20.

Stresses that, for an FTA to be truly advantageous to the EU’s economy, the following aspects should be included in the negotiating directives: (a) liberalisation of trade in goods and services and real market access opportunities for both sides in each other’s goods and services market through the elimination of unnecessary regulatory barriers, while ensuring that nothing in the agreement prevents either side from regulating, in a proportionate manner, with a view to achieving legitimate policy objectives; this agreement must (i) not prevent the parties from defining, regulating, providing and supporting services in the general interest and must include explicit provisions thereon; (ii) neither require governments to privatise any service nor preclude governments from expanding the range of services they supply to the public; (iii) not prevent governments from bringing back under public control services that governments have previously chosen to privatise such as water, education, health and social services, or decrease the high health, food, consumer, environmental, labour and safety standards in the EU or limit public funding of the arts and culture, education, health and social services as has been the case with previous trade agreements; commitments should be made on the basis of the General Agreement on Trade in Services (GATS); highlights in this respect that the standards required of European producers must be preserved; (b) as far as the agreement may include a domestic regulation chapter, the negotiators must not include necessity tests; (c) commitments on anti-dumping and countervailing measures that go beyond WTO rules in this area, possibly excluding their application where sufficient common competition standards and cooperation are in place; (d) reducing unnecessary non-tariff barriers and strengthening and extending regulatory cooperation dialogues on a voluntary basis, wherever practicable and mutually beneficial, while not limiting the ability of each party to carry out its regulatory, legislative and policy activities, given that regulatory cooperation must aim to benefit the governance of the global economy through intensified convergence and cooperation on international standards and regulatory harmonisation, for example, through the adoption and implementation of the standards set by the UN Economic Commission for Europe (UNECE), while guaranteeing the highest level of consumer (e.g. food safety), environmental (e.g. animal health and welfare, plant health), social and labour protection; (e) significant concessions on public procurement at all levels of government, including state-owned enterprises and undertakings with special or exclusive rights guaranteeing market access for European companies in strategic sectors and the same degree of openness as that of the EU’s public procurement markets, given that simplified procedures and transparency for bidders, including those from other countries, can also be effective tools for preventing corruption and fostering integrity in public administration while providing value for money to taxpayers, in terms of the quality of delivery, efficiency, effectiveness and accountability; guarantees that ecological and social criteria are applied in awarding public procurement contracts; (f) a separate chapter taking into account the needs and interests of micro-enterprises and SMEs with regard to market access facilitation issues including, but not limited to, increased compatibility of technical standards, and streamlined customs procedures with the aim of generating concrete business opportunities and fostering their internationalisation; (g) in view of CJEU Opinion 2/15 on the EU-Singapore FTA that trade and sustainable development fall within the EU’s exclusive competence and that sustainable development forms an integral part of the EU’s common commercial policy, a robust and ambitious sustainable development chapter is an indispensable part of any potential agreement; provisions for effective tools for dialogue, monitoring and cooperation, including binding and enforceable provisions which are subject to suitable and effective dispute settlement mechanisms, and consider, among various enforcement methods, a sanctions-based mechanism, while enabling social partners and civil society to participate appropriately, as well as close cooperation with experts from relevant multilateral organisations; provisions in the chapter covering the labour and environmental aspects of trade and the relevance of sustainable development in a trade and investment context, encompassing provisions that promote adherence to, and effective implementation of, relevant internationally agreed principles and rules, such as core labour standards, the four ILO priority governance conventions and multilateral environmental agreements, including those related to climate change; (h) the requirement that the parties must promote corporate social responsibility (CSR), including with regard to internationally recognised instruments, and the uptake of sectoral OECD guidelines and the UN Guiding Principles on Business and Human Rights; (i) comprehensive provisions on investment liberalisation within the Union’s competence taking into account recent policy developments, for example, CJEU Opinion 2/15 on the EU-Singapore FTA of 16 May 2017; (j) strong and enforceable measures covering the recognition and protection of intellectual property rights, including geographical indications (GIs) for wines and spirits and other agricultural and foodstuff products; simplified customs procedures and simple and flexible rules of origin that are suitable for a complex world of global value chains (GVCs), including in terms of enhancing transparency and accountability within them, and applying wherever possible multilateral rules of origin or in other cases non-burdensome rules of origin such as a ‘change of tariff subheading’; (k) a balanced and ambitious outcome in the agriculture and fisheries chapters which can only boost competitiveness and be beneficial to both consumers and producers, if it gives due consideration to the interests of all European producers and consumers, respecting the fact that there are a number of sensitive agricultural products which should be given appropriate treatment, for example, through tariff-rate quotas or allocated adequate transition periods, taking into proper consideration the cumulative impact of trade agreements on agriculture and potentially excluding from the scope of the negotiations the most sensitive sectors; the inclusion of a usable, effective, suitable and quick bilateral safeguard clause enabling the temporary suspension of preferences, if, as a result of the entry into force of the trade agreement, a rise in imports causes or threatens to cause serious injuries to sensitive sectors; (l) ambitious provisions allowing for the full functioning of the digital ecosystem, and promoting cross-border data flows, including principles such as fair competition and ambitious rules for cross-border data transfers, in full compliance with, and without prejudice to, the EU’s current and future data protection and privacy rules, given that data flows are crucial drivers of the services economy and are an essential element of the GVC of traditional manufacturing companies, and therefore unjustified localisation requirements should be curbed as much as possible; data protection and privacy are not a trade barrier but fundamental rights, enshrined in Article 39 TEU and Articles 7 and 8 of the Charter of Fundamental Rights of the European Union; (m) specific, unambiguous provisions on the treatment accorded to overseas countries and territories (OCTs) and the outermost regions (ORs) so as to ensure that due account is paid to their particular interests in the negotiations;