Recommendation for a COUNCIL DECISION authorising the opening of negotiations with Angola for an agreement on investment facilitation
Date: 2021-03-23
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Angola, European Commission, investment, negotiation of an agreement (EU), powers of the institutions (EU)

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   EUROPEAN COMMISSION  Brussels, 23.3.2021  COM(2021) 138 final  Recommendation for a COUNCIL DECISION authorising the opening of negotiations with Angola for an agreement on investment facilitation  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On 19 December 2019, the Council adopted its decision1 amending the negotiating directives 
for the negotiation of Economic Partnership Agreements (EPAs) with the African, Caribbean 
and Pacific (ACP) countries and regions, to the extent that they fall within the competence of 
the Union (“the 2019 negotiating directives”). Those new negotiating directives updated the 
wide-ranging  mandate  and  negotiating  directives  issued  by  the  Council  on  12  June  2002 
(9930/02).  

Under  section  6.2,  first  paragraph  of  the  amended  negotiated  directives,  it  is  stated: 
“Investment. In accordance with the objective of "reducing and eventually eradicating poverty 
consistent with the objective of sustainable development" (and with regard to articles 1, 29, 
75  to  78,  and  to  Annex  II  to  the  Cotonou  Agreement  and  the  relevant  provisions  of  its 
successor agreement, once applicable) the parties agree to establish a framework which shall 
facilitate,  enhance  and  stimulate  mutually  beneficial  sustainable  investment  between  them, 
taking into account multilateral initiatives on investment facilitation. This framework will be 
based on principles of non-discrimination, openness, transparency and stability. The parties 
will  foster  the  development  of  attractive  and  stable  investment  environments  by  supporting 
stable and transparent rules for investors, and seek to improve financial inclusion and access 
to finance.” 

Angola is  not  yet  a party  to  the EPA between the EU  and the SADC EPA group2, and that 
agreement does not contain provisions on investment facilitation.  

In  a  joint  statement3  dated  8  September  2020,  Executive  Vice-President  of  the  European 
Commission,  Mr.  Valdis  Dombrovskis  and  Minister  of  Trade  and  Industry  of  Angola,  Mr. 
Victor  Fernandes,  issued  a  joint  statement  confirming  “their  intention  to  start  exploratory 
discussions  on  an  EU-Angola  investment  agreement,  on  top  of  the  EPA,  focusing  on 
investment facilitation.” 

Under the existing negotiating directives as updated in 2019, the Commission is authorised by 
the Council to negotiate, with ACP countries and regions, Economic Partnership Agreements 
covering  a  wide  range  of  topics,  including  provisions  related  to  investment  facilitation.4  In 
light of this, and of the willingness by Angola to negotiate an agreement with the EU on this 
matter, the Commission recommends opening negotiations with Angola for an agreement 
on investment facilitation. In order to ensure coherence and consistency with negotiations on 
investment  facilitation  with  other  ACP  countries,  the  negotiations  with  Angola  should  be 
conducted  on  the  basis  of  the  provisions  of  the  2019  negotiating  directives,  relating  to 
investment facilitation (section 6.2, first paragraph).  

The  overall  objective  of  this  Agreement  would  be  to  improve  the  investment  climate  and 

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Council  Decision  (EU)  2020/13  of  19  December  2019  amending  the  negotiating  directives  for  the 
negotiation of Economic Partnership Agreements with the African, Caribbean and Pacific countries and 
regions, to the extent that they fall within the competence of the Union, OJ L 6, 10.1.2020, p. 101–111 
Angola  is  in  the  process  of  joining  the  existing  EPA  between  the  EU  and  the  SADC  EPA  Group 
(consisting currently of Botswana, Eswatini, Lesotho, Mozambique, Namibia, and South Africa) 
https://eeas.europa.eu/headquarters/headquarters-homepage/84859/5th-angola-eu-ministerial-meeting-
joint-way-forward_en 
Such a negotiation is currently taking place with five countries of Eastern and Southern Africa (ESA) in 
the context of the “deepening” of the existing Economic Partnership Agreement. 

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facilitate  the  mobilisation  and  retention  of  investment  between  the  Parties  on  the  basis  of 
modern and simplified rules, measures and procedures relating to foreign direct investment. In 
doing so,  the  agreement  would promote sustainable development,  economic growth and job 
creation, and strengthen the bilateral investment relationship between the EU and Angola. It 
would  also  provide  a  solid  platform  for  contributing  to  the  diversification  of  Angola’s 
economy and its integration into the global economy. 

• 

Consistency with existing policy provisions in the policy area 

The  above  objectives  are  consistent  with  the  Treaty  on  the  European  Union  (TEU)  that 
provides  that  the  EU  should  ‘encourage  the  integration  of  all  countries  into  the  world 
economy, including through the progressive abolition of restrictions on international trade’.5  

The  objectives  are  also  fully  in  line  with  the  objectives  of  the  Cotonou  Agreement  and  its 
successor agreement, and the general principles promoted therein.  

It is also in line with the EU’s comprehensive strategy with Africa6 which “proposed that the 
EU  develops  more  ambitious  arrangements  to  facilitate,  attract  and  support  investment  in 
Africa.” 

This  proposal  would  also  complement  the  ongoing  negotiations  on  “Investment  Facilitation 
for Development” currently taking place in the World Trade Organisation. 

• 

Consistency with other Union policies 

The objectives are consistent with other EU policies, notably the EU’s development policy. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  procedural  legal  basis  for  this  act  is  Article  218(3)  and  (4)  of  the  TFEU.  When  the 
Commission  recommends the negotiation of an international  agreement, it  does not  indicate 
the substantial legal basis. 

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Subsidiarity (for non-exclusive competence)  

The  subject  matter  of  the  envisaged  negotiations  relates  essentially  to  the  common 
commercial policy. According to Article 5(3) of the TEU, the subsidiarity principle does not 
apply in areas of exclusive EU competence. The common commercial policy is listed among 
the areas of exclusive competence of the Union in Article 3 of the TFEU. This policy includes 
the negotiation of trade agreements pursuant to, inter alia, Article 207 TFEU. 

The recommendation of the Commission is in line with the principle of proportionality, as the 
conclusion of an international agreement is the main instrument for assuming reciprocal rights 
and obligations with a subject of international law such as a foreign country. 

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Choice of the instrument 

Decision of the Council of the European Union. 

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Article 21(2)(e) TEU 
2020 
Joint 
https://ec.europa.eu/international-partnerships/system/files/communication-eu-africa-strategy-join-
2020-4-final_en.pdf  

Communication 

comprehensive 

Towards 

Strategy 

with 

a 

Africa 

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3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Not applicable. 

Stakeholder consultations 

• 
From  June  to  November  2020,  the  Commission  carried  out  a  public  consultation7  seeking 
input from the European Parliament, Member States, stakeholders and civil society review of 
the  European  Union’s  trade  policy,  including  on  ways  to  strengthen  the  EU’s  trade  and 
investment relationships with the neighbouring countries and Africa. 

The  Commission  regularly  consults  stakeholders  inter  alia  in  the  Expert  Group  on  Trade 
Agreements8 and the Civil Society Dialogue.9 

• 

Collection and use of expertise 

This proposal relies on external expertise gathered in the context of a project carried out by 
the  World  Bank  and  commissioned  by  the  European  Commission.  The  reports  notably 
identified that investors10 put forward, as critical factors affecting their investment decisions 
in  developing  countries,  the  lack  of  transparency  and  predictability  in  dealing  with  public 
agencies,  the  sudden  change  in  the  laws  and  regulations,  and  the  delays  in  obtaining 
government  permits  and  approvals.  Those  are  the  areas  that  would  be  covered  by  the 
proposal. 

• 

Impact assessment 

The  Council  Decision  on  the  2019  negotiations  directives  already  covered  investment 
facilitation  to  be  negotiated  with  ACP  countries  and  regions.  The  present  Decision  is  a 
procedural  requirement  that  will  not  in  itself  have  an  additional  impact  compared  with  the 
Council Decision to the 2019 negotiations directives.  

• 

Regulatory fitness and simplification 

Not applicable. 

• 

Fundamental rights 

The initiative fully respects the Charter of Fundamental Rights of the European Union. 

4. 

BUDGETARY IMPLICATIONS 

The initiative does not have budgetary implications. 

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10 

https://trade.ec.europa.eu/consultations/index.cfm?consul_id=266 
http://ec.europa.eu/trade/trade-policy-and-you/expert-groups/  
http://trade.ec.europa.eu/civilsoc/meetdetails.cfm?meet=11531  
See World Bank, Retention and Expansion of Foreign Direct Investment, Political Risk and Policy 
Responses http://documents1.worldbank.org/curated/en/387801576142339003/pdf/Political-Risk-and-
Policy-Responses.pdf   

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5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Not applicable. 

• 

Explanatory documents (for directives) 

Not applicable. 

• 

Procedural aspects 

The Commission will negotiate on behalf of the EU. In accordance with Article 218(4) TFEU, 
it is suggested that the Council of the European Union designates a committee, in consultation 
with which the negotiations must be conducted. 

The European Parliament will be informed at all stages of the procedure, in line with Article 
218(10) TFEU.  

The Commission will make this Recommendation public immediately after its adoption.  

The  Commission  recommends  that  the  authorisation  be  made  public  immediately  after  its 
adoption by Council.  

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Recommendation for a 

COUNCIL DECISION 

authorising the opening of negotiations on an agreement between the European Union 
and the Republic of Angola on investment facilitation 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 218(3) and (4) thereof,  

Having regard to the recommendation from the European Commission,  

Whereas: 

(1) 

(2) 

(3) 

Negotiations should be opened with a view to concluding an agreement on investment 
facilitation with Angola. 
Council  Decision  (EU)  2020/1311  amended  the  negotiating  directives  for  the 
negotiation  of  Economic  Partnership  Agreements  with  the  African,  Caribbean  and 
Pacific (ACP) countries and regions, to the extent that they fall within the competence 
of the Union. 

In order to ensure coherence and consistency in negotiations on investment facilitation 
with  other  ACP  countries,  the  negotiations  with  Angola  should  be  conducted  on  the 
basis of the negotiating directives relating to investment facilitation set out in Decision 
(EU) 2020/13, 

HAS ADOPTED THIS DECISION:  

The Commission is hereby authorised to negotiate, on behalf of the Union, an agreement on 
investment facilitation with the Republic of Angola.  

Article 1 

The  negotiating  directives  are  set  out  in  section  6.2,  first  paragraph,  of  the  addendum  to 
Decision (EU) 2020/13.  

Article 2  

The negotiations shall be conducted in consultation with [name of the special committee to be 
inserted by the Council].  

Article 3  

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Council  Decision  (EU)  2020/13  of  19  December  2019  amending  the  negotiating  directives  for  the 
negotiation of Economic Partnership Agreements with the African, Caribbean and Pacific countries and 
regions, to the extent that they fall within the competence of the Union (OJ L 6, 10.1.2020, p. 101). 

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This decision is addressed to the Commission.  

Done at Brussels, 

Article 4  

For the Council 
The President 

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