COMMISSION STAFF WORKING DOCUMENT Accompanying the document Report from the Commission to the European Council Trade and Investment Barriers Report 2012
Date: 2012-02-21
Institutions: European Commission
Subjects: China, European undertaking, India, Japan, Mercosur, Russia, United States, common commercial policy, foreign trade, international market, investment abroad, market access

EUROPEAN COMMISSION 

Brussels, 21.2.2012  
SWD(2012) 19 final 

COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

Report from the Commission to the European Council 

Trade and Investment Barriers Report 2012 

{COM(2012) 70 final} 

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COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

Report from the Commission to the European Council 

Trade and Investment Barriers Report 2012 

TIBR 2011 barriers 

Country/barrier 

Progress/ latest 
developments/state of 
play 

Actions taken 
in 2011 

Next high 
level events 
(also in 2012) 

Next 
technical/working 
level events (also 
in 2012) 

CHINA 

China - Indigenous 
Innovation 

China - Investment 
Catalogue 

At HED/3 of December 
2010, China indicated 
that foreign and domestic 
products will be treated 
equally and laws and 
regulations will be 
amended accordingly. 
President Hu in January 
2011 also committed that 
there will not be any link 
between procurement 
and the origin of IP. In 
June 2011, the Ministry 
of Finance (MOF) 
adopted a notice on 
Abolishing 3 National 
Indigenous Innovation-
related Policies. At the 
recent US-China JCCT of 
November 2011, China 
furthermore indicated that 
the State Council had 
issued legislation 
mandating provincial 
governments to eliminate 
all catalogues linking 
government procurement 
to innovation policies by 
1 December 2011.  

A draft Catalogue was 
issued on 1 April with no 
significant improvements. 
COM sent comments 
towards the end of April. 
The Catalogue was 
finally adopted on 24 
December 2011. 

EU-China 
Summit 15-14 
February 
(tbc); HED 
(March 2012, 
tbc) 

Trade and 
Investment Policy 
Dialogue (Feb 
2012 tbc). China's 
4th Trade Policy 
Review in WTO 
(June 2012). 

Economic and 
Trade Working 
Group (May); 
Joint 
Committee 
(July); meeting 
between Head 
of EU 
Delegation and 
Vice Minister 
of Finance mid 
October. 
Raised during 
China's 
Transitional 
Review 
Mechanism in 
WTO 
(October-
November). 

EU-China 
Summit 15-14 
February 
(tbc); HED 
(March 2012, 
tbc) 

Trade and 
Investment Policy 
Dialogue (Feb 
2012 tbc). China's 
4th Trade Policy 
Review in WTO 
(June 2012). 

EU Delegation 
sent comments 
to the draft in 
April; the issue 
was raised at 
the Economic 
and Trade 
Working Group 
(May); raised 
also at a 
meeting at 

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Director 
General/Vice 
Ministers level 
29 June; 
raised at the 
Joint 
Committee 
(July). Raised 
during China's 
Transitional 
Review 
Mechanism in 
WTO 
(October-
November).  

Economic and 
Trade Working 
Group (May); 
meeting at 
Director 
General/Vice 
Minister level 
29 June; Joint 
Committee 
(July). Raised 
during China's 
Transitional 
Review 
Mechanism in 
WTO 
(October-
November). 

EU-China 
Summit 15-14 
February 
(tbc); HED 
(March 2012, 
tbc) 

Trade and 
Investment Policy 
Dialogue (Feb 
2012 tbc). China's 
4th Trade Policy 
Review in WTO 
(June 2012). 

China - Raw Materials  Final WTO panel report 
was issued on 5 July on 
China - Measures related 
to the exportation of 
various raw materials 
(DS 394, 395, 398). The 
report is very positive for 
the EU since it clarified 
that export restrictions, 
as applied by China on a 
number of raw materials, 
are inconsistent with 
China's obligations under 
WTO law. The Panel 
found in particular that 
China's export duties 
imposed on nine raw 
materials were 
inconsistent with its 
obligations under the 
Accession Protocol. The 
Panel also found that 
China cannot revert to 
Art. XX GATT 1994 to 
defend these duties. 
Secondly, China's export 
quotas restricting access 
to certain raw materials 
would violate Art. XI:1 
GATT 1994, with its 
general prohibition 
against quantitative 
export restrictions and 
would not be justifiable 
for reasons of shortage of 
essential products (Art. 
XI:2(a) GATT 1994) and 
of 
environmental/exhaustion 
concerns (Art. XX(b) and 
(g) GATT). Thirdly, 
conditions imposed by 
China for the allocation of 
export quotas violate its 
obligations under the 

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China - ICT security 

WTO accession protocol 
and certain aspects of its 
export licensing regime 
are in breach of Art. XI:1 
GATT 1994. Finally, 
China imposing a 
minimum export price 
requirement on exporters 
of certain raw materials 
would violate the 
"general elimination of 
quantitative restrictions" 
provision contained in 
Art. XI:1 GATT 1994. 
China is now expected to 
bring its export regime in 
line with international 
rules. China appealed to 
the Panel's decision and, 
on 30 January 2012, the 
WTO Appellate Body 
confirmed the illegality of 
the Chinese quotas and 
export duties.  

Contacts with OSCCA in 
November 2010 and April 
2011 hinted that the 
commercial encryption 
regulation would be 
revised by 2011 and that 
EU industry concerns will 
be taken into account. 
Now the adoption of the 
revised regulation is to be 
expected rather for 2012. 
In the meantime, the 
Multi-level Protection 
Scheme is becoming a 
more serious concern for 
the industry. The China 
Information security 
Standardisation 
Technical Working Group 
also issued 6 draft 
standards for IT 
appliances in July 2011. 
While soliciting 
comments was a positive 
development per se, the 
drafts unfortunately 
confirmed intentions to 
apply the fundamental - 
and discriminatory - 
provisions of the 
commercial encryption 
regulation and the MLPS. 

ETWG (May); 
Joint 
Committee 
(July); DG 
ENTR 
Dialogue on 
Conformity 
Assessment 
(May). TBT 
Committee 
March, June 
and 
November; 
COM 
comments on 
the draft 
standards 
August 2011. 
Raised during 
China's 
Transitional 
Review 
Mechanism in 
WTO 
(October-
November). 

EU-China 
Summit 15-14 
February 
(tbc); HED 
(March 2012, 
tbc) 

Trade and 
Investment Policy 
Dialogue (Feb 
2012 tbc). China's 
4th Trade Policy 
Review in WTO 
(June 2012). 

INDIA 

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India - security 
measures for telecom 
equipment 

India - export 
restrictions on cotton 

After action at the highest 
political level, including 
by President Barroso, in 
December 2010, a new 
text adopted eliminating 
the most problematic 
provisions that have been 
put forward in 2010 
(escrow of source codes 
and other sensitive 
information, obligation for 
technology transfer and 
lack of cap on the 
amount of penalties in 
case of security breach). 
However, there are still 
some issues of concern. 
As of 1 April 2013 all 
security components 
have to be tested in 
India. Moreover, there is 
the possibly of far-
reaching official 
inspections in the supply 
chain which should be 
restricted to a minimum 
possible (software, 
hardware, design and 
development should not 
be subject to inspection 
arrangements). Finally, 
the new rules still include 
the requirement to 
replace foreign resident 
employees by "trained 
Indian nationals". 
Nevertheless, industry 
confirmed (MAAC of 
June 2011) that the new 
provisions solve the most 
worrying issues. 

Quota for cotton yarn 
was discontinued as of 1 
April 2011; Export tax on 
raw cotton and cotton 
waste was revoked in 
September 2011. 

EU-India 
Summit 10 
February 
2012. 

Contacts continue 
in the framework 
of FTA 
negotiations.  

The issue was 
raised in the 
TBT-
Committee in 
March 2011. 
EU-India 
TBT/SPS 
Working Group 
on 7 July 2011 
and EU-India 
Sub-
Commission 
on Trade on 12 
July 2011. 

The issue was 
raised on 
many different 
occasions 
including at 
Director 
General level. 
The EU 
Delegation in 
Delhi had 
several 
meetings with 
the relevant 
ministries. The 
issue was also 
raised tat the 
EU-India Sub 
Commission 

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EU-India 
Summit 10 
February 
2012. 

Next rounds of 
FTA negotiations. 

EU-India 
Summit 10 
February 
2012. 

India - Investment 
restrictions 

India - SPS (poultry, 
pork, fruits and 
vegetables) 

on Trade 12 
July 2011.  

The issue is 
being dealt 
with in the 
framework of 
FTA 
negotiations. 
Raised in the 
context of India 
Trade Policy 
Review in 
WTO 
(September). 

The 
Commission 
together with 
the EU 
delegation kept 
on pushing for 
these 
longstanding 
SPS barriers 
with India. The 
barrier related 
to avian 
influenza 
continued to 
be flagged in 
the WTO SPS 
Committee and 
the other 
issues were 
continued to 
be raised at 
bilateral level. 
Our concerns 
have been 
expressed in 
writing and 
repeated 
during several 

India's investment policy 
continues to hinder 
foreign investments. 
Many important 
economic sectors such 
as multi-brand retail, 
insurance, banking and 
financial services, legal 
services and 
accountancy still remain 
closed to foreign 
investment. India is 
considering steps to open 
up certain sectors such 
as insurance, but the 
outcome is still uncertain. 
In the meantime, draft 
legislation on allowing 
foreign investment in 
retail and distribution 
services is going through 
adoption process; but 
investment in multi brand 
retail swiftly put on hold 
sine die due to negative 
political and social 
reaction. 

India Sanitary and 
Phytosanitary (SPS) 
import requirements 
going beyond 
international standards 
without scientific 
justification hinder 
various EU exports, 
mainly bovine semen, pig 
meat, poultry vegetables, 
fruits and timber. In 2011, 
with regard to bovine 
semen, we have seen 
some progress: in March 
2011, India agreed, in 
writing, on several 
suggestions made by EU 
to bring the Indian import 
requirements on bovine 
semen in line with the 
international standards of 
the World Organisation of 
Animal Health (e.g. 
testing requirements for 
diseases such as 
brucellosis, bluetongue, 
trichomonas). Other 
import criteria are still not 

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in line with relevant 
international standards 
and wherefore India has 
not provided its risk 
assessment justifying its 
deviation from the 
international standards. 
Thus to date exports from 
EU to India are still 
unnecessarily hampered. 
India needs to align 
further to international 
standards with a view to 
open the market for all 
EU countries. In the food 
safety area, India 
provided ad-hoc 
guidelines in October 
2011 which facilitated 
trade for several EU's 
agri-food products 
exported to India. 

meetings, 
including the 
EU-India 
TBT/SPS WG 
in July 2011. 
The 
Commission 
continues to 
closely follow-
up on these 
outstanding 
issues. Issues 
were also 
raised in the 
context of India 
Trade Policy 
Review in 
WTO 
(September). 

JAPAN 

Japan - technical 
regulations and 
conformity 
assessment in medical 
devices 

Following regular 
contacts with the Ministry 
of Health, Labour and 
Welfare, "pre-market" 
approval procedures 
applied in Japan for 
medical devices were 
clarified and a small 
improvement in the 
process was achieved for 
certain categories of 
medical devices. In 
particular, on site audits 
required for Class IV 
devices will be performed 
only every two year and 
in the meantime a 
document review will be 
conducted. 

Following 
regular 
contacts with 
the Ministry of 
Health, Labour 
and Welfare, 
"pre-market" 
approval 
procedures 
applied in 
Japan for 
medical 
devices were 
clarified and a 
small 
improvement 
in the process 
was achieved 
for certain 
categories of 
medical 
devices. In 
particular, on 
site audits 
required for 
Class IV 
devices will be 
performed only 
every two 
years and in 
the meantime 
a document 
review will be 
conducted. 

EU-Japan 
Summit 
Spring 2012 
(tbc) 

Regular meetings 
with Japan in the 
context of the 
exploratory talks 
on a possible FTA 
initiated at the 28 
May 2011 Summit. 

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EU-Japan 
Summit 
Spring 2012 
(tbc) 

Issue to be raised 
in the scoping 
exercise for the 
FTA. 

EU-Japan 
Summit 
Spring 2012 
(tbc) 

Issue to be raised 
in the scoping 
exercise for the 
FTA. 

EU-BZ 
Summit 2012 

EU-Brazil Joint 
Committee 2012 

Coordination 
with USTR. 
Regular 
discussions at 
bilateral policy 
dialogues. 

The issue 
continues to be 
raised at all 
levels. 
Progress in the 
field of 
procurement in 
the railway 
sector was 
achieved in the 
context of GPA 
negotiations in 
December 
2011. 
Government 
procurement 
was also 
brought to the 
High Level 
Group. To be 
raised also in 
the context of 
Japan Trade 
Policy Review 
in WTO 
(February). 

The issue was 
raised in the 
Joint 
Committee of 
June 2011.  

Japan - discrimination 
in insurance services 

No progress on the 
discriminatory treatment 
in postal services. 

Japan - government 
procurement 

MERCOSUR 

Brazil - preferential 
margins in 
government 
procurement 

In the framework of the 
Government 
Procurement Agreement 
(GPA) negotiations, 
which were successfully 
concluded in December 
2011, Japan undertook 
the commitment vis-a-vis 
the EU to apply the 
operational safety clause 
in railways procurement 
in a transparent and non 
discriminatory manner. 
This commitment should 
result in a non-
discretionary use of the 
clause, thereby keeping 
procurement in the 
railway sector open to 
foreign operators. 

Brazil's initially temporary 
'Buy Brazilian' law of July 
2010 – which set a very 
high 25% preference 
margin for domestic 
suppliers – was made 
permanent in December 
2010. The preference 
margin was immediately 
applied to the ICT sector 
and is now being 
extended to cover other 
sectors such as health, 
communication and high-
tech equipment following 
the Plano Brasil Maior, 
adopted by President 
Rousseff on 2 August 
2011. 

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EU-BZ 
Summit 2012 

EU-Mercosur FTA 
negotiations, EU-
Argentina and EU-
Brazil Joint 
Committees 2012, 
EU-Brazil Maritime 
dialogue (February 
2012). 

EU-Mercosur FTA 
negotiations, EU-
Argentina and EU-
Brazil Joint 
Committees 2012 

EU-Argentina Joint 
Committee 2012 
and WTO 
framework. 

Brazil/Argentina - 
restrictions in maritime 
transports 

No progress on the issue 
of cargo sharing 
agreement between 
Argentina and Brazil 
limiting opportunities for 
EU shipping companies. 

Brazil/Argentina - 
export restrictions on 
raw materials 

No changes for export 
restrictions on agricultural 
products and hides and 
skins. 

Argentina - non-
automatic import 
licences 

The situation has not 
improved and, between 
February and March 
2011, the government of 
Argentina even extended 
the application of non-
automatic import licenses 
(NALs) to a list of 178 
new tariff lines (8 digit-
level) as to include some 
cars and parts thereof, 
motorcycles, bicycles and 
parts thereof, textiles, 
metallurgical products 
and some electric 
products. As a result, 
NALs by now cover 589 
tariff lines, thereby 
affecting 12.3% of EU 
export to Argentina. In 
the meantime, Argentina 
has shown some limited 
readiness to find 
solutions on a case-by 

The issue was 
raised in the 
EU-Brazil Joint 
Committee of 
June 2011, in 
the follow up 
meeting with 
Argentina on 
the 2010 Joint 
Committee, 
and in the 
context of the 
EU-Mercosur 
negotiations. 
The issue is 
also being 
followed up in 
the context of 
DDA 
negotiations.  

The issue was 
raised in the 
EU-Brazil Joint 
Committee of 
June 2011, in 
the follow up 
meeting with 
Argentina on 
the 2010 Joint 
Committee and 
in the context 
of the EU-
Mercosur 
negotiations.  

The issue was 
raised in the 
follow-up 
meeting to the 
Joint 
Committee of 
2010 and in 
other high-
level meetings. 
Action is also 
undertaken in 
the multilateral 
framework 
(WTO Import 
Licensing 
Committee and 
Committee on 
Trade in 
Goods). 
Alliance 
building with 
other affected 
WTO 
members. 

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Final decision 
on Russia's 
WTO 
accession 
was taken at 
WTO 
Ministerial 16 
December. 
Meeting of 
Commissioner 
Šemeta and 
the Head of 
the Federal 
Customs 
Service of 
Russia 
Belyaninov 
(first quarter 
of 2012). 

Follow-up to the 
activities 
undertaken in 
2011: meetings of 
the EU-Russia 
Working Group on 
Customs Border 
Issues, expert 
groups on 
Authorised 
Economic 
Operators/Risk 
Management and 
Legislative 
Convergence; 
signature of the 
joint statement on 
the Early Warning 
Mechanism in the 
first half of 2012. 

RUSSIA 

Customs issues 

case basis and some 
European companies 
have been able to 
alleviate their problems 
by entering into 
agreements with the 
Argentine government. 

Several 
bilateral 
meetings in 
Brussels and 
Buenos Aires. 
Inclusion in 
FTA 
negotiations. 

Concerns of exporters 
due to the setting up of 
the customs union have 
largely abated and the 
system seems to be 
functioning reasonably, in 
that no further worsening 
of conditions has been 
observed and the 
situation in general 
reveals the same 'usual' 
concerns as before 
(customs documentation, 
arbitrary checks, 
restrictions on customs 
inspection points for 
certain goods, customs 
valuation, congestion). 
Concerns regarding the 
setting up of the customs 
union (CU) have been 
reduced thanks to EU 
seminars with CU 
authorities held in 
February 2011 and 
earlier in June 2010. No 
major issues linked to the 
customs regime as such 
have appeared. 
However, arbitrary 
interpretation of customs 
legislation by the Russian 
authorities continues to 
remain an issue of 
concern. Russia's 
upcoming accession to 
the WTO is expected to 
bring a number of 
improvements, as Russia 
should start applying the 
relevant WTO provisions, 
such as GATT Article VII 
and the WTO Customs 
Valuation Agreement 
(customs valuation). 
Work has also started to 
implement the objectives 
of the EU-Russia 
Strategic Framework for 
Customs Cooperation, 

A Strategic 
Framework for 
EU-Russia 
Customs 
Cooperation 
was agreed by 
in December 
2010. First 
concrete steps 
in terms of 
implementation 
were agreed in 
May 2011, at 
the last 
meeting of the 
EU-Russia 
Working Group 
on Customs 
Border Issues. 
Two expert 
groups on 
Authorised 
Economic 
Operators and 
Legislative 
Convergence 
are scheduled 
to take place in 
Moscow 29-30 
November as a 
follow-up to the 
last meeting of 
the Working 
Group and a 
part of the 
implementation 
of the Strategic 
Framework. 
The EU 
continues to 
raise any such 
issues in 
regular fora 
established 
with Russia, 
including the 
EU-Russia 
Working Group 
on Customs 
Border Issues 

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IPR enforcement 

and the EU-
Russia Trade 
and 
Investment 
Dialogue. In 
the latter case, 
customs 
related issues 
were 
discussed in 
July and 
November 
2011. 

The issue was 
raised during 
the Russian 
government's 
visit in 
February 2011. 
Last IPR 
Dialogue took 
place on 12 
October in 
Moscow.  

aiming to achieve 
maximum trade 
facilitation while enduring 
its security and safety.  

Question of IP regime is 
linked not least to new 
rules in the CU, which 
are being negotiated by 
the parties and to 
Russia's WTO accession. 
Formally, it is the 
enforcement of legislation 
rather than its content 
that poses problems. 
Hence, the EU-RU IP 
dialogue is the most 
appropriate forum to 
raise enforcement and 
other ad hoc issues. 
Russia's WTO accession 
will help address IPR 
problems as Russia will 
be legally bound by the 
TRIPS Agreement. 
However enforcement-
related problems will still 
need to be tackled on 
ongoing basis through 
our IPR dialogue with 
Russia. 

Final decision 
on Russia's 
WTO 
accession to 
be taken at 
WTO 
Ministerial 16 
December 

Regular follow-up 
through the IPR 
dialogue with RU, 
usually once a 
year. Next meeting 
is foreseen for 
Feb/March 2012. 

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The bilateral 
agreement will 
have to be formally 
concluded by the 
Council upon the 
EP consent. 

The issue was 
also raised in 
the EU-Russia 
Summit in 
June 2011. 
Before that, 
the issue was 
raised during 
the Russian 
government's 
visit in 
February 2011. 

Final decision 
on Russia's 
WTO 
accession to 
be taken at 
WTO 
Ministerial 16 
December. 
The bilateral 
agreement on 
The Russian 
investment 
measures 
should be 
signed just 
before the 
Ministerial 
decision in the 
morning of 16 
December. 

Investment - trade-
related investment 
measures in the 
automotive sector 

Compatibility of RU's 
investment policy with 
TRIMs was also 
addressed in the 
negotiations on RU's 
accession to the WTO. 
Recent initiatives in the 
automotive sector 
indicate the worsening of 
the investment climate, 
such as the introduction 
of local content 
requirements and wider 
import substitution 
policies. According to the 
agreed terms of Russia's 
accession, the trade-
related investment 
measures in automotive 
will be exempt from WTO 
rules until 1 July 2018. In 
order to reduce the risk 
that this investment 
regime may lead to 
delocalization from the 
EU during this transitional 
period, the Commission 
has negotiated a bilateral 
agreement with the 
Russian Federation 
which will establish a 
compensation 
mechanism which will 
come into play if exports 
of car parts to Russia fall 
following the introduction 
the Russian measures. 

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Final decision 
on Russia's 
WTO 
accession to 
be taken at 
WTO 
Ministerial 16 
December 

Regular meetings 
on export 
conditions across 
the Customs 
Union with Russia, 
Kazakhstan and 
Belarus are 
conducted by the 
Commission with 
the active 
participation of 
Member States. 

The issue was 
marginally 
raised in the 
EU-Russia 
Summit in 
June 2011, in 
the context of 
Russia's 
abiding by the 
WTO rules 
upon 
accession. 
Before that, 
the issue was 
raised during 
the Russian 
government 
visit in 
February 2011. 

SPS issues 

USA 

Certification for export of 
EU animals and products 
thereof currently takes 
place under conditions 
agreed with Russia, 
which are not yet fully 
aligned with international 
standards. Better 
conditions that would 
benefit trade flows are 
therefore sought. 
Additionally, burden on 
the certification of plant 
products persists due to 
unjustified complications 
caused by the control 
services. Both issues 
depend on RU's 
convergence with 
international standards, 
which Russia should 
comply with also in the 
context of WTO 
accession without any 
transitional periods. This 
requires adequate 
preparations. 
Discussions in 2011 have 
been focussing on the 
WTO accession and CU 
rules in parallel. The 
commitments obtained in 
the WTO accession 
process and listed in the 
Working Party Report 
concern harmonization 
with international 
standards and practices, 
as well as the possibility 
to develop common EU-
Customs Union 
certificates based on 
conditions no less 
favourable than the ones 
existing within Russia, 
proportionality and 
scientific justification. The 
implementation of the 
necessary acts and other 
legislation in conformity 
with WTO/SPS rules 
needs to be closely 
monitored.  

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11th Trade Policy 
Review of the US 
in WTO 
(December 2012). 

USA - Buy 
American/procurement 

US stimulus package 
introduced in response to 
the financial crisis new 
'Buy American' 
requirements. The 
stimulus package was 
discontinued in 
September 2011. 
Nevertheless, the 
tendency in the US 
Congress and 
Administration of tabling 
legislative proposals with 
similar 'Buy American' 
provisions is still there. 
The most recent example 
is the announcement by 
President Obama on 12 
September 2011 of the 
so called "American Jobs 
Act" proposal. Among all 
the measures included, 
the proposal includes 
about $110 billion 
spending on 
infrastructure (ie. school 
modernisation, highway 
restoration, airports, 
railways, etc) which 
would be subject to Buy 
American provisions 
giving a price preference 
to projects made with US 
iron, steel and 
manufactured goods to 
the extent that they do 
not increase the price of 
overall project by more 
than 25%. Waivers could 
be provided on the basis 
of non-availability or 
public interest. Given the 
funding structure, the 
funding under the 
stimulus will be to large 
extent limited to iron, 
steel and manufactured 
goods produced in the 
US At this stage, the 
prospects of any of these 
bills becoming law are 
quite limited, given the 
current political divisions 
in the US Congress. 
Notwithstanding this, any 
Buy American new 
requirements are well 
perceived by the 
Republican majority so 
we are monitoring closely 

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Transatlantic 
Economic 
Council 
(November 
2011) 

US-EU Joint 
Customs 
Cooperation 
Committee (Spring 
2012). 11th Trade 
Policy Review of 
the US in WTO 
(December 2012). 

that new proposals do 
not move ahead in the 
near future.  

USA - 100% scanning  Following several actions 

also from the 
Commission, the US 
Secretary of the 
Department of Homeland 
Security announced they 
would seek the 
postponement of this 
measure, initially 
foreseen for 1 July 2012. 
The Transatlantic 
Economic Council (TEC) 
has in 2010 and 2011 
addressed a number of 
issues relating to secure 
trade, which should help 
the US to postpone the 
entry into force of this 
measure and hopefully 
the Congress to repeal it. 
For example, cooperation 
on supply chain security 
is ongoing and a joint 
statement by US 
Homeland Security 
Secretary Napolitano and 
Commissioners Šemeta, 
Kallas and Malmström 
was made at the World 
Customs' Organisation 
(WCO) Council meeting 
on 23 June 2011. This 
statement provides a 
political framework for 
EU-US cooperation in 
multilateral organizations 
such as WCO, 
International Civil 
Aviation Organisation 
(ICAO), International 

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Maritime Organisation 
(IMO), and the Universal 
Postal Union (UPU). A 
first outcome of this was 
seen at the November 
2011 TEC, when the EU 
and the US completed 
their preparatory work on 
mutual recognition of 
trade partnership 
programs namely the EU 
Authorised Economic 
Operator (AEO) 
programs and the U.S. 
Customs-Trade 
Partnership against 
Terrorism (C-TPAT) 
programs. Once a mutual 
recognition regulation is 
signed, application to 
qualified AEOs and 
CTPAT members may 
begin as early as July 
2012. These initiatives 
are meant to provide an 
alternative to the bill on 
100% scanning in order 
to avoid unnecessary 
costs for exporters while 
taking into account 
security concerns.  

EN 

16 

   EN