Recommendation for a COUNCIL DECISION authorising the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy to open negotiations and negotiate with the Republic of Uzbekistan an Agreement to replace the outdated Partnership and Cooperation Agreement
Date: 2017-12-22
Institutions: European Commission, European External Action Service
Subjects: common security and defence policy



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ROADMAP  






Roadmaps aim to inform citizens and stakeholders about the Commission's work to allow them to provide feedback and to participate effectively in future consultation activities. Citizens and stakeholders are in particular invited to provide views on the Commission's understanding of the problem and possible solutions and to share any relevant information that they may have.






Title of the initiative




Request for a mandate for a comprehensive agreement with the Republic of Uzbekistan






Lead DG – responsible unit 




EEAS.EURCA.EAST.4 






Likely Type of initiative




Proposal for a Council Decision authorising the opening of negotiations






Indicative Planning




Q1 2018






Additional Information




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This Roadmap is provided for information purposes only. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content. All elements of the initiative described by the Roadmap, including its timing, are subject to change.









A. Context, problem definition and subsidiarity check






Context 







Central Asia is a region of strategic importance to the EU (as referred to in the EU Global Strategy, the EU Central Asia Strategy of 2007 and its successive reviews, the Five principles of the EU policy towards Russia and the European Neighbourhood Policy (ENP) review). The Republic of Uzbekistan is the most populous country of Central Asia (32 million inhabitants) bordering all other Central Asian countries. It is crucial for Central Asian stability and regional cooperation. Following President Karimov’s death on 2 September 2016, the new President Shavkat Mirziyoyev has launched an ambitious opening and reform programme, in particular steps to improve the business climate, the judicial system, labour conditions, administrative accountability and the fight against corruption, as well as cautious moves to improve human rights and re-engage with media and NGOs. The new leadership has also reached out to neighbouring countries in order to defuse tensions and improve regional cooperation.


The EU recently concluded new comprehensive agreements with Kazakhstan and Armenia (both Eurasian Economic Union (EEU) members), is in the process of negotiating a new agreement with Azerbaijan and has just launched negotiations with Kyrgyzstan (EEU member). Therefore, it is time to upgrade EU relations also with Uzbekistan and first practical steps have already been taken, such as the new framework agreement between the European Investment Bank and Uzbekistan or the new office of the European Bank for Reconstruction and Development in Tashkent. 






Problem the initiative aims to tackle 







The 1996 Partnership and Cooperation Agreement with Uzbekistan is outdated and no longer provides an appropriate framework for our relations. 


Uzbekistan has stepped up efforts to strengthen relations with the EU and now requests a formal upgrade of the Partnership and Cooperation Agreement (PCA). A key policy objective of the initiative is, by responding positively to this request, to recognise Uzbek efforts to reform the country and to improve cooperation with its neighbours and international partners. It would also reinforce the status of the EU as an important partner and provide additional momentum to the implementation of EU Development Cooperation with Uzbekistan. 


Uzbekistan appreciates EU encouragement for its reform programme as well as greater economic exchanges with Europe, including attracting investment, modern science, technologies and management. The country has expressed its intention to join the WTO. This is also in the EU’s interest and should be accompanied by progress in other areas that are important for the EU, in particular human rights and democracy, where Uzbekistan still has a considerable way to go. 


Failure to engage with Uzbekistan in the present circumstances would probably have a negative impact on bilateral relations and might undermine EU influence in Central Asia in general, and the positive momentum in EU Development Cooperation with the country in particular. 






Basis for EU intervention (legal basis and subsidiarity check) 







Subject to the results of the preparatory process, negotiations should be opened and carried out on the basis of Article 218(3) and (4) TEU in conjunction with Art. 207 TFEU. 


The agreement is intended to cover matters of EU competence and to strengthen political dialogue and cooperation between the EU and Uzbekistan. Action at EU level is warranted, as it would allow ensuring a coherent approach to the country and the region, irrespective of Member States’ level of engagement with Uzbekistan.






B. What does the initiative aim to achieve and how 







With the proposed new agreement, the EU aims to update its relationship with Uzbekistan with a view to 


enhancing relations with the country, 


supporting the ongoing reform process, 


strengthening EU influence in the region, 


and contributing to overall EU interests.


A new agreement with Uzbekistan would be relevant for the Commission’s priority for 2014-19 on Promoting Europe as a stronger global actor. It also contributes to the implementation of the EU Global Strategy (increasing resilience of states and societies to the East stretching into Central Asia, connectivity between Europe and Asia). 


The initiative follows the 19 June 2017 Council Conclusions on the EU Strategy for Central Asia and contributes to the implementation of EU strategic interests in Central Asia (regional security, trade & investment, connectivity, promotion of rule of law, good governance and human rights).  


The agreement is expected to include standard clauses on issues such as human rights, democracy, rule of law, countering proliferation, the International Criminal Court and countering terrorism, which underpin the EU foreign policy and conduct on the international scene. Progress in various areas of bilateral cooperation will be achieved through the negotiating process. Reinforced language on specific chapters (political dialogue, human rights, security) and the introduction of new fields that are highly relevant for the EU and Uzbekistan, but not appropriately covered by the current PCA will pave the way for incremental progress in areas such as civil society, justice, liberty, migration, civil protection, fight against terrorism, organised crime and corruption, connectivity or cyber-crime. On the trade and economic side, the new agreement should introduce binding discipline based on international and EU standards with a view to promoting a favourable business environment and protecting EU business interests, necessary to enhance trade and investment relations. Ultimately, these developments should contribute to the further sustainable development of Uzbekistan and strengthened relations with the European Union. Commitment to the multilateral framework will be reinforced through inclusion of relevant references into the legal basis and through the negotiation process. 


There appears to be a window of opportunity for regional cooperation in Central Asia, and Uzbekistan is a key actor in this process. Successful negotiations and reforms in Central Asian countries could lead to a virtuous circle of economic and societal progress in the region. This would allow Central Asia to fully benefit from globalisation and connectivity initiatives. Such a virtuous circle of reforms in Uzbekistan and Central Asia would also benefit the EU through increased trade & investment, stability and security along the new Silk Roads. The preventive effects of such a positive scenario could be significant, also in view of potential security threats or migration challenges emanating from the region. 






C. Better regulation






Consultation of citizens and stakeholders 







The initiative builds on preliminary consultations held in 2017 for the planned renewed Central Asia Strategy after 2019 as well as Uzbek requests to update the legal basis for their relations with the EU (PCA signed in 1996) and to enhance cooperation in a number of areas. 


Preparations for the new EU Central Asia Strategy will provide further elements, for example a roundtable in Tashkent planned for March 2018 by the EU Special Representative for Central Asia, inviting government officials, civil society and experts from both Europe and the Central Asia region. 


Civil society representatives both in Uzbekistan and in the EU will have the opportunity to express their expectations and concerns also during the negotiation process for the new agreement. The EU will consult national and international NGOs (including independent representatives of civil society in Uzbekistan), academics specialising on Uzbekistan and the region as well as business representatives and experts for sustainable development.  


The Council, Member States and the European Parliament will be consulted both formally and informally in accordance with the established practice for this type of agreements. 






 Evidence base and data collection 







The EEAS regularly evaluates the implementation of the current PCA and potential areas for reinforced cooperation, inter alia in preparation of the regular meetings of the PCA Cooperation Council, Committee and Sub-Committees. The negotiations will be informed by these assessments of PCA implementation. 


The positive EU response to Uzbek requests for an updated PCA builds on a broad consultation process which includes the EU Member States, the Central Asian countries, the think-tank community and civil society as part of the implementation review of the EU-Central Asia Strategy and ongoing preparations for a renewed Strategy. These consultations also indicated a necessity to better respond to the ambitions and needs of individual Central Asian countries. 


Complementary information will be sought in academic literature, think-tank and NGO reports, or any source which could contribute to additional information, also on the possible impact of the envisaged agreement. 


An Impact Assessment is not foreseen; however, an analytical document to underpin the action will be prepared and published along with the initiative. 


Finally, preceding and/or parallel negotiations with other countries (see section A) will provide precedents on the scope and substance of the agreement.