 
bilateral transit and other transport 
permits for transport services into, 
through and out of the territory of the 
Republic of Lithuania to the contracting 
parties concerned, and road taxes and 
levies. Countries to which the measures 
apply: all countries with which 
agreements are or will be in force. 
Duration: indefinite. Justification: To 
protect the transport infrastructure and 
the environment, and to regulate traffic 
rights in the territory of Lithuania and 
between countries concerned 
BG: 
Description: measures taken under 
existing or future agreements which 
reserve and/or restrict the supply of these 
kinds of transportation services and 
specify the terms and conditions of this 
supply, including transit permits and/or 
preferential road taxes, in the territory of 
the Republic of Bulgaria or across the 
borders of the Republic of Bulgaria. 
Countries to which the measures apply: all 
countries with which agreements are or 
will be in force. Duration: indefinite. 
Justification: protection of the integrity of 
the infrastructure, as well as 
environmental protection, and regulation 
of traffic rights in the territory of the 
Republic of Bulgaria and between the 
countries concerned 
PL:  
Description: a reciprocity requirement 
concerning supply of transport services by 
suppliers of countries concerned, in, into 
and across the territory of such countries. 
Countries to which the measure applies: 
all countries. Duration: indefinite. 
Justification: system of existing and future 
reciprocal agreements on transport 
cooperation (or of similar character), and  
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  agreements -  existing and future -  on 
transport cooperation (or of similar 
character) and promotion and protection 
of foreign investments, implementing - 
among others - transportation quotas 
resulting from bilaterally agreed system of 
permits 
SK: 
Description: measures that are taken 
under existing or future agreements and 
which reserve or limit the provision of 
transport services and specify operating 
conditions, including transit permits 
and/or preferential road taxes of transport 
services into, in, across and out of the 
Slovak Republic to the contracting parties 
concerned. Countries to which the 
measures apply: all countries with which 
agreements are or will be in force. 
Duration: indefinite 
Justification: To protect the integrity of 
road transport infrastructure and the 
environment and to regulate traffic rights 
in the territory of the Slovak Republic and 
between the countries concerned 
SP (freight transport only): 
Description: authorization for the 
establishment of a commercial presence in 
Spain may be refused to service suppliers, 
whose country of origin does not accord 
effective market access to Spanish service 
suppliers. Countries to which the measure 
applies: all countries. Duration: indefinite. 
Justification: Need to ensure effective 
market access and equivalent treatment 
for Spanish service suppliers   promotion and protection of foreign 
investments, implementing, inter alia , 
transportation quotas resulting from 
bilaterally agreed system of permits 
SK: 
Description: measures that are taken 
under existing or future agreements, and 
which reserve or limit the provision of 
transport services and specify operating 
conditions, including transit permits 
and/or preferential road taxes of transport 
services into, in, across and out of the 
Slovak Republic to the contracting parties 
concerned. Countries to which the 
measures apply: all countries with which 
agreements are or will be in force. 
Duration: indefinite. Justification: to 
protect the integrity of road transport 
infrastructure and the environment, and 
to regulate traffic rights in the territory of 
the Slovak Republic and between the 
countries concerned 
SP (freight only):  
Description: authorization for the 
establishment of a commercial presence in 
Spain may be refused to service suppliers, 
whose country of origin does not accord 
effective market access to Spanish service 
suppliers. Countries to which the measure 
applies: all countries. Duration: indefinite. 
Justification: need to ensure effective 
market access and equivalent treatment 
for Spanish service suppliers  11.F.b Freight 
transportation 
CPC 7123 No sectoral qualification for all member 
States, except LV, LT, RO, SE: cabotage 
excluded 
1) All member States: unbound 
2) All member States none, except AT, 
BG, CY, CZ, EE, HU, MT, PL, SI, SK: 
unbound 
3) All member States: unbound for 
transport within a member State by a 
carrier established in another member 
State, plus IT: for transport within the 
country, licensing subject to an economic 
needs test; AT, BG, CY, CZ, ES, EE, HU, 
MT, PL, SI, SK: unbound; FI: 
authorization required, not extended to 
foreign registered vehicles; LV: 
authorization required (licence), not 
extended to foreign registered vehicles; 
LT, RO: none; SE: authorization required 
for commercial land transport service 
operations. Authorization is based on the 
applicant's financial situation, experience 
and capability to supply the services. 
Limitations on the use of leased vehicles 
for such operations; national treatment: 
LV, SE: requirement on established 
utilities to use vehicles with national 
registration EU-CARIFORUM, EU-Korea:  
1) All member States: unbound 
2) All member States: none 
3) All member States: none, except AT, 
BG: exclusive rights and/or authorization 
can only be granted to EC nationals and to 
EC juridical persons having their 
headquarters in the EC; BG: unbound for 
direct branching (incorporation is 
required); FI, LV: authorization required, 
not extended to foreign registered 
vehicles; LV, SE: requirement on 
established entities to use vehicles with 
national registration; IT, SK: economic 
needs test. Main criteria is local demand 
EU-Chile:   
1) All member States: unbound 
Market access:  
2) None, except BG, CY, CZ, EE, HU, MT, 
PL, SI, SK: unbound 
3) For transport within a member State by 
a carrier established in another, member 
State: unbound; AT, BG, CY, CZ, ES, EE, 
HU, MT, PL, SI, SK: unbound; IT: for 
transport within the country, licensing 
subject to an economic needs test; FI: 
authorization required, not extended to 
foreign registered vehicles; SE: 
authorization required for commercial land 
transport service operations. Authorization 
is based on the applicant's financial 
situation, experience and capability to 
supply the services. Limitations on the use 
of leased vehicles for such operations 
National treatment:  
2) BG, HU, MT, PL, SK: unbound 
3) Unbound for transport within a member 
State by a carrier established in another 
member State; AT, BG, ES, HU, PL, MT, 
SK: unbound; SE: requirement on 
established utilities to use vehicles with 
national registration  
Of which international 
truck transport  1) All member States: unbound 
2) 3) All member States: unbound, except 
EE: none     
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11.F.c Rental of 
commercial vehicles 
with operator  
CPC 7124 1) All member States, except AT, BG, CY, 
CZ, EE, HU, LV, LT, MT, PL, RO, SK, SI, 
SE: none; AT, BG, CY, CZ, EE, HU, LV, LT, 
MT, PL, RO, SK, SI, SE: unbound 
2) All member States, except AT, BG, CY, 
CZ, EE, HU, LV, LT, MT, PL, RO, SK, SI, 
SE: none; AT, BG, CY, CZ, EE, HU, LV, LT, 
MT, PL, RO, SK, SI, SE: unbound 
3) All member States, except AT, BG, CY, 
CZ, EE, HU, LV, LT, MT, PL, RO, SK, SI, 
SE: none; AT, BG, CY, CZ, EE, HU, LV, LT, 
MT, PL, RO, SK, SI, SE: unbound  EU-CARIFORUM, EU-Korea:  
1) All member States: none, except AT, 
BG, CY, CZ, EE, HU, LV, LT, MT, PL, RO, 
SK, SI, SE: unbound  
2) All member States: none 
3) All member States: none, except AT: 
authorization can only be granted to EC 
nationals and to EC juridical persons 
having their headquarters in the EC; FI: 
authorization required, not extended to 
foreign registered vehicles; BG: unbound 
for direct branching (incorporation is 
required). Participation in Bulgarian 
companies is limited to 49% 
EU-Chile: 
1) AT, BG, CY, CZ, EE, HU, LV, LT, MT, PL, 
RO, SK, SI, SE: unbound 
2) AT, BG, CY, CZ, EE, HU, LV, LT, MT, PL, 
RO, SK, SI, SE: unbound 
3) AT, BG, CY, CZ, EE, HU, LV, LT, MT, PL, 
RO, SK, SI, SE: unbound  
11.F.d Maintenance 
and repair of road 
transport equipment 
CPC 6112 + 8867 Sectoral qualifications: all member States 
CPC 6112, except AT, CZ, EE, HU, SK: CPC 
6112 + 8867; BG: CPC 6112 and part of 
8867; FI: CPC 6112 and parts of CPC 88; 
SI: part of CPC 6112 
1) All member States: none, except BG, 
CY, CZ, FI, LT, LV, MT, PL, RO, SE, SK: 
unbound 
2) All member States: none, except CY, LT, 
MT, PL, RO: unbound  
3) All member States: none, except LV: 
authorization required (licence); SE: 
operators allowed to establish and maintain 
their own terminal infrastructure facilities, 
subject to space and capacity constraints; 
CY, CZ, LT, MT, PL, RO, SK: unbound  EU-CARIFORUM, EU-Korea:  
Sectoral qualification: maintenance and 
repair of motor vehicles, motorcycles, 
snowmobiles and road transport 
equipment (CPC 6112, 6122, part of 
8867, and part of 8868) 
1) 2) None 
3) None, except SE: an economic needs 
test applies when an investor intends to 
establish its own terminal infrastructure 
facilities. Main criteria: space and capacity 
contraints 
EU-Chile:  
All member States, except BG, CZ, EE, FI, 
HU, SI, SK: CPC 6112; BG: 6112, part of 
8867; CZ, EE, HU, SK: 6112 + 8867; FI: 
6112 and parts of 88; SI: part of CPC6112 
(*) 
1) All member States: unbound* 
2) All member States: none, except MT, 
RO: unbound 
3) Market access: all member States: 
none, except SE: operators allowed to 
establish and maintain their own terminal 
infrastructure facilities, subject to space 
and capacity constraints; MT, RO: 
unbound. National treatment: MT, RO: 
unbound   
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11.F.e Supporting 
services for road 
transport services CPC 
744 Sectoral qualification: for LV only CPC 
7441, CPC 7449) 
1) All member States: unbound 
2) All member States, except LV: 
unbound; LV: none 
3) All member States, except LV: 
unbound; LV: authorization required 
(agreement with bus station, license)  EU-CARIFORUM, EU Korea:  
1) All member States: none 
2) All member States: none 
3) All member States: none, except BG: 
unbound for direct branching 
(incorporation is required). Participation in 
Bulgarian companies is limited to 49% 
EU-Chile: 
LV: CPC 7441 and 7449 
1) All member States: unbound 
2) All member States, except LV: 
unbound; LV: none 
3) Market access: all member States, 
except LV: unbound; LV: authorization 
required (agreement with bus station, 
license). National treatment: all member 
States, except LV: unbound ; LV none  
a Needs test based on the number of servic e suppliers in the lo cal geographic area. 
b With regard to Austria, the part of the MFN exemption regard ing traffic rights covers all countries with which bilateral agre ements on road transport or other 
arrangements relating to road tran sport exist or may be desirable. 
Note: CPC means the United Nations Provisional Central Products Classification. Restrictions to national treatment are indicate d only to the extent that they differ from or add 
specific restrictions to market access restrictions. GATS mode 4 commitments are not included in this table since they are not directly comparable with FTA mode 4 
commitments as they cross-refer to different horizontal commitments. Entries may have been summarized but their substance has b een preserved. "Unbound*" means 
unbound due to lack of technical feasibility. A Classification heading followed by an asterisk (e.g. CPC51310*) means "part of"  the heading, unless otherwise explicitly 
stated. The nomenclature used for the first column of the table is that of WTO document MTN.GN S/W/120. The European Economic Ar ea (EEA) and the agreements 
between EU and Albania, Croatia, FYROM and Montenegro have not be en integrated in this comparat ive table in view of their diffe rent nature (deep integration beyond 
trade concerns) and of their different stru cture (based on the approximation of law and devoid of schedu les of commitments). 
 The description of the commitment is drawn from document S/C/W/273 draft consolidated EU schedule, dated 9 October 2006, which  has not yet entered into force and 
that of the MFN exemptions from  document TN/S/OEECR1, draft o ffer from the European Union and it s member States, dated 29 June 2005, pp. 418-431. Those 
documents constitute the only sources where the commitments and dr aft MFN exemptions appear in a consolidated manner taking int o account the full membership of 
EU-27 for commitme nts and EU-25 for MFN exemptions. 
Source: Information provided by the European  Commission. 
  
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- 252 - Table A4. 14 Summarized trade regime s of pipelines transport services 
Sectors  GATS commitments*  FTA commitments 
11.G Pipeline transport 
(CPC 713)   
11.G.a Pipeline 
transport of fuels 
(CPC 7131) 1) All member States: unbound,  
2) All member States: unbound, except HU, 
LT: none 
3) All member States: unbound, except HU: 
service may be provided through a contract 
of concession granted by the State or the 
local authority; and LT: none EU-CARIFORUM, EU-Korea:  
1) All member States: unbound,  
2) All member States: unbound, except HU, LT: none 
3) All member States: unbound, except HU, LT: none 
EU-Chile:   
1) All member States: unbound 
2) All member States: unbound, except HU, LT: none 
3) All member States: unbound, except HU, LT: none; HU: services might be provided 
through a Contract of concession granted by the state or the local authority 
11.G.b Pipeline 
transport of goods 
other than fuel (CPC 7139) 1) All member States: unbound 
2) All member States: unbound, except HU, 
LT: none 3) All member States: unbound, except HU: service may be provided through a contract 
of concession granted by the State or the 
local authority; and LT: none EU-CARIFORUM, EU-Korea:  
1) All member States: unbound 
2) All member States: unbound except HU, LT: none 3) None, except AT: exclusive rights can only be granted to EU nationals and to EU juridical persons having their headquarters in the EU 
EU-Chile: 
1) All member States: unbound,  2) All member States: unbound except HU, LT: none 
3) All member States: unbound except HU, LT: none; HU: services might be provided 
through a Contract of concession granted by the state or the local authority 
Note: CPC means the United Nations Provisional Central Products Classification. Restrictions to national treatment are indicate d only to the extent that they differ from or add 
specific restrictions to market access restrictions. GATS mode 4 commitments are not included in this table since they are not directly comparable with FTA mode 4 
commitments as they cross-refer to different horizontal commitments. Entries may have been summarized but their substance has b een preserved. "Unbound*" means 
unbound due to lack of technical feasibility. A Classification heading followed by an asterisk (e.g. CPC51310*) means "part of"  the heading, unless otherwise explicitly 
stated. The nomenclature used for the first column of the table is that of WTO document MTN.GN S/W/120. The European Economic Ar ea (EEA) and the agreements 
between EU and Albania, Croatia, FYROM and Montenegro have not be en integrated in this comparat ive table in view of their diffe rent nature (deep integration beyond 
trade concerns) and of their different stru cture (based on the approximation of law and devoid of schedu les of commitments). 
 The description of the commitment is drawn from document S/C/W/273 draft consolidated EU schedule, dated 9 October 2006, which  has not yet entered into force. This 
document constitutes the only source where the commitments appear  in a consolidated manner taking into account the full members hip of EU-27 for commitments. 
Source: WTO Secretariat, based on informatio n provided by the European Commission.  
__________