### 6. notes that the environmental impacts caused by the extraction and processing of raw materials for vehicles can be reduced through material efficiency and improved recycling; ### 6. notes that environmental impacts caused by extraction and processing of raw materials for vehicles can be reduced through material efficiency , a shift to less critical materials , phasing out of harmful substances in vehicle equipment and improved recycling; highlights that the design phase is crucial for the subsequent reuse and recycling potential;


### 6. underlines the need to create economic incentives for innovation in circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy; ### 6. underlines the need to create economic incentives for innovation in circular solutions and calls for support for this in the new industrial strategy for europe and the sme strategy; emphasises the specific role that smes (small and medium-sized enterprises) and start-ups are playing in the transition to a circular economy as well as the role of social partners to accompany work-related and social aspects of the shift to a more circular economy;;


### 6. hopes that the circular economy will contribute to the relocation of agriculture and food production at local level by strengthening regional and local food systems; ### 6. hopes that the circular economy will contribute to the relocation of agriculture and food production at local level by strengthening regional and local food systems and will encourage diversification and crop complementarity on and between farms;


### a. whereas unless we reduce our use of resources , the world will be consuming resources as if there were three planets , and whereas a reduction in our overall use of natural resources and in waste is the overarching objective of the circular economy; ### a. whereas a significant reduction in our overall use of natural resources and in the generation of waste should be an overarching objective of the circular economy , as the world would be consuming resources as if there were three planets if the whole world had the same resource consumption as the eu;


### b. whereas up to 80 % of the environmental impacts of products are determined during the design phase; ### b. whereas up to 80 % of the environmental impacts of products are determined during the design phase and only 12% of the materials used by the eu’s industry come from recycling1a;


### 7. urges the commission to introduce longer guarantee periods and a right to repair for vehicles; ### 7. urges the commission to introduce longer guarantee times and a right to repair for vehicles; emphasises that fabrication of a car causes 15 - 20% of its co2 emissions in a life-cycle assessment7a;


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that sustainable , non-toxic , zero-emission and circular products and services should become the norm in the eu market , and that the new sustainable product policy framework as well as the industrial strategy should be guided by a reduction in resource use , non-toxic by design , the retention of value in the economy , waste prevention , the ‘design out of waste’ , workers health and safety , and consumer benefits;


### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in resource use , the retention of value in the economy , waste prevention , the ‘design out of waste’ and consumer benefits should guide the new sustainable product policy framework; ### 7. underlines that sustainable products should become the norm in the eu market , and that a reduction in energy and resource use , the retention of value in the economy , waste prevention , the ‘design out of waste and non-toxic’ as well as consumer benefits should guide the new sustainable product policy framework and the industrial strategy;


### 7. supports the commission in its efforts to better inform consumers on nutritional and ecological claims , and calls for labelling of residues present in food; ### 7. supports the commission in its efforts to better inform consumers by improving origin labelling and also on nutritional and ecological claims , and also calls for labelling of residues , particularly pesticides , present in food;


### 8. calls on the commission to phase out non-rechargeable batteries and to define an increasing share of recycled content in batteries; stresses the relevance of charging patterns for battery electric vehicles for the integration of the sector; ### 8. welcomes the ambition expressed by the commission in the ceap to progress swiftly on the sustainability and circular potential of batteries for electro-mobility and to propose a regulatory framework for batteries in 20208a; calls on the commission to phase out non-rechargeable batteries and to define an increasing share of recycled content in batteries which can save up to 50 % of greenhouse gas emissions in production8b; underlines that standardisation of battery design can be key for enabling future battery reuse and recycling , complemented by designs allowing for reduced inputs of raw materials and use of alternative materials; highlights the potential of a cascaded reuse of batteries in alternative , less demanding stationary applications , such as for the storage and supply of energy , namely to provide quick charging for electric vehicles; emphasises the need for more research on second-use applications , especially for assessing the degradation of battery components , the lifetime and efficiency of batteries in their second use;


### 8. calls for prevention measures to be stepped up in the fight against food loss and waste; ### 8. calls for a hierarchy of measures in the fight against food waste that prioritises prevention , then explores the possibilities for food waste to be donated or processed , and lastly looks at conversion into animal feed or fuel;


### 9. calls on the commission to restrict exports of waste to third countries , as they increase the life–cycle emissions of products; ### 9. calls on the commission to restrict exports of waste to third countries and to review regulation (ec) 1013/2006 on shipments of waste as announced in the new circular economy action plan (ceap); points out that waste exports result in negative environmental and health impacts in the countries of destination and increase the life cycle emissions of products due to this additional transport;


### 9. urges the use of bio-sourced and biodegradable materials in agricultural plastics; ### 9. calls for farm waste collection , sorting and recycling facilities to be set up throughout europe , drawing on the collective responsibility of all actors , farmers , distributors and industrialists; considers also that the commission's draft plastic waste strategy is particularly relevant to agriculture , since the challenges and costs involved in recycling agricultural plastics mean the sector still has much progress to make; calls for a ban on oxo-fragmentable plastic films and advocates the use of bio-sourced and biodegradable materials which meet european requirements on curbing waste and soil pollution in particular;


### 11. calls on the commission to include the tourism sector in its ambitions for a circular economy; emphasises that tourism businesses should be encouraged to participate in the eu ecolabel and the eu eco-management and audit scheme (emas). ### 11. calls on the commission to include the tourism sector in their ambitions for a circular economy , given that most services provided to tourists and hotel guests are highly resource-intensive considering energy , water and raw materials10a; recalls the commission’s 2010 communication on a new political framework for tourism in europe , where a sustainable tourism was envisaged and tourism businesses were called to reduce their use of drinking water , their greenhouse gas emissions and environmental footprint , to use clean energy and in general to use natural resources responsibly; prompts the commission to support member states with the implementation of european environmental legislation and the goals of the new circular economy action plan (ceap) in their national tourism strategies and individual projects; emphasises that tourism businesses should be encouraged to participate in the eu eco-label and the eu eco-management and audit scheme (emas);


### 19. considers it essential to improve communication with healthcare professionals and patients on medicine availability through the use of innovative digital tools providing real-time data on the availability , location , quantity and price of a given medicine , in compliance with data protection legislation; ### 19. highlights that doctors must have access to up-to-date information to be able to adequately respond to arising and existing shortages; early awareness of a supply problem and early identification of therapeutic alternatives may mitigate the possibility of adverse reactions endangering patient safety; considers it essential to improve communication with healthcare professionals and patients on medicine availability through the use of innovative digital tools providing real-time data on the availability , location , quantity and price of a given medicine , in compliance with data protection legislation;


### 6. urges the commission and the member states to introduce tax and financial incentives in return for appropriate commitments and to authorise state aid to encourage producers to locate their operations in europe , from compound manufacturing to packaging and distribution; emphasises the strategic significance of this sector and the importance of investing in european companies , in the interests of resource diversification; ### 6. urges the commission and the member states to put in place restrictions for medicines produced under bad labour circumstances and environmental standards , from compound manufacturing to packaging and distribution; emphasises the strategic significance and importance of heavily investing in european based companies , in return for binding commitments regarding issues such as transparency , traceability , accessibility and affordability of manufacture and distribution across the entire medical supply chain to ensure medicines are equally available across all regions at a fair price;


### 6. urges the commission and the member states to introduce tax and financial incentives in return for appropriate commitments and to authorise state aid to encourage producers to locate their operations in europe , from compound manufacturing to packaging and distribution; emphasises the strategic significance of this sector and the importance of investing in european companies , in the interests of resource diversification; ### 6. urges the commission and the member states to introduce measures encouraging producers to diversify their sources of supply and locate their operations in europe , while considering the authorisation of state aid to finance public independent healthcare research establishments;


### 6. urges the commission and the member states to introduce tax and financial incentives in return for appropriate commitments and to authorise state aid to encourage producers to locate their operations in europe , from compound manufacturing to packaging and distribution; emphasises the strategic significance of this sector and the importance of investing in european companies , in the interests of resource diversification; ### 6. urges the commission and the member states to introduce tax and financial incentives in return for appropriate commitments and to authorise state aid to encourage producers to locate their operations in europe , from compound manufacturing to packaging and distribution; emphasises the strategic significance of this sector and the importance of investing in european companies in order to diversify resources and encourage the development of innovative production technologies capable of enhancing the responsiveness of production lines , in particular the continuous manufacturing process;


### a. whereas the coronavirus pandemic has exacerbated the growing problem of medicine shortages across the eu; whereas the ensuing disruption of the global supply chain has highlighted the eu’s dependency on third countries for medicines and active pharmaceutical ingredients; ### a. whereas the coronavirus pandemic has illustrated the vulnerabilities of many supply chains as well as the eu’s dependency on third countries for medicines and active pharmaceutical ingredients; whereas the eu’s reliance on imports in this area and the lack of diversification created additional threats to the eu’s capacity to provide a prompt and adequate response to the health emergencies;


### 2. calls on the commission to consider proposing requirements for the pharmaceutical industry to ensure that its supply chain is diversified and put in place a medicine shortage risk mitigation plan to manage any vulnerabilities in and risks to the supply chain; ### 2. calls on the commission to consider proposing changes in the marketing authorisation framework that require the pharmaceutical industry to ensure that its supply chain is diversified , identifying alternatives for each component of the supply chain akin to the principle of n-1 redundancy in electrical grid operation and put in place a mandatory medicine shortage risk mitigation plan to manage any vulnerabilities in and risks to the supply chain and submit these plans to competent authorities; calls on the commission to seek harmonisation and enforcement of such requirements across the union;


### 2. calls on the commission to consider proposing requirements for the pharmaceutical industry to ensure that its supply chain is diversified and put in place a medicine shortage risk mitigation plan to manage any vulnerabilities in and risks to the supply chain; ### 2. calls on the commission to propose requirements for the pharmaceutical industry to ensure that its supply chain is diversified and to put in place a medicine shortage risk mitigation plan to manage and overcome any vulnerability , disruption or bottleneck in the supply chain;


### 3. stresses the urgent need for the eu to reduce its over-reliance on a small number of third countries for medicine manufacturing and as sources of active pharmaceutical ingredients; ### 3. stresses the urgent need for the eu to reduce its over-reliance on a small number of non-eu manufacturers and suppliers of chemical raw and starting materials and active pharmaceutical ingredients (api) and calls for additional safeguards to ensure that materials and ingredients entering the eu market are produced in accordance with adequate social and environmental standards; proposes to include the aforementioned standards into the gmp framework;


### 3. stresses the urgent need for the eu to reduce its over-reliance on a small number of third countries for medicine manufacturing and as sources of active pharmaceutical ingredients; ### 3. stresses the urgent need for the eu to reduce its over-reliance on a small number of third countries for medicine manufacturing and as sources of key starting materials , intermediate materials and active pharmaceutical ingredients;


### 4. encourages the commission to propose measures , including financial incentives , to promote green manufacturing , within the eu , of strategically important chemicals used in medicine production; urges the commission to also propose measures to incentivise the greater inclusion of eu small and medium-sized enterprises in the medicine supply chain given their key role in research and innovation and inherent ability to quickly adapt their production focus , with a view to coping better with unexpected shocks; ### 4. urges the commission to propose measures in its planned pharmaceutical strategy , including financial incentives , to promote green manufacturing , within the eu of strategically important chemicals used in medicine production; calls on member states to review tendering systems in order to reward sustainable , ethical and quality manufacturing; encourages the creation of the active pharmaceutical ingredients alliance to strengthen the global competitiveness of eu manufacturers and facilitate the rebalancing of the value chain towards the eu; urges the commission to also propose measures to incentivise the greater inclusion of eu small and medium-sized enterprises in the medicine supply chain given their key role in research and innovation and inherent ability to quickly adapt their production focus , with a view to coping better with unexpected shocks;


### 4. encourages the commission to propose measures , including financial incentives , to promote green manufacturing , within the eu , of strategically important chemicals used in medicine production; urges the commission to also propose measures to incentivise the greater inclusion of eu small and medium-sized enterprises in the medicine supply chain given their key role in research and innovation and inherent ability to quickly adapt their production focus , with a view to coping better with unexpected shocks; ### 4. encourages the commission to propose measures , including financial incentives , to promote green manufacturing , within the eu , of medicines and of strategically important chemicals used in medicine production; urges the commission to also propose measures to incentivise the greater inclusion of eu small and medium-sized enterprises in the medicine supply chain given their key role in research and innovation and inherent ability to quickly adapt their production focus , with a view to coping better with unexpected shocks;


### 5. highlights the fact that horizon 2020 has already financed a significant number of health-related research and innovation activities; calls for more funding to be provided through horizon europe to create and support medicine-focused research ecosystems. ### 5. highlights the fact that horizon 2020 has already financed a significant number of health-related research and innovation activities; underlines that the funding of coronavirus-related research should not affect other health priorities of horizon 2020; calls for making funding conditional on ensuring wide availability and affordability of r&d products vital in health emergencies , including the possibility to require non- exclusive licensing; calls for more funding to be provided through horizon europe to create and support medicine-focused research ecosystems;


### 1. welcomes this agreement with the us on the allocation of a share in the trq for high-quality beef as a solution to a longstanding trade dispute , as it sets a positive example of a negotiated solution between the eu and the us; ### 1. takes note of this agreement with the us on the allocation of a share in the trq for high-quality beef as a solution to a longstanding trade dispute , as it sets a positive example of a negotiated solution between the eu and the us;


### 2. welcomes and acknowledges the fact that , while it remains unclear whether any compensation has been foreseen , other wto members that export beef to the eu agreed to support this agreement by accepting that the vast majority of the quota would be allocated to the us; ### 2. welcomes and acknowledges the fact that other wto members that export beef to the eu agreed to support this agreement by accepting that the vast majority of the quota would be allocated to the us; expects the eu not to compensate these countries during the ongoing negotiations of trade agreements whether in the form of tariff and/or quotas preferences;


### 3. notes that the agreement does not affect current levels of market access for beef to the eu market; ### 3. notes that the agreement does not affect current levels of market access for beef to the eu market; warns against utilising agriculture as an adjustment variable to trade deals and to appease economic partners;


### 4. stresses the importance of finding negotiated solutions , such as this agreement , to dilute trade tensions between the eu and the us; ### 4. stresses the importance of finding negotiated solutions , such as this agreement , to dilute trade tensions between the eu and the us; stresses the importance that each partner shows its willingness to diffuse tensions and to reach balanced deals; considers that the formal notification by the united states of its withdrawal of the paris agreement on november 4 2019 do not contribute to an appeasement of relations;


### 7. calls on the us to revoke the additional tariffs on steel and aluminium , and olives , and to withdraw its threat to impose additional tariffs on cars and car parts; ### 7. calls on the us to revoke the additional tariffs on steel and aluminium , and olives , and to withdraw its threat to impose additional tariffs on cars and car parts; underlines that the full revocation of the threat to impose additional tariffs on cars and car parts at the date imposed by the us president for a final decision , i.e. mid november , is the condition for the european parliament to agree on proceeding with the ratification;


### — having regard to the treaty on european union (teu) , and in particular title v thereof on the union’s external action , ### — having regard to the treaty on european union (teu) , and in particular title v thereof on the union’s external action and specifically article 21 ,


### 2. welcomes the use of the transparency rules of the united nations commission on international trade law (uncitral) for dispute settlement , but underlines that the use of substantive provisions of foreign investment protection , in particular the principles of ‘indirect expropriation’ and of ‘fair and equitable treatment’ , does not weaken the parties’ right to regulate and pursue legitimate public policy objectives , such as public health , safety and environmental protection; insists on regular monitoring and reporting back to the european parliament on the use of this provision by european investors; ### 2. takes note of the use of the transparency rules of the united nations commission on international trade law (uncitral) for dispute settlement , but underlines that the use of substantive provisions of foreign investment protection , in particular the principles of ‘indirect expropriation’ and of ‘fair and equitable treatment’ , weaken the parties’ right to regulate and pursue legitimate public policy objectives , such as public health , safety and environmental protection; insists on regular monitoring and reporting back to the european parliament on the use of this provision by european investors;


### 3. notes that protections afforded to investors could possibly outpace the development of investor responsibilities as the eu-vietnam investment protection agreement (ipa) guarantees enforceable rights to foreign investors through the arbitration clause , but does not provide a sanction mechanism for non-compliance with social and environmental standards; reiterates the need to ensure a fair balance of investors’ rights and duties , in terms of corporate , social and environmental standards , in the ipa; underlines in this regard the importance of establishing an independent monitoring and complaint mechanism that can be seized by affected populations and that has the authority to make binding rulings with regard to the negative impact that trade and investment agreements may have. ### 3. notes that protections afforded to investors are outpacing the development of investor responsibilities as the eu-vietnam investment protection agreement (ipa) guarantees enforceable rights to foreign investors through the arbitration clause , but does not provide a sanction mechanism for non-compliance with social and environmental standards; reiterates the need to ensure a fair balance of investors’ rights and duties , in terms of corporate , social and environmental standards , in the ipa; underlines in this regard the importance of establishing an independent monitoring and complaint mechanism that can be seized by affected populations and that has the authority to make binding rulings with regard to the negative impact that trade and investment agreements may have , including through sanctions; further calls on the eu and vietnam to take a leading role in addressing this at multilateral level through active participation in negotiations at the un for a legally binding instrument to regulate , in international human rights law , the activities of transnational corporations and other business enterprises , which ensures access to justice for victims of human rights violations and provide mechanisms for redress and accountability for the communities affected.


### 1. gives its consent to the conclusion of the agreement; ### 1. withholds its consent until the investment protection agreement is completed by the addition of an independent monitoring mechanism as well as a grievance mechanism;


### the committee on foreign affairs calls on the committee on international trade , as the committee responsible , to recommend approval of the draft council decision on the conclusion , on behalf of the union , of the investment protection agreement between the european union and its member states , of the one part , and the socialist republic of viet nam , of the other part. ### the committee on foreign affairs calls on the committee on international trade , as the committee responsible , to recommend to postpone its decision on the consent procedure in respect of the draft council decision on the conclusion , on behalf of the union , of the investment protection agreement between the european union and its member states , of the one part , and the socialist republic of viet nam , of the other part until the conditions set out in the accompanying resolution are met.


### the committee on development calls on the committee on international trade , as the committee responsible , to recommend that parliament give its consent to the proposal for the investment protection agreement between the european union and its member states , of the one part , and the socialist republic of viet nam , of the other part. ### the committee on development calls on the committee on international trade , as the committee responsible , to recommend that parliament reject the draft council decision on the conclusion , on behalf of the union , of the investment protection agreement between the european union and its member states , of the one part , and the socialist republic of viet nam , of the other part.


### – having regard to the decision of the european ombudsman of 26 february 2016 in case 1409/2014/mhz on the european commission’s failure to carry out a prior human rights impact assessment of the eu-vietnam fta7 , ### – having regard to the decision of the european ombudsman of 26 february 2016 in case 1409/2014/mhz on the european commission’s failure to carry out a prior human rights impact assessment of the eu-vietnam fta7 and concluding that this failure is a case a maladministration ,


### 1. welcomes the inclusion of a comprehensive and binding chapter on trade and sustainable development (tsd) with explicit references to multilateral environmental agreements , the paris agreement and the 2030 agenda for sustainable development; ### 1. welcomes the inclusion of a comprehensive and binding chapter on trade and sustainable development (tsd) with explicit references to multilateral environmental agreements , the paris agreement and the 2030 agenda for sustainable development; deplores , however , that the chapter on sustainable development is explicitly excluded from the state to state dispute settlement mechanism which provides for a suspension of trade preferences; underlines the importance of mandatory and enforceable provisions in the chapter on trade and sustainable development to contribute effectively to the strengthening of labour rights and environmental standards , including corporate responsibility;


### 2. urges the commission to earmark specific funding for civil society organisations , such as the domestic advisory groups (dags) , in order to fulfil the key objectives of the tsd chapter , which include an increased monitoring of commitments , the development of action plans for areas where concerns have been identified , and the triggering of dispute settlement processes in the event that action plans have not been respected; ### 2. urges the commission to earmark specific funding for civil society organisations , such as the domestic advisory groups (dags) , in order to fulfil the key objectives of the tsd chapter , which include an increased monitoring of commitments , the development of action plans for areas where concerns have been identified , and the triggering of dispute settlement processes in the event that action plans have not been respected; regrets that the mandate of the dags is limited to monitoring the tsd chapter only; regrets that the promotion of gender equality and women empowerment is not prominently mentioned in the fta;


### 3. congratulates viet nam on ratifying six of the ilo’s eight fundamental conventions , namely no 29 on forced labour , nos 100 and 111 on nondiscrimination , nos 138 and 182 on child labour and , most recently , no 98 on the right to organise and collective bargaining; urges the vietnamese government to quickly ratify outstanding convention no 105 on forced labour and no 87 on the freedom of association , and highlights the crucial importance of ensuring that all of these conventions are fully implemented; ### 3. congratulates , as a first step , viet nam on ratifying six of the ilo’s eight fundamental conventions , namely no 29 on forced labour , nos 100 and 111 on nondiscrimination , nos 138 and 182 on child labour and , most recently , no 98 on the right to organise and collective bargaining; urges the vietnamese government to quickly ratify outstanding convention no 105 on forced labour and no 87 on the freedom of association , and highlights the crucial importance of ensuring that all of these conventions are fully implemented into its legal system , prior to european parliament ratification of the fta; urges equally the vietnamese government to secure tangible improvements on human rights , i.e. by releasing all imprisoned human rights defenders and by repealing penal code provisions that criminalise free speech and association prior to ratification; more broadly , urges for the creation of an effective remedy and compensation mechanism for cases of human rights violations in the evfta;


### 4. welcomes viet nam’s commitment to revise and quickly ratify its labour code , highlighting the importance of the promotion and practical enforcement of gender equality and female empowerment; reiterates that gender inequality should no longer be seen as a purely social issue , but as an economic one that presents a key challenge to attaining inclusive and sustainable growth; calls on the commission to monitor developments closely and to keep parliament regularly updated on the situation. ### 4. welcomes viet nam’s commitment to revise and quickly ratify its labour code , which shall allow effectively the formation of independent trade unions; highlight the importance of the promotion and practical enforcement of gender equality and female empowerment; reiterates that gender inequality should no longer be seen as a purely social issue , but as an economic one that presents a key challenge to attaining inclusive and sustainable growth; calls on the commission to monitor developments closely and to keep parliament regularly updated on the situation.


### 1. gives its consent to the conclusion of the agreement; ### 1. withholds its consent to the conclusion of the agreement until the following conditions could deem to be fulfilled after an evaluation carried out by the commission in liaison with un and ilo experts and presented to the european parliament:


### the committee on foreign affairs calls on the committee on international trade , as the committee responsible , to recommend approval of the draft council decision on the conclusion of the free trade agreement between the european union and the socialist republic of viet nam. ### the committee on foreign affairs calls on the committee on international trade , as the committee responsible , to recommend to postpone its decision on the consent procedure in respect of the draft council decision on the conclusion of the free trade agreement between the european union and the socialist republic of viet nam until the conditions set out in the accompanying resolution are met.


### the committee on development calls on the committee on international trade , as the committee responsible , to recommend that parliament give its consent to the proposal for conclusion of the free trade agreement between the european union and the socialist republic of viet nam (inta/8/14829); (2018/0356(nle)). ### the committee on development calls on the committee on international trade , as the committee responsible , to recommend that parliament reject the draft council decision on the conclusion of the free trade agreement between the european union and the socialist republic of viet nam.


### 1. emphasises that a global level playing field in a rules-based multilateral trading system is key for european companies , including smes , to boost growth , ensure a stable and predictable environment and retain their competitiveness , as well as to secure existing jobs and create new ones in the eu , since an increasing number of jobs are dependent on global value chains; ### 1. emphasises that an international level playing field in a rules-based multilateral trading system is key for europe , including european companies , in particular smes , as well as european workers and consumers. this is why a policy of reciprocity should contribute to boosting sustainable economic development and ensuring a safe and healthy environment , according to the eu’s international obligations , and pursuing enhanced competitiveness on the basis of sustainability , as well as securing social stability and the preservation and new creation of decent jobs. in this context , stresses the need for increased transparency , sustainability and corporate accountability in global value chains in order to contribute to level the playing field and facilitate upward convergence on standards , and calls on the eu to establish a legal framework for mandatory due diligence in global value chains as a necessary step to achieve this;


### 2. underlines that smes play a vital role in international trade , accounting for an estimated 30 % of the eu’s goods exports to the rest of the world1 ; recalls that , in order to help smes cope with the greater challenges of entering new markets and enable them to compete on their own merits , eu trade and competition policy should contribute to an sme-friendly trade environment; ### 2. underlines that smes play a vital role in international trade , accounting for an estimated 30 % of the eu’s goods exports to the rest of the world1 ; recalls that , in order to help smes cope with the greater challenges of entering new markets and enable them to compete on their own merits , eu trade and competition policy should contribute to an sme-friendly trade environment; calls on the commission to modernize the eu sme definition in particular by including qualitative criteria such as the linkage between ownership , management and control.


### 3. calls on the commission to ensure that eu competition policy promotes fair competition and reciprocal trading conditions at eu and global level with the further aim of strengthening our own industry in the eu; calls , therefore , for unfair trading practices to be addressed effectively by making full use of the available instruments , developing new , effective tools and tackling the distortive effects of foreign state ownership and subsidies in the internal market , in particular where eu funding is involved; welcomes , against this backdrop , the new commission’s intention to strengthen the foreign direct investment screening mechanism , and calls for discussions on the eu’s international procurement instrument to be resumed; ### 3. calls on the commission to ensure that eu competition policy promotes fair competition and reciprocal trading conditions at eu and global level with the further aim of strengthening the eu industry's efforts to contribute to innovation and to a just transition towards a climate neutral eu economy in line with the paris commitments and targets; reiterates its call for the commission and member states to adopt reinforced trade defence instruments to combat unfair commercial practices , taking into account social and environmental dumping; calls , therefore , for unfair trading practices to be addressed effectively by making full use of the available instruments , developing new , effective tools and tackling the distortive effects of foreign state ownership and subsidies in the internal market , including in the context of the envisioned border adjustment mechanism; welcomes , against this backdrop , the commission’s intention to strengthen the foreign direct investment screening mechanism , as soon as sufficient experience with the present legislation has been collected; calls for the finalization of the eu’s international procurement instrument by 2020; calls for a strengthening of the anti-subsidy instrument by including a subsidy-control mechanism; stresses that eu competition policy needs to be consistent with , and contribute to , the fulfilment of the climate neutrality objective and calls on the commission to remove policy contradictions by reforming the state aid guidelines for environmental protection and energy , especially with regard to climate impact in order to avoid unfair competitive advantages for practices of third country firms.


### a. whereas competition policy must benefit the consumer while defending european businesses , in particular smes , against unfair competition outside europe; ### a. whereas competition policy must benefit consumers while defending european businesses , in particular smes , against unfair competition practices;


### b. whereas competition policy must be tailored to tackle digital , ecological , industrial and social challenges , in line with the objectives of the paris agreement; ### b. whereas competition policy must be adapted to tackle digital , ecological , industrial and social challenges , and must be in line with the eu’s climate commitments and the objectives of the paris agreement; whereas the application of eu competition law should address all market distortions , including those created by negative social and environmental externalities;


### c. whereas a more sustainable and solidarity-based economy is important; ### c. whereas a more sustainable and solidarity-based economy is important; whereas competition policy should contribute to achieve the european union's aims as defined in article 3 tfeu , which are based in particular on the sustainable development goals and a social market economy;


### (5) unitary protection throughout the union for the intellectual property rights related to geographical indications can contribute to incentives for the production of quality products , the wide availability of such products for consumers and the creation of valuable and sustainable jobs including in rural and less-developed regions. in particular in view of the potential of geographical indications to contribute to sustainable and highly skilled jobs in rural and less developed regions , producers should aim at creating a substantial proportion of the value of the product designated by a geographical indication within the defined geographical area. ### (5) unitary protection throughout the union for the intellectual property rights related to geographical indications can maintain value added and contribute to incentives for the production of quality products , the wide availability of such products for consumers and the creation of valuable and sustainable jobs including better employment opportunities for women and young people , that can hardly be outsourced , especially in rural and less-developed regions. in particular in view of the potential of geographical indications to contribute to sustainable and highly skilled jobs in rural and less developed regions , producers should aim at creating a substantial proportion of the value of the product designated by a geographical indication within the defined geographical area. such trend should directly contribute to the economic development of less developed regions by reviving local industry and promoting tourism and ultimately , decrease eu dependence from global markets and positively support the eu recovery from the current cost-of-living crisis produced by russia's unprovoked and unjustified military aggression against ukraine.


### (5) unitary protection throughout the union for the intellectual property rights related to geographical indications can contribute to incentives for the production of quality products , the wide availability of such products for consumers and the creation of valuable and sustainable jobs including in rural and less-developed regions. in particular in view of the potential of geographical indications to contribute to sustainable and highly skilled jobs in rural and less developed regions , producers should aim at creating a substantial proportion of the value of the product designated by a geographical indication within the defined geographical area. ### (5) unitary protection throughout the union for the intellectual property rights related to geographical indications can contribute to incentives for the production of quality products , the wide availability of such products for consumers and the creation of valuable and sustainable jobs , with decent work conditions , including in rural and less-developed regions. in particular in view of the potential of geographical indications to contribute to sustainable and highly skilled jobs in rural and less developed regions , producers should aim at creating a substantial proportion of the value of the product designated by a geographical indication within the defined geographical area.


### (7) making geographically linked products is often based on local know-how and follows local production methods that are rooted in the cultural and social heritage of the home region of such products. efficient intellectual property protection has the potential to contribute to increased profitability and attractiveness of the traditional craft professions. specific geographical indication protection is acknowledged so as to safeguard and develop cultural heritage both in the agricultural and the craft and industrial areas. efficient procedures should be established for the registration of union geographical indications protecting the names of craft and industrial products , which take into account regional and local specificities. the geographical indication system for craft and industrial products should ensure that the production and marketing traditions are maintained and enhanced. ### (7) making geographically linked products is often based on local know-how and follows local production methods rooted in the cultural , social , religious and ethnic heritage of the home region of such products. efficient intellectual property protection has the potential to contribute to increased profitability , attractiveness , preservation and promotion of the traditional craft professions specific geographical indication protection is acknowledged to safeguard and develop cultural heritage both in the agricultural and craft and industrial areas. establishing efficient procedures for the registration of union geographical indications within the internal market and in the international intellectual property registries and global databases is essential , to protect the names of craft and industrial products , which account for regional and local specificities. the geographical indication system for craft and industrial products should ensure that the production and marketing traditions are maintained and enhanced.


### (17) it is possible for certain member states to obtain a derogation from the member states’ obligation to designate a national authority in respect of geographical indications for craft and industrial products to take charge of the procedures for registration , national opposition , amendments to the product specification and cancellation of the registration under certain circumstances specified in this regulation. that derogation , that should take the form of a commission decision , takes into account the fact that certain member states do not have a specific national system for the management of geographical indications for craft and industrial products and that the local interest in these countries to protect these geographical indications is minimal. under these circumstances , it would not be justified to oblige the respective member state to set up an infrastructure , employ the necessary personnel and purchase facilities for the management of these geographical indications. it is more effective and economical to provide an alternative procedure for the producer groups from these member states to protect their products by a geographical indication. the “direct registration procedure” has cost advantages reaped by member states. pursuant to this derogation , procedures for registration , amendments to the product specification and cancellation should be managed directly by the office. in this regard the office should receive the effective assistance of the administrative authorities of that member state when required by the office , through designation of a contact point , as regards in particular aspects related to the examination of the application. in those cases , the office should be entitled to charge a registration fee , considering that this procedure generates more work for the office than the management of union applications. however , the application of the “direct registration procedure” should not exempt member states from the obligation to designate a competent authority for the controls and enforcement and to take the necessary actions to enforce the rights set out in this regulation. the competent authority maintained or designated for the management of the geographical indications and the competent authority designated for the controls and enforcement may differ , when a member state so decides. ### (17) it is possible for member states to opt-out from their obligation to designate a national authority in respect of geographical indications for craft and industrial products to take charge of the procedures for registration , national opposition , amendments to the product specification and cancellation of the registration. that derogation can also take into account the fact that certain member states do not have a specific national system for the management of geographical indications for craft and industrial products and that the local interest in these countries to protect these geographical indications is minimal. under these circumstances , it would not be justified to oblige the respective member state to set up an infrastructure , employ the necessary personnel and purchase facilities for the management of these geographical indications. it is more effective and economical to provide an alternative procedure for the producer groups from these member states to protect their products by a geographical indication. the “direct registration procedure” has cost advantages reaped by member states. pursuant to this derogation , procedures for registration , amendments to the product specification and cancellation should be managed directly by the office. in this regard the office should receive the effective assistance of the administrative authorities of that member state when required by the office , through designation of a contact point , as regards in particular aspects related to the examination of the application. in those cases , the office should be entitled to charge a registration fee , considering that this procedure generates more work for the office than the management of union applications. however , the application of the “direct registration procedure” should not exempt member states from the obligation to designate a competent authority for the controls and enforcement and to take the necessary actions to enforce the rights set out in this regulation. the competent authority maintained or designated for the management of the geographical indications and the competent authority designated for the controls and enforcement may differ , when a member state so decides.


### (18) the commission , after reviewing the information provided by the member state , should adopt a commission decision establishing the right of the member state to opt for the exceptional direct registration procedure. accordingly , the commission should retain the right to modify and withdraw a decision allowing a member state to opt for the “direct registration procedure” , should the conditions not be met by the member state concerned. this is , for example , the case should the number of direct applications submitted by applicants from that member state exceed the original number estimated by that member state in a recurrent manner over time. ### deleted


### (22) to ensure transparency and uniformity across member states , it is necessary to establish and maintain an electronic union register of geographical indications for craft and industrial products. the register should be an electronic database stored within an information system , and should be accessible to the public. the union register of geographical indications for craft and industrial products should be developed , kept and maintained by the office and also the personnel for its operation should be provided by the office. ### (22) to ensure transparency and uniformity across member states , it is necessary to establish and maintain an electronic union register of geographical indications for craft and industrial products. the register should be an electronic database stored within an information system , and should be easily accessible to the public in machine-readable , commonly used formats. the union register of geographical indications for craft and industrial products should be developed , kept and maintained by the office and also the personnel for its operation should be provided by the office. the register of geographical indications for craft and industrial products should be included in the database already administered by the office aggregating all geographical indications registered in the eu and at international level.


### (27) it is necessary to establish an advisory board , which is a pool of experts , composed of representatives from member states and the commission. the purpose of the advisory board is to provide the necessary local knowledge and expertise concerning certain products and knowledge about the local circumstances that may influence the outcome of the procedures laid down in this regulation. in order to support the office on its assessment of individual applications at any stage of the examination , opposition , appeal or other procedures with specific technical knowledge , the geographical indications division or the boards of appeal , at its own initiative or at the request of the commission , should have the possibility to consult the advisory board. the consultation , when necessary , should also include a general opinion on assessing quality criteria , establishing reputation and renown , determining generic nature of a name , and assessing fair competition in commercial transactions and the risk of confusing consumers. the opinion of the advisory board should not be binding. the appointment procedure of the experts and the operation of the advisory board should be specified in the rules of procedure of the advisory board approved by the management board. ### (27) it is necessary to establish an advisory board , which is a pool of experts , composed of representatives from member states and the commission. the purpose of the advisory board is to provide the necessary local knowledge and expertise concerning certain products and knowledge about the local circumstances that may influence the outcome of the procedures laid down in this regulation. in order to support the office on its assessment of individual applications at any stage of the examination , opposition , appeal or other procedures with specific technical knowledge , the geographical indications division or the boards of appeal , at its own initiative or at the request of the commission , should have the possibility to consult the advisory board. the consultation , when necessary , should also include a general opinion on assessing quality criteria , establishing reputation and renown , determining generic nature of a name , and assessing fair competition in commercial transactions and the risk of confusing consumers. the opinion of the advisory board should not be binding. the advisory board should also include experts in the field of the product category concerned , including from academia. the appointment procedure of the experts and the operation of the advisory board should be specified in the rules of procedure of the advisory board approved by the management board.


### (33) the relationship between internet domain names and geographical indications should be clarified as regards the scope of the application of the remedy measures , the recognition of geographical indications in dispute resolution , and the fair use of domain names. persons having a legitimate interest in a registered geographical indication should be empowered to request for the revocation or the transfer of the domain name in case the conflicting domain name has been registered by its holder without rights or legitimate interest in the geographical indication or if it has been registered or is being used in bad faith and its use contravenes the protection of a geographical indication. alternative dispute resolution procedures should not prejudice the possibility of bringing domain name disputes before a national court. ### (33) the relationship between internet domain names and geographical indications should be clarified as regards the scope of the application of the remedy measures , the recognition of geographical indications in dispute resolution , and the fair use of domain names. the holders of a registered geographical indication or a producer group having a legitimate interest in it should be empowered to request for the revocation or the transfer of the domain name in case the conflicting domain name has been registered by its holder without rights or legitimate interest in the geographical indication or if it has been registered or is being used in bad faith and its use contravenes the protection of a geographical indication. alternative dispute resolution procedures should not prejudice the possibility of bringing domain name disputes before a national court. in case of conflicts on domain names with non-eu country-codes , or with eu country codes concerning non-eu geographical indications , the dispute settlement should be conducted by euipo in cooperation with the international dispute settlement systems already in place , such as the ones managed by wipo and icann.


### (40) the added value of geographical indications is based on consumer trust. such trust can only be well-founded if the registration of geographical indications is accompanied by effective verification and controls , including the producer’s due diligence. ### (40) the added value of geographical indications is based on consumer trust. such trust can only be well-founded if the registration of geographical indications is accompanied by effective verification and controls , including the producer’s due diligence. citizens and consumers should expect that any geographical indication count with robust verification and control systems , regardless of whether the products originate from the eu or a third country.


### 1. by way of derogation from article 11 , the commission shall be empowered to exempt a member state from the obligation to designate a competent authority in accordance with article 11(1) and to handle the management of the applications of geographical indications for craft and industrial products at national level , if the member state , by 6 months from the date of entry into force of this regulation , provides the commission with evidence that shows that the following conditions are met: ### 1. by way of derogation from article 11 , a member state may opt-out from the obligation to designate a competent authority in accordance with article 11(1) and to handle the management of the applications of geographical indications for craft and industrial products at national level , if the member state , by 6 months from the date of entry into force of this regulation , informs the commission about its opt-out with evidence that shows that the following conditions are met:


### 2. the commission may request further information from the member state before adopting a commission decision on the derogation referred in paragraph 1. ### 2. the commission may request further information from the member state on the derogation referred in paragraph 1.


### 5. if the number of direct applications submitted by applicants from a member state that has opted out substantially exceeds the estimate given in the assessment submitted by the member state pursuant to paragraph 1 , the commission may withdraw its decision referred to in paragraph 2. ### deleted


### 1. a publicly accessible electronic union register of geographical indications for craft and industrial products shall be developed , kept and maintained by the office for the management of geographical indications for craft and industrial products. ### 1. an electronic union register of geographical indications for craft and industrial products shall be made easily accessible to the public , in machine-readable , commonly used formats. it shall be developed , kept and maintained by the office for the management of geographical indications for craft and industrial products.


### the class of the product; ### the type of the product;


### 7. the office shall retain documentation related to the registration of a geographical indication in digital or paper form for the period of validity of the geographical indication , and in case of cancellation for 10 years thereafter. ### 7. the office shall retain documentation related to the registration of a geographical indication in digital or paper form for the period of validity of the geographical indication , and in case of cancellation for maximum 5 years thereafter.


### 1. the office shall ensure that any person is able to download an official extract from the union register of geographical indications for craft and industrial products that provides proof of registration of the geographical indication , and the relevant data including the date of application for the registration of the geographical indication or other priority date. the official extract may be used as an authentic certificate in legal proceedings , in a court of law , in a court of arbitration or similar body. ### 1. the office shall ensure that any person is able to easily download , in a machine-readable , commonly used format , an official extract from the union register of geographical indications for craft and industrial products that provides proof of registration of the geographical indication , and the relevant data including the date of application for the registration of the geographical indication or other priority date. the official extract may be used as an authentic certificate in legal proceedings , in a court of law , in a court of arbitration or similar body.


### where no product has been placed on the market under the geographical indication for at least a consecutive period of 7 years. ### where no product has been placed on the market under the geographical indication for at least a consecutive period of 5 years.


### 5. the advisory board shall be composed of one representative of each member state and one representatives of the commission and their respective alternates. ### 5. the advisory board shall be composed of one representative of each member state , one representative of the commission , their respective alternates and independent experts in the field of the product category concerned , including from academia , as well as representatives of regional or local authorities , where appropriate.


### any misuse , imitation or evocation , even if the true origin of the products or services is indicated or if the protected geographical indication is translated or accompanied by an expression such as ‘style’ , ‘type’ , ‘method’ , ‘as produced in’ , ‘imitation’ , ‘flavour’ , ‘like’ or similar; ### any misuse , imitation or misleading evocation , even if the true origin of the products or services is indicated or if the protected geographical indication is translated or accompanied by an expression such as ‘style’ , ‘type’ , ‘method’ , ‘as produced in’ , ‘imitation’ , ‘flavour’ , ‘like’ or similar;


### 3. paragraph 1 shall also apply to a domain name containing or consisting of the registered geographical indication. ### 3. paragraph 1 shall also apply to a domain name containing or consisting of the registered geographical indication within the limits of article 41.


### 1. member states shall verify that the producer group operates in a transparent and democratic manner and that all producers of the product designated by the geographical indication enjoy right of membership in the group. member states may provide that public officials , and other stakeholders such as consumer groups , retailers and suppliers , also participate in the work of the producer group. ### 1. member states shall regularly verify that the producer group operates in a transparent and democratic manner and that all producers of the product designated by the geographical indication enjoy right of membership in the group. member states may provide that public officials , and other stakeholders such as consumer groups , retailers and suppliers , also participate in the work of the producer group.


### 1. country-code top-level domain name registries established in the union may , upon request of a natural or legal person having a legitimate interest or rights , revoke or transfer a domain name registered under such country-code top-level domain to the producer group of the products with the geographical indication concerned , following an appropriate alternative-dispute-resolution procedure or judicial procedure , if such domain name has been registered by its holder without rights or legitimate interest in the geographical indication or if it has been registered or is being used in bad faith and its use contravenes article 35. ### 1. country-code top-level domain name registries established in the union may , upon request of a natural or legal person being the rights-holder of a geographical indication or being mandated by a producer group having a legitimate interest in a protected geographical indication , revoke or transfer a domain name registered under such country-code top-level domain to the producer group of the products with the geographical indication concerned , following an appropriate alternative-dispute-resolution procedure or judicial procedure , if such domain name has been registered by its holder without rights or legitimate interest in the geographical indication or if it has been registered or is being used in bad faith and its use contravenes article 35.


### 2. in the case of craft and industrial products originating in the union that are marketed under a geographical indication , the union symbol referred to in paragraph 1 may appear on the labelling and advertising material. the geographical indication shall be in the same field of vision as the union symbol. ### 2. in the case of craft and industrial products originating in the union that are marketed under a geographical indication , the union symbol referred to in paragraph 1 shall appear on the labelling and advertising material or communication materials. the geographical indication shall be in the same field of vision as the union symbol.


### 2. the enforcement authority shall carry out controls , based on a risk analysis and notifications of interested producers of products designated by geographical indications , to ensure conformity with the product specification or the single document or an equivalent to the latter. ### 2. the enforcement authority shall regularly carry out controls , based on a risk analysis and notifications of interested producers of products designated by geographical indications , to ensure conformity with the product specification or the single document or an equivalent to the latter.


### (iii) is to be impartial and free from any conflict of interest and in particular is not to be in a situation which may , directly or indirectly , affect the impartiality of its professional conduct as regards the performance of those official control tasks delegated to it; and ### (iii) is to be impartial and free from any conflict of interest and in particular is not to be in a situation which may , directly or indirectly , affect the impartiality of their professional conduct as regards the performance of those official control tasks delegated to them; and


### 3. the office may establish a digital portal where the names and addresses of the competent authorities and delegated product certification bodies including natural persons referred to in paragraphs 1 and 2 are made public. ### 3. the office shall establish a digital portal where the names and addresses of the competent authorities and delegated product certification bodies including natural persons referred to in paragraphs 1 and 2 are made public.


### 4. geographical indications concerning products from third countries that are protected in the union under an international agreement to which the union is a contracting party shall be entered in the union register of geographical indications for craft and industrial products. geographical indications other than those protected in the union pursuant to article 7 regulation eu 2019/5713 shall be registered by means of implementing acts adopted by the commission in accordance with the examination procedure referred to in article 65(2). ### 4. geographical indications concerning products from third countries that are protected in the union under an international agreement to which the union is a contracting party shall be entered in the union register of geographical indications for craft and industrial products. geographical indications other than those protected in the union pursuant to article 7 regulation eu 2019/1753 shall be registered by means of implementing acts adopted by the commission in accordance with the examination procedure referred to in article 65(2).


### 6. the commission shall make public and regularly update both the list of the international agreements referred to in paragraph 2 and the list of geographical indications protected under those agreements. ### 6. the commission shall make public and regularly update both the list of the international agreements referred to in paragraph 2 and the list of geographical indications protected under those agreements.


### 5. following an examination of admissibility of the appeal , the boards of appeal shall decide on the appeal. the boards of appeal shall either exercise any power within the competence of the geographical indications division which was responsible for the decision appealed or remit the case to that geographical indication division for further prosecution. the boards of appeal may , on its own initiative or upon the written , reasoned request of a party , consult the advisory board as referred to in article 33. the office may offer mediation services pursuant to article 170 of regulation (eu) 2017/1001 , with a view of assisting the parties reach an amicable settlement. ### 5. following an examination of admissibility of the appeal , the boards of appeal shall decide on the appeal. the boards of appeal shall either exercise any power within the competence of the geographical indications division which was responsible for the decision appealed or remit the case to that geographical indication division for further prosecution. the boards of appeal may , on its own initiative or upon the written , reasoned request of a party , consult the advisory board as referred to in article 33. the office may offer alternative dispute resolution , like mediation services pursuant to article 170 of regulation (eu) 2017/1001 , with a view of assisting the parties reach an amicable settlement.


### trade marks ### pre-existing trade marks


### the delegated product certification body: ### the delegated product certification body or the tasked natural person:


### is to have the expertise , equipment and infrastructure required to perform the official control tasks delegated to it; ### is to have the expertise , equipment and infrastructure required to perform the official control tasks delegated to them , including for company accounting;


### (iv) is to have sufficient powers to perform the official control tasks delegated to it; and ### (iv) is to have sufficient powers to perform the official control tasks delegated to them; and


### where the official control task are delegated to natural persons , those natural persons: ### deleted


### cattle ### ex 0102 live cattle


### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems18. furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans. ### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems18. furthermore , deforestation and forest degradation reduce essential carbon sinks. deforestation , forest degradation and the conversion and degradation of other ecosystems also increase contacts between wild animals and farmed animals and humans , thereby increasing the likelihood of new diseases spreading and the risks of new epidemics and pandemics.


### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems.18 furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans. ### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , regulate and help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention and recharge. large forest areas act as a moisture source and help prevent desertification of continental regions. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems.18 furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans.


### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems.18 furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans. ### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems. 18indigenous peoples inhabit and manage many forested territories globally , and 80% of the earth’s biodiversity is located on indigenous peoples’ territories. deforestation is significantly lower in territories where indigenous peoples are in control of their own lands , as compared to territories managed by governments or other entities. the recognition and respect of indigenous peoples’ land rights should be the primary tool to prevent deforestation. furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans.


### (1) forests provide a broad variety of environmental , economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on forest ecosystems.18 furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans. ### (1) natural forests in particular provide a broad variety of environmental benefit. furthermore , forests provide economic and social benefits , including timber and non-wood forest products and environmental services essential for humankind , as they harbour most of the earth’s terrestrial biodiversity. they maintain ecosystem functions , help protect the climate system , provide clean air and play a vital role for the purification of waters and soils as well as for water retention. in addition , forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people , including indigenous peoples and local communities who heavily depend on well-preserved and well-functioning forest ecosystems.18 furthermore , deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans.


### (3) deforestation and forest degradation contribute to the global climate crisis in multiple ways. most importantly , they increase greenhouse gas emissions through associated forest fires , permanently removing carbon sink capacities , decreasing climate change resilience of the affected area and substantially reducing its biodiversity. deforestation alone accounts for 11 % of greenhouse gas emissions20 . ### (3) deforestation , natural ecosystem conversion , ecosystem and forest degradation contribute to the global climate crisis in multiple ways. most importantly , they increase greenhouse gas emissions through associated forest fires , permanently removing carbon sink capacities , decreasing climate change resilience of the affected area and substantially reducing its biodiversity. deforestation alone accounts for 11 % of greenhouse gas emissions20 .


### (3) deforestation and forest degradation contribute to the global climate crisis in multiple ways. most importantly , they increase greenhouse gas emissions through associated forest fires , permanently removing carbon sink capacities , decreasing climate change resilience of the affected area and substantially reducing its biodiversity. deforestation alone accounts for 11 % of greenhouse gas emissions20 . ### (3) deforestation , natural ecosystem conversion , ecosystem and forest degradation contribute to the global climate crisis in multiple ways. most importantly , they increase greenhouse gas emissions through associated forest fires , permanently removing carbon sink capacities , decreasing climate change resilience of the affected area and substantially reducing its biodiversity. deforestation alone accounts for 11 % of greenhouse gas emissions 20 .


### (4) climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change , they are inextricably linked , as recent studies have confirmed. biodiversity helps mitigate climate change. insects , birds and mammals act as pollinators , seed dispersers and can help store carbon more efficiently , directly or indirectly. forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities , including indigenous peoples. drastically reducing deforestation and forest degradation and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation. ### (4) climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change , they are inextricably linked , as recent studies have confirmed. biodiversity helps mitigate climate change. insects , birds and mammals act as pollinators , seed dispersers and can help store carbon more efficiently , directly or indirectly. forests and other ecosystems also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities , including indigenous peoples. drastically reducing deforestation , forest degradation and the conversion and degradation of other ecosystems and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation.


### (4) climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change , they are inextricably linked , as recent studies have confirmed. biodiversity helps mitigate climate change. insects , birds and mammals act as pollinators , seed dispersers and can help store carbon more efficiently , directly or indirectly. forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities , including indigenous peoples. drastically reducing deforestation and forest degradation and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation. ### (4) climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change , they are inextricably linked , as recent studies have confirmed. biodiversity helps mitigate climate change. insects , birds and mammals act as pollinators , seed dispersers and can help store carbon more efficiently , directly or indirectly. forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities , including indigenous peoples. drastically reducing deforestation natural ecosystem conversion , natural ecosystem and forest degradation and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation.


### (4) climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change , they are inextricably linked , as recent studies have confirmed. biodiversity helps mitigate climate change. insects , birds and mammals act as pollinators , seed dispersers and can help store carbon more efficiently , directly or indirectly. forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities , including indigenous peoples. drastically reducing deforestation and forest degradation and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation. ### (4) climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change , they are inextricably linked , as recent studies have confirmed. biodiversity helps mitigate climate change. insects , birds and mammals act as pollinators , seed dispersers and can help store carbon more efficiently , directly or indirectly. forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities , including indigenous peoples. drastically reducing deforestation natural ecosystem conversion , ecosystem and forest degradation and systemically restoring forests and other ecosystems is an opportunity for climate mitigation.


### (7) union consumption is a considerable driver of deforestation and forest degradation on a global scale. the initiative’s impact assessment estimated that without an appropriate regulatory intervention eu consumption and production of the six commodities included in the scope (wood , cattle , soy , palm oil , cocoa and coffee) will rise to approximately 248 ,000 hectares of deforestation annually by 2030. ### (7) union consumption is a considerable driver of deforestation and forest degradation on a global scale. the initiative’s impact assessment estimated that without an appropriate regulatory intervention eu consumption and production of the six commodities included in the scope (wood , cattle , soy , palm oil , cocoa and coffee) are predicted based on current trends , earth observation , modelling and peer-reviewed scientific consensus to rise to approximately 248 ,000 hectares of deforestation annually by 2030.


### (21) the commission should continue to work in partnership with producer countries , and more generally in cooperation with international organisations and bodies , and should be reinforcing its support and incentives with regard to protecting forests and transition to deforestation-free production , acknowledging the role of indigenous people , improving governance and land tenure , increasing law enforcement and promoting sustainable forest management , climate-resilient agriculture , sustainable intensification and diversification , agro-ecology and agroforestry. in doing so it should acknowledge the role of indigenous people in protecting forests. building upon the experience and lessons learned in the context of the already existing initiatives , the union and the member states should work in partnership with producer countries , upon their request , to exploit the multi-functionalities of forest , support them in the transition to sustainable forest management , and address global challenges while meeting local needs and paying attention to the challenges faced by smallholders in line with the communication to stepping up action to protect and restore the world’s forests. the partnership approach should help producer countries in protecting , restoring and sustainably using forest , hence contributing to the objective of this regulation to reduce deforestation and forest degradation. ### (21) the commission should continue to work in partnership with producer countries , and more generally in cooperation with international organisations and bodies , and should be reinforcing its support and incentives with regard to protecting forests and transition to deforestation-free production , acknowledging the role of indigenous people by pushing for and supporting the recognition of their collective land ownership rights as enshrined in ilo convention 169 and the un declaration on the rights of indigenous peoples (undrip) and ensuring that their free , prior and informed consent (fpic) is obtained prior to any project in their territories , improving governance and land tenure , increasing law enforcement and promoting sustainable forest management , climate-resilient agriculture , sustainable intensification and diversification , agro-ecology and agroforestry. in doing so it should acknowledge the role of indigenous people in protecting forests , ensure that any such project does not encroach on or lead to the land grab of indigenous peoples’ territories , and take active steps to support their work in protecting their forests against illegal logging.


### (22) another important action announced in the communication is the establishment of the eu observatory on deforestation , forest degradation , changes in the world’s forest cover and associated drivers (“eu observatory”) launched by the commission in order to better monitor changes in the world’s forest cover and related drivers. moreover , building on already existing monitoring tools , including copernicus products , the eu observatory will facilitate access to information on supply chains for public entities , consumers and business , providing easy-to-understand data and information linking deforestation , forest degradation , and changes in the world’s forest cover to eu demand/trade for commodities and products. the eu observatory will thus directly support the implementation of this regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. the eu observatory will cooperate closely with relevant international organisations , research institutes , and third countries. ### (22) another important action announced in the communication is the establishment of the eu observatory on deforestation , forest degradation , changes in the world’s forest cover and associated drivers (“eu observatory”) launched by the commission in order to better monitor changes in the world’s forest cover and related drivers. moreover , building on already existing monitoring tools , including copernicus products , the eu observatory will facilitate access to information on supply chains for public entities , consumers and business , providing easy-to-understand data and information linking deforestation , forest degradation , and changes in the world’s forest cover to eu demand/trade for commodities and products. the eu observatory will thus directly support the implementation of this regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. the eu should also examine how to integrate land rights monitoring into the eu observatory. the eu observatory will cooperate closely with relevant international organisations , research institutes , non-governmental organisations and third countries.


### (22) another important action announced in the communication is the establishment of the eu observatory on deforestation , forest degradation , changes in the world’s forest cover and associated drivers (“eu observatory”) launched by the commission in order to better monitor changes in the world’s forest cover and related drivers. moreover , building on already existing monitoring tools , including copernicus products , the eu observatory will facilitate access to information on supply chains for public entities , consumers and business , providing easy-to-understand data and information linking deforestation , forest degradation , and changes in the world’s forest cover to eu demand/trade for commodities and products. the eu observatory will thus directly support the implementation of this regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. the eu observatory will cooperate closely with relevant international organisations , research institutes , and third countries. ### (22) another important action announced in the communication is the establishment of the eu observatory on deforestation , forest degradation , changes in the world’s forest cover and associated drivers (“eu observatory”) launched by the commission in order to better monitor changes in the world’s forest cover and related drivers. moreover , building on already existing monitoring tools , including copernicus products , the eu observatory will facilitate access to information on supply chains for public entities , consumers and business , providing easy-to-understand data and information linking deforestation , forest degradation , and changes in the world’s forest cover to eu demand/trade for commodities and products. the eu observatory will thus directly support the implementation of this regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. the eu shall also examine how to integrate the monitoring of indigenous land rights recognition into the eu observatory. the eu observatory will cooperate closely with relevant international organisations , research institutes , non-governmental organizations and third countries.


### (22) another important action announced in the communication is the establishment of the eu observatory on deforestation , forest degradation , changes in the world’s forest cover and associated drivers (“eu observatory”) launched by the commission in order to better monitor changes in the world’s forest cover and related drivers. moreover , building on already existing monitoring tools , including copernicus products , the eu observatory will facilitate access to information on supply chains for public entities , consumers and business , providing easy-to-understand data and information linking deforestation , forest degradation , and changes in the world’s forest cover to eu demand/trade for commodities and products. the eu observatory will thus directly support the implementation of this regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. the eu observatory will cooperate closely with relevant international organisations , research institutes , and third countries. ### (22) another important action announced in the communication is the establishment of the eu observatory on deforestation , forest degradation , changes in the world’s forest cover and associated drivers (“eu observatory”) launched by the commission in order to better monitor changes in the world’s forest cover and related drivers. moreover , building on already existing monitoring tools , including copernicus products , the eu observatory will facilitate access to information on supply chains for public entities , consumers and business , providing easy-to-understand data and information linking deforestation , forest degradation , and changes in the world’s forest cover to eu demand/trade for commodities and products. the eu observatory will thus directly support the implementation of this regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. the eu should also examine how to integrate land rights monitoring into the eu observatory. the eu observatory will cooperate closely with relevant international organisations , research institutes , non-governmental organisations and third countries


### (29) obligations concerning relevant commodities and products should be laid down by this regulation in order to effectively combat deforestation , forest degradation , and to promote deforestation-free supply chains. ### (29) obligations concerning relevant commodities and products should be laid down by this regulation in order to effectively combat deforestation and conversion of natural ecosystems , forest and ecosystems degradation , and to promote deforestation-free supply chains as well as ensure the protection of human rights recognised under international law , in particular under treaties and other instruments ratified or endorsed by the country of production.


### (29) obligations concerning relevant commodities and products should be laid down by this regulation in order to effectively combat deforestation , forest degradation , and to promote deforestation-free supply chains. ### (29) obligations concerning relevant commodities and products should be laid down by this regulation in order to effectively combat deforestation and conversion of natural ecosystems , forest and ecosystems degradation , and to promote deforestation-free supply chains as well as ensure the protection of human rights recognised under international law , in particular under treaties and other instruments ratified or endorsed by the country of production


### (32) to strengthen the union’s contribution to halting deforestation and forest degradation , and to ensure that commodities and products from supply chains related to deforestation and forest degradation are not placed on the union market , relevant commodities and products should not be placed or made available on the union market , nor exported from the union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production. to confirm that this is the case , they should always be accompanied by a due diligence statement. ### (32) to strengthen the union’s contribution to halting deforestation , conversion of natural ecosystems and forest and ecosystems degradation , and to ensure that commodities and products from supply chains related to deforestation , conversion of natural ecosystems and forest and ecosystems degradation are not placed on the union market , relevant commodities and products should not be placed or made available on the union market , nor exported from the union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production and comply with international standards in the field of human rights to prevent any violation of those. to confirm that this is the case , they should always be accompanied by a due diligence statement.


### (32) to strengthen the union’s contribution to halting deforestation and forest degradation , and to ensure that commodities and products from supply chains related to deforestation and forest degradation are not placed on the union market , relevant commodities and products should not be placed or made available on the union market , nor exported from the union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production. to confirm that this is the case , they should always be accompanied by a due diligence statement. ### (32) to strengthen the union’s contribution to halting deforestation , conversion of natural ecosystems and forest and ecosystems degradation , and to ensure that commodities and products from supply chains related to deforestation , conversion of natural ecosystems and forest and ecosystems degradation are not placed on the union market , relevant commodities and products should not be placed or made available on the union market , nor exported from the union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production and comply with international standards in the field of human rights to prevent any violation of those. to confirm that this is the case , they should always be accompanied by a due diligence statement , in order to prevent access to the eu market for products with a high risk of deforestation , conversion or ecosystem degradation.