2016 annual activity report.
Date: 2017-09-18
Institutions: Directorate-General for Trade and Economic Security
Subjects: activity report, extra-EU trade, international trade, sustainable development, trade agreement, trade relations, trade statistics

2016
annual activity report

DG TRADE

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IMPORT

Trade

 
 
 
 
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PDF 
Print 

ISBN 978-92-79-66943-9 
ISBN 978-92-79-66944-6 

ISSN 2443-7913 
ISSN 2315-3865 

doi:10.2781/765147 
doi:10.2781/939426 

NG-AD-17-001-EN-N
NG-AD-17-001-EN-C

2016
annual activity report

Trade

CONTENTS

The directorate-general in brief �������������������������������������������������������������5
Executive Summary �������������������������������������������������������������������������������������6
(a) Key results and progress towards the achievement of DG Trade’s general and spe-

cific objectives .......................................................................................................................................................... 6
(b) Key performance indicators ................................................................................................................................... 8
(c) Key conclusions on Financial Management and Internal Control ...................................................... 9
(d) Provision of information to Commissioner Malmström ......................................................................... 9

1�   Key results and progress towards the achievement of 

DG TRADE’s general and specific objectives ��������������������������10
Specific objective 1: Trade negotiations ..............................................................................................................11
Specific objective 2: Effective implementation ................................................................................................16
Specific objective 3: Tackling unfair trade ..........................................................................................................19
Specific objective 4: A sustainable approach to trade .................................................................................21

5

THE DIRECTORATE-GENERAL 
IN BRIEF

Trade’s  mission  is  largely  dependent  on  close 
working  relations  with  its  partners,  both  inside 
and outside the Commission. In playing its role in 
trade policy, DG Trade works very closely with the 
European Parliament and the Council of the Eu-
ropean Union, with other international organisa-
tions such as the WTO and the Organisation for 
Economic Cooperation and Development (OECD), 
and with civil society. Its success draws strongly 
on its close working relationships with the Euro-
pean  External  Action  Service  (EEAS)  and  other 
Commission services.

In order to fulfil its mission DG Trade has two re-
lated, but distinct, operational activities — trade 
policy and trade defence — and is organised into 
eight  directorates.  The  director-general  is  sup-
ported  in  managing  operations  by  two  deputy 
directors-general,  who  bear  overall  responsibil-
ity  for  Directorates  B,  C  and  D,  and  E,  F,  G  and 
H  respectively.  Operational  activities  are  sup-
ported  by  the  Policy  Coordination,  Information 
and Resources Directorate (A), reporting directly 
to  the  director-general.  In  addition,  operational 
directorates also have trade staff posted in the 
delegations, for which DG Trade is the appointing 
authority.

As  demonstrated  through  the  indicators,  DG 
Trade  is  well  managed  and  works  efficiently.  It 
is  operating  today  under  considerable  pressure 
both  at  its  headquarters  and  in  its  delegations 
throughout the world. In a climate of staff reduc-
tions across the Commission, it remains challeng-
ing  to  continue  to  support  the  current  agenda, 
perform outreach and raise public awareness of 
its work, and effectively carry out the increased 
implementation work, in addition to the increas-
ing  workload  from  new  initiatives  launched  in 
2016.

The European Commission’s Directorate-General 
for  Trade  (DG  Trade)  is  in  charge  of  developing 
and  implementing  the  common  trade  policy  of 
the  European  Union  in  accordance  with  the  ob-
jectives  set  out  in  Article  207  of  the  Treaty  on 
the Functioning of the European Union. DG Trade 
supports the EU’s Trade Commissioner in shaping 
a trade environment that is good for EU citizens 
and for EU business and helping world trade and 
development, thereby boosting competitiveness, 
jobs and growth in the process.

DG  Trade  negotiates  bilateral,  plurilateral  and 
multilateral trade agreements, ensures that the 
rules  agreed  are  actually  applied,  and  works 
closely with the World Trade Organisation (WTO) 
and  other  multilateral  institutions.  This  means 
tackling  international  trade  and  customs  barri-
ers,  backed  up  where  needed  by  EU  legislation. 
Trade negotiations cover a wide range of areas, 
for example goods, services, intellectual proper-
ty, investment, government procurement, access 
to energy and raw materials, customs and trade 
facilitation, competition (including subsidies and 
state-owned enterprises), trade and sustainable 
development, investment and regulatory cooper-
ation. DG Trade ensures that businesses can op-
erate fairly in the EU and across the world, and 
makes full use of its powers to tackle unfair com-
petition,  dumping  and  subsidisation.  Success  in 
Europe is inextricably bound up with the success 
of  the  EU’s  trading  partners,  in  both  the  devel-
oped and developing worlds. For this reason, sus-
tainable development and development policy in 
general are central to the overall approach.

While  DG  Trade  does  not  manage  any  specif-
ic  spending  programmes,  in  2016  it  managed 
a  budget  of  about  EUR  21.5  million  (about 
EUR  16.7  million  in  its  operational  budget  and 
about  EUR  4.8  million  in  its  administrative 
budget).  This  budget  has  remained  stable  over 
recent years. At the same time, trade-related ob-
jectives are also embedded in the different finan-
cial programmes managed by other Commission 
departments,  mainly  under  the  heading  of  the 
multiannual financial framework covering the EU 
as a global player (Heading 4).

As  the  EU’s  prime  negotiator  and  guardian  of 
an  effectively  implemented  EU  trade  policy,  DG 

2016 annual activity report6

EXECUTIVE SUMMARY

1  Article 17(1) of the Treaty on 

European Union.

The annual activity report is a management re-
port  from  the  director-general  of  DG  Trade  to 
the  College  of  Commissioners.  Annual  activity 
reports are the main instrument of management 
accountability within the Commission and consti-
tute the basis on which the College takes political 
responsibility  for  the  decisions  it  takes,  as  well 
as for the coordinating, executive and manage-
ment functions it exercises, as laid down in the 
treaties (1).

(a) Key results and progress 
towards the achievement of 
DG Trade’s general and specific 
objectives

2016 was a challenging year for EU’s trade 
policy.  Changes  in  the  geopolitics  both  inside 
and outside the EU’s borders and the opinions of 
rising populism on what and how the EU is nego-
tiating are just a few examples of bumps in the 
road on DG Trade’s way to achieving the DG’s and 
the Commission’s objectives.

DG  Trade  has  sought  —  and  will  contin-
ue — to adapt to the new realities in which 
it shapes trade policy. It listens to interested 
parties through public consultations, civil-socie-
ty  dialogues,  meetings  in  Brussels  and  Member 
States, etc. and it informs the public, through in-
ternet  publications,  of  the  different  steps  of  its 
procedures and negotiations.

Notwithstanding  those  obstacles  2016  was 
a crucial year for trade policy, with some remark-
able achievements.

In  October  2016  the  EU’s  Comprehensive 
Economic and Trade Agreement (CETA) with 
Canada was signed at the EU–Canada Sum-
mit in Brussels. In February 2017 the European 
Parliament approved the deal by a large majority. 
As the EU’s most advanced and progressive trade 
agreement  to  date,  CETA  is  a  landmark  accord 
that sets the benchmark for future agreements. 
It includes the most ambitious chapters on sus-
tainable  development,  labour  and  the  environ-
ment ever agreed upon in bilateral trade agree-
ments.  The  deal  will  benefit  exporters  both  big 
and small, creating opportunities for EU and Ca-
nadian  companies  and  their  employees,  as  well 
as for consumers.

In  addition,  DG  Trade  continued  negotiat-
ing  several  other  free  trade  agreements 
(FTAs), with the aim being to contribute to creat-
ing growth and jobs for EU citizens by increasing 
their opportunities to trade with the world and to 
provide  a  tool  for  the  EU  to  become  a  stronger 
global actor. The Commission brought the Trans-
atlantic Trade and Investment Partnership (TTIP) 
negotiations as far as possible with the Obama 
administration;  negotiations  were  almost  final-
ised with Japan; it continued active negotiations 
with Tunisia; and it started talks with Indonesia, 
the Philippines and Mexico. Discussions with Mer-
cosur were revived in 2016, and the Commission 
recommended in December that the Council start 
negotiations  with  Turkey  to  enhance  EU–Turkey 
bilateral  trade  relations  and  to  modernise  the 
customs  union  between  the  two  parties.  Finally 
the Commission is on its way to recommending 
launching new negotiations with Australia, Chile 
and New Zealand.

New  preferential  trade  agreements  came 
in  place  with  nine  new  trading  partners  in 
2016.  The  deep  and  comprehensive  free  trade 
agreement (DCFTA) that forms part of the asso-
ciation agreement with Ukraine has provisionally 
applied since 1 January 2016. Côte d’Ivoire and 
Ghana  signed  and  ratified  their  stepping-stone 
economic partnership agreements (EPAs), allow-
ing for their provisional application in September 
and December respectively. Following the signa-
ture in June of the EPA with the Southern African 
Development Community (SADC), the agreement 
entered into force in October 2016 in Botswana, 
Lesotho, Mozambique, Namibia, South Africa and 
Swaziland. In addition, in November 2016, Com-
missioner  Malmström  signed  together  with  the 
Slovak Presidency of the Council on behalf of the 
EU  and  representatives  of  Colombia,  Peru  and 
Ecuador, the Protocol of Accession of Ecuador to 
the  EU–Colombia/Peru  Trade  Agreement,  which 
has provisionally applied since 1 January 2017.

On  the  multilateral  track,  DG  Trade  worked 
on  implementing  the  agreements  reached  at 
the  10th  WTO  Ministerial  Conference,  including 
export competition and the Information Technol-
ogy Agreement (ITA-2). This led to the EU imple-
menting the expansion of the initial ITA, remov-
ing customs duties on a wide range of goods in 
July  2016.  On  trade  facilitation,  the  EU  worked 
together  with  other  WTO  members  to  provide 
assistance regarding the ratification and imple-

2016 annual activity report7

mentation of the agreement. This contributed to 
achieving by 22 February 2017 the 110 ratifica-
tions necessary for the agreement to enter into 
force.

In  December  there  was  a  breakthrough  in 
the Council on the long-blocked proposal to 
modernise trade defence rules. Furthermore, 
in  November  the  Commission  presented  a  pro-
posal  for  a  new  method  for  calculating  dump-
ing  on  imports  from  countries  where  there  are 
significant market distortions, in particular where 
the state has a pervasive influence on the econ-
omy. This was a reaction to the expiry of certain 
provisions of China’s WTO accession protocol and 
a changing trading environment.

On  the  legislative  front,  the  Parliament, 
the Council and the Commission agreed on 
a framework to stop the financing of armed 
groups through the trade in conflict miner-
als.  This  measure  sets  out  a  framework  within 
which  EU  companies  will  ensure  that  the  vast 
majority of tin, tantalum, tungsten and gold im-
ported into the EU is sourced responsibly.

The Commission also tabled a recast propos-
al of the regulation on controlling exports of 
dual-use items. The purpose of this proposal is 
to strike a balance between ensuring a high level 
of security and adequate transparency, and main-
taining the competitiveness of EU companies and 
legitimate trade in dual-use items.

2016 annual activity report8

2  A selection of countries is 
shown with which agree-
ments have been in place for 
a certain time. This might be 
complemented in due course 
with more recently concluded 
agreements.

(b) Key performance indicators

In this section the three most relevant key performance indicators (KPIs) identified in DG Trade’s Stra-
tegic plan 2016-2020 are presented.

KPI 1: Preference utilisation rates of EU preferential trade arrangements for the EU and partners’ side

Result indicator 2.1: Preference utilisation rates of EU preferential trade arrangements (2) for the EU and partners’ side

This indicator will show the extent to which operators will be making use of EU preferential arrangements. It will give an indication how well 
these agreements are formulated and how the uptake is handled in the EU Member States and the partner countries.

Source of data: Eurostat and national customs registrations.

Interim milestone
2018

Target  
2020

Preference utilisation EU importers

Latest known result
2015

Baseline 
2012

FTA
Chile
Mexico
South Africa
South Korea
Turkey

Increase of rates

2014
2013
2012
93 % 93 % 94 %
70 % 70 % 62 %
91 % 91 % 88 %
78 % 82 % 85 %
92 % 92 % 93 %

The target is to increase the percentage according 
to recent trends. It is difficult to predict an 
exact percentage at a specific moment in time. 
Ultimately, the desire is of course to have full 
coverage over time as this will have the greatest 
impact on the economy

Preference utilisation EU exporters

Increase of rates

The target is to increase the percentage 
according to recent trends

FTA
Chile
Former Yugoslav 
Republic of 
Macedonia
Montenegro
South Korea
Switzerland
Turkey

2012
79 %

2013
78 %

2014
78 %

90 %

76 %
63 %

79 %

86 % 86 %
66 % 66 %
80 % 80 %
78 %

2015
95 %
52 %
85 %
85 %
93 %

2015
76 %
-
-
68 %
78 %
-

Looking at the latest known results from 2015, it is noticeable that the utilisation rates for Mexico 
and South Africa in particular seem to follow a falling trend, whereas the remaining results are rather 
stable.

KPI 2: Percentage of trade covered by applied bilateral and regional agreements

Result indicator 1.2: Percentage of trade covered by applied bilateral and regional agreements (3)

This indicator will show the extent of the world’s trade covered by EU applied preferential trade and investment agreements and the evolution of 
this coverage.

Source of data: DG Trade/Eurostat.
Baseline 
2013-2015 goods/2012-2014 
services

Interim milestone 
2018

Target  
2020

Latest known result 
2013-2015 goods and services

Imports
24 %

Exports
28 %

Total
26 %

Imports
31 %

Percentage of trade in goods and services
Exports
Exports
62 %
35 %

Imports
54 %

Total
33 %

Total
58 %

Imports
22 %

Exports
25 %

Total
24 %

3 

This indicator does not cover 
multilateral WTO or pluri-
lateral sectoral negotiations 
and agreements.

Although the EU welcomed nine new countries as trade agreement partners in 2016, it will take some 
time before the above indicators show results. This is due to the time lag for latest known results.

2016 annual activity report9

KPI 3: Percentage of fully liberalised trade with the world

Result indicator 1.3: Percentage of fully liberalised imports from the world (i.e. at zero duty (4))

This indicator will show the extent of the EU’s applied preferential treatment for imports and its evolution. The bigger the share, the better the 
economic conditions and opportunities for EU consumers, and the more EU operators using imports as inputs in their businesses.

Source of data: Eurostat.
Baseline  
2015

Interim milestone 
2018

Target  
2020

Latest known result

Merchandise imports 
EU imports from extra-EU countries
70 %

Increase

Increase

69 %

4  Most-favoured-nation duty 
free, Generalised Scheme of 
Preferences duty-free and 
other duty-free.

5  Regulation (EU, Euratom) 
No 966/2012 of the 
European Parliament and of 
the Council of 25 October 
2012 on the financial rules 
applicable to the general 
budget of the Union.

The indicator remains basically at the same level 
as last year. No specific conclusions can be made 
based on such a marginal change.

(c) Key conclusions on Financial 
Management and Internal Control

In accordance with the governance statement of 
the European Commission, the staff of DG Trade 
conduct their operations in compliance with the 
applicable  laws  and  regulations,  working  in  an 
open  and  transparent  manner  and  meeting  the 
expected  high  level  of  professional  and  ethical 
standards.

The  Commission  has  adopted  a  set  of  internal 
control  standards,  based  on  international  good 
practice,  aimed  at  ensuring  the  achievement  of 
policy  and  operational  objectives.  The  financial 
regulation  (5)  requires  that  the  organisational 
structure and the internal control systems used 
for the implementation of the budget be set up in 
accordance with these standards. DG Trade has 
assessed the internal control systems during the 
reporting year and has concluded that the inter-
nal control standards are implemented and func-
tion as intended. Please refer to Section 2.1 for 
further details.

In  addition,  DG  Trade  has  systematically  exam-
ined the available control results and indicators, 
including  those  aimed  to  supervise  entities  to 
which  it  has  entrusted  budget  implementation 
tasks,  along  with  the  observations  and  recom-
mendations  issued  by  internal  auditors  and  the 
European  Court  of  Auditors.  These  elements 
have  been  assessed  to  determine  their  impact 
on the management’s assurance as regards the 
achievement of control objectives. Please refer to 
Section 2.1 for further details.

In  conclusion,  the  management  has  reasonable 
assurance  that,  overall,  suitable  controls  are  in 
place  and  working  as  intended;  risks  are  being 
appropriately  monitored  and  mitigated;  and  the 
necessary improvements and reinforcements are 
being  implemented.  The  director-general,  in  his 
capacity as authorising officer by delegation, has 
signed the declaration of assurance.

(d) Provision of information to 
Commissioner Malmström

In the context of the regular meetings during the 
year  between  the  DG  and  the  commissioner  on 
management matters, the main elements of this 
report and assurance declaration have also been 
brought to the attention of Commissioner Malm-
ström, responsible for trade.

2016 annual activity report10

1.  KEY RESULTS AND PROGRESS 
TOWARDS THE ACHIEVEMENT 
OF DG TRADE’S GENERAL 
AND SPECIFIC OBJECTIVES

6  COM(2015) 497.

As set out in its Strategic plan 2016-2020, DG Trade pursues its DG-specific objectives in context of 
three of the Commission’s general objectives. These specific objectives, together with their link to the 
general objectives are set out in the figure below. DG Trade’s policy actions are also aimed at achiev-
ing the objectives set out in the trade and investment policy strategy communication ‘Trade for all’, 
adopted by the College of Commissioners on 14 October 2015 (6).

1.  
A new boost for jobs, 
growth and investment

6. 
A reasonable and balanced free 
trade agreement with the US

9.  
A stronger global actor

Specific objective 1: Trade negotiations 
Wide coverage of the world's trade through regional, multilateral, plurilateral and bilateral agreements concluded by the 
EU, ensuring the best economic conditions and opportunities for consumers, workers, citizens and enterprises, including 
SMEs, in the EU and in non-EU countries, particularly in developing countries

Specific objective 2: Effective implementation 
Effective implementation of the EU's trade and investment policies secured, amongst others, through proper monitoring, 
enforcement and support

Specific objective 3: 
Tackling unfair trade 
Maintain and improve a 
transparent, efficient and 
effective system to combat 
distortions and unfair trade 
practices in international trade

Specific objective 4:  
A sustainable approach to trade 
Improved sustainable economic, 
social and environmental condi-
tions for consumers, workers, citi-
zens and businesses in the EU and 
in non-EU countries, and a special 
focus on human rights, responsi-
ble management of supply chains 
and good governance

2016 annual activity report7 

8 

9 

http://trade.ec.europa.eu/do-
clib/press/index.cfm?id=1355

http://ec.europa.eu/trade/
policy/in-focus/tisa/

http://trade.ec.europa.eu/
doclib/html/154833.htm

11

Specific objective 1: Trade negotiations

Wide coverage of the world’s trade through regional, multilateral, plurilateral and bilateral 
agreements concluded by the EU, ensuring the best economic conditions and opportunities 
for consumers, workers, citizens and enterprises, including SMEs, in the EU and in non-EU 
countries, particularly in developing countries

Activities and outputs under this specific objective 
contribute to various extents to the Commission’s 
general objectives 1, 6 and 9. DG Trade has been 
strongly  pursuing  its  comprehensive  negotiation 
agenda,  aiming  to  increase  the  coverage  of  the 
trade between the EU and its trading partners with 
preferential  tariffs  and  simplified  regulatory  pro-
cedures  for  the  benefit  of  EU  citizens.  Increasing 
opportunities for exports and imports have proved 
to  boost  the  economy  and  create  jobs  in  the  EU. 
Trade agreements are also an important element 
for the EU as a global actor. Needless to say, the 
TTIP negotiations under this specific objective are 
the main factor in pursuing the Commission’s prior-
ity 6 on a balanced EU–US FTA. However, changes 
in the political scene of the EU’s US counterparts 
are a good example of how the Commission’s ef-
forts are impacted by external factors.

In  terms  of  DG  Trade’s  internal  organisation  to 
support trade negotiations, one important meas-
ure  was  taken  in  2016,  namely  the  setting-up 
of  an  internal  FTA  Coordination  and  Coherence 
Group,  which  is  responsible  for  overseeing  the 
EU’s  trade  agreement  negotiating  agenda  and 
ensuring a more effective and coherent approach 
to negotiations.

The multilateral and plurilateral 
agenda

The  EU  is  actively  engaged  in  many  ongo-
ing  multilateral  and  plurilateral  trade  ini-
tiatives.  During  2016  it  led  efforts  to  ad-
vance  negotiations  in  the  WTO.  The  EU  put 
forward  a  proposal  on  fisheries  subsidies  and 
co-sponsored  submissions  on  ecommerce  and 
domestic regulation. The EU also led discussions 
on  transparency  and  good  regulatory  practices, 
and  on  horizontal  subsidies.  In  2016  DG  Trade 
also  worked  on  implementing  the  agreements 
reached at the 10th WTO Ministerial Conference, 
including  export  competition  and  the  ITA-2.  On 

trade  facilitation,  the  EU  worked  together  with 
other  WTO  members  to  provide  assistance  re-
garding  the  ratification  and  implementation  of 
the agreement. This contributed to achieving, by 
31 December, a total of 103 ratifications out of 
the 110 that are necessary for the agreement to 
enter into force. On 22 February 2017 the agree-
ment entered into force after ratification by the 
110th member.

On  1  July  the  EU  removed  tariffs  on  201 
high-tech  products  to  implement  the  tril-
lion-euro trade deal (7) which was concluded 
in the margins of the WTO Ministerial Con-
ference  with  China,  the  United  States  and 
a  large  majority  of  WTO  members.  Council 
Decision  (EU)  2016/971,  adopted  on  17  June 
2016, and Commission Implementing Regulation 
(EU)  2016/1047,  adopted  on  28  June  2016,  al-
lowed this to happen. The ITA-2 will benefit con-
sumers  and  businesses  alike  by  removing  cus-
toms duties on a wide range of goods, including 
medical  equipment,  video  games  and  consoles, 
home hi-fi systems, headphones, Blu-ray players 
and digital video recorders, semi-conductors and 
GPS devices

The  EU  is  also  a  leading  participant  in  the 
plurilateral trade talks for a Trade in Ser-
vices Agreement (8) between 23 WTO mem-
bers. It aims at opening up markets and improv-
ing rules in areas such as licensing, financial ser-
vices, telecoms, ecommerce, maritime transport 
and professionals moving abroad temporarily to 
provide services. These talks started formally in 
March 2013. DG Trade took part in six rounds in 
2016 organising and chairing the 18th and 21st 
negotiation rounds. Good progress was observed 
during 2016, though it was not possible to hold 
the  planned  ministerial  meeting  in  December 
2016. There is no formal deadline for ending the 
negotiations.  The  Commission  has  conducted 
a sustainability impact assessment (SIA) in sup-
port of the negotiations (9).

2016 annual activity report12

10  http://trade.ec.europa.eu/do-
clib/press/index.cfm?id=1116

11  http://trade.ec.europa.eu/
doclib/html/154867.htm

12  http://trade.ec.europa.eu/do-
clib/press/index.cfm?id=1261

‘Today, the people of Canada and the European Un-
ion have opened a new chapter in their relationship. 
More than half a billion people on both sides of the 
Atlantic will enjoy new opportunities. For many peo-
ple, it will mean new jobs and better jobs,’ said the 
President of the European Commission, Jean-Claude 
Juncker. ‘We have signed two agreements that not 
only symbolise our commitment to a shared future 
but also set a common project that will improve the 
lives of millions of Canadians and Europeans.’

Similarly,  the  EU  has  been  very  active  on  the 
negotiations of an Environmental Goods Agree-
ment (EGA). Commissioner Malmström repre-
sented the EU together with 16 other WTO 
members at a ministerial meeting on 3 and 
4  December,  where  she  hoped  to  be  able 
to  conclude  these  negotiations  to  remove 
barriers to trade and investment in ‘green’ 
goods  (10),  services  and  technologies,  after 
18 rounds of negotiations. Unfortunately this was 
not possible due to the lack of a broad consen-
sus. All parties remain committed to continuing 
the  negotiations,  which  were  formally  launched 
in July 2014. This agreement intends to eliminate 
tariffs on a broad range of environmental goods, 
building  on  a  list  of  54  environmental  goods 
agreed by the Asia–Pacific Economic Cooperation 
forum.  The  agreement  will  be  a  ‘living  agree-
ment’, allowing for the addition of new products 
in the future and for addressing non-tariff barri-
ers and services linked to environmental goods. It 
is expected to bring economic and environmental 
benefits  worldwide.  The  European  Commission 
has conducted an SIA (11) to assess its economic, 
environmental and social impact.

During the second half of 2016, and in par-
ticular late in the year, the Commission in-
itiated preliminary exploratory discussions 
on  the  establishment  of  a  multilateral  in-
vestment  court.  These  amounted  in  the  first 
place to introductory discussions at internation-
al  meetings  of  investment  experts.  On  13  and 
14  December  the  Commission  and  the  govern-
ment of Canada co-hosted an experts’ meeting 
in  Geneva  to  discuss  the  rationale  for  and  pos-
sible  structure  of  such  a  court.  Exploratory  dis-
cussions will continue in 2017. An impact assess-
ment process was launched in August 2016 and 
is expected to be completed in 2017.

Finalising concluded bilateral 
negotiations

At  bilateral  level,  the  main  achievement 
that caught the attention of the media and 
the public was the signing of the CETA with 
Canada. This agreement is the first between the 
EU  and  a  G7  country.  It  is  a  progressive  agree-
ment that sets a high benchmark for internation-
al trade policy and demonstrates the EU’s will to 
set  high  standards  worldwide.  The  deal  will  be 
beneficial for exporters creating opportunities for 
EU and Canadian companies and their employees, 
as well as for consumers. 99 % of import duties 
will be eliminated, saving European exporters of 
industrial goods and agricultural products more 
than EUR 500 million a year. It includes the most 
ambitious chapters on sustainable development, 
labour and the environment ever agreed upon in 
bilateral  trade  agreements.  After  signature,  the 
agreement must be ratified by the European Par-
liament and by all 28 Member States. Following 
ratification  at  EU  level  most  of  the  agreement 
should provisionally apply from early 2017.

In  June  2016  the  EU  signed  an  EPA  with 
six countries of the SADC that has provision-
ally  applied  since  October  2016.  In  addition  to 
classic  trade  provisions,  the  participating  coun-
tries  —  Botswana,  Lesotho,  Mozambique,  Na-
mibia, South Africa and Swaziland — commit to 
act  towards  sustainable  development,  including 
upholding  social  and  environmental  standards. 
The  agreement  directly  supports  the  economic 
integration  of  the  region,  favouring  closer  links 
between the six nations.

Commissioner for Trade Cecilia Malmström said: 
‘When I visited Botswana in June for the signing 
ceremony, I saw first-hand how important it is to 
build a stable trade partnership between Europe 
and Africa. Today we’re taking a crucial step towards 
making that a reality. The agreement that we’re 
putting in place will support sustainable economic 
growth and regional integration in southern Africa 
and is designed to help lift people out of poverty in 
the years to come. Africa is the emerging continent 
and the Economic Partnership Agreements have 
been designed to maximise this dynamism.’

On 11 November 2016 Commissioner Malm-
ström,  together  with  the  Slovak  Presiden-
cy  of  the  Council  on  behalf  of  the  EU  and 
representatives  of  Colombia,  Peru  and  Ec-
uador,  signed  the  Protocol  of  Accession  of 
Ecuador  (12)  to  the  existing  EU–Colombia/Peru 

2016 annual activity report13  http://ec.europa.eu/trade/

policy/countries-and-regions/
regions/andean-community/

14  Source: http://trade.ec.europa.
eu/doclib/docs/2016/septem-
ber/tradoc_154964.pdf

15  http://trade.ec.europa.eu/do-
clib/press/index.cfm?id=1437

16  Benin, Burkina Faso, Cape 

Verde, Côte d’Ivoire, Ghana, 
Guinea, Guinea-Bissau, 
Ivory Coast, Liberia, Mali, 
Mauritania, Niger, Nigeria, 
Senegal, Sierra Leone, The 
Gambia and Togo.

17  http://ec.europa.eu/trade/
policy/in-focus/ttip/

18  http://www.trade-sia.com/ttip/

Trade Agreement (13). Ecuador’s accession to this 
pro-development  trade  agreement  opens  up 
markets  on  both  sides,  increases  stability  and 
predictability  for  trade  and  investment  in  both 
directions  and  promotes  inclusive  and  sustain-
able  development.  The  agreement  eliminates 
tariffs  for  all  industrial  and  fisheries  products, 
increases  market  access  for  agricultural  prod-
ucts, improves access to public procurement and 
services and further reduces technical barriers to 
trade. Once fully implemented, the savings for EU 
exporters will be at least EUR 106 million in tar-
iffs annually, and Ecuadorian exports will save up 
to EUR 248 million in removed duties (14). The ac-
cession protocol was approved by the European 
Parliament on 14 December and has provisional-
ly applied since 1 January 2017.

Commissioner Malmström said: ‘This agreement is 
a milestone in relations between Ecuador and the 
EU and creates the right framework to boost trade 
and investment on both sides. It's important that 
the agreement comes into effect soon so exporters, 
workers and citizens can start reaping the benefits. 
We need to create more trade between us because 
trade is a key factor for growth and jobs in the EU 
but also for an economy like Ecuador, which wants 
to diversify and integrate into global value chains. 
It creates a foothold for European business and an 
anchor for reforms in Ecuador.’

In 2015 the EU and Vietnam announced the 
conclusion  of  the  negotiations  for  an  FTA. 
The  English  version  of  the  negotiated  text  was 
published in February 2016 (15). 2016 was taken 
up with the legal scrubbing of the text. The next 
step, after finalisation of the legal scrubbing and 
translation of the text, will be for the Commission 
to present to the Council the decision on signa-
ture and conclusion of this FTA.

‘I am glad that we now publish this agreement in 
line with our strong commitment to a transparent 
trade policy’ said EU Trade Commissioner Cecilia 
Malmström. ‘When approved,’ she continued ‘the 
agreement will unlock a market with huge potential 
for EU firms. Vietnam is a fast-growing economy 
of more than 90 million consumers with a growing 
middle class and a young and dynamic workforce. 
Its market offers numerous opportunities for the 
EU's agricultural, industrial and services exports. The 
agreement will also help trigger a new wave of high 
quality investment in both directions, supported by 
our new investment dispute resolution system with 
an appeal mechanism.’

13

As  for  the  EPA  with  the  west  Africa  re-
gion  (16),  provisional  application  depends 
on  its  signature  by  a  number  of  countries. 
Côte  d’Ivoire  and  Ghana  have  signed  and  rati-
fied their stepping-stone EPAs. In the meantime, 
Côte d’Ivoire began applying its EPA in Septem-
ber 2016 and the European Parliament gave its 
consent to the agreement with Ghana on 1 De-
cember  2016,  allowing  for  its  provisional  appli-
cation. A Commission proposal for signature and 
provisional application, and the conclusion of the 
full EPA with five countries of the East African 
Community (EAC), was adopted by the Council 
in June 2016. All EU Member States, along with 
Kenya  and  Rwanda,  signed  the  agreement.  The 
signatures  of  the  other  three  African  countries 
are needed before the consent of the European 
Parliament  is  given  and  provisional  application 
can start.

Ongoing bilateral negotiations

In  2016  DG  Trade  continued  to  pursue  its 
aim  of  negotiating  better  access  for  the 
EU to the US market by removing customs 
duties  and  other  barriers  to  trade  and  by 
facilitating  new  trade  and  investment  op-
portunities in new areas. Independent studies 
and  existing  EU  trade  agreements  indicate  that 
the  TTIP  would  help  generate  growth  and  jobs, 
cut prices and give citizens more choice of goods 
and  services.  At  the  same  time  it  would  uphold 
the  high  standards  of  protection  existing  in  the 
EU.  The  partnership  could  also  help  the  EU  and 
the United States protect and strengthen the val-
ues they share, including principles such as de-
mocracy and the rule of law. DG Trade organised 
and participated in four negotiation rounds dur-
ing 2016, of which two were held in Brussels and 
two  in  New  York.  So  far  15  negotiation  rounds 
have  been  completed.  EU  Trade  Commissioner 
Cecilia Malmström also met her US counterpart 
Mike Froman nine times in the course of the year.

Reports  of  the  negotiation  rounds,  advisory 
group meetings and civil-society dialogues, along 
with  negotiation  texts,  press  material,  studies 
and  much  more,  are  available  on  the  Commis-
sion’s dedicated TTIP website (17). The draft final 
report of the SIA in support of the negotiations 
was published in November for public consulta-
tion  (18).  Notwithstanding  all  the  hard  work  and 
the commitment to transparency, it did not prove 
possible to bring the negotiations to a conclusion 
under  the  outgoing  US  administration.  The  EU 

2016 annual activity report14

19  http://ec.europa.eu/trade/

policy/countries-and-regions/
countries/japan/

20  http://trade.ec.europa.eu/
doclib/html/154522.htm

21  Argentina, Brazil, Paraguay, 
Uruguay (Venezuela is not 
participating in negotiations).

22  http://trade.ec.europa.eu/

doclib/docs/2016/december/
tradoc_155121.pdf

23   Brunei, Cambodia, Indonesia, 
Laos, Malaysia, Myanmar/
Burma, Philippines, 
Singapore, Thailand, and 
Vietnam.

will now need to see the scope to continue these 
ambitious negotiations after the Trump adminis-
tration took office in early 2017.

Negotiations  for  an  FTA  with  Japan  (19), 
which  were  initially  launched  in  2013,  in-
tensified  in  2016  following  public  state-
ments  by  political  leaders  committing  to 
a  rapid  conclusion.  Seventeen  negotiating 
rounds  have  taken  place  so  far,  of  which  three 
were held in 2016 (two in Brussels, one in Tokyo), 
flanked  by  intersessional  meetings.  Negotiating 
texts and market access offers were exchanged 
in all areas. An SIA (20) of the EU–Japan FTA was 
carried  out  for  the  European  Commission  and 
was published in 2016.

DG Trade held the first full round of nego-
tiations  with  Tunisia  for  a  DCFTA  between 
the two parties with the objective of better inte-
grating Tunisia into the EU’s market and further 
developing  bilateral  trade  and  investment.  This 
would be achieved by extending the provisions of 
the existing association agreement to areas not 
covered, such as trade in services, some aspects 
of  agriculture,  trade  and  sustainable  develop-
ment, investment and trade facilitation. Negotia-
tions continued throughout the year.

Following an exchange of offers on 11 May 
2016,  the  EU–Mercosur  (21)  negotiations 
progressed  and  a  negotiating  round  took 
place in Brussels in October 2016. This was 
the  first  full  round  of  negotiations  since  2012. 
Negotiators discussed the full range of negotiat-
ing texts and rules, and exchanged views on how 
to progress on market access issues. The parties 
agreed  to  hold  the  next  round  of  negotiations 
in Buenos Aires on 20-24 March 2017. A call for 
tenders was launched in December 2016 to car-
ry out an SIA in support of the negotiations with 
Mercosur.

DG Trade also continued negotiating two EU 
stand-alone  investment  agreements.  The 
negotiations  of  the  EU–China  Investment 
Agreement  continued  intensively  in  2016. 
Four  rounds  and  four  intersessional  technical 
meetings  allowed  for  the  teams  to  establish 
a joint text, in line with the agreement on scope 
which took place in December 2015, and to pro-
gress on text-based negotiations. Some progress 
has  been  noted  with  respect  to  definitions,  do-
mestic regulation, market access and expropria-
tion. Negotiations on an investment protec-
tion agreement (IPA) with Myanmar/Burma 

were resumed with the new government in 
December 2016. During the fourth round good 
progress  was  achieved  overall,  including  on  the 
new elements of the EU’s reformed approach to 
investment  protection  and  investment  dispute 
resolution.  In  the  meantime,  an  SIA  (22)  of  the 
EU–Myanmar/Burma IPA was carried out for the 
Commission and was published in 2016.

On  the  basis  of  negotiating  directives 
agreed by the Council in May 2016, negoti-
ators from the Commission met their Mex-
ican  counterparts  in  Brussels  on  13  and 
14 June 2016 for a first round and in Mex-
ico on 22-25 November for a second round 
of talks on modernising the trade pillar of 
the  existing  EU–Mexico  Global  Agreement. 
Discussions in 2016 focused inter alia on market 
access issues in the area of goods, services and 
access to public procurement on both sides; bet-
ter  and  broader  protection  of  intellectual  prop-
erty, including names of traditional EU products 
known  as  ‘geographical  indications’;  trade  and 
sustainable  development;  and  ensuring  better 
opportunities for small and medium-sized enter-
prises (SMEs).

On the back of the 2007 negotiation direc-
tives  for  the  ASEAN  countries  (23),  and  the 
official  launch  of  negotiations  for  an  EU–
Philippines  FTA  in  December  2015,  a  first 
round of discussions took place in May 2016 
in  Brussels  and  a  second  one  in  February 
2017  in  Cebu  City. The rounds included meet-
ings dedicated to trade in goods, rules of origin, 
sanitary and phytosanitary (SPS) measures, ser-
vices and investment, intellectual property rights, 
competition, trade and sustainable development, 
and dispute settlement. The EU stressed the need 
for consistency and coherence with what the EU 
has already negotiated in its bilateral FTAs with 
other  members  of  ASEAN  in  view  of  the  long-
term objective of eventually moving towards con-
cluding an EU–ASEAN region-to-region FTA.

Negotiations on an FTA with Indonesia also 
started,  with  a  first  round  in  September 
2016 after the formal launch of the negoti-
ations in July 2016. The coverage of the round 
was similar to that of the Philippines in view of 
the  same  need  for  consistency  and  coherence 
with FTAs with other members of ASEAN and the 
same  long-term  objective  of  eventually  moving 
towards  concluding  an  EU–ASEAN  region-to-re-
gion FTA. A second round of text-based negotia-
tions was scheduled for the last week of January 

2016 annual activity report15

2017. A request for services was sent in Decem-
ber 2016 for a joint SIA on the negotiations with 
Indonesia  and  the  Philippines.  The  signature  of 
the contract is expected in the first half of 2017, 
with a final report to be ready in 2018.

After the conclusion of the negotiations on 
the  Trans-Pacific  Partnership,  a  technical 
stocktaking exercise was started with Ma-
laysia in early 2016 to explore whether there 
is enough common ground to resume the FTA ne-
gotiations that were paused in 2012. Four rounds 
of discussions involving relevant experts on both 
sides have since taken place. However, a number 
of issues are still outstanding before it is possible 
to complete the assessment.

Commissioner Malmström and Minister Lembong 
jointly declared: ‘The EU and Indonesia represent 
a huge market of 750 million consumers. These 
negotiations are key to unleash synergies between 
our economies. Our trade relationship has enormous 
untapped potential. The EU — the world's largest 
trading block — and Indonesia — the largest player 
in the dynamic region of south-east Asia — have 
lots to gain from a deeper trade and investment 
relation. The agreement holds a promise of new 
great opportunities for businesses and people in our 
countries. That is why we engage today with a firm 
resolve to make these talks succeed.’

As  regards  India,  renewed  efforts  were 
made  following  the  EU–India  Summit  in 
March 2016 to revisit the FTA negotiations 
that have been de facto on hold since 2013 
due to lack of progress on key issues of EU 
interest.  Furthermore,  India  has  notified  EU 
Member  States  about  its  decision  to  terminate 
their bilateral investment treaties (BITs) and re-
place them with a new Indian model. As a conse-
quence,  the  Indo-Dutch  BIT  was  terminated  on 

1 December 2016. Eighteen other BITs face the 
same prospect in the course of 2017. In order to 
find a solution and avoid a gap in the protection 
of EU investments in India the EU has proposed 
to the Indian side that FTA talks be resumed and 
the  existing  BITs  replaced  with  modernised  in-
vestment provisions within the FTA, but on con-
dition that the existing BITs are not terminated in 
the meantime.

In  line  with  the  revised  European  neigh-
bourhood  policy,  in  February  2016  DG 
Trade  launched  negotiations  to  enhance 
bilateral  trade  relations  with  Armenia  in 
the framework of a new enhanced partner-
ship agreement. Five trade negotiating rounds 
were  concluded  in  2016,  flanked  by  interses-
sional  meetings  to  prepare  for  a  conclusion  of 
negotiations in early 2017, thereby allowing the 
EU to engage with Armenia in a new contractual 
relationship.

In  July  2016  the  Commission  recommend-
ed  that  the  Council  start  negotiations  on 
a  comprehensive  agreement  with  Azerbai-
jan,  including  on  enhanced  trade  cooperation. 
The  recommendations  were  successfully  adopt-
ed by the Council in November 2016 and negoti-
ations with Azerbaijan are ready to be launched 
early in 2017.

In  light  of  the  ‘Trade  for  all’  communica-
tion, special attention was paid to ensuring 
effective  transparency  of  the  EU’s  negoti-
ations by extending the TTIP transparency initi-
ative to all of the EU’s trade negotiations. Further 
information on the background and the negotia-
tion  rounds  can  be  found  on  the  Commission’s 
trade  website  (http://ec.europa.eu/trade).  The 
Commission  also  called  on  the  Council  to  make 
the negotiating directives for Mexico, Tunisia and 
Mercosur public.

In 2016 DG Trade

•	 published 26 negotiation round reports;

•	 published 47 legal text proposals covering 11 negotiations;

•	 held 24 meetings with civil society and other interested parties, including meetings during specific 

negotiation rounds — the TTIP Advisory Group met nine times in 2016;

•	 launched consultations on five impact assessments and one SIA.

2016 annual activity report16

24  http://ec.europa.eu/trade/

policy/countries-and-regions/
countries/turkey/

Preparing for new bilateral 
negotiations

In December 2016 the Commission recom-
mended that the Council start negotiations 
with  Turkey  (24)  to  enhance  EU–Turkey  bi-
lateral  trade  relations  and  modernise  the 
customs  union  between  the  two  parties. 
The aim is to address two main issues. First, the 
benefits  of  the  already  intense  economic  inte-
gration  between  the  parties  could  be  further 
increased by extending preferential trade rela-
tions to other areas, such as services, public pro-
curement  and  agricultural  trade,  and  by  laying 
down rules that provide a more stable business 
environment, for example in the areas of SPS or 
energy  and  raw  materials.  Second,  a  moderni-
sation  effort  to  improve  the  functioning  of  the 
existing  customs  union,  which  requires  Turkey 

to align its trade policy with that of the EU and 
also to align its technical legislation with EU law, 
but  currently  lacks  sufficient  consultation  and 
involvement mechanisms. In line with the ‘Trade 
for  all’  communication  and  all  recent  EU  trade 
agreements, the modernised customs union will 
also contain dedicated provisions on trade and 
sustainable development.

Finally,  the  Commission  worked  actively  in 
2016 — and continues to do so — towards 
recommending that the Council launch ne-
gotiations on FTAs with Australia and New 
Zealand  and  negotiations  on  the  moderni-
sation of the existing agreement with Chile. 
Intense work on scoping, impact assessment and 
translation should result in these recommenda-
tions being tabled by the Commission in the first 
half of 2017.

Specific objective 2: Effective implementation

Effective implementation of the EU’s trade and investment policies secured, amongst oth-
ers, through proper monitoring, enforcement and support

Once agreements are in place implementa-
tion can start and it is thus important that 
implementation  be  closely  monitored  and 
rights be enforced. Naturally this next step in 
the EU’s trade policy also contributes to the Com-
mission’s priorities on boosting the EU economy, 
creating jobs and being a strong global actor.

ble for overseeing the implementation of the EU’s 
trade agreements agenda and ensuring a more ef-
fective and coherent approach to implementation.

As underlined in the ‘Trade for all’ commu-
nication, in order to ensure that FTAs, once 
they enter into force, result in the promised 

The EU is one of the world’s most open economies. Open trade strengthens its economy, creates jobs, 
gives citizens more choice and buying power as consumers and helps EU firms compete abroad. In 
2016 over 31 million jobs in the EU — one in seven of the total — were supported by exports to coun-
tries outside the Union.

With 39 bilateral/bi-regional trade agreements in 
place (including the ones under provisional appli-
cation) and covering over 65 partners, DG Trade 
has strengthened its focus on proper implemen-
tation and enforcement of the EU’s trade and in-
vestment rights, and in particular those laid out 
in the FTAs.

In  terms  of  DG  Trade’s  internal  organisation  to 
support implementation, two important measures 
were taken in 2016, namely the setting-up of an 
internal  FTA  Coordination  and  Coherence 
Group  and  the  appointment  of  a  coherence 
officer  of  implementation.  Both  are  responsi-

market opening and business opportunities 
on  the  ground,  it  is  crucial  to  ensure  their 
fullest  implementation.  This  is  done  mainly 
through  the  market  access  strategy  (MAS),  by 
making use of the specific structures set up under 
the FTAs (such as specific trade committees al-
lowing early exchange and diplomatic resolution 
of market barriers and, as a last resort, specific 
dispute settlement mechanisms) and the general 
existing  structures  such  as  WTO  committees  or 
WTO dispute settlement, where appropriate.

The MAS complements the EU’s multilater-
al, plurilateral and bilateral trade negotia-

2016 annual activity report25  The MADB (http://madb.

europa.eu) gives information 
to companies exporting from 
the EU about import condi-
tions in non-EU markets.

17

tions  by  ensuring  that  trade  opportunities 
created by trade agreements are translat-
ed  into  real  market  access  for  EU  export-
ers.  The  strategy  is  based  on  a  Market  Access 
Partnership  consisting  of  regular  coordination 
between  the  Commission,  Member  States  and 
businesses,  both  in  Brussels  and  on  the  ground 
in non-EU countries. The MAS is an effective tool 
for  gathering  information  on  trade  barriers  and 
for prioritising and defining a common barrier-re-
moval strategy. This strategy ranges from diplo-
matic démarches and discussions within specific 
committees or structures within the WTO or FTAs 
to mediation and formal dispute settlement.

In  light  of  the  ever-expanding  bilateral  trade 
agenda  and  the  number  of  FTAs  that  will  enter 
into force over the next few years, the 2015 com-
munication ‘Trade for all’ proposed an ‘enhanced 
partnership’  with  Member  States,  the  European 
Parliament  and  other  interested  parties  for  the 
implementation  of  trade  agreements.  This  en-
hanced  partnership  covers  the  implementation 
of  FTAs,  including  reinforced  awareness-raising 
and customs cooperation activities, trade facili-
tation and SME internationalisation.

In  2016, in the context  of different  forums (the 
Market Access Advisory Committee and the trade 
policy  committees),  DG  Trade  collected  ideas 
from Member States and business organisations 
on  concrete  ways  to  enhance  the  partnership 
with a view to increasing the focus on FTA aware-
ness and implementation. DG Trade will reinforce 
coordination with Member States and businesses 
to  better  align  messages  and  démarches  with 
non-EU  countries  based  on  stronger  and  more 
advanced coordination within the Market Access 
Partnership. Furthermore, the Market Access Da-
tabase (MADB) (25) will be improved to enhance 
the  flow  and  sharing  of  information  between 
the  Commission,  Member  States  and  business 
organisations. For this purpose, the ‘Trade barri-
ers section’ of the MADB has already been over-
hauled and improved, and it is planned that the 
MADB will be expanded with a section specifical-
ly  dedicated  to  FTAs  and  their  implementation. 
This  should  allow  interested  parties  to  find  in 
one  place  all  FTA-related  information  of  rele-
vance to implementation and awareness-raising 
activities.  Also,  within  the  Market  Access  Advi-
sory  Committee,  a  first  exchange  took  place  on 
best  practices  in  terms  of  FTA  implementation, 
promotion  and  communication,  and  in  terms  of 
streamlining national structures and procedures 
to further facilitate exports. This discussion will 
be continued in different forums in 2017.

In the context of WTO dispute settlement, the EU launched two new disputes (against Colombia on 
spirits (DS502) and against China on raw materials (‘Raw materials III’, DS509)). The EU was a party 
(complainant or defendant) to 15 ongoing proceedings.

The EU has seen the first results in a number of these proceedings, with several important victories 
at panel stage. The EU won the tariff dispute against Russia (DS485). Russia did not appeal, so the 
results are final, and Russia is under obligation to bring its tariffs (on the products at issue) into com-
pliance by 11 May 2017. The EU also won, at panel stage, the dispute against Russia on its import ban 
on pork. Russia appealed this report and appellate proceedings are now pending. In the dispute with 
Washington State on subsidies for large civil aircraft (DS487), the panel sided with the EU regarding 
one of its prohibited subsidy claims and the United States appealed the report (the appeal is pending). 
As a result of EU’s victory in the dispute against China — anti-dumping duties on steel tubes (HP-SSST, 
DS460) — China fully removed its anti-dumping duties in August 2016.

On  the  defensive  side,  in  February  2016  the  EU  secured  compliance  in  the  dispute  on  fasteners 
(DS397) through repeal of the anti-dumping measures on fasteners from China, putting an end to this 
long-standing dispute and avoiding sanctions. The EU essentially won, at panel stage, against the dis-
pute brought by Indonesia on anti-dumping measures on fatty alcohols (DS442 — Indonesia appealed 
the panel report in February 2017). The panel report came out in relation to compliance proceedings 
in DS316 (Airbus) and the EU appealed the report (the appeal is pending). Work has started on imple-
mentation in the biodiesel dispute with Argentina (DS473 — a notice initiating a review was published 
in December 2016). The implementation period will expire on 10 August 2017.

2016 annual activity report18

26  COM(2016) 406.

27  COM(2016) 268.

28  CCOM(2016) 58.

29  A tariff line is a product as 

defined in lists of tariff rates. 
Products can be subdivided, 
with the level of detail 
reflected in the number of 
digits in the harmonised 
system code use to identify 
the product.

30  COM(2016) 73.

The numbers speak for themselves. The evidence of 
our agreement with Korea should help convince the 
unconvinced that Europe benefits greatly from more 
free trade. When our companies can export more 
easily, or when money saved from scrapped customs 
duties can be reinvested in company development, 
it spurs European growth. It safeguards and creates 
jobs. This anniversary gives us many reasons to roll 
up our sleeves and conclude all other pending EU 
trade deals that are on the table.’

Reports

The  new  report  on  trade  barriers  and  op-
portunities  (26)  combines  and  replaces  the 
report  on  the  monitoring  of  potentially 
trade-restrictive  measures  (the  so-called 
protectionism  report)  and  the  Commis-
sion’s  trade  and  investment  barriers  re-
port.  These  reports  have  been  published  reg-
ularly  since  2008  and  2011  respectively.  The 
2016 report concludes that the slight slowdown 
in the world economy and relatively weak glob-
al  trade  activity  in  2015  were  accompanied  by 
an  increased  tendency  to  resort  to  potentially 
trade-restrictive  measures  during  the  refer-
ence  period  July  2014-December  2015  and  by 
a very limited roll-back of previously introduced 
measures.  The  stock  of  trade-restrictive  meas-
ures  enacted  since  2008  continues  to  grow.  As 
in previous years, emerging countries resorted to 
restrictive measures to the greatest extent, but 
developed  countries,  including  G20  members, 
also  continued  to  apply  them,  despite  repeated 
pledges  not  to  adopt  trade-protectionist  meas-
ures  and  to  roll  back  existing  ones.  The  impor-
tance of the enhanced partnership with EU Mem-
ber  States  and  the  European  Parliament  in  this 
context is highlighted as being crucial. The next 
report is planned for spring 2017. With a view to 
better communication on the joint (EU–Member 
States–businesses) work on trade-barrier remov-
al and FTA implementation, DG Trade intends to 
increase  the  focus  of  the  2017  report  on  trade 
barriers that matter most for EU companies and 
on joint successes. In order to emphasise the im-
portance of effective implementation of EU FTAs, 
the Commission will issue a new report dedicated 
to FTA implementation in autumn 2017.

In  2016  the  EU  celebrated  the  fifth  anni-
versary  of  the  EU–South  Korea  FTA.  The 
fourth  annual  report  on  the  implementation  of 
the agreement was published in June 2016 (27). 
The  findings  showed  that  EU  exports  to  South 

Korea  have  increased  by  55  %  since  the  trade 
deal  between  the  two  partners  entered  into 
force  in  2011,  and  EU  companies  have  saved 
EUR  2.8  billion  in  scrapped  or  discounted  cus-
toms duties. Also, South Korea’s exports to the 
EU have grown at much higher rates than those 
from  other  countries,  in  particular  in  the  areas 
fully or partially liberalised by the agreement. Bi-
lateral trade in goods between the EU and South 
Korea has been growing constantly since 2011, 
and reached a record level of over EUR 90 billion 
in 2015.

The  ‘Second  annual  report  on  the  imple-
mentation  of  the  EU–Colombia/Peru  Trade 
Agreement’ (28) showed  that,  2  years  after 
its entry into force, the agreement is func-
tioning  well  overall.  The  economic  slowdown 
in Latin America and the fall in commodity pric-
es  on  the  global  market  also  affected  EU  trade 
flows  between  the  EU  and  Colombia  and  Peru. 
Colombia  exports  to  the  EU  decreased  in  value 
in 2015, following an increase in 2014. Peruvian 
exports to the EU remained stable in 2015 com-
pared to 2014. Exports from Peru and Colombia 
of products liberalised under the agreement have 
increased, in some cases significantly, indicating 
the agreement’s positive effects. The EU has sig-
nificantly increased its exports to both Colombia 
and Peru of products that have been liberalised 
under the agreement, either fully, partially or by 
means  of  preferential  tariff  quotas.  In  terms  of 
diversification,  since  2012  a  significant  number 
of  new  tariff  lines  (29)  registered  imports.  The 
third annual report will be issued by the end of 
the first half of 2017.

The annual report on the implementation of 
the trade part of the association agreement 
between  the  EU  and  Central  America  (30) 
demonstrated that, overall, the agreement 
appears to work well and the implementa-
tion  process  is  continuing  steadily.  Despite 
the  challenging  global  economic  environment, 
EU  trade  flows  with  Central  America  proved  to 
be fairly dynamic. EU exports to Central America 
increased by 7.2 % in 2014. The utilisation rate of 
the preferences remains, nevertheless, quite low 
for EU exports to Central America, but is better 
for  EU  imports  from  Central  America.  Commu-
nication efforts on both sides of the Atlantic are 
necessary to increase awareness of the opportu-
nities and benefits that the agreement can bring. 
The third annual report on the implementation of 
the association agreement will be released in the 
first half of 2017.

2016 annual activity report19

31  The EU-South Korea FTA has 
provisionally applied since 
July 2011, and was amended 
in 2014 to include Croatia as 
a party to the FTA with effect 
from 1 July 2013. It entered 
into force in December 2015.

32  The EU-Colombia/Peru FTA 
and EU-Central America 
DCFTA have provisionally 
applied since 2013.

33  The trade part of the 

EU-Ukraine Association 
Agreements has provision-
ally applied since 1 January 
2016.

34  Both the Georgia and 

Moldova association agree-
ments entered into force 
on 1 July 2016. Provisional 
application started in Sep-
tember 2014.

35  Pan-Euro-Med Convention. 
The protocols of rules of 
origin in FTAs between 
Parties to the pan-Euro-Med 
zone are being replaced by 
the rules of origin laid down 
in the Regional Convention 
on pan-Euro-Mediterranean 
preferential rules of origin 
(OJ L 54, 26.2.2013).

36  Antigua and Barbuda, the 

Bahamas, Barbados, Belize, 
Dominica, the Dominican 
Republic, Grenada, Guyana, 
Jamaica, Saint Kitts and 
Nevis, Saint Lucia, Saint 
Vincent and the Grenadines, 
Saint KittsSuriname and 
Nevis, Surinam, Trinidad, and 
Tobago, and the Dominican 
Republic.

37  COM(2016) 721.

Monitoring committees and 
councils

South Korea FTA (31). Ten out of 16 implemen-
tation  bodies  (seven  specialised  committees, 
seven working groups and two dialogues) met in 
2016, along with the annual FTA Trade Commit-
tee meeting at ministerial level. The committees 
acknowledged the positive trends in the develop-
ment  of  bilateral  trade  relations  and  discussed 
outstanding implementation issues in a number 
of FTA areas.

Colombia/Peru  and  Central  America  agree-
ments (32). The annual trade committee meeting 
with  Colombia  and  Peru  and  the  annual  trade 
committee/association committee meetings with 
Central  American  countries  took  place  in  2016. 
In  addition  work,  was  done  by  EU  delegations 
and headquarters on implementation of specific 
issues, along with dissemination/communication 
activities  in  the  EU  and  the  partner  countries. 
Furthermore,  accompanying  development  coop-
eration actions were planned under the relevant 
instruments in order to support implementation 
of  the  agreements,  including  a  strong  focus  on 
trade and sustainable development.

EU-Ukraine DCFTA (33). Subcommittees met and 
an  annual  association  committee/council  meet-
ing took place. In the context of implementation 
of  the  association  agreement,  an  SPS  strategy 
and a public procurement roadmap will be sub-

ject to a Commission proposal to update its an-
nexes.  New  autonomous  trade  measures  have 
been proposed in addition to the trade liberalisa-
tion that is available under the DCFTA.

Georgia and Moldova DCFTAs  (34). Meetings of 
the  annual  association  committee  in  its  trade 
configuration  and  four  specialised  subcommit-
tees took place in 2016. A decision on the update 
of the SPS annex of the association agreement is 
awaiting  signature  by  the  EU–Georgia  SPS  sub-
committee. Decisions on the update of the public 
procurement and technical barriers to trade (TBT) 
annexes of the association agreement are being 
prepared for signature at the upcoming meeting 
of  the  EU–Georgia  Association  Committee  in  its 
trade configuration. Two decisions on the update 
of the public procurement and TBT annexes of the 
association agreement were signed at the meet-
ing of the EU–Moldova Association Committee in 
its trade configuration. A decision on the replace-
ment of Protocol II (rules of origin) by a link to the 
Pan-Euro-Med Convention (35) was signed by the 
EU–Moldova Customs Subcommittee. The list of 
arbitrators for dispute settlement was approved.

EPAs. The Cariforum (36)–EU EPA Joint Consulta-
tive Committee met in Brussels in April 2016. The 
Cariforum Trade Development Committee met in 
November 2016. The ESA EPA Committee met in 
Brussels in December 2016. The EPA Committee 
meeting with Cameroon took place in Yaoundé in 
December 2016.

Specific objective 3: Tackling unfair trade

Maintain and improve a transparent, efficient and effective system to combat distortions 
and unfair trade practices in international trade

The  EU  uses  trade  defence  instruments 
(TDIs)  to  re-establish  a  competitive  envi-
ronment for the  EU industry  when  harmed 
imports.  DG  Trade  committed 
by  unfair 
throughout  2016  to  maintaining  and  improving 
a  transparent,  efficient  and  effective  system  to 
combat  distortions  and  unfair  trade  practices. 
As such this specific objective contributes to the 
Commission’s general objective of expanding the 
EU  economy  and  maintaining  jobs  in  the  EU.  In 
2016  more  than  300  000  jobs  in  the  EU  were 
covered by the EU’s trade defence measure. DG 
Trade  completed  all  investigations  within  the 
mandatory deadlines or even earlier.

In the context of the expiry of certain pro-
visions  of  China’s  WTO  accession  protocol 
by 11 December 2016 and a changing trad-
ing  environment,  in  November  2016  the 
Commission  presented  a  proposal  (37)  for 
a  new  method  for  calculating  dumping  on  im-
ports from countries where there are significant 
market distortions, in particular where the state 
has  a  pervasive  influence  on  the  economy.  The 
purpose of the proposal is to make sure that Eu-
rope has TDIs that are able to deal with current 
realities,  notably  overcapacities,  in  the  interna-
tional trading environment, while fully respecting 
the EU’s international obligations within the legal 

2016 annual activity report20

38  SWD(2016) 370.

39  COM(2016) 155.

40  COM(2013) 192.

41  Under a lesser-duty rule 

authorities impose duties at 
a level lower than the margin 
of dumping if this level is 
adequate to remove injury

42  http://trade.ec.europa.eu/tdi/

index.cfm

framework of the WTO. The proposal, which in-
troduces changes to the EU’s anti-dumping and 
anti-subsidy  legislation,  follows  a  broad  public 
consultation  and  is  accompanied  by  an  impact 
assessment (38).

On 13 December 2016 the Permanent Representa-
tives Committee (Coreper) agreed on the Council's 
negotiating position on a proposal to modernise 
the EU's trade defence instruments. The Slovak 
minister representing the Presidency of the Council 
said: ‘This is a major breakthrough. Our trade de-
fence instruments have remained largely the same 
for over 15 years but the situation on world markets 
has changed dramatically. Europe cannot be naïve 
and has to defend its interests, especially in case of 
dumping. This is a crucial step towards a solid solu-
tion that would help EU producers cope with unfair 
competition and practices.’

Furthermore, following the steel crisis and 
the Commission communication on preserv-
ing sustainable jobs and growth in the steel 
sector  (39),  the  2013  Commission  proposal 
on  modernisation  of  the  EU’s  TDIs  (40)  re-
ceived new impetus. The pending proposal for 
modernising  the  EU’s  trade  defence  rules  was 
discussed  at  the  highest  political  level  during 
2016, and in December the Council was able to 
finalise its common position. The Commission is 
trying  to  facilitate  agreement  on  the  proposal 
between the European Parliament and the Coun-
cil early in 2017. Among other things, the adop-
tion  of  the  proposal  would  make  it  possible  to 
impose provisional anti-dumping measures more 
quickly and would allow the EU not to apply the 
lesser-duty rule (41) whereby the exporting coun-
try  distorts  raw  material  prices,  for  instance  by 
introducing export restrictions on them.

Transparency

The Commission has taken further steps to 
increase transparency in its trade defence 
procedures  and  to  facilitate  communica-
tion  with  interested  parties.  In  particular, 
a dedicated web platform, TRON (42) (from ‘trade 
online’),  now  offers  the  parties  involved  in  each 
particular procedure instant online access to the 
entire  non-confidential  case-related  file.  This 
provides  relief  particularly  to  smaller  compa-
nies,  which  will  no  longer  be  obliged  to  request 
access  to  the  file  through  a  Brussels-based 
representative.

EU Trade Commissioner Cecilia Malmström said: ‘I’m 
committed to making trade policy more transparent 
across the board, including for trade defence. With 
the ongoing steel crisis, we need more engagement 
between the Commission’s trade defence services 
and everyone concerned, including small businesses 
who struggle with unfair imports. With these new 
tools to improve two-way communication, we hope 
for more contributions to help us better address the 
industry’s legitimate concerns.’

In  2017  TRON  will  include  two  additional  fea-
tures: (i) web notification, through which interest-
ed parties will be notified and have online access 
to all public and limited communications; and (ii) 
web  submission,  allowing  interested  parties  to 
make  all  submissions  related  to  a  case  via  the 
web (for instance questionnaire replies). The pilot 
phases for both additional features are ongoing 
and the system will gradually become operation-
al. Web notification will be available by mid 2017 
and  web  submission  and  online  registration  by 
parties will be available by the end of 2017.

Actions by non-EU countries

DG  Trade  also  actively  follows  trade  de-
fence  investigations  by  non-EU  countries 
with  the  aim  of  minimising  the  effects  for 
EU exporters. These investigations are particu-
larly problematic when the relevant WTO stand-
ards are not scrupulously respected because the 
resulting measures unduly limit legitimate mar-
ket access by EU exporters.

In  this  context,  the  Commission  assists  the  EU 
industry  that  is  subject  to  trade  defence  inves-
tigations  by  non-EU  countries  and  almost  sys-
tematically intervenes directly in the framework 
of  investigations  as  interested  party.  These  in-
terventions  were  successful  in  various  cases  in 
2016, as they either allowed the negative effect 
of measures to be minimised or, sometimes, even 
avoided their imposition.

Overall there are around 150 measures in force by 
non-EU countries that affect EU exports. On aver-
age,  the  Commission  monitors  and  intervenes  in 
close to 100 such investigations per year.

In order to advocate for the EU’s best practices in 
the area of trade defence, the Commission also 
regularly organises training seminars for non-EU 
countries’ trade defence authorities.

2016 annual activity report43  The EU’s GSP is designed to 
help developing countries in-
tegrate into the international 
trade system by making it 
easier for them to export 
their products to the EU. This 
is done in the form of partly 
or fully reduced tariffs for 
their goods when entering 
the EU market. Through the 
additional export revenue 
which is generated, the 
GSP fosters growth in their 
income and supports their 
development.

44  The GSP+ enhanced prefer-

ences mean the full removal 
of tariffs on essentially the 
same product categories as 
those covered by the general 
arrangement. These are 
granted to countries which 
ratify and implement core 
international conventions 
relating to human and labour 
rights, the environment and 
good governance.

21

Global Forum on Steel Excess 
Capacity

While TDIs are very important in order to restore 
the balance in case of unfair trade practices, it is 
also extremely important to act on the root caus-
es  of  imbalances  leading  to  unfair  trade  situa-
tions. For this reason the Commission, and no-
tably DG Trade, has been very active in and 
played  a  leading  role  in  the  establishment 

of the Global Forum on Steel Excess Capac-
ity on 16 December in Berlin. The G20 leaders 
called for the establishment of this forum on the 
occasion of the Hangzhou Summit in September 
2016.  The  forum  will  allow  communication  and 
cooperation  on  capacity  developments  and  pol-
icy  to  be  enhanced.  It  will  also  enable  effective 
steps  to  be  taken  to  address  the  challenges  so 
as to enhance market functioning and encourage 
adjustment in the steel sector.

Specific objective 4: A sustainable approach to trade

Improved sustainable economic, social and environmental conditions for consumers, work-
ers, citizens and businesses in the EU and in non-EU countries, and a special focus on hu-
man rights, responsible management of supply chains and good governance

The ‘Trade for all’ communication commit-
ted the Commission to reinforcing its action 
within  trade  policy  to  promote  sustaina-
ble  development,  human  rights  and  good 
governance,  in  the  spirit  of  the  UN’s  2030 
Agenda  for  Sustainable  Development,  in-
cluding by ensuring the effective implementation 
of  related  FTA  provisions  and  the  Generalised 
Scheme  of  Preferences  (GSP)  (43).  In  this  sense 
the outputs under this specific objective, as listed 
below, contribute to a large extent to the Com-
mission’s  priority  9  enhancing  the  EU’s  position 
as a stronger global actor.

The  Commission  continues  to  negotiate 
strong  provisions  to  promote  the  respect 
of  labour  rights  and  environmental  pro-
tection, including the fight against climate 
change  around  the  world.  Once  FTAs  enter 
into  force  the  Commission  encourages  the  EU’s 
trading partners to implement the relevant pro-
visions on core labour standards — such as the 
abolition of child labour, the rights of workers to 
organise and non-discrimination at work — and 
to increase the priority given to the sustainable 
management  and  conservation  of  natural  re-
sources (biodiversity, soil and water, forests and 
timber,  fisheries  and  wildlife)  and  to  the  fight 
against climate change.

In  this  context,  given  the  real  progress  in 
the  elimination  of  child  labour  in  Uzbeki-
stan, it is worth mentioning the long-await-
ed  consent  given  by  the  European  Parlia-
ment  on  a  Council  decision  on  the  conclu-
sion  of  a  protocol  to  the  Partnership  and 

Cooperation Agreement (PCA) between the 
EU  and  Uzbekistan,  extending  the  provisions 
of the PCA to bilateral trade in textiles. In 2004 
the  EU–Uzbekistan  textile  agreement  expired 
and  Uzbekistan  was  not  in  favour  of  extending 
or renewing the agreement. As Uzbekistan is not 
a  WTO  member  it  was  free  to  increase  import 
tariffs  regarding  EU  exports  of  cotton/textiles. 
The textile protocol to the PCA will now ensure EU 
textiles and clothing products are given most-fa-
voured-nation treatment for trade and will put an 
end to the current legal uncertainty for EU textile 
exporters. In December 2011 the European Par-
liament refused to give its consent to the proto-
col due to the use of child labour during Uzbek-
istan’s  cotton  harvests.  After  the  Commission’s 
and  the  EEAS’s  mediation  efforts,  Uzbekistan 
allowed  International  Labour  Organisation  (ILO) 
monitoring  in  2013  and  child  labour  was  erad-
icated  by  2015.  Uzbekistan  is  the  sixth-largest 
cotton producer in the world, though EU–Uzbek-
istan bilateral trade in cotton and textiles is not 
very significant. EU imports of cotton amount to 
EUR 36.5 million out of a total of EUR 940 mil-
lion in Uzbek cotton exports. Uzbekistan benefits 
from GSP treatment for its exports of cotton and 
textile products to the EU. Once the textile pro-
tocol is ratified the EU will benefit from most-fa-
voured-nation  treatment  for  exports  of  textile 
products to Uzbekistan.

In  2016  DG  Trade  continued  to  implement 
the EU’s GSP. It closely monitored the GSP+ (44) 
beneficiaries’  compliance  with  their  obligations, 
notably the effective implementation of the rele-
vant conventions, in order to spot potential prob-

2016 annual activity report22

45  Commission Implementing 
Regulation (EU) 2016/330 
of 8 March 2016. Graduated 
products are products that 
have become so competitive 
that they no longer need 
support to be successfully 
exported to the EU. These 
products will not receive GSP 
preferences from 1 Janu-
ary 2017 until 31 Decem-
ber 2019, when the list will 
be reviewed. This decision, 
however, will not apply to 
countries which will benefit 
from GSP+ in the period 
concerned.

46  Commission Delegated 

Regulation (EU) 2016/79 of 
25 November 2015.

47  Commission Delegated 

Regulation (EU) 2017/836 of 
11 January 2017.

48  Commission Delegated 

Regulation (EU) 2017/217 of 
5 December 2016.

49  COM(2016) 29.

50  http://trade.ec.europa.eu/
doclib/html/154841.htm

51  COM(2016) 616. 

lems in a timely manner and assist beneficiaries 
in their rectification, and so minimise the risk of 
the withdrawal of preferences. In particular, four 
GSP+ monitoring missions took place in 2016 (Bo-
livia, Kyrgyzstan, Pakistan and Paraguay). Other 
developments included: a new list of graduated 
products (45); Kyrgyzstan becoming a GSP+ bene-
ficiary on 26 January 2016 (46); Sri Lanka apply-
ing for GSP+ in the second quarter of 2016 (47); 
and the removal of Ukraine from and reintroduc-
tion of Tonga to the list of beneficiaries (48). On 
28  January  2016  the  Commission  adopted  the 
first  biannual  report  to  the  Parliament  and  the 
Council on the effects of the revised GSP regu-
lation, in particular on the implementation of the 
GSP+ arrangement (49).

In  2016  the  Commission  continued  to  take 
an active role in flagship autonomous initi-
atives.  Together  with  the  other  partners  in  the 
compact,  the  Commission  closely  followed  the 
implementation  of  the  Bangladesh  Sustaina-
bility Compact for improving labour, includ-
ing  health  and  safety,  conditions  for  work-
ers  in  Bangladeshi  garment  factories,  including 
through a progress monitoring project carried out 
by the ILO. The last high-level follow-up meeting 
on the compact took place in Dhaka in January 
2016,  and  the  third  annual  report  on  progress 
achieved  in  the  Bangladeshi  garment  sector 
through the Bangladesh Sustainability Compact 
was  published  in  August  2016  (50).  Within  this 
framework DG Trade also encouraged EU enter-
prises to take responsibility for their impacts on 
society  and  to  sustain  private-sector  efforts  in 
contributing to safe working conditions in Bang-
ladesh in the garment sector.

‘We are living in turbulent times. Preserving peace 
and protecting human rights are core objectives of 
the EU and our trade policy is essential to that aim. 
That's why we are proposing a set of modern rules to 
make sure that exports are not misused to threaten 
international security or undermine human rights,’ 
said Commissioner for Trade Cecilia Malmström

The Commission is also engaged in the La-
bour Rights Initiative in Myanmar/Burma to 
promote decent work and responsible busi-
ness conduct in the country, which brings to-
gether the government of Myanmar/Burma, the 
EU,  Denmark,  Japan,  the  United  States  and  the 
ILO. The Commission funded and actively partic-
ipated  in  the  second  Stakeholder  Forum  of  the 
initiative, which took place in Yangon in Septem-

ber  2016.  The  forum  enabled  constructive  dis-
cussions with social partners and other actors on 
progress and the way forward towards achieving 
the objectives of the initiative.

‘The rules we agreed upon today are a huge step 
forward in our efforts to stop human rights abuses 
and armed conflict financed by trade in minerals. 
I'm convinced that it will have real impact on the 
ground, for the people suffering from such conflicts. 
I sincerely hope that the EU model will now set an 
example for other countries to follow,’ said EU Trade 
Commissioner Cecilia Malmström

The  European  Parliament,  the  Council  and 
the Commission agreed in 2016 on a frame-
work to stop the financing of armed groups 
through trade in conflict minerals. This regu-
lation, which is expected to be formally adopted 
in  May  2017,  sets  out  a  framework  within  which 
EU  companies  will  ensure  that  the  vast  majori-
ty  of  tin,  tantalum,  tungsten  and  gold  imported 
into the EU is sourced responsibly. These minerals 
are  typically  used  in  everyday  products  such  as 
mobile phones, cars and jewellery. The regulation 
will  apply  from  2021.  In  2016  DG  Trade  organ-
ised outreach dialogues on conflict minerals with 
a number of trading partners, including China, Co-
lombia,  India,  Malaysia,  Thailand  and  the  United 
Arab Emirates. It also worked in parallel on guide-
lines  for  authorities  in  the  EU  Member  States  to 
ensure  the  appropriate  EU-wide  implementation 
of the regulation. Accompanying measures to pro-
vide adequate support to importers, in particular 
SMEs, will also be deployed shortly, combined with 
a range of development aid and foreign policy ac-
tions to ensure buy-in by EU trading partners, the 
effectiveness of the regulation and its positive im-
pact on the ground in developing countries.

In  the  current  deteriorating  security  envi-
ronment, it is also important that trade pol-
icy contribute to the preservation of inter-
national peace and security while ensuring 
the protection of human rights. To this end 
the Commission has tabled a recast propos-
al (51) for the regulation on controlling ex-
ports  of  dual-use  items.  The  purpose  of  this 
proposal is to strike a balance between ensuring 
a  high  level  of  security  and  adequate  transpar-
ency,  and  maintaining  the  competitiveness  of 
EU  companies  and  legitimate  trade  in  dual-use 
items. Awareness-raising activities organised by 
DG Trade in 2016 comprised a civil-society dia-
logue meeting in October and a dedicated Export 
Control Forum in December.

2016 annual activity report23

EUR 230 000 has also been granted to the 
World  Bank  to  contribute  to  the  Support 
Programme on Investment Policy and Relat-
ed Areas. Its objective is to support developing 
countries  in  improving  their  investment  policies 
by addressing legal, regulatory and administra-
tive impediments in order to attract, retain and 
expand investment in the local economy.

A  EUR  1  million  contribution  was  given  to 
the International Trade Centre (ITC) for the 
first year of activities of a 2-year project on fair 
and  ethical  trade.  Within  this  project  the  ITC 
will  on  the  one  hand  carry  out  a  study  of  the 
market  for  sustainability  assurance,  comple-
menting EU-funded work on the supply side (e.g. 
small  producers)  and  on  the  other  hand  design 
the scoping and criteria for the first edition of the 
EU City for Fair and Ethical Trade Award, and will 
involve  relevant  stakeholders  to  receive  inputs 
and raise awareness of the process for the 2018 
ceremony.  Another  EUR  1  million  is  planned  in 
2017 to finance activities for the second year of 
the project. This project will help to deliver on the 
objectives  of  the  ‘Trade  for  all’  communication 
on fair trade and other sustainability assurance 
schemes.

Finally,  the  ILO,  the  monitoring  body  for 
the  eight  fundamental  labour  conventions 
that are relevant under GSP+ and the trade 
and  sustainable  development  chapters  of 
EU  trade  and  investment  agreements,  has 
received  a contribution of  EUR  900  000 to 
support  the  implementation  of  the  Sustainabil-
ity Compact for continuous improvements in la-
bour rights and factory safety in the ready-made 
garment and knitwear industry in countries such 
as  Bangladesh,  and  to  cover  activities  such  as 
awareness-raising  and  training  to  ensure  that 
trade  liberalisation  goes  hand  in  hand  with  re-
spect for labour rights.

For a full overview of the latest results in rela-
tion  to  all  impact,  result  and  output  indicators, 
including details of publications, please refer to 
Annex 12.

On 19 July 2016 the EU and Jordan agreed 
on an initiative on rules of origin to support 
Jordan in the context of the current Syrian 
refugee crisis. This initiative provides for a sig-
nificant relaxation of otherwise applicable rules 
of origin for imports of a wide range of industrial 
products from Jordan into the EU, provided that 
a  number  of  criteria  are  met,  including  a  mini-
mum amount of employment of Syrian refugees 
in  manufacturing.  This  work  on  rules  of  origin 
has  taken  precedence  over  scoping  discussions 
on a potential DCFTA, where Jordan has wanted 
to exclude a number of issues that the EU consid-
ers important. Implementation work will continue 
in  2017  in  order  to  help  Jordan  in  its  efforts  to 
attract foreign investors and buyers and take full 
advantage of the initiative in the years to come.

Meetings with FTA partners (Central Ameri-
ca, Colombia/Peru, Georgia, Moldova, South 
Korea) took place to review the implemen-
tation  of  the  trade  and  sustainable  de-
velopment  chapters  of  the  bilateral  trade 
agreements and to raise any issues of concern. 
These took place for the first time with Georgia 
in 2016. In addition to meetings of officials, inter-
active sessions were held with civil society. The 
civil-society meeting held under the EU’s trade 
agreement  with  Colombia  and  Peru,  which  took 
place in Brussels, was webcast in order to facili-
tate participation by civil-society representatives 
in the Andean countries.

Financed projects

The  following  is  a  selection  of  projects  that  DG 
Trade  has  financed  from  its  operational  budget 
and  that  support  its  work  in  achieving  specific 
objective 4.

DG  Trade  has  contributed  EUR  300  000  to 
the  operation  of  the  United  Nations  Com-
mission  on  International  Trade  Law  (Un-
citral).  The  Uncitral  Rules  on  Transparency  in 
Treaty-based  Investor–State  Arbitration  have 
been in effect since 1 April 2014. The rules con-
stitute a major step in favour of improving trans-
parency in investor–state arbitration, which is an 
important aspect of the EU’s investment policy. 
DG Trade provides financial support to allow the 
Uncitral secretariat to fully exercise its repository 
function covering the 2016-2018 period.

2016 annual activity reportGETTING IN TOUCH WITH THE EU

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doi:10.2781/765147