REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on Implementation of Free Trade Agreements 1 January 2016 - 31 December 2016
Date: 2017-11-09
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: association agreement (EU), cooperation agreement (EU), free-trade agreement, investment, service, sustainable development, tariff preference, tariff quota, third country, trade agreement (EU)

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 9.11.2017  COM(2017) 654 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on Implementation of Free Trade Agreements  1 January 2016 - 31 December 2016 {SWD(2017) 364 final}  
 
 
1. 

INTRODUCTION ....................................................................................................... 4 

1.1.  Effectiveness, transparency, cooperation .......................................................... 4 
1.2.  Structure of the report ........................................................................................ 4 

2. 

"NEW  GENERATION"  FTAS  –  SOUTH  KOREA,  COLOMBIA  AND 
PERU, CENTRAL AMERICA ................................................................................... 7 

2.1.  Trade flows ........................................................................................................ 7 
2.2.  Tariff-rate quotas (TRQs) ................................................................................ 10 
2.3.  Preference utilisation rate ................................................................................ 10 
2.4.  Services and investment .................................................................................. 11 
Implementation bodies .................................................................................... 11 
2.5. 

3.  DEEP  AND  COMPREHENSIVE  FREE  TRADE  AREAS  –  UKRAINE, 

MOLDOVA, GEORGIA ........................................................................................... 14 

3.1.  Trade flows ...................................................................................................... 14 
3.2.  Tariff rate quotas ............................................................................................. 15 
3.3.  Preference utilisation rates .............................................................................. 15 
3.4.  Services and investment .................................................................................. 16 
Implementation bodies .................................................................................... 16 
3.5. 

4.  ECONOMIC PARTNERSHIP AGREEMENTS - AFRICAN, CARIBBEAN 

AND PACIFIC (ACP) COUNTRIES ....................................................................... 18 

4.1.  State of play of the agreements ....................................................................... 18 
4.2.  Trade flows ...................................................................................................... 18 
4.3. 
Investment ....................................................................................................... 20 
4.4.  EU support for EPA implementation .............................................................. 20 
4.5.  Development assistance ................................................................................... 21 
Institutional activity ......................................................................................... 21 
4.6. 

5. 

"FIRST GENERATION" FTAS ............................................................................... 22 

5.1.  Trade flows ...................................................................................................... 22 
5.2.  Tariff-rate quotas ............................................................................................. 24 
5.3.  Preference utilisation rates .............................................................................. 24 
5.4.  Services and investment .................................................................................. 24 
Implementation bodies .................................................................................... 25 
5.5. 

6. 

IN FOCUS: TRADE AND SUSTAINABLE DEVELOPMENT CHAPTERS ....... 26 

6.1. 
'New Generation' FTA activities ..................................................................... 26 
6.2.  Government-to-government TSD meetings .................................................... 26 
6.3.  Other meetings ................................................................................................. 27 
6.4.  State of play and challenges ............................................................................ 27 

2 

 
 
 
 
7.  EX-POST  EVALUATION  OF  THE  IMPACT  OF  FTAS  –  CHILE  AND 

MEXICO ................................................................................................................... 29 

7.1.  Chile ................................................................................................................ 29 
7.2.  Mexico ............................................................................................................. 30 

8.  PREPARING TO IMPLEMENT FTAS EFFECTIVELY ........................................ 31 

9. 

INTENSIFYING OUTREACH ................................................................................ 32 

10.  CONCLUSION ......................................................................................................... 33 

10.1.  Trade flows ...................................................................................................... 33 
10.2.  Tariff rate quotas ............................................................................................. 33 
10.3.  Preference utilisation rates .............................................................................. 33 
10.4.  Services and investment .................................................................................. 34 
10.5.  Trade and sustainable development (TSD) ..................................................... 34 
10.6.  Open issues ...................................................................................................... 34 
10.7.  Legal enforcement ........................................................................................... 35 

ANNEX 1 - SCOPE OF THE REPORT AND DATA USED .......................................... 36 

ANNEX 2 - OVERVIEW OF THE FTAS COVERED BY THIS REPORT ................... 37 

ANNEX 3 - PREFERENCE UTILISATION STATISTICS ............................................ 38 

ANNEX 4 - PREFERENCE USE ON IMPORTS INTO THE EU .................................. 39 

ANNEX 5 - PREFERENCE USE ON EXPORTS FROM THE EU ................................ 40 

3 

 
 
 
 
1. 

INTRODUCTION 

1.1.  Effectiveness, transparency, cooperation 

In  recent  times  many  people  have  questioned  the  ability  of  trade  policy  to  harness 
globalisation and support people and businesses in the EU and beyond. So obtaining the 
maximum  benefit  from  the  EU's  free  trade  agreements  (FTAs)  is  one  of  the 
Commission's key objectives.  

With this in mind, the trade Communication "Trade for All"1 emphasised the importance 
of  implementing  and  enforcing  FTAs  effectively.  It  committed  the  Commission  to 
producing an annual FTA Implementation Report, of which this is the first edition. 

The main purpose of this report is to ensure transparency. It highlights progress as well 
as  problems  and  shortcomings.  In  so  doing,  it  should  enable  the  other  EU  institutions, 
civil  society  and  everyone  with  a  stake  in  EU  trade  policy  to  scrutinise  and  debate  the 
way in which the EU is putting its FTAs into practice.  

The  Commission  also  seeks  to  work  more  closely  with  the  other  EU  institutions,  EU 
Member  States,  business  and  non-business  organisations  in  gathering  further  ideas  on 
making FTAs more effective. And it aims to find ways to help businesses across the EU 
and in partner countries to make better use of them. 

Currently  there  is  no  comprehensive  overview  of  the  implementation  of  all  EU  FTAs.  
But  annual  reporting  is  carried  out  for  some  of  them2.  This  report  builds  on  existing 
practices.  It  seeks  to  be  comprehensive  and  to  continue  monitoring  and  sharing 
information about the EU's work to apply its FTAs. 

1.2. 

Structure of the report   

The report gives a brief overview of the main findings concerning the EU's FTAs which 
it is applying. It groups them into: 
  "new generation" FTAs, 
  Deep and Comprehensive Free Trade Areas (DCFTAs), 
  Economic Partnership Agreements (EPAs), 
  "first generation" FTAs.  

It also includes: 
  company testimonials, most notably concerning small businesses, highlighting the 

benefits of EU FTAs, 

  a section on the implementation of the trade and sustainable development provisions 

in EU FTAs, 

  an explanation of the Commission's ex post evalutions of the impact of FTAs, and 
  a section on the preparation to the upcoming implementation work on new FTAs. 

1 European Commission, Communication “Trade for All: Towards a more responsible trade and investment 
policy”, COM (2015) 497. These messages were reiterated in the European Commission's “Report on 
the Implementation of the Trade Policy Strategy Trade for All”, COM (2017) 491. 

2 For the reporting period this concerns EU's free trade agreements with South Korea (see the latest annual 
report COM (2017) 614), Central America (see COM (2017) 160) and Colombia-Peru (see COM 
(2017) 585). 

4 

 
 
                                                 
A  Staff  Working  Document  accompanying  this  report  gives  more  detailed  individual 
annual reports on DCFTAs with Georgia, Moldova and Ukraine, and factsheets on "first 
generation" FTAs, and EPAs. 

The Commission looks forward to discussing the conclusions of this report, and invites 
everyone concerned to contribute to it. 

5 

 
 
 
6 

 
 
 
2.  "NEW  GENERATION"  FTAS  –  SOUTH  KOREA,  COLOMBIA  AND  PERU,  CENTRAL 

AMERICA 

"New  generation"  FTAs  for  the  purpose  of  this  report  are  FTAs  negotiated  after  2006 
when the Commission announced in its "Global Europe" Communication3 that it would 
start  negotiating  comprehensive  FTAs  with  selected  third  countries.  Of  the  applied 
agreements, FTAs with South Korea (Korea), Colombia-Peru and Central America (CA) 
belong to this category. 

2.1.  Trade flows  

When looking at developments in trade, the FTA with Korea has been a success story for 
European exports.  

2.1.1.  South Korea  

EU exports to Korea have increased by 59.2% since the FTA started to be applied4. The 
EU's EUR 11.6 billion trade deficit in 2010 has turned into a surplus of EUR 3.1 billion 
in 2016.  

In 2016, however, EU exports decreased by 6.9%, for the first time during the application 
of the FTA. EU exports decreased in particular on machinery and appliances (by 8.2%) 
and transport equipment (by 6.4%). These two sectors represent more than 50% of EU 
exports to Korea.  

Imports  from  Korea  have  remained  overall  relatively  stable.  In  2016,  imports  from 
Korea decreased as well by 2.2%. A drop of 4.9% in imports from Korea was also noted 
in machinery and appliances and transport equipment. 

Motor vehicles have been a sector of specific interest in the case of the EU - Korea FTA, 
and also in this area EU exports have performed extremely well.  

EU exports of motor vehicles have increased by 244% since the start of the application 
of the FTA, accounting for 13% of total EU exports to Korea.  

EU imports from Korea have grown by 53%, representing 10% of total EU imports from 
Korea. 

In  2016  however,  EU  exports  in  motor  vehicles  decreased  by  7.5%  (in  part  due  to  the 
diesel engine scandal) and imports decreased by 9%. 

Further  reasons  for  the  decrease  of  EU  overall  exports  are  decrease  of  UK  oil  exports 
(due to end of the Iran sanctions), and lower delivery of  aircraft (with more deliveries 
scheduled for the next years). 

3 European Commission, Communication "Global Europe: Competing in the world", COM (2006) 567. 
4 EU-Korea FTA applied since July 2011. 

7 

 
 
 
                                                 
Exports help Austrian climbing equipment maker reach the summit 

By eliminating customs duties, the EU - Korea trade agreement helped AustriAlpin to 
start  doing  business  in  South  Korea  and  strengthen  its  position  on  the  Asian  and 
global  markets.  The  climbing  equipment  maker  now  exports  around  80%  of  its 
products largely thanks to EU trade agreements. 

While the firm employs fewer than 100 people, in 2015, AustriAlpin's total sales were 
worth EUR 8.5 million, of which EUR 7.1 million came from exports. 

French organic cosmetics producer finds success in South Korea 

Laboratoire  Soniam  produces  plant  extracts  for  the  cosmetics  industry.  The  small 
company benefited from the EU - Korea trade agreement because the reduced tariffs 
helped the company offer its products at more attractive prices.  

Bolstered  by  an  Ecocert  certification  for  organic  produce  and  their  'made  in  France' 
label, Soniam has seen its exports to Korea increase by 20% throughout 2016. 

2.1.2.  Colombia and Peru  

The  EU  is  the  second  largest  trading  partner  for  Colombia  and  third  largest  for  Peru. 
Bilateral trade between the EU and Colombia has decreased by 23.5% and the EU and 
Peru by 11% since the FTAs started to be applied5. This can mainly be attributed to the 
economic  slowdown in  Latin America and the  fall in  commodity  prices on the global 
market, which has affected exports of both countries.  

However, the FTA had a stabilising effect: the overall decrease of these two countries' 
trade with the world during the same period (approximately 36% for Colombia and 18% 
for  Peru)  is  greater  than  the  decrease  of  trade  with  the  EU.  It  is  safe  to  assume  that 
without the FTA the decrease of trade with the EU is likely to have been even greater. 

EU  exports  to  Colombia  increased  by  18%  during  the  two  first  years  of  the  FTA 
application,  but  dropped  by  17%  in  2016  due  to  sluggish  demand.  EU  imports  from 
Colombia decreased by 37.5% since the start of the application of the FTA.  

In  the  case  of  Peru,  compared  to  2012,  EU  exports  have  increased  by  4%,  whereas 
imports have dropped, also by 4%, by the end of 2016. 

However,  regardless  of  the  modest  overall  development  of  trade,  EU  exports  of 
agricultural products went up considerably to both markets, with increases of 82% to 
Colombia and 73% to Peru. The same applies to EU imports from Colombia and Peru, 
with an increase of 33%  from Colombia (45% for coffee), and 19% from Peru (120% for 
fruits, 30% for fish and molluscs, and 226% for cocoa). 

In  the  same  period,  imports  in  raw  materials  and  minerals  dropped  from  these  two 
countries. 

5 EU-Peru FTA applied since March 2013, and EU-Colombia FTA – since August 2013. 

8 

 
 
                                                 
Luxembourgish beer in Colombian bars 

The  EU's  trade  agreement  with  Colombia  and  Peru  helped  Luxembourg's  brewery 
"Brasserie  Nationale"  known  for  its  Bofferding  beer  to  start  exporting  to  Colombia,  a 
market  100  times  bigger  than  that  of  Luxembourg.  Thanks  to  the  agreement,  the 
company deals with all export requirements directly without having to call on experts or 
negotiate with middlemen whenever it sends a container to Colombia. 

Strong  exports  to  Colombia  have  boosted  the  brewery's  growth  and  overall  it  now 
exports 34 000 hectolitres of beer a year.  

Austrian wine makes a splash in the Andes 

Rainer  Wess  winery  is  located  in  the  Wachau  Valley  in  Austria.  It  has  been  producing 
wine since 2003 and exports 65% of its produce to more than twenty countries.  

The EU trade agreement with Colombia and Peru enabled the company to benefit from 
lower  trade  tariffs  and  a  lighter  administrative  burden.  Its  wine  is  now  gaining 
popularity in some of the best restaurants in Lima, the Peruvian capital. 

2.1.3.  Central America  

Regarding the FTA with Central America6, trade has been on the increase. EU exports 
have grown by 22%, while imports from five Central American countries have increased 
by 18.3%.  

The  only  exception  is  Costa  Rica,  which  is  suffering  from  relocation  to  Asia  of  its 
previously  major  exporter  of  IT  components.  Consequently,  Costa  Rican  exports  of 
office and telecommunication equipment decreased by almost 94% in 2015. Its exports to 
the EU decreased by 40% that year, and this also brought the total trade flows between 
the EU and Central America to a negative of 0.78%. 

The main destination of EU exports in Central America is Costa Rica (25%), followed by 
Panama (24%) and Guatemala (22%). 

Belgian coffee roaster creates partnerships around the globe 

Established in 2001, the Belgian coffee roaster OR has since expanded into international 
markets, with the conviction that the best coffee beans come directly from farmers.  

EU trade agreements with countries in Central and South America have made it easier 
for European firms to supply coffee from that region. Moreover, by requiring exporters 
from  those  countries  to  meet  EU  standards  on  working  conditions  and  environmental 
protection, the agreements have also benefited local people.  

6 FTA has been provisionally applied since 1 August 2013 with Honduras, Nicaragua and Panama, since 1 
October 2013 with Costa Rica and El Salvador, and since 1 December 2013 with Guatemala – covering 
all six partners on the Central America side. 

9 

 
 
                                                 
2.2.  Tariff-rate quotas (TRQs) 

Imports of goods that are subject to tariff-rate quotas will be charged lower import duties 
within the agreed quantities. Beyond those quantities, the import duty will be higher. 

2.2.1.  Colombia and Peru  

Both Colombia and Peru use their TRQs for sugar. Peru also increasingly uses quotas 
for sweetcorn and garlic, whereas for other products the tariff rate quotas are little used.  

Overall, the EU used its tariff rate quotas established by the agreement to a large extent. 
However, for some products the utilisation rate is very low, for example, only 7.9% of 
the  total  quota  was  used  for  cheese  exports  to  Colombia,  and  4.3%  to  Peru;  and  only 
3.8% of the total quota for sugar confectionary exports to Colombia.  

2.2.2.  Central America  

Central America only used its tariff-rate quotas for sugar and rum, while other tariff rate 
quotas remained unused.  

The EU was granted tariff rate quotas for four products, but the use remains low: 26% 
of the total quota used for cured hams, 14% for powdered milk, 44% for cheese and only 
4.9% for processed swine meat.  

2.3. 

Preference utilisation rate  

The preference utilisation rate tells us the extent to which businesses are using the tariff 
preferences which an EU FTA offers them.  

It  takes  the  total  imports  from  a  partner  country  into  the  EU  (or  vice  versa)  that  were 
eligible for preferentially reduced customs tariffs. And it indicates the share of those total 
imports for which the reduced tariff was actually used.7 

Assessing how much EU exporters use tariff preferences agreed in FTAs is an important 
measure of FTAs' effectiveness.  

2.3.1.  South Korea  

The  preference  utilisation  rate  for  EU  exports  to  Korea  was  71%  in  2016,  the  highest 
rate  so  far.  This  compares  to  68%  in  2015,  and  65%  in  2014  and  2013.  The  use  of 
preferences  in  agricultural  products  was  higher  than  in  industrial  products  (86%  vs. 
64%). The highest overall preference utilisation rates concern transport equipment and 
live animals & animal products (93%). The use of reduced tariffs was below 50% for 
EU exports of mineral products, pearls & precious stones, base metals and machinery.  

In 2016, Korean exporters used tariff preferences with regard to 87% of their eligible 
exports.  The  preference  utilisation  rate  was  above  90%  for  mineral  products,  transport 
equipment and plastics & rubber, whereas 9% for wood and 34% for pearls. The Koreans 
used  reduced  tariffs  for  machinery  much  more  than  the  EU  exporters  to  Korea  (with 
preference utilisation rate 72% vs. 48%). 

7 See a more detailed explanation in annex 3. 

10 

 
                                                 
2.3.2.  Colombia and Peru  

Based  on  Colombian  statistics,  preference  utilisation  rate  for  EU  exports  to  Colombia 
amounted to 70.6% in 2016 (compared to 50.7% in 2014). No data is available for Peru.  

For  the  exports  from  Colombia  and  Peru  to  the  EU  market,  over  95%  of  eligible 
exports takes place under preferential rates. 

2.3.3.  Central America  

For  Central  America,  statistics  on  EU  exports  were  only  available  in  Costa  Rica:  only 
16.6% of the eligible EU exports to Costa Rica were benefitting from the FTA.  

In the case of Costa Rican exports to the EU, the rate was 92%. 

2.4. 

Services and investment  

2.4.1.  South Korea  

EU services exports to Korea have increased by 49% since the start of the application of 
the FTA, even though in 2015 exports decreased by 7%.  Services imports from Korea 
have also increased by 32% in total, and 7.3% in 2015.  

EU  investment  stocks  in  Korea  have  increased  by  32.8%  since  the  start  of  the 
application of the FTA, whereas the Korean stocks in the EU have increased by 60%. EU 
stocks in Korea (EUR 49.7 billion in 2015) are about 2.5 times the Korean stocks in the 
EU (EUR 20.9 billion in 2016). 

2.4.2.  Colombia and Peru 

In  the  case  of  Latin  American  countries,  small  developments  can  be  observed.  EU 
services exports remained stable in the case of Colombia and increased by 11% to Peru. 
Imports from Colombia went up by 3% and decreased by 6% in the case of Peru.  

The EU investment stocks increased by 4% in Colombia and by 15% in Peru. The EU is 
the biggest foreign investor in both countries.  

2.4.3.  Central America  

Total  EU  trade  in  services  with  Central  America  decreased  by  3%.  There  were  great 
fluctuations in exports and imports from different Central American countries, but in the 
case of Costa Rica and Panama the services trade increased in both directions. 

In  this  region,  Panama  is  EU's  largest  trading  partner  in  services  (53%),  followed  by 
Costa Rica (21%) and Guatemala (13%). 

2.5. 

Implementation bodies  

New  generation  FTAs  have  a  comprehensive  structure  of  implementation  bodies.  A 
range  of  sub-committees  and  working  groups  meet  annually  and  report  to  a  Trade 
Committee  (or  an  Association  Committee  in  the  case  of  Central  America).  Trade 
Committees often held at the ministerial level take stock of the developments in all areas 

11 

 
and  discuss  FTA  implementation  problems  identified  with  the  objective  of  finding 
solutions to them. 

2.5.1.  South Korea  

The main issues raised in the Trade Committee with Korea in the reporting period were 
sanitary  and  phytosanitary  (SPS)  issues,  namely  market  access  for  beef,  and 
regionalisation concerning exports of pork, but those issues still need to be addressed. On 
the  other  hand,  good  co-operation  with  Korea  on  animal  welfare  is  an  example  to 
follow. The experience on SPS matters with Korea illustrates the importance of having 
clear and detailed SPS chapters in FTAs. 

In the area of intellectual property protection, public performance rights is still an open 
issue, as well as adding new geographical indications (GIs) for protection under the FTA, 
which has not been successful despite EU's requests since 2014. 

Trade  and  sustainable  development  was  also  extensively  discussed  with  a  focus  on 
ratification and implementation of International Labour Organisation (ILO) conventions 
and protection of labour rights by Korea. Regretfully, these discussions have not yet led 
to the resolution of the identified problems.  

The FTA also contains clear transparency provisions on public procurement that would 
allow  monitoring  the  effective  market  access  of  EU  companies  in  Korea.  However, 
Korea  has  not  yet  submitted  the  data  on  public  procurement  contracts  granted  to  EU 
companies.  This  will  be  addressed  during  the  next  meetings  of  the  Government 
Procurement Working Group.  

2.5.2.  Colombia and Peru 

In  2016,  good  progress  was  made  by  Colombia  in  addressing  sanitary  and 
phytosanitary  issues  (i.a.  implementation  of  the  single  entity  approach,  prelisting 
procedure),  as  well  as  the  discriminatory  regime  for  spirits  with  the  adoption  of  a  new 
law that entered into force on 1 January 2017. EU exports of spirits to Colombia in 2016 
were worth EUR 43.7 million, representing 12% of the total EU agricultural exports to 
Colombia.  Progress  was  also  made  by  Peru  in  the  area  of  SPS,  although  some  further 
headway is still necessary. 

The  regionalisation  principle  was  set  out  in  the  SPS  chapter  and  applied  by  both 
Colombia and Peru for their imports from the EU. 

Discussion  on  market  access  to  government  procurement  at  sub-central  level  in 
Colombia moved in a positive direction. 

In Peru, problems remain such as discriminatory treatment of imported spirits, as well as 
with regard to public performance rights.  

Enforcement  of  geographical  indications  remains  of  concern  in  both  countries.  The 
issue  of  direct  shipment  where  the  EU  wants  to  retain  the  FTA  preferences  for 
consignments that are split while in transit also remains open. 

12 

 
2.5.3.  Central America  

In the case of Central America, the main issues relate to: 
  enforcement of geographical indications (in particular in Guatemala and Honduras),  
  government procurement (Panama),  
 
 

tax discrimination for beer (Costa Rica), and  
implementing commitments towards greater regional integration concerning certain 
technical regulations.  

13 

 
 
 
3.  DEEP  AND  COMPREHENSIVE  FREE  TRADE  AREAS  –  UKRAINE,  MOLDOVA, 

GEORGIA 

Ukraine,  the  Republic  of  Moldova  (Moldova)  and  Georgia  concluded  respective 
Association  Agreements  with  the  EU.  These  agreements  provide  for  the  deepening  of 
political  association  and  gradual  economic  integration  between  the  EU  and  these 
Eastern partners. 

The  Deep  and  Comprehensive  Free  Trade  Areas  are  the  economic  pillars  of  the 
Association  Agreements  and  establish  conditions  for  enhanced  economic  and  trade 
relations.  They  provide  for  a  broader  progressive  approximation  of  partners' 
legislation to that of the EU.  

The  purpose  of  DCFTAs  is  to  create  a  new  framework  and  climate  for  trade  and 
investment with  these  partners and contribute  to economic  restructuring,  modernization 
and diversification of the economies of the countries concerned. Due to the objective of 
gradual  integration  into  the  EU's  internal  market,  DCFTAs  go  beyond  "new 
generation" FTAs and represent a unique type of trade agreement. 

The DCFTAs have two main components: 

1)  gradual, reciprocal  market  opening (elimination/reduction of tariffs and  elimination 
of  non-tariff  barriers  to  trade)  by  both  parties  with  some  asymmetry  benefiting  the 
Eastern partners; and  

2) far-reaching regulatory approximation to EU law in trade-related areas. 

3.1.  Trade flows  

The  EU  is  the  largest  trading  partner  of  all  three  countries,  accounting  for  55% 
(Moldova), 41% (Ukraine) and 30% (Georgia) of their total trade in 2016. The EU has a 
positive trade balance with all three countries. 

3.1.1.  Ukraine  

Both EU exports to and imports from Ukraine grew by 17.6% and 1.9%, respectively, 
in 2016 - the first year of application of the DCFTA8. This is largely due to a recovery of 
the Ukrainian economy which is slowly climbing back from a recession in 2015, when 
GDP  shrunk  by  9.9%  and  the  net  foreign  direct  investments  decreased  from  EUR  8.2 
billion in 2012 to EUR 3 billion in 2015. 

3.1.2.  Moldova  

In  2014-2016  EU  exports  to  Moldova  decreased  by  13%  due  to  declining  domestic 
demand, internal problems (fraud in the banking sector) and economic difficulties in the 
region. In the same period, EU imports from Moldova grew by 13.5%, most notably in 
agricultural products but also machinery, furniture and clothing. 

8  EU-Ukraine  DCFTA  was  provisionally  applied  since  1  January  2016.  DCFTAs  with  Georgia  and 

Moldova were provisionally applied since 1 September 2014. 

14 

 
                                                 
3.1.3.  Georgia  

EU  exports  to  Georgia  in  2014-2016  increased  by  2.8%,  while  EU  imports  from  this 
country  declined  by  16.4%.  The  drop  in  global  prices  for  commodities  was  one  of  the 
main causes of declining value of exports from Georgia as they consist predominantly of 
raw materials and semi-finished products. However, in volume terms the level of exports 
remained stable. 

The  EU  geodesy  and  topography  benefits  from  Ukrainian  drones  and  post-sale 
services 

The  Kyiv-based  company  Drone.ua  produces  unmanned  aerial  vehicles,  or  drones, 
which are sold in Europe. It has established a joint venture in Lithuania called UAV.tools 
to spread its technology in fifteen European countries. It will soon open offices in the UK 
and Moldova. 

The  company  not  only  exports  aircrafts,  but  also  provides  technical  support,  training, 
and  data  processing.  In  Ukraine,  the  drones  are  used  in  agriculture,  while  in  the  EU 
they’re commonly used for geodesy and topography. 

Ukraine strengthens its position in Europe in the field of animal nutrition 

In May 2017, a Ukrainian company Kormotech LLC was included in the list of top-50 pet 
food  manufacturers  in  the  world  and  in  Europe  (there  are  only  3  companies  from 
Central and Eastern Europe on this list). 

Helped by  the  DCFTA, over  the past two years, the company’s products (feed for cats 
and dogs) have begun to conquer new markets in the EU as  their production facilities 
meet European food safety and quality standards. Kormotech LLC produces 16 000 tons 
of wet and 30 000 tons of dry ready-made feed per year and exports it to 15 countries. 

3.2.  Tariff rate quotas 

TRQs for agricultural products were not used in full by all three DCFTA partners due to 
non-compliance with EU sanitary and phytosanitary requirements.  

In the case of Ukraine, 11 of the total of 36 TRQs were fully used.  

In the case of Moldova TRQs of two out of the total of six product groups were used.  

For Georgia, the only duty free tariff quota, granted for fresh and chilled garlic, has also 
not been used. 

3.3. 

Preference utilisation rates  

These rates are only available for exports of the Eastern partners to the EU. They are very 
high, around 80% for Georgia and 90% for Ukraine and Moldova. 

15 

 
 
3.4. 

Services and investment  

As regards services, both EU exports to and imports from Moldova increased by 3% 
and  17%,  respectively,  in  2014-2015,  whereas  in  the  case  of  Georgia  they  remained 
stable. 

EU  investment  flows  to  and  from  Moldova  also  increased  in  both  directions  (EU 
investment  into  Moldova  by  127%,  Moldovan  investment  into  the  EU  by  67%),  while 
remaining very low in absolute figures. In the case of Georgia investment flows remained 
stable.9 

3.5. 

Implementation bodies  

Regulatory  approximation  is  a  key  component  of  the  DCFTAs'  implementation.  This 
was  also  the  main  focus  in  the  meetings  of  the  implementation  bodies  –  Association 
Committees in Trade Configuration and the four thematic Sub-committees, on: 
  Customs, 
  Geographical Indications, 
  Sanitary and Phytosanitary Measures, and 
  Trade and Sustainable Development.  

As  regards  SPS,  a  comprehensive  strategy  has  been  jointly  adopted  by  the  EU  and 
Moldova, and a legislative roadmap in the case of Georgia. A formal adoption of the SPS 
strategy with Ukraine is foreseen in the second half of 2017. These documents become 
an  integral  part  of  the  Association  Agreements/DCFTAs  and  will  guide  the  partner 
countries in legal approximation and institutional capacity-building in the coming years.  

Similar reform plans have been adopted in technical regulations and standards. In both 
these  areas,  however,  administrative  capacity  will  need  to  be  reinforced  in  all  three 
countries  in  order  to  carry  out  the  remaining  work  and  to  ensure  effective  law 
implementation and enforcement.  

Regarding public procurement, comprehensive reform strategies have been prepared in 
all  countries.  It  is  also  noted  that  both  Moldova  and  Ukraine  joined  the  WTO 
Government Procurement Agreement in 2016. 

In  terms  of  trade  irritants,  Ukraine  applied  (between  July  2016  and  July  2017)  the 
export  duties  on  metal  scrap  and  still  applies  DCFTA-  and  WTO-incompatible  wood 
export  ban. Regarding the protection of EU Geographical Indications (GIs)  in  Georgia, 
the  two  sides  made  major  efforts  to  remove  from  the  market  the  names  which  are  in 
conflict with GIs protected in the EU. In Moldova, problems are encountered regarding 
the protection of certain EU GIs, such as Prosecco, and the existence of non-transparent 
and discriminatory measures affecting the electricity distribution sector. The elimination 
of  these  irritants  is  being  discussed  in  the  DCFTA  implementation  bodies  and  at  the 
political level. 

Regulatory approximation and institutional capacity building will require continuous 
efforts  by  the  authorities  of  the  partner  countries  and  the  EU.  The  effective 

9 No data is available for EU-Ukraine trade in services for the period since the application of the DCFTA. 

16 

 
                                                 
implementation of the DCFTAs and facilitation of trade between the EU and the partners 
depends on it. 

The  EU  delivers  financial  and  technical  support  to  the  reforms  and  administrative 
capacity building in trade-related areas, including: 
  elimination of technical barriers to trade (through alignment of standardization and 
metrology infrastructure; conformity assessment system (including accreditation of 
assessment bodies) and market surveillance system to the EU standards), 
introduction of competition rules (including on state aid), 

 
  approximation of sanitary and phytosanitary measures to the EU system (notably in 

institutional capacity building in food safety control), 
  protection and enforcement of intellectual property rights, 
  alignment of public procurement system with the aim of reciprocal market opening, 
  promotion of producers' organizations and value chain optimization  
  SMEs' development. 

Regarding the latter, the three countries benefit from the DCFTA Facility for Small and 
Medium-sized Enterprises (EUR 200 million for all three countries). 

17 

 
 
 
 
4.  ECONOMIC  PARTNERSHIP  AGREEMENTS  -  AFRICAN,  CARIBBEAN  AND  PACIFIC 

(ACP) COUNTRIES  

the Caribbean, the Pacific, the Eastern and Southern African (ESA) sub-region, 

In 2016 the number of applied Economic Partnership Agreements (EPAs) rose to seven, 
covering 28 countries in: 
 
  Cameroon in Central Africa, 
 
  Ghana and Côte d'Ivoire in West Africa. 

the Southern Africa Development Community (SADC) EPA Group, 

4.1. 

State of play of the agreements 

4.1.1.  SADC  

A milestone was reached in June 2016, when the EU signed an EPA with six countries 
of the Southern African Development Community (SADC), an agreement which entered 
into provisional application in October 2016. In addition to classic trade provisions, the 
participating  SADC  countries  (Botswana,  Lesotho,  Namibia,  South  Africa,  Swaziland 
and  Mozambique)  as  well  as  the  EU  have  committed  to  a  partnership  centred  on 
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.  In  2016 only  Mozambique  (the seventh SADC country) 
had not yet ratified the agreement and did not apply it. 

4.1.2.  West Africa  

The provisional application of the EPA with the West Africa region is held back by the 
missing signatures of three (out of 16) countries. In the meantime, two countries in this 
region,  Côte  d'Ivoire  and  Ghana,  signed  and  ratified  their  individual  EPAs10.  Côte 
d'Ivoire began applying its EPA in September 2016 and the European Parliament gave its 
consent to the Agreement with Ghana on 1 December 2016 allowing for its provisional 
application. 

4.1.3.  East African Community (EAC)  

Here signatures of three countries (out of five) were still needed before obtaining the 
consent of the European Parliament and starting provisional application.  

4.2.  Trade flows  

The  evolution  of  trade  in  applied  EPAs  covered  by  this  Report  (with  Caribbean 
(Cariforum),  Pacific,  ESA  partners  and  Cameroon)  paints  a  mixed  picture.  Some 
countries, such as Cameroon and Fiji, have not been implementing EPAs for long enough 
to draw any firm conclusions. But other countries have witnessed fluctuations in trade 
in  both  directions  in  the  past  years,  in  some  cases  are  linked  to  commodity  price 
fluctuations affecting exports of EPA partners.  

10 Both individual EPAs provide for their replacement by the West Africa – EU EPA when the latter will 

enter into application. 

18 

 
                                                 
Some countries have been on a consistently upward trend in exports to the EU, notably 
Madagascar and the Dominican Republic. 

19 

 
20 

 
 
 
In all ACP regions, except the Caribbean, the EU's partner countries in EPAs are enjoying a 
positive trade balance with the EU. 

In  the  Caribbean,  exports  to  the  EU  have  trended  downwards  since  2013,  with  some 
exceptions.  There  was  a  23%  drop  in  2016,  linked  to  falling  commodity  prices  hitting 
Trinidad & Tobago's exports. 

4.3. 

Investment  

EU investment in the territories  of EPA partners has  been  increasing, except in the case of 
Cariforum,  where  EU investment has  remained  stable. Cariforum investment in  the EU has 
increased. 

Malagasy textile for EU consumers 

Madagascar's  textile  and  apparel  manufacturing  sector  has  benefitted  from  the 
conclusion of the EPA with duty-free, quota-free access to the EU and improved rules of 
origin. After its EPA started to apply in 2012, Madagascar saw a rise in exports to the EU 
by almost 15% per year. In 2015, textiles and apparel were its main exports worth more 
than EUR 300 million and accounted for almost one third of Madagascar's total exports 
to the EU. 

One of the beneficiaries is the local textile company Epsilon. It has increased its number 
of  employees  from  an  initial  100  to  2,000.  The  EPA  has  also  helped  to  create  better 
living conditions for employees and their families. 

4.4.  EU support for EPA implementation 

It  is  important  to  develop  monitoring  mechanisms  to  follow  the  functioning  and  impact  of 
EPAs  and  to  make  sure  that  development  cooperation  and  trade  related  assistance  are 
supporting implementation of EPAs. 

In  the  chapters  on  economic  and  development  cooperation  in  several  EPAs,  the  EU  has 
committed  to  cooperating  with  the  countries  concerned,  mainly  through  financial  and 
technical assistance.  

The  EU  has  coordinated  EPA  implementation  with  development  policy,  cooperation  and 
Aid for Trade through discussions with the competent authorities at country level, the private 
sector and civil society groups. 

Together they have developed "National EPA Implementation Plans" (NEIPs). These aim 
at identifying countries' needs in terms of: 
  compliance, management and monitoring of EPAs, 
  communication about the EPAs, 
  promotion of a business environment enabling countries and businesses to fully reap the 

benefits of the agreements. 

Such promotion includes implementation of the necessary reforms in order to: 
 
  attract investment, and 

foster growth, economic diversification and local value added, 

21 

 
  support job creation. 

On this basis, the EU is identifying needs, and exploring links between the various possible 
sources of financing. They may include funding from: 
  different EU development assistance instruments at national, regional and intra-ACP 

levels, 

  EU Member States, 
 
  other development finance institutions, and other possible donors.  

the European Investment Bank, 

All  in  all,  NEIPs  will  help  integrate  responses  to  EPA  implementation  challenges  and 
opportunities in a coherent and more impactful manner. 

4.5.  Development assistance  

Development  assistance  has  been  earmarked  for  the  different  regions  and  countries 
implementing  EPAs,  in  addition  to  other  sources  of  EU  funding  more  indirectly  targeting 
EPA-related needs.  

In  the  Caribbean,  over  EUR  100  million  were  allocated  in  the  regional  programme  for 
Cariforum  under  the  11th  European  Development  Fund  to  strengthen  regional  co-operation 
and integration processes.  

In the Pacific, regional trade, business environment and private sector involvement were also 
ranked as priorities in the regional envelope of EUR 50 million. 

In  the  ESA  region,  envelopes  of  EUR  10  million  were  allocated  to  each  of  the  four  EPA 
countries, under the Eastern and Southern Africa regional programme.  

In West Africa, preparations were made to provide Ghana and Côte d'Ivoire with funds from 
the  regional  competitiveness  programme.  This  will  include  specific  EPA  implementation-
related activities.  

In Central Africa, Cameroon has been assessing how to use funds made available under the 
EUR 211 million regional envelope for regional integration. 

In  the  ACP  countries  in  general,  the  EU  has  made  particular  efforts  to  stimulate  agri-food 
trade and investments so as to help them gain from EPAs.  

4.6. 

Institutional activity  

There was significant institutional activity under the EPAs covered by this Report: 
  EPA governing bodies for Cariforum, Cameroon and ESA (but not the Pacific) held their 

annual meetings, 

  Civil society representatives met in the second meeting of the Cariforum-EU EPA Joint 

Consultative Committee (Brussels, April 2016). 

More  details  about  these  meetings  can  be  found  in  the  Staff  Working  Document 
accompanying this Report. 

22 

 
5.  "FIRST GENERATION" FTAS  

The  EU  concluded  "first  generation"  FTAs  before 
the  2006  "Global  Europe" 
Communication.  These  FTAs  typically  cover  only  trade  in  goods,  and  even  agricultural 
products were often only added to their scope at a later stage.  

the Customs Union with Turkey,  

The FTAs under this category are rather diverse, and include: 
 
  FTAs with Iceland, Norway11 and Switzerland dating from the 1970s,  
  FTAs with the Faroe Islands, Mexico, Chile and South Africa, 
  FTAs with the EU's Mediterranean partners12 as part of Association Agreements 

concluded with them in the 1990's.13 

There  are  plans  to  upgrade  most  of  these  FTAs  to  comprehensive  FTAs  that  correspond 
better to the more complex economic exchanges that take place today between the EU and its 
partners.  Negotiations  to  upgrade  the  FTA  with  Mexico  are  ongoing,  and  have  also  started 
with Morocco and Tunisia. Preparations are taking place to start negotiations to modernise 
the customs union with Turkey and the FTA with Chile, whereas the FTA with South Africa 
has been superseded by the EPA with SADC.  

Exports of Traditional Italian pasta to South Africa 

Pasta Astorino, a family business from Calabria, produces and sells pasta in Italy and 
abroad.  The  EU-South  Africa  trade  agreement  entered  into  force  in  2000.  It  led  to 
considerable  increases  in  European  pasta  exports  to  South  Africa,  both  in  terms  of 
value (43%) and quantity (67%). 

Thanks to the EU-South Africa trade agreement, Pasta Astorino started doing business 
in South Africa and exported one ton of pasta in 2015. Local businesses supplying the 
company have also benefited from the EU trade agreement. 

5.1.  Trade flows  

The development of trade overall has been positive, as the two way trade has increased in all 
cases during the application of FTAs.  

5.1.1.  Switzerland  

Switzerland  is  EU's  third  largest  trading  partners,  and  both  EU  exports  and  imports  have 
grown by 96% since 2002. 

11  The  European  Economic  Area  (EEA)  agreement  of  1992  with  Iceland  and  Norway  enhanced  the  free 

movement of goods, services, investment and people across that area. It is not subject to this Report. 

12 Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestine, and Tunisia. 
13 See the full list in annex 2. 

23 

 
                                                 
5.1.2.  Turkey  

Turkey  is  EU's  fifth  largest  trading  partners.  Over  the  application  period,  EU  exports  to 
Turkey have grown by 185%, and imports 160%. EU exports to Turkey have however been 
stable  since  2014,  whereas  imports  continue  to  grow  which  has  led  to  a  decrease  in  EU's 
trade balance from EUR 20 billion to EUR 10 billion.  

5.1.3.  Chile  

As regards Chile,  EU exports have increased by 170% since 2002, almost  three times  more 
than  imports,  which  increased  by  50%  over  the  period.  However,  due  to  the  many  FTAs 
concluded by Chile with other trading partners after the EU-Chile FTA, over time the EU has 
progressively lost market share in Chile to other trading partners.14 

Exporting Austrian dough to Mexico 

Backaldrin is a family-owned baking ingredients manufacturer in Asten, Upper Austria. 
The company is the inventor of the Kornspitz grain roll and exports its products to more 
than  100  countries.  The  2001  EU-Mexico  trade  agreement  helped  Backaldrin’s  entry 
into the Mexican market.  

Backaldrin  now  exports  80%  of  its  produce  and  strong  international  business  has 
ensured continued investment and job creation. In 2013 Backaldrin opened a centre for 
innovation  and  technology  and  expects  to  create  50  jobs  for  higher-skilled  workers  in 
the near future. 

5.1.4.  Mediterranean countries  

The  agreements  with  Mediterranean  countries  provide  for  reciprocal  liberalisation  of  all 
trade  in  industrial  goods  and,  to  different  degrees,  of  trade  in  agricultural,  processed 
agricultural, and fisheries products.  

These  agreements  typically  include  elements  of  asymmetry,  for  example,  long  transitional 
periods  and/or 
trade.  This  benefits 
Mediterranean  partners  and  is  primarily  aimed  to  develop  the  region  and  better  integrate  it 
into the EU market. 

liberalisation  of  agricultural 

less  far-reaching 

For  most  of  our  partners  in  the  region,  the  EU  is  the  leading  trade  partner.  Mediterranean 
countries are highly dependent on the EU for both imports and exports. 

While trade has grown on both sides, in most countries EU exports grew faster than imports 
from  these  partners.  By  exception,  exports  from  Morocco  and  Tunisia  to  the  EU  have 
increased more than EU exports to their market since the entry into force of the agreements. 
Countries  that  have  progressed  most  in  structural  reforms  and  diversification  such  as 
Morocco, Tunisia and Israel have relatively smaller and steadier trade deficits.  

14 To preserve and reinforce its market position in Chile, the EU and Chile are currently examining the possibility 

to negotiate the modernisation of the existing agreement. 

24 

 
                                                 
Algeria is also a special case as  more than 90% of its exports to the EU consist of mineral 
fuels,  which  has  led  to  a  year-on-year  trade  surplus  up  to  2012.  Since  2012,  however,  the 
value  of  these  exports  has  dropped  considerably  in  line  with  the  fall  in  global  oil  prices. 
Since 2015, Algeria has registered a trade deficit with the EU. 

Exporting more Spanish biscuits to Algeria 

Galletas Gullón is one of Europe's leading biscuit manufacturers. It exports its products 
to more than 100 countries. The EU-Algeria trade agreement, which entered into force 
in 2005, lowered tariff barriers, which had previously been as high as 30%. That made it 
easier for European companies like Galletas Gullón to export their goods there.  

Over  the  last  five  years,  Galletas  Gullón  has  recorded  an  increase  of  36%  in  sales  in 
Algeria, reaching EUR 2 million in 2015. Continued demand has ensured Galletas Gullón 
has now become the largest biscuit exporter to Algeria, an achievement the company 
believes would not have been possible without the FTA. 

5.2.  Tariff-rate quotas  

In general, TRQs are not well utilised, or are only used for a limited number of products. The 
exception  is  Israel,  which  is  mostly  filling  its  TRQs.  Many  Mediterranean  partners  face 
challenges  exporting  into  the  EU  market  due  to  the  EU's  regulatory  requirements  and 
standards. In many cases, the regulatory environment in partner countries does not correspond 
to EU requirements.  

For  Mediterranean  partners,  regional  instability  has  had  an  economic  impact.  Examples  of 
difficulties these partners face include:  
 
 
 
  difficulties in attracting foreign investment at an unstable time. 

the closure of traditional trade routes, 
the challenging political situation, 
the presence of a high number of refugees, and  

The effects of the Syrian refugee crisis are particularly acute in small and fragile economies 
such  as  Jordan  and  Lebanon.  The  EU  is  exploring  ways  to  reinforce  economic  cooperation 
and  trade  related  assistance  aiming  at  ensuring  Mediterranean  countries  benefit  more  from 
trade liberalisation with the EU. The July 2016 Rules of Origin simplification initiative with 
Jordan,  linked  to  Syrian  refugee  employment,  is  an  example  of  the  EU's  willingness  to 
respond to the specific challenges faced by Mediterranean partners. 

5.3. 

Preference utilisation rates  

These  are  not  available  for  all  countries  regarding  EU  exports.  The  rates  available  are 
however much lower for EU exports than they are for the imports from the FTA partners to 
the  EU.  The  preference  utilisation  rates  for  the  "first  generation"  FTA  partners  vary 
between  96%  (imports  from  Tunisia  and  Egypt)  and  66%  (imports  from  Norway)  with  an 
average of 84%. For EU exports, it varies between 74% (exports to Lebanon and to Chile) 
and 23.5% (exports to Tunisia), with an average of 53%. 

25 

 
5.4. 

Services and investment  

In  general,  the  EU  is  either  the  largest,  or  one  of  the  top  partners  in  services  trade  and 
provider  of  investment  in  all  countries  concerned.  Evolution  of  trade  in  services  and 
investments has in general been positive. In recent years however the broader developments 
in  particular  in  the  Mediterranean  region  have  affected  some  countries'  services  trade, 
especially tourism. 

5.4.1.  Chile  

Services  are  not  covered  by  the  "first  generation"  FTAs,  except in  the cases  of  Mexico  and 
Chile. The EU exports of services to Chile increased by 27% and imports by 29% between 
2010 and 2015.  

Regarding  investment,  the  EU  is  the  largest  investor  in  Chile,  but  in  the  recent  years  EU 
investment has been decreasing, possibly due to the crisis in Chile's mining sector.  

5.4.2.  Mexico  

In  2010-2015,  EU  exports  of  services  to  Mexico  increased  by  54%,  while  EU  imports 
increased by 47%. 

In the case of Mexico, the average yearly investment flow originating in the EU has tripled 
since the FTA started to apply.  

5.5. 

Implementation bodies 

The "first generation" FTAs do not have a structure of implementation bodies as elaborate as 
the most recent FTAs, but an annual meeting to take stock of developments is planned and 
usually takes place. 

Issues that were raised in these meetings are very diverse, reflecting the specific situation of 
each partner country. Common topics addressed in several of these meetings were: 
  cumbersome customs procedures, 
 
  pharmaceutical products, 
  government procurement, and 
 

restrictions to trade in agricultural products, 

restrictions on foreign direct investment. 

In the case of Mediterranean countries, trade-related assistance was also discussed, with the 
focus  on  approximation  of  legislation  to  the  EU  provisions  in  particular  in  the  areas  of 
sanitary and phytosanitary measures, standards and conformity assessment. 

26 

 
 
 
6. 

IN FOCUS: TRADE AND SUSTAINABLE DEVELOPMENT CHAPTERS  

EU  FTAs  include  provisions  on  sustainable  development  such  as  adherence  to  key 
international labour and environmental standards and instruments, including in relation to 
timber  and  fish,  and  the  promotion  of  sustainable  production  and  Corporate  Social 
Responsibility. 

The  nature  and  extent  of  activities  under  the  Trade  and  Sustainable  Development  (TSD) 
Chapters  differ  between  partners  and  depends  on  the  time  that  such  chapters  have  been  in 
force. 

Under  the  Association  Agreements  with  Georgia,  Moldova  and  Ukraine,  trade-related 
provisions  have  only  been  applied  recently.  So  much  of  the  work  in  2016  was  to  establish 
institutions,  including  civil  society  mechanisms,  as  well  as  to  identify  priority  areas  of 
work.  

6.1. 

'New Generation' FTA activities 

The  longer  established  agreements  are  those  with  South  Korea,  Central  America,  and 
Colombia  and  Peru.  The  following  are  some  the  activities  undertaken  in  2016  under  these 
three agreements. 

A comparative study was undertaken on the implementation of the ILO Convention 111 on 
non-discrimination in the workplace in the EU and Korea (including workshops in Seoul and 
Brussels). 

Projects  have  been  ongoing  with  the  ILO  in  El  Salvador  and  Guatemala  to  strengthen  the 
implementation of the ILO fundamental conventions, focusing on: 
 
  collective bargaining and non-discrimination, and 
  child labour. 

freedom of association, 

There  has  been  continued  dialogue  with  Colombia  regarding  the  implementation  of  the 
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). 

Overall, there has been gradual progress in the implementation of the TSD Chapters. It has 
facilitated  and  provided  a  valuable  ground  for  regular  and  focused  dialogues  with  EU  trade 
partners  on  pertinent  trade-related  labour  and  environmental  issues  and  for  the  initial 
identification of TSD priorities and opportunities. 

6.2.  Government-to-government TSD meetings 

In  the  reporting  period,  these  were  held  with  Central  America,  Colombia  and  Peru,  Korea, 
Georgia, and Moldova. 

labour inspection (Colombia, Peru, Honduras, Moldova, Georgia),  

On the labour side, the topics discussed in 2016 included:  
 
  collective bargaining (Colombia, Guatemala),  
  violence against trade unions (Colombia),  
 
  child labour (Colombia, El Salvador, Guatemala, Panama, Georgia),  

freedom of association (El Salvador, Panama),  

27 

 
tripartite consultation15 (Georgia), and  

 
  health and safety at work (Colombia, Peru, Moldova).  

The main environmental issues discussed included:  

  CITES: 

o  Georgia, Moldova, 
o  crocodile and caiman skin trade from Colombia,  
o 
o  sharks and rays with Panama; 

timber (Dalbergia genus) with Guatemala and Panama,  

  combating climate change under the Paris Agreement: 

o  reduction of C02 emissions by industry in Costa Rica, 
o  ecosystems restoration, reforestation and fight against deforestation (in El 

Salvador, Honduras, Nicaragua, Georgia), 

o  Convention on Biological Diversity (in particular Nagoya Protocol) with Panama 

and Moldova. 

6.3.  Other meetings 

Open  meetings  between  government  and  civil  society  representatives,  including  workers 
and  employers'  representatives,  were  organised  back-to-back  with  the  governmental  TSD 
meetings.  The  EU  civil  society  consultation  groups  met  for  all  agreements  to  discuss 
implementation  of  the  TSD  Chapters,  with  the  European  Economic  and  Social  Committee 
providing the secretariat. 

6.4. 

State of play and challenges  

In general, the agreements seek to provide a useful framework for addressing issues that may 
arise regarding the interaction between trade, social and environmental objectives. 

But  the  work  on  TSD  has  yet  to  realise  its  full  potential16.  Further  efforts  will  have  to  be 
made  to  further  improve  labour  and  environmental  policies,  while  respecting  international 
commitments and aiming at a high level of protection.  

The  implementation  of  TSD  commitments  depends  on  a  long-term  engagement  with  trade 
partners  and  on  close  coordination  between  different  levels  of  authorities  responsible  for 
policies  in  areas  such  as  labour  and  the  environment.  These  do  not  always  perceive  or 
understand  the  link  between  those  policies  and  international  trade.  Engagement  with  civil 
society organisations, including workers' and employers' representatives, is an important part 
of this process. They should play an ever greater role in monitoring implementation. 

During 2016, the Commission worked to implement TSD Chapters in FTAs more effectively. 
The  Commission  sought  to  better  engage  with  businesses  and  other  relevant  civil  society 

15 Consultation between businesses, labour, and state affiliations. 
16  The  Commission  is  currently  engaged  in  comprehensive  discussions  with  the  European  Parliament,  the 
Council and stakeholders with a view to improving the effectiveness of the implementation and enforcement of 
trade and sustainable development provisions in our agreements. On 11 July 2017, the Commission issued a non-
paper 
at: 
http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155686.pdf 

debate. 

serves 

which 

basis 

this 

See 

the 

for 

as 

28 

 
                                                 
stakeholders,  as  well  as  to  improve  coordination  with  international  organisations,  in 
particular the ILO. 

The  Commission  aims  to  make  better  use  of  the  supervisory  and  monitoring  structures  of 
international  bodies,  such  as  the  ILO  and  the  Multilateral  Environmental  Agreements 
(MEAs)  as  a  primary  source  of  information  to  assess  the  effectiveness  of  TSD 
implementation. 

The  Commission  has  also  contracted  pilot  surveys  on  checking,  including  through 
consultations  with  social  partners,  the  state  of  play  of  the  implementation  in  law  and 
practice of the core labour standards in pilot countries (Colombia, Georgia and Guatemala). 
The Commissions intends to expand these surveys in 2018-2019. 

The  Commission  launched  a  mechanism  to  strengthen  its  cooperation  with  EU  Member 
States on implementation  of TSD  Chapters through a dedicated  expert group  on TSD. This 
group meets regularly and enables the exchange of information and coordination. Partnership 
with Member States and cooperation on TSD matters will intensify during 2017-2018.  

29 

 
 
 
7.  EX-POST EVALUATION OF THE IMPACT OF FTAS – CHILE AND MEXICO 

This  Report  outlines  the  state  of  play  of  implementation  of  the  FTAs  in  2016.  It  also  takes 
into account the data of the past few years for the sake of comparison. A thorough analysis of 
the impact of FTAs is carried out in ex-post evaluations. So far, these have been prepared for 
the  Chile  and  Mexico  FTAs.17  An  analysis  on  the  Korea  FTA  will  be  finalised  in  2017.  In 
addition, a general study on the impact of FTAs on animal welfare is currently being carried 
out. 

7.1.  Chile  

Here the study concluded that tariff cuts had had a significant impact on bilateral trade flows. 
Simulations showed that in the absence of an FTA, Chile's exports to the EU in 2009 would 
have been 20% lower, and EU exports to Chile in 2010 would have been cut by at least 40%.  

The study pointed at the EU's declining share in Chile's total trade since the entry into force 
of the Agreement, despite a substantial increase in bilateral trade flows. This suggests that, in 
the  absence  of  an  FTA,  EU  exporters  could  have  been  significantly  crowded  out  from  the 
Chilean market, due to the significant number of FTAs signed by Chile with other partners.  

As regards  services, the study concluded that EU services exports  had increased more after 
the entry into force of the FTA in sectors of higher degree of liberalisation in comparison to 
WTO GATS18 commitments. Chile's services exports to the EU had also performed relatively 
well in several sectors where FTA commitments went further than those made in GATS.  

The  ex  post  impact  assessment  highlighted  mixed  but  overall  marginal  impacts  on  natural 
resources  and  environmental  degradation.  The  increased  use  of  fertilizers  and  higher 
exports  of  molybdenum,  salmon,  molluscs  and  wood  products  have  contributed,  albeit  in  a 
limited way, to different forms of air and water pollution. However, these impacts were offset 
to some extent by higher environmental standards, required by the EU. 

The study also estimated the social impact mainly in Chile, since it concluded that the FTA 
did not cause any apparent social adjustment costs in the EU.  

In  the  agricultural  sector  in  Chile,  small  farm  households might  have  lost  out  to  relatively 
larger-scale farming  enterprises.  But  overall  they  had  benefited  from  the  increase  in  overall 
agricultural  income  and  from  reduced  inequality  in  terms  of  market  access  between 
agriculture and other sectors, brought about by the FTA.  

7.2.  Mexico  

Here  the  analysis  concluded  that  bilateral  trade  in  goods  between  the  EU  and  Mexico 
expanded significantly after the entry into force of the FTA, particularly with regard to non-
agricultural goods.  

The EU's agricultural exports still face high tariffs and significant SPS obstacles in Mexico. 

17 The evaluation of Chile FTA was prepared in 2012 by ITAQA Sarl and that of Mexico in 2016 by Ecorys. 

Final reports are publically available at: 
http://trade.ec.europa.eu/doclib/docs/2012/august/tradoc_149881.pdf, and 
http://trade.ec.europa.eu/doclib/docs/2017/august/tradoc_156011.pdf 

18 General Agreement on Trade in Services. 

30 

 
                                                 
Exports and imports more than doubled, with exports from the EU to Mexico having grown 
slightly faster than exports from Mexico to the EU. The EU’s share of Mexican exports was 
3.8% in 1999 and 4.9% in 2013. Mexico’s share of EU exports increased from 0.5% to 0.7%.  

In percentage terms, Mexico's GDP is estimated to be 0.34% higher due to the FTA and the 
EU’s GDP is estimated to be 0.01% higher. This asymmetrical effect is due to the difference 
in ranking of the two parties for each other as trading partners.  

Looking at bilateral trade flows, EU exports to Mexico show a slightly bigger increase, of 
19%, than Mexican exports to the EU, with an estimated increase of 15%.  

In services trade, a significant increase in bilateral trade flows is observed, but these changes 
are in line with developments in overall services trade.  

FDI flows between the two partners show a fluctuating pattern, not deviating much from the 
general trends in FDI flows.  

Employment,  human  rights,  changes  in  poverty  and  inequality  were  not  significantly 
affected by the FTA. If there were any changes, they were very small, but positive.  

The study could not conclude on the existence of any clear impact on the environment and, 
as  regards  labour  rights,  social  protection  and  social  dialogue,  no  clear  link  with  the  FTA 
was found.  

31 

 
 
 
8.  PREPARING TO IMPLEMENT FTAS EFFECTIVELY 

Following the experience of the Korea and Colombia-Peru FTAs in the early stages of their 
application, the Commission has learnt the importance of a thorough  preparation necessary 
for a smooth implementation of the agreement. So in future, once the Commission concludes 
negotiations,  alongside  the  necessary  steps  on  the  EU  side,  it  will  start  preparing  an 
implementation roadmap. This will list the legislative and administrative measures that the 
FTA partner country needs to adopt to comply with its FTA commitments.  

It  will  agree  and  follow  up  with  the  partner  countries  on  the  implementation  of  these 
roadmaps to ensure the effective application of the agreements. In the cases of Vietnam and 
Singapore the Commission has already started work on implementation roadmaps. In the case 
of  developing  and  least  developed  countries,  implementation  roadmaps  will  also  include 
measures to help them make better use of the opportunities offered by EU trade agreements, 
in line with this year's review of the EU Aid for Trade strategy. 

EU  delegations  in  the  FTA  partner  countries  have  a  key  role  in  the  FTA  implementation 
work.  They  are  best  placed  to  monitor  domestic  developments  that  are  relevant  for  the 
effective operation of an FTA. They have close contacts with Member States' representatives, 
local  business  associations  and  other  stakeholders,  with  whom  they  set  up  Market  Access 
Teams to follow up the removal of trade barriers. In FTA partner countries, Market Access 
Teams focus on FTA implementation as a priority. The EU delegations are also essential to 
follow up the implementation roadmaps. 

Furthermore, the Commission seeks to engage other institutions, Member States, business and 
non-business organisations to prepare for the effective start of application of FTAs. 

32 

 
 
 
9. 

INTENSIFYING OUTREACH  

Lack of awareness of FTAs has been identified as one of the main reasons why companies do 
not use FTAs. The Commission is therefore intensifying its efforts to bridge this gap: 
  Comprehensive information was produced on CETA19 and the Vietnam FTA20; 
  Exporters' success stories were identified and publicised online and in the media21; 
  Plans were laid out to: 

o 

improve provision of FTA-related information in the EU Market Access 
Database22 and  

o  make better use of other existing Commission tools and networks to disseminate 

FTA related information.  

New digital outreach tools targeting SMEs will be carried out in 2017-2018. 

In addition to the Commission, Member States also have a crucial role to play in helping to 
disseminate  information  on  FTAs  to  their  stakeholders.  This  holds  in  particular  for  SMEs, 
who often require information in local language and in different regions. 

In 2016, the Commission started discussions with Member States and business organisations, 
including in the Market Access Advisory Committee and at the Trade Policy Committee 
of  the  Council  on  how  to  work  better  together  on  the  implementation  of  FTAs.  Better 
outreach centrally and locally was seen as particularly important.  

These  exchanges  also identified that close cooperation between  Member States' embassies 
and  EU  delegations  in  FTA  partner  countries  was  a  key  factor  in  ensuring  effective 
implementation of the FTAs. 

Work with Member States, the European Parliament, business and non-business stakeholders 
continues in 2017 to identify best practices. 

19  http://ec.europa.eu/trade/policy/in-focus/ceta/ 
20 http://trade.ec.europa.eu/doclib/docs/2016/june/tradoc_154622.pdf 
21 http://ec.europa.eu/trade/trade-policy-and-you/in-focus/exporters-stories/ 
22 http://madb.europa.eu/madb/indexPubli.htm 

33 

 
 
 
                                                 
10.  CONCLUSION 

The EU has a wide variety of FTAs in place, and they are very different in terms of scope and 
objectives. 

The work on the implementation of EPAs and DCFTAs needs to intensify on both sides. The 
success of these efforts is closely linked to progress made in: 
  approximation and institutional capacity-building in the case of DCFTAs, and  
  building implementing capacity in the case of EPAs. 

Mediterranean countries still encounter difficulties in exporting to the EU market. This comes 
despite the already long period of application of the FTAs. Domestic developments in recent 
years,  including  the  refugee  crisis,  have  become  additional  challenges  in  building  export 
capacity  and  diversifying  the  economy,  which  would  help  these  partners  to  reap  greater 
benefits from the opportunities provided by the FTAs.  

10.1.  Trade flows  

Overall,  trade  in  goods  increases,  in  particular  regarding  EU  exports.  Where  EU  exports 
decrease,  it  seems  to  be  caused  mainly  by  external  factors  affecting  the  economy  of  the 
partner country concerned, and not as a result of the functioning of the FTA as such.  

The considerable increase in EU exports of agricultural products and motor vehicles in the 
case of the new generation FTAs is very positive, and has exceeded initial expectations. High 
rates of EU  companies  using preferential FTA tariffs in  these sectors mean that  FTAs were 
essential for these trends.  

10.2.  Tariff rate quotas  

As regards TRQs, there is untapped potential for further exports in both directions with all 
partners, since their use remains low in general. 

10.3.  Preference utilisation rates  

For EU businesses these are in general much lower than those of our trading partners, based 
on  the  available  data.  The  Commission  has  looked  into  this  issue  and  identified  three  main 
reasons for the low take up of the FTAs: 
 
lack of awareness of the FTAs, 
  difficulties in understanding the rules for each product, and 
  cumbersome procedures for obtaining documents needed to benefit from preferential 

treatment. 

The  Commission  is  currently  working  to  address  this  awareness  gap.  It  is  improving  the 
information available on its websites, including existing tools such as the advance rulings on 
origin. It is also preparing new types of digital tools and guides to disseminate information on 
FTAs more effectively and help companies use them.  

Close cooperation with Member States and the business community will be essential to fully 
use the benefits of these instruments and to reach as many companies as possible. 

The  lack  of  data  on  preference  utilisation  rates  for  EU  exports  to  some  partners  is  a 
problem,  and  should  be  addressed  with  those  countries  as  a  matter  of  priority.  The  future 

34 

 
FTAs will include a provision on exchange of data, but the problem remains as regards the 
FTAs  already  in  application.  Without  this  data  it  will  not  be  possible  to  monitor  the  use  of 
FTAs  or  the  impact  of  all  the  reinforced  efforts  to  help  EU  companies  use  them.  The  data 
would  also  help  to  identify  those  sectors  where  preference  utilisation  rates  are  low,  so  that 
they could be particularly targeted.  

10.4.  Services and investment  

Services and investment are part of all "new generation" FTAs and DCFTAs, but it is difficult 
to see the link between the FTAs and developments in these areas.  More time is needed to 
see the real impact. 

In the cases of applied FTAs with Chile and Mexico, trade is developing positively. 

10.5.  Trade and sustainable development (TSD) 

Implementation  of  TSD  chapters  requires  efforts  to  engage  the  FTA  partners,  but  positive 
developments are already noted.  

Now the task is to identify priorities for further work in the coming years. Going beyond 
just  ratification  of  core  international  instruments,  ensuring  effective  implementation  in  both 
law  and  practice  remains  a  challenge.  Intensified  cooperation  with 
international 
organisations like the ILO will help future monitoring efforts. 

10.6.  Open issues  

On these, progress has been made in:  
  sanitary and phytosanitary measures (Colombia, Peru, Moldova, Georgia, Ukraine), 
  discriminatory regime for spirits (Colombia), and 
 

technical regulations and standards (Ukraine, Georgia).  

Nonetheless, problems prevail concerning: 
  sanitary and phytosanitary measures, 
 
  enforcement of geographical indications, and 
  public procurement. 

restrictions in the trade in agricultural products, 

In order to focus efforts on opening markets, in 2016 the EU and Member States adopted a 
new  SPS  strategy  with  clear  market  access  priorities  for  20  trade  partners.  These  included 
countries  with  whom  the  EU  has  FTAs  in  place  or  negotiations  are  ongoing.  To  pre-empt 
future problems, further efforts are made in ongoing FTA negotiations.23 

The longer an FTA has been applied, the less the EU should tolerate continued breach of FTA 
commitments. After five years of application of the EU-Korea FTA: 
 
  Korea is still to accept the principle of regionalisation, and  

the EU can still not export beef, 

23  For  example,  the  Commission  now  seeks  to  introduce  cooperation  provisions  on  animal  welfare  and  anti-
microbal  resistance  in  all  new  FTAs.  This  seeks  to  ensure  a  level  playing  field  between  EU  agricultural 
production standards and those applied by our trading partners. 

35 

 
                                                 
 

the EU will continue to work with Korea to expand the list of EU's protected GIs as 
provided for in the agreement. 

As regards Peru, discriminatory taxation of sprits persists after three years of application. It 
contrasts  with  the  progress  made  in  this area  in  the  case  of  Colombia.  This  issue  should  be 
addressed as a matter of priority. 

10.7.  Legal enforcement 

The FTA dispute settlement has not been used, but the EU requested the establishment of a 
WTO  panel  to  review  the  discriminatory  regime  for  spirits  maintained  by  Colombia. 
Following this request, Colombia adopted a law that entered into force in January 2017 that 
appears to have addressed the issues at stake. The EU is now monitoring the implementation 
of the law.  

This illustrates how initiating a legal action can sometimes bring rapid results without the full 
process.  The  Commission  shall  consider  using legal  enforcement, in  particular  in cases  of 
major economic or systemic importance. 

36 

 
 
 
ANNEX 1 - SCOPE OF THE REPORT AND DATA USED 

Scope 

The  report  covers  comprehensive  FTAs  negotiated  after  2006  (new  generation  FTAs),  and 
older  FTAs  concluded  before  that  date  that  are  in  general  more  limited  in  scope  ("first 
generation" FTAs).  

Economic  Partnership  Agreements  (EPAs)  and  Deep  and  Comprehensive  Free  Trade  Areas 
(DCFTAs)  are  looked  into  separately  due  to  the  particular  focus  in  these  agreements  on 
legislative approximation in the case of DCFTAs and on development in the case of EPAs.  

The full list is provided in annex 2.  

Implementation of trade and sustainable development chapters is also addressed in a separate 
chapter covering all FTAs which include these provisions.  

Data used  

The report covers the situation in the year 2016, and the FTAs that have been applied for at 
least one year by the end of 2016. It uses EUROSTAT: 

  data from 2016 on trade in goods, 
  data of 2015 on services and investment, 
  data since 2002 for "first generation" FTAs, because harmonised data of EU28 are 

available as of that date. 

As  regards  the  FTA  with  Central  America,  different  data  are  used  due  to  significant 
differences between EUROSTAT and Central American statistics. The report covers the years 
2015-2016 using: 

  EUROSTAT data extracted in October 2016 for EU imports, 
  Central American statistics available for that period for EU exports.  

37 

 
 
 
 
ANNEX 2 - OVERVIEW OF THE FTAS COVERED BY THIS REPORT 

"New Generation" FTAs 

  EU-South Korea: applied since July 2011. 
  EU-Colombia-Peru: applied since March 2013 for Peru and August 2013 for Colombia. 
  EU-Central America Association Agreement: applied since 201324. 

Deep and Comprehensive Free Trade Areas 

  EU-Georgia: applied since 1 September 2014, and fully entered into force on 1 July 2016. 
  EU-Moldova: applied since 1 September 2014, and fully entered into force on 1 July 2016. 
  EU-Ukraine: applied since 1 January 2016, and fully entered into force on 1 September 2017. 

Economic Partnership Agreements 

  EU-Cariforum  (Antigua  &  Barbuda;  Belize;  Bahamas;  Barbados;  Dominica;  Dominican 
Republic;  Grenada;  Guyana;  Jamaica;  St.  Kitts  &  Nevis;  St.  Lucia;  St.  Vincent  &  the 
Grenadines; Suriname; and Trinidad & Tobago): applied since 29 December 2008. 

  EU-Pacific  (Fiji,  Papua  New  Guinea):  applied  since  28  July  2014  for  Fiji  and  since  20 

December 2009 for Papua New Guinea. 

  EU-Eastern  and  Southern  African  (ESA)  sub-region  (Madagascar,  Mauritius,  Seychelles, 

and Zimbabwe): applied since 14 May 2012. 

  EU- Cameroon (Central Africa): applied since 4 August 2014. 

"First Generation" FTAs 

  EU-Turkey  Customs  Union:  Association  Agreement  signed  in  1963;  final  phase  of  the 

customs union completed on 1 January 1996. 

  EU-Switzerland: applied since 1972. 
  EU-Norway: applied since 1 July 1973. 
  EU-Algeria: applied since 1 September 2005. 
  EU-Egypt: applied since 21 December 2003. 
  EU-Israel: applied since 1996. 
  EU-Jordan: applied since 1 May 2002. 
  EU-Lebanon: applied since 1 March 2003. 
  EU-Morocco: applied since 1 March 2000. 
  EU-Palestine:  applied since 1 July 1997. 
  EU-Tunisia: applied since 1 March 1998. 
  EU-South Africa Trade, Development and Cooperation Agreement: applied since 1 January 

2000. 

  EU-Mexico Global Agreement: applied since October 2000. 
  EU-Chile Association Agreement: applied since 1 February 2003. 
  EU-Serbia Stabilisation and Association Agreement: applied since 1 July 2008. 

24 The FTA started provisional application on 1 August as regards Honduras, Nicaragua and Panama, 1 October 

as regards Costa Rica and El Salvador and 1 December as regards Guatemala.  

38 

 
                                                 
ANNEX 3 - PREFERENCE UTILISATION STATISTICS 

Statistics  in  this  report  on  the  use  by  importers  of  preferences  offered  by  EU  free  trade 
agreements are based on administrative data which the importing country has collected.  

They  reflect  imports  under  a  preferential  regime  which  took  advantage  of  the  preferences 
available ("used preferences") as a share of total imports which would have been eligible for 
preferences ("eligible preferences"). Imports are considered only where a potential preference 
exists, i.e. where the applied preferential tariff is lower than the normally applied MFN tariff. 

1.  Preference use on imports into the EU from FTA partners 

The used tariff regime is derived from the Single Administrative (customs) Document. In this 
the  importer  indicates  under  which  regime  the  importation  is  to  be  made.  This  is  compared 
with eligibility as derived from TARIC tariff data. Where necessary and possible corrections 
are made to eliminate errors. 

The  obtained  dataset  is  consistent  and  allows  for  comparison  over  partner  countries,  years 
and,  in  most  cases,  tariff  lines.  However,  some  errors  remain  undetected  (e.g.  "end-use" 
conditions), and so results at a detailed product level must be interpreted with caution. 

See annex 4. 

2.  Preference use on exports from the EU to FTA partners 

Statistics  on  preference  use  on  exports  from  the  EU  to  third  countries  are  based  on 
administrative  data  collected in  each  individual  importing  third  country.  By  definition  these 
statistics are not harmonised and comparison between partner countries or with EU imports is 
hazardous due to variable and frequently questionable data quality. 

Discrepancies are found, such as reported preferential imports in tariff lines not falling under 
any  preference,  or  wide  differences  between  reported  total  imports  and  exports  as  given  by 
Eurostat.  Some  harmonisation  is  inserted  ex-post  by  elimination  of  trade  in  tariff  lines  for 
which  no  preference  exists  according  to  DG  Trade's  Market  Access  Database  (e.g.  where 
MFN=0). 

The  obtained  dataset  on  EU  exports  is  therefore  only  consistent  when  used  to  compare 
utilisation within a particular country over time and to some extent over product categories. 
The dataset should not be used to compare utilisation over various countries (including over 
EU imports). 

See annex 5. 

39 

 
 
 
ANNEX 4 - PREFERENCE USE ON IMPORTS INTO THE EU 

Exporting country 
Albania 
Algeria 
Chile 
Colombia 
Costa Rica 
Egypt 
El Salvador 
Georgia 
Guatemala 
Honduras 
Israel 
Jordan 
Lebanon 
Mexico 
Moldova 
Morocco 
Nicaragua 
Norway 
Occupied Palestinian Territory 
Panama 
Peru 
Serbia 
South Africa 
South Korea 
Switzerland 
Tunisia 
Turkey 
Ukraine 
EPA Central Africa (Cameroon) 
EPA Eastern and Southern Africa (ESA) 
EPA Cariforum 
Central America 6 

2013 
88% 
95% 
93% 
85% 
89% 
96% 
80% 
86% 
89% 
84% 
89% 
76% 
79% 
67% 
89% 
97% 
90% 
74% 
71% 
70% 
95% 
92% 
91% 
82% 
92% 
95% 
92% 
89% 
98% 
96% 
79% 
86% 

2014 
88% 
94% 
94% 
96% 
96% 
96% 
91% 
78% 
94% 
93% 
89% 
79% 
87% 
61% 
89% 
97% 
96% 
72% 
78% 
81% 
97% 
94% 
91% 
84% 
91% 
95% 
93% 
86% 
98% 
96% 
80% 
94% 

2015 
87% 
97% 
95% 
97% 
96% 
95% 
82% 
83% 
95% 
91% 
89% 
79% 
76% 
52% 
91% 
97% 
94% 
71% 
78% 
70% 
98% 
93% 
85% 
85% 
86% 
95% 
93% 
87% 
91% 
97% 
91% 
92% 

2016 
86% 
95% 
95% 
97% 
97% 
96% 
74% 
80% 
95% 
92% 
90% 
68% 
71% 
57% 
88% 
95% 
94% 
66% 
81% 
61% 
97% 
90% 
79% 
87% 
83% 
96% 
93% 
89% 
97% 
97% 
92% 
92% 

40 

 
 
 
 
 
ANNEX 5 - PREFERENCE USE ON EXPORTS FROM THE EU 

Importing country 
Albania 
Chile 
Colombia 
Costa Rica 
Egypt 
For.YRep.Mac 
Israel 
Kosovo 
Lebanon 
Mexico 
Montenegro 
Morocco 
Nicaragua 
Peru 
Serbia 
South Korea 
Switzerland 
Turkey 

2013 

78% 

49% 

86% 

0% 

89% 
65% 
80% 

2014 
73% 
78% 
56% 
18% 

90% 

74% 
68% 
86% 

12% 
42% 
90% 
65% 
80% 

2015 
76% 
76% 
63% 

78% 

74% 

85% 

22% 

89% 
68% 
78% 

2016 
80% 
74% 
71% 
38% 
85% 
90% 
89% 
44% 

85% 
52% 

90% 
71% 
79% 
95% 

41