Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2019/0273(COD)**

**'I' ITEM NOTE**

**Brussels, 28 January 2021**
**(OR. en)**

**5448/21**
**ADD 1 REV 1**

**CODEC 69**
**COMER 5**
**WTO 12**

From: General Secretariat of the Council

To: Permanent Representatives Committee

Subject: Draft REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL amending Regulation (EU) No 654/2014 concerning the
exercise of the Union's rights for the application and enforcement of
international trade rules **(first reading)**

          - Decision to use the written procedure for the adoption of the legislative
act

= Statements

**Commission declaration on compliance with international law**

When the Union brings a dispute under the Dispute Settlement Understanding (DSU) against

another Member of the World Trade Organization (WTO), the Commission will make every

reasonable effort to obtain, as early as possible, the agreement of that Member to resort to

arbitration under Article 25 of the DSU as an interim appeal procedure, which preserves the

essential features of appeals before the Appellate Body (the “appeal arbitration procedure”), as

long as the Appellate Body is unable to fully resume its functions in accordance with Article 17

of the DSU.

When adopting implementing acts pursuant to Article 3(aa) of the Regulation, the Commission

will act in accordance with the requirements of the international law on countermeasures, as

codified in the Articles on the Responsibility of States for Internationally Wrongful Acts

adopted by the International Law Commission.

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In particular, before adopting implementing acts pursuant to Article 3(aa), the Commission will

call upon the WTO Member concerned to implement the panel’s findings and

recommendations, notify that WTO Member of the Union’s intention to take countermeasures

and reiterate its openness to negotiate a mutually agreed solution in accordance with the

requirements of the DSU.

When implementing acts have already been adopted pursuant to Article 3(aa), the Commission

will suspend their application if the Appellate Body resumes its functions in respect to the case

concerned in accordance with Article 17 of the DSU, or if an interim appeal procedure is

initiated, provided that such procedure is pursued in good faith.

**Statement by the Commission**

The Commission welcomes the adoption of the Regulation of the European Parliament and of

the Council amending Regulation (EU) No 654/2014.

The Commission recalls the Statement which it made upon the adoption of the original

regulation, inter alia that the implementing acts which the Commission is empowered to adopt

would be designed on the basis of objective criteria and subject to the control of the Member

States. In exercising that empowerment, the Commission intends to act in accordance with the

statement made upon the adoption of the original regulation as well as this Declaration.

When preparing draft implementing acts affecting trade in services or trade-related aspects of

intellectual property rights, the Commission recalls its obligations pursuant to Article 9(1a) and

confirms that it will undertake intensive prior consultations with a view to ensuring that all

relevant interests and implications can be brought to the Commission’s attention, shared with

Member States and are duly taken into account in the possible adoption of measures. In those

consultations, the Commission will seek and expects to receive input from private stakeholders

affected by possible commercial policy measures to be adopted by the Union in those areas.

Similarly, the Commission will seek and expects to receive input from public authorities that

may be involved in or affected by the implementation of possible commercial policy measures

adopted by the Union.

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# GIP.2 EN

In the case of measures in the fields of trade in services and trade-related aspects of intellectual

property rights, in particular the input from Member States’ public authorities involved in the

formulation or implementation of legislation regulating the affected fields will be duly taken

into account in the preparation of draft implementing acts, inter alia on how possible

commercial policy measures would interact with European Union and national legislation.

Likewise, other stakeholders affected by such commercial policy measures will be given an

opportunity to formulate their recommendations and concerns with respect to the choice and

design of measures to be adopted. The observations will be shared with the Member States

when measures are adopted pursuant to Article 8 of the Regulation. The regular review of any

such measures imposed during their application or after their termination will likewise take into

account the input from Member State authorities and private stakeholders in relation to the

operation of such measures, and allow for adjustments to be made if problems have arisen.

Finally, the Commission reaffirms that it attaches great importance to ensuring that the

Regulation is an effective and efficient tool for the enforcement of the Union’s rights under

international trade agreements, including in the field of trade in services and trade-related

aspects of intellectual property rights. Therefore, the measures to be chosen in these fields must

also ensure effective enforcement in line with the rights of the Union, such that they induce

compliance by the third country concerned and are consistent with the applicable international

rules on the type of enforcement measures allowed.

**Declaration of the Commission**

Upon the adoption of the Regulation in 2014, the Commission committed to an effective

communication and exchange of views with the European Parliament and the Council on trade

disputes that may lead to the adoption of measures under the Regulation, and on enforcement

actions in general. Mindful of the overarching objective of effective and efficient enforcement

of Union’s rights under the Union’s international trade agreements, the Commission will

continue to promote and streamline its interactions with the European Parliament and the

Council to the mutual benefit.

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In particular, the Commission undertakes to examine, as part of its enhanced enforcement

system, alleged violations of the Union’s international trade agreements when raised by the

Parliament, its Members, or its Committees, or by the Council on the understanding that such

requests be accompanied by supporting evidence. The Commission will keep the Parliament

and the Council informed of the output of its enhanced enforcement work.

In deploying the enhanced enforcement system, the Commission will pay equal attention to

alleged breaches of the trade and sustainable development provisions of EU trade agreements

as to alleged breaches of market access systems. The processing of alleged breaches of trade

and sustainable provisions will be fully integrated into the system. The Commission will

prioritise those cases which are particularly serious in terms of their effect on workers or the

environment in a trade context, which have systemic importance and which are legally sound.

The Commission will continue to fully engage in dedicated sessions with the responsible

Parliamentary committee to exchange views on trade disputes and enforcement actions,

including with regard to impacts on Union industries. In this context, the Commission will

continue its reporting practice by providing periodically a state of play on all pending disputes

and instant information for major developments in relation to disputes at the same time such

information is shared with Member States. This reporting and information sharing will take

place through the responsible committees in the Council and in the Parliament.

At the same time, the Commission will continue keeping the Parliament and the Council

regularly informed of international developments that may lead to situations requiring the

adoption of measures under the Regulation.

Finally, the Commission reaffirms its commitments under Regulation (EU) No 182/2011 of the

European Parliament and of the Council to promptly transmit to the Parliament and to the

Council draft implementing acts that it submits to the committee of Member States as well as

final draft implementing acts following the delivery of opinions in the committee. This is

managed via the comitology register.

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