establishing the position to be taken on behalf of the European Union within the Council for Trade in Services of the World Trade Organization on the acceptance of preferences notified by WTO Members as regards services and service suppliers of Least-Developed Country other than those described in Article XVI of the GATS

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The proposed Council Decision is the first step of the implementation of the WTO Services Waiver for Least Developed Countries (LDCs). The Services Waiver allows WTO Members to grant unilateral preferences on services to the LDCs and it requires acceptance by the Council for Trade in Services (CTS) of the notified preferences granted with respect to measures other than those described in Article XVI of the GATS (market access). The proposed Council Decision establishes the position to be taken by the Commission on behalf of the Union in the CTS.

The proposed Council Decision does not refer to any treatment the EU itself will grant to LDCs, what would be the next step for the operationalization of the waiver. The intended treatment to be notified to the CTS and accorded to LDCs is currently being prepared along the lines of an approach consulted with the Member States and signalled to WTO Members at a high-level meeting of the CTS on 5 February 2015.

Consistency with existing policy provisions in the policy area and other Union policies

At the Ninth WTO Ministerial Conference in Bali the European Union joined the consensus on the adoption of a Services Waiver for LDCs. The EU is committed to the success of the upcoming Tenth Ministerial Conference of the WTO in Nairobi in December 2015 and to moving decisively forward the Doha Development Round negotiations and the implementation of the Bali outcome package, including the LDC elements. The proposed Council Decision is part of this Bali implementation process.

By supporting the economic advancement of LDCs, the proposed acceptance of preferences notified by other WTO Members will contribute to the achievement of the objectives of the Treaty providing that the EU shall contribute to the harmonious development of the world trade and define and pursue common policies to foster the sustainable development of developing countries. This proposed acceptance will also be conducive to conclude a part of the Doha Development Agenda negotiations on services.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The legal bases for the proposed Council Decision are Articles 91, 100 and the first subparagraph of Article 207(4), in conjunction with Article 218(9) of the Treaty on the functioning of the European Union (TFEU).

Article 218(9) TFEU provides that when an act having legal effects needs to be adopted in a body set up by an international agreement, the Council, on a proposal from the Commission or the High Representative of the Union for Foreign Affairs and Security Policy, shall adopt a decision establishing the position to be adopted on the Union’s behalf with respect to the adoption of this act in this body. The acceptance of preferences notified by other WTO Members falls under this provision as the decision is taken in a body set up by an international agreement (Council for Trade in Services) affecting the rights and obligations of the EU.

The envisaged preferences relate to obligations under the General Agreement on Trade in Services and may concern all service sectors, including transport services. Therefore, the proposed decision falls within the scope of Articles 91, 100 and 207(4), first subparagraph, of the TFEU.

3.BUDGETARY IMPLICATIONS

The proposal has no budgetary implications.

4.OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The approval of the preferential treatment granted to LDCs by other WTO Members does not trigger any implementation process in the EU.

2015/0156 (NLE)