COMMISSION STAFF WORKING DOCUMENT Individual information sheets on implementation of EU Trade Agreements Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the Implementation and Enforcement of EU Trade Policy
Date: 2023-11-15
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Dispute Settlement Body, common commercial policy, international trade, small and medium-sized enterprises, third country, trade agreement, trade agreement (EU), trade dispute, trade policy, trade restriction

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 15.11.2023  SWD(2023) 740 final  COMMISSION STAFF WORKING DOCUMENT Individual information sheets on implementation of EU Trade Agreements                 Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS  on the Implementation and Enforcement of EU Trade Policy                            {COM(2023) 740 final}  
 
 
Contents 
EU TRADE AGREEMENTS COVERED BY this Staff Working Document ......................... 7 

EU TRADE AGREEMENTS COVERED BY this Staff Working Document ......................... 8 

PART I:  

ASIA ..................................................................................................................... 9 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE FREE 
TRADE AGREEMENT BETWEEN THE EU AND VIETNAM ........................................... 10 

1.  THE AGREEMENTS ................................................................................................... 10 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 10 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE FREE 
TRADE AGREEMENT BETWEEN THE EU AND ITS MEMBER STATES AND 
SINGAPORE ........................................................................................................................... 14 

1.  THE AGREEMENTS ................................................................................................... 14 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 15 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND JAPAN ......... 17 

1.  THE AGREEMENT ..................................................................................................... 17 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 17 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-SOUTH 
KOREA FREE TRADE AGREEMENT ................................................................................. 21 

1.  THE AGREEMENT ..................................................................................................... 21 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 21 

3.  ACTIVITIES SUBJECT TO SPECIFIC MONITORING ............................................ 25 

PART II:  

THE AMERICAS .............................................................................................. 26 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
CANADA COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT (CETA) ........ 27 

1.  THE AGREEMENT ..................................................................................................... 27 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 28 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
COLOMBIA/ECUADOR/PERU TRADE AGREEMENT ..................................................... 32 

1.  THE AGREEMENT ..................................................................................................... 32 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 33 

3.   ACTIVITIES SUBJECT TO SPECIFIC MONITORING AND SPECIFIC AREAS OF 
IMPORTANCE ............................................................................................................. 38 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF PART IV OF THE 
ASSOCIATION AGREEMENT BETWEEN THE EU AND ITS MEMBER STATES AND 
CENTRAL AMERICA ............................................................................................................ 41 

1.  THE AGREEMENT ..................................................................................................... 41 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 42 

3.  ACTIVITIES SUBJECT TO SPECIFIC MONITORING AND SPECIFIC AREAS OF 
IMPORTANCE ............................................................................................................. 45 

1 

 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE ASSOCIATION AGREEMENT BETWEEN THE EU AND CHILE ...... 48 

1.  THE AGREEMENT ..................................................................................................... 48 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 49 

3.  ACTIVITIES OF SPECIFIC MONITORING AND RELEVANCE IN 2022 ............. 51 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-MEXICO Global AGREEMENT ........................................................ 52 

1.  THE AGREEMENT ..................................................................................................... 52 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 52 

PART III: EU neighbouring countries ..................................................................................... 55 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT BETWEEN THE EU AND ALGERIA .............................. 57 

1.  THE AGREEMENT ..................................................................................................... 57 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 57 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-EGYPT 
ASSOCIATION AGREEMENT .............................................................................................. 60 

1.  THE AGREEMENT ..................................................................................................... 60 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 60 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ASSOCIATION AGREEMENT BETWEEN THE EU AND LEBANON ............................. 63 

1.  THE AGREEMENT ..................................................................................................... 63 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 63 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT BETWEEN THE EU AND JORDAN ................................ 65 

1.  THE AGREEMENT ..................................................................................................... 65 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 65 

3.  ACTIVITIES OF SPECIFIC INTEREST ..................................................................... 66 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT BETWEEN THE EU AND MOROCCO ........................... 68 

1.  THE AGREEMENT ..................................................................................................... 68 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 69 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ASSOCIATION AGREEMENT BETWEEN THE EU AND TUNISIA ................................ 71 

1.  THE AGREEMENT ..................................................................................................... 71 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 71 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE INTERIM 
ASSOCIATION AGREEMENT BETWEEN THE EU AND PALESTINE .......................... 73 

1.  THE AGREEMENT ..................................................................................................... 73 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 73 

2 

 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT BETWEEN THE EU AND ISRAEL ................................. 75 

1.  THE AGREEMENT ..................................................................................................... 75 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 76 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE DEEP AND 
COMPREHENSIVE FREE TRADE AREA BETWEEN THE EU AND UKRAINE ........... 78 

1.  THE AGREEMENT ..................................................................................................... 78 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 79 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE DEEP AND 
COMPREHENSIVE FREE TRADE AREA BETWEEN THE EU AND GEORGIA ........... 82 

1.  THE AGREEMENT ..................................................................................................... 82 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 83 

3.  MONITORING IN SPECIFIC AREAS ........................................................................ 86 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE DEEP AND 
COMPREHENSIVE FREE TRADE AREA BETWEEN THE EU AND MOLDOVA ......... 87 

1.  THE AGREEMENT ..................................................................................................... 87 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 88 

3.  MONITORING IN SPECIFIC AREAS ........................................................................ 90 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-KOSOVO* STABILISATION AND ASSOCIATION AGREEMENT

92 

1.  THE AGREEMENT ..................................................................................................... 92 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 93 

ANNUAL INFORMATION SHEET ON IMPLEMENTATION OF THE TRADE PILLAR 
OF THE EU-SERBIA STABILISATION AND ASSOCIATION AGREEMENT ................ 94 

1.  THE AGREEMENT ..................................................................................................... 94 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 95 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-BOSNIA AND HERZEGOVINA STABILISATION AND 
ASSOCIATION AGREEMENT .............................................................................................. 96 

1.  THE AGREEMENT ..................................................................................................... 96 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 97 

ANNUAL INFORMATION SHEET ON IMPLEMENTATION OF the trade pillar of the EU-
MONTENEGRO STABILISATION AND ASSOCIATION AGREEMENT ........................ 98 

1.  THE AGREEMENT ..................................................................................................... 98 

2.  MAIN IMPLEMENTATION ISSUES ......................................................................... 98 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-ALBANIA STABILISATION AND ASSOCIATION AGREEMENT

100 

1.  THE AGREEMENT ................................................................................................... 100 

3 

 
 
 
 
2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 101 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE STABILISATION AND ASSOCIATION AGREEMENT BETWEEN 
THE EU AND NORTH MACEDONIA ................................................................................ 102 

1.  THE AGREEMENT ................................................................................................... 102 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 103 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-united 
kingdom Trade and Cooperation Agreement ......................................................................... 105 

1.  THE AGREEMENT ................................................................................................... 105 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 107 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
SWITZERLAND TRADE AGREEMENT ........................................................................... 111 

1.  THE AGREEMENTS ................................................................................................. 111 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 113 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
NORWAY TRADE AGREEMENT ...................................................................................... 116 

1.  THE AGREEMENT ................................................................................................... 116 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 117 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
ICELAND TRADE AGREEMENT ...................................................................................... 118 

1.  THE AGREEMENT ................................................................................................... 118 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 118 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-TURKEY 
CUSTOMS UNION AND TRADE AGREEMENTS ........................................................... 119 

1.  THE AGREEMENT ................................................................................................... 119 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 120 

PART IV: AFRICAN, CARIBBEAN AND PACIFIC COUNTRIES .................................. 123 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND GHANA .................... 124 

1.  THE AGREEMENT ................................................................................................... 124 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 124 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND THE SOUTHERN 
AFRICAN DEVELOPMENT COMMUNITY (SADC) ....................................................... 128 

1.  THE AGREEMENT ................................................................................................... 128 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 129 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND CôTE D’IVOIRE ...... 133 

1.  THE AGREEMENT ................................................................................................... 133 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 133 

4 

 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND CAMEROON ........... 136 

1.  THE AGREEMENT ................................................................................................... 136 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 136 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND THE EASTERN AND 
SOUTHERN AFRICAN REGION (ESA) ............................................................................. 140 

1.  THE AGREEMENT ................................................................................................... 140 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 141 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND CARIFORUM .......... 144 

1.  THE AGREEMENT ................................................................................................... 144 

2.   MAIN IMPLEMENTATION ISSUES ....................................................................... 145 

ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE ECONOMIC 
PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND PACIFIC STATES ... 149 

1.  THE AGREEMENT ................................................................................................... 149 

2.  MAIN IMPLEMENTATION ISSUES ....................................................................... 150 

Annex 

152 

LIST OF BARRIERS REGISTERED AND SOLVED IN 2022 ...................................... 152 

5 

 
 
 
 
 
This Staff Working Document (SWD) contains additional information (country sheets) on 
39 individual EU trade agreements, complementing section II of the Report on Implementation 
and Enforcement of EU trade policy1 (“the report”), called “Making full use of the opportunities 
provided by EU trade agreements”.  

Its  annex  has  a  list  of  new  barriers  recorded  and  barriers  resolved  in  2022  completing 
section IV of the report, called  “Addressing trade barriers and finding solutions”.  

For the following information please consult the website of the Commission /DG TRADE: 

- Agendas and reports of meetings of the institutional bodies (FTA committees and working 
groups,  dialogues)  as  well  as  information  on  agenda  and  reports  of  civil  society  forum 
meetings2; 

- General statistics (regularly updated) on trade in goods and services and on foreign direct 
investment for all EU trading partner countries3; 
The Commission/DG TRADE’s Implementation & Enforcement wegpage4 has the following 
information,  which  is  made  available  together  with  the  annual  report  and  staff  working 
document: 

- Statistics on trade in goods and services and on foreign direct investment between the EU 
and preferential trading partner countries (These are compiled for the annual report, based 
on Eurostat data for the EU27 as they stand in March 2023. NB: The latest statistics for trade 
in goods are for 2022, for trade in services and investment for 2021, except where indicated 
otherwise); 

- Tariff Rate Quotas (TRQs) for the EU and preferential partner countries’ fill rates in 2022; 

- Preference utilisation rates (PURs) on EU imports for partner countries as well as PURs on 
EU  exports  to  the  preferential  partners,  who  shared  the  information,  together  with  an 
explanation of the sources and methodology. They are updated once a year, in the fall.   NB. 
Figures for preference use on EU imports and EU exports are based on different datasets from 
distinct  sources.  Preference  utilisation  rates  on  imports  use  Eurostat  figures  and  are 
harmonised.  Preference  utilisation  rates  on  EU  exports  use  data  submitted  by  EU  trading 
partners’  customs  authorities,  which  apply  different  methods  and  practices:  the  data  are 
therefore not harmonised and not comparable.  

1  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE 
EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the 
Implementation and Enforcement of EU Trade Policy – COM(2023) 740 
https://circabc.europa.eu/ui/group/7fc51410-46a1-4871-8979-20cce8df0896/library/aa98efa2-71ac-4e01-9175-
eb5474c5c50e/details  
2 https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/transparency-eu-trade-
negotiations_en  
3 https://ec.europa.eu/trade/policy/countries-and-regions/statistics/  
4 https://policy.trade.ec.europa.eu/enforcement-and-protection/implementing-and-enforcing-eu-trade-
agreements_en  

6 

 
 
 
 
 
 
EU TRADE AGREEMENTS COVERED BY THIS STAFF WORKING DOCUMENT 

(Agreement/date of application)5 

PART I: ASIA 

EU-Vietnam Free Trade Agreement 
EU-Singapore Free Trade Agreement 
EU-Japan Economic Partnership Agreement 
EU-South Korea Free Trade Agreement 

1 August 2020 
21 September 2019 
1 February 2019 
1 July 2011 
PART II: THE AMERICAS 

EU-Canada Comprehensive Economic and 
Trade Agreement  
EU-Colombia-Peru-Ecuador Trade Agreement 

EU-Central America Association Agreement  

EU-Chile Association Agreement 
EU-Mexico Global Agreement 

21 September 2017 

1 March 2013 for Peru; 1 August 2013 
for Colombia; 1 January 2017 for 
Ecuador. 
1 August 2013: trade pillar applies with 
Honduras, Nicaragua and Panama; 1 
October 2013: Costa Rica and El 
Salvador; 1 December 2013: Guatemala. 
1 February 2003 
Applied for goods since 1 July 2000; 
applied for services since 1 March 2001. 

PART III: EU NEIGHBOURING COUNTRIES 
Mediterranean and Middle East countries - Free Trade Areas 

EU-Algeria  
EU-Egypt  
EU-Lebanon  
EU-Jordan  
EU-Morocco  
EU-Tunisia  
EU-Palestine6  
EU-Israel  

1 September 2005 
21 December 2003 
1 March 2003 
1 May 2002 
18 March 2000 
1 March 1998 
1 July 1997 
1 January 1996 

Eastern countries – Deep and Comprehensive Free Trade Areas 

EU-Ukraine  

EU-Georgia  

EU-Moldova 

1 January 2016, and entered into force on 
1 September 2017. 
1 September 2014, and entered into force 
on 1 July 2016. 
1 September 2014, and entered into force 
on 1 July 2016. 

5 For sake of consistency this report uses the short names for EU trading partners as listed in the inter-
institutional guide, available at https://publications.europa.eu/code/en/en-5000500.htm 
6 This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the 
individual positions of Member States on this issue. 

7 

 
 
 
 
 
EU TRADE AGREEMENTS COVERED BY THIS STAFF WORKING DOCUMENT 

(Agreement /date of application) 

Western Balkans – Stabilisation and Association Agreements 

EU-Kosovo* 7 
EU-Serbia  

EU-Bosnia and Herzegovina  
EU-Montenegro 

EU-Albania  

EU-North Macedonia 

1 April 2016 
Interim Agreement on trade for Serbia: 1 
February 2009; for the EU: 8 December 
2009 
Interim Agreement on trade 1 July 2008  
Interim Agreement on trade1 January 
2008 
Interim Agreement on trade 1 December 
2006 
Interim Agreement on trade 1 June 2001 

Switzerland, Iceland, Norway, Türkiye, United Kingdom 

EU-Switzerland Free Trade Agreement 
EU-Iceland Free Trade Agreement 
EU-Norway Free Trade Agreement 
EU-Turkey Customs Union  

EU-United Kingdom Trade and 
Cooperation Agreement 

1 January 1973  
1 April 1973 
1 July 1973 
Association Agreement signed in 1963; 
final phase of the customs union 
completed on 1 January 1996 
1 January 2021 

PART IV: AFRICA, CARIBBEAN AND PACIFIC – Economic Partnership 
Agreements  

EU-Ghana (interim) 
EU-Southern African Development 
Community (SADC)  

EU-Cote d’Ivoire (interim) 
EU-Central Africa (Cameroon) 
EU-Eastern and Southern African States 
(interim) 

EU-Pacific countries (interim) 

EU-CARIFORUM 

15 December 2016 
10 October 2016 for Botswana, Eswatini, 
Lesotho, Namibia and South Africa; 4 
February 2018 for Mozambique. 
3 September 2016 
4 August 2014 for Cameroon 
14 May 2012 for Madagascar, Mauritius, 
Seychelles and Zimbabwe; for Comoros 
since 7 February 2019 
20 December 2009 for Papua New 
Guinea; 28 July 2014 for Fiji, 31 
December 2018 for Samoa and 17 May 
2020 for Solomon Islands.  
29 December 2008 for Antigua & 
Barbuda; Belize; Bahamas; Barbados; 
Dominica; Dominican Republic; Grenada; 
Guyana; Jamaica; St. Kitts & Nevis; Saint 
Lucia; St. Vincent & the Grenadines; 
Suriname; and Trinidad & Tobago. 

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on 
the Kosovo declaration of independence.  

8 

 
 
 
 
 
PART I:  

ASIA 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE FREE 
TRADE AGREEMENT BETWEEN THE EU AND VIETNAM  

1. 

THE AGREEMENTS 

The economic partnership between the EU and Vietnam comprises two distinct agreements, 
namely a free trade agreement and an investment protection agreement. Negotiations began 
in 2012 and were finalized in December 2015 on a single text covering both agreements. In 
2018, the EU and Vietnam decided to split the initial single agreement into a trade agreement 
and an investment protection agreement, respectively.  

The EU-Vietnam Free Trade Agreement (EVFTA) was signed on 30 June 2019 and entered 
into force on 1 August 2020. It sets out the rules accompanying trade liberalization between the 
EU and Vietnam. The Agreement establishes a free trade area between the Union and Vietnam. 
Its objectives are to liberalize and facilitate trade and investment between the Parties under the 
Agreement,  in  a  manner  mindful  of  high  levels  of  environmental  and  labour  protection  and 
relevant internationally recognised standards and agreements. 

The  EU-Vietnam  Investment  Protection  Agreement  was  signed  on  30  June  2019.  The 
agreement, already ratified by Vietnam and by the European Parliament, will enter into force 
once ratified by all 27 EU Member States. The EU-Vietnam Investment Agreement sets out 
rules that give EU investors and their investments in Vietnam a high level of protection, while 
safeguarding EU governments' rights to pass new laws and update existing ones. It will replace 
and upgrade bilateral investment treaties that several Member States currently have in place 
with Vietnam. Once ratified, the Investment Protection Agreement will replace investor-to-state 
dispute settlement. 

There is an important presence of EU companies in Vietnam. In 2021, EU-Vietnam bilateral 
trade flows increased to €49.1 billion from 43.2 billion in 2020 to further icrease in 2022 to € 
64, 2 bn. The EU trade balance is negative (- 38,8 bn €).  Vietnam was already in 2021 the 
EU's largest partner for imports of goods among ASEAN countries. Its exports to the EU rose 
from €34.5 billion in 2020 to € 51, 5 billion in 2022.  

Vietnam is an important regional economic actor and is part of a number of bilateral and 
major regional trade agreements, including the Comprehensive and Progressive Agreement 
for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic 
Partnership (RCEP). Though hit by the health pandemic, its GDP by 2.6% in 2021 and by 8% 
in 2022, showing a remarkable resilience.  

2. 

MAIN IMPLEMENTATION ISSUES 

2.1  Market Access: Progress and outstanding issues 

Since 1 August 2020, the EU and Vietnam have held regular informal meetings and convened 
the specialized committees and working groups established by the EVFTA.  The first ministerial 

10 

 
 
 
 
 
Trade Committee was held on 19 July 2021. The second Ministerial Trade Committee was held 
on 19 December 2022. In the course of 2022, the EU project to improve the ability of EU 
Businesses (notably SMEs) to increase their trade and investment in Vietnam by providing 
practical information on how to make the most of the EVFTA was continued. The online guide 
to EU SME on Vietnam trade and investment8 was launched in March 2022 and updated in 
December 2022. 

On specific market access issues, progress was achieved in particular on the following market 
access issues: 

On SPS-related issues  

•  Vietnam  simplified  and  sped  up  clearance  procedures  for  authorizing  imports  from 
approved EU Member States’ establishments (so called “pre-listing”). As a result, EU 
market access for animal products increased for various EU member states.  

•  Work also continued over the reporting period to reduce the important backlog Vietnam 
has on Member States’ general applications for exports of animal products and plant 
products to Viet Nam, as well as to amend the protocol on rules of origin, for which 
Viet Nam’s internal procedures and decision making are lengthy.  

In  relation  to  market  access  for  EU  pharmaceutical  products  Viet  Nam  in  October  2022 
ended  longstanding  discrimination  between  Member  States’  regulatory  authorities,  some  of 
who  had  been  being  classified  as  'Reference  Regulatory  Authorities'  (RRAs)  and  others  as 
'Stringent Regulatory Authorities' (SRAs). This differentiation had led to a better treatment of 
RRAs, including  by means of shorter, simplified registration procedures and exemptions from 
clinical  trials,  as  well  as  easier  participation  in  government  procurement  tenders.  It  also 
negatively  affected  the  competitiveness  of  EU  exporters  from  EU  member  states  whose 
authorities were classified as  SRAs.  

Furthermore, in the area of IPR, Viet Nam, from the entry into force of the Agreement, has 
implemented its commitments to protect 169 EU GIs and over the reporting period took further 
steps to codify its EVFTA commitments, by reflecting them in its domestic legislation, i.e. its 
Law on amendments and supplementing provisions to the Law on Intellectual Property in 2022, 
which enhance the IPR legal framework.  

Among  the  outstanding  issues  to  mention  in  particular  serious  concerns  as  to  IPR 
enforcement  in  Viet  Nam,  both  as  regards  online  and  physical  marketplaces.  This  includes 
issues related to ineffective copyright enforcement, in particular in the online environment (e.g. 
site-blocking) but also difficulties for rightholders in filing civil or criminal cases as courts are 
overwhelmed and Viet Nam's enforcement system has remained highly complex, which makes 
it challenging for rightholders to take effective and efficient action against IPR infringements. 
Although Viet Nam has stepped up its efforts on border enforcement (e.g. through increased 

8 https://www.eu-vietnam-fta-sme-guide.eu/  

11 

 
 
 
 
border  actions  and  seizures  and  effective  customs  registration  and  recordal  procedures),  the 
level of customs detentions of infringing products remains relatively low.  

2.2 

Trade and sustainable development: Progress and outstanding issues  

On labour issues, Viet Nam has ratified and participates in 25 ILO Conventions including 
nine  out  of  the  ten  fundamental  Conventions.  The  last  fundamental  ILO  convention,  i.e. 
Convention Nr. 87 on the Freedom of Association and Protection of the Right to Organise, 
still awaits to be ratified in 2023, in line with the promise by Viet Nam, and agreed by the 
European  Parliament,  in  the  context  of  the  EVFTA  ratification.  The  EU  has  continued  to 
encourage Viet Nam to elaborate a plan outlining the concrete steps towards ratification of ILO 
Convention Nr. 87.  

At the second TSD Committee in October 2022, committed to approve a Decree in 2023 to 
allow the setting-up of independent trade unions, i.e. not associated with the authorities. The 
enactment of the Decree on workers representative organisations and collective bargaining is 
key to enable independent workers representative organisations. Important delays are expected 
on the Decree’s adoption due to the complexity to reach a consensus among stakeholders in 
Viet Nam, in particular with business representatives and Trade Unions representatives.  The 
adoption  of  the  above  mentioned  Decree  will  be  an  important  and  crucial  step  towards 
ratification by Viet Nam of ILO Convention Nr. C 87. Viet Nam indicated that it cannot commit 
anymore to a date of ratification due to the blockage in the adoption of the Decree.    

On the basis of relevant reports from the ILO supervisory committees and other sources, the 
EU continues to closely monitor developments in Viet Nam regarding freedom of expression 
and assembly that are integral parts of freedom of association. 

Furthermore, the Commission continues raising with Viet Nam the issue of child labour and 
Viet Nam’s commitment to eliminate it by 2025 in accordance with Sustainable Development 
Goal 8.7. The recent National Action Programme aims at a child labour rate of still more than 
4 percent by 2030 after 5.4 percent in 2018. Viet Nam’s National Programme of Action is now 
approved  at  national  level  and  work  is  focusing  on  implementation  at  the  regional  level.  A 
recent report showed considerable progress in this area during pre-pandemic period, while there 
are still more than 1 million children in child labour, more than half of them in hazardous works. 
Due  to  effects  of  COVID-19  the  occurrence  of  child  labour  might  have  worsened.  Further 
decisions on tackling child labour are expected to be taken on the basis of the outcome of the 
3rd survey on child labour, which is planned for 2025.   

The Commission has also raised concerns vis-à-vis Viet Nam on the issue of alleged forced 
labour cases in drug detention centres (issues monitored by ILO under Convention 105 on the 
Abolition of forced labour). Further concerns relate to the capacity of labour inspections in Viet 
Nam  (number  and  quality/training)  as  noted  in  the  2021  report  of  the  ILO  supervisory 
mechanism (Committee of Experts on the Application of Conventions and Recommendations) 
on ILO Convention 81.   

During  the  course  of  2022  Viet  Nam  also  expressed  willingness  to  reinforce  bilateral 
cooperation on climate and environmental policies as well as at international level (CBD COP 
15 and CITES). For example, Viet Nam has been engaging in the circular economy model as 

12 

 
 
 
 
 
 
 
pursued by the EU, including the policies and technologies leading to a less wasteful and more 
efficient economy, as demonstrated during the Green Economy Forum and Exhibition (GEFE)  
of November 2022in Ho Chi Minh City. The presence of political leadership at this event clearly 
indicated the country’s interest. These political interests can trigger systemic changes where 
Viet Nam would be diverting from a traditional, linear model into a more circular model of 
growth over time. The implementation of the TSD chapter and the EVFTA as a whole play an 
instrumental role in that context. 

Viet  Nam  established  a  Domestic  Advisory  Group  (DAG)  in  the  autumn  of  2021  and, 
following the second TSD committee meeting in October 2022, increased  membership from 
three to six. One extra member joined in the course of 2022 so the DAG’s members are currently 
seven.  According  to  recent  information,  Viet  Nam  is  currently  looking  at  the  possibility  to 
increase the number of members  from seven to 15.   

The Commission continues to encourage Viet Nam to further broaden the membership of its 
DAG. Once the national Decree on workers representative organisations will be adopted (see 
also above), it can be expected that the Viet Nam DAG would include independent workers. In 
this process the complexity to reach a consensus among stakeholders in Viet Nam, in particular 
with business representatives and Trade Unions representatives, should be factored in.   

13 

 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE FREE 
TRADE AGREEMENT BETWEEN THE EU AND ITS MEMBER STATES AND 
SINGAPORE 

1. 

THE AGREEMENTS 

The  economic  partnership  between  the  EU  and  Singapore  is  made  up  of  two  distinct 
agreements,  namely  a  free  trade  agreement  (EUSFTA)  and  an  investment  protection 
agreement.9  Negotiations  began  in  2009,  with  negotiations  for  the  trade  agreement  and  the 
investment protection agreement being completed in 2012 and 2017, respectively. The trade 
agreement entered into force on 21 November 2019, and the investment agreement will enter 
into force once ratified by the EU Member States.  These are the first agreements on trade and 
investment the EU ever concluded with an ASEAN Member State.  

Singapore is an important regional economic actor, and is part of a number of major regional 
trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific 
Partnership (CPTPP), the ASEAN Free Trade Area (AFTA) and the Regional Comprehensive 
Economic  Partnership  (RCEP).  Singapore’s  membership  of  ASEAN  also  gives  it  notable 
political as well as economic influence in the South East Asia region. Singapore was the largest 
ASEAN destination for EU exports of goods in 2022: EU exports to Singapore increased by 
15.9%  (from  €27.4  billion  in  2021  to  €31.7  billion  in  2022).  EU-Singapore  trade  in  goods 
increased by 21.7% in 2022, on a year-on-year basis. Singapore is the EU’s largest trade and 
investment partner in South East Asia, ranking as the EU’s 5th largest trade partner for services 
globally (€57.6 billion) and 5th largest FDI destination (€263 billion) in 2021, according to the 
latest figures available.  

The EU-Singapore trade and investment agreements contribute to solidifying the EU’s presence 
in the region. The agreements offer new opportunities for EU companies to expand into other 
South East Asian markets, as they provide them with more opportunities and stronger protection 
to do business in Singapore, which is the central hub in South East Asia. At the first inaugural 
trade committee meeting under the EUSFTA, held in December 2021, the EU and Singapore 
agreed to strengthen their bilateral partnership on digital trade, in view of their joint vision to 
work towards a digital and green economic recovery. EU and Singapore officials were tasked 
to start technical discussions to identify the relevant digital trade elements. In February 2023, 
the  EU  and  Singapore  signed  the  EU-Singapore  Digital  Partnership  and  adopted  its  first 
deliverable on Digital Trade Principles. 

9 The decision to “split” the agreement into a free trade agreement and an investment protection agreement was 
made following the Opinion 2/15 of the European Court of Justice on the allocation of competences between the 
European Union and the Member States. 

14 

 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

2.1  Market Access: Progress and outstanding issues 

During the third year of implementation of the EUSFTA, progress was made by Singapore in 
the implementation of its commitments within the Chapter on  Intellectual Property Rights 
(IPR): 

•  Singapore had committed to introduce border measures against counterfeit GI and 
pirated design goods, no later than three years after the entry into force of the EUSFTA. 
The legislative change was enacted by Singapore in November 2022.  

•  On 19 April 2022, the Trade Committee adopted a third Decision on GIs to include the 
registration  of  three  GIs  in  Singapore.  Since  then,  17  additional  GIs  have  been 
successfully registered in Singapore, which will be reflected in a future amendment of 
the relevant GI annexes of the EUSFTA.  

Progress was also made in the area of customs, facilitating trade through a switch towards the 
‘registered’ exporters, benefitting in particular also EU exporters of beer: 

•  The EU-Singapore Customs Committee Meeting at its first meeting on 22 November 
2022 adopted Decision amending Protocol 1 of the EUSFTA concerning the definition 
of  ‘originating  products’  and  methods  of  administrative  cooperation.  The  Decision, 
which entered into force on 1 January 2023, updates Protocol 1 to the 2022 version of 
the  Harmonized  System,  replaces  the  system  of  ‘approved  exporters’  by  ‘registered 
exporters’ and extends the coverage of three quotas for Singapore under the ‘Asian Food 
Quota’. The change to the registered exporter system is particularly relevant for EU 
exporters of beer to Singapore to facilitate benefitting from tariff preferences. 

•  The Parties also engaged in an exchange on recent developments in customs policy and 
legislation  and  review  the  state  of  play  of  the  mutual  recognition  of  the  EU  and 
Singapore  Authorised  Economic  Operators  programmes,  border  enforcement  of 
intellectual property rights and mutual administrative assistance in customs matters: 

2.2 

Trade and sustainable development: Progress and outstanding issues 

The  second    EUSFTA  Trade  and  Sustainable  Development  Board  meeting  and  Public 
Stakeholders’ Forum took place in Brussels on 22 and 23 March 202310.  

The main topics discussed included  

i) 

reflecting the EU TSD review outcome in the implementation of the TSD chapter 
with Singapore;  

10  https://policy.trade.ec.europa.eu/events/second-trade-and-sustainable-development-public-stakeholders-
forum-under-eu-singapore-free-trade-2023-03-23_en  

15 

 
 
 
 
 
 
 
ii) 

iii) 

ii) exchanging information on the developments regarding the EU’s Carbon Border 
Adjustment  Mechanism  and  Singapore’s  Green  Economy  Agreement  (GEA) 
initiative;  
iii) Progress towards ratification by Singapore of 3 outstanding fundamental ILO 
conventions.  

Singapore reported on steps taken to bridge the gaps between domestic labour legislation 
and  the  three  ILO  fundamental  conventions  No.  87  (freedom  of  association),  111 
(elimination of discrimination of work) and convention on forced labour (No. 105): 

• 

In regard to ILO Convention C105 on Abolishment of Forced Labour, Singapore has 
amended three pieces of legislation and expressed its intention to amend the remaining 
domestic legislation needed to fully comply with the ILO convention requirements and 
progress with the ratification.  

•  On  ILO  Convention  No  (C111)  on  Discrimination  (Employment  and  Occupation) 
Singapore indicated that it is taking steps to enact legislation to prohibit discrimination 
at  the  workplace.  However,  discussions  on  the  legislation  and  its  implementation, 
especially with employers in Singapore, are still ongoing. 

•  On ILO Convention No (C87) on Freedom of Association and Protection of the Right 
to Organize, Singapore indicated that it complied with the relevant core ILO principle 
already. In this context, the EU stressed the high importance of the international labour 
standards  and  conventions  and  the  important  role  of  the  ratification  of  the  ILO 
fundamental conventions and their effective implementation. Singapore indicated that 
it  will  continue  reporting  on  the  progress  made  towards  the  ratification  of  the 
outstanding ILO fundamental conventions. 

The EU-Singapore Public Stakeholders Forum met on 23 March 2023, discussions largely 
mirrored the ones at the TSD Board meeting. On 24 March, the EU and Singapore DAGs held 
a workshop (supported with the Commission funding) on “Digital economy and its connections 
to Sustainability”. 

16 

 
 
 
 
 
 
 
  
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 

ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND 
JAPAN 

1. 

THE AGREEMENT 

The  EU-Japan  Economic  Partnership  Agreement  (“the  EU-Japan  EPA”;  hereinafter  “the 
Agreement”)  entered  into  force  on  1  February  2019.  It  is  one  of  the  most  ambitious  trade 
agreements concluded by the EU so far, providing for broad-based trade liberalisation coupled 
with rules and disciplines on aspects such as labour rights, environmental protection, antitrust, 
corporate governance and the commercial activities of state-owned enterprises, among other 
topics. The agreement thus pursues and develops the EU’s strive towards comprehensive trade 
agreements, and it provides a sound basis for the development of economic relations between 
the Parties.  

The agreement is particularly important for the EU agri-food sector, offering huge potential for 
increasing EU exports of a large number of products, such as wine, pork, beef, cheeses and 
processed agricultural products.  

2. 

MAIN IMPLEMENTATION ISSUES 

2.1  Market Access: Progress and outstanding issues  

The first four years of EPA implementation have been overall satisfactory. Bilateral trade 
has quickly recovered from the Covid-19 crisis and trade flows are beginning to exceed pre-
pandemic level.  

Progress was made inter alia on the following issues:  

•  First,  the  Commission  continued  to  monitor  the  fill  rate  and  management  of  TRQs 
under the Agreement. Progress on the utilisation by te EU of TRQs granted by Japan is 
overall positive according to the Fiscal Year 2021 figures.  

•  Second, some promising results were achieved on offshore wind power,  where Japan 
took certain steps to simplify the approval procedures related to technical regulations. 
As a result, the second round of offshore wind tenders, published on 28 December 2022, 
shows  some  improvements  compared  to  the  first  round  in  2021,  especially  as 
discriminatory track record requirements were removed.   

• 

In 2022 Japan adopted a new customs law that is expected to curb the shipment of fake 
goods to Japanese consumers. 

17 

 
 
 
 
 
 
 
the  European  Commission  published 

three  studies11  containing 
In  autumn  2022, 
recommendations to Japan on how to simplify standardisation and certification requirements 
and  rules  related  to  offshore  wind  energy  tendering,  and  on  how  to  alleviate  restrictions  on 
foreign vessels’ access to work on offshore wind energy projects. These studies support Japan 
to reach its goals to increase the proportion of renewables in its energy mix and achieve climate 
neutrality by 2050.  

Among the outstanding issues are 

• 

the area of public procurement, as Japan has not  taken any further steps towards  a 
single point of access ensuring the automatic and immediate publication of all tenders 
falling  under  the  EU-Japan  EPA  or  the  WTO  GPA  –  progress  on  government 
procurement thus remains limited. 

•  Japan’s  overly  complicated  and  lengthy  market  access  approval  procedures  for 
certain EU agri-food products (fresh fruits and vegetables, beef from certain Member 
States). In order to address this issue, Japan needs to recognise the EU as a single entity 
as set out in the EPA. This would allow Japan to simplify its lengthy and duplicative 
assessments conducted for each EU Member State individually, in spite of a common 
framework of SPS rules in the EU.  

2.2 

Trade and sustainable development: Progress and outstanding issues  

Progress  was  made  in  2022  as  Japan  ratified  ILO  convention  C105  on  the  Abolition  of 
Forced Labour, following amendments to domestic legislation. The convention entered into 
force for Japan in July 2023.  

Also, the Committee on Trade and Sustainable Development of 28 February and 1 March 
202312 formally adopted a decision on the establishment of the panel of TSD experts13.  

11 Offshore wind: 
https://www.eeas.europa.eu/sites/default/files/documents/Japanese%20OWP%20Tenders_Aquilo%20Energy%2
0GmbH_publication102022.pdf; Maritime cabotage: 
https://www.eeas.europa.eu/sites/default/files/documents/Japanese%20OWP%20Cabotage_Aquilo%20Energy%
20GmbH_publication102022.pdf ; Standards, technical regulation and conformity assessment in the Japanese 
and European offshore wind power market: 
https://www.eeas.europa.eu/sites/default/files/documents/OWP%20Study%20-%20DTU-
REI_publication_EN_0.pdf  
12 Agenda of the meeting: https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-
fe32e36cbd0e/library/a5b439ce-67b1-4bf7-b0b4-3671dd8a325d/details  
13 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:22023D1124  

18 

 
 
 
 
 
 
 
 
 
 
 
 
Furthermore, the following additional issues were considered at the TSD Committee: 

•  Role and function of DAGs and implementation of sustainability provisions in trade 
agreements  of  Japan,  as  well  as  new  EU  initiatives  in  the  area  of  Corporate  Social 
Responsibility/Responsible Business Conduct (CSR/RBC).  

• 

In terms of trade and labour, the TSD Committee exchanged views on Japan’s efforts 
on the ratification of the ILO C111 on discrimination in employment and occupation as 
well as on their respective policies and approaches to the occupational safety and health.   

• 

In regard to environmental issues: 

o 

the EU presented the initiatives adopted by the in the framework of the Circular 
Economy package, as well as the proposal for a Revision of the Waste Shipment 
Regulation. Building on the recent collaboration in the area of plastics policy, 
the EU proposed a technical dialogue with a focus on product requirements for 
circularity by design. Building on the update on the EU Forest Strategy, the EU 
and  Japan  are  considering  the  possibility  to  hold  a  follow-up  technical-level 
meeting  on  the  EU  proposal  for  a  regulation  to  curb  deforestation  and  forest 
degradation. 

o  The Parties also updated each other on the respective policy developments on 
climate  change,  and  discussed  bilateral  cooperation  (the  Japan-EU  Green 
Alliance14). In relation to cooperation in multilateral fora, the Parties discussed 
the  (plurilateral)  Methane  and  Deforestation  Initiatives.  They  stressed  the 
positive contribution that bilateral discussions on trade and climate can bring to 
the  multilateral  processes,  as  was  done  through  the  June  2021  joint  event  on 
Trade  and  Industry  towards  Climate  Neutrality.  Further  work  may  involve 
cooperation on the development of standards and certification framework for the 
international trade for hydrogen.  

The Joint Dialogue with Civil Society was held on 3 March 2023. It provided an opportunity 
for active and engaged discussions between civil society representatives of both sides on all 
issues relating to Trade and Sustainable Development.  

•  The topics of responsible business conduct, due diligence and ratification of ILO 
conventions were identified as the key topics for cooperation, creating a positive 
dynamics. This was achieved inter alia by engagement of the EU DAG with some of 
the Japanese participants to the Joint Dialogue with Civil Society. Amongst others, 
Japanese unions offered to cooperate on the ratification by the EU Member States 
occupational safety and health ILO conventions (C155 and C187), and the EU unions 

14 eu-japan-green-alliance-may-2021.pdf (europa.eu)  

19 

 
 
 
 
 
 
 
 
 
 
showed interest in cooperating on the ratification by Japan of convention C111 on 
discrimination in employment and occupation.  

•  Considering the level of interest in the exchanges, the members of civil society of each 
side agreed to explore the possibility to hold a follow up bilateral meeting to further 
explore topics of interests, among these i) industry perspectives to deliver inclusive 
economic growth; ii) transition towards a carbon neutral economy (basically CBAM, 
EU taxonomy and sustainable finance) and iii) sustainable forest and land use.  

20 

 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
SOUTH KOREA FREE TRADE AGREEMENT 

1. 

THE AGREEMENT 

The Free Trade Agreement between the EU and its Member States and the Republic of South 
Korea (in this report referred to as “the EU-South Korea FTA”) has been provisionally applied 
since July 2011. On 13 December 2015 it entered formally into force after ratification by EU 
Member  States.  The  Additional  Protocol  to  the  FTA,  to  take  into  account  the  accession  of 
Croatia to the EU, has been provisionally applied since 26 May 2014 and it entered into force 
on 1 January 2016. 

The EU-South Korea FTA is the first of a new generation of comprehensive trade agreements 
which, apart from market opening commitments also offers a basis for regulatory co-operation 
in  key  sectors  as  well  as  a  substantial  chapter  on  sustainable  development  with  binding 
provisions upholding and promoting social and environmental standards.  

2. 

MAIN IMPLEMENTATION ISSUES 

2.1  Market Access: Progress and outstanding issues 

The  12  years  old  free  trade  agreement  between  the  EU  and  South  Korea  remains  a  solid 
foundation of the bilateral relationship, supporting a robust increase in bilateral trade as well as 
both  economies’  green  and  digital  transition.  In  this  context,  both  sides  continued  working 
constructively on the implementation of the agreement and a number of FTA working groups 
and committees took place in the second half of 2022 and the first quarter of 2023. The 10th  
EU-Korea Joint Trade Committee met in November 202215. 

Progress was made in implementing the EU–South Korea FTA in a number of areas:  

•  Sanitary and phyto-sanitary measures: As a result of intense high-level engagement 
between the Commission and South Korea, EU Member States can, as of 5 September 
2022, export pork and poultry to Souh Korea more easily. The Ministry of Agriculture, 
Food and Rural Affairs of South Korea (MAFRA) has decided to remove a longstanding 
trade barrier, which affected EU exports of pork and poultry products, as South Korea 
now  recognises  the  EU's  stringent  regionalisation  measures  to  control  outbreaks  of 
African  swine  fever  and  the  highly  pathogenic  avian  influenza.  This  decision  could 
unlock over one billion euros of trade in the next years.  

• 

In  the  area  of  IPR  protection,  following  the  completion  of  the  necessary  domestic 
procedures  on  both  sides,  on  30  November  2022,  the  EU-Korea  Trade  Committee 
adopted a decision on the amendment of the GI Annexes (Annexes 10-A and 10-B) and 

15 Joint minutes of the 10th EU-Korea Trade Committee are available here: 
https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/48fd33f9-6949-4cf4-9b2b-
2974127a7f28/details  

21 

 
 
 
 
 
44 EU GIs and 41 Korean GIs were added to Annexes. The amendment entered into 
force on 1st January 2023.   

•  Negotiations with South Korea have resumed with a view to setting out the principles 
of the regulatory framework applicable to postal and courier services, as envisaged by 
Article 7.26 of the free trade agreement between the EU and South Korea. Significant 
progress is so far recorded with the Parties aiming at concluding negotiations swiftly. 
EU suppliers will be able to benefit from legal certainty and transparency and operate 
in a fair postal and courier market. 

•  The EU and South Korea continued technical discussions on the need to update the FTA 
annexes  dedicated  to  cars  and  electronics.  In  addition,  both  sides  had  constructive 
exchanges  about  the  need  to  ensure  a  level  playing  field  for  vehicle  manufacturers, 
irrespective of their origin, in the run-up to the introduction of policies related to electric 
vehicle subsidies in South Korea.  

•  Last but not least, the Commission services and the South Korean authorities further 
continued  technical  cooperation  on  e-certification  and  harmonisation  of  health 
certificates to further facilitate trade of several processed agri-food products. 

However, there are also a number of outstanding issues EU business is confronting in South 
Korea and on which the Commission has been focusing in 2022:  

Sanitary  and  phyto-sanitary  measures:  Among  several  outstanding  SPS  barriers  for  the 
exports of the EU, the lack of access of EU beef to the South Korean market is the most striking 
concern, as the market has been closed to EU imports since the early 2000s. In 2019, South 
Korea approved the application of two Member States (Denmark and The Netherlands), who 
can export beef to Korea. However, other Member States (10 in total) are still waiting for the 
finalisation of their approval process. 

Sector of offshore wind energy: This is a sector that has seen a surge in new market access 
issues for the more than 50 EU companies present in South Korea, which are involved in the 
offshore wind business, ranging from the largest wind power developers and manufacturers of 
turbines  to    small  businesses,  one-man  businesses  and  consultancies,  and  certification 
companies. 

• 

In December 2021, South Korea introduced Local Content Requirements (LCRs) in the 
form  of  new  calculation  method  for  energy  pricing,  which  yielded  higher  prices  for 
windfarms using at least 50% of domestic parts. The measure triggered immediately a 
demarche by the EU and was raised in a letter of EVP Dombrovskis to South Korea’s 
Trade Minister and at the EU-Korea Trade Committee in November 2022. In February 
2023, the Korea Energy Agency published a legislative amendment that resolved  the 
50% rule. However, the non-financial criteria that account for 40% in the outcome of 
the newly-introduced competitive bidding procedure are opaque, and therefore possibly 

22 

 
 
 
 
 
still include hidden LCRs. The EU will follow closely the process and outcome of the 
new procedure and will continue to advocate more regulatory clarity and transparency. 

•  Moreover, the authorisation procedure for offshore wind projects is particularly  lenghty 
and  complex.  It  involves  a  set  of  separate  procedures  that  place  a  heavy  burden  on 
companies seeking to enter the market. A bipartisan legislative proposal recently tabled 
in the National Assembly aims at centralising the responsibility with federal ministries. 
The EU expects that it will simplify the development of projects and will closely follow 
its implementation, including its its impact on projects that are already at an advanced 
stage.  

2.2 

Trade and sustainable development: Progress and outstanding issues  

The 8th TSD Committee met on 15 and 16 September 202216. 

Over  the  reporting  period,  progress  was  achieved  on  labour  issues,  notably  the 
implementation  by  South  Korea  of  the  Panel  of  Experts’  report17  of  January  2021  in  the 
bilateral labour dispute launched by the EU under the TSD Chapter of the EU-South Korea 
FTA: 

• 

In  this  context,  progress  was  achieved  in  regard  to  three  fundamental  ILO 
Conventions in 2022, namely on No 87 on the Freedom of Association and Protection 
of the Right to Organise, No 98 on the Right to Organise and Collective Bargaining 
and No 29 on Forced Labour – all three of which entered into force in South Korea.  

•  The  Commission  continues  to  follow  the  implementation  and  enforcement  of  these 
conventions.  Concerning  freedom  of  association,  the  EU  continued  to  monitor  the 
implementation of the amendments in the Korean Trade Union Act required to conform 
with the Panel report. The matter was raised at the TSD Committee and at the Trade 
Committee.  Discussions  mainly  revolved  around  the  possibility  for  dismissed  and 
unemployed workers to  join trade unions, the eligibility  of trade union  officials, the 
access  of  self-employed  workers  to  trade  unions  and  the  certification  procedure  for 
trade  unions  in  South  Korea,  who  considers  that  it  has  fully  implemented  the 
recommendations  of  the  Panel  Experts  by  revising  the  Trade  Union  and  Labour 
Relations  Adjustment  Act  (TULRAA),  while  the  EU  believes  that  practical 
implementation  is  uneven  and  continues  to  monitor  progress.  The  Parties  agreed  to 
continue discussions at the next TSD committee, to be held in the third quarter of 2023. 

Outstanding issues in  the area of labour include the ratification  by South  Korea  of the last 
pending fundamental ILO Convention by South Korea, namely No 105 on the Abolition of 
Forced Labour: 

16 Joint minutes are available here: file:///C:/Users/embergi/Downloads/8th%20Session%20-
%20September%202022%20-%20Joint%20Minutes.pdf  
17 This report as well as other relevant documents are available on the Commission’s webpage at 
https://ec.europa.eu/trade/policy/accessing-markets/dispute-settlement/bilateral-disputes/ (Korea labour). 

23 

 
 
 
 
 
 
•  This was discussed in detail at senior official level at the TSD Committee (September 
2022). South Korea’s Trade Minister subsequently confirmed at the Trade Committee 
(November  2022)  Korea’s  commitment  to  continue  its  sustained  efforts  towards 
ratification.  

•  The  EU  translated  Sotuh  Korea’s  report  identifying  the  domestic  legislation  that 
requires amendments and held a workshop in Seoul with stakeholders on the matter. 
The  workshop  identified  a  number  of  legal  incompatibilities  that  would  need  to  be 
addressed before Korea may ratify this Convention, in particular in connection with 
prison labour and with criminal prosecution of labour-related activities. 

In regard to environmental issues, the EU and South Korea substantially enhanced in 2022 
their  exchanges  on  environmental  and  climate  matters.  At  the  8th  TSD  committee  they 
discussed  the  following  items:  circular  economy,  deforestation-free  supply  chains,  global 
agreement against plastic litter, taxonomy, Convention on Biological Diversity, climate change 
policy developments and domestic implementation of the Paris Agreement and opportunities 
for enhanced cooperation on climate change. Discussions on these matters are carried forward 
in informal contacts during the year. Bilateral exchanges on these issues have also intensified 
in the framework of the discussions towards an EU-Korea Green Partnership18.  

18 See: https://ec.europa.eu/commission/presscorner/api/files/attachment/875269/EU-
Korea%20Green%20Partnership%20-%20text.pdf  

24 

 
 
 
 
 
3. 

ACTIVITIES SUBJECT TO SPECIFIC MONITORING   

In line with Article 14 of the FTA Protocol on Rules of Origin, South Korea’s imports of key 
car  parts  and  electronics  from  the  most  important  suppliers  (outside  the  EU)  have  been 
monitored.  Like in previous years, China and Japan remain the largest car parts suppliers. Japan 
still pays full duty  on car parts while China benefits  from  tariff reduction (within  the South 
Korea-China agreement most car parts will be liberalised in 10 or 15 years).  

Within  the  Regional  Comprehensive  Economic  Partnership  (RCEP),  South  Korea  excludes 
from liberalisation the key car parts such as engines, lithium-ion batteries, and a large number 
of car parts of 8708 for both Japan and China. 

The import pattern has not fundamentally changed since the EU-South Korea FTA has been 
signed  and  there  has  been  no  significant  increase  in  imports  of  car  components  and  key 
electronics  from  the  largest  suppliers  into  South  Korea  in  2022  compared  to  2021.  Korea’s 
imports of combustion (gasoline and diesel) engines and parts for engines (HS 8407, 8408 and 
8409) slightly increased in 2022 compared to 2021 (+8%), as well as the imports of core car 
parts (HS 8708) (+10.8%). The EU remains the largest supplier of diesel engines (HS 8408) 
and an important supplier of parts and accessories of the motor vehicles (HS 8708). 

In  2022,  Korea’s  imports  of  lithium-ion  batteries  (HS  870560)  –  mainly  from  China  –  has 
significantly increased to $3.3 billion (+79%) but those imports remain below Korea’s exports 
of lithium-ion batteries ($7.3 billion). 

Based on these trade statistics, it is not possible to establish a link between the allowance of 
duty drawback and the increase in EU imports of cars (+29%) from South Korea. 

25 

 
 
 
 
 
PART II:  

THE AMERICAS 

26 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
CANADA COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT (CETA) 

1. 

THE AGREEMENT 

The EU-Canada Comprehensive Economic and Trade Agreement (“CETA”; herinafter ‘the 
Agreement’) has been provisionally applied since 21 September 2017 awaiting ratification by 
all Member States to enter into force.  

CETA has been implemented in all of those areas that are provisionally applied; the agreement 
has  an  extensive  governance/management  structure  with  19  dedicated  committees  and 
dialogues/fora reporting directly to the Joint Committee, which meets at ministerial level.  

CETA serves as a platform for EU-Canada cooperation on the environment or raw materials.  
2022 and early 2023 saw the continuation of a series of joint events launched at the 2021 EU-
Canada  summit19,  notably  four  workshops  to  promote  sustainability,  environmental 
stewardship  and  climate  action  in  agriculture.  Another  summit  outcome,  the  EU-Canada 
Strategic Partnership on Raw Materials, complementing the annual bilateral dialogue on raw 
materials,  aims  at  diversifying  sources  of  important  green  and  digital  economy  inputs  away 
from less like-minded producers to fostr competitive EU-Canada supply chains.  

On 21 September 2022, to mark CETA’s fifth anniversary, DG TRADE and the EUCCAN 
(the European Union Chamber of Commerce in Canada) co-hosted an event dedicated to small 
and medium sized enterprises (SMEs) with 90 participants attended, including European SMEs, 
stakeholders and national authorities. A training on the platform Access2Markets20 and its tools 
was carried out by the Commission/DG TRADE for stakeholders in Canada on 2 March 2023 
in cooperation with the EUCCAN. 

To promote the benefits of CETA, an EU FPI project is supporting the implementation of the 
agreement, including by organising webinars for European companies covering several aspects 
such as procurement and investment opportunities and conformity assessment procedures. 

20  
20  

https://trade.ec.europa.eu/access-to-markets/en/home  
https://trade.ec.europa.eu/access-to-markets/en/home  

27 

 
 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

2.1   Market Access: Progress and outstanding issues  

At the third meeting of the CETA Joint Committee on 2 December 2022 the Parties reviewed 
the implementation of the Agreement in various areas, took note of the positive evolution of 
EU-Canada trade flows, which have increased by more than 30% since CETA’s entry into force 
and had an exchange of views on a number of issues related to joint work between the EU and 
Canada under CETA (see also further below).  

Progress was achieved on market access issues in 2022 in a variety of areas. 

On  wines  and  spirits,  progress  was  made  in  removing  certain  discriminatory  measures 
maintained at federal and provincial level: 

•  On 30 June 2022, Canada eliminated the federal excise duty exemption for local wines.  

•  There is  also  an announced path  towards  compliance by provinces (Ontario, Quebec 
and Nova Scotia) to remove certain discriminatory measures on wines (by mid-2023, 
end  2023  and  mid-2024  respectively),  which  the  Commission  continues  to  monitor 
closely21. 

•  The  EU  and  Canada  also  consider  amending  the  annexes  of  the  2003  Agreement 
between the European Community and Canada on trade in Wines and Spirits Drinks, 
incorporated  into  CETA,  notably  by  adding  more  EU  geographical  indications  (GIs) 
and oenological practices to those annexes. 

On the CETA tariff-rate quota (TRQ) for cheese of all types granted by Canada to the EU, a  
96%  fill  rate  was  achieved.    Nevertheless,  the  EU  continued  to  raise  its  concerns  with  the 
administration of this CETA TRQ and called upon Canada to introduce improvements in the 
context of its comprehensive TRQ review. 

In the area of sanitary and phytosanitary measure (SPS) Canada finally authorised the import 
of blueberries from Spain within the framework of an import testing period, after an application 
procedure lasting 2 years. 

At  the  same  time,  several  market  access  issues  are  still  outstanding  and  continue  to  be 
discussed with Canada, notably in the area of SPS: 

•  Canada still does not recognise as pest free areas six EU Member States affected with Asian 
and Citrus longhorned beetles, and has been requesting more information. 21 EU Member 
States are already recognised by Canada as pest free.  

•  The  EU  side  continued  efforts  to  obtain  approval  of  exports  of  meat/poultry  from  EU 

Member States that are not yet recognised by Canada for these products. 

21 Ontario harmonised the tax rates applicable to Ontario and non-Ontario wines sold in off-site winery retail 
stores on 1 July 2023. 

28 

 
 
 
 
 
 
 
 
•  The  EU  continues  to  discuss  also  the  possibility to  export  to  Canada  fresh  tomato  with 

vines, stems, and calyces as well as cherries from Spain.   

•  Overall, the work on the harmonisation of EU export certificates continued, with priorities 

put forward by both sides. 

In addition, there are still various concerns in the area of IPR.  Of particular concern is on 
geographical indications the lack of administrative procedure for rightholders to enforce their 
rights, which means that litigation is the only effective route at rightholders’ disposal, with all 
the costs that this entails. Other problem relates to the absence of a list of grandfathered prior 
users of certain names protected under CETA. The lack of direct remedies for damage to the 
reputation/image of a GI makes it difficult for GI rightholders to enforce their rights. There are 
also  concerns in the  area of  copyright, in  particular on the scope of exceptions for teaching 
purposes;  concerning  trademarks,  where  the  Canadian  Intellectual  Property  Office  can  take 
more than 3 years to process a trademark and on border enforcement, where there is a significant 
decrease in seizures and detentions are costly and burdensome.  

In  2022,  the  EU  and  Canada  concluded  negotiations  of  a  Mutual  Recognition  Agreement 
(MRA)  concerning  the  professional  qualifications  of  architects22,  which,  once  formally 
adopted23, is expected to further boost trade in services.  

In addition, the CETA Joint Customs Cooperation Committee24 at its meeting on 28 October 
2022 adopted Decision No 1/2022 of the European Union – Canada Joint Customs Cooperation 
Committee  concerning  the  Mutual  Recognition  of  the  Authorised  Economic  Operator 
Programme of the European Union and the Partners in Protection Programme of Canada. 
The decision marks an important milestone in the implementation of the Agreement between 
the  EU  and  Canada  on  customs  cooperation  with  respect  to  matters  related  to  supply-chain 
security (SCSA). When implemented, it will improve supply chain security and further facilitate 
bilateral trade between Canada and the EU. 

2.2 

Trade and sustainable development: Progress and outstanding issues  

In  June  2021  at  the  EU-Canada  Summit,  EU  and  Canada  leaders  launched  a  series  of  joint 
events to promote sustainability, environmental stewardship and climate action in agriculture, 
within the framework of the Agriculture  Dialogue under CETA, notably  a workshop on the 
reduction  of  greenhouse  gas  (GHG)  emissions  in  the  livestock  sector  (March  2022)  and  on 
organic  production  (June  2022).  On  25  January  2023,  a  workshop  on  sustainable  use  of 
fertilisers took place.  

22 eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52022PC0343  
23 The MRA has been adopted by Council in October 2023 but it will only come into effect in  2024, once the 
Canadian internal procedure will have been completed. 
24 Report of the 5th JCCC meeting : https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-
fe32e36cbd0e/library/bf9cdc18-145e-48ee-a110-9a4921d1018e/details  

29 

 
 
 
 
 
 
 
At the fourth annual meeting of the CETA Trade and Sustainable Development Committee, 
which  took  place  on  9  and  10  February  2022,  the  EU  and  Canada  discussed  a  number  of 
implementation issues, notably:  

• 

• 

In the area of trade and labour, parties discussed future cooperation on a number of 
policy  areas,  including  combatting  forced  and  child  labour  in  global  supply  chains. 
Both  sides  highlighted  their  support  to  the  International  Labour  Organization  (ILO), 
their  close  collaboration  in  the  ILO  work  and  support  to  ILO’s  technical  assistance 
projects,  including  in  promoting  global  ratification  of  the  ILO  conventions,  notably 
Convention 190 on Violence and Harassment. They also reaffirmed their commitment 
to further coordinate efforts to address forced labour in multilateral fora, in particular at 
the OECD and the G7. 

In the area of the environment, the EU and Canada exchanged views on topics such as 
energy  transition,  climate  adaptation  and  greening  of  supply  chains.  They  also 
exchanged  on  recent  developments  on  climate  change  and  environment  policy, 
agreeing to explore future cooperation in these areas. Discussions also covered a number 
of  ongoing  cooperation  initiatives  including  on  carbon  pricing  and  border  carbon 
adjustments, plastic pollution and circular economy, and chemicals management, and 
biodiversity. This included an expert exchange on the impacts of trade on biodiversity 
held in January 2022.  

•  Furthermore,  on 

the 

implementation  of 

the  CETA  Trade  and  Gender 
Recommendation, parties noted good progress, in line with the Trade and Gender work 
plan, on exchanges and events aimed at sharing information on policies, laws and best 
practices on a range of issues, notably on the development of gender-relevant standards. 

•  On  corporate  social  responsibility  (CSR)  and  responsible  business  conduct  (RBC), 
both Parties recognized that the relevant experts were in touch and are planning to share 
best practices, once the EU’s new RBC strategy is launched; 

•  Finally,  the  EU  and  Canada  took  note  of  the  ongoing  work  on  the  EU  TSD  review 
Communication.  Canada  re-iterated 
the  effective 
enforceability  of  provisions  in  the  TSD  chapters  on  environment  and  labour  and  its 
commitment to continue to work with the EU on this. 

their  objective 

to  pursue 

In line with previous CETA TSD Committee meetings, the Committee was joined by the Chairs 
of the Canadian and the EU Domestic Advisory Groups (DAGs) under CETA and welcomed 
their  feedback  and  suggestions  for  collaboration  under  the  CETA  TSD  chapter,  including  a 
request to have more informal interim discussions with the TSD co-chairs on related updates. 
The EU and Canadian DAGs had their fourth joint meeting a few days before the meeting of 
the CETA Trade and Sustainable Development Committee: 

•  At the meeting, the Canadian DAGs provided updates on the implementation of the 

Canada-United States-Mexico Agreement (CUSMA) and first cases;  

30 

 
 
 
•  EU DAGs updated on the consultation process in the EU on the review of the TSD 

chapters of CETA;  

•  The  DAGs  also  held  a  debate  on  the  impact  of  the  COVID19  pandemic  on  supply 
chains  from  the  perspectives  of  forced  labour/sustainable  development/labour 
rights/environment. 

The 4th CETA Civil Society Forum met before the CETA TSD Committee, with more than 
150  registered  participants  from  across  the  EU  and  Canada  from  business,  social  partners, 
environmental  organizations  and  other  civil  society  representatives.  Four  thematic  sessions 
explored the following topics: (i) Trade and Environment / Trade and Climate Change; (ii) EU-
Canada  Cooperation  on  Labour;  (iii)  Developments  in  the  field  of  Trade  and  Sustainable 
Development,  Trade  and  Labour  and  Trade  and  Environment  –  Policy,  Implementation, 
Enforcement; and (iv) CETA recommendations on SMEs and Trade and Gender. 

31 

 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
COLOMBIA/ECUADOR/PERU TRADE AGREEMENT 

1. 

THE AGREEMENT 

The  Trade  Agreement  with  Colombia  and  Peru  (hereinafter  the  ‘Agreement’)  has  been 
provisionally applied with Peru since 1 March 2013 and with Colombia since 1 August 2013. 
Negotiations on a Protocol of Accession of Ecuador to the Agreement were concluded in July 
2014 and the Protocol  is being  provisionally  applied since 1 January 2017. Ratifications by 
Member States of both the Trade Agreement and the Ecuador Protocol are ongoing.  

The Trade Agreement was also amended through the Protocol of Accession of Croatia to the 
EU. The Protocol  entered into force with  Peru on 1 May 2017. Ratification by Colombia is 
ongoing. 

The supervision and facilitation of the operation and further development of the Agreement – 
including the evaluation of results obtained from the application of the Agreement – is under 
the direct responsibility of the Trade Committee, which comprises representatives of the EU 
and representatives of each signatory Andean Country. The Committee also supervises the work 
of  all  specialised  bodies  (e.g.  the  Sub-committees)  established  under  the  Agreement.  The 
decisions  adopted  by  the  Committee  are  binding  upon  the  Parties,  which  are  to  take  all 
necessary  measures  to  implement  them.  The  Trade  Committee  is  scheduled  to  meet  at  least 
once a year. 

The Agreement has helped to stabilitise trade despite fluctuations in commodity prices and a 
contributing factor supporting the diversifation of the economy of the three EU trading partners, 
and a good basis for cooperation.  

32 

 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

In  2022,  the  EU  and  the  Andean  partner  countries  continued  their  work  to  improve  the 
implementation of the Agreement, including through  cooperation supported by EU projects 
and seminars. Examples include the IP Key Latin America25 project in the area of intellectual 
property, the LCBA project26, the RBCLAC project27 implemented in partnership between 
the OECD, ILO and UN OHCHR, a number of seminars targeting specific concerns in the area 
of  SPS  and  Trade  and  Sustainable  Development  (TSD),  and  the  EU  Seminars  for  the 
commemoration of the Fifth Year of the Implementation of the EU-Andean Trade Agreement 
in Ecuador.  

The 9th Trade Committee met in Quito, Ecuador, on November 16th 2022. The meetings of the 
eight specialised Sub-committees  took  place in  hybrid  format during the month of October 
2022. The next (10th) Trade Committee will be chaired by Colombia. 

2.1  Market Access: Progress and outstanding issues 

Colombia 

In 2022, progress was made in particular in the area of beverages and food: 

•  The EU successfully challenged Colombia’s antidumping measures against EU exports of 
frozen fries at the WTO. The final and binding award of the Appeal Arbitrators was issued 
to the parties on 13 December 2022 and represented both a broad victory for the EU and a 
confirmation that through the MPIA, appeal proceedings at the WTO can be managed in a 
focused and efficient way while fully respecting parties’ rights (see in more detail below, 
point 3.2).  

•  The EU side worked hand in hand with Colombian authorities to avoid a new barrier for 
alcoholic  beverages,  that  would  have  required  exporters  to  provide  additonal  Good 
Manufacturing Practices certificates. Colombia agreed to modify its legislation in order to 
remove this requirement. EU Delegation Bogota is closely following the amendments being 
prepared by the competent authorities.  

•  Similarly,  the  EU  Delegation  -in  close  coordination  with  Eurochambers-  succeded  in 
preventing a barrier regarding requirements on the use of fortified flour, including for 
products with low flour content, which would otherwise hamper EU exports.  

Progress was also registered in the area of public procurement, where the EU and Colombia 
continued discussions regarding the difficulties faced by EU companies  with tenders at sub-

25 https://ipkey.eu/en/latin-america 
26 Low Carbon Business Action: https://latam.lowcarbonbusinessaction.com/ 
27 Responsible Business Conduct in Latin America and the Caribbean: https://mneguidelines.oecd.org/rbclac.htm 

33 

 
 
 
 
 
 
central level. Colombia produced an indicative list of sub-central level authorities covered by 
the Agreement, which EU companies can consult when facing difficulties with these authorities.  

A number of other outstanding markt access issues persist, including the following: 

•  EU exports of biological controllers are affected by Colombia´s norms and procedures, 
which do not appear fit to govern this type of products. This is especially the case for 
maximum residue limits (MRL) for pesticides, as biological controllers could replace 
chemical  pesticides.  The  EU  will  continue  to  monitor  Colombia´s  work  to  improve 
regulations and reduce red tape in this sector.  

•  Colombia also  needs  to conclude its investigation on the usurpation of Geographical 

Indications (GIs) of EU´s cheeses.  

Peru 

•  Progress was made in the area of Technical Barriers to Trade, where Peru in July 
2023, following consultations under the EU-Andean trade agreement and at the WTO, 
informed the EU and other WTO members that it has adapted its legislation to allow the 
use of adhesive labeling on food products indefinitely. This permanent solution brings 
relief  for  companies.  Earlier  temporary  permissions  were  not  sufficient  as  Peruvian 
markets would stop buying products with stickers several months before each deadline,  
causing significant losses for importers and producers, as well as disrupting trade flows 
and leading to shortages of the affected products. 

•  Limited progress was made in the area of public procurement, where the Peruvian 
government  provided  training  to  entities  carrying  out  public  procurements,  although 
additional efforts are necessary to fully address existing barriers.  

A number of challenges persist: 

•  Among others, Peru continues to grant a more favourable tax treatment to local Pisco 

to the detriment of EU alcoholic beverages.  

•  Furthermore, Peru has yet to approve harmonised certificates to  allow prelisting for 
EU establishments of processed meat products and deboned bovine meat. Similar to 
Colombia, Peru’s lack of recognition of the regionalisation principle enshrined in the 
Agreement is of very strong concern. Since early 2020 Peru has in place a ban of all 
exports of live pigs and pig meat from 12 Member States due to ASF (African Swine 
Fever). In early 2022, the whole territory of Italy was added to this ban and the existing 
certificates are no longer recognised by the Peruvian sanitary authority as a response to 
a  limited,  and  subsequently  controlled,  outbreak  of  ASF  found  in  wild  boar  in  two 
regions in the north of the italian territory. 

34 

 
 
 
 
 
 
 
 
• 

• 

In  the  field  of  public  procurement  there  are  also  concerns  regarding  technical 
specifications in public tenders. 

In the area of IPR, there is the issue of an alleged infringement of the EU GI 
“Bourgogne” due to the registration of trade marks (wine labels) bearing the name 
“Borgoña”. The EU side granted protection to six new Peruvian Geographical 
Indications under the Agreement 28, which should further contribute develop Peru’s 
value-added agricultural exports. 

For Peru, the Agreement continues to promote diversification of Peruvian exports to the EU, 
i.e. promoting a gradual shift away from reliance on mineral products towards a range of higher 
value agricultural products. In terms of agricultural goods exported to the EU,  certain product 
categories such as fruit, fresh or dried, excl. citrus & tropical fruit (16,8%), vegetables, fresh, 
chilled  and  dried  (17,6%)  and  citrus  fruit  (39%)  saw  an  important  growth  compared  to  the 
previous year29. Between  2012 and 2022, Peruvian agri-exports to  the EU grew in  value by 
143%.  In 2012, agri-exports represented 23% of total Peruvian exports to the EU; in 2022, they 
represented 47%.  

Ecuador 

In 2022, a number of market access barriers were successfully addressed in meetings of the 
institutional bodies and via EU demarches carried out by the EU Delegation in Ecuador, with 
substantial progress on agriculture implementation issues. 

•  The 10-year ban on imports of powder milk30, in place since 17 August 2022, was 
lifted  (for  the  EU)  following  cooperation  between  the  EU  Delegation  and  Member 
States.  This  was  crucial  to  remove  a  barrier  that  would  have  otherwise  harmed  EU 
exports and Peruvian domestic milk production, alike. 

•  The long-standing barrier regarding the disruptive and intransparent management of 
TRQs granted by Ecuador to the EU and of products under non-automatic licenses was 
finally  solved  in  November  2022.  As  a  result  of  this  system,  trade  in  agricultural 
products suffered from great uncertainty and EU exporters were not able to exhaust the 
TRQs,  particularly  in  dairy  and  pork.  A  creative  soluction  was  found  by 
accommodating both parties´ concerns: for the EU, to have a predictable and market-
oriented system and for Ecuador to avoid monopolisation of the use of the quota by 
single operators.   

28 ACEITUNA DE TACNA, CACAO AMAZONAS PERÚ, CAFÉ MACHU PICCHU – HUADQUIÑA, CAFÉ 
VILLA RICA, LOCHE DE LAMBAYEQUE, MACA JUNÍN-PASCO. 
29 https://agriculture.ec.europa.eu/system/files/2022-05/agrifood-peru_en_0.pdf  
30 Powder milk in Ecuador is protected by a TRQ (Art.23 Annex IV Section D. Schedule of the elimination of 
TRQs). 

35 

 
 
 
 
 
 
 
 
 
 
• 

In relation to EU Geographical Indications (GIs), the re-submission to protect the EU 
GI  for  a  Czech  beer  (“ČESKOBUDĚJOVICKÉ  PIVO)  was  finalized  and  the  GI 
successfully registered as a protected GI in Ecuador. The EU effectively protected three 
Ecuadorian IGs: Café de Galápagos, Maní de Transkutukú and Pitahaya Amazonica 
de Palora in 2022. There are two ongoing applications from Ecuador, Lojano café de 
Origen (coffee) and Miske (an agave distillate). 

A number of challenges persist: 

•  Regarding the protection of plant varieties, the Ecuadorian IP Code contains a number 
of provisions that raise concerns of legal certainty in its implementation. Moreover, EU 
stakeholders continue reporting serious problems with effective enforcement of plant 
variety rights as the competent authorities do not impose or effectively collect financial 
penalties  from  farmers  which  are  cultivating,  selling  and  exporting  protected  plant 
varieties without paying due royalties to the rightholders. 

•  The usurpation of the EU GI “Feta” case by Ecuador still continues and needs to be 

terminated. 

For Ecuador, the Agreement has been a turning point since it was the beginning of a more open 
trade  policy  towards  the  world  and  greatly  contributed  to  improving  Ecuador´s  legal 
framework,  the  business  environment,  and  generated  increased  opportunities  for  market 
diversification.  Ecuador  commemorated  the  Fifth  Year  of  the  Implementation  of  the 
Agreement, marking a peak in the EU-Ecuador bilateral relationship: In 2022, bilateral trade 
exchange between the EU and Ecuador increased by 22% to EUR 6,728 mn compared to the 
previous year.  

2.2 

Trade and sustainable development: Progress and outstanding issues  

The  implementation  of  the  TSD  Chapter  was  reviewed  at  the  meeting  of  the  TSD  Sub-
committee  held  in    October    2022  where  the  Parties  discussed  recent  policy  developments 
related to labour and environment, TSD-related cooperation activities and relevant priorities.  

As regards TSD issues, the EU side remains focused on labour related issues (inspections, 
freedom  of  association  and  collective  bargaining,  child  labour,  social  dialogue,  labour 
informality). Concerning environmental policies, priorities have expanded to include legislative 
developments in areas related to circular economy, biodiversity, deforestation, and initiatives 
to address global environmental challenges. 

•  Vis-à-vis Ecuador, the EU side reiterated the importance of an effective follow up to 
the ILO recommendations concerning the implementation of the ILO Convention C 
87 on freedom of association, in particular now that the matter has been seized by the 
judiciary at various levels. Legislation needs to be amended to reduce the minimum 
number of members (30) required to  establish workers' associations and enterprise 

36 

 
 
 
 
 
committees  and  reduce  minimum  requirement  (50%)  to  negotiate  collective 
agreements.  In  addition,  there  are  obstacles  to  the  recognition  of  trade  unions  per 
branch or activity.  In February 2023, Ecuador officially requested to become part of 
the Global Alliance on Circular Economy and Resource Efficiency, GACERE.  

•  Vis-à-vis Colombia, the EU side has again expressed its concerns about the attacks 
on trade unions and social leaders, while it acknowledged the recent efforts made by 
the government to persecute those responsible for violent crimes.  The EU also 
recalled the importance of social dialogue as a pre-condition to address the root 
causes of violence. In 2022, through its cooperation projects, the EU continued to 
support Colombia’s move towards a more sustainable and environmentally 
friendly economy, including a pilot project on sustainable mining in the poverty-
ridden pacific region of Colombia. Furthermore, Colombia took part in the EU´s 
regional programmes on the fight against Antimicrobial Resistance, the promotion 
of Responsible Business Conduct and the adoption of Low Carbon and Circular 
Economy business actions. 

•  Vis-à-vis  Peru,  exchanges  touched  upon  various  topics  of  concern  in  the  area  of 
labour, in particular the persistent challenges to the freedom of association and of anti-
union violence, and the need to continue with domestic reforms to implement core 
ILO recommendations. Among the environmental topics, the EU stressed the need to 
continue building the capacity and strengthen the systems for environmental quality 
control.  

The European Commission is also dealing with a complaint under the Single Entry Point by 
a Dutch NGO against Peru and Colombia, which concerns labour rights in the mining sector 
in Peru and Colombia. The Commission  informed  the  complainant, the Dutch NGO CNV 
International on 13 January 2023 of the results of its preliminary assessment. The Commission 
also informed Peru and Colombia and published information about this alleged situation on its 
website31. The preliminary assessment identified potential shortcomings in the enforcement of 
labour laws in both countries. The European Commission is currently working on its assessment 
of this complaint and will make available information of its conclusions as soon as its work is 
finalised.  

At the meeting of the TSD Sub-Committee, the EU side presented and engaged on a number 
of  EU  policies  dedicated  to  sustainability  issues,  providing  information  on  the  various 
initiatives  undertaken  under  the  Green  Deal  –  from  CBAM  to  horizontal  due  diligence  and 
related  sectoral  legislation  (Sustainable  Product  Initiative,  deforestation),  as  well  as  forced 
labour, and to address the consultations with civil society.  

•  Regarding the European Green Deal and other EU climate policies, there is shared 
interest by all parties on issues like circular economy, deforestation and biodiversity. 

31 https://circabc.europa.eu/rest/download/c872c7cb-a0da-46dc-8b03-8144bf2f0436 

37 

 
 
 
 
 
 
Efforts continue to strengthen the institutional setting for environmental monitoring 
and the enforcement of environmental legislation. Peru also reported on advances in 
the area of air quality. 

•  The  EU  side  provided  information  on  the  Carbon  Border  Adjustment  Mechanism 
(CBAM), designed to ensure the EU can meet its climate targets for 2030 and 2050 
in a way that is not undermined by the risk of carbon leakage, while giving incentives 
to  our  partners  around  the  world  to  move  in  the  same  direction.  The  EU  side 
underlined  how  the  CBAM  does  not  preclude  progress  in  terms  of  international 
coordination  for  the  adoption  of  effective  measures  such  as  carbon  pricing,  and 
stressed that the main principles of the CBAM underline its compatibility with WTO 
rules. 

Regarding the above mentioned issues, the parties identified a number of areas for follow-up, 
and agreed to engage on a continuous basis via intersessional technical meetings. 

The  functioning  of  the  Domestic  Advisory  Groups  (DAGs)  also  gave  rise  to  intense 
exchanges, which confirmed the recognition that the role of civil society is a prominent one  in 
the implementation of the TSD provisions of the agreement. In that context, the EU underscored 
the various actions highlighted in the EU TSD review Communication related to DAGs, to 
enhance  engagement  with  civil  society.  The  Parties  agreed  to  cooperate  more  closely 
exchanging  on  the  framework  for  civil  society  dialogue  in  their  respective  jurisdictions.  In 
contrast to previous years, no joint declaration was released by the DAGs in 2022. At the same 
time,  individual but mutually supported declarations by EU DAG, the Colombian DAG, the 
Ecuadorian DAG and the Peruvian shadow DAG at the Civil Society Forum can be seen as a 
step in the right direction. 

3. ACTIVITIES SUBJECT TO SPECIFIC MONITORING AND SPECIFIC AREAS 

OF IMPORTANCE  

3.1 

Banana imports from Colombia, Ecuador and Peru 

The  Trade  Agreement  provides  for  a  preferential  customs  duty  on  bananas  under  heading 
0803.00.19 (fresh bananas), progressively reduced since the date of provisional application of 
the Agreement until the year 2020 (following a schedule indicated in a tariff reduction table). 
Customs Tariffs have stabilised to 75 euros/tonne since 1 January 2020.  This treatment was 
linked to  a ‘stabilisation clause’ setting out  an annual  trigger volume for imports from  each 
Andean country during the transition period.  
Article 15 of Regulation (EU) No 19/201332 provided for the banana stabilisation mechanism 
(BSM). When the annual trigger volume of imports per country as set in the Agreement was 
met, the Commission examined the impact of these imports on the situation of the Union market 

32 Regulation (EU) No 19/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral 
safeguard clause and the stabilisation mechanism for bananas of the Trade Agreement between the European Union and its 
Member States, of the one part, and Colombia and Peru, of the other part as amended by Regulation (EU) 2017/540 of the 
European Parliament and of the Council of 15 March 2017. 

38 

 
 
 
 
for bananas to take a decision to either temporarily suspend the preferential customs duty or 
determine that such suspension was not appropriate. The stabilisation mechanism ended on 31 
December  2019.  In  this  context,  and  in  accordance  with  Articles  3  and  13  of  Regulation 
19/2013,  the  Commission  has  monitored  the  evolution  of  imports  of  fresh  bananas  from 
Colombia, Ecuador and  Peru. A  comprehensive  report  on the functioning of the EU banana 
market after the expiry of the BSM was presented by the Commission on 29 August 2022. This 
report confirms that EU trade policy struck the right balance between different objectives by 
respecting  the  EU’s  international  obligations,  maintaining  a  stable  relationship  with  all  EU 
trading partners and meeting the steadily increasing levels of EU consumption.  

2021/2022 imports of fresh bananas into the EU  

2021 Total 
imports  

2022 Total 
imports  

Variation 

(1.000 tonnes) 

(1.000 tonnes) 

2021/2022 

1.162 

1.601 

98 

2.860 

1.180 

1.420 

78 

2.678 

1.6% 

-11.3% 

-19.9% 

-6.36%  

Country 

Colombia  

Ecuador  

Peru  

Total 

As the above table shows, in 2022 EU imports of fresh bananas from Colombia amounted to 
1.180 thousand tonnes,  1.6 % more than in previous year. Ecuador exported 1.4200 thousand 
tonnes of fresh bananas to the EU a roughly 11.3 % lower  than previous year. Peru exported 
78 thousand tonnes of fresh bananas to the EU a roughly 20% below to previous year.  

3.2 

Colombian anti-dumping duties on frozen fries 

This dispute concerns definitive anti-dumping measures imposed by Colombia in November 
2018 on imports of frozen fries from Belgium, Germany and the Netherlands. On 15 November 
2019, the EU requested consultations with Colombia at the WTO. Given that all efforts to settle 
the  dispute  during  consultations  have  failed,  on  29  June  2020,  the  EU  requested  the 
establishment of a WTO Panel, which ruled in the EU’s favor. Colombia appealed the WTO 
Panel’s  report,  which  was  the  first  appeal  conducted  under  the  Multi-Party  Interim  Appeal 
Arbitration Arrangement (MPIA). On 14 March 2023, the parties agreed on a reasonable period 
of time for Colombia to implement the recommendations of the Award of the Arbitrators in this 
dispute, which  expired on 5 November 2023.  

3.3 

Ex post evaluation of the implementation of the Trade Agreement 

39 

 
 
 
 
 
 
 
 
 
 
 
An ex-post evaluation, which was carried out between April 2020 and July 2021 and covered 
the  period  from  the  start  of  the  provisional  application  of  the  Agreement  (2013  for  the  EU, 
Colombia and Peru, 2017 for Ecuador) to May 2020, was concluded in April 2022. Its final 
report33 analysed the economic, social and environmental, and human rights (including labour 
rights) effects, which the Agreement has had since its application in the various Parties.  

Some of the main conclusions of the evaluation are the following: 

•  In  economic  terms,  the  reduction  in  barriers  to  trade  between  the  Parties  achieved 
through the implementation of the Agreement allows for resources to be allocated more 
efficiently. As a result, the economic effect of the Agreement on global gross domestic 
product (GDP) was positive, with gains estimated at USD 728 million (comparing world 
GDP in 2020 with the Agreement with world GDP in 2020 without the Agreement). All 
of  the  four  Parties  to  the  Agreement  have  benefited  from  an  increase  in  their  GDP, 
although the impact is modest. 

•  The  estimated  effects  of  the  Agreement  on  employment  across  sectors  follow  the 
pattern  of  trade  impacts  and  are  most  positive  in  the  Andean  countries  in  the  fruits, 
vegetables, and nuts sectors, and in fisheries, notably in Ecuador. In industry, sectors 
such as food products, chemical products or textiles (the latter in Colombia and Peru) 
are also estimated as beneficiaries of the Agreement. 

•  The  Agreement  is  likely  to  have  contributed  to  an  increase  in  overall  welfare  and 
poverty reduction, although it is difficult to draw conclusions based on available data. 
While the overall effects are likely to be limited, thanks to the Agreement and due to 
higher exports to the EU, jobs have been created in the Andean countries, mainly in 
agriculture,  in  rural  areas  which  had  much  higher  poverty  levels  and  lower  labour 
participation rate than in urban areas. However, these areas already benefited from lower 
levels of informality prior to the Agreement’s entry into force, even if the Agreement 
contributed to further reduce them in the analysed period. 

•  The environmental impact of the Agreement overall is found to be small, with a very 

small negative impact on biodiversity and natural resources. 

•  The  impact  of  the  Agreement  on  the  human  rights  situation  in  the  Andean  partner 
countries was found to be limited. Among others, the Agreement may have contributed 
to reducing child labour through creating job opportunities for adults. The Agreement 
did  not  have  a  significant  impact  on  the  right  to  water  overall’  while  all  Andean 
countries  have  faced  water  pressure  prior  to  the  application  of  the  Agreement.  The 
Agreement  was  found  to  have  contributed  to  the  creation  of  employment  mostly  on 
temporary  contracts,  which  had  a  negative  impact  on  the  capacity  of  workers  to 
organise.  

33 https://ec.europa.eu/trade/policy/policy-making/analysis/policy-evaluation/ex-post-evaluations/  

40 

 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF PART IV OF 
THE ASSOCIATION AGREEMENT BETWEEN THE EU AND ITS MEMBER 
STATES AND CENTRAL AMERICA 

1. 

THE AGREEMENT 

The  Association  Agreement  between  the  EU  and  its  Member  States,  on  the  one  hand,  and 
Central  America,  on  the  other  (hereinafter  referred  to  as  the  "Association  Agreement")  was 
signed on 29 June 2012. 2022 marked the 10th Anniversary of its signature. The trade pillar 
(Part IV) of the Association Agreement (hereinafter referred to as the “Trade Agreement") has 
been  provisionally  applied  for  almost  ten  years,  i.e.  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. Ratification by Member States of the Association Agreement 
is ongoing. 

The  Trade  Agreement  is  in  a  process  of  amendment  through  the  signature  of  a  Protocol  of 
Croatia’s  Accession  to  the  Association  Agreement.  The  Protocol  was  signed  on  26 
November, 2020 opening the way for a process of ratification by the parties. The EU ratified 
the  Protocol  in  July  2021,  and  Central  American  countries  are  also  advancing  well  in  this 
process (El Salvador, Guatemala and Nicaragua ratified the protocol in 2022).  

The Association Agreement with Central America is a regional agreement, characterised by 
its comprehensive nature and a high level of ambition. During the ten years of its application, 
the Trade Agreement has worked well, it has contributed towards the stability and predictability 
of the trade and investment environment, thus promoting the expansion of export-oriented trade, 
both  in  terms  of  operators  and  in  terms  of  the  number  of  products.  Ten  years  after  its 
implementation, the Agreement still offers useful tools for trade and so is relevant in responding 
to the current needs and issues of both Parties. The Agreement has reached a certain level of 
maturity, the process of liberalisation has now largely been achieved, and dialogue is regular 
and active, rendering the Agreement fully relevant.  

In 2022, the EU was the second  export destination for Central  America  (16%)  after the US 
(32%)  and  the  third  supplier  (8%)  after  the  US  (32%)  and  China  (14%)34.  Total  exports  of 
merchandise from the EU to the Central American countries rose from €6 billion in 2021 to 
roughly €8.4 billion in 2022 – an increase of 41% – more than surpassing the pre-pandemic 
level of €6.2 billion in 2019. Meanwhile, imports from Central America, which had shown more 
resilience during the crisis, further increased from € 7 billion in 2021 to almost 9.4 billion in 
2022, a robust growth of 35% with respect to 2021.35 

34 According to data from SIECA´s Central American Trade Statistics System. 
35 Based on data from EUROSTAT. 

41 

 
 
 
 
The  Association  Committee  and 
implementation of the Agreement36. 

its  six  specialised  Sub-committees  oversee 

the 

2. 

MAIN IMPLEMENTATION ISSUES 

2.1.1  Market Access: Progress and outstanding issues 

The Association Committee met on 23 June 2022 at senior official level in Brussels.  

In 2022, progress was registered on a number of issues:  

•  The  10%  tax  discrimination  applied  by  Costa  Rica  on  EU  imported  beers  was 
terminated with the adoption by the parliament  of a law on 15 December 2022, thus 
putting an end to  this  longstanding barrier (which had existed prior to  the entry into 
force of the EU-CentAm Association  Agreement  and was raised to  be  addresed in  a 
joint Declaration annexed to this Agreement). The law entered into force following the 
siganture by the President on 15 February 2023.  

•  On  Sanitary  and  Phytosanitary  Measures,  Costa  Rica,  Nicaragua  and  El  Salvador 
now recognise the regionalisation principle. Discusion on the “born and raised” clauses 
requested by Central American countries in export certificates could not be concluded. 

•  On Intellectual Property Rights, the parties signed a decision to grant protection under 
the agreement to eleven new GIs from Costa Rica and El Salvador. The Commission 
continues to engage with Central American authorities to enhance enforcement of all 
116  EU  GIs  protected  and  to  achieve  effective  protection  of  the  term  “Parmigiano 
Reggiano” in Guatemala. 

•  On Public Procurement, the secretariat for economic integration in Central America 
(SIECA) presented the progress made on the establishment of a single point of access 
for  procurement  notices  in  the  CA  region.  While  not  transactional,  the  portal  will 
provide value information on public tenders in  the six  CA countries. The  portal  was 
launched in September 2022.  

•  On Customs, Trade Facilitation and Rules of Origin, the parties agreed on the update 
of HS 2022 of the product specific rules of origin in the protocol of rules of origin. The 
EU  and  Central  America  also  agreed  about  exploring  alternative  ideas  on  how  to 
improve the rules on direct transport.  

36  The  Agreement  establishes  six  specialized  Sub-committees:  Market  Access;  Agriculture;  Customs,  Trade 
Facilitation and Rules of Origin; Technical Obstacles to Trade; Sanitary and Phytosanitary Measures; Government 
Procurement; Intellectual Property; and Trade and Sustainable Development.  

42 

 
 
 
 
 
 
 
 
The  EU  side  continned  to  raise  a  a  number  of  outstanding  issues  with  Central  American 
partners:  

•  Discussions with Guatemala and El Salvador continued at the Association Committee 
to see how to replace the 15% tuna tolerance rule, which appeared to be inapplicable 
by a possible increase of non- originated tuna quota. Technical meetings continued in 
September and November 2022 in view of finding a possible solution during the next 
trade association committee.  

• 

In  Panama,  several  Member  States’  export  applications  for  meat  products  are 
pending since 2016. Delays are also reported in export applications of several Member 
States and in the publication of prelisting of EU establishments habilitated to export 
animal  products  notably  in  Panama.  The  setting  up  of  a  new  Food  Safey  Agency  in 
Panama in October 2021 has increased the uncertainty on the administrativve process 
to  register  or  update  pre-approval  of  EU  establishement.  Panama  agreed  to  hold  a 
bilateral  meeting  which  took  place  on  5  December  2022.  This  meeting  clarified  the 
principles on which prelisting functions and the audit process implemented by Panama. 

The following other aspects were discussed by the parties over the reporting period: 

•  On Market Access for Goods, Central American partners raised the management of 
Tariff Rate Quotas that the EU is applying to Central American exports of sugar and 
rum.  

•  On Technical Barriers to Trade, in respect of Annex XX of the Agreement (requiring 
the adoptions of harmonised regional technical standards by Central America), those 
relating to pesticides are still outstanding due to lack of consensus at policy level. CA 
agreed to provide details in writing on the state of play.  

2.2 

Trade and sustainable development: Progress and outstanding issues 

The  implementation  of  the  Trade  and  Sustainable  Development  (TSD)  Title  of  the 
Association Agreement continued in 2022 in line with the priority issues established for each 
partner country.  

The discussion at the TSD Board meeting- which took place on 31 May, 1 June and 2 June 
2022 – was informed by the preliminary TSD-related results of the ex-post evaluation of the 
EU-CA trade agreement by an external contractor that was ongoing at the time of the meeting. 
The Parties concluded that some of the matters raised in the evaluation might be worth further 
discussions in the TSD Board (e.g., certification, access to market for small-scale farmers and 
SMEs, use of the water, organic products), and the EU invited the Central American partners 
to submit comments on the draft evaluation report.  

43 

 
 
 
 
 
 
The broader discussion at the TSD Board meeting continued to focus on the labour dimension 
of  the  TSD  Title,  where  particular  challenges  exist  in  Central  America.  Priority  issues 
discussed with  all six  partners included freedom of association and collective bargaining, 
social dialogue, child labour and forced labour. The EU also reiterated its concerns, notably 
regarding violence against trade unionists in Guatemala, suggesting further bilateral exchanges 
on key labour issues.  

2022,  more  generally,  saw  more  open  and  solution-oriented  discussions  with  Central 
American partners regarding concrete implementation gaps, challenges, and opportunities, in 
specific countries/regions/sectors. In particular the ex-post evaluation (final report published 
in September 2022) helped spark constructive exchanges.  

Progress was made in 2022 in the implementation of the TSD chapter, inter alia by Panama 
who  ratified  two  ILO  conventions  on  labour  inspections  and  maternity,  as  well  as  the  2014 
protocol to the Forced Labour Convention.  

On  the  environment,  the  EU  and  Central  America  presented  their  recent  actions  and 
achievements,  notably  regarding  progress  made  in  the  implementation  of  Multilateral 
Environmental  Agreements  and  in  the  ecological  transition  through  circular  economy 
approaches. The EU stressed that the Mesoamerican forests play a vital role in the preservation 
of land, expressing concerns regarding signs of deforestation.At the request of Central America, 
the EU presented the Commission’s proposals for a regulation on deforestation-free products, 
and for a Carbon Border Adjustment Mechanism. 

As  regards  cooperation  and  technical  assistance,  the  Secretariat  for  Central  American 
Economic Integration (SIECA) provided an overview of the INTEC project, which contributes 
to Trade and Sustainable Development by promoting fair and ethical trade schemes and best 
practices on corporate social responsibility. The project addresses notably the modernisation 
and  convergence  of  the  regional  regulatory  framework  and  an  active  leveraging  of  the 
Association  Agreement  for  the  productive  sectors  in  Central  America,  including  through  a 
strengthening of export capacities.   

In November 2022, the Commission hosted in Guatemala an EU-Central America tripartite 
conference on informality, freedom of association and fight against child labour, which 
brought together around sixty representatives from national authorities, employers and trade 
unions  from  the  six  Central  American  countries  as  well  as  key  stakeholders  and  EU 
representatives.  The  aim  of  the  event  was  to  contribute  to  strengthening  labour  rights 
compliance  and  promoting  decent  working  conditions  in  Central  American.  It  provided  an 
opportunity to exchange best practices on labour issues, share ideas and inspire future action. 

The  Commission  continued  frequent  interactions  with  the  EU  Domestic  Advisory  Group 
(DAG),  encouraging  DAG  members  to  provide  timely  and  substantiated  input  on  labour  or 
environmental challenges or implementation gaps in Central America. A joint declaration was 
submitted by the EU and Central American DAGs with recommendations about future TSD 
work under the Agreement. The Parties welcomed the joint work conducted by the DAGs and 
encouraged them to continue in this vein.  

44 

 
 
In an effort to further deepen cooperation, the Commission invited the members of the EU DAG 
to  a  debrief  meeting  immediately  after  the  end  of  the  TSD  Board  meeting,  before  the  Civil 
Society Dialogue Forum that took place on the following day.  

3. 

ACTIVITIES SUBJECT TO SPECIFIC MONITORING AND SPECIFIC 

AREAS OF IMPORTANCE 

3.1 

Banana imports from Central America 

Since entry into force of the agreement, the absolute volume as (from 797.000 tonnes in 2012 
to 1.456.000 tonnes in 2019) well as the market share of bananas (from 18,8% in 2012 to 26,3% 
in  2019)  imported  from  Central  America  top  the  EU  has  increased,  thereby,  contributing  to 
diversify supply to the growing EU banana market.  

Article 15 of Regulation (EU) No 20/201337 (the ‘Regulation’) provides for the stabilisation 
mechanism for fresh bananas (HS code 08 03 90 10). This stabilisation mechanism ended by 
the end of 2019. In this context, and in accordance with Articles 3 and 13 of Regulation 19/2013, 
the Commission continues to monitor with particular attention the evolution of imports of fresh 
bananas from Central America. A comprehensive report on the functioning of the EU banana 
market after the expiry of the BSM was presented by the European Commission on 29 August 
2022.  This  report  confirms  that  EU  trade  policy  struck  the  right  balance  between  different 
objectives by respecting the EU’s international obligations, maintaining a stable relationship 
with all EU trading partners and meeting the steadily increasing levels of EU consumption.  

Customs Tariffs have stabilised to 75 euros/ton since 1 January 2020. In 2022, EU imports of 
fresh  bananas  from  Central  America  -by  volume-  amounted  to  1,395  million  tons,  a  small 
increase of only 3% when compared to export volumes in 2021 (1,356 million). No issues on 
price fluctuations were reported in the EU market. 

37 Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral 
safeguard  clause  and  the  stabilisation  mechanism  for  bananas  of  the  Agreement  establishing  an  Association  between  the 
European Union and its Member States, on the one hand, and Central America on the other, of the other part as amended by 
Regulation (EU) 2017/540 of the European Parliament and of the Council of 15 March 2017.  

45 

 
 
 
 
 
 
 
 
2020/2021 imports of fresh bananas38 

Country 

2021 Total 
imports (tons) 

2022 Total imports 
(tons) 

Variation 2022/2021 

Costa Rica 

        1.021.000  

         1.045.000 

Panama 

           216.000  

           179.000 

Guatemala 

           119.000  

           171.000 

Total 

1.356.000 

1.395.000 

2.4% 

-16.8% 

44.1% 

2.9% 

Ex-post evaluation of the trade pillar of the EU-Central America Association 

3.2 
Agreement 

An  ex  post  evaluation  of  the  implementation  of  the  Trade  Agreement  between  the  EU  and 
Central America has been being carried out from December 2020 until September 2022. The 
project  was  analysing  the  impact  of  the  implementation  of  the  Agreement  on  sustainable 
development in its economic, social and environmental dimensions, as well as on human rights, 
including labour rights. During the period under review, the consultant provided the final report 
of the ex-post evaluation which was published in DG TRADE website in September 2022.39 

The final conclusions are as follows: 

•  Regarding the economic analysis, the model suggest that there has been a significant 
increase in both EU imports and exports. The increase in EU imports amounts to 30% 
whereas EU exports have increased by 40% since 2010. The difference in the relative 
increase is likely to be attributable to the fact that CA countries enjoyed zero tariffs on 
an overwhelming majority of on their exports to the EU, under the GSP+ arrangement. 
Important developments have also been present in the evolution of trade in services and 
foreign direct investment. 

•  In terms of social analysis, the available evidence suggests that exports to the EU are 
likely to have contributed to creation or maintaining of formal jobs mainly in rural areas 
in sectors, such as banana, pineapple, coffee and medical equipment in Costa Rica, tuna 
and (at least partly) sugar in El Salvador, coffee and (at least partly) sugar, palm oil and 
banana in Guatemala, and coffee and (at least partly) sugar in Honduras and Nicaragua. 
In such cases, exports to the EU may have contributed to maintaining or creating both, 
formal and informal jobs, which has a direct impact on the welfare of workers and their 
households. Moreover, evidence suggests that lower levels of informal employment are 
in provinces exposed to international trade and export activity.  

38 Statistics refer to the EU27   
39 See DG TRADE website, ex-post evaluation page link: https://policy.trade.ec.europa.eu/analysis-and-
assessment/ex-post-evaluations_en  

46 

 
 
 
 
 
•  In  terms  of  environment  impact,  it  is  estimated  that  Green  House  Gas  emissions 
would have been slightly higher in the absence of the Agreement. The Agreement had 
an overall marginal negative impact on biodiversity and ecosystems: it is likely to have 
caused land-use change because of cropland expansion through the Agreement’s impact 
on  the  production  of  agricultural  and  horticulture  products  in  Central  America.  The 
impact on permanent deforestation has been marginal. The Agreement intensified the 
pre-existing  environmental  pressures  associated  with  the  production  of  agro  export 
commodities (mainly linked to crops’ reliance on high agrochemical use, and the related 
impacts that these agrochemicals have on water and soil quality in natural ecosystems). 

•  In terms of human rights impact, In aspects such as freedom of association, collective 
bargaining, or child labour measures taken and progress achieved by CA countries in 
most cases predate the EU-CA FTA’s entry into force or have been triggered by other 
factors,  which  means  that  they  cannot  be  attributed  to  the  Agreement.  However,  the 
available  evidence  also  suggests  that  the  EU-CA  FTA  has  encouraged  an  uptake  of 
certification  schemes  (including  those  requiring  compliance  with  the  International 
Labour Organisation’s (ILO) core labour standards), created a positive momentum for 
workers’ rights and working conditions (e.g., in El Salvador), and provided a platform 
for  policy  dialogue  (under  the  Trade  and  Sustainable  Development,  TSD  Title)  that 
keeps compliance with the ILO fundamental conventions in focus. 

The Commission/DG TRADE’s assessment will be included in a Staff working document40, 
which was published on 20 June 2023. 

40 See DG TRADE website, ex-post evaluation page link: https://policy.trade.ec.europa.eu/analysis-and-
assessment/ex-post-evaluations_en  

47 

 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE ASSOCIATION AGREEMENT BETWEEN THE EU AND CHILE 

1. 

THE AGREEMENT 

Trade  between  the  EU  and  Chile  currently  operates  under  the  framework  of  the  EU-Chile 
Association Agreement (hereinafter ‘the Agreement’), which includes a comprehensive Free 
Trade Agreement along with a political and a cooperation pillar. The Agreement entered into 
force  in  2003  and  it  was  the  first  EU  bilateral  agreement  subject  to  an  ex-post  evaluation, 
conducted in 2016.41 Although the Agreement has worked well overall, as illustrated by the 
doubling of bilateral trade since its entry into force, a European Commission  impact assessment 
carried out in 2017 pointed at the need to modernise it, so as to adapt it to the new realities of 
global trade and investment, lifting it to the level of the more modern agreements that both the 
EU and Chile had concluded in the Americas and beyond, notably by complementing it with 
standard provisions enshrined in the latest version of deep and comprehensive trade agreements. 

On 9 December 2022 the EU and Chile reached the political conclusion of the modernisation 
of the existing EU-Chile Association Agreement. The modernisation of the existing EU-Chile 
Association  Agreement  foresees  two  parallel  legal  instruments:  The  Advanced  Framework 
Agreement,  that  will  include  a)  the  Political  and  Cooperation  pillar  and  b)  the  Trade  and 
Investment  pillar (inclusive of investment  protection provisions); and the b)  Interim Trade 
Agreement (iTA) covering trade and investment liberalisation. The iTA will expire when the 
Advanced Framework Agreement enters into force. 

It  is  a  very  modern  and  progressive  deal  for  trade  and  investment  and  respective  economic 
resilience and signals the Parties’ shared commitment to values, sustainability and their joint 
resolve to speed up the green and digital transitions.  

In addition to further liberalisation of trade in agriculture under reorganised conditions, public 
procurement, services and investment, the modernised Agreement includes modernised rules 
of  origin  and  customs  and  trade  facilitation  provisions,  ambitious  commitments  on  IPR 
(including the protection of EU Geographical Indications for foodstuff) and non-tariff barriers, 
state-of-the-art investment protection provisions (including an Investment Court System), and 
a chapter on Trade and Sustainable Development.  

It also contains strong provisions on sustainability and energy & raw materials, which will help 
contribute to the green transition, as well as an ambitious chapter on SMEs and, for the first 
time in a bilateral EU agreement, separate chapters on trade and gender and on sustainable food 
systems.  

41 https://trade.ec.europa.eu/doclib/docs/2012/august/tradoc_149881.pdf  

48 

 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

In 2022, outstanding market access barriers were addressed via EU demarches carried out by 
the EU Delegation in Chile, with some progress reported on SPS issues.  

The  Committee  on  SPS  measures  met  in  July  and  agreed  on  an  Action  Plan  with  trade 
facilitation measures.  

Furthermore,  in  September  2022,  the  EU  Delegation  met  the  regulatory  department  of  the 
Foreign Relations Ministry to review all registered trade barriers, which helped to improve 
mutual understanding on recent developments and the way forward. Throughout the year, the 
EU Delegation had contact with several sectorial Ministries on some of the outstanding barriers 
(e.g.  Ministry  of  Public  Works  on  public  procurement;  Ministry  of  Health  on  potato  starch 
prohibition/food  additives),  as  well  as  the  above-mentioned  regulatory  department  of  the 
Foreign Ministry on specific issues. 

Once  the  Interim  Free  Trade  Agreement  will  enter  into  force,  the  trade  and  investment 
liberalisation provisions of the EU-Chile Advanced Framework Agreement, concluded on 9 
December 2022, are expected to contribute to solving some of the existing barriers, including 
in the following areas:  

IPR 

The  new  Agreement  will  lay  down  rules  on  the  protection  of  regulatory  data  related  to 
pharmaceutical and agro-chemical products. These rules feature a higher level of protection 
than  that  of  Article  39.3  of  the  TRIPS  Agreement  and  approximate  Chilean  law  to  the  EU 
standards. Consequently, the new Agreement aims to improve the level and term of protection 
of regulatory data and remove existing legal uncertainty about the scope and conditions for that 
protection. Moreover, the provisions on cooperation in the Agreement will give the EU another 
forum to discuss the identified issues bilaterally with Chile.  

Another  barrier  in  the  IPR  field  that  will  be  partially  solved  or  at  least  alleviated  concerns 
enforcement of copyright and related rights in the internet to tackle online piracy. The new 
Agreement  aims  to  increase  the  standards  of  the  enforcement  measures  available  for  right 
holders in Chile, approximating them to those available in the EU. These standards include the 
rules on the legal protection of technological measures and of rights management information. 
They also include effective, proportionate and dissuasive enforcement remedies, including on 
the possibility of issue injunctions against third parties (intermediaries) whose services are used 
to  infringe  an  intellectual  property  right,  aimed  at  prohibiting  the  continuation  of  the 
infringement. 

49 

 
 
 
 
 
 
 
  
 
 
 
 
Wine and spirits agreement (annex IV and V of the existing EU-Chile Agreement) 

On  9  March  2023,  the  modified  agreement  on  the  protection  of  terms  for  wines  and  spirits 
(annex IV and V of the current Agreement) came into effect. These updated agreements aim to 
enhance bilateral trade in these products and play a significant role in agricultural trade for both 
the  European  Union  (EU)  and  Chile,  which  are  both  major  global  wine  exporters.  By 
modernising the agreements, the list of protected terms has been up-dated and it becomes easier 
to revise them in the future to ensure they align with any changes in the protected conditions of 
wines, aromatised wines, and spirits in both Chile and the EU, including respective oenlogical 
practises. 

Public procurement 

In  the  area  of  public  procurement,  the  Interim  Free  Trade  Agreement  and  the  EU-Chile 
Advanced  Framework  Agreement,  will  establish  rules  aimed  at  more  transparency,  non-
discrimination  and  fairness  in  public  procurement  procedures,  and  an  increased  use  of 
electronic  procurement.  This  will  help  to  address  requirements  currently  imposed  by  Chile, 
mostly for tenders run by the Ministry of Public Works, on local presence and local experience. 
In  addition,  Chile  imposes  designs  and  technical  specifications  that  are  an  obstacle  for  EU 
companies,  especially  for  newcomers,  and  applies  excessively  short  deadlines  for  the 
submission of offers. The new Agreement will introduce further disciplines, notably with regard 
to the  use  of  objective  and  non-discriminatory  criteria  in  determining  the  conditions  for 
participation to tender procedures (including in relation to the criteria of experience in previous 
projects).  

TBT 

The provisions of TBT chapter of the Interim Trade Agreement and the EU-Chile Advanced 
Framework  Agreement  are  also  likely  to  mitigate  several  trade  barriers  that  EU  business 
continues to face in Chile:  

•  For example, imports of hygiene products and cosmetics from the EU presently suffer 
from burdensome administrative procedures, such as the cost and delay experienced 
by EU industry for the registration of products and the short duration of the registration. 
The TBT Chapter of the modernised Agreement inter alia provides for the selection of 
conformity assessment procedures proportionate to the risk of the products, disciplines 
on fees and cooperation on facilitation of acceptance of conformity assessment results.  

•  Furthermore, imports of EU electronic and fuel burning products are subject to a 
burdensome two-step certification procedure. Certificates or tests carried out in the 
origin country, although valid in Chile, must be completed with tests in Chile which 
increase  the  cost  for  importing  goods.  This  requirement  also  applies  for  products 
certified in their country of origin by internationally recognised laboratories and which 
are  based  on  international  standards,  except  if  a  bilateral  agreement  with  a  Chilean 

50 

 
 
 
 
laboratory exists. The provisions on recognition of EU certificates in the TBT Chapter 
of the new Agreement will help to partially solve this issue.  

•  Another example where the TBT chapter of the new Agreement will help to solve the 
barrier can be found in the area of food safety, where Chile prohibits the use of potato 
starch in processed meat products. This practice does not appear to be in line with the 
CODEX Alimentarius, which allows for the utilisation of a certain percentage of potato 
starch  in  processed  meat  products.  The  barrier  affects  cold  cut  products  such  as 
mortadella and it is considered both by the EU and Chile as a technical regulation and 
not as a sanitary issue. The provision of the TBT Chapter of the new Agreement includes 
the  CODEX  Alimentarius  Commission  into  the  list  of  organisations  that  develop 
relevant international standards.  

3. 

ACTIVITIES OF SPECIFIC MONITORING AND RELEVANCE IN 2022 

In 2022, monitoring activities continued to follow closely the procedure concerning requests 
for  registration  of  several  trademarks  that,  if  registered,  would  be  in  conflict  with 
Geographical Indications of EU cheeses and a meat product that Chile has agreed to protect 
under the Advanced Framework Agreement.  

In 2022, through its regional cooperation programmes, the EU supported Chile’s move towards 
a  more  sustainable  and  environmentally  friendly  economy,  including  the  Mineral 
Development Platform on sustainable mining; the fight against Antimicrobial Resistance, the 
promotion  of  Responsible  Business  Conduct  and  the  adoption  of  Low  Carbon  and  Circular 
Economy business actions, all regional actions.  

A new Chile-only project was launched by the Commission in 202242, aimed at supporting fair 
and sustainable trade between the EU and Chile, which helps to highlight the role of trade to 
support environmental and social goals.  

42 https://eurochile.cl/es/documents/proyecto-comercio-justo-y-sostenible-entre-la-union-europea-y-chile/  

51 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-MEXICO GLOBAL AGREEMENT 

1. 

THE AGREEMENT 

Mexico is the biggest trading partner of the EU in Latin America today, and was the first country 
in  Latin  America  to  sign  an  Economic  Partnership,  Political  Coordination  and  Cooperation 
Agreement with the EU (‘Global Agreement’). The Global Agreement was signed in 1997 and 
its trade provisions were later developed into a comprehensive  Free Trade Agreement that 
entered into force in March 2000 for goods and in February 2001 for services (hereinafter called 
‘the FTA’)43.  

In order to  adapt  the Global  Agreement to  the new realities of global trade and investment, 
negotiations on a modernisation of the FTA were launched in 2016. On 21 April 2018, after 
nine rounds of negotiations, an ‘agreement in principle’ was reached on the trade part outlining 
the numerous improvements to the legal framework of EU-Mexico bilateral trade relations. On 
28 April 2020 the European Union and Mexico concluded the last outstanding element of the 
negotiation  -  agreeing  on  the  exact  scope  of  the  reciprocal  opening  of  public  procurement 
markets at subcentral level and ensuring a high level of predictability and transparency in public 
procurement processes.  

This modernisation will set a new and modern framework for EU-Mexico bilateral trade and 
investment relations on the basis of reciprocity and will promote new opportunities for business, 
while including strong and clear commitments on trade and sustainable development (TSD), 
which are missing in the current FTA.  

The  modernised  FTA  will  significantly  increase  market  access  by  EU  competitors.  For 
example,  regarding  access  to  public  procurement,  Mexico  and  the  EU  agreed  in  the 
modernisation to a significant expansion of market access opportunities removing some of the 
existing barriers at sub-central level. For the first time, Mexico will open up procurement in its 
economically  most  important  States,  thus  providing  EU  suppliers  with  access  to  more 
procurement than it does offer to any trading partner. The modernised FTA will give access for 
EU  bidders  to  the  procurement  markets  of  fourteen  Mexican  States  and  an  additional  two 
Mexican States in two years from entry into force of the modernised FTA. 

2. 

MAIN IMPLEMENTATION ISSUES 

In 2022, the parties continued to engage in discussions in the respective institutional bodies of 
the FTA to address outstanding issues, such as in the area of SPS, TBT, IPR and government 
procurement. Many of these isues are expected to be addressed by the modernised FTA. 

43 The trade pillar was expanded by two decisions of the Joint Council: Decision No 2/2000 of the EC-Mexico Joint Council 
of 23 March 2000 related to trade in goods and Decision No 2/2001 of the EU-Mexico Joint Council of 27 February 2001 on 
trade in services. 

52 

 
 
 
 
 
 
In the area of SPS, within the Special Committee on SPS Measures, the Parties continued to 
engage in technical discussions on the following outstanding issues affecting EU exports: 

•  Non application of “pre-listing” 44 for EU export of products of animal origin. The 
EU applies the prelisting principle to Mexico, however Mexico does not reprocicate 
and continues to inspect every meat establishment before granting any export 
approval.  

•  Non- recognition of the EU regionalization measures for African Swine Fever (ASF) 
in Poland, Italy and Germany and Highly Pathogenic Avian Influenza (HPAI) in 
Poland and France. 

•  Delaying market access applications for fruits and vegetables, and failure to process 
the pending applications from EU Member States to export pig meat and poultry 
meat. 

In addition, two new concerns were raised by the EU: 

• 

the requirement of post-mortem veterinary inspection on the basis of the Mexican 
norm from 1994. The EU indicated that the requirement does not appear to be in 
line with the FTA nor the harmonised certificate from 2016. Mexico informed of 
the intention to revise its 1994 legislation in order to bring it up to date, but that 
pending the legislative revision the 1994 legislation would apply.  

• 

the problems encountered by operators due to the Mexican lack of acceptance of 
harmonised  certificates  using  TRACES  NT  following  the  migration  to  the  new 
system. 

Regarding technical barriers to trade, in the Special Committee on Standards and Technical 
Regulations, the EU underlined its concerns about cumbersome compliance with certification 
requirements for EU parts and components causing delays in EU imports into Mexico. The EU 
also requested an update on (i) draft Conformity Assessment Procedure of NOM-223, related 
to  specifications  and  test  methods  for  cheeses;  (ii)  labelling  requirements  for  textiles  and 
ceramics  and  (iii)  draft  Mexican  Official  Standard  PROY-NOM-241-SSA1-2018,  related  to 
Good manufacturing practices for medical devices. 

Regarding  government  procurement,  during  the  Special  Committee  on  Government 
Procurement, Mexico informed that as of 2023 it will end the agreement with UNOPS (United 
Nations Office for Project Services), in relation to medicines’ acquisition for the public health 
sector.  In the light  of previously  voiced concerns on the transparency requirements of those 
processes, the EU side will be following this development closely to see whether it will lead to  
more transparency in the Mexican pharmaceutical procurement market.  

44 To be authorised to export a certain commodity to the European Union, an exporting country should 
demonstrate that its controls meet the EU requirements. If the exporting country's competent authority sees that 
an establishment meets the relevant EU import conditions, it can place the establishment on a list (often termed a 
"pre-list") of exporting establishments that meet relevant EU conditions. 

53 

 
 
 
 
 
 
 
The EU and Mexico continued their cooperation on intellectual property, in particular through 
the  Special  Committee  on  Intellectual  Property  Matters,  which  met  in  October  2022.  The 
meeting included a discussion on the state of play of intellectual property rights protection in 
Mexico, highlighting the reforms to the Copyright Law, the Civil Code and the new Federal 
Law for the Protection of Industrial Property (LFPPI), which fully implement the commitments 
made  by  Mexico  in  its  recent  trade  agreements.  The  EU  referred  to  the  persistent  concerns 
expressed  by  EU  companies  operating  in  Mexico  about  the  ineffective  enforcement  of 
intellectual  property  rights  in  the  country,  including  at  the  border  and  both  online  and  in 
physical marketplaces. These concerns, summarised in the 2023 Report on the protection and 
enforcement of intellectual property rights in third countries,45 have led EU stakeholders to call 
for a national anti-piracy plan to to address the main challenges posed by counterfeiting and 
piracy and to coordinate law enforcement actions at federal, state and local level.  

The  EU  and  Mexico  committed  to  using  technical  cooperation  as  a  tool  to  ensure  effective 
protection of intellectual property rights in accordance with the highest international standards, 
including effective means to enforce such rights. IP Key Latin America46 remained in 2022 
the  main  technical  cooperation  programme  on  intellectual  property  between  the  EU  and 
Mexico, featuring a number of activities aimed at addressing some of the identified challenges 
in the area of intellectual property (e.g. symposium for judges, seminar on border enforcement, 
conference on geographical indications, etc.).  

In the area of customs matters, both parties continued dialogue on Rules of Origin, Customs 
Cooperation and Trade Facilitation and Mutual Administrative Assistance. During the Special 
Committee  on  Customs  Cooperation,  EU  expressed  concerns  regarding  the  increase  in 
clearance times in a number of ports further to the setup of the new National Customs Agency. 

In  the  framework  of  the  EU  project  on  responsible  business  conduct47,  in  2022  Mexican 
authorities,  private  business  and  stakeholders  continued  cooperation  activities  aimed  at 
supporting  responsible  business  conduct  practices  in  line  with  the  UN,  ILO  and  OECD 
instruments. The project will feed into the implementation of the future Trade and Sustainable 
Development (TSD) Chapter under the modernised EU-Mexico Agreement, once it enters into 
force. 

45 https://circabc.europa.eu/rest/download/7099aee0-c68f-42c5-ae30-5350a879a30e 
46 Latin America | IPKEY 
47 The project is implemented together with the International Labour Organization (ILO), the Organization  for 
Economic Co-operation and Development (OECD), and the United Nations Office of the High Commissioner for 
Human Rights (OHCHR). 

54 

 
 
 
 
 
 
 
PART III: EU NEIGHBOURING COUNTRIES  

55 

 
 
 
 
 
 
 
 
 
 
Mediterranean and Middle East countries –  

Free Trade Areas 

56 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND ALGERIA 

1. 

THE AGREEMENT 

the EU-
The  EU  and Algeria established  a  Free  Trade  Area 
Algeria Association Agreement, signed in 2002, which entered into force on 1 September 
2005  (hereinafter  called  ‘the  Agreement’).  The  Agreement  provides  for  a  reciprocal 
liberalisation of trade in goods, with elements of asymmetry in favour of Algeria, such as a 
12  years  transitional  period  for  dismantling  tariffs  for  industrial  goods  and  a  selective 
liberalisation on agriculture. In 2012, the EU and Algeria agreed to review the timetable for 
tariff dismantling set forth in the Agreement for certain products (steel, textile, electronics, 
and automobiles), extending the transitional period from 12 to 15 years.  

(FTA)  under 

Market opening for agricultural products so far only concerns a limited number of tariff 
lines, which are subject to either full liberalisation, Tariff Rate Quotas (TRQ) or a reduction 
of Most Favoured Nation (MFN) rates respectively, for both Parties. The agreement does 
not include a specific Dispute Settlement Protocol, but  only general provisions on dispute 
settlement, allowing a Party to refer the matter to the EU-Algeria Association Council in 
accordance with Article 100 of the Association Agreement (this process has been initiated 
by the EU side in June 2020, see further information in section 2 below).  

Algeria is  a  member  of  the Regional  Convention  on  pan-Euro-Mediterranean 
preferential rules of origin, which it signed in 2012 and notified the EU of ratification on 
27 January 2017.   

Algeria started  negotiating  its  accession  to  the  WTO  in  1987.  The  EU  continues  to 
support Algeria’s  efforts  but  the  negotiation  process  with  the  Accession  Working  Party 
remains stalled since 2014.   

2. 

MAIN IMPLEMENTATION ISSUES 

Dispute Settlement Procedure against Algeria: Several trade restrictive measures 

On 24 June 2020, the EU initiated a dispute settlement case against Algeria under the EU-
Algeria Association Agreement challenging five measures (illegal safeguard duties, import 
ban  on  cars,  import  licensing  scheme,  custom  duties  on  129  products  and  payment 
restrictions  in  the  maritime  transport  sector).  As  a  result  of  the  EU’s  efforts  to  find  a 
negotiated solution during consultations, three of the five measures challenged have been 
removed (customs duties, illegal safeguard duties, and payment restrictions). Nevertheless, 
outstanding restrictions on the importation of cars remain and the Commission is closely 
monitoring the situation. 

Over  the  reporting  period,  Algeria  made  modest  progress  on  other  existing  market  access 
barriers: 

57 

 
 
 
 
  
  
 
 
•  A customs duty hike imposed in 2017 on a group of 129 products was abolished by the 

2022 budget law; 

•  Measures affecting the conditions of maritime transport, such as the obligatory use 

of FOB incoterms and utilization of the national carrier have been withdrawn: 

•  Additional  safeguard  duties  imposed  from  2018 were  abolished  by  the  2023  budget 

law. 

• 

In  November 2022 the government  published 2 new decrees providing for local  car 
manufacturing and allowing again car imports under conditions that discriminate pre-
established car dealers. Beginning of 2023 slow progress on car imports was observed 
but other imports, such as car parts, remain problematic.  

By contrast, in  2022, a significant number of other market access issues imposed since 2015 
remained in place in Algeria:  

•  Algeria  in  January  2021  re-established  the  49/51  cap  for  foreign  investments  for  
import, retail  and distribution activities for consumer and intermediary goods (in  the 
menatime  Algeria  had  abolished  the  horizontal  49/51  cap,limiting  its  application  to 
strategic sectors, such as oil, gas and transport).Algeria bans the import of medicines 
for which there exists a locally-produced equivalent;  

•  Algeria applies obligatory inspections as well as restrictions on frozen meat imports.  

In addition, in the recent past Algeria took a panoply of new sectoral and horizontal 
measures and also continues to apply practices restricting trade and investment, introducing 
red-tape, such as: 

•  Measures delaying the payments for imported goods, or the withdrawal of licenses 

from EU companies operating dry docks in the country; 

•  Import restrictions for canned meat and fish (adopted in September 2021), which 

result in delaying the issuance of the necessary veterinary authorisations;  

•  A new nomenclature for import activities and measures (decree No. 21-94 of March 
2021)  imposing  burdensome  and  repetitive  registration  requirements.  It  obliges 
companies  importing  and  selling  consumer  and  other  goods  to  re-register  in  the 
company’s registry for a single category of imported goods, thus limiting the scope to 
trade  in  different  categories  of  imported  goods  under  one  single  registration. 
Furthermore, the creation of such new legal entities would need to follow the rules of 
the  2021  Budget  Law  mentioned  above  i.e.  foreign  investors  should  find  Algerian 
partners as the Law foresees a 49% cap on foreign ownership. As a result of these new 
measures, those EU companies which did not succeed to find a negotiated solution with 
the Trade Ministry were obliged to either split, limit or close down their activities in 
Algeria. 

•  A new import authorisation regime, ALGEX, was adopted in April 2022. This can be 
considered in practice a replacing/ related measure to the import licensing system. The 

58 

 
 
 
 
 
 
measure has heavily disrupted the activity of EU businesses across sectors (i.e. heavy 
industry, industrial goods, car parts, agrifood, etc.). Many EU companies reported that 
their  shipments  are  blocked  since  the  beginning  of  summer  2022  because  of  this 
measure.   

•  EU companies experience non- acceptance of preferential origin statement in Algeria 

(EUR1 certificate). 

• 

In June 2022, Algeria blocked all trade with Spain, including imports of Spanish 
agricultural products. 

•  New halal measures entered into force June 2023 without prior notice. The new halal 
certification  regime  is  restrictive  and  requires  a  certificate  for  each  consignment 
subject to an additional fee.   

59 

 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
EGYPT ASSOCIATION AGREEMENT 

1. 

THE AGREEMENT 

The EU and Egypt established a free trade area (FTA) as part of the EU-Egypt Association 
Agreement (AA), signed in 2001 (hereinafter referred to as ‘the Agreement’).  The AA was 
signed on 25 June 2001 and entered into force on 1 July 2004.  It provides for the reciprocal 
liberalisation of trade in goods, with elements of asymmetry in favour of Egypt. In particular, 
Egypt was able to export tariff-free to the EU all industrial products covered by the Agreement 
since its entry into force, while it benefited from a transitional period of 3 to 15 years, depending 
on  the  product,  to  dismantle  tariffs  on  EU  imports.  Egypt  finalized  the  process  of  fully 
dismantling tariffs applied to industrial goods on 1 January 2019. 

In  October  2008,  the  EU  and  Egypt  signed  an  Agreement  providing  for  liberalisation  in 
agricultural, processed agricultural and fisheries goods, which entered into force on 1 June 
2010 and extended the list of agricultural products covered by the original Agreement.  

In  November  2010,  the  EU  and  Egypt  signed  a  Protocol  establishing  a  Dispute  Settlement 
Mechanism (DSM) for which Egypt’s ratification process is still pending. 

Egypt also signed the Regional Convention on pan-Euro-Mediterranean preferential rules 
of  origin  on  9  October  2013  and  notified  it  on  23  April  2014.  The  main  objective  of  the 
Convention is to provide a more unified framework for origin protocols. 

In November 2011, the Commission received a Council mandate authorising it to negotiate a 
Deep and Comprehensive Free Trade Area (DCFTA) with Egypt. While interested in enhancing 
bilateral cooperation on trade and investment, Egypt has shown limited interest in a full-fledged 
DCFTA so far.  

Since  2020,  the  EU  and  Egypt  are  engaged  in  a  regular  trade  dialogue  on market  access 
challenges, focusing on enhancing the implementation of FTA commitments, elimination of 
trade irritants as well as improving transparency of the legal framework for business.  

2. 

MAIN IMPLEMENTATION ISSUES 

The  implementation  of  the  trade-related  provisions  of  the  Agreement  is  pursued  within  the 
framework  of  the  Association  Council,  the  Association  Committee,  and  the  various  sub-
committees, including the Sub-Committee on Industry, Trade, Services and Investment.  

In  2022,  the  EU  and  Egypt  intensified  their  trade  dialogue  through  regular  technical 
consultations  to  further  remove  barriers  to  trade  affecting  businesses  and  investors,  thus 
building on progress achieved in 2021. On 18 October 2022, the EU-Egypt Sub-Committee 
on Industry, Trade Services and Investment took place in Cairo. The meeting focused on 
discussing developments in the EU and Egypt’s trade and investment related policies, but also 
any trade barriers currently affecting bilateral trade flows. Egypt confirmed its engagement to 

60 

 
 
 
 
actively continue the - more technical - trade dialogue in parallel to the Sub-Committee with 
the objective of advancing the removal of outstanding trade irritants. 

2022 proved to be a very challenging year for Egypt’s economy. This was to a large extent due 
to the macroeconomic situation in Egypt which has been heavily affected by Russia’s war of 
aggression  against  Ukraine.  In  particular,  Egypt  experienced  huge  capital  flights  after  the 
breakout of the war, which led to the Egyptian Central Bank (ECB) taking exceptional measures 
to preserve foreign exchange reserves. The Egyptian ECB introduced the mandatory use of a 
Letter of Credit (L/C) as payment condition for almost all imports into the country with  few 
exceptions (notably food and pharmaceuticals). This had a restrictive effect on imports and led 
to shortages and  inflation of pricesin the domestic market. Following an agreement with the 
IMF and the liberalisation of the exchange rate, the  mandatory L/C requirement was finally 
lifted on 31 December 2022. Nevertheless, due to the continuing shortages of foreign currency, 
import  difficulties  continued  into  2023  and  this  will  only  change  once  the  macroeconomic 
situation stabilises.  

Some progress was achieved on market access issues in 2022, notably on import registation 
requirements: 

WTO dispute against Egypt: DS609 – Import Registration Requirements 

-On 26 January 2022, the EU requested consultations with Egypt concerning the registration 
requirements  imposed by Egypt affecting the importation  from  the  EU into  Egypt  of 29 
categories  of  goods  including  agricultural  and  food  products,  cosmetics,  toys,  textiles, 
garments, household appliances, furniture and ceramic tiles. 

-The EU and Egypt held consultations in a virtual format on 23 February 2022.  

-In June 2022 Egypt  amened their registration system  to  allow for more predictable and 
swifter registrations. The EU is currently closely monitoring the functioning of that system.  

Progress was also made on a number of other market access issues: 

•  Covid import tests for live animals and meat have been lifted with the exception of 

pets.  

•  Partial progress was achieved in 2022 on Egypt’s new halal certification requirements 
applying  since  October  2021.  Egypt  has  notified  the  new  Halal  standards  to  the 
WTO. Moreover, the supension of the application of the standard to dairy products was 
extended  several  times  and  most  recently  again  until  1st  December  2023.  Efforts  
continue to address remaining problems related to the new certification rules and the 
appointment by the government of a single certifier globally (IS EG Halal).  

• 

In regard to the taxation of cosmetics’ imports, Egypt acknowledged that taxing only 
imports  would  be  discriminatory  and  in  violation  of  the  EU-Egypt  Association 
Agreement.  Egypt  is  now  considering  to  take  remedial  measure  to  rectify  this,  e.g. 
extending the tax to also include domestic cosmetics or eliminating the tax all together.  

At the same time, a number of market access barriers continue to exist in Egypt and were 
subject to discussions in the relevant committees under the EU-Egypt Association Agreement:  

61 

 
 
 
 
 
•  Blockages  of  EU  shipments  of  certain  goods  (especially  timber  wood)  due  to  their 
allegedly excessive radioactivity levels – even though these levels are well within the 
standard of the International Atomic Energy Agency (IAEA). Technical discussions are 
to be scheduled in 2023 to clarify the situation. 

•  Egypt’s new measures (including field visits) for the import of seed potatoes notified 
to  the  WTO;  the  new  mechanism  might  have  an  effect  comparable  to  a  quantitative 
restriction.  Technical  discussions  will  continue  in  2023  to  clarify  the  rules;  in  the 
meantime,  Egypt  has  suspended  the  requirement  for  field  visits  in  the  EU  exporting 
countries. 

62 

 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ASSOCIATION AGREEMENT BETWEEN THE EU AND LEBANON  

1. 

THE AGREEMENT 

The EU and Lebanon on 17 June 2002  signed  an Association Agreement48 creating a Free 
Trade Area (FTA). Its economic and trade provisions were provisionally applied as from 2003, 
based on an Interim Agreement, which entered into force on 1 March 2003. The Association 
Agreement (hereinafter referred to as ‘the Agreement’) entered into force on 1 April 2006. The 
Agreement  liberalised  two-way  trade  in  industrial  goods  with  an  asymmetrical  transition 
period of 12 years in favour of Lebanon. The phased-in liberalisation of industrial products by 
Lebanon started in 2008 and was completed in 2015.   

In regard to agri-food trade, the Agreement as of its provisional application,  granted tariff-
free  access  to  the  EU  market  for  most  Lebanese  agricultural  and  processed  agricultural 
products (i.e. 89% of products enter tariff and quota free), with only 27 agricultural products 
facing  a  specific  tariff  treatment,  mostly  Tariff  Rate  Quotas  (TRQs).  On  the  other  hand, 
agricultural liberalisation by Lebanon has been more limited.  

In  2010,  the  EU  and  Lebanon  signed  an  additional  protocol  on  a  Dispute  Settlement 
Mechanism, which entered into force on 1 September 2018.  

the  Regional  Convention  on  Pan-Euro-Mediterranean 
In  2014,  Lebanon  signed 
preferential rules of origin (PEM Convention). The country notified its ratification in October 
2017 and formally joined on 1 December 201749.  

Lebanon is still in the process of applying to join the WTO, which the EU continues to 
support, including by technical assistance, in light of the needs of the Lebanese government.  

2. 

MAIN IMPLEMENTATION ISSUES 

Additional custom duties raised in 2019 (and updated in October 2020) continued to be in 
place throughout 2022. They include a temporary additional duty of 3% on most imports and 
additional duties on imports of about 18 groups of products. Eight of them affect imports from 
the EU, with duties ranging  from  7% to  20%.  These trade barriers have  been raised several 
times at the highest level vis-à-vis the Lebanese authorities, as they do not appear to be in line 
with the Agreement, since they affect selected goods and differentiate between trading partners.  

The  national  budget  for  2022  included  the  extension  of  the  additional  3%  custom  duty 
introduced in  2019 for another 10 years, plus  a new 10% import duty  on products  having  a 
locally produced substitute. The government is currently compiling a list of products to which 
this  additional  10%  import  duty  would  be  applied.  The  government  has  been  alerted  of  the 
possible infringement of the Association Agreement. 

48  https://ec.europa.eu/world/agreements/downloadFile.do?fullText=yes&treatyTransId=3121 
49 For more information see https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/rules-
origin/general-aspects-preferential-origin/arrangements-list/paneuromediterranean-cumulation-pem-
convention_en  

63 

 
 
 
 
 
 
 
 
 
However, since November 2022, without agreement on a new president, Lebanon has continued 
to  function  with  a  caretaker  government.  Mostly  for  this  reason,  and  despite  a  continuous 
deterioration of the economic situation in Lebanon, there have been no significant decisions 
concerning trade, and little dialogue with the EU on trade matters. Neither the Sub-Committee 
on “Industry, Trade and Services, Customs” nor the EU-Lebanon Joint Working Group 
on Trade and Investment met since December 2019.  

Discussions  continued  during  2022  about  the  possible  adoption  by  Lebanon  of  the  PEM 
transitional  Rules  of  Origin  (the  revised  rules  of  the  PEM  Convention,  applicable  on  a 
bilateral basis pending the adoption of the revised PEM Convention by all contracting parties). 
Lebanon finally referred the issue to its Ministry of Justice, who ruled that a specific law would 
need  to  be  adopted  by  Parliament  before  Lebanon  can  sign  these  rules,  which  is  likely  to 
provoke a considerable delay. 

64 

 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND JORDAN 

1. 

THE AGREEMENT 

The Association Agreement (hereinafter called ‘the Agreement’) creating a Free Trade Area 
between the EU and Jordan was signed in 1997 and entered into force in 2002. It liberalised 
two-way  trade  in  goods,  with  asymmetrical  transition  periods  in  favour  of  Jordan,  whereby 
Jordan phased in tariff reductions over a 12 year period. Tariff dismantling has been completed.  

The EU and Jordan upgraded the Agreement in 2006 concluding an additional Agreement on 
trade in agricultural and processed agricultural products. Today all Jordanian agricultural 
products can enter the EU duty free with the exception of virgin olive oil and cut flowers, which 
are under tariff rate quotas (TRQs), while agricultural liberalisation on the Jordanian side is 
substantial, but not complete. A Protocol establishing a bilateral Dispute Settlement Mechanism 
was added to the Agreement in 2011 but is not operational pending the establishment of the list 
of individuals to serve as arbitrators.  

Jordan is a member of the Regional Convention on pan-Euro-Mediterranean preferential 
rules of origin (PEM Convention). Jordan signed it in 2011 and notified its ratification in 2013. 
In 2016 the EU and Jordan agreed on a simplified Rules of Origin scheme, modified in 2018, 
granting Jordanians further flexibilities in  regard to  rules of origin linked to  employment of 
Syrian refugees and implementation of decent work standards. As of 1 September 2021, Jordan 
and the EU started to apply in parallel the PEM transitional rules of origin (the revised rules of 
the PEM Convention, applicable on a bilateral basis pending the adoption of the revised PEM 
Convention by all contracting parties).  

2. 

MAIN IMPLEMENTATION ISSUES  

The Subcommittee on trade, industry and services last met on 6 June 2023, after two years 
of break..  

Despite the break, the EU side continued to raise outstanding issues in official meetings under 
the Agreement, including in written correspondence and technical meetings.  

65 

 
 
 
 
 
 
In  its  exchanges  with  Jordan,  the  EU  has  been  underlining  the  need  for  predictability  and 
information-sharing regarding the legislative and administrative measures, which may have an 
impact on trade. Transparency of import requirements and of enforcement measures is essential 
for  EU  exporters  as  well  as  granting  sufficient  time  for  producers,  certifiers  and  the 
administration itself to adapt.   

3. 

ACTIVITIES OF SPECIFIC INTEREST 

Under  the  simplified  Rules  of  Origin  initiative,  adopted  in  2016  and  amended  in  2018, 
Jordanian exporters of 52 product groups can benefit from the same rules of origin as those 
applied by the EU on the Least Developed Countries, provided that certain conditions are met 
as regards to employment of Syrian refugees. According to the latest information, 17 companies 
have registered to the scheme and 12 of them exported their products to the EU for a total value 
of  about  €164.52  million  in  2021,  specially  to  France,  Spain,  Cyprus,  France,  Belgium, 
Hungary, and the Netherlands. Textile and garments are the main exports to the EU under the 
scheme,  because  garment  manufacturers  are  generally  large  producers,  and  such  trade 
incentives have a large impact on their bottom-line profitability. Since the date of entry into 
force of the RoO scheme, 254.658 work permits have been issued to Syrian workers in different 
economic activities. The simplified Rules of Origin scheme has not yet translated into further 
investments in the sectors benefiting from the new scheme except for the textile and garment 
industry  that  benefits  from  an  established  infrastructure  and  networks  under  the  US-Jordan 
FTA. Despite the fact that most Jordanian exporters meet the conditions for preferential access, 
there appears to be challenges on the supply side, for Jordanian companies to respond to the 
market  access  opportunities.  This  include  difficulties  in  collecting  the  necessary  market 
intelligence of the European export market and value chain, the lack of the required EU quality 
certifications, the limited matchmaking opportunities with European buyers, the high cost of 
internal and external transport, and the difficulty of finding qualified Syrian workers in order 
to meet the employment requirements.  

It  remains  a  challenge  to  advocate  for  employers  to  hire  more  Syrian  workers  on  their 
production lines, or make necessary investments, when the benefits of the ROO are not fully 
realized nor perceived.  

Raising awareness about the scheme remains complicated, and increased coordination is still 
needed to make sure that relevant reforms are in place to implement the decent work agenda in 
Jordan.  

The  EU  continues  to  support  Jordan  in  its  efforts  to  improve  its  export  performances  by 
boosting its general export capacity and competitiveness and achieving a closer integration into 
global value chains and to take fuller advantage of the preferential access to the EU market. 
Trade-for-Development is a key element of the Partnership Priorities (2021-2027)50. Through 

50 https://data.consilium.europa.eu/doc/document/ST-3304-2022-ADD-1/en/pdf  

66 

 
 
 
 
its bilateral programming, the EU also supports private sector developpment, job creation and 
the business legislative framework and reforms. 

Furthermore, the EU continues working with the ILO and the Jordanian Government to ensure 
decent working conditions in companies exporting to the EU. 

67 

 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND MOROCCO 

1. 

THE AGREEMENT 

The  EU  and  Morocco  established  a  Free  Trade  Area  (FTA)  as  part  of  the  EU-Morocco 
Association  Agreement  (the  “Agreement”),  signed  in  1996,  which  entered  into  force  on  1 
March 2000. Trade for industrial products is now entirely liberalised, while market opening for 
agricultural products is also substantial. The Agreement provides for a reciprocal liberalisation 
of trade in goods, with elements of asymmetry in favour of Morocco: since the day of entry into 
force of the Agreement,  all industrial  products  covered  are exported by  Morocco to the EU 
tariff-free,  while  Morocco  benefited  from  a  transitional  period  of  12  years.  The  transitional 
period for Morocco to reduce its tariffs on industrial products to zero ended in March 2012.  

The  EU  and  Morocco  also  signed  an  agreement  on  additional  liberalisation  of  trade  in 
agricultural  products,  processed  agricultural  products,  fish  and  fisheries  products,  which 
entered into force in October 2012. A number of EU products remain subject to tariff rate quotas 
when exported to Morocco, while for the other products the full liberalisation was completed 
on 1st October 2020. Only a few Moroccan products are still subject to tariff rate quotas when 
imported into the EU. 

An amendment was introduced to Protocols 1 and 4 of the Association Agreement by exchange 
of letters between the EU and Morocco on 25 October 2018 to cover Western Sahara.51 

A protocol  establishing  a  Dispute Settlement Mechanism was agreed  upon by the EU and 
Morocco and entered into force in 2012 but is not operational pending the establishment of the 
list of individuals to serve as arbitrators.  

Morocco  also  signed  the  Regional  Convention  on  pan-Euro-Mediterranean  preferential 
rules of origin (PEM Convention) on 18 April 2012 and ratified it in May 2019. Negotiations 
in view of an Agreement for the Protection of Geographical Indications (GIs) were concluded 
in 2015. Ratification by Morocco is still pending.  

Negotiations for a Deep and Comprehensive Free Trade Agreement started in 2013 and were 
put on hold at the request of Morocco. The Joint Statement of the EU–Morocco Association 
Council  of  June  2019  referred  to  the  aim  of  creating  an  area  of  economic  convergence  and 
social cohesion.  

The  EU  Trade  Policy  Review  communication  of  18  February  2021  specifically  highlighted 
Morocco and Tunisia as priority countries for modernising trade and investment relations with 
in  the  Southern  Neighbourhood  region.  The  modernisation  of  the  EU-Morocco  trade  and 
investment relationship could support economic recovery and meet our common challenges in 
the  field  of  resilient  value  chains,  climate  change,  quality  job  creation  and  decent  working 
conditions and the digital agenda. 

51 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:22019A0206(01)  

68 

 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES  

A  new  Government  took  office  in  2021,  which  confirmed  Morocco’s  focus  on  import 
substitution  in  its  industrial  and  trade  policies,  aiming  at  reducing  imports  while  actively 
supporting domestic production. This takes the form of the pursuit of an active industrial policy 
via  an  “industrial  project  bank”,  aimed  at  supporting  projects  with  the  potential  of 
substituting imports with domestic products, as well as mandatory domestic preferences 
in  public  procurement  and  the  compulsory  use  of  goods  of  Moroccan  origin  in  public 
procurement for all goods.  

There were no meetings of the Subcommittee on trade, industry and services since July 2020, 
but  in  2022  the  Commission  and  the  EU  Delegation  continued  to  raise  a  number  of  market 
access  issues  vis-à-vis  Morocco  about  the  significant  increase  in  Morocco’s  non-tariff 
barriers,  both  during  technical  discussions  and  in  written  correspondence  between  senior 
officials.  

Modest progress was made in 2022 on a safeguard investigation launched in 2021 targeting 
imports  of  lighting  columns.  The  conditions  for  imposing  safeguard  measures  were  not 
fulfilled – hence a potential application raised significant concern to the EU and Member States 
concerned. Following written observations, and intensive outreach by the EU Delegation and 
(several) Member States to local authorities the investigation was closed in March 2022 without 
the application of a safeguard measure.   

By contrast,  Morocco in 2022 continued to  apply  safeguard measures on imports  of steel 
products, notably welded steel pipes, hot rolled steel plates, wire rods and reinforcing bars, 
cold-rolled  steel  sheets  and  plated  or  coated  sheets,  as  well  as  coated  wood  boards.  It  also 
continued to apply anti-dumping duties on PVC, including from some EU companies.  

Among the remaining outstanding market access the EU raised again vis-à-vis Morocco in 
2022 was Morocco’s system of conformity assessment for imported products. Morocco since 
2020 applies compulsory third party certification for compliance with Moroccan standards to a 
wide  range  of  industrial  products,  with  adverse  effects  for  EU  exports.  Only  five  private 
international companies are designated to carry out the checks on imported products subject to 
technical regulations. Conformity assessments need to be undertaken mostly in the country of 
origin of the goods, and for a more limited range of products upon their entry into Morocco. 
Domestic  products  are  subject  to  a  much  lighter  regime  of  conformity  checks.  European 
operators have reported difficulties with the new system mainly related to additional costs and 
delays and different interpretations of the applicable requirements by the conformity assessment 
companies. 

Finally, Morocco has not yet implemented the state aid/subsidy control rules as foreseen by 
Article 36 of the Association Agreement, which are needed to secure a level playing field. 

69 

 
 
 
 
 
 
European  General  Court  ruling  on  Western  Sahara  &  Sustainable  Fisheries 
Agreement52  - state of play 

On 29 September 2021 the General Court of the EU annulled two Council decisions relating 
to international agreements with Morocco: 

• 

• 

the agreement between the EU and Morocco extending tariff preferences to products 
originating in Western Sahara; 
the Sustainable Fisheries Partnership Agreement.  

The Council and the Commission both lodged appeals in December 2021. Pending a final 
judgement the Court decided that the effects of the Council decisions would be upheld, i.e. 
the agreements continue to apply between the Parties. 

On 13 January 2023 the European Commission issued its third staff working document on 
the impact and benefits for the people of Western Sahara53 of extending tariff preferences 
provided under the EU-Morocco Association Agreement to products from Western Sahara 
(covering  2022).  The  report  finds  that  exports  to  the  EU  continue  to  show  a  trend  of 
moderate increase, as do levels of local employment. This is due to the favourable economic 
conditions of Western Sahara and in particular to the granting of tariff preferences under 
the  Agreement,  following  the  amendment  of  Protocols  1  and  4  of  the  EU-Morocco 
Association Agreement, which entered into force on 19 July 2019. The Agreement is thus 
resulting in benefits for Western Sahara and its population in terms of exports, economic 
activity and employment.   

52 https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-09/cp210166en.pdf  
53 https://taxation-customs.ec.europa.eu/system/files/2023-03/TAXUD-2023-00033-00-00-EN-TRA-
00.DOCX.pdf  

70 

 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ASSOCIATION AGREEMENT BETWEEN THE EU AND TUNISIA 

1. 

THE AGREEMENT 

A Free Trade Area (FTA), as part of the EU-Tunisia Association Agreement hereinafter ‘the 
Agreement’),  was  signed  on  17  July  1995  and  entered  into  force  on  1  March  1998.  This 
provided for reciprocal liberalisation of trade in goods. Since the day of entry into force of the 
Agreement, Tunisia is free to export to the EU all industrial products covered by the Agreement 
tariff-free, while it benefited from a transitional period of 12 years for imports from the EU, 
which ended in 2010. The FTA thus established the principle of two-way trade free of any 
trade tariffs for industrial goods.  

As regards agricultural, agri-food and fisheries products, the FTA foresees liberalisation 
for  selected  products,  with  the  EU  granting  tariff-free  quotas  for  a  number  of  products. 
Contrary to other countries in the region (e.g. Morocco or Egypt), the EU and Tunisia have not 
yet negotiated an agricultural top-up and hence market access on both sides is more limited than 
is the case with most other Southern Mediterranean partners.  

The  EU  and  Tunisia  signed  a  Bilateral  Protocol  in  2009  on  the  establishment  of  a  Dispute 
Settlement Mechanism (which entered into force in September 2011), however, it is not yet 
operational pending the establishment of the list of individuals to serve as arbitrators. 

Tunisia  also  signed  the  Regional  Convention  on  pan-Euro-Mediterranean  preferential 
rules of origin on 16 January 2013. Tunisia is considering joining the revised rules of the Pan- 
Euro- Med Convention on rules of origin, based on the exchanges with the EU notably with 
respect to bilateral derogations, mainly on textile. 

Four rounds of negotiations on a Deep and Comprehensive Free Trade Agreement (DCFTA or 
“Accord de libre échange complet et approfondi” ALECA in French) took place between 2015 
and 2019 and are on hold since then.  

The  EU  Trade  Policy  Review  communication  of  18  February  2021  specifically  highlighted 
Morocco and Tunisia as priority countries for modernising trade and investment relations with 
in  the  Southern  Neighbourhood  region.  The  modernisation  of  the  EU-Tunisia  trade  and 
investment relationship could support economic recovery and meet common challenges in the 
field  of  resilient  value  chains,  climate  change,  quality  job  creation  and  decent  working 
conditions and the digital agenda. 

2. 

MAIN IMPLEMENTATION ISSUES 

Partial progress was made in 2022 by averting on increased MFN customs duties that would 
have affected a number of industrial products from the EU: The Finance law 2022 (adopted on 
28 December 2021) provided for an erga omnes increase of MFN customs duties for a series 
of products. Such increase built on a similar tariff increase decided in the budget law for 2018, 
still in force. The EU alerted Tunisian authorities ahead of the adoption of the measure of its 

71 

 
 
 
 
 
 
 
negative  impact  on  European  exporters.  While  the  overall  measure  went  ahead,  considered 
necessary by the Tunisian authorities to address the country's current severe trade and economic 
situation,  some  products  of  strong  export  interest  for  the  EU  were  removed  from  the  list. 
However, the increase in erga omnes MFN customs duties notably affects some EU exports of 
some agricultural products, which, contrary to industrial products, are not liberalised under the 
Free Trade Area established as part of the EU-Tunisia Association Agreement. 

In  2022,  several  long-standing  market  access  issues  remained  unresolved.  They  mainly 
concern the following type of restrictions: i) systematic technical controls on imports without 
risk analysis and technical specifications that can impose restrictive conditions on the product 
and/or  the  importer;  ii)  burdensome  customs  measures  (such  as  the  request  for  an  export 
declaration or a free sale certificate by EU operators); iii) sectorial market access limitations on 
pharmaceuticals, cosmetics, cars, tyres, ceramic tiles; and iv) de facto non-automatic licences 
on cheese, chocolate and chocolate products.  

In addition, on 17 October 2022, new restrictions in the form of additional ex ante controls 
were  introduced  erga  omnes  on  130  product  categories  including  textile,  cosmetics,  home 
appliance,  cables  and  some  agricultural  products.  The  new  measure  requires  prior  import 
authorisation by the relevant Ministry, based on a series of 8 documents to be submitted by the 
importer. DG Trade sent a letter to the Trade Minister on the day following the entry into force 
of the measure.  

 A deficit can also be noted on Tunisia’s implementation of the state aid/subsidy control rules 
as foreseen by Article 36 of the Association Agreement, which are needed to secure a level 
playing field.  

Finally,  the  objective  of  liberalisation  of  public  procurement  set  in  Article  41  of  the 
Association Agreement has not been taken forward yet. By contrast, the decree-law 2022-68 of 
November 2022 increased the thresholds for local content requirement and national preference 
in public procurement.  

72 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
INTERIM ASSOCIATION AGREEMENT BETWEEN THE EU AND PALESTINE  

1. 

THE AGREEMENT 

The Interim Association Agreement creating a Free Trade Area (FTA) between the EU and 
Palestine54 (hereinafter called ‘the Interim  Association Agreement’) was signed in 1997 and 
entered  into  force  on  1  July  1997.  The  Interim  Agreement  liberalised  two-way  trade  in 
industrial goods by providing duty-free and quota-free access for industrial goods traded in 
both  directions,  with  some  limited  liberalisation  of  agricultural  products  by  both  parties. 
The latter was an asymmetrical liberalisation to the extent that the EU dismantled its tariffs on 
the first day of the agreement while Palestine had a phased reduction of tariffs.  

The  Association  Agreement  was  first  updated  in  2005  and  a  more  significant  update  was 
signed  in  2011  to  further  liberalise  trade  in  agricultural,  processed  agricultural  products 
(PAPs), fish and fishery products. The EU removed all tariffs and quotas on agricultural 
products and PAPs imported into the EU for a period of ten years, which is renewable. 
Palestine continues to maintain a number of tariffs and quotas on selected agricultural and PAP 
imports from the EU.  

Products from  Israeli settlements in Palestinian territory do not benefit from the preferential 
tariff  preferences  under  the  EU-Palestine  Interim  Association  Agreement  or  the  EU-Israel 
Association Agreement.  

Palestine is a member of the Regional Convention on pan-Euro-Mediterranean preferential 
rules of origin (PEM Convention), which it signed in 2013 and notified the EU of its ratification 
in 2014. The EU and Palestine are applying the Transitional rules of origin in parallel with the 
PEM Convention since 1 September 2021. In 2021, an amendment of Protocol 3 of the Interim 
Association Agreement was adopted concerning the definition of the concept of “originating 
products” and menthods of administrative cooperation, in order to introduce the modernised 
rules of the PEM Convention.  

2. 

MAIN IMPLEMENTATION ISSUES 

The Joint Economy Committee in charge of the follow-up of the Paris Protocol (agreement 
dealing with trade related issues under the Oslo Accord) has not met since 2009. The Palestinian 
Authority  undertook  efforts  with  limited  results  to  re-activate  the  committee,  pending  a 
positive response from the Israeli side.  

The last meeting of the EU-Palestinian Subcommittee on Trade was held on 16 November 
2022  where  trade  relations  were  discussed  both  in  bilateral  and  regional  context,  notably 

54 This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the 
individual positions of the Member States on this issue. 

73 

 
 
 
 
 
 
 
 
 
 
 
 
focussing  on  how  the  EU  could  facilitate  trade  talks  between  Israel  and  the  Palestinian 
Authority, either in bilateral or trilateral format. 

The  Interim  Association  Agreement  is  far  from  reaching  its  full  potential,  hindered  by 
restrictions  imposed  by  the  Israeli  authorities.  Morever,  Palestinian  trade  also  faces 
competitiveness issues and has often difficulties in meeting the standards required on the EU 
market. 

The  EU  continues  to  support  the  expansion  of  Palestinian  trade  within  the  broader  Euro-
Mediterrenean region and remains committed to engage with both the Israeli and the Palestinian 
sides to improve the conditions of Palestinian trade. Some concrete progress was achieved with 
the introduction of a pilot project for containerised transport between the West Bank and Jordan 
via the Allenby bridge, a project that was supported by the EU Delegation in Jerusalem.   

74 

 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE EU AND ISRAEL 

1. 

THE AGREEMENT 

EU-Israel relations are governed by an Association Agreement (hereafter named “Agreement” 
or "AA") that has been provisionally applied since 1996 and fully entered into force in 2000. 
The  terms  of  the  Agreement  provided  for  full  elimination  of  customs  duties  applicable  to 
industrial  products  and  partial  liberalisation  for  agricultural  products  creating  a  Free  Trade 
Area  (FTA).  The  EU  and  Israel  had  already  had  an  FTA  from  1975,  eliminating  duties  on 
industrial products and over 80% of agricultural tariff lines. The AA improved the provisions 
on rules of origin and included a series of further reciprocal agricultural concessions. However, 
the FTA does not include commitments on services and investments, regulatory convergence 
or modern trade rules. Products produced in the Israeli settlements located within the territories 
brought under Israeli administration since June 1967 are not entitled to benefit from preferential 
tariff treatment under the EU-Israel Association Agreement. 

The EU and Israel subsequently upgraded the FTA by signing agreements, which further 
liberalised trade in agricultural products, notably in processed agricultural products and 
fish and fishery products. The first agreement was signed in 2003 and the second is in force 
since 2010. The latter further increased reciprocal market access in agro-food products and is 
based on the “negative list approach” (i.e. all agro-food trade is liberalised on both sides apart 
from a limited number of sensitive lines on either side). For the sensitive agricultural products 
such as fruit and vegetables, sugar, etc., market access on both sides is provided in the form of 
duty free quotas. Moreover, the EU maintains its entry price system, but with an ad valorem 
duty component set at 0%.  

Discussions for a Dispute settlement protocol under the FTA took place in December 2016 
on the occasion of the EU-Israel trade-subcommittee, but have not been finalised. There are 
currently no discussions on resuming this process. 

Israel is a member of the Regional Convention on Pan-Euro-Mediterranean preferential 
rules of origin (PEM Convention), which it signed in 2013 and notified the EU its ratification 
and entry into force in 2014. Israel has expressed its interest in applying the Transitional rules 
of origin as well as its support on the revision of the PEM Convention. 

The EU and Israel signed in 1999 a "Good Laboratory Practice" (GLP) agreement, ensuring 
the high quality, validity and reliability of health and environmental data generated during the 
testing  of  cosmetics,  industrial  chemicals,  pharmaceuticals,  food  additives,  animal  feed 
additives, pesticides by means of mutual recognition of OECD principles of good laboratory 
practice  (GLP)  and  compliance  monitoring  programmes.  The  EU  and  Israel  also  have  an 
Agreement on Conformity Assessment and Acceptance of industrial products (ACAA) on 
pharmaceuticals,  in  force  since  January  2013,  which  facilitates  trade  on  both  sides,  as  it 

75 

 
 
 
 
recognises  each partner’s certification of conformity of pharmaceutical  products without the 
need for re-testing at import.  

In  June  2013,  the  EU  and  Israel  signed  an  EU-Israeli  Aviation  Agreement  (“Open  Skies 
Agreement”), which fully entered into force in August 2020.55 It gradually allowed over a five-
year period all EU airlines to operate direct flights to Israel from anywhere in the EU and Israeli 
carriers to operate flights to all airports throughout the EU. The Agreement has also prompted 
the Israeli Ministry of Tourism to adopt an incentive scheme for airlines bringing visitors to 
Eilat.  On  31  December  2020,  Israel  and  the  U.K.  signed  a  bilateral  agreement  mirroring 
provisions of the EU-Israel Open Skies agreement, it entered into force on 1 January 2021. 

In June 2016, Israel joined EUROCONTROL, the European body for the coordination and 
security of civil aviation, in order to better integrate into the European aviation system and to 
ensure the efficient management of this increased traffic.  

2. 

MAIN IMPLEMENTATION ISSUES 

In  2022,  substantial  progress  has  been  achieved  in  the  area  of  medical  devices:  Member 
States (those that acceded in and post 2004 and Luxembourg) had been facing trade irritants 
when exporting medical devices to Israel. These countries  are now “recognised” by Israel to 
qualify  for  fast-track  authorisation  procedure  in  Israel,  instead  of  the  standard  track.  A 
legislative amendment to solve the issue is currently discussed in the Knesset. In the meantime, 
the Israeli government has set up a pilot project  of  originally six months  (originally applied 
from 1 January – 30 June 2022) under which certifications by Notified Bodies from all Member 
States are already and de facto accepted for the fast-track procedure. Since the adoption of the 
legislative amendment by the Knesset has been delayed due to new elections, the government 
has already extended the pilot project and will continue to do so until the new legislation is in 
place.  

No significant roll back of commitments in the FTA has been recorded; however there are a 
number of persistent trade irritants, among those:  

•  The lack of data protection for biological medicines; 

•  The rigid regime of kosher certification for imported meat. 

The last meeting of the EU-Israel sub-committee on industry, trade and services was held 
on 15 February 2023 where trade relations were discussed in both bilateral and regional context. 
EU and Israel also exchanged views on existing trade irritants, as well as on some cross cutting 
issues, e.g. reduction of carbon emissions, and IPR. 

55 As of spring 2018, the EU-Israeli air transport market is fully open with no restrictions on the number of 
flights.  

76 

 
 
 
 
 
 
 
Eastern countries – Deep and Comprehensive Free Trade 
Areas 

77 

 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE DEEP 
AND COMPREHENSIVE FREE TRADE AREA BETWEEN THE EU AND 
UKRAINE 

1. 

THE AGREEMENT 

The Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Ukraine, the 
trade part of the Association Agreement56, provisionally entered into force on 1 January 2016 
while the full Association Agreement formally entered into force on 1 September 2017.  

Following  Russia’s  unprovoked  and  unjustified  war  of  agression  against  Ukraine,  the  EU 
granted  Ukraine  EU  candidate  status,  in  June  2022.  Furthermore,  the  EU  adopted  new 
autonomous trade measures (ATMs) on 30 May 202257 to temporarily suspend all duties on 
imports from Ukraine. The ATMs were extended in June 2023 for another year.58 At the same 
time, the EU is phasing out by 15 September 2023 the exceptional and temporary preventive 
measures adopted on 2 May 2023 on imports of wheat, maize, rapeseed and sunflower seed 
from Ukraine under the exceptional safeguard of the Autonomous Trade Measures Regulation. 
The scope of these measures is further reduced from 17 to six tariff lines for the four products 
covered.  These  temporary  and  targeted  measures  were  adopted  due  to  logistical  bottlenecks 
concerning these products  in Bulgaria, Hungary, Poland, Romania and Slovakia, and on the 
condition that member states do not maintain any restrictive measures. The phase out will allow 
for significant improvements to be made to the Solidarity Lanes and to address challenges to 
get Ukrainian grain out of the country for this harvest.  

The following also constitutes the assessment of the trade-liberalisation measures under article 
6 of Regulation (EU) 2022/870.   

In the first ten months of 2022 the total trade volume between the EU and Ukraine remained 
remarkably stable despite a sharp decrease of trade at the beginning of the war with an overall 
minor decrease of approximately 5% as compared to 2021. Since trade with some of Ukraine’s 
other trading partners decreased considerably (notably China) or came to a standstill (notably 
Russia and Belarus), the EU’s share in Ukrainian trade increased from approximately 40% to 
53% for imports and from 40% to 73% for exports since the beginning of the war (comparing 
March to October 2021 with the same period in 2022). This development of EU-Ukraine trade 
against the general trend is to a large extent attributable to the unavailability of sea transport 
(with the exception of the UN promoted Black Sea initiative for grains until 17 July 2023, date 
of Russia’s unilateral withdrawal of the initiative) and to EU initiatives such as the ATMs and 

56 The EU-Ukraine Association Agreement was published in OJ L 161, 29.5.2014, p. 3–2137. https://eur-
lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A22014A0529%2801%29  
57 Regulation(EU) 2022/870 of the European Parliament and of the Council of 30 May 2022 (OJ L 152 of 3.6.22, 
p. 103) 
58 Regulation (EU) 2023/1077 of the European Parliament and of the Council of 31 May 2023 on temporary 
trade-liberalisation measures supplementing trade concessions applicable to Ukrainian products under the 
Association Agreement between the European Union and the European Atomic Energy Community and their 
Member States, of the one part, and Ukraine, of the other part 

78 

 
 
 
 
 
 
the Solidarity Lanes. A regular monitoring  table on imports from  Ukraine, and in  particular 
under TRQs otherwise applicable under the DCFTA is available on DG TRADE’s website59. 
The monitoring shows considerable increases of  imports for some products  such as poultry, 
eggs, dairy, sugar, wheat, barley and apple juice. The impact of these imports on the Union 
market  is  being  monitored  closely.  The  socio-economic  impact  of  these  trade-liberalisation 
measures on the EU cannot reasonably be asessed at this stage.  

2. 

MAIN IMPLEMENTATION ISSUES 

2.1   Market access: Progress and outstanding issues  

Ukraine’s regulatory approximation to the EU acquis continued to progress well despite the 
diffcult situation caused by Russia’s war of aggession against Ukraine. In some areas, effective 
enforcement by independent and transparent institutions is challenging.  

Overall implementation of the DCFTA was discussed during the 7th EU-Ukraine Association 
Committee in Trade Configuration (ACTC), held on 25-15 October 2022 in hybrid form (in 
Brussels and online). During this meeting, the Committee adopted the update of the Annex XV 
of  the  Association  Agreement,  notably  a  list  of  EU  acquis  in  the  area  of  customs  to  which 
Ukraine has committed to approximate60). 

At the end of  2022 both sides further agreed to revise and extend the “Priority Action Plan 
for enhanced implementation of the EU-Ukraine DCFTA in 2023-2024” as a roadmap to 
accelerate and monitor the full implementation of the DCFTA, and with a view to faciltiating 
Ukraine’s  access  to  the  EU  internal  market.  Discussions  on  the  review  of  the  scope  of 
liberalisation  of  customs  duties  on  imports  under  Article  29  of  the  Agreement  that  was 
activated  in  2021  were  paused  in  view  of  the  new  situation  created  by  the  one-year  full 
liberalisation of all imports from Ukriane into the EU. Ukraine presented the steps undertaken 
in the process towards an Agreement on Conformity Assessment and Acceptance of Industrial 
Products  (ACAA).  These  include  detailed  plans  for  legislation  to  be  adopted  in  the  coming 
years, the abrogation of conflicting standards and the implementation of the recommendations 
of the EU experts. Ukraine stressed the importance of completing the pre-assessment missions 
as soon as possible. In November 2022, the Ukrainian scientific-research and training center 
for  issues  of  standardization,  certification  and  quality  was  granted  “affiliate  status”  at 
CEN/CENELEC. 

Progress was also made on a number of customs related61 issues, notably Ukraine’s accession 
to the Common Transit Convention and the Convention on the Simplification of Formalities in 
Trade in Goods on 1 October 2022. Work also progressed on Authorised Economic Operators 
(AEOs), with all relevant legislation and IT systems in place.  

59 EU trade relations with Ukraine (europa.eu) 
60 OJ L 301, 22.11.2022, p. 214–216 
61 The 6th Customs Sub-committee took place on 30 November 2022.  

79 

 
 
 
 
In regard to public procurement, the  EU and Ukraine agreed to start the process of recognition 
of  Phases  1  and  2  of  the  public  procurement  roadmap  in  Annex  XXI-A  with  a  view  to  an 
adoption in 2023. 

In the area of SPS62, Ukraine continued to implement the SPS strategy, particularly as regards 
animal  welfare,  which  is  of  particular  interest  for  stakeholders.  Work  is  ongoing  on  80 
implementing  acts,  and  transitional  periods  are  foreseen  until  2026  for  some  categories  of 
animals.  The  EU  welcomed  the  six  month  extension  of  the  export  certificates  on 
mechanically separated poultry meat (MSM), but has requested a unified export certificate 
for all EU Member States. 

As regards the wood export ban, a long-standing trade irritant on which the EU had initiated 
bilateral dispute settlement in 2019, a panel published its final ruling in December 2020 and 
found Ukraine’s 2015 temporary export ban incompatible with Article 35 of the Association 
Agreement.  In  this  context  Ukraine  informed  that  an  important  policy  reform  is  being 
considered regarding the management of forests, including the creation of a national agency. 
This would also allow addressing the findings of the above-mentioned panel.63 

In the IPR area, systemic problems remained with the enforcement of IPR. The issues were 
raised at the 19th IPR Dialogue, which took place on 27 January 2022. The main legislative text 
of  the  copyright  law  has  been  adopted  in  December  2022.  As  regards  Geographical 
Indications (GIs)64, cooperation continued in order to ensure alignment of Ukraine’s GI system 
with EU norms and standards, and the potential introduction of new EU and Ukrainian GIs by 
means  of  update  of  Annex  XXI  to  the  Association  Agreement.  In  the  field  of  competition 
including  State aid,  significant  progress  has been made during the last years to  improve the 
Ukrainian legislation and enhance the powers and independence of Ukraine’s Antimonopoly 
Committee. However, the Law on State aid remains suspended during the martial law. The EU 
noted two important draft laws currently under discussion in the Ukrainian parliament, notably 
on  the  reform  of  State  aid  and  on  economic  competition,  which  would,  if  adopted,  greatly 
contribute to Ukraine’s alignment with the EU acquis. 

62 The 6th SPS Sub-committee took place on 15 and 22 November 2021. 
63 More Detailed information and regular updates can be found on DG TRADE’s website: 
https://policy.trade.ec.europa.eu/enforcement-and-protection/dispute-settlement_en  
64 The 6th GI Sub-committee took place on 21 October 2022. 

80 

 
 
 
 
 
 
 
 
 
 
 
 
 
2.2 

Trade and sustainable development: Progress and outstanding issues  

The 6th Ukraine – EU Trade and Sustainable Development Sub-Committee was held on 9 
March 2023 via videoconference Brussels-Kyiv.  

The meeting was held in implementation of the above mentioned Priority Action Plan. Ukraine 
noted that the impact of Russia’s war of aggression againt it has made Trade and Sustainable 
Development areas even more pressing, for example as regards energy efficiency and forestry.  

The EU provided an update on trade and sustainable development policy, following its June 
2022  Communication  on  trade  and  sustainable  development  entitled  “The  power  of  trade 
partnerships:  together  for  green  and  just  economic  growth”.  The  sub-committee  noted  the 
importance of civil society participation and the contribution of the EU and Ukrainian Domestic 
Advisory Groups.  

Regarding  the  selection  of  candidates  for  the  Group  of  Experts,  the  procedure  to  select 
candidates is ongoing and will be completed by the end of 2023.  

Regarding labour matters the EU  highlighted the importance of upholding labour rights  as 
much as possible, even in times of war. Regarding the modernisation of labour relations, the 
Parties  agreed  on  the  importance  of  ensuring  alignment  with  the  applicable  EU  acquis  and 
international labour standards, including in the draft laws on labour and on occupational health 
and safety. The need to ensure full compliance with ILO Conventions on labour inspections 
was also discussed. Moreover, the Parties agreed on the need to improve social dialogue and 
on the importance of ensuring compliance with international labour standards on freedom of 
association and collective bargaining.  

The EU reaffirmed its support to Ukraine in facing the substantial environmental and climate 
impact  of  Russia’s  war  of  aggression  against  Ukraine.  The  Parties  discussed  how  the 
environment is a major victim of the aggression and that mapping environmental damage will 
be necessary for the reconstruction. The Parties updated each other on European Green Deal 
initiatives and on Ukraine’s efforts to reduce emissions and its work on framework legislation 
for environmental protection.  

On  14  March  2023,  the  parties  debriefed  the  Civil  Society  Forum  on  the  issues  discussed 
during the last meeting of the TSD Sub-Committee.  

81 

 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE DEEP 
AND COMPREHENSIVE FREE TRADE AREA BETWEEN THE EU AND 
GEORGIA 

1. 

THE AGREEMENT 

The Deep and Comprehensive Free Trade Area (DCFTA) of the EU-Georgia Association 
Agreement65 (AA) entered into force on 1 July 2016, after having been applied on a provisional 
basis  since  1  September  2014.66  This  information  sheet  constitutes  the  fifth  report  on  the 
implementation  of  the  EU-Georgia  DCFTA,  in  line  with  the  reporting  requirements  of  the 
Regulation implementing the anti-circumvention mechanism provided for in the EU-Georgia 
Association Agreement.67  

The  Government  of  Georgia  adopted  in  December  2020  its  third  Action  Plan  for  the 
implementation  of  the  DCFTA  2021-202368.  This  report  outlines  the  priorities  of  the 
Association Agenda in different sectors (including for example Technical Barriers to Trade, 
SPS  measures,  customs  or  IPR)  and  the  planned  activities  related  to  each  priority  with 
indicators, responsible implementing institutions and timeframe for implementation.   

As part of the process of amending 21 origin protocols within the PEM Convention, the EU 
implements  a  transitional  set  of  rules  of  origin  applicable  alongside  the  rules  of  the  PEM 
Convention, on a bilateral basis, pending the adoption of these amendments. On 1 September 
2021, the new rules became applicable, in an initial stage, between the EU and Georgia.  

Background: On 1 July  2017 Georgia joined the  Convention on pan-Euro-Mediterranean 
preferential rules of origin (“PEM Convention”)69. The joint Decision of the Customs sub-
committee  on  the  linkage  of  the  rules  of  origin  in  bilateral  trade  to  the  Protocol  of  PEM 
Convention70 entered into force on 1 June 2018. This allows Georgia to benefit from diagonal 
cumulation of origin with the EU and Türkiye as of 29 April 2021, and to be better integrated 
in  regional  trade  flows.  The  rules  of  origin  providing  for  diagonal  cumulation  became 
applicable between Georgia and the EU in 2018. In 2017 and 2018, they also became applicable 

65 The EU-Georgia Association Agreement was published in OJ L 261, 30.08.2014. http://eur-
lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2014:261:FULL&from=EN  
66 When it comes to DCFTA application to breakaway regions Abkhazia and South-Ossetia, the EU gives its full 
support to Georgia's territorial integrity. However, in accordance with Article 429 (Territorial application) of the 
Association Agreement, conditions enabling effective implementation of the DCFTA, and notably de facto 
government control over those territories, would need to be created in either Abkhazia or South Ossetia for the 
DCFTA to apply to those regions, which is not the case at present. 
67 Regulation (EU) 2016/401 of the European Parliament and of the Council of 9 March 2016 implementing the 
anti-circumvention mechanism provided for in the Association Agreement between the European Union and the 
European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part 
(OJ L 77/2016). According to its Article 4, the Commission shall submit an annual report on implementation of 
this Regulation and Title IV (DCFTA) of the Association Agreement. The report shall, inter alia, include 
information about the application of the anti-circumvention mechanism and set out a summary of the statistics 
and the evolution of trade with Georgia. 
68 DCFTA AP 2021-2023 ENG.pdf 
 69 The Decision of the Joint Committee of the PEM Convention on Georgia accession was published in OJ 
L 329, 3.12.2016 http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:22016D2126 
70 Council Decision (EU) 2017/2433 of 18 December 2017 on the position to be adopted on behalf of the 
European Union within the Customs Sub-Committee; OJ L 344, 23.12.2017, p. 21. 

82 

 
 
 
 
 
between  Georgia  and  the  following  partners:  Switzerland  and  Lichtenstein,  Iceland  and 
Norway, in 2020 with Ukraine and in 2021 with Türkiye. 

Georgia officially became a Contracting Party to the Energy Community Treaty on 1 July 
2017. 

2. 

MAIN IMPLEMENTATION ISSUES 

2.1   Market Access: Progress and outstanding issues 

The  9th  Association  Committee  in  Trade  Configuration  was  held  in  Brussels  on  13-14 
December 2022. 

There is good progress on the approximation commitments for 2015-2022 but with some delays. 
This  concerns  in  particular  the  final  adoption  of  draft  laws  approximating  to  EU 
telecommunication  and  postal  directives.  The  timeline  for  approximation  of  Georgian 
legislation was back-loaded in the negotiation process until, e.g. 2022 in the TBT area or even 
2027 with regard to certain veterinary measures, plant protection and food safety.  

Progress was made by Georgia in 2022 in several areas of legal approximation: 

• 

• 

In the area of SPS the necessary steps to add Georgia to the EU list of countries from 
where import of snails is permitted has been finalised.  Georgia is also advancing the 
process of allowing for exports of queen bees and aquaculture to the EU.  

in  2020,  continues 

In the area of technical barriers to trade, the new Market Surveillance Agency (MSA), 
established 
institutional  development  and  has  started 
implementation of market surveillance activities regarding the technical regulations 
adopted in line with DCFTA approximation process. Georgia has highlighted progress 
on  the  increased  number  of  recognised  services  and  introduction  of  new  demanded 
service  in  the  field  of  calibration  of  density  meters.  For  supporting  the  legal 
approximation process of Georgia, the National Agency of Standards and Metrology of 
Georgia   (GEOSTM)  strives  to  ensure  the  adoption  of  EU  harmonised  standards 
according to the DFCTA. This work has contributed to GEOSTM becoming an affiliate 
member  to  CEN  (Commission  for  European  Normalisation)  /  CENELEC  (European 
Committee for Electrotechnical Standardisation) on 24 November 2022.  

•  On Public Procurement, Georgia has presented to Parliament the final draft for the 
On  Public  Procurement,  Georgia  has  adopted    in  February  2023  a  new  Public 
Procurement Law, which, according to Georgia, further approximates its legislation to 
the EU public procurement acquis.  

• 

In  the  area  of  IPR,  the  Georgian  Government  continued  its  efforts  to  reform  the 
intellectual  property  protection  and  enforcement  system,  as  supported  by  EU-

83 

 
 
 
 
 
 
Georgia Intellectual Property Project (EUGIPP)71. The Intellectual Property Centre of 
Georgia – Sakpatenti- continued advocacy and awareness raising and training activities 
for judges, SMEs, students, teachers and provided technical assistance (including the 
exchange of best practices etc.).  

• 

• 

• 

In the area of energy policy, Georgia, since joining the Energy Community in 2017, is 
approximating its energy acquis according to the Energy Community work programme. 
Georgia  continues  to  develop  the  related  framework,  methodologies  and  regulations 
relating  to  the  implementation  of  the  Energy  Efficiency  Law,  Law  on  Energy 
Performance of Buildings and Law on Energy Labelling.  

In  the  area  of  customs  and  trade  facilitation,  there  is  good  cooperation  with  well-
advanced  implementation  of  the  customs  code  and  electronic  systems.  On  the  New 
Computerised  Transit  System  (NCTS)  deployment  phase  5,  Georgia  is  making  good 
and  rapid  progress,  deployment  of  the  software  was  started  in  January  2021.  The 
network equipment has been physically delivered to Tbilisi end of November 2022. The 
system is one of the main conditions for the accession of the country to the Common 
Transit Convention with a target date 2024.  Georgia is working on the development for 
the national programme and had their first Authorised Economic Operators (AEO) join 
the programme in 2022. Georgia was one of the first countries where the modernised 
transitional  Pan-Euro-Med  Rules  of  Origin  were  applicable  from  1  September  2021.  
Georgia and EU signed the Agreement on the accession to the EU customs and Fiscalis 
programmes in 2022.  

In the area of  services, the approximation in  the context of the DCFTA experienced 
some  delays.  On  postal  services,  Georgia  has  been  notified  of  new  EU  acts  adopted 
since 2013. Georgia has provided its position on the substance of updated Annex XV-
B and XV-C. A draft postal law is ready for adoption, but Georgia preferred to introduce 
commitments of the 2018 EU Regulations on cross-border parcel delivery services and 
submit  one  draft  law  to  Parliament  with  an  extended  deadline.  With  regard  to 
telecommunication  commitments,  the  draft  amendment  of  the  Law  of  Georgia  on 
Electronic Communication has been prepared, for the purpose of approximating with 
the |Directive on privacy and electronic communications72, Authorisation Directive73, 
Access Directive74 and Framework Directive75. The procedure for adoption started in 
2022. Georgia’s new commitments of the European Electronic Communications Code 
might be included into the pending draft and the deadline set out in Annex XV-B might 
be  postponed.  The  EU  noted  the  importance  of  strong  digital  flexibility  and 

71 https://internationalipcooperation.eu/en/eugipp  
72 Council Directive 2002/58/EC of 12 July 2002: https://eur-lex.europa.eu/legal-
content/EN/ALL/?uri=CELEX%3A32002L0058  
73 Council Directive 2002/20/EC of 7 March 2002: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=celex:32002L0020  
74 Council Directive 2002/19/EC of 7 March 2002: https://eur-lex.europa.eu/legal-
content/EN/ALL/?uri=CELEX:32002L0019  
75 Council Directive 2009/140/EC of 25 November 2009: https://eur-lex.europa.eu/legal-
content/en/ALL/?uri=CELEX%3A32009L0140  

84 

 
 
 
 
transformation needed, e.g. on eHealth and Digital Trust, Cyber Security and regional 
agreements (EaP roaming). Georgia also showed a robust interest in extending the EU’s 
roam like at home area to Georgia. 

There remained a number of outstanding issues in 2022:  

• 

• 

• 

In  the  area  of  Energy  Policy,  the  pace  of  reforms  implemented  by  the  Georgian 
government  is  commendable,  but  developing  relevant  legislation  on  renewables  and 
energy efficiency remains a priority.  

In the area of IPR, inquiries were made about the IPR protection in Georgia relating to 
the implementation, enforcement and capacity of the relevant law-enforcement bodies.  

In  the  area  of  services,  there  are  delays  with  regard  to  the  approximation  processes 
concerning postal and telecommunications services.  

2.2   Trade and sustainable development: Progress and outstanding issues 

The  7th  TSD  Sub-Committee  under  the  DCFTA  was  held  in  December  2022  by  video 
conference. It was followed by dynamic discussions with the Civil Society Forum.  

Progress was made in 2022 by Georgia in implementing the TSD chapter commitments. In that 
respect, the EU-Georgia TSD implementation priorities are summarised in the action plan for 
the period 2021-202376: This Action Plan will revised in 2023. 

In  regard to  environment protection related commitments,  Georgia adopted the  National 
Climate Change Strategy 2030 and its Action Plan 2021-2023, that identifies measures and 
actions  that  support  the  development  of  the  Georgian  economy  and  infrastructure  in  a  way 
which sets Georgia on a pathway to meet its international obligations and national ambitions 
for  climate  change  mitigation.  Georgia  is  still  in  the  process  of  adopting  the  Law  on 
Biodiversity,  and  several  decrees  regarding  forest  management,  record  keeping  and 
monitoring. Georgia is preparing to send its 5th National Communication to the UNFCCC in 
2023.  Also,  Georgia  submitted  an  updated  ‘National  Determined  Contribution’,  with  more 
ambitious  targets.  The  EU  noted  that  this  would  still  result  in  an  increase  in  emissions. 
However, with the support of EU4Climate, Georgia is working on the preparation of a Long-
Term  Low  Emission  Development  Strategy,  and  has  submitted  the  act  to  ratify  the  Kigali 
amendment to parliament in 2022.  

With regard to labour issues, Georgia continued developing the labour inspections system, with 
progress on hiring qualified labour inspectors and expanding coverage at regional level, as well 
as towards ratification of ILO Convention 81. The Parties also continued discussing measures 
to  ensure  health  and  safety  at  work,  to  combat  child  labour  and  to  achieve  effective  social 
dialogue  and  the  promotion  of  collective  bargaining.  Additionally,  Georgia  has  been 

76 https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/e0de67a3-2fd4-44ad-972b-
daf8b0901035?p=1&n=10&sort=modified_DESC  

85 

 
 
 
 
 
 
encouraged to pursue efforts on ensuring non-discrimination and equal pay between men and 
women and complete alignment of the legal framework to ILO fundamental Conventions 100 
(Equal Remuneration) and 111 (Non-discrimination). 

3. 

MONITORING IN SPECIFIC AREAS  

An anti-circumvention mechanism applies to several agricultural goods i.e. beef, pork, sheep 
and poultry meat, dairy products, eggs and albumins, mushrooms, cereals, malt, starches and 
sugars as well as to processed agricultural products such as sweetcorn, processed sugars and 
cereals and cigarettes. For none of the products under the anti-circumvention mechanism the 
respective trigger levels were exceeded in 2022, due to the low trade levels for those products 
in the analysed period. 

86 

 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE DEEP 
AND COMPREHENSIVE FREE TRADE AREA BETWEEN THE EU AND 
MOLDOVA 

1. 

THE AGREEMENT 

The Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Moldova is 
the  main  economic  pillar  of  the  Association  Agreement  (AA)  and  has  been  provisionally 
applied  since  1  September  2014  (it  fully  entered  into  force  on  1  July  2016).  The  DCFTA 
comprises two main components: trade liberalisation (in the form of a Free Trade Agreement) 
and regulatory approximation to the EU acquis. This information sheet constitutes the report on 
the implementation of the EU-Moldova DCFTA, in line with the reporting requirements of the 
Regulation implementing the anti-circumvention mechanism provided for in the EU-Moldova 
Association Agreement.77 It also constitutes the assessment of the implementation of the trade-
liberalisation measures as per article 6 of Regulation (EU) 2022/127978. 

The  DCFTA  applies  to  the  entire  territory  of  the  Republic  of  Moldova  (i.e.  including 
Transnistria) since 1 January 2016, as per Decision No 1/2015 of the EU-Republic of Moldova 
Association  Council.  The  EU  monitors  the  implementation  of  these  arrangements  and  its 
adherence  by  both  Chisinau  and  Tiraspol  on  a  yearly  basis,  and  progress  is  assessed  in  the 
framework of the annual ACTC.  

Following  Russia’s  unprovoked  and  unjustified  war  of  agression  against  Ukraine,  the  EU 
granted  Moldova  EU  candidate  status,  in  June  2022.  Furthermore,  the  EU  adopted  new 
autonomous trade measures (ATMs) on 18 July 2022 to temporarily increase the size of the 
tariff-rate  quotas  (TRQs)  for  seven  agricultural  products  for  a  period  of  one  year.  All  other 
Moldovan exports to the EU are already tariff and quota free. 

By the end of 2022, some TRQs available for Moldovan exports under the DCFTA remained 
unused  (tomatoes,  garlic),  or  barely  used  (apples,  grape  juice,  cherries)  while  the  TRQs  for 
grapes and plums were fully utilised. The additional TRQs granted under the ATMs, were used 
for plums (35%) and table grapes (26%). Given the limited use of TRQs under the ATMs, there 
has been no sizable social impact of the trade-liberalisation measures in the EU or in Moldova.  

77 Regulation (EU) 2016/400 of the European Parliament and of the Council of 9 March 2016 implementing the 
anti-circumvention mechanism provided for in the Association Agreement between the European Union and the 
European Atomic Energy Community and their Member States, of the one part, and Moldova, of the other part 
(OJ  L 77/53  of  23.3.2016).  According  to  its  Article  14,  the  Commission  shall  submit  an  annual  report  on 
implementation of this Regulation and Title V (DCFTA) of the Association Agreement. The report shall, inter alia, 
include  information  about  the  application  of  the  anti-circumvention  mechanism  and  set  out  a  summary  of  the 
statistics and the evolution of trade with Moldova. 
78 Regulation (EU) 2022/1279 of the European Parliament and of the Council of 18 July 2022 on temporary trade 
liberalisation measures supplementing trade concessions applicable to products from the Republic of Moldova 
under the Association Agreement between the European Union and the European Atomic Energy Community and 
their Member States, of the one part, and Ukraine, of the other part (OJ L 195, 22.7.2022, p. 6) 

87 

 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

2.1.   Market Access: Progress and outstanding issues  

In  2022,  Moldova  made  some  progress  in  the  regulatory  approximation  process  in  different 
fields of the EU acquis, especially on customs, TBT and SPS. Such approximation needs to 
be accompanied by effective enforcement by independent and transparent institutions, which is 
challenging in some areas, as well as by the necessary secondary legislation.  

A positive development was Moldova’s amendment of its Domestic Trade Law in July 2022. 
The  Law  had  favoured  domestic  products  and  therefore  contravened  national  treatment 
obligations under the DCFTA (and WTO). The amendment removed these provisions. 

Overall implementation of the DCFTA was discussed during the 9th EU-Moldova Association 
Committee in Trade Configuration (ACTC), which was held in Brussels on 29 November 
2022.  

In  2022,  Moldova  took  further  steps  to  approximate  its  legislation  to  the  EU  acquis  and 
comply with the commitments under the DCFTA: 

✓  As  regards  technical  barriers  to  trade  (TBT),  Moldova  is  advancing  in  the 
implementation of EU technical standards and the withdrawal of conflicting standards. 
Moldova  has  selected  low  voltage  equipment  and  electro-magnetic  compatibility 
(EMC) as its priority sectors to negotiate an Agreement on Conformity Assessment and 
Acceptance  of  Industrial  Products  (ACAA.  The  new  EU  acquis  in  the  area  of  TBT, 
including the new EU Regulation on market surveillance will be reflected in the updated 
Annex XVI of the Association Agreement. In November 2022, Moldova’s Insititute for 
Standardisation was granted “affiliate status” at CEN/CENELEC.  

✓  In  the  area  of  sanitary  and  phytosanitary  measures  (SPS),  Moldova  continued  its 
approximation to the EU acquis. Audits on poultry and eggs took place in 2022, and 
following a successful outcome, the export of eggs and processed poultry meat from 
Moldova to the EU has been authorised. Authorisation of the export of fresh poultry is 
dependent on the Moldovan authorities putting in place controls to counter an outbreak 
of avian influenza. 

✓  In regard to public procurement, Moldova is moving forward with its implementation 
of the DCFTA chapter on public procurement, with a focus on concessions and public-
private-partnerships  (PPPs).  The  draft  post-2020  Public  Procurement  Development 
programme  will  include  information  about  both  the  planned  amendments  of  the 
concessions/PPPs legislation and a concrete timeline for the adoption of the government 
decree on the certification of public procurement officials. It was expected that the new 
(or updated) draft law on concessions/PPPs would be prepared in 2023. The Moldovan 
government is now reflecting on possible options for an e-procurement system. 

88 

 
 
 
 
 
✓  In the area of Customs, although Moldova adopted a new Customs Code  based on the 
Union Customs Code, in 2022, there have been delays in its entry into force. It will be 
important  to  address  some  remaining  gaps  to  ensure  it  is  fully  harmonised  with  the 
Union  Customs  Code,  including  on  Free  Economic  Zones.  A  bilateral  mutual 
recognition agreement on authorised economic operators, entered into force on 1 
November  2022,  making  Moldova  a  front-runner  among  the  DCFTA  countries. 
Moldova is continuing work towards the deployment of the New Computerised Transit 
System phase 5 in order to be able to join the Common Transit Convention in 2024. 
Moldova  acceded to the Customs Fiscalis programmes for 2023-2027 in 2023.  

✓  On IPR, Moldova adopted a new Law on Copyright and Related Rights and continued 
its cooperation with the EU Intellectual Property Office, in particular on trademarks and 
designs.  

✓  On Services,  the following progress has been made: 

o  Telecommunications services: There is ongoing cooperation between the EU 
and  Moldova  on  mutual  recognition  of  electronic  identities  and  electronic 
signatures. Moldova will follow developments on the amendment of the eIDAS 
(Electronic  IDentification,  Authentication  and  Trust  Services)  Regulation  in 
order to keep its national legislation aligned. Moldova is also planning to send 
to the EU a formal request for the recognition of Moldovan electronic signatures 
as  Advanced  Electronic  Signatures.  Moldova  has  confirmed  its  interest  in  a 
bilateral roaming agreement and technical exchanges have taken place on the 
reciprocal application of single maximum Union-wide voice termination rates 
in  view  of  progressing  towards  a  long-term  solution  on  roaming.  Work  has 
begun on an update to Annex XXVIII-B of the EU-Moldova DCFTA to include 
current  EU  legislation  as  appropriate,  notably  the  European  Electronic 
Communications Code. 

o  Postal services: Moldova has made good progress to align with the EU postal 
acquis.  Transposition of  Regulation  (EU) 2018/644 is  ongoing  and work will 
begin to update Annex XXVIII-C of the EU-Moldova DCFTA.  

✓  Concerning  the  Application  of  the  DCFTA  to  Transnistria,  the  Trade  Facilitation 
Agreement remains very important for businesses on the left bank of the Dniester River 
in  their  exports  to  the  EU.  Continuous  engagement  of  the  two  sides  is  necessary  to 
ensure the application of the DCFTA to the entire territory of Moldova, in particular in 
the fields of TBT, customs and IPR. 

89 

 
 
 
 
 
 
 
 
 
 
2.2   Trade and Sustainable Development: Progress and outstanding issues   

As it embarks on the accession process, Moldova will use the DCFTA implementation to build 
administrative capacity and reform its legal framework on sustainability.  

In  the  meeting  of  the  TSD  Subcommittee  on  16  March  2023  three  environment-related 
topics were discussed: deforestation, management of waste and decarbonization. In addition, 
the  subcommittee  also  considered  the  essential  role  of  labour  inspections  for  the  effective 
implementation of labour rights and decent working conditions, tackling undeclared work, and 
ensuring a competitive business environment.  

As regards labour matters, the EU welcomed progress on the labour inspections system since 
the previous TSD Subcommittee, and stressed the importance of continuing to strengthen it in 
line  with  the  requirements  of  applicable  ILO  Conventions.  The  parties  also  agreed  on  the 
importance  of  duly  involving  and  consulting  social  partners  in  the  development  of  labour 
legislation  and  of  strenghtening  occupational  health  and  safety.  Moreover,  the  discussion 
underlined the need to pursue efforts to combat child labour as well as informal and undeclared 
work. 

Engagement  with  civil  society  took  place  before  and  after  the  TSD  committee.  The  joint 
statement by the DAGs inter alia acknowledged the removal of EU quotas from a number of 
important  agrifood  exports  from  Moldova  as  a  measure  to  support  the  economy  amid  the 
consequences  of  the  war  in  Ukraine  and  called  on  both  EU  and  Moldovan  Government 
counterparts to make progress on measures to grant exports of animal origin access to the EU 
market and to initiate negotiations for Moldova to gain better access to the EU single market 

3. 

MONITORING IN SPECIFIC AREAS  

An anti-circumvention mechanism applies to several agricultural goods (inlcuding pig and 
poultry meat, dairy products, eggs, sugar and some cereals such as wheat, barley and maize) as 
well  as  to  processed  agricultural  products  such  as  sweet  corn,  processed  sugars,  dairy  and 
cereals  and  cigarettes.  In  2022,  Moldova  exceeded  the  thresholds  for  wheat  (127%),  maize 
(215%),  processed  cereals  (540%)  and  sweet  corn  (450%)  but  provided  satisfactory 
explanations for the respective levels.   

90 

 
 
 
 
 
 
 
 
Western Balkans – Stabilisation and Association 
Agreements 

91 

 
 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-KOSOVO* STABILISATION AND ASSOCIATION 
AGREEMENT 

1. 

THE AGREEMENT 

The EU and Kosovo signed a Stabilisation and Association Agreement (SAA) on 27 October 
2015. The SAA is the prime instrument of the EU’s overall policy towards the Western Balkan 
countries’  Stabilisation  and  Association  process.  Under  this  process,  all  Western  Balkans 
partners have a clear European perspective.  

The SAA - including the trade-related part - entered into force on 1 April 2016 and foresees:  

−  Upgrading the existing trade relations by gradual establishment of a free trade area over 

a period lasting a maximum of 10 years.  

−  Almost unrestricted market access to the EU for goods produced in Kosovo: upon entry 
into  force  of  the  SAA,  the  EU  has  abolished  all  customs  duties  that  had  applied  to 
Kosovo, with the exception of a few product lines in the agricultural sector, which are 
subject to specific duties or tariff-quotas. NB: Kosovo has abolished the customs duties 
on a number of tariff lines (industrial, agricultural and fishery products), while for the 
rest it will reduce the duties progressively over 10 years.  

−  Kosovo’s commitment to ensure the gradual approximation of its laws with the EU 
acquis  in  a  number  of  important  areas,  such  as  public  procurement,  standardisation, 
consumer  protection,  working  conditions  and  equal  opportunities.  The  SAA  also 
provides for a gradual liberalisation in the areas of rights of establishment, supply of 
services  and  movement  of  capital  and  it  includes  provisions  on  competition  matters, 
state aid, and intellectual property rights. 

Kosovo  benefits  from  Autonomous  Trade  Measures  (ATMs)  introduced  under  Regulation 
2020/217279, which provide additional market access for certain fruits, vegetables and wines, 
thereby allowing nearly all Kosovan exports to enter the EU without customs duties or limits 
on  quantities.  All  the  Western  Balkans  have  benefitted  from  these  ATMs  since  2000.  The 
current ATM Regulation is due to expire at the end of December 2025. 

The Commission was informed in November 2019 of Kosovo’s plans to submit an application 
for WTO observer status. 

The EU and Kosovo are applying the rules of origin of the PEM Convention since 1 April 2016. 
As of 15 October 2022 the EU and Kosovo are applying on bilateral basis the Transitional rules 
of origin in parallel with those of the PEM Convention. 

79 Regulation (EU) 2020/2172 of the European Parliament and of the Council of 16 December 2020 amending 
Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories 
participating in or linked to the European Union’s Stabilisation and Association process 

92 

 
 
 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

Kosovo has been relatively slow in implementing the SAA and has yet to reap its benefits. This 
is partly because Kosovo suffers from problems of administrative capacity in the trade field. 
There is a long-standing need to enhance the capacity of the Trade Department to undertake 
trade  defence  related  investigations  in  line  with  EU  procedures  and  to  determine  protective 
measures for imports, if necessary. There is also a weak level of cooperation and coordination 
among institutions involved in trade development. 

In addition, Kosovo needs to put in place a more transparent trade policy, in line with WTO 
and EU practices, and avoid protectionism. Although a law on foreign trade was adopted in 
2022, a related draft law on Internal Trade – important for the business climate – has made no 
progress. A new trade policy document is also under development, although few details have 
emerged and there are concerns that the government may be given too much control over trade. 
Indeed, a so-called Law on Interim Measures was prepared in 2022, which would have given 
Ministers  wide-ranging  powers  to  introduce  temporary  protectionist  “safeguard  measures” 
without  following  the  provisions  of  the  SAA  or  WTO  rules.  However,  after  considerable 
criticism  from  the  EU,  a  number  of  amendments  were  introduced,  softening  the  law,  and 
ultimately referred to the the Constitutional Court where a decision on its implementation is 
pending. 

Some  progress  was  made  in  2022  in  the  implementation  of  the  SAA’s  trade  related 
commitments in the car sector, where Kosovo took an important step forward by amending 
the  Law  on  Vehicles.  The  amendment  removed  the  Law’s  provisions  on  additional 
homologation  requirements  for  imported  used  vehicles,  thus  resulting  in  the  recognition  by 
Kosovo  of  all  vehicles  made  in  the  EU.  Pending  is  the  revision  of  bylaws  to  remove  the 
provisions that have led to the creation of a monopoly with regard to the licensed economic 
operators in this sector. 

Outstanding issues include the following:  

•  Although Kosovo has adopted a law on trade in petroleum products and renewable fuels, 
it still needs to adopt legislation on losses of petroleum (through evaporation) during 
transportation, which has been a longstanding concern of EU investors, as such losses 
are  not  deducted  by  Kosovo  authorities  and  thus  not  taken  into  account  when  they 
calculate customs duties and taxes.  

•  Kosovo  still  lacks  adequate  legislation  on  trade  in  arms,  military  equipment  and 

dual-use goods, which the EU side has criticised.  

•  Kosovo is only partially aligned with EU Regulations on dumping and countervailing 

duties. 

93 

 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-SERBIA STABILISATION AND ASSOCIATION 
AGREEMENT 

1. 

THE AGREEMENT 

The EU and Serbia signed a  Stabilisation and Association Agreement (SAA) on 29 April 
2008. The SAA is the prime instrument of the EU’s overall policy towards the Western Balkan 
countries’  Stabilisation  and  Association  process.  Under  this  process,  all  Western  Balkan 
countries are granted a clear perspective to become EU Member States.   

The SAA entered into force on 1 September 2013, although the trade-related part of the SAA 
already entered into force, through an Interim Agreement from 1 February 2009 for Serbia, and 
from  8  December  2009  for  the  EU.  This  Agreement  established  a  free-trade  area  over  a 
transitional period of six years.  

The SAA covers products in all Chapters of the Harmonised System. Only a few exceptions, 
concerning a limited number of agricultural and fishery products were not fully liberalised and 
are still subject to preferential quantitative concessions (Tariff Rate Quotas).   

The SAA also includes provisions concerning competition and state aid, investment and related 
payments,  a  high  level  of  protection  of  intellectual  property  rights  and  strengthened  co-
operation in customs matters. Since the entry into force of the full SAA in 2013, a number of 
additional disciplines have been implemented concerning  legislative approximation in  many 
areas including standardisation, as well as provisions regarding services and establishment. 

Serbia  benefits  from  Autonomous  Trade  Measures  (ATMs)  introduced  under  Regulation 
2020/217280, which provide additional market access for certain fruits, vegetables and wines, 
thereby allowing nearly all Serbian exports to enter the EU without customs duties or limits on 
quantities. All the Western Balkans have benefitted from these ATMs since 2000. The current 
ATM Regulation is due to expire at the end of December 2025. 

Serbia began EU accession negotiations in January 2014. 

Serbia  started  negotiating  its  accession  to  the  WTO  in  2004.  The  EU  continues  to  support 
Serbia’s efforts but the negotiation process has been stalled for several years. 

The EU and Serbia are applying the PEM Convention since 01.02.2015 and the Transitional 
rules as of 06.12.2021. 

80 Regulation (EU) 2020/2172 of the European Parliament and of the Council of 16 December 2020 amending 
Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories 
participating in or linked to the European Union’s Stabilisation and Association process 

94 

 
 
 
 
 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

Serbia has generally made good progress overall in implementing the SAA since its entry into 
force. 

However, in 2022 Serbia unilaterally introduced a series of trade restricting measures in 
the form of export bans or TRQs:  

•  The  measures  were  amended,  withdrawn,  re-introduced,  reduced  and  extended 
frequently during the year, but at one time or another covered certain grains and flours, 
sunflower oil and seeds, raw wood and wood products, milk and butter, eurodiesel 
and natural gas.  

•  Despite holding three technical meetings, the Serbian authorities were not able to justify 
the measures (for example under the shortage clause of the SAA) and did not follow the 
correct procedures to notify the European Commission in advance of introducing trade 
restricting measures. The measures therefore are considered breaches of the SAA, and 
seem to have been put in place for protectionist reasons. The Commission has called for 
them all to be removed unless genuine justifications can be provided.  The measures 
were revoked at the beginning of 2023. 

In 2022, Serbia continued to apply a new system to manage wine quotas81 adopted in January 
2021. The new system changed  the previous allocation principle (i.e. first come/first served 
system) that has worked well in the past and is provided for in the SAA, into a system where 
the import quota is allocated over 4 quarters and the allocation per trader is restricted to 15% 
of the available quota in each of the first three quarters. The EU expressed concerns that this 
new system would risk harming market access by EU exporters and imposing additional costs, 
and continues to monitor the situation, as the measure represents a step backwards in the state 
of alignment with the EU approach. In practice EU exporters or domestic businesses have not 
been facing major problems. 

Serbia continued to raise concerns regarding the impact of the EU’s steel safeguard measures.  

81 Under the SAA, the EU grants Serbia access to the EU market for a quota of 67,300hl of wine and Serbia has 
granted a quota of 25,000hl for EU wines. 

95 

 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-BOSNIA AND HERZEGOVINA STABILISATION AND 
ASSOCIATION AGREEMENT 

1. 

THE AGREEMENT 

The  EU  and  Bosnia  and  Herzegovina  signed  a  Stabilisation  and  Association  Agreement 
(SAA) on 16 June 2008. The SAA is the prime instrument of the EU’s overall policy towards 
the Western Balkan countries’ Stabilisation and Association  process.  Under this  process,  all 
Western Balkan countries are granted a clear perspective to become EU Member States.  

The SAA entered into force on 1 June 2015, although the trade-related part of the SAA already 
entered into force through an Interim Agreement on 1 July 2008. This Agreement established a 
free-trade area over a transitional period of five years. The Agreement covers products in all 
Chapters of the Harmonised System. Regarding agricultural products, the agreement is largely 
asymmetrical.  EU  agricultural  imports  from  Bosnia  and  Herzegovina  are  almost  completely 
liberalised (with very few exceptions). On the other hand, EU agricultural exports to Bosnia 
and Herzegovina remain subject to tariffs and tariff rate quotas (TRQs).  

The Agreement also includes provisions concerning competition and state aid, investment and 
related payments, a high level of protection of intellectual property rights and strengthened co-
operation  in  customs  matters.  Since  the  entry  into  force  of  the  full  SAA  on  1  June  2015,  a 
number  of  additional  disciplines  have  been  implemented  concerning,  notably,  government 
procurement,  legislative  approximation  in  many  areas  including  standardisation,  as  well  as 
provisions regarding services and establishment. 

Bosnia and Herzegovina benefits from Autonomous Trade Measures (ATMs) introduced under 
Regulation 2020/217282, which provide additional market access for certain fruits, vegetables 
and  wines,  thereby  allowing  nearly  all  Bosnian  and  Herzegovinan  exports  to  enter  the  EU 
without customs duties or limits on quantities. All the Western Balkans have benefitted from 
these ATMs since 2000. The current ATM Regulation is due to expire at the end of December 
2025. 

On 15 December 2022, BiH was given EU candidate country status. 

Bosnia  and  Herzegovina  started  negotiating  its  accession  to  the  WTO  in  1999.  The  EU 
continues  to  support  Bosnia  and  Herzegovina’s  efforts  but  the  negotiation  process  has  been 
stalled for several years. 

The EU and Bosnia and Herzegovina are applying the PEM Convention since 09.12.2016 and 
the Transitional rules are in the final stage of adoption. 

82 Regulation (EU) 2020/2172 of the European Parliament and of the Council of 16 December 2020 amending 
Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories 
participating in or linked to the European Union’s Stabilisation and Association process 

96 

 
 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

Bosnia  and  Herzegovina  (BiH)  has  made  reasonable  progress  in  implementing  the  SAA 
provisions since their entry into force. However, no progress has been made on BiH’s WTO 
accession. 

A long-standing trade irritant relates to BiH’s excise duties on beer, which imposes different 
conditions for importers and domestic producers. In May 2020, BiH promised to prepare a new 
Law on Excise Duties and a Rulebook in line with the EU acquis. However, no progress has 
been made since, despite the Commission’s engagement with  BiH.  

In 2022, BiH unilaterally introduced trade restricting measures in the form of export bans 
and TRQs on wood and wood products. The measures were amended several times during 
the year and were based on similar measures introduced by Serbia: 

•  Despite holding two technical meetings, the BiH authorities were not able to justify the 
measures (for example under the shortage clause of the SAA) and did not follow the 
correct procedures to notify the European Commission in advance of introducing trade 
restricting measures.  

•  The measures therefore were considered breaches of the SAA, and seem to have been 
put in place for protectionist reasons. The Commission called for them to be removed 
unless  genuine  justifications  could  be  provided.  The  measures  lapsed  on  31  January 
2023, but were reintroduced on 23 June 2023, with an expiration date of 31 July 2023.. 

A  further  trade  irritant  in  2022  was  the  removal  of  various  medicines  produced  by  EU 
companies  from  the  lists  of  medicines,  which  can  be  prescribed  and  dispensed  by  health 
insurance funds in certain cantons. This is a discrimination against EU medicines which is in 
breach of the SAA and is openly presented in BiH as support for local producers. The European 
Commission has written to the BiH authorities asking for the measure to be removed.  

97 

 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-MONTENEGRO STABILISATION AND ASSOCIATION 
AGREEMENT 

1. 

THE AGREEMENT 

The  EU  and  Montenegro  signed  a  Stabilisation  and  Association  Agreement  (SAA) on  15 
October 2007. The SAA is the prime instrument of the EU’s overall policy towards the Western 
Balkans’  Stabilisation  and  Association  process.  Under  this  process,  all  Western  Balkan 
countries are granted a clear perspective to become EU Member States.   

The SAA entered into force on 1 May 2010, although the trade-related part of the SAA already 
entered into force through an Interim Agreement on 1 January 2008. The SAA established a 
free-trade area over a transitional period of five years. From the date of the Interim Agreement, 
the EU granted permanent liberalisation of 97.3% of tariff lines, representing almost duty free 
treatment  to  all imports  from  Montenegro. By 2013, Montenegro had liberalised 95% of its 
tariff lines,  representing  99% of EU imports during the three years preceding  the entry into 
force of the agreement. The SAA covers products in all Chapters of the Harmonised System. 
Only a few agricultural and fishery products are not fully liberalised and subject to preferential 
quantitative concessions (TRQs).   

Montenegro benefits from Autonomous Trade Measures (ATMs) introduced under Regulation 
2020/217283, which provide additional market access for certain fruits, vegetables and wines, 
thereby  allowing  nearly  all  Montenegrin  exports  to  enter  the  EU  without  customs  duties  or 
limits on quantities. All the Western Balkans have benefitted from these ATMs since 2000. The 
current ATM Regulation is due to expire at the end of December 2025. 

Montenegro began EU accession negotiations in June 2012. 

Montenegro has been a member of the WTO since 29 April 2012. 
The  EU  and  Montenegro  are  applying  the  PEM  Convention  since  01.02.2015  and  the 
Transitional rules as of 09.02.2022. 

2. 

MAIN IMPLEMENTATION ISSUES 

Montenegro continues to make good progress in implementing the SAA since its entry into 
force. There are no significant trade barriers.  

Montenegro has made substantial progress in adapting its legislation to the EU acquis in the 
field of dual use goods.  

Among  others,  Montenegro  adopted  a  new  Law  on  export  control  of  dual-use  goods  in 
December 2021, which applies since January 2022. It contains most of the provisions of the 
latest EU Regulation from May 2021, leaving out certain parts that could be applied only once 

83 Regulation (EU) 2020/2172 of the European Parliament and of the Council of 16 December 2020 amending 
Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories 
participating in or linked to the European Union’s Stabilisation and Association process 

98 

 
 
 
 
 
 
Montenegro joins the EU. This was complemented by the adoption of the national control list 
of dual-use goods in March 2022, aligned with the latest EU list.  

Certain parts of the EU Regulation can only be integrated once Montenegro becomes an EU 
member state. The List of dual use goods and technologies is regularly updated and aligned 
with  the EU List. 

99 

 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE EU-ALBANIA STABILISATION AND ASSOCIATION 
AGREEMENT 

1. 

THE AGREEMENT 

The EU and Albania signed a Stabilisation and Association Agreement (SAA) on 12 June 2006. 
The SAA constitutes the framework of relations between the European Union and the Western 
Balkan  countries  for  the  implementation  of  the  Stabilisation  and  Association  Process.  This 
process is the European Union's policy towards the Western Balkans, established with the aim 
of eventual EU membership.  

The full SAA entered into force on 1 April 2009, although the trade-related part of the SAA 
already  entered  into  force  through  an  Interim  Agreement  on  1  December  2006.  The  SAA 
established a free-trade area over a transitional period of ten years. As regards the EU, in 2006, 
98.7% of its tariff lines were already duty-free, representing 100% of the value of imports from 
Albania. By 2010, Albania had liberalised 92.7% of its tariff lines for imports from the EU.  

The SAA covers products in all Chapters of the Harmonised System. Regarding agricultural 
products,  the  agreement  is  largely  asymmetrical.  EU  agricultural  imports  from  Albania  are 
almost  completely  liberalised  (with  very  few  exceptions).  In  this  regard,  Albania  expressed 
during the last Subcommittee meetings on Agriculture and Fisheries their wish to improve their 
existing market access under the SAA for certain fish and fishery products tariff rate quotas 
(TRQs). On the other hand, EU agricultural  exports to Albania remain subject to tariffs and 
tariff rate quotas (TRQs).  On the other hand, EU agricultural exports to Albania remain subject 
to tariffs and  TRQs.  

The  SAA  also  includes  provisions  concerning  competition  matters,  investment  and  related 
payments,  a  high  level  of  protection  of  intellectual  property  rights  and  strengthened  co-
operation in  customs matters. Since the entry into force of the full SAA  on 1 April 2009, a 
number  of  additional  disciplines  have  been  implemented  concerning,  notably,  government 
procurement,  legislative  approximation  in  many  areas  including  standardisation,  as  well  as 
provisions regarding services and establishment. 

The  SAA  and  its  Interim  Agreement,  applied  since  2006,  have  allowed  progressive  trade 
liberalisation and mutual duty-free access for most goods. Since 2000 Albania has also been 
benefiting from the ‘Autonomous Trade Measures’ introduced under Regulation 2020/217284, 
which  provide  additional  market  access  for  certain  fruits,  vegetables  and  wines,  thereby 
allowing  nearly  all  Albanian  exports  to  enter  the  EU  without  customs  duties  or  limits  on 
quantities. The current ATM Regulation is due to expire at the end of December 2025. 

84 Regulation (EU) 2020/2172 of the European Parliament and of the Council of 16 December 2020 amending 
Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories 
participating in or linked to the European Union’s Stabilisation and Association process 

100 

 
 
 
 
 
 
On 19 July 2022, EU accession negotiations officially began with Albania.  

Albania has been a member of the WTO since 8 September 2000. 

The EU and Albania are applying the PEM Convention since 01.05.2015 and the Transitional 
rules as of 01.09.2021. 

2. 

MAIN IMPLEMENTATION ISSUES 

Albania continues to make good progress in implementing the SAA provisions since their entry 
into force.  

Albania has made some progress as it continued alignment of legislation in the field of dual use 
goods and to implement CEFTA additional protocols. In this context, Albania is drafting an 
update to its framework Law on Export Control of Dual-Use Goods, to bring it in line with most 
provisions of the latest EU Regulation (821) from May 2021, and is making efforts to enhance 
capacity  for  the  application  of  dual  use  export  controls.  Albania’s  national  List  of  dual  use 
goods and technologies is regularly updated and aligned with the EU List. 

There are no significant trade barriers. However, more information is needed regarding an 
economic cooperation agreement concluded between Albania and the United Arab Emirates,  
which seems to exempt certain strategic projects from all public procurement and  competition 
rules, including a project to develop the Durres port. This would need to be clarified in case 
future investments would require EU funding under the Western Balkans Investment Platform 
(WBIF) of the EU’s Economic and Investment Plan for the Western Balkan countries. Albania 
has  given  the  Commission  assurances  that  the  projects  and  procedures  included  in  the 
Agreement  with  the  United  Arab  Emirates  will  be  in  line  with  the  obligations  of  the  SAA. 
However,  Albania  has  failed  to  explain  how  Article  6  of  the  Agreement  will  be  applied  in 
practice, and how compatibility with Article 74 of the SAA will be ensured. 

101 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE TRADE 
PILLAR OF THE STABILISATION AND ASSOCIATION AGREEMENT BETWEEN 
THE EU AND NORTH MACEDONIA 

1. 

THE AGREEMENT 

The EU and North Macedonia signed a Stabilisation and Association Agreement (SAA) on 9 
April 2001. The SAA constitutes the framework of relations between the European Union and 
the  Western  Balkan  countries  for  the  implementation  of  the  Stabilisation  and  Association 
Process. This process is the European Union's policy towards the Western Balkans, established 
with the aim of eventual EU membership 

The SAA entered into force on 1 April 2004, although the trade-related part of the SAA already 
entered into force through an Interim Agreement on 1 June 2001. Trade liberalisation between 
the  EU  and  North  Macedonia  was  completed  over  a  period  of  ten  years.  The  SAA  covers 
products in all Chapters of the Harmonised System.   

Regarding  agricultural  products,  the  agreement  is  largely  asymmetrical.  EU  agricultural 
imports from North Macedonia are almost completely liberalised (with very few exceptions). 
On the other hand, EU agricultural exports to North Macedonia remain subject to tariffs and 
Tariff Rate Quotas (TRQs).  

The  SAA  also  includes  provisions  concerning  competition  matters,  investment  and  related 
payments,  a  high  level  of  protection  of  intellectual  property  rights  and  strengthened  co-
operation in customs matters. Since the full entry into force of the SAA, a number of additional 
disciplines have been implemented concerning, notably, government procurement, legislative 
approximation in many areas including standardisation, as well as provisions regarding services 
and establishment. 

North  Macedonia  benefits  from  Autonomous  Trade  Measures  (ATMs)  introduced  under 
Regulation 2020/217285, which provide additional market access for certain fruits, vegetables 
and wines, thereby allowing nearly all exports from North Macedonia to enter the EU without 
customs  duties  or  limits  on  quantities.  All  the  Western  Balkans  have  benefitted  from  these 
ATMs since 2000. The current ATM Regulation is due to expire at the end of December 2025. 

In  July  2022  the  EU  accession  negotiations’  process  started  with  North  Macedonia.  The 
Commission  launched  immediately  the  analytical  examination  of  the  EU  acquis  (‘screening 
process’). 

North Macedonia has been a member of the WTO since 4 April 2003. 

The  EU  and  North  Macedonia  are  applying  the  PEM  Convention  since  01.05.2015  and  the 
Transitional rules as of 09.09.2021. 

85 Regulation (EU) 2020/2172 of the European Parliament and of the Council of 16 December 2020 amending 
Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories 
participating in or linked to the European Union’s Stabilisation and Association process 

102 

 
 
 
   
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

North Macedonia has made good progress in implementing the SAA since its entry into force.  

However, in 2022, North Macedonia unilaterally introduced trade restricting measures in 
the form of export bans and TRQs on grains, flours and sunflower oil and later on wood and 
wood products. The measures were amended several times during the year :  

•  The  authorities  of  North  Macedonia  referred  to  the  shortage  clause  of  Article  38 
paragraphs 4 and 5 of the Stabilisation and Association Agreement (SAA) between the 
European Union and North Macedonia, which stipulates that appropriate measures may 
be  taken  in  the  case  of  a  critical  shortage,  or  threat  thereof,  of  foodstuffs  or  other 
products essential to the exporting party; 

•  The authorities of North Macedonia did not provide valid justifications  (for example 
under the shortage clause of the SAA) and did not notify the European Commission in 
advance of introducing trade restricting measures.  

•  The Commission called on the authorities to remove these export restrictions to avoid 
disruption to trade flows in these particularly troubling times. By December 2022, all 
the measures were either removed or expired by the end of 2022. 

North Macedonia has adapted its legislation to the EU acquis in the field of dual use goods. 
Following  the  adoption  by  the  EU  of  a  revised  Regulation  (821)  on  dual  use  goods  export 
controls86, North Macedonia put on pause its own draft Law on dual use goods, and is reviewing 
any changes that will need to be made to bring it in line with the  respective EU legislation. 
North Macedonia’s national List of dual use goods and technologies is regularly updated and 
aligned with the EU List. 

North  Macedonia  is  preparing  legislation  on  export  credits  to  align  with  EU  Regulation 
1233/2011. 

86 Reference: http://data.europa.eu/eli/reg/2021/821/oj  

103 

 
 
 
 
 
 
 
 
 
 
 
 
United Kingdom, Switzerland, Norway, Türkiye 

104 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
UNITED KINGDOM TRADE AND COOPERATION AGREEMENT 

1. 

THE AGREEMENT 

The EU-United Kingdom Trade and Cooperation Agreement (“TCA”) concluded between 
the EU and the United Kingdom sets out preferential arrangements in areas such as trade in 
goods and services, digital trade, intellectual property, public procurement, aviation and road 
transport,  energy,  fisheries,  social  security  coordination,  law  enforcement  and  judicial 
cooperation in criminal matters, thematic cooperation and participation in Union programmes. 
It  is  underpinned  by  provisions  ensuring  a  level  playing  field  and  sustainable  development 
(LPFS) as well as respect for fundamental rights. 

The  Trade  and  Cooperation  Agreement  was  signed  on  30  December  2020,  was  applied 
provisionally as of 1 January 2021 and entered into force on 1 May 2021. The Commission 
presented  a  second  annual  report  on  the  implementation  and  application  of  the  EU-United 
Kingdom Trade and Cooperation Agreement on 15 March 2023.87 The parties met in the joint 
bodies established by the TCA to supervise and facilitate its implementation. The Commission 
published the agendas and the minutes of the Trade Specialised Committee meetings and the 
Trade Partnership Committee88.   

The main benefits of the trade part of the agreement can be summarised as follows: 

Goods: 

•  Zero tariffs or quotas on goods, as long as the rules of origin are met. 
•  Traders  can  self-certify  the  origin  of  goods  and  enjoy  full  bilateral  cumulation,  but 

cumulation with products originating in third countries is not allowed. 

•  Mutual recognition of trusted traders programmes ensures lighter customs formalities 

and smoother flow of goods. 

•  Common definition of international standards and possibility to self-declare conformity 

of low-risk products to facilitate for producers to export to both markets. 

Services 

87 See second implementation report on the EU- United Kingdom-TCA; published on 15.3.2023 COM(2023) 
118 final; https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52023DC0118&from=EN  
88 https://ec.europa.eu/info/strategy/relations-non-eu-countries/relations-united-kingdom/eu-uk-trade-and-
cooperation-agreement/meetings-eu-uk-partnership-council-and-specialised-committees-under-trade-and-
cooperation-agreement_en 

105 

 
 
 
 
 
 
 
 
 
 
 
While the TCA framework for services is significantly below the freedoms of establishment or 
to  provide services  within the single market,  we  achieved ambitious outcome for the EU in 
trade in services and investment, for example: 

•  Comprehensive coverage: all modes of services supply and investment, in almost all 

economic sectors; 

•  Market  access  on  services  and  investment  beyond  the  level  achieved  in  other  trade 

agreements; 

•  Common regulatory provisions for a number of services sectors, such as for example 
delivery  services,  telecommunications  services,  international  maritime  transport 
services,  and  for  the  first  time,  a  regulatory  chapter  on  legal  services  resulting  in  a 
clearer presentation of our existing commitments; 
•  Best practice rules on licensing and qualifications; 
•  A  mechanism  to  agree  on  arrangements  for  the  mutual  recognition  of  professional 

qualifications; 

•  Rules  on  temporary  stay  of  persons  for  business  purposes,  in  line  with  the  highest 

standards of EU services agreements.  

Intellectual property 

There are commitments going beyond multilateral treaties in the area of IPR covering a wide 
range of various types of IPRs, including copyright and related rights, trade marks, designs, 
plant  varieties,  trade  secrets,  etc.  The  chapter  also  contains  strong  civil,  administrative  and 
border enforcement provisions. 

Public procurement 

The TCA incorporates the GPA rules and includes additional market access, beyond the GPA 
commitments, including privately-owned procuring entities with monopoly rights in all utility 
sectors, procuring entities operating gas and heat networks, as well as some additional services. 
EU-owned companies established in  the United  Kingdom  cannot  be discriminated, even for 
small  procurement  (national  treatment  below  the  GPA  threshold).  The  agreement  also 
incorporates additional public procurement standards (e.g. enhanced use of electronic means, 
acceptance of self-declarations, sustainable procurement and single portal for all tenders). 

Level playing field and sustainable development: 

Given their geographic proximity and close economic ties, as well as the scope and the depth 
of the TCA, the EU and the United Kingdom agreed to robust commitments to ensure a level 
playing field and to contribute to sustainable development. 

More specifically, these provisions mean that: 

•  The high levels of protection applicable at the end of the transitional period in the areas 
of labour and social standards, environment, and climate cannot be lowered in a manner 
affecting trade or investment. 

•  Committments  to  address  anti-competitive  practices  or  dicriminatory  and  abusive 

behaviour by state-owned enterprises . 

106 

 
 
 
 
•  Robust and comprehensive rules prevent distortions created by subsidies.  
•  Specific standards and rules and the joint political  declaration in the area of taxation 

counter tax avoidance and harmful tax regimes and practices. 

•  A wide-ranging set of commitments building on the EU's most ambitious precedents 

ensure that trade supports sustainable development. 

The enforcement of the level playing field provisions in the TCA is based on the following 
mechanisms mainly: 

•  Effective implementation domestically, including  regarding subsidies, the creation of 
an  independent  authority  and  the  control  of  their  legality  by  courts;  as  well  as 
appropriate administrative and judicial proceedings in the areas related to labour and 
social standards, environment and climate;  

•  Appropriate and effective governance and dispute settlement mechanisms for solving 
disputes  between  the  EU  and  the  United  Kingdom,  including  through  the  horizontal 
dispute settlement mechanism or tailored panel of experts; 

•  Unilateral  remedial  measures  to  react  quickly  to  trade/investment  distoring  subsidies 
and the possibility to apply unilateral rebalancing measures in the  case of significant 
divergences in the areas of labour and social, environment or climate protection, or of 
subsidy control. 

2. 

MAIN IMPLEMENTATION ISSUES 

2.1   Market access: Progress and outstanding issues 

The consequences of the United Kingdom’s decision to leave the EU Customs Union and Single 
Market inevitably created barriers to trade that did not exist before. 

In  2022,  the  Commission  continued  to  monitor  the  implementation  of  the  United 
Kingdom’s  commitments  across  the  entire  agreement,  with  a  particular  focus  on  matters 
related  to  level  playing  field  and  sustainable  development,  notably  as  regards  United 
Kingdom’s  new  subsidy  control  framework,  developments  related  to  the  environment, 
including  the  chemical  sector,  labour  enforcement  in  the  United  Kingdom,  the  United 
Kingdom’s Emission Trade Scheme, as well as freeports. 

Among others, the Commission also continued to monitor the implementation by the  United 
Kingdom of the agreement reached in July 2022 in the area of subsidies supporting renewable 
energy  (in  particular,  offshore  wind  energy)  under  the  United  Kingdom’s  ‘Contracts  for 
Difference’ scheme.89         

WTO case against the United Kingdom: Renewable energy (DS 612) 

89   https://www.gov.uk/government/publications/contracts-for-difference/contract-for-difference 

107 

 
 
 
 
 
 
Step  1:  The  Commission  raised  this  issue  in  the  meetings  of  the  Trade  Specialised 
Committee on Goods and the Trade Specialised Committee on Level Playing Field for Open 
and  Fair  Competition  and  Sustainable  Development,  as  well  as  the  Trade  Partnership 
Committee.  The  Commission  requested  the  United  Kingdom  to  remove  information  on 
local content from the questionnaire and adapt the scoring of the eligibility criteria, as well 
as to issue additional guidance to confirm that the question on the United Kingdom content 
has been removed and would not be scored in any way, including in the implementation 
stage, effectively removing any role of location.  

Step 2: Given that the United Kingdom maintained the local content criterion, which the 
EU considered it to be in breach of WTO non-discrimination (National Treatment principle) 
rules, the EU decided to bring the matter to the WTO and on 28 March 2022 requested the 
consultations with the United Kingdom.  

As a result of the WTO consultations, the United Kingdom clarified that, both for the current 
and future allocation rounds, United Kingdom’s content does not play any role whatsoever 
in the allocation of subsidies and that Contracts for Difference beneficiaries do not need to 
achieve any particular level of United Kingdom’s content to receive payments. Any request 
for information on United Kingdom’s content remains for information purposes only.  

This agreement was reached with the United Kingdom on 1 July 2022 and was reflected in 
an  exchange  of 
level  between  Executive  Vice  President 
Valdis Dombrovskis and the United Kingdom’s Secretary of State for International Trade 
Anne-Marie Trevelyan. The United Kingdom also published additional guidance to ensure 
that this is fully understood by the industry.90    

letters  at  ministerial 

In  the  area  of  services,  investment  and  digital  trade  DG  TRADE  raised  at  the  Trade 
specialised committee of 22 October 202391 the question of the United Kingdom’s sponsorship 
scheme, which the EU considers problematic for mode 4 placement. In concrete terms, the EU 
expressed its concern that the United Kingdom’s sponsorship system is a strong dysincentive 
for UK companies when considering the hiring of EU services suppliers to provide contracted 
services  in  the  United  Kingdom.  The  United  Kingdom  explained  that  in  their  view  the 
sponsorship system was not covered by the TCA’s services’ commitments in Mode 4 due to the 
carve  out    determined  by  Article  123  (4).  The  EU  argued  that,  while  the  parties  may  take 
measures to regulate the entry of natural persons into, or their temporary stay in its territory, 
including measures to protect the integrity of its borders and to ensure the orderly movement 
of natural persons across them, this should be done in  a way that does not nullify or impair the 
benefits that accrue to EU services providers in a manner that is not consistent with the non-
discrimination  obligations  in  the  Agreement.  Therefore,  the  EU  considers  the  United 
Kingdom’s sponsorship scheme as being subject to the disciplines of the TCA.  

90 https://policy.trade.ec.europa.eu/news/eu-and-uk-agree-way-forward-wto-dispute-concerning-uks-green-
energy-subsidy-scheme-2022-07-01_en  
91 https://commission.europa.eu/publications/second-meeting-trade-specialised-committee-services-investment-
and-digital-trade-1_en  

108 

 
 
 
 
Both the United Kingdom and the EU fulfilled their commitment established in Annex 21 of 
the  TCA  to  remove  any  charge,  fee  or  tax,  imposed  on  intra-corporate  transferees  (the  so-
called‘Skills  Charge’).  The  United  Kingdom  amended  its  Immigration  Skills  Charge 
Regulations, which took effect on 1 January 2023 and ensures that the skills charge does no 
longer apply to intra-corporate transferees from the EU. Intra-corporate transferees from non-
EU countries must thus still pay the skills charge. 92 

In the area of trade in goods, to date, there are only a few areas where implementation issues 
have been reported by stakeholders. 

One area of relevance and potential concern in this regard concerns customs procedures and 
checks of agri-food products (SPS measures): 

•  When it comes to EU exports to  the United Kingdom, the latter has on several occasions 
delayed  the  implemenation  of  certain  import  procedures  and  checks,  in  particular 
concerning products subject to SPS controls.93 Given these numerous postponements,  
it still remains to be seen when the new Target Operating Mode (TOM) will actually 
come into force (NB: the United Kingdom has announced a phased-in approach of the 
new  model,  starting  end  of  January  2024  in  their  final  version  of  the  Border  target 
operating model published on 30 August 202394)). This new model is meant to set out 
the United Kingdom  regime of post-Brexit border controls  for imports from  the EU, 
now targeting the end of January 2024 as the revised introduction date for the United 
Kingdom’s new controls regime. 

•  Considering that the introduction of any further controls and checks at the border may 
require  the  adaptation  of  traders’  practices,  it  is  important  for  traders  and  Member 
States’ authorities to be informed well in advance of any new regimes before they will 
be applied, so that they might anticipate any changes to be factored into their internal 
processes. 

Another area where stakeholders have expressed concerns is the United Kingdom conformity 
assessment regime, in particular conformity assessment certificates and labelling requirements 
in the United Kingdom. These import requirements will affect a wide range of products being 
produced in the EU and exported to the United Kingdom.  A third extension of the deadline for 
its introduction was announced in November 2022.95 This means that the United Kingdom will 
continue to accept products meeting EU requirements until 31 December 2024, with respective 
EU  certificates  and  CE  marking  remaining  valid  until  the  end  of  2027,  including  currently 
applicable  labelling  provisions,  importer  information  and  responsible  persons’  information. 

92 On the EU’s side, France introduced amendments to their legislation to ensure that the EU as a whole would 
comply with the commitment. The French amendments to their skills charge apply both to intra-corporate 
transferees from the United Kingdom and from other non-EU countries.  
93 https://www.gov.uk/government/news/new-approach-to-import-controls-to-help-ease-cost-of-living  
94 https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023 
95 https://questions-statements.parliament.uk/written-statements/detail/2022-11-14/hcws366    

109 

 
 
 
 
 
 
 
Separate  announcements  concerning  medical  devices,  aircrafts,  rail  products  and  maritime 
equipment are expected. 

The  EU  DAG  for  the  EU-United  Kingdom  TCA  is  providing  advice  on  the  whole  of  the 
agreement. The DAG is also being consulted on inputs for the Trade Specialised committees 
Agenda. It  met five times in 2022 and twice in the first half of 2023 (March and June) were 
they discussed, inter alia, issues relating to the implementation of the level playing field chapter 
of the EU-United Kingdom TCA.  

2.2   Level  playing  field  and  Trade  and  Sustainable  Development:  Progress  and 

outstanding issues 

The second meeting of the Trade Specialised Committee on Level Playing Field for Open 
and  Fair  Competition  and  Sustainable  Development  took  place  on  12  October  2022, 
discussing inter alia issues related to labour and social standards, environment and climate and 
other instruments for trade and sustainable development. This meeting was proceeded by the 
first civil society forum on 4 October 2022.  

The EU DAG for the EU-United Kingdom TCA has an “issues tracker” where they 
formulate questions and recommendations to the Commission on issues allegedly relating to 
the implementation of the TCA. In this context, the EU DAG drew the attention of the 
Commission to a non-transgression compliance issue, which the Commission raised in 
discussions with the United Kingdom in the relevant institutional bodies, notably a reduction 
in the labour inspections in the United Kingdom related to the commitment by the latter to 
maintain an effective system of domestic enforcement. This point was raised in the Trade 
Specialised Committee on Level Playing Field for Open and Fair Competition and 
Sustainable Development based on the EU DAG’s concerns. 

110 

 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
SWITZERLAND TRADE AGREEMENT 

1. 

THE AGREEMENTS 

The EU-Swiss trade relations are among the deepest worldwide outside the context of a customs 
union/internal market. For Switzerland, the EU is by far the most important trading partner. For 
the EU, Switzerland is the fourth overall trading partner, number three for services. 

The cornerstone of EU-Swiss trade relations is the EU-Switzerland Free Trade Agreement 
that  entered  into  force  on  1  January  197396  (hereinafter,  the  “FTA”),  the  oldest  trade 
agreements signed by the EU.  

Given that the Principality of Liechtenstein97  and Switzerland constitute a Customs Union 
and the fact that the Principality of Liechtenstein expressed the desire for all the provisions of 
the EU-Swiss Free Trade Agreement to apply to it, an additional agreement98 was adopted to 
extend the full validity of the EU-Swiss FTA to the Principality of Liechtenstein.    

The FTA  concerns goods but lacks provisions on services, investment, intellectual property 
rights  (IPR),  government  procurement  or  social  and  environmental  values.  No  dispute 
settlement  mechanism  is  foreseen  beyond  the  regular  annual  dialogue  in  Joint  Committee 
meetings. Since 1999, the EU and Switzerland concluded a number of additional agreements 
which are relevant from a trade perspective:  

− 

− 

− 

− 

− 

The  Free  Movement  of  Persons  Agreement99  allows  for  the  provision  of  services, 
limited in time.  
The Mutual Recognition Agreement in relation to  conformity assessment100 ensures 
that, in twenty regulated sectors, the conformity assessment provided by one party is 
recognised by the other, which facilitates trade between the parties.   
The Public Procurement Agreement101 builds on the WTO Government Procurement 
Agreement. 
The  Agreement  on  trade  in  agricultural  products102  includes  sanitary  and 
phytosanitary  rules,  as  well  as  tariffs  and  tariff  rate  quotas  for  agricultural  products, 
except for cheese that is fully liberalised.  
A protocol on processed agricultural products (protocol 2), which was added to the 
Free  Trade  Agreement  in  2004.  It  includes  a  mechanism  whereby  in  practice 

96 https://eur-lex.europa.eu/legal-content/en/ALL/?uri=OJ:L:1972:300:TOC  
97 Liechtenstein’s trade relationship with the EU is further enhanced through its EEA membership and access to 
the EU single market.    
98 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A21972A0722%2804%29  
99 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A22002A0430%2801%29  
100 http://trade.ec.europa.eu/doclib/docs/2013/december/tradoc_152006.pdf  
101 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:22002A0430(06)  
102 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2002.114.01.0132.01.ENG 

111 

 
 
 
 
 
Switzerland receives compensation for the very  significant  price differential  of basic 
agricultural  products  -  which  serve  as  inputs  to  processed  agricultural  products  - 
between the EU and Switzerland. 

− 

The Agreement on Customs facilitation and security (as modified in 2021)103 

In the last two decades, there was no major evolution to this rather complex setting. The gap 
is growing between the current legal arrangements governing trade relations between the EU 
and  Switzerland,  the  EU’s  fourth  largest  trading  partner  world-wide  and  the  standards 
governing  modern  and  comprehensive  trade  agreements  concluded  by  the  EU  and 
Switzerland/EFTA, respectively. A modernisation of the FTA is therefore needed to unlock the 
potential for further bilateral trade. 

Between  2014  and  2018,  both  parties  negotiated  an  Institutional  Framework  Agreement 
(IFA)  to  streamline  the  operation  of  5  of  the  7  existing  bilateral  agreements  between 
Switzerland  and  the  EU,  covering:  the  Agreement  on  the  Free  Movement  of  Persons;  the 
Agreement on Air Transport; the Overland Transport Agreement; the Agreement on Trade in 
Agricultural Products and the Mutual Recognition Agreement. 

However, on 26 May 2021, the Federal Council took the decision to unilaterally terminate 
the negotiations. 

In  February  2022,  the  Swiss  Federal  Council  announced  its  new  approach  for  negotiations 
with  the EU that seeks to  address  the pending  issues concerning overall  EU-Swiss  relations 
based on a broad package of measures. Since then, the European Commission has engaged with 
the Swiss side in exploratory discussions to gain a better understanding of the Federal Council’s 
proposals. In the EU’s view, Switzerland needs to show unambiguous political will to engage 
with the EU on the open structural issues within a credible timetable. These issues include:  

the dynamic alignment with EU law;  

• 
•  a level playing field between Switzerland and the EU;  
•  a functioning dispute settlement mechanism;  
•  Switzerland’s regular financial contribution to the EU cohesion policy for the future. 

The systemic solution the EU and Switzerland would agree upon now would also need to apply 
to any additional agreement they would conclude in the future. Finally, the EU considers that 
agreements should remain interconnected in case of non-compliance. 

The EU side reiterated that without a deal, there would be no status quo. This means that there 
cannot be any new agreements providing for Swiss access to the EU Single market, and that 
any  update  of  the  existing  agreements  will  be  decided  on  a  case-by-case  basis,  which  will 
inevitably lead to an erosion of Swiss market access over time. For example, the EU has always 
been clear that an update of the Mutual Recognition Agreement, or its annexes, can only be 

103 EUR-Lex - 02009A0731(01)-20210315 - EN - EUR-Lex (europa.eu)  

112 

 
 
 
 
considered if the EU and Switzerland agree on solutions to the structural issues that currently 
hamper the relationship.104  

The  EU  and  Switzerland  are  applying  the  PEM  Convention  since  01.02.2016  and  the 
Transitional rules as of 01.09.2021. 

The EU-Switzerland Customs Security Agreement of 2009 was amended on 12 March 2021. 
The  agreement  was  updated  to  maintain  a  high  level  of  security  and  safety  at  the  external 
borders  and  to  keep  the  equivalence  of  the  customs  security  measures  in  trade  with  third 
countries. The amended agreement reflect key developments of the EU legislation relevant to 
the  risk  management  and  security,  mainly  as  regards  the  deployment  of  the  Import  Control 
System 2 (ICS2) of the EU. ICS2 is an essential EU instrument for managing entry security and 
safety border controls in the customs field, supporting the EU’s customs pre-arrival security 
and safety programme. It enables Member States’ Customs to better assess risks on the basis of 
common  information  and  thus  better  protect  the  EU  and  its  citizens  against  hazardous  or 
dangerous imports and from illegal trade. 

2. 

MAIN IMPLEMENTATION ISSUES  

The  69th  EU-Switzerland  Joint  Committee  under  the  FTA  took  place  in  Zurich  on  4 
November  2022.    Both  sides  discussed  issues  related  to  inter  alia  market  access,  processed 
agricultural products, exchange of views on relations with main partners, as well as continued 
cooperation in the fields of trade statistics, preference utilisation rates of trade agreements and 
customs. Against the background of the FTA’s 50th birthday in 2022 the EU reiterated its call 
on Switzerland to start the exercise of identification of possible areas for modernisation.    

In 2022, some progress was made on implementation, notably on adapting the reference prices 
of basic agricultural products needed in the context of the price compensation mechanism for 
processed agricultural products (protocol 2 to the FTA):  

•  The last adaptation of Protocol 2 entered into force on 1 October 2022. Both parties also 
welcomed the solution found for defining the reference prices for potatoes in the EU 
and Switzerland.   

•  They also confirmed to  proceed with the exchange of prices for the reference period 
covering September 2021 to August 2022, and to discuss the next adaption of Protocol 
2 based on updated prices.  Both parties welcomed the progress in technical discussions 
on the methodology related to Protocol 2 to make its implementation more efficient.  

104  https://ec.europa.eu/health/latest-updates/notice-stakeholders-status-eu-switzerland-mutual-recognition-
agreement-mra-medical-devices-2021-05-26_en  

113 

 
 
 
 
 
 
 
 
 
 
 
 
In 2022, the EU and Switzerland continued their exchange at expert level on FTA preference 
utilisation, notably on rules of origin, following the conclusion of a study105 by the Swiss 
State Secretariat for Economic Affairs (SECO), which aims to estimate the economic potential 
from the creation of a cumulation zone between common free trade partners. 

By  contrast,  a  number  of  implementation  issues  regarding  public  procurement,  the 
agricultural sector, the services sector and state aid remain unsolved: 

• 

In the area of public procurement:  

o  EU Member States complained about de facto discrimination against European 
bidders  vis-à-vis  domestic  companies  since  the  revision  in  June  2019  of  the 
Federal Law on Public Procurement (LMP) and the corresponding ordinances, 
which introduces the obligation for the contracting authority to examine tenders 
on the basis of economic, ecological and socially sustainable award criteria and 
give  priority  to  the  "most  advantageous"  tender  instead  of  the  "most 
economically advantageous", contrary to what was the case before. EU business 
representatives  acknowledge  the  importance  of  ecological  and  socially 
sustainable award criteria noting that these should not be  used as a pretext to 
unjustifiably discriminate against European market players.  

o  The revised Federal Act for Public Procurement also introduced a price level 
clause (“Preisniveauklausel”) to take into account the different price levels in 
the countries in which the service is provided. A price level calculator was set 
up to support the new criteria.  Five cantons have included such provision into 
cantonal law. Even though this clause has so far not been used, the EU raised 
the issue during the annual joint committee meeting under the Public 
Procurement Agreement on 5 July 2022 and on 29 June 2023. The Swiss 
delegation stated that the application of the criterion will be in compliance with 
the international commitments of Switzerland and that it is expected that this 
criterion will not be used for procurement covered under the GPA and the 
Public Procurement Agreement. The issues need to be followed-up at federal 
and cantonal level. 

• 

In the area of agriculture: 

o  One  of  the  market  access  barriers  in  agriculture  for  EU  companies  is  the 
certification of organic food in Switzerland. There exists only one certification 
body for organic food in Switzerland, which is currently the private organization 
Biosuisse, whose label (the "Biosuisse Bud") is highly recognized by consumers. 

105 The study  and the Report on the results of the company survey on the use of free trade agreements by Swiss 
exporters can be found at: 
https://www.seco.admin.ch/seco/en/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaft
sbeziehungen/Freihandelsabkommen/nutzung_freihandelsabkommen.html  

114 

 
 
 
 
 
 
 
 
However,  the  awarding  of  the  Biosuisse  label  lacks  transparency  in  many 
respects,  so  that,  even  when  equivalent,  few  EU  products  meet  the  required 
conditions to acquire the label. In addition, the strict content requirements of the 
Biosuisse label for food products mean that suppliers of organic raw materials 
from the EU are indirectly disadvantaged compared to Swiss suppliers.   

o  The EU addressed these issues at the last Joint Committee meeting under the 
Agreement on Trade in Agricultural Products on 17 November 2022, however 
Switzerland stated that it has no intention to amend its legislation concerning the 
certification of organic food. 

•  Market access in the services sector also remains a major issue: 

o  The so-called “flanking measures” that the Swiss put in place to accompany 
the  implementation  of  the  EU-Switzerland  Free  Movement  of  Persons 
Agreement106  are  a  long-standing  trade  issue,  as  the  EU  considers  them 
imposes  
burdensome  and  disproportionate.  For  example,  Switzerland 
obligations on EU natural persons, who want to supply a service in Switzerland, 
including an 8-days pre-announcement obligation, a deposit requirement and an 
obligation to contribute to control costs. 
 Protocol 1 to the draft IFA had included a number of specific solutions to some 
of the issues raised by the EU in relation to “flanking measures”. However, with 
the  unilateral  termination  of  the  negotiations  of  the  IFA  by  the  Swiss 
government,  the  solutions  enshrined  in  Protocol  1  have  become  obsolete. 
Solutions are being discussed in the exploratory talks.  

o 

•  The lack of a level playing field as regards state aid persists: 

o  The FTA does contain state aid rules but these are not respected by Switzerland. 
The  other  existing  agreements  between  the  EU  and  Switzerland  (with  the 
exception  of  the  Air  Transport  Agreement)  do  not  include  effective  state  aid 
rules.  

o  Possible solutions  identified  in  the  context of the EU-Swiss  IFA negotiations 
included State aid rules for the future market access agreements between the EU 
and  Switzerland  and  the  establishment  of  a  dispute  settlement  mechanism.  
Following the termination of the IFA negotations by the Swiss side, solutions 
are  being  discussed  in  the  context  of  the  above-mentioned  exploratory  talks 
between the EU and Switzerland.  

106 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A22002A0430%2801%29 

115 

 
 
 
 
 
 
 
 
  
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
NORWAY TRADE AGREEMENT 

1. 

THE AGREEMENT 

The Free Trade Agreement (FTA) between Norway and the EU entered into force on 1 July 
1973. It applies to goods only and is one of the oldest trade agreements signed by the EU.  

Although  still  in  force,  it  has  been  superseded  in  many  respects  by  the  Agreement  on  the 
European  Economic  Area  (EEA),  which  entered  into  force  on  1  January  1994  and  brings 
together the EU Member States and the three EEA EFTA States — Iceland, Liechtenstein and 
Norway — in the internal market. The EEA agreement ensures the free movement of goods, 
services, capital and persons between Norway and the EU and is the backbone of EU-Norway 
cooperation. Members of the EEA fully apply the whole acquis communautaire related to the 
"four  freedoms"  through  dynamic  incorporation  of  the  relevant  legislative  acts  into  the 
Protocols and Annexes of the EEA Agreement via Joint Committee Decisions. 

The  EEA  Agreement  does  not  cover  the  common  agricultural  and  fisheries  policies,  which 
means that agricultural and fisheries products are not in free circulation between the EU and 
Norway. Preferential  trade in  agricultural  products  between the EU and  Norway is  ruled by 
Article 19 of the EEA Agreement and provides duty free access for 36 tariff lines and a number 
of tariff rate quotas. Processed agricultural products are covered by a dedicated protocol to the 
EEA agreement but are also not in free circulation. Negotiations on a limited number of tariff-
rate quotas for exports of fisheries products from Norway to the EU started in summer 2022 in 
conjunction  with  negotiations  on  Norway’s  financial  contribution  to  economic  and  social 
cohesion in the EEA (“financial mechanism”). This reflects the practice of past cycles of the 
financial mechanism.  

The EEA Agreement encloses the rules of the PEM Convention since 19.5.2016. The EEA 
Agreement was updated with the application of the Transitional rules as of 01.09.2021 

The EU-Norway Customs Security Agreement of 2009 ensure that Norway applies the same 
security and safety measures that are in force in the EU. Hence, trade between these countries 
and the EU are exempt from the requirement to  lodge entry and exit summary declarations. 
Norway also applies equivalent standards for the Authorised Economic Operators, including 
security and safety standards and facilitation measures in respect of security-related customs 
controls. On 15 March 2021, the agreement was amended to maintain a high level of security 
and safety at the external borders and to keep the equivalence of the customs security measures 
in  trade  with  third  countries.  The  amended  agreement  reflects  key  developments  of  the  EU 
legislation relevant to the risk management and security, mainly as regards the deployment of 
the Import Control System 2 (ICS2) of the EU, and thus better protects the EU and its citizens 
against hazardous or dangerous imports and from illegal trade. 

116 

 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES 

The  main  implementation  issues  continue  to  be processed  agricultural  products  (PAPs)  and 
geographical indications (GIs): EU exports of processed agricultural products107 remain 
below  their  potential  due  to  high  customs  tariffs  and  this  has  been  a  long-standing  trade 
barrier.  

2022  has  not  seen  any  progress  on  liberalisation  of  trade  in  processed  agricultural  products 
within the framework of Article 2 (2) and Article 6 of Protocol 3 to the EEA Agreement, and 
therefore high customs tariffs on those products remain the main long standing trade barrier. 
Despite  Norway’s  commitment  in  the  2019  Joint  working  Group  on  processed  agricultural 
products  to  consult  with  relevant  authorities on the possibility to  resume  these negotiations, 
there has been no positive development in this area. 

Norway has repeatedly expressed its wish to keep Protocol 3 unchanged and has been unwilling 
to  make  any  commitments  towards  further  liberalization  in  processed  agricultural  products 
considering the perceived positive results of the Protocol. 

Negotiations  on  Geographical  Indications  (GIs)  launched  in  2013  between  the  EU  and 
Norway still remain suspended (since April 2016). The Council of the European Union in its 
Conclusions of December 2018 called on Norway to “resume the negotiations on the protection 
of geographical indications, which is an important element of international trade in agricultural 
products and foodstuffs”.  

107 Trade in processed agricultural products is regulated by Protocol 3 to the EEA agreement and to a certain 
extent by Protocol 2 to the 1973 FTA. Protocol 3 of the EEA foresees the possibility to levy customs duties 
based on the cost of the basic agricultural products in the EU and in Norway. 

117 

 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
ICELAND TRADE AGREEMENT 

1. 

THE AGREEMENT 

The Free Trade Agreement (FTA) between Iceland and the EU entered into force on 1 April 
1973. It applies to goods only and is one of the oldest trade agreements signed by the EU.  

Although  still  in  force,  it  has  been  superseded  in  many  respects  by  the  Agreement  on  the 
European  Economic  Area  (EEA),  which  entered  into  force  on  1  January  1994  and  brings 
together the EU Member States and the three EEA EFTA States — Iceland, Liechtenstein and 
Norway — in the internal market. The EEA agreement ensures the free movement of goods, 
services, capital and persons between Iceland and the EU and is the backbone of EU-Iceland 
cooperation. Members of the EEA fully apply the whole acquis communautaire related to the 
"four  freedoms"  through  dynamic  incorporation  of  the  relevant  legislative  acts  into  the 
Protocols and Annexes of the EEA Agreement via Joint Committee Decisions. 

The  EEA  Agreement  does  not  cover  the  common  agricultural  and  fisheries  policies,  which 
means that agricultural and fisheries products are not in free circulation between the EU and 
Iceland.  Preferential  trade  in  agricultural  products  between  the  EU  and  Iceland  is  ruled  by 
bilateral  agreements  taken  within  the  framework  of  Article  19  of  the  EEA  Agreement. 
Processed agricultural products are covered by protocol 3 to the EEA agreement but are also 
not  in  free  circulation.  Negotiations  on  a  limited  number  of  tariff-rate  quotas  for  exports  of 
fisheries products  from  Iceland to  the EU have started in  summer 2022 in conjunction  with 
negotiations on Icelands’s financial contribution to economic and social cohesion in the EEA 
(“financial mechanism”). This reflects the practice of past cycles of the financial mechanism.  

The EU and Iceland are applying the PEM Convention since 01.05.2015 and the Transitional 
rules as of 01.09.2021. 

2. 

MAIN IMPLEMENTATION ISSUES 

The main implementation issue is processed agricultural products (PAPs) and high customs 
tariffs.  

2022 has not seen any progress on liberalisation of trade in processed agricultural products 
within the framework of Article 2 (2) and Article 6 of Protocol 3 to the EEA Agreement, and 
therefore high customs tariffs on those products remain the main long standing trade barrier.  

118 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE EU-
TURKEY CUSTOMS UNION AND TRADE AGREEMENTS 

1. 

THE AGREEMENT  

The contractual relations between the EU and Türkiye date back to 1963 when the European 
Economic  Community  (i.e.  the  EU’s  predecessor)  and  Türkiye  signed  an  Association 
Agreement (the ‘Ankara Agreement’), in which both parties agreed to progressively establish 
a  Customs  Union  over  a  period  of  several  years.  An  Additional  Protocol  was  signed  in 
November 1970, setting out a timetable for the abolition of tariffs and quotas on industrial goods 
circulating  between  the  parties.  The  final  phase  of  the  Customs  Union  was  completed  on  1 
January 1996 in the shape of the EU-Türkiye Association Council Decision No 1/95, which is 
currently in force.108 

The Customs Union ensures the free movement of all industrial goods and certain processed 
agricultural products between the EU and Türkiye. It also requires Türkiye to align with the 
EU’s customs tariffs and rules, commercial policy, competition policy and intellectual property 
rights, as well as with the EU’s technical legislation related to the scope of the Customs Union. 
The  Customs  Union  with  Türkiye  therefore  goes  well  beyond  the  traditional  free  trade 
agreements which the EU has concluded with other third countries.  

In  addition  to  the  Customs  Union,  the  EU  and  Türkiye  concluded  two  further  bilateral 
preferential  trade  agreements:  The  Agreement  between  the  European  Coal  and  Steel 
Community (ECSC) and Türkiye on trade in products covered by the Treaty establishing the 
ECSC established a Free trade agreement for coal, iron and steel products in 1996, along 
with relevant competition rules. Association Council Decision No 1/98 (amended by Decision 
No  2/2006)  provides  for  preferential  concessions  on  trade  in  certain  agricultural  and 
fishery products. 

On 21 December 2016, the European Commission adopted a Recommendation for a Council 
Decision  authorising  the  opening  of  negotiations  with  Türkiye  on  an  Agreement  on  the 
extension  of  the  scope  of  the  bilateral  preferential  trade  relationship  and  on  the 
modernisation of the Customs Union. Discussions were held in the Council in 2017.  

The  European  Council  on  25  June  2021109  took  note  of  the  start  of  work  at  technical  level 
towards a mandate for the modernisation of the EU-Türkiye Customs Union and recalls the 
need to address current difficulties in the implementation of the Customs Union, ensuring its 
effective  application  to  all  Member  States.  Such  a  mandate  may  be  adopted  by  the  Council 
subject to additional guidance by the European Council. 

108 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:21996D0213(01):EN:HTML  
109 https://www.consilium.europa.eu/media/50763/2425-06-21-euco-conclusions-en.pdf 

119 

 
 
 
 
 
The EU and Türkiye agreed at the technical level to update the agreements on coal and steal 
and on agricultural products by introducing the Transitional rules as applicable in parallel with 
the rules of the PEM Convention. 

Türkiye  will  support  the  revised  Convention,  by  voting  in  favour  during  the  PEM  Joint 
Committee meeting in November 2023. 

The  adoption  of  the  revised  PEM  Convention  will  have  repercutions  on  the  EU  –  Türkiye 
Customs Union, which will require a technical update to reflect the changes introduced by the 
revised PEM Convention. 

2. 

MAIN IMPLEMENTATION ISSUES  

As  regards  the  implementation  of  the  existing  bilateral  preferential  trade  framework,  some 
limited progress was achieved in 2022 on outstanding issues:  

• 

In 2011, Türkiye started to introduce tariff increases or so-called ‘additional duties’ for 
certain products of third country origin. Since then, Türkiye has expanded the scope of 
these  additional  duties  to  an  increasing  number  of  products,  despite  Türkiye’  s 
obligation under the EU-Turkey CU to follow EU import tariffs vis-à-vis third countries. 
In February 2022, Türkiye took a positive step and removed around 500 tariff lines out 
of more than 4000 tariff lines to which it applies additional duties.  

•  A concurrent problem was the requirement for a proof of origin even when exporting 
goods in free circulation to Türkiye with an A.TR movement certificate. In May 2019, 
Türkiye introduced a general requirement for a certificate of origin for goods subject to 
additional duties in its customs implementing regulation. After many EU interventions, 
Türkiye removed these requirements and in May 2022, it sent a letter to the Commission 
that only 37 certificates of origin documents were requested by Turkish customs out of 
almost 4 million units of goods coming from the EU in 2021. The Commission shared 
this letter with the industry associations concerned. 

A number of important market access barriers are being raised with  Türkiye regularly in 
bilateral high level meetings with Türkiye and in different fora, most recently at the Customs 
Union Joint Committee in October 2022 and in the context of the bilateral EU-Türkiye Trade 
Barriers Group in March and April 2022. These barriers hamper the proper implementation 
of  the  Customs  Union,  among  them  first  and  foremost  restrictions  Turkish  authorities  have 
imposed  on  imported  pharmaceutical  products,  through  de  facto  mandatory  localisation 
requirements combined with import bans for equivalents to localised products.  

120 

 
 
 
 
 
 
 
 
 
WTO case against Türkiye on pharmaceutical products (DS583) 

Step 1: In 2019 the EU initiated WTO dispute settlement against Türkiye: the panel was 
composed on 17 March 2020. 

Step 2: The Panel’s ruling of 28 April 2022 upheld all of the EU’s claims against Türkiye. 
In  particular,  the  Panel  ruled  that  Türkiye  cannot  require  foreign  producers  of 
pharmaceutical  products  to  move  their  production  to  the  country  in  order  for  those 
pharmaceuticals to be eligible for reimbursement by social security schemes in Türkiye.  

Step  3:  Türkiye  appealed  the  panel’s  ruling  on  25  April  2022.  The  appeal  arbitration 
proceedings pursuant to Article 25 of the DSU were based on an ad hoc appeal arbitration 
agreement between the EU and Türkiye.  

Step 4: In July 2022, the Award of Arbitrators was made public and marked a clear win for 
the EU. The appeal arbitrators confirmed the Panel’s ruling and that Türkiye must remove 
its discriminatory practices (localisation and prioritisation measures) in the pharmaceutical 
sector. 

Step 5: In August 2022, Türkiye stated its intention to implement the recommendations of 
the Award of the Arbitrators and requested a reasonable period of time to do so. In January 
2023,  the  EU  and  Türkiye  agreed  that  the  reasonable  period  of  time  for  Türkiye  to 
implement the recommendations of the Award of the Arbitrators expired on 25 April 2023. 
The EU is monitoring steps taken by Türkiye to ensure compliance. 

In the pharmaceutical sector, in addition to localisation requirements, other barriers continue 
to  affect  trade, such as  in particular the application by Türkiye of artificial  exchange rates 
instead of actual exchange rates for pharmaceutical products.  

A number of trade barriers remain that affect EU trade with Turkiye, in particular restrictions 
on exports and burdensome requirements on imports. 

 Export restrictions continue to hamper EU-Turkiye trade and some have been extended in 
scope recently: 

•  Turkish  authorities  continue  to  impose  export  taxes  on  hides,  skins  and  wet-blue 

leathers and they apply an export registration scheme on copper scrap. 

• 

 Additional export restrictions were put in place, in particular on: 1) timber (already in 
2018), 2) cotton and its scraps  (added in  2021),  3) oriented strand board and certain 
wood panels (added in 2021), 4) fertilizers (added in 2021), 5) ammonium and sulfuric 
acid (added in 2021), 6) plywood (added in 2022), 7) kaolin, other clays and feldspar 
(added in 2022) and 8) tomato paste (added in 2022).  

121 

 
 
 
 
 
 
 
Restrictions of imports imposed by Turkiye include the following:  

•  Surveillance measures on imports of a large number of products if their unit value is 
below  a  certain  threshold.  The  surveillance  requires  submission  of  a  surveillance 
document which, in practice, is not possible to obtain and importers are de facto forced 
to declare artificial customs value, resulting in a higher level of irrecoverable indirect 
tax amount paid. Scope of the measure has been constantly extended to cover additional 
products. 

• 

In the sector of textile and textile materials, burdensome registration obligations for 
imports continue to negatively affect European suppliers, as they are required to submit 
excessive documentation including confidential business information.  

•  More  recently,  EU  exporters  in  this  sector  are  facing  additional  administrative  and 
financial burdens related to the export to Türkiye of certain textile products that are 
subject to anti-dumping (AD) measures implemented by Türkiye as well as to additional 
requirements  related  to  the  ongoing  anti-circumventions  investigations  of  these  AD 
measures. These include the submission of certificates of origin, the sistematic request 
for  post-verification  of  these  certificates  and/or  of  the  A.TR  movement  certificates 
accompanying the goods and the provision of  a financial guarantee pending the result 
of  the  post-verification,  in  contradiction  with  the  spirit  and  the  provisions  of  the 
Customs Union.  

Furthermore, Türkiye is  systematically refusing to open the annual quotas for  beef and live 
cattle foreseen under the bilateral agreement and has refused to issue licenses to importers.  

The  non-discriminatory  implementation  of  the  Additional  Protocol  to  the  Association 
Agreement towards all Member States including the Republic of Cyprus also remains a critical 
demand. 110 

110 See statement of the members of the European Council of 25 March, stressing the need to implement the 
current Customs Union to all Member States: https://www.consilium.europa.eu/media/48976/250321-vtc-
euco-statement-en.pdf  

122 

 
 
 
 
 
 
 
 
 
 
PART IV: AFRICAN, CARIBBEAN AND PACIFIC COUNTRIES  

123 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND 
GHANA 

1. 

THE AGREEMENT  

Pending  an  Economic  Partnership  Agreement  (EPA)  with  the  West  African  region,  Ghana 
concluded a stepping stone EPA or interim EPA (iEPA) with the EU in December 2007.111 
The EPA was signed on 28 July 2016 and entered into provisional application on 15 December 
2016. The EU-Ghana interim EPA will be replaced by the regional EU-West Africa EPA once 
the latter enters into force.112 By the end of 2020, all EU Member States and 15 out of 16 West 
African countries have signed the regional EPA; Nigeria’s signature is still outstanding. 

Ghana’s  HS2017  updated  market  access  offer  foresees  that  78%  of  tariff  lines  will  be 
progressively liberalised over the period 2020-2029.  

The  Parties  recently  revamped  efforts  towards  EPA  implementation,  following  political 
impetus arising from the meeting between Executive Vice President Mr. Valdis Dombrovskis 
and the President of Ghana Mr. Nana Akufo-Addo on 19 May 2021 in Brussels. 

2. 

MAIN IMPLEMENTATION ISSUES  

2.1   Market access: Progress and outstanding issues  

The  fourth  EU-Ghana  EPA  Committee,  held  on  30  November  and  1  December  2022  in 
Accra, was the first physical meeting since COVID19. Three separate events were organised 
on the margins of the EPA Committee, namely:  

(1) An awareness-raising workshop on EPA opportunities for business;  
(2) A one-day training on rules of origin carried out by the Commission/DG TAXUD; and  
(3) The Second Special Committee for customs and trade facilitation that confirmed that 
government certificates EUR.1 issued by Ghana will not be valid to claim preferential tariff 
treatment as of 20 August 2023.  

111 The official name of the Agreement ("stepping-stone Agreement") reflects the fact that the initial and ultimate 
objective for economic partnership in West Africa is a comprehensive, regional Agreement. It is also called 
"interim EPA". 
112 The regional Economic Partnership Agreement was signed in December 2014 by the European Union and 13 
West African Countries. In 2018, Gambia and Mauretania signed the Agreement, which means that only 
Nigeria’s signature is still missing. The Agreement will enter into provisional application when the 16 West 
African Countries sign it and 2/3 (11 out of 16) of these countries ratify it.  

124 

 
 
 
 
 
  
  
 
 
During EPA Committee meeting progress was made on the following issues: 

•  Ghana reaffirmed its commitment to implement its EPA tariff liberalisation schedule 
in 2023 and 2024. Ghana and the EU agreed to inform businesses in time about the next 
tariff cuts, so that they may benefit from related opportunities. In the course of 2022, 
the  EU  Delegation  to  Ghana  continued,  in  close  coordination  with  the  EU  Member 
States  and  the  local  private  sector,  the  work  to  address  trade  barriers  and  to 
implement the interim EPA (iEPA); 

•  A second decision (No.2/2022) on the Rules of Procedure for dispute settlement was 
iEPA 

the  mechanism  for  monitoring  and  evaluation  of 

the 

adopted  and 
implementation was discussed; 

•  Ghana showed openness to explore the possibility to deepen the bilateral relations 
with the EU in new trade areas, beyond goods in particular a better understanding of the 
EU’s approach on TSD, services, investment and digital trade.  

The  Commission  provided  updates  on  the  ongoing  development  programmes  aimed  at 
strengthening  Ghana’s  competitiveness  and  EPA  implementation  and  developing  an  online 
Agribusiness Platform: 

•  The programme ‘Compete Ghana’113 to support the EPA implementation between 
the  EU  and  Ghana  (€4,1  million,  2020-2024)  is  aimed  at  improving  economic 
governance  and  business  environment  and  to  maximise  the  benfits  of  the  EPA  for 
Ghana. Through a close cooperation with Ghana’s Ministry of Trade and Industry and 
Ministry  of  Finance  (NAO),  the  EU  projects  are  assisting  key  stakeholders  in  a 
smooth roll-out of the EU-Ghana EPA. In implementing the project, the Commission 
(through  its  EU  Delegation)  actively  enagges  with  both  the  European  and  Ghanaian 
private sectors. Among the most relevant outcomes occurred in 2022 are the completion 
of communication material (iEPA handbook, a two-page leaflet in the iEPA for public 
and  private  sector  awareness),  trainings  of  the  EPA  Secretariat  Staff,  several  EPA 
training  seminars  for  private  and  public  sectors,  reports  on  the  needed  reforms  (on 
identification and documentation of all iEPA commitments on fiscal matters and in the 
field of trade facilitation and customs), and a report on trade reforms derived from the 
iEPA. 

113  The  project  does  not  target  any  particular  sector  but  rather  focuses  on  building  up  Ghana’s  capacity  to 
implement the EPA and to engage on EPA-related matters, on improving competitiveness at firm level and on 
mainstream regional policies in favor of industrial competitiveness.   

125 

 
 
 
 
 
 
•  The EU-funded West Africa Competitiveness Program WACOMP (€6.35 million, 
2019-2024)  continued  to  support  small  and  medium  entrepreneurs  -  through  cluster 
approach in the value chains of tropical fruits, cosmetics and personal care products - to 
become more present in e-commerce and exports and to better make their voice heard 
with regard to value chains in the agriculture sector.  

•  The  Investment  Promotion  component  (€2.8  million,  2018-2022)  of  the  EU-funded 
Ghana  Employment  and  Social  Protection  Programme  was  used  by  the  EU  to 
campaign for more Ghanaian small and medium enterprises (SMEs) to be linked with 
larger  companies  in  the  ECOWAS  region  and  the  EU  market  for  improved  export 
promotion and value-chain development in agriculture.  

•  Development  of  the  IT  Ghana-EU  Agribusiness  Platform.  In  2021-2022  the  EU 
Delegation  in  Ghana  worked  on  both  the  feasibility  study  and  development  of  this 
Platform,  which  has  been  developed  and  handed  over  to  EuroCham  Ghana  for 
management. 

2.2 

Trade and sustainable development goals 

The  iEPA  with  Ghana  does  not  include  a  trade  and  sustainable  development  chapter. 
Nevertheless, the parties cooperate closely under the framework of the Cotonou Agreement. 
Sustainability was also part of the 2022 EPA Committee meeting with a dedicated session on 
sustainable cocoa. 

Sustainable Cocoa Initiative 

In  2022  the  parties  continued  a  dialogue  on  sustainability  of  the  cocoa  value  chain  that 
culminated in the establishment of an Alliance on sustainable cocoa and the endorsement by 
all stakeholders of a Roadmap of Action points to deliver against the objectives of sustainable 
cocoa and trade.114 

In  2022  the  joint  priority  of  the  parties  was  to  kick-start  support  activities  by  the  four 
implementing partners of the Sustainable Cocoa Programme (i.e. GIZ, FAO, European Forest 
Insitute  and  JRC),  managed  by  Brussels.  The  Ghana  Cocoa  Board  (COCOBOD)  support 
requests are well targeted and focus on traceability, which the sector will need in light of EU 
legislation on sustainability (i.e the Deforestation-free products Regulation115 which entered in 
force on 23 June 2023 and the incoming EU Corporate Sustainable Due Diligence Directive116), 
in  particular  their  respective  due-diligence  requirements.  Among  others  activities,  the  EU 
agreed to assist the COCOBOD with the piloting and roll-out of some elements of its Cocoa 

114 EU, Côte d’Ivoire, Ghana and the cocoa sector endorse an Alliance on Sustainable Cocoa (europa.eu) 
115 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023R1115  
116 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52022PC0071  

126 

 
 
 
 
 
 
 
 
Management System. Preparatory work started  in late 2022. In the pipeline there is also the 
development  of  a  deforestation  risk  monitoring  system  and  land-use  mapping  needs  in 
collaboration with the Ghana Forest Commission. 

The Sustainable Cocoa Initiative - Background 

Ghana, Côte d'Ivoire and Cameroon together account for 62% of extra-EU imports of cocoa 

and  cocoa  preparations  in  2022,  for  a  value  of  7.4  billion  euros  in  2022.  The  cocoa  trade 

represents 12% of EU27 total imports from Cameroon, 44% of EU27 total imports from Ghana 

and 65% of EU27 total imports from Côte d'Ivoire. While cocoa beans are duty-free on a MFN 

basis, exports of processed cocoa (butter, paste and powder) benefit from EPA preferences. All 

three countries take advantage of the quota free-duty free regime of the interim EPA for cocoa 

and  its  transformed  products  since  48%  for  Ghana,  33%  for  Côte  d'Ivoire  and  35%  for 

Cameroon of the exported cocoa to EU consists of processed products.  

In September 2020, the European Commission launched a Sustainable Cocoa Initiative with 

a focus on Côte d’Ivoire, Ghana and Cameroon. The objective of the multi-stakeholder dialogue 

is to foster progress in the elimination of child labour in cocoa supply chains, enhancing the 

protection  of  forests  in  cocoa-producing  regions,  and  ensuring  a  living  income  for  cocoa 

farmers. The dialogue brings together key stakeholders from the cocoa value chain including 

government  representatives  from  the  producing  countries,  EU  Member  States,  European 

Parliament,  EU  chocolate  business  representatives,  retailers,  farmers,  and  non-governmental 

organisations.  

In 2021, a series of eight thematic roundtables - “Cocoa Talks” - took place, which looked into 

various aspects of sustainability in the cocoa value chain, including living income, standards, 

transparency  and  traceability  related  to  child  labour  and  deforestation,  due  diligence, 

agroforestry, etc. The “Cocoa Talks” have allowed for meaningful exchanges on sustainable 

cocoa production and trade, between stakeholders – the EU, Côte d'Ivoire, Ghana, the chocolate 

industry, cocoa traders, farmers organizations, and civil society. 

127 

 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND THE 
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) 

1. 

THE AGREEMENT 

The EU-SADC  Economic Partnership Agreement (EPA), between the  EU and six  countries 
from the Southern African Development Community (SADC): Botswana, Eswatini, Lesotho, 
Mozambique,  Namibia  and  South  Africa,  was  signed  on  10  June  2016.  It  entered  into 
provisional  application  on  10  October  2016  for  all  Parties  to  the  Agreement  except  for 
Mozambique, for which it entered into provisional application on 4 February 2018. Hence, 2022 
marked the sixth year of provisional application of the Agreement for all its Parties except 
Mozambique.   

All SADC EPA States -except South Africa- receive duty free and quota free treatment for all 
their goods (except arms and ammunition) imported into the EU. South Africa receives such 
treatment for 94.4% of tariff lines for its exports to the EU and an additional 3.2% of tariff lines 
benefit  from  reduced  tariffs  or  from  preferential  tariff  rate  quotas.  The  Southern  African 
Customs Union (SACU), comprising Botswana, Eswatini, Lesotho, Namibia and South Africa, 
grants duty free and quota free treatment to 84.9% of tariff lines for products exported by the 
EU to the region. An additional 12.9% of EU exports benefit from partial liberalisation (reduced 
tariffs or tariff rate quotas). Mozambique (a Least Developed Country and not a member of 
SACU) liberalises a smaller percentage of exports from the EU. The final wave of liberalisation 
will take place in 2025 (for Mozambique in 2028).  

The EU-SADC EPA is the first and only regional EPA in Africa to be fully operational (all 
partners are implementing the tariff cuts foreseen by the EPA). Since the 2019 meeting of the 
EU-SADC  EPA  Joint  Council,  the  institutional  framework  of  the  EPA  is  fully  in  place  and 
operational. The Special Committee on Customs and Trade Facilitation under the EPA had its 
fourth meeting in January 2022 and adopted its Rules of Procedure in July 2022.  

128 

 
 
 
 
 
 
 
On 26 July 2022, the EU-SADC EPA Joint Council adopted Decision No 2/2022 approving 
the  launching  of  accession  negotiations  with  Angola.  Formal  negotiations  for  Angola’s 
accession are expected to be launched soon.  

The Parties continue work on their first EPA joint monitoring report117, which was delayed 
due  to  data  collection  challenges  on  the  SADC  EPA  side.  Meanwhile,  the  monitoring 
coordinators on the EU side and the SADC Secretariat EPA Unit have compiled a draft report, 
based  on  EU  and  international  data,  which  was  shared  with  SADC  EPA  States  for  their 
comments in early 2023. The latter accepted the draft without further comments, and the report 
is expected to be published second half of 2023, after its formal endorsement by the EU – SADC 
Trade and Development Committee. 

In addition, the Commission launched an independent EPA ex-post evaluation study by an 
external contractor in the beginning of 2023. Its outcomes  (interim report expected by October 
2023 and final report by April 2024) will feed into the joint review process.118 TSD will be an 
important focus of the evaluation. 

Most recently and outside the scope of the EU-SADC EPA, the EU and Namibia signed on 8 
November  2022  a  Memorandum  of  Understanding  (MoU)  establishing  a  strategic 
partnership on sustainable raw materials value chains and renewable hydrogen. The aim 
is  to  ensure  the  development  of  a  secure  and  sustainable  supply  of  raw  materials,  refined 
materials  and  renewable  hydrogen  to  support  the  green  and  digital  transformation  of  both 
economies. The EU and Namibia are developing a Roadmap for 2023-24, with concrete joint 
actions to operationalize the MoU. 

2. 

MAIN IMPLEMENTATION ISSUES 

2.1  Market access: Progress and outstanding issues  

As from 1st January 2019, all SADC EPA States apply the reduction in EPA customs duties for 
goods coming from the EU. The final wave of liberalisation will take place in 2025 (2028 for 
Mozambique).  In  2022,  Mozambique  advanced  with  its  EPA-related  tariff  liberalisation 
commitments, reaching zero tariff for Category B1, B21 and B22 as of January 2022; and 15% 
for Category C1 and 5% for Category C21 as of January 2023. NB: The other SADC EPA States 
already migrated to the Harmonized System nomenclature in 2021. 

On 3 August 2022 an important step forward was made when the arbitration panel on SACU’s  
(South African Customs’ Union)  measures against  EU  imports of frozen poultry   ruled  in 
favour of the EU.  

117 The monitoring report is based on statistics mostly and responds to a set of indicators to measure EPA 
performance  
118 The joint review is based on a discussion among the parties on the functioning and impact of the EPA across 
different areas. 

129 

 
 
 
 
 
Dispute  against  SACU  over  frozen  poultry  under  the  EU-SADC  EPA  dispute 
settlement mechanism 

The arbitration panel in its final report of 3 August 2022 ruled in favour of the EU. The 
panel found that the safeguard measure was not proportionate and went beyond what was 
needed  to  remedy  or  prevent  any  serious  injury  or  disturbances.  Moreover,  the  delay 
between the investigation and the adoption of the safeguard measure was excessive and not 
in line with the EU-SADC EPA. 

The ruling  prevented SACU from prolonging the safeguard and sets a strong precedent 
for  any  future  bilateral  safeguards  under  the  EU-SADC  agreement.  While  safeguard 
measures  can  legally  be  adopted  in  exceptional  circumstances  to  temporarily  counter 
surging imports that threaten domestic industry, these must at  all times comply with the 
legal requirements set out in the Agreement. 

Background:  On  15  December  2016,  a  provisional  safeguard  measure  of  13.9%  was 
imposed by SACU on imports from the whole EU based on Article 34 of the EU-SADC 
EPA. On 28 September 2018, SACU adopted a final safeguard measure against imports of 
poultry from the EU. The safeguard measure took the form of increased tariff duties, subject 
to progressive reduction over a period of four years. The safeguard was set at 35.3% for the 
first six months, which were reduced to 30% in March 2019, 25% in March 2020 and in 
March 2021 to 15%. The safeguard expired on 11 March 2022. 

•  On 14 June 2019, the EU requested formal consultations with SACU over safeguard 

measures affecting imports of frozen chicken cuts from the EU. In April 2020, the EU 
requested the establishment of an arbitration panel. The panel was appointed in 
December 2021. The oral hearing took place in March 2022. The arbitration panel, in 
its final report of 4 August 2022, ruled in favour of the EU and found that the 
safeguard measure was not proportionate and went beyond what was needed to 
remedy or prevent any serious injury or disturbances. Moreover, the delay between the 
investigation and the adoption of the safeguard measure was excessive and not in line 
with the EU-SADC EPA. Although the safeguard measure expired in March 2022, the 
panel report sets a precedent to be followed by SACU and prevented the latter from 
extending the duration of the safeguard at stake.  

At the same time, trade defense remains an area of concern: In 2022, South Africa on 
behalf of SACU took anti-dumping duties on frozen chicken from Denmark, Ireland, Poland 
and Spain imposed on 1 August 2022 (though temporarily suspended) and provisional 
measures on frozen potato chips from Belgium, Germany and the Netherlands imposed on 15 
July 2022.  

130 

 
 
 
 
 
Another area with important trade barriers continues to be SPS, where South Africa’s SPS 
measures taken in 2022 on non-heat treated poultry and pork meat brought EU’s exports 
to South Africa to a complete standstill. So far, South Africa maintains the SPS bans imposed 
on  poultry  following  several  Avian  Influenza  outbreaks  throughout  the  EU  and  does  not 
recognise  the  EU  system  of  regionalisation  or  delays  recognition  of  the  disease-free  status 
according to the World Organisation for Animal Health (OIE) standards. But even requests for 
authorization of imports of other meat exports from the EU (not subject to avian influenza or 
FMD) are suffering from lengthy delays, as well as requests on genetic material and some fruits. 

South Africa in 2022 also continued to apply extensive local content requirements in public 
tenders. Moreover, in Botswana, for example, local content requirements have been identified 
as a potential hindrance e.g. for EIB funding.  

A number of new market access restrictions were introduced by South Africa in 2022, such 
as: 

•  Further restrictions on exports for scrap metal, including a temporary export ban and 

more controls on the imports of equipment to produce scraps; 

•  Amendments to the Regulations on the composition, production and labelling of wine 
and spirits; published on 15 of July 2022 and already in force with a transitional period 
until the end of 2025. (NB: These amendments would create a new category of alcohol 
with a minimum and maximum Alcohol By Volume (ABV) content between 24% and 
30%  that  would  prevent  the  sale  of  many  reputed  EU  ‘premium’  spirits  –  including 
drinks like Campari, Pastis or flavoured vodkas - that currently have an ABV between 
30% and 43%); 

•  A requested increase of applied duty rates for articulated dumpers. The matter is 
now  pending  a  final  decision  of  the  South  African  Minister  of  Trade,  with  the 
uncertainty if such increases would apply to the EU.  

The  EU  (including  through  the  EU  Delegation  to  South  Africa)  continues  to  engage  with 
SADC EPA States offering technical assistance to help improve the implementation of the 
SADC EPA. This support is oriented towards the resolution of issues in the interest of the EU 
side and the better implementation of the EPA in favour of SADC EPA States: 

•  To help speed up the implementation of the EPA rules of origin, notably in regard to 
the implementation of diagonal cumulation between the SADC EPA States, meant to 
support integration within the SADC region, the Commission/DG TAXUD carried out 
a  capacity  building  training  on  diagonal  cumulation  in  Johannesburg  in  June  2022. 
SACU States have fulfilled the requirements to apply diagonal cumulation, and since 
1st  June  2023  may  apply  diagonal  cumulation  with  all  SADC  EPA  States  and  with 
certain  ACP  countries  signatories  of  the  ACP  Joint  Undertaking  for  the  purpose  of 
implementing provisions of cumulation in the EPAs.  

131 

 
 
 
 
 
 
 
• 

In  2022  the  EU  continued    technical  and  advocacy  activities  to  unlock  the  untapped 
opportunities  of  the  EPA,  with  the  help  of    the  EU-SA  Partners  for  Growth 
programme which is aimed at maximising bilateral trade under the EPA, by removing 
technical barriers  to trade and fostering global value chains. A good example for 2022 
was  the  collaboration  with  the  South  Africa  association  of  cotton,  wool  and  mohair 
bringing  together  growers,  buyers,  equipment  suppliers  and  commodity  associations 
throughout  the  sustainable  textile  value  chain  to  explore  possibilities  for  knowledge 
sharing, technical exchanges and trade.  

•  The EPA support Programme, a 10 million euros programme, is being deployed  to 
unlock challenges related to quality infrastructure and technical capacity in agricultural 
value  chains  and  to  increase  response  to  opportunities  under  the  EPA  by  emerging 
exporters of agricultural products and those with recognised geographical indications 
(GIs).  

2.2 

Trade and sustainable development goals  

The  EU-SADC  EPA  includes  a  chapter  on  cooperation  on  Trade  and  Sustainable 
Development  where  the  Parties  have  been  discussing  trade  and  environment  and  climate 
change related issues in the meetings of the Trade and Development Committee (TDC) of 
February 2020, November 2021 and November 2022.  

At the 8th Trade and Development Committee in November 2021 the Parties agreed to launch 
the joint EPA review process, as foreseen in the Agreement itself, and two technical meetings 
took place – one in November 2021 and the second one in November 2022.  

Discussions at TDC meetings revealed that SADC EPA States have concerns about the impact 
that EU’s Green Deal related initiatives could have on their exports to the EU. South Africa’s 
steel industry is expected to be impacted by the EU’s Carbon Border Adjustement Mechanism 
(CBAM), while Mozambique is expected to be impacted via its aluminium sector, which is its 
main export sector to the EU. Botswana, as a beef exporter to the EU, has expressed concerns 
about the effects that EU’s Deforestation Regulation and the Farm to Fork Strategy could have 
on the demand of Botswana’s beef in the EU. The Parties have agreed on the need to deepen 
the dialogue on these issues and in particular to substantiate their impact on trade. 

132 

 
 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND CÔTE 
D’IVOIRE 

1. 

THE AGREEMENT 

Pending  an  Economic  Partnership  Agreement  (EPA)  with  the  West  African  region,  Côte 
d’Ivoire concluded a stepping stone or interim EPA (iEPA) with the EU in November 2008.119 
The interim EPA was signed on 26 November 2008 and entered into provisional application on 
3 September 2016. The EU - Côte d’Ivoire interim EPA will be replaced by the regional EU-
West Africa EPA once the latter enters into force.120 By the end of 2022, 15 out of 16 West 
African countries had signed the regional EPA, with only Nigeria’s signature still outstanding.  

Côte d'Ivoire is the first country in West Africa that started liberalising its market for trade 
with the EU and applying reciprocity to the market access enjoyed in the EU. The liberalisation 
of  the  first  1115  products  was  applied  from  1  January  2019.  The  second  round  of  tariff 
liberalisation  took  effect  on  1  January  2021,  and  covered  another  1190  products.  The 
liberalisation process will be completed by 1 January 2029. Côte d’Ivoire’s HS2017 updated 
market access offer and schedule is published on Directorate-General for Trade website.121 

2. 

MAIN IMPLEMENTATION ISSUES 

2.1  Market access: Progress and outstanding issues  

In 2022, due to the government reorganisation in mid-2022, there was no meeting of the EPA 
Commitee.122 Nevertheless, important progress was made towards the end of 2022 when Côte 
d’Ivoire adopted the EU developped Registered Exporter system (‘REX system’). and 
carried out an awareness campaign targeting exporters’ organisations. The exporters 
registered in the REX system can make out origin declarations for the purpose of claiming 
preferential tariff treatment for their imports into the EU. The REX system is now used for 
both EU exports to and EU imports from Côte d’Ivoire. Works also started up to update Côte 
d’Ivoire’s market offer on HS2022. 

119 The official name of the agreement ("stepping-stone agreement") reflects the fact that the initial and ultimate 
objective for economic partnership in West Africa is a comprehensive, regional agreement. It is also called 
"interim EPA".  
120 The Economic Partnership Agreement was signed in December 2014 by the European Union and 13 West 
African Countries. In 2018, the Gambia and Mauretania signed the Agreement, to date only Nigeria is yet to sign 
the EPA. The Agreement will enter into provisional application when all the 16 West African Countries sign it 
and 2/3 (11 out of 16) of these countries ratify it.  
121 https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/d0c1c2fc-efe7-4dfb-8101-
70af86417152/details  
122 The 5th EU-Cote d’Ivoire EPA Committee was held on 18 to 22 October 2021 in Brussels. 

133 

 
 
 
 
 
 
 
In 2022, EU companies were also able to benefit from the first and second rounds of tariff 
liberalisation of products with significant EU exports, such as medicines (mixed or unmixed 
products for therapeutic or prophylactic purposes), light oils and preparations of petroleum or 
bituminous  minerals  with specific  characteristics, category of aeroplanes  and other powered 
aircraft,  vaccines  (human  and  veterinary  medicine),  road  tractors  for  semi-trailers,  printed 
books, laboratory reagents.  

A  number  of  outstanding  trade  barriers  continue  to  exist,  such  as  in  particular  tax 
discrimination on imported spirits  and on imported meat.  For example,    for several  years 
Côte d'Ivoire has maintained discriminatory taxation on imported spirits and wines, which are 
subject to an excise tax 25% higher than that applied to locally manufactured beverages. The 
EU  considers  this  regime  discriminatory  and  has  raised  the  topic  twice  within  the  WTO’s 
Agriculture committee (in November 2020 and in March 2022), asking for justifications, which 
Côte d’Ivoire has yet to provide. 

EU projects managed by the EU Delegation in Côte d'Ivoire, in close liaison with business 
stakeholders, continue to make an important contribution towards improving business climate 
and addressing key impediments in important sectors of the economy.  

Examples of initiatives that took place in 2022 include the following:  

•  Within  the  framework  of  the  contract  “S’investir  ensemble”  signed  in  2019,  the  EU 
Delegation continued to work together with the European private sector (Eurocham)123, 
as  well  as  with  the  national  private  sector,  represented  by  the  Union  des  Grandes 
Entreprises Industrielles de Côte d'Ivoire (UGECI) and the Confédération Générale des 
Entreprises  de  Côte  d'Ivoire  (CGECI),  to  improve  the  business  climate  in  Côte 
d'Ivoire.  

•  Eurocham continued to organise strategic monitoring sessions on key impediments to 
doing  business  in  sectors  such  as  energy,  agriculture  and  new  technologies.  These 
sessions aimed at helping companies to better understand the evolution and identifying 
the  challenges  and  problems  concerning  a  specific  sector  to  be  able  to  issue 
recommendations.  

2.2 Trade and sustainable development goals  

The  interim  EPA  with  Côte  d’Ivoire  does  not  include  a  dedicated  chapter  on  trade  and 
sustainable  development  (TSD).  Nevertheless,  the  parties  cooperate  closely  under  the 

123 The European private sector is supported by a European Chamber of Commerce and national chambers of 
Commerce to identify trade and investment barriers. Eurocham, the European Chamber of Commerce, set up 
with the support of the EU delegation in 2009, was the first European chamber in West Africa. This Chamber 
was also the first European chamber in West Africa to join the network of European chambers (EBOWNN) in 
2017. In addition, national chambers of commerce from France, Belgium, United Kingdom and more recently 
Germany are present in Côte d’Ivoire. 

134 

 
 
 
 
 
framework of the Cotonou Agreement to ensure the contribution of trade to the achievement 
of the sustainable development goals.  

Sustainable Cocoa Initiative 

Following  the  start  of  the  (virtual)  “Cocoa  Talks”  in  September  2020  in  Brussels,  the  EU 
Delegation in Côte d’Ivoire in early 2021 launched the “EU-Côte d’Ivoire Political Dialogue 
on Sustainable Cocoa”. By bringing together all relevant stakeholders in Brussels as well as 
in the main cocoa-producing countries to discuss those key topics, the EU is seeking to build 
consensus on a common pathway towards a sustainable cocoa sector.  

In  2022,  visits  to  Côte  d’Ivoire  by  Commissoiner  Jutta  Urpilainen  (March)  and  INTPA 
Director General Koen Doens (October)’ provided opportunities for a high-level dialogue on 
sustainable cocoa, in particular in view of the EU Deforestation Regulation and upcoming Due 
Diligence Directive, and EU compliance support. The partnership dialogue in November 2022 
saw  a  continuation  of  exchanges  on  the  matter,  marked  by  intense  discussions  between 
producing  countries  and  industry  regarding  the  payment  of  the  LID  (Living  Income 
Differential) and the country premium, which would lead to a higher price for cocoa products.124 

The  sustainable  cocoa  initiative  is  supported  by  a  40  million  euros  worth  Team  Europe 
initiative,  joining  efforts  from  the  EU,  Belgium,  France,  Germany,  the  Netherlands  and 
Switzerland. Projects implemented between 2021 and 2026 are aimed to support institutional 
capacity,  improved  traceability  systems,  sustainable  agricultural  practices,  reasearch  and 
development and the fight against child labour.  

For more background information on the Sustainable Cocoa Initiative please see the dedicated 
box under the EU-Ghana EPA section. 

124 https://www.cighci.org/  

135 

 
 
 
 
 
 
 
ANNUAL INFORMATION SHEET ON THE IMPLEMENTATION OF THE 
ECONOMIC PARTNERSHIP AGREEMENT (EPA) BETWEEN THE EU AND 
CAMEROON 

1. 

THE AGREEMENT 

On 15 January 2009, Cameroon and the EU signed a stepping-stone Economic Partnership 
Agreement (EPA) or interim EPA (iEPA). The European Parliament approved this agreement 
on 13 June 2013 and the Parliament of Cameroon proceeded to its ratification on 22 July 2014. 
On  4  August  2014,  the  agreement  entered  into  provisional  application.  Being  a  regional 
agreement, the EPA is open to the accession of other Central African countries.  

The iEPA provides Cameroon with duty-free quota-free access to the EU market for all products 
originating  from  Cameroon.  This  benefits,  among  others,  exports  of  Cameroonian  bananas, 
aluminium, processed cocoa products, plywood and other fresh and transformed agricultural 
products.  

For its part, Cameroon progressively reduces its tariffs on 80% of its imports from the EU 
to reach 0% by 2029. This targeted elimination of import tariffs will help Cameroon's local 
producers  to  develop  their  production  and  become  more  competitive,  and  indirectly,  it  will 
benefit local consumers.  

To ensure the protection of certain sensitive agricultural markets and industries, but also to 
maintain  fiscal  revenues,  the  EPA  allows  Cameroon  to  maintain  tariffs  on  20%  of  goods 
originating from the EU (such as meat, wines and spirits, malt, milk products, flour, fruit and 
vegetables, wood and wood products, used clothes and textiles, paintings, and used tyres). 

2. 

MAIN IMPLEMENTATION ISSUES  

2.1   Market access: Progress and outstanding issues  

Further progress was made in 2022, on Cameroon’s tariff dismantling under the EPA, which 
continues to be on track.125 It started in August 2016 for products listed in group 1 (1727 tariff 
lines), in  2017 for  group 2  (985 tariff  lines),  and in  2021 for  group 3.  The two  first  groups 
mainly  consist  of  essential  items  that  are  often  used  as  inputs  for  industrial  processes  in 
Cameroon or consumer products that are not found on the local market, such as medicines and 
medical  equipment,  industrial  and  agricultural  inputs,  machines,  chemicals,  spare  parts  for 
vehicles, computers, and paper. The third group includes a number of products, such as cars, 
on  which  Cameroon  and  the  Central  African  region  have  traditionally  charged  the  highest 
duties.  

125 Following a temporary unilateral suspension of EPA dismantlement by Cameroon in the wake of COVID-19 
outbreak in 2020, the process returned to its initial schedule with a tariff cut in January 2021 and August 2021.  

136 

 
 
 
 
 
 
 
Import duties for all products of group 1 are now fully removed. As of August 2022, all 
tariffs  on  products  of  group  2  are  reduced  by  90%  and  those  of  group  3  by  30%.  The 
Market Access Offer has been updated to reflect the latest international customs nomenclature 
HS2022  and  is  available  on  DG  TRADE  website.126  Cameroon  and  the  EU  are  actively 
monitoring the effects of the agreement.  

The  first  joint  monitoring  report,  covering  years  2014-2019,  was  adopted  in  2021  and  is 
publicly available.127 The second report is set to become available in 2023.  

The 6th EPA Committee was held in June 2022 in Brussels.128  

•  One important topic discussed was rules of origin, the most important outstanding issue 
related to the implementation of the EPA. So far, the Agreement does not include a joint 
set of rules. A draft text of the protocol on rules of origin – negotiated since 2016 – was 
eventually agreed at technical level at the 6th meeting of the EPA Committee on 9th June 
2022. Both sides formally validated the outcome of this negotiation in May 2023 and 
will now proceed with their respective adoption procedures. 

•  The Committee also  exchanged views on a  possible deepening of the EPA to cover 
subjects  going  beyond  trade  in  goods  (e.g.  trade  in  services  and  sustainable 
development), inform partners about the upcoming EU requirements on company due 
diligence  and  deforestation  prevention,  and  took  the  decision  to  operationalise  the 
EPA sub-committee on agriculture and rural development to step-up the dialogue 
related to trade in agri-food products.  

Apart  from  rules  of  origin,  an  increasing  number  of  Cameroonian  fiscal  measures  (in 
contradiction  to  EPA  commitments)    affect  trade,  such  as  the  so  called  “excise  duties”  on 
imports” introduced in 2020 and imposed every year on an increasing number of products, as 
well as a range of new export taxes. The EU side raised the issue at Head of Delegation level 
vis-à-vis Cameroon. 

As regards the use of the EPA preferences, preference utilization by Cameroonian exports to 
the EU tends to be high (e.g. 99% in 2021)  , however, due to a lack of diversification, utilization 
is limited to a number of sectors, such as bananas, processed cocoa products, wood products 
and  aluminum.  For  EU  exports  to  Cameroon  there  is  a  rather  poor  use  of  preferences  thus 
limiting the expected positive outcomes of EPA for Cameroonian companies and consumers 
and is due, among others, to an insufficient EPA awareness among the Cameroonian private 
sector  (importers).   Therefore,  to  increase  awareness  of  EPA  opportunities  among  the 

126 https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/31a1603d-10ee-4c44-
85e8-50c6d166e848/details https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-
fe32e36cbd0e/library/31a1603d-10ee-4c44-85e8-50c6d166e848/details  
127 https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/f27fa117-7fdd-46ad-bb54-
79b621d899c6/details https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-
fe32e36cbd0e/library/f27fa117-7fdd-46ad-bb54-79b621d899c6/details  
128 https://circabc.europa.eu/ui/group/09242a36-a438-40fd-a7af-fe32e36cbd0e/library/05a0a72b-d0ca-471e-
95fe-f97604413e11/details  

137 

 
 
 
 
 
Cameroonian private sector, the EU has been intensifying its communication and outreach 
efforts in 2022. Among others, the EU Delegation in Cameroun: 

•  published a practical EPA guide for Cameroonian companies;129 
•  prepared audiovisual contents explaining the EPA to social media users130 and 
•  Held several EPA information sessions, including a workshop in the framework of the 
Salon  PROMOTE 2022, a major trade fair held  in  Yaoundé in February  2022 and  a 
workshop for local operators and local media in Douala in September 2022. 

Furthermore,  improvement  of  the  business  environment,  including  conditions  for  foreign 
direct investment, is key for the EPA to deliver its full benefits. For that reason, the EU and its 
Member States have also been supporting the creation of a European Business Organization 
(EBO). The organisation received an authorization of the government of Cameroon to operate 
according to the Cameroonian law in February 2023. Once fully operational, EBO Cameroon 
is expected to contribute to attract foreign investment and to foster a private-public dialogue in 
Cameroon to the benefit of all market operators.  

Last but not least, the EPA also comes with a package of accompanying measures that help 
Cameroon  and  its  companies  to  make  better  use  of  the  Agreement.  Among  those  are  the 
following: 

•  EU technical assistance to evaluate the fiscal impact of the Agreement for Cameroon 
and to reform the Cameroonian fiscal system in a way to compensate for the loss of 
custom revenues; 

•  EU-funded EPA accompanying measures to support the local private sector, for instance 
as regards the adaptation of their capacity to develop solid business plans and increase 
their competitiveness (e.g. through the €10 Million EU programme Dispositif d’Appui 
à la Competitivité du Cameroun); 

•  Activities  by  the  European  Investment  Bank (EIB)  increasing  the  capacity  of  local 

commercial banks to provide access to finance for local business; 

•  EU  programmes  supporting  adaptation  of  local  producers  to  the  EU  sanitary  and 
phytosanitary standards (e.g. the EU-financed COLEAD Fit-4-Market+ programme and 
an FAO-implemented Fish4ACP programme); 

•  EU  and  Member  States’  programmes  supporting  the  development  of  sustainable 
production capacities of Cameroon’s agri-food and timber sectors (including through 
programmes, implemented by GIZ, such as ABC PADER, Green Innovation Centers 
Pro-CISA, Forest and Environment Project- ProFE).  

129 https://www.eeas.europa.eu/sites/default/files/epa_brochure.pdf 
130 TV Documentary: https://www.youtube.com/watch?v=sZxn8ppJfHQ; animated video: 
https://www.youtube.com/watch?v=e471jxC-45I; APE: instrument de development et competitivite: 
https://www.youtube.com/watch?v=L3Z_uiq_XPw 

138 

 
 
 
 
The EU is also active in the area of trade infrastructures. Along with constructions of bridges 
on Cross River and Lagone, the inauguration of a fruit terminal at the port of Douala has been 
one of the most tangible improvements for Cameroon exporters in 2022. 

Finally,  in  2022,  the  EU  has  launched  a  programme  to  support  regional  integration  and 
investment in Central Africa (fr. PAIRIAC) that includes EPA-dedicated funds. 

2.2   Trade and sustainable development goals 

The EPA with Cameroon does not currently include a dedicated chapter on trade and sustainable 
development. Such a chapter could be negotiated in the future on the basis of a  ‘rendezvous 
clause’ included in the Agreement.  

The  Parties  continue  to  cooperate  on  matters  related  to  trade  and  sustainable  development 
through  different  channels.  For  instance,  Cameroon  is  party  to  a  Voluntary  Partnership 
Agreement, which is a key component of the EU Forest Law Enforcement, Governance and 
Trade (FLEGT) Action Plan131.  

Sustainable Cocoa Initiative 

The EU and Cameroon are also engaged in a dialogue on sustainable cocoa.  

With  6%  of  the  global  cocoa  market,  Cameroon  is  currently  the  4th  most  important  cocoa 
producer in the world and cocoa represents 12% to the country’s overall exports. 

Cameroon joined the Sustainable Cocoa Initiative in 2021 as an observer, before expressing 
a  wish  to  create  a  similar  forum  at  national  level.  Since  November  2021,  the  dialogue  at 
national level allowed to discuss a number of topics that are key to making the Cameroonian 
cocoa  production  more  sustainable.  Those  included  sustainable  prices,  traceability,  forest 
management,  child  labour  and  standards.  The  last  out  of  six  technical  meetings  within  the 
formal  dialogue  took  place  in  March  2023.  Further  work  is  ongoing  to  ensure  Cameroon’s 
preparedness in the wake of the new EU anti-deforestation requirements.   

The  dialogue  is  complemented  by  a  technical  assistance  program  of  5  million  euros 
implemented  by  GIZ,  FAO,  the  European  Forest  Institute  (EFI)  and  the  European 
Commission’s Joint Research Center (JRC). 

For more background information on the Sustainable Cocoa Initiative please see the dedicated 
box under the EU-Ghana EPA section. 

131 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52003DC0251  

139 

 
 
 
 
 
 
ANNUAL  INFORMATION  SHEET  ON  THE  IMPLEMENTATION  OF  THE 
ECONOMIC  PARTNERSHIP  AGREEMENT  (EPA)  BETWEEN  THE  EU  AND  THE 
EASTERN AND SOUTHERN AFRICAN REGION (ESA) 

1. 

THE AGREEMENT 

Pending a comprehensive Economic Partnership Agreement (EPA) with the full Eastern and 
Southern African region, an interim EPA (iEPA) was signed in 2009 by four ESA countries 
(Madagascar, Mauritius, Seychelles and Zimbabwe). This iEPA is provisionally applied since 
14  May  2012  by  the  EU  and  4  EPA  partners,  while  Comoros  signed  in  2017,  ratified  it  in 
December 2018 and implements it since Feburary 2019. These five countries are referred to as 
“ESA5”. Comoros, Zimbabwe and Seychelles have also ratified the EPA, while Mauritius and 
Madagascar provisionally apply it. Zambia had also initialled the iEPA and may decide to sign 
it in the near future. The agreement remains also open to other ESA countries. 

Parties undertook further steps towards the development of a common methodology aimed at 
finalising a monitoring and evaluation framework for the iEPA, and consulted stakeholders 
from the public and private sector. This is an important step to define a joint understanding of 
progress made implementing the iEPA and to identify remaining challenges in order to be able 
to address them adequately. 

Negotiations for the deepening of the Agreement continued in 2022. Since the beginning of this 
process, ten rounds of negotiation meetings took place, eight of them by video conference 
due  the  Covid-19  pandemic.  In  2022,  four  negotiating  rounds  took  place.  The  modernised 
Economic  Partnership  Agreement  will  include:  modernised  rules  of  origin;  provisions  on 
customs and trade facilitation; sanitary and phytosanitary measures; technical barriers to trade; 
trade in services, investment liberalisation and digital trade; public procurement; intellectual 
property  rights;  trade  and  competition;  trade  and  sustainable  development;  agriculture; 
fisheries; dispute avoidance and settlement; institutional structure; and economic development 
cooperation.  A  sustainability  impact  assessment132  looking  into  the  impact  of  the  new 
agreement has been conducted in parallel to the negotiations, with public consultations.  

Background:  In  2017,  the  then-four  ESA  partners  (ESA4)  implementing  the  Agreement 
requested  to  deepen  it  beyond  trade  in  goods,  in  accordance  with  the  ‘rendezvous  clause’ 
embedded  in  the  Agreement.  In  May  2019,  the  EU  and  ESA5  Countries  (Madagascar, 
Mauritius, Seychelles, Zimbabwe and Comoros) agreed on a joint scoping paper that paved 
the way for the official launch of the negotiations in October 2019. 

132 https://policy.trade.ec.europa.eu/analysis-and-assessment/sustainability-impact-assessments_en  

140 

 
 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES  

2.1   Market access: Progress and outstanding issues  

The interim EPA offers duty-free, quota-free access for all imports from the ESA EPA States 
to the EU since 1 January 2008. The five ESA EPA States are in the process of opening their 
markets  to  EU  imports  in  line  with  the  individual  tariff  schedules  of  each  ESA  EPA  State 
annexed to the interim EPA.133  

The implementation of tariff dismantling schedules, initially foreseen to start in 2012 (for 
ESA4), was completed by Seychelles, Mauritius and Zimbabwe on 1st  January 2022, when 
the percentage of tariff lines fully liberalised for products originating in the EU reached 97.5% 
in  Seychelles,  96.2%  in  Mauritius  and  around  80%  in  Zimbabwe.  Tariff  commitments 
implementation  encountered  some  difficulties  in  Madagascar  and  Comoros.  A  catch-up 
scenario was however agreed for each of these two countries: 

•  By 1 January 2023, Madagascar  effectively liberalized the remaining 109 tariff lines 

still subject to liberalization in 2022.134 

•  Comoros will complete its market access liberalisation schedule by 2024. Comoros will 
need two additional years (2024 instead of 2022) as it joined this agreement much later 
(in 2019) than the other four ESA partners.135 By 2024, Comoros will have liberalised 
around 80% of their trade.  

The last EPA Committee was held in October 2022  took further steps towards a monitoring 
and evaluation framework for the EPA and discussed issues relating to both the current and the 
future  deepened  EPA  and  other  issues  of  particular  interest  for  ESA5  partners,  such  as  the 
available EU’s tools for supporting the EPA implementation as well as EU initiatives related to 
Food Security and the Green Deal, including the EU Regulation on deforestation that may affect 
the trade relations between the Parties. The next EU-ESA EPA Joint Committee is scheduled 
to take place by the end of 2023. 

In 2022, the EU Delegations in the region maintained a close dialogue with government and 
private sector on economic matters, including on trade policy:  

•  For example, at ESA5 level, the regional trade section based at the EU Delegation in 
Mauritius  carried  out  two  Market  Access  Team  meetings  in  2022,  comprising  EU 
Member States representatives covering trade topics and EU Business associations, to 
exchange information on trade policy and enquire on trade barriers. In addition, 
the missions of the regional trade section to each ESA5 country allowed deepening the 

133 The ESA countries were not in a position to table a common regional market access offer and each country 
presented an individual offer based on its specificities. 
134 www.douanes.gov.mg/oopsovez/2023/02/Tarif-2023-23-02-2023.pdf  
135 More details can be found here: http://trade.ec.europa.eu/doclib/docs/2012/march/tradoc_149213.pdf  

141 

 
 
 
 
 
 
 
 
 
• 

• 

• 

• 

• 

dialogue with authorities and private sector while also liaising with EU Member States 
on  the  ground.  The  trade  section  also  presented  and  discussed  the  iEPA  on  the 
occasion of the Indian Ocean Business Forum. 

In Comoros, the EU Delegation continued the dialogue with the Ministry for Economy, 
especially on the tariff dismantling schedule and the relevant transposition of the tariff 
codes. The EU Delegation is heading the Trade and Private Sector Group and met 
regularly  with  the  private  sector,  national  and  European,  on  trade  opportunities  and 
business environment and on supporting the public private dialogue. The EU organized 
seminars on AfCFTA for the public and private sector and supported Comoros’ WTO 
accession process.  

In Madagascar, the EU Delegation continued its close dialogue with the private sector, 
in the framework of Economic Round Tables, whith a focus on optimising the public-
private  dialogue  and  the  role  of  digitalisation  in  the  strengthening  of  the  business 
environment.    Since  1st  January  2023,  Madagascar  has  ceased  issuing  movement 
certificates EUR.1 and implements the EU’s REX system.  

In Mauritius, the EU Delegation met with representatives of government and the private 
sector  to  discuss  the  EU  Deforestation-free  products  Regulation.  Support  was 
provided to individual companies to facilitate export to the EU. 

In  Seychelles,  the  EU  Delegation  organized  presentations  on  the  new  Taxation 
Management System, and the ASYCUDA and REX systems for the private sector and 
representatives from government agencies. In addition, the Blue Invest Conference in 
Seychelles offered the opportunity to consult with the government and private sector on 
blue economy and on trade of fisheries products. 

In Zimbabwe, a presentation on iEPA opportunities was delivered by the EU Delegation 
on  the  occasion  of  Zimbabwe  International  Trade  Fair.  Succesful  bilateral  virtual 
meetings were held between the National Plant Protection Organisation of Zimbabwe 
and  DG  SANTE  to  facilitate  the  resumption  of  citrus  exports  which  had  been 
suspended due to false codling moth. The EU Delegation also participated to field visits 
and dialogues of National Horticultural Development Council to understand further the 
constraints of the sector.  

In  addition,  several  EU  development  cooperation  programmes  linked  to  the  EPA  aim  to 
facilitate tax and customs reforms, improve the business environment and improve ESA States’ 
competitiveness. Current programmes to support ESA-EPA countries include:  

•  The  Fit For  Market+  (FFM+), which provides  support to  the horticultural  sector in 
ACP  countries,  including  ESA5,  aims  to  maintain  and  improve  access  to  domestic, 

142 

 
 
 
 
 
 
 
 
 
regional  and  international  markets  and  enhances  support  capacities  of  competent 
authorities;  

•  The  11th  European  Development  Fund  (2014-2020),  which  earmarked  10  million 

euros for each of the four initial signatory countries and 6 million euros for Comoros to 

help them implement the iEPA.  

o  Comoros is implementing the APILE project (Support to Industrialisation and Free 

Trade)  aiming  at  improving  private  sector  competitiveness,  stengthening  the 

business  environment  and  structuring  the  public-private  dialogue.  The  PAGF 

(Support Programme for Finances Management) project aims at enlarging the fiscal 

basis  in  order  to  compensate  for  customs  revenues  loss  due  to  Comoros  Tariff 

liberalisation in the context of the iEPA.  

o  Mauritius has set up an online single-entry point for businesses to obtain licences 

and permits, enhancing transparency, accountability and ease of doing business.  

o  Madagascar  has  began  with  the  implementation  of  the  PADEIR  programme 

(Support Programme for Development of Exports and Regional Integration), with 

focus  on  facilitating  exports  and  strengthening  the  competitiveness  of  the 

information,  communications  and  technology  (ICT);  tourism;  agribusiness  and 

textile sectors.  

o  Seychelles  is  working  on  diversifying  its  economy  and  ways  to  add  value  in  the 

manufacturing, agriculture and fisheries sectors.  

o  Zimbabwe is working on trade facilitation projects, with the focus on providing ICT 

and infratsructure equipment to border posts. 

2.2 

Trade and sustainable development goals  

The EU and the ESA5 EPA States under the umbrella of the Cotonou Agreement and in the 
framework  of  development  cooperation  work  together  closely  on  achieving  the  sustainable 
development goals, including ensuring the contribution of trade policy towards that objective.  

The iEPA does not include a dedicated chapter on trade and sustainable development. However, 
in the course of the ongoing negotiations to deepen the Agreement, the Parties are committed 
to negotiate an ambitious Trade and Sustainable Development chapter, in line with EU trade 
policy. 

143 

 
 
 
 
 
 
 
ANNUAL  INFORMATION  SHEET  ON  THE  IMPLEMENTATION  OF  THE 
ECONOMIC  PARTNERSHIP  AGREEMENT  (EPA)  BETWEEN  THE  EU  AND 
CARIFORUM 

1. 

THE AGREEMENT 

The  Economic  Partnership  Agreement  (EPA)  between  the  EU  and  CARIFORUM  (“the 
Agreement”) is a regional trade and development Agreement between the EU and its Member 
States and 15 Caribbean countries. It was signed in October 2008 and entered into provisional 
application on 29 December 2008. In 2021, the Agreement was provisionally applied by the 
EU  and  its  Member  States  and  by  14  Caribbean  States.136  Haiti  still  needs  to  ratify  the 
Agreement in parliament before applying it, due to domestic legal requirements. By the end of 
2021, 26 EU Member States and 10 Caribbean States had ratified the EPA.137 

The  Agreement  is  asymmetric  in  terms  of  commitments,  but  ‘comprehensive’  both  in  the 
geographic and thematic sense. It covers the whole region and includes not only provisions on 
trade  in  goods,  but  also  trade  in  services,  competition,  innovation  and  intellectual  property 
rights,  government  procurement  and  an  important  development  component  with  the  EU 
commitment towards fostering long-term sustainable economic growth in the Caribbean.138  

The  Commision  is  currently  engaged  in  the  five  years’  Joint  Review  process  of  the  EU-
CARIFORUM EPA under the established Joint Review Task Force that continued its work in 
2022. The final report of the Review process will identify key implementation challenges and 
provide joint conclusions and recommendations on the impact and functioning of the EPA. It 
is planned to finalize the Joint Review Report with CARIFORUM by mid-2023 to be approved 
by  the  next  Trade  and  Development  Committee  and  presented  to  be  presented  to  the  EU-
CARIFORUM Joint Council in 2023, tentatively scheduled for mid- 2023. The Review Report 
will  be  partially  based  on  the  10-year  Evaluation  Study  of  the  EU-CARIFORUM  EPA 
published  in  2021139  and  looking  into  the  implementation  of  the  Agreement  as  well  as  its 
economic and sustainability impacts for the 14 CARIFORUM partner countries and for the EU, 
as well as at cooperation commitments and relevant cooperation assistance.  

The  EU-CARIFORUM  EPA  is  an  ambitious  agreement  with  a  rich  institutional  structure 
meeting  on  regular  basis.  In  2022,  the  7th  Meeting  of  the  Special  Committee  on  Customs 
Cooperation and Trade facilitation took place in Guyana in April and the 6th Meeting of the 
Consultative  Committee  took  place  in  Barbados  in  May140.    The  meetings  of  Trade  and 
Development Committee and the EU-CARIFORUM Joint Council are planned for mid-2023. 

136 Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, 
Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. 
137  On the Cariforum side, the agreement has not been yet ratified by the Bahamas, Jamaica, Suriname and 
Trinidad and Tobago; on the EU side, the agreement has not been ratified only by Hungary. 
138 Further info on: Access2Markets The EU-CARIFORUM Economic Partnership Agreement (europa.eu)  
139 https://ec.europa.eu/trade/policy/policy-making/analysis/policy-evaluation/ex-post-evaluations/  
140 Cariforum-EU Consultative Committee - 6th meeting | European Economic and Social Committee 
(europa.eu) 

144 

 
 
 
 
 
 
 
2.   MAIN IMPLEMENTATION ISSUES  

2.1   Market access: Progress and outstanding issues 

The  region  has  high  food  imports  dependency  and  the  EU  is  increasingly  becoming  an 
important  exporter  of  processed  agricultural  goods  to  CARIFORUM,  a  market  that  has 
traditionally been dominated by US imports. However, China is also gaining importance and 
influence in the region mainly though loans, investments and infrastructures. The EU trade in 
goods imports from CARIFORUM grew by 175% in 2022 while EU export by 25%, but the 
EU exports of agrifood products only grew by 41,6% in 2022.  

In 2022, CARIFORUM partners progressed with the implementation of their market access 
schedules for goods, which is well advanced in most Caribbean States. While some countries 
are  delayed  with  the  applicable  schedules,  five  CARIFORUM  States141  have  reported  the 
implementation of the full schedule of tariff liberalisation.  

In general, CARIFORUM partners have up to 25 years (until 2033) to complete import tariff 
cuts.  They  have  excluded  from  these  cuts  around  17%  of  goods  and  services,  which  they 
consider sensitive:142 The list includes fresh fruits and vegetables, most alcoholic beverages, 
some  garments,  a  number  of  processed  agricultural  products,  fish,  meat,  chemicals  and 
furniture. Overall, only 25% of CARIFORUM's agricultural and fisheries products have been 
covered by liberalisation under the EPA.    

The Dominican Republic (DR) is not only the most important partner, accounting for 37% of 
EU trade with CARIFORUM, but also the most advanced in terms of EPA implementation 
and the most dynamic partner in the CARIFORUM region. Its exports to the EU have increased 
by more than 193% since the start of implementation in 2008 and bilateral trade has augmented 
231% as a whole based on Eurostat data. A new record high in bilateral trade was reached in 
2022 with 4,137 billion euros.  

The  Dominican  Republic  and  the  EU  are  holding  regular  informal  bilateral  discussions 
(“mesa del commercio” or “trade table”) to solve a number of market access barriers namely, 
a discriminatory application of the VAT tax (ITBIS) on some imported food products (notably 
cheese, ham and canned vegetables), concerns over implementation of the fiscal control and 
traceability system for alcoholic beverages and tobacco (TRAFICO) and application of a law 
requiring a local representation of foreign brands143.  With regard to TRAFICO, joint efforts 
with EU MS along with importers allowed inter alia to communicate timely concerns of the 

141 The Bahamas, the Dominican Republic, Guyana, Jamaica and Saint Lucia, 
142 The Cariforum states submitted individual market access schedules and not one single regional offer. Hence 
figures and information provided here are an average over all 14 market access schedules.  
143 Access2Markets Barrier: Dealer Protection Law - discrimination (europa.eu). 

145 

 
 
 
 
 
 
 
 
 
 
EU industry and it led to 6-month extension of the implementation deadline (until June 2023) 
and a potentially delayed enforcement for imported beers.   

In  2022,    the  Commission  raised  both  TRAFICO  and  ITBIS  problems  encountered  by  EU 
business in the Dominican Republic in the relevant WTO Committees, such as the Licensing 
Committee and the Market Access Committee. These issues were also raised under the WTO 
Trade Policy Review of the Dominican Republic, triggering useful clarifications.  

The currently ongoing implementation iniciatives with the CARIFORUM Region under the 

EPA include: 

•  creation of the Special Committee on Services. 
•  on-going negotiations of geographical indications (GIs);  
•  EUefforts  to  increase  transparency  of  applicable  EPA  rates  and  finalization  of  the 
Harmonised  System  (HS)  transposition  (from  2002 
the  2017/2022  HS 
nomenclature)  of  the  market  access  offers    by  CARIFORUM,  based  on  technical 
assistance  offered  by  the  EU.  HS  transposition  was  successfully  finalised  only  by 
Dominican Republic.  

to 

•  ongoing efforts to create the annual Joint Monitoring Mechanism as mandated by 
EPA – with the agreed final set of compliance and impact indicators ready for a first 
pilot report in 2023; 
EU support in the area of Intellectual Property Rights (IPR) under the CARIPI project 
implemented together with EUIPO, aimed at increasing implementation capacity of the 
CARIFORUM States on IPR commitments. Events, regional seminars and workshops 
were held in the course of 2022 to support the implementation of this dimension under 
EPA. 

The key implementation challenges and cooperation needs for the region, as identified as well 
by the 10-year Evaluation Study of the EU-CARIFORUM EPA144 are: (1) implementation 
delays of EPA due to capacity constraints and absorption capacity of local authorities/agencies; 
(2) difficulties in transparecy of aplicable EPA rates and rules; (3) lack of business awareness 
of the EPA and limited transparency; (4) need for a greater EU Member States’ engagement to 
support  business  to  business  relations;  (5)  need  to  increase  communication  around  EPA 
potential and support business-to-business links and platforms. 

In  line  with  these  indentified  challanges,  the  Commission  engaged  in  activities  to  raise 
awareness, to provide business oriented information about the EPA, as well as to support to 
business-to-business  links,  in  particular  under  the  two  tailored  Policy  Support  Facility 
projects designed by DG TRADE together with the EU Delegations in the region such as:  

144 Final report: https://trade.ec.europa.eu/doclib/docs/2021/january/tradoc_159352.pdf  

146 

 
 
 
 
 
 
 
 
•  DG Trade together with the EU Delegation in Barbados since 2022 is implementing a 
regional FPI project aimed to raise EU business awareness around EPA opportunities 
with 9 tailored sectoral reports and 9 business events and a final business climate study 
foreseen until the end of 2023. 

• 

In the Dominican Republic the EU Delegation is implementing a bilateral project to 
improve preference utilisation rates by EU exporters through increasing transparency 
of  applied  EPA  rates  and  the  promotion  and  use  of  the  EPA  signed  between 
CARIFORUM  and  the  EU;  the  Delegation  organises  since  2017  an  EPA  promotion 
event  with  EPA  awards  given  each  year  to  several  SMEs  in  different  categories  of 
goods and services for the best trade performance under EPA. Its 5th edition took place 
in December 8, 2022 and included some new EPA prize categories such as innovation, 
sustainability and circular economy145;  the same Delegation also  produced in  2021 a 
tutorial146 on the tool Access2Markets in Spanish and organised a series of seminars on 
EU policies - including the EPA, the efficient use of its preferences, Access2Markets 
tool  and    EU  legislation  on  organics  in  the  framework  of  the  Diploma  in  EU-
Dominican Republic. 

•  The  EU  Delegation  in  Barbados,  together  with  the  Caribbean  Export  Development 
Agency147,  continued  to  provide  support  to  CARIFORUM  exporters  and  business 
operators (especially MSMEs) by raising awareness about EU rules on imports and EPA 
provisions in two workshops in 2022 – in Saint Lucia and Suriname. 

2.2 

Trade and sustainable: Progress and outstanding issues 

The  EU-CARIFORUM  EPA  is  the  first  EU  trade  agreement  with  specific  chapters  on 
sustainable  development  and  social  aspects  (Chapter  IV  -  Environment  and  Chapter  V  – 
Social  aspects).  These  generally  reaffirm  the  Parties’  commitment  to  existing  international 
conventions and agreements to conserve, protect and improve the natural environment, respect 
core  labour  standards,  and  to  prioritise  sustainable  development.  These  commitments  are 
further  strengthened  by  a  reference  to  Article  32  of  the  Cotonou  Agreement  and  principles 
included in this agreement and the subsequent post-Cotonou Agreement, bringing these in line 
with more recent conventions.  

145 Video summary of the EPA awards event: https://www.youtube.com/watch?v=sjeK6d0-9fs 
https://www.youtube.com/watch?v=sjeK6d0-9fs https://www.youtube.com/watch?v=sjeK6d0-9fs 
https://www.youtube.com/watch?v=sjeK6d0-9fs  

146 Acces2Markets video tutorial: https://www.youtube.com/watch?v=z1zRPtOFt5o 
https://www.youtube.com/watch?v=z1zRPtOFt5o https://www.youtube.com/watch?v=z1zRPtOFt5o 
https://www.youtube.com/watch?v=z1zRPtOFt5o  
147 Home | Caribbean Export (carib-export.com) 

147 

 
 
 
 
 
 
 
 
Implementation of trade and sustainable development provisions is covered by both the Review 
discussions and the monitoring mechanism planning; 

In  addition,  in  2022  EU  cooperation  funds  continued  to  support  CARIFORUM  states  in 
implementing  programmes  related  to  sustainability,  e.g.  to  improve  energy  efficiency,  by 
developing  the  CARIFORUM’s  renewable  energy  potential  (e.g.  in  Barbados,  Dominica, 
Grenada,  St.  Vincent  and  the  Grenadines),  increasing  grid  penetration  for  energy  from 
renewable  sources,  as  well  as  by  supporting  the  circular  economy,  notably  with  a  focus  on 
plastics and waste management.  

148 

 
 
 
 
ANNUAL  INFORMATION  SHEET  ON  THE  IMPLEMENTATION  OF  THE 
ECONOMIC  PARTNERSHIP  AGREEMENT  (EPA)  BETWEEN  THE  EU  AND 
PACIFIC STATES 

1. 

THE AGREEMENT 

The EU is implementing an “interim”148 Economic Partnership Agreement (EPA or iEPA) 
with Papua New Guinea since December 2009 and with Fiji since July 2014 (i.e. the original 
signatories),  and  with  Samoa  and  Solomon  Islands  since  December  2018  and  May  2020, 
respectively,  following  their  accessions  to  the  Agreement.  After  the  preliminary  accession 
talks held  in  2021  with  potential future members (Tonga and Timor-Leste), Tuvalu sent  an 
official expression of interest to join the EPA on 9 June 2022. NB: Originally the EPA was 
supposed to be replaced by a comprehensive regional EPA with all Pacific States149, however 
the negotiations were put on hold in 2016 mainly due to lack of progress and the withdrawal of 
Papua  New  Guinea  from  the  negotiations.  Currently,  the  preferred  way  forward  is  the 
geographical  widening  of  the  iEPA  and  later,  deepening  of  its  content  and/or  increasing  its 
scope, based on rendezvous clause. 

The iEPA only covers trade in goods; it provides for rules of origin for processed fisheries 
products (mainly tuna), which are not provided for in any other EPA – the so-called "global 
sourcing" provision, which is intended to boost development in the region. This allows- upon 
notification- that fish brought on-shore by foreign vessels and further processed in a Pacific 
EPA country can be exported to the EU duty-free and quota-free, regardless of where the fish 
was caught. This significant concession by the EU has boosted investments in the tuna cooking 
and canning industry, creating tens of thousands of new jobs in Papua New Guinea (since 2009) 
and Solomon Islands (since 2020). 

In  the  context  ofthe  8th  EPA  Trade  Committee  meeting  (virtual),  held  between  4  and  8 
October 2021, the Parties agreed to hold the next Trade Committee in Apia, Samoa in 2022. 
However, the Trade Committee has been postponed to the fourth quarter of 2023/first quarter 
2024. 

148 The title "interim" has lost much of its meaning, as this EPA is being transformed into a definitive one, with 
more  and  more  countries  in  the  region  choosing  to  accede  to  it  rather  than  seeking  to  continue  the  regional 
negotiations as a block for a "full" EPA with all the 14 countries in the region. 

149 Regional negotiations involved 14 Island States: Fiji, PNG, Samoa, Solomon Islands, Tonga, Vanuatu (all 6 
currently WTO members), Cooks Islands, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Niue, 
Palau and Tuvalu (all 8 are neither WTO members nor observers). To note: Timor-Leste is part of the Small 
Pacific Islands group of ACP States, signatory to the Cotonou Agreement, but was not part of the regional EPA 
negotiations as it is not a member of the Pacific Islands Forum with which negotiations were carried out. 

149 

 
 
 
 
 
 
 
 
 
2. 

MAIN IMPLEMENTATION ISSUES  

2.1   Main steps in implementation  

In 2022, all exports from Papua New Guinea, Fiji, Samoa and Solomon Islands continued to 
enter the EU market duty-free and quota-free on a permanent basis.  

On the implementation of the tariff liberalisation under the interim EPA, taking full account 
of differences in development levels and sensitive sectors, Papua New Guinea has liberalised 
88% of imports from the EU since 2008, Fiji undertook to liberalise 87% over 15 years, Samoa 
will liberalise 80% over 20 years and Solomon Islands will liberalise 83.5% over 18 years. 

Development cooperation is crucial in order to assist the Pacific States to meet some specific 
EPA implementation needs and to improve their capacity to export.  

The EU continued to play an active role to support trade relations with the Pacific, particularly 
through four combined trade-related assistance actions funded under the Pacific Regional 
Integration Support Programme (PRISE). and the Pacific-EU Marine Partnership Programme 
(PEUMP).  Through  these  actions  (SPIRIT:  Strengthening  Pacific  Intra-Regional  and 
International  Trade;  SAFE:  Safe  Agriculture  Trade  Facilitation  in  the  Pacific;  IMPACT: 
Improving  Pacific  Islands  Customs  and  Trade;  PEUMP  SFM:  Sustainable  Fisheries 
Managment)  impelemted  by  international  (UNCTAD)  and  regional  orgnanisations  (Pacific 
Islands Forum Secretariat, Secretariat of the Pacific Communty, Forum Fisheries Agencytions) 
to ensure a strong ownership, Pacific States benefited fromcomplementary activities supporting 
the  implementation  of  the  EPA  and  new  accessions  to  it  and  improved  awareness  of  EU 
preferential  trade  schemes  and  market  access  requirements.  Interventions,  which  may  be 
extended until 2026, included assisting Pacific countries to:  

•  Formulate  and  implement  national  EPA  implementation  plans  (Fiji,  Papua  New 
Guinea,  Samoa,  Solomon  Islands)  and    accession  proposals  (Timor-Leste,Tonga  and 
Tuvalu); 

•  address  sanitary  and  phyto-sanitary  requirements  (e.g.  coconut,  coffee,  kava  and 

turmeric value chains); 

•  harmonise  customs operations at regional and national levels (ASYCUDA and single 

windows), and idenfity non-tariff measures (TRAINS portal); 

• 

implement the EPA and WTO trade facilitation commitments. 

150 

 
 
 
 
 
 
 
 
 
 
 
Example: Implementation of the Pacific EPA by Papua New Guinea 

- 
In 2022, Papua New Guinea continued the implementation of its Plan of Actions in 
order to enhance the implementation of the EPA. The EU Delegation in Papua New Guinea 
organised the third EU- Papua New Guinea Business, Trade and Investment Conference, 
with  the  view  to  raise  awareness  of  EPA  benefits,  increase  business  opportunities  and 
contacts, and foster new partnerships between the EU and Papua New Guinea, Fiji, Samoa, 
Solomon Islands, Tonga and Timor-Leste.  

- 
In 2022, the EU Delegation in Papua New Guinea continued to implement one of its 
flagship projects in the economic sector, namely the Support to Rural Entrepreneurship, 
Investment and Trade in Papua New Guinea (EU-STREIT Papua New Guinea), the EU 
largest  grant-funded  programme  in  the  country  and  in  the  Pacific  sub-region,  which  is 
intended to contribute to sustainable and inclusive economic development of rural areas. 
Apart  from  improving  the  livelihood  of  smallholder  farmers,  it  also  has  the  potential  to 
increase exports to the EU. 

2.2 

Trade and sustainable development  goals 

The  Pacific  EPA  does  not  include  a  chapter  on  trade  and  sustainable  development. 
Nevertheless, the EU and the Pacific States are cooperating in the framework of the Cotonou 
Agreement, to step up efforts on trade and sustainable development matters under the EPA. 

In  2021,  the  Parties  increased  efforts  to  promote  the  principles  of  trade  and  sustainable 
development  (TSD)  through  a  non-binding  instrument  –  Joint  Declaration  on  trade  and 
sustainable development that seeks political endorsement. The aim is to build the foundation 
for potential commitments on TSD between the EU and the Pacific States. Although the Joint 
Declaration entails no new legal commitments, it constitutes an important political commitment 
and a milestone for the Pacific partners to place sustainable development solidly at the heart of 
the EU-Pacific trade relations under the interim EPA. The Parties agree on the principles and 
some concrete actions (information and experience sharing) in order to develop and implement 
cooperation and capacity-building activities in priority areas. The joint declaration places the 
EU-Pacific States’ joint objectives firmly on the map of efforts towards meeting the UN 2030 
goals. 

151 

 
 
 
 
 
Annex  

SECTION IV OF THE REPORT: ADRESSING BARRIERS AND FINDING 
SOLUTIONS  

LIST OF BARRIERS RECORDED AND RESOLVED in 2022 

(1 January 2022 – 31 December 2022) 

1. NEW TRADE AND INVESTMENT BARRIERS RECORDED IN 2022 

A2M150 

BARRIER 

COUNTRY 

SECTOR 

1 

2 

3 

4 

5 

6 

17082 

17202 

17222 

17262 

17282 

17302 

7 

17322 

8 

9 

17362 

17323 

Market Access barrier on spirits 
banderols in Türkiye 
Lack of progress on export applications 
of fresh animal products and on the 
registration of list of pre-approved 
establishments (Pre-listing) 
Externalised conformity assessments and 
compulsory standards 
Mandatory use of the letter of credit as 
prior condition for imports 

New importing authorisation 
requirements 

Türkiye 

Costa Rica 

Wines & 
Spirits 
Agriculture 
and 
Fisheries 

Morocco 

Horizontal 

Egypt 

Horizontal 

Algeria 

Horizontal 

Intellectual Property Protection (plant 
varieties) 

Ecuador 

Health certificates to accompany the 
import into India of food consignments 
(dairy, pork, fish and their products) 
Import duties on plastic spectacle frames  Australia 

India 

Registration of foreign food 
manufacturing facilities 

India 

Agriculture 
and 
Fisheries 
Agriculture 
and 
Fisheries 
Other 
industries 

Agriculture 
and 
Fisheries 
Agriculture 
and 
Fisheries 

10 

17142 

US training process for cold treatment 
on exports of fruit to the US 

United States 
of America 

150 More details about the barriers can be found at this reference number under the Barriers section of 
“Access2Markets” portal https://trade.ec.europa.eu/access-to-markets/en/barriers 

152 

 
 
 
 
2. TRADE AND INVESTMENT BARRIERS RESOLVED IN 2022 

A2M151  BARRIER 

COUNTRY  SECTOR 

PROGRESS 

Additional Duty on certain 
products (DAPS) 

Algeria 

Horizontal  

Resolved 

1 

2 

14662 

14104 

Increase in custom duties on 
certain products 

Algeria 

Resolved 

Automotive, 
Electronics, 
Machinery, 
Telecommunications 
Equipment, 
Agriculture and 
Fisheries, Wines & 
Spirits 

Services - 
Communication, 
incl. postal services 

Partial 
resolution 

3 

11366 

Restrictions in the 
Telecommunication sector 

Brazil 

4 

5 

6 

7 

8 

9 

11320 

17342 

17382 

15982 

14549 

16144 

Discriminatory practices faced 
by wines and spirits sector 

Canada 

Wines & Spirits 

Slow import procedure for 
plants and plant products 

Backlog of applications of 
plant products 

Canada 

Ecuador 

Agriculture and 
Fisheries 

Agriculture and 
Fisheries 

Mandatory pesticide residue 
testing requirement 

Egypt 

Agriculture and 
Fisheries 

Partial 
resolution 

Resolved 

Partial 
resolution 

Resolved 

Hong Kong  Automotive 

Resolved 

Restrictions in Public Light 
Buses 

Quality Control orders in the 
automotive sector 

India 

Automotive 

10 

14343 

Import Tariffs India - 
Diamonds 

India 

Other Industries 

11 

11262 

Export duties on raw and semi-
finished leather 

India 

Textiles and Leather  Partial 

resolution 

151 More details about the barriers can be found at this reference number under the Barriers section of 
“Access2Markets” portal https://trade.ec.europa.eu/access-to-markets/en/barriers 

153 

Partial 
resolution 

Partial 
resolution 

 
 
 
 
12 

12320 

DS304 India's 27 antidumping 
measures on a variety of EU 
exports 

India 

Partial 
resolution 

Chemicals, 
Pharmaceuticals, 
Iron, Steel and Non-
Ferrous Metals, 
Wood, Paper and 
Pulp, Textiles and 
Leather 

13 

13043 

14 

15324 

Refusal to allow imports of 
medical devices certified by 
competent authorities in a 
number of Member States 

Member States applications on 
beef and ban due to Bovine 
Spongiform Encephalopathy 
(BSE) 

Israel 

Other Industries 

Partial 
resolution 

Japan 

Agriculture and 
Fisheries 

Partial 
resolution 

15 

10684 

Fresh fruit and vegetables 
import restrictions. 

Mexico 

Agriculture and 
Fisheries 

Partial 
resolution 

16 

12561 

17 

15482 

Overt price discrimination 
between imported and 
domestic goods - additional 
taxes and charges 

Lack of progress on export 
applications of fresh animal 
products and on the 
registration of list of pre-
approved establishments 

Mozambique  Wines & Spirits 

Resolved 

Panama 

Agriculture and 
Fisheries 

Partial 
resolution 

18 

11142 

Restrictions on retail services 

Philippines 

Services - 
Distribution  

19 

12740 

Non- recognition of EU 's 
regionalisation measures 
implemented due to African 
Swine Fever and Avian 
Influenza 

South Korea  Agriculture and 

Fisheries 

Resolved 

Partial 
resolution 

20 

11600 

Cumbersome and undue delays 
of import application 
procedures 

Thailand 

Agriculture and 
Fisheries 

Partial 
resolution 

154 

 
 
21 

14003 

22 

11189 

Trade restrictions due to non-
recognition of EUs 
regionalisation measures for 
avian influenza outbreaks 

Services: 100 % collateral 
requirement on reinsurance 
business and discriminatory 
tax treatment 

23 

13623 

Sheep and goat meat market 
access to the USA 

24 

10782 

Sanitary measures applied by 
the USA for imports of live 
bivalve molluscs. 

United Arab 
Emirates 

Agriculture and 
Fisheries 

Partial 
resolution 

United 
States of 
America 

United 
States of 
America 

United 
States of 
America 

Services - Financial  Resolved 

Agriculture and 
Fisheries 

Partial 
resolution 

Agriculture and 
Fisheries 

Partial 
resolution 

25 

17142 

US training process for cold 
treatment on exports of fruit to 
the US 

United 
States of 
America 

Agriculture and 
Fisheries 

Resolved 

26 

12340 

Non-Production or 
Insufficiency of National 
Production Certificates (CNP) 

Venezuela 

Horizontal  

Resolved 

27 

12341 

Price control - Organic Law of 
Fair Prices 

Venezuela 

Horizontal  

28 

11414 

Foreign exchange control 

Venezuela 

Horizontal  

29 

16982 

Market access procedures for 
animal products and for food 
additives 

Viet Nam 

Agriculture and 
Fisheries 

30 

13922 

Pharmaceuticals - registration 
of drugs and procurement rules 

Viet Nam 

Pharmaceuticals 

31 

10440 

Ban on imports of several 
products on BSE grounds. 

Ecuador 

Agriculture and 
Fisheries 

Partial 
resolution 

Partial 
resolution 

Partial 
resolution 

Partial 
resolution 

Resolved 

155