CELEX: 52015PC0456
Language: en
Date: 2015-09-16
Title: Proposal for a COUNCIL DECISION on the Union positions to be taken in the Trade and Sustainable Development Sub-Committee and in the Association Committee in Trade configuration established by 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

EUROPEAN COMMISSION
            Brussels, 16.9.2015
            COM(2015) 456 final
            2015/0206(NLE)
            Proposal for a
            COUNCIL DECISION
            on the Union positions to be taken in the Trade and Sustainable Development Sub-Committee and in the Association Committee in Trade configuration established by 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
            
               
         
         
            
               EXPLANATORY MEMORANDUM
            
            
               1.CONTEXT OF THE PROPOSAL
            
            
               Reasons for and objectives of the proposal
            
            
               The attached proposal constitutes the legal instrument for establishing the Union positions to be adopted on its behalf in a body set up by an association agreement between the Union and a third country. In particular, it relates to the implementation of 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 ("the Agreement"). 
            
            
               The Association Agreement was signed on 27 June 2014, and has been provisionally applied, pending ratification by the Member States, since 1 September 2014. Council decision 2014/494/EU of 16 June 2014
                  1
                approved the signing of the Agreement, on behalf of the European Union and the European Atomic Energy Community and their Member States, and the provisional application of certain provisions thereof. 
            
            
               The Agreement established the Association Committee in Trade configuration, which monitors the implementation of Title IV (Trade and Trade-related matters) of the Agreement and resolves related issues. This Committee has to establish a list of arbitrators to ensure the proper functioning of the dispute settlement mechanism, as provided for in Article 268 of the Agreement. 
            
            
               The Agreement also provides for the establishment of the Trade and Sustainable Development Sub-Committee which is to reaffirm the commitment of both parties of the Agreement to pursue sustainable development and recognise that economic development, social development and environmental protection are its interdependent and mutually reinforcing pillars.
            
            
               Pursuant o Article 243 of the Agreement, the Trade and Sustainable Development Sub-Committee is to agree at its first meeting on the list of individuals who are willing and able to serve as experts in panel procedures on trade and sustainable development.
            
            
               Consistency with existing policy provisions in the policy area
            
            
               This proposal implements the Union’s common commercial policy toward an Eastern Partner country, based on the provisions of the above-mentioned Association Agreement. It aims to set up the necessary institutional instruments enabling the Union and Georgia to effectively address bilateral disputes concerning the application and interpretation of the Agreement. It is consistent with the Union's approach to dispute settlement disciplines negotiated or implemented within free trade agreements with other trade partners. It is also consistent with the Union's aproach to trade and sustainable development.
            
            
               Consistency with other Union policies
            
            
               This proposal is consistent with and complements the other external policies of the Union, notably the European Neighbourhood Policy and the development cooperation policy in relation to Georgia.
            
            
               
            
               2.Legal basis, subsidiarity and proportionality
            
            
               Legal basis
            
            
               The legal basis for establishing the Union position to be taken in the committees set up by the Association Agreement between the Union and Georgia is the Treaty on the Functioning of the European Union, and in particular its Article 207(4) in conjunction with Article 218(9) thereof. 
            
            
               Subsidiarity (for non-exclusive competence)
            
            
               The common commercial policy, in accordance with Article 3 of the TFEU, is defined as an exclusive Union competence. Therefore, the subsidiarity principle does not apply.
            
            
               Proportionality
            
         
         
            
               This proposal is necessary in order to implement the Union’s international commitments set out in the Agreement. 
            
            
               Choice of instrument
            
            
               This proposal is in accordance with Article 218(9) TFEU, which envisages the adoption by Council of decisions. There exists no other legal instrument that could be used in order to achieve the objective expressed in this proposal. 
            
            
               3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS 
            
            
               Ex-post evaluations/fitness checks of existing legislation
            
            
               Not applicable.
            
            
               Stakeholder consultations
            
            
               Stakeholder consultations are not applicable to this proposal.
            
            
               Collection and use of expertise
            
            
               The Commission has taken into account input provided by Member States in recent years as regards Union nationals who are suitable and qualified to act as arbitrators in disputes brought under the Union's trade agreements.
            
            
               Impact assessment
            
            
               The proposal relates to the implementation of institutional aspects of the Association Agreement, and in particular its Title IV on Trade and trade-related matters, between the Union and Georgia. The proposal does not have any impact on the economic, social or environmental policy of the Union. The Association Agreement has been provisionally applied since 1 September 2014, and its implementation is at a very early stage. 
            
            
               Regulatory fitness and simplification
            
            
               The Association Agreement between the Union and Georgia is not subject to REFIT procedures; it does not imply any costs for SMEs; and it does not raise any issues from the viewpoint of the digital environment. 
            
            
               Fundamental rights
            
            
               The proposal does not have consequences for the protection of fundamental rights. 
            
            
               4.BUDGETARY IMPLICATIONS
            
            
               Not applicable.
            
            
               5.OTHER ELEMENTS
            
            
               Implementation plans and monitoring, evaluation and reporting arrangements
            
         
         
            
               The implementation of the Association Agreement is reviewed regulary by the EU-Georgia Association Council. The European Commission also committed to report annualy on the implementation of Title IV (Trade and trade-related matters) of the Agreement, including on the elements included in this proposal, to the European Parliament.
            
            
               Explanatory documents (for directives)
            
            
               Not applicable.
            
            
               Detailed explanation of the specific provisions of the proposal
            
            
               The proposal aims to adopt a Union position in relation to the implementation of the trade part of the Association Agreement between the Union and Georgia. Title IV (Trade and trade-related matters) of that Agreement includes Chapter 14 (Dispute Settlement), which provides for a mechanism to resolve trade-related disputes between the parties to the Agreement, concerning the application or interpretation of the trade part of that Agreement. The arbitration procedure set out in Chapter 14 provides that the complaining party may request establishment of an arbitration panel to resolve a bilateral dispute. Article 268 of the Agreement sets out the rules for the composition of the panel. The Agreement envisages the establishment of a list of qualified individuals who may serve as arbitrators. Accordingly, a draft list of arbitrators who are willing and able to serve on an arbitration panel has been discussed with the Government of Georgia, providing for five candidate arbitrators from the Union, five candidate arbitrators from Georgia and five third-country nationals, who may serve as chairpersons of an arbitration panel. The list will be used in cases when an arbitration panel needs to be established.
            
            
               Title IV (Trade and trade-related matters) of that Agreement also includes Chapter 13 (trade and sustainable development) which provides that both parties of the Agreement commit to promote the development of international trade in such a way as to contribute to the objective of sustainable development, to ensure that this objective is integrated and reflected at every level of their trade relationship. For any matter which may arise parties should make every attempt to arrive at a mutually satisfactory resolution via government consultations. However if a party finds that the matter has not been satisfactorily addressed through government consultations the Agreement provides for a possibility for the party to request that a Panel of Experts be convened to examine a matter. Article 243(3) of the Agreement provides that the Trade and Sustainable Development Sub-Committee is to establish a list of at least 15 individuals who are willing and able to serve as experts in panel procedures.
            
            
               2015/0206 (NLE)
            
            
               Proposal for a
            
            
               COUNCIL DECISION
            
            
               on the Union positions to be taken in the Trade and Sustainable Development Sub-Committee and in the Association Committee in Trade configuration established by 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
            
            
               THE COUNCIL OF THE EUROPEAN UNION,
            
            
               Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 207(4) in conjunction with Article 218(9) thereof,
            
            
               Having regard to the proposal from the European Commission,
            
            
               Whereas:
            
            
               (1)Article 431(3) and (4) of 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, (“the Agreement”) provide for provisional application of the Agreement in part.
            
            
               (2)Article 3 of Council Decision 2014/494/EU
                  2
                of 16 June 2014 specifies the provisions of the Agreement to be applied provisionally, including the provisions on the establishment and functioning of the Trade and Sustainable Development Sub-Committee and of the Association Committee in Trade configuration, on the trade and sustainable development and on the dispute settlement provisions. 
            
            
               (3)Article 240 of the Agreement provides that the Trade and Sustainable Development Sub-Committee is to establish its rules of procedure.
            
            
               (4)Article 243 of the Agreement provides that that the Trade and Sustainable Development Sub-Committee is to agree at its first meeting on the list of individuals who are willing and able to serve as experts in panel procedures on trade and sustainable development. 
            
            
               (5)Article 268 of the Agreement provides that the Association Committee in Trade configuration is to agree on a list of individuals to serve as arbitrators in dispute settlement proceedings within 6 months of the start of the provisional application of the Agreement.
            
            
               (6)It is therefore appropriate to determine the Union positions in relation to the rules of procedure of the Trade and Sustainanble Development Sub-Committee and the list of individuals who are willing and able to serve as experts in panel procedures on trade and sustainable development to be adopted by that Sub-Committee, and in relation to the list of individuals to serve as arbitrators in dispute settlement to be adopted by the Association Committee in Trade configuration,
            
         
         
            
               HAS ADOPTED THIS DECISION: 
            
            
               Article 1
            
            
               1.The position to be taken by the Union within the Trade and Sustainable Development Sub-Committee established by Article 240 of 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, in relation to the adoption of the rules of procedure of the Trade and Sustainable Development Sub-Committee and of the list of individuals who are willing and able to serve as experts in panel procedures on trade and sustainable development shall be based on the draft Decisions of that Sub-Committee attached to this Decision.
            
            
               2.Minor changes to the draft decision may be agreed to by the representatives of the  in the Trade and Sustainable Development Sub-Committee without further decision of the Council.
            
            
               Article 2
            
            
               1.The position to be taken by the Union within the Association Committee in Trade configuration established by Article 408 of 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, in relation to the adoption of the list of individuals to serve as arbitrators in dispute settlement shall be based on the draft Decision of that Committee attached to this Decision.
            
            
               2.Minor changes to the draft decision may be agreed to by the representatives of the  in the Association Committee in Trade configuration without further decision of the Council.
            
            
               Article 3
            
            
               This Decision shall enter into force on the day of its adoption.
            
            
               Done at Brussels,
            
            
               
                     For the Council
               
               
                     The President
               
            
         
         
            
                  
                     (1)
                  OJ L 261, 30.8.2014, p. 1.
               
               
                  
                     (2)
                  Council Decision of 16 June 2014 on the signing, on behalf of the European Union, and provisional application of 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 261, 30.8.2014, p. 1). 
               
            
      
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               EUROPEAN COMMISSION
            Brussels, 16.9.2015
            COM(2015) 456 final
            ANNEX
            to the
            Proposal for a Council Decision
            on the Union position to be taken in the Trade and Sustainable Development Sub-Committee and in the Association Committee in Trade configuration established by 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
            
               
         
         
            
               DRAFT
            
            
               DECISION No 1/2015 OF THE EU-GEORGIA trade and sustainable development Sub-Committee
            
            
               of … 2015
            
            
               adopting its rules of procedure
            
            
               THE EU-GEORGIA TRADE AND SUSTAINABLE DEVELOPMENT SUB-COMMITTEE, 
            
            
               Having regard to 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, (“the Agreement”) and in particular Article 240 thereof,
            
            
               Whereas:
            
            
               (1)In accordance with its Article 431, parts of the Agreement are applied provisionally as of 1 September 2014. 
            
            
               (2)Article 240 of the Agreement provides that the Trade and Sustainable Development Sub-Committee should oversee the implementation of Chapter 13 (Trade and Sustainable Development) of Title IV (Trade and Trade-related matters) of the Agreement. 
            
            
               (3)Article 240(3) of the Agreement provides that the Trade and Sustainable Development Sub-Committee should adopt its rules of procedure. 
            
            
               HAS DECIDED AS FOLLOWS: 
            
            
               Article 1
            
            
               The Rules of Procedure of the Trade and Sustainable Development Sub-Committee, as set out in the Appendix, are hereby adopted.
            
            
               Article 2
            
            
               This Decision shall enter into force on the date of its adoption.
            
            
               Done at …, …. 
            
            
                     
                  
                  
                     
                        For the Trade and Sustainable Development Sub-Committee
                     
                  
               
                     
                  
                  
                     
                        The Chair
                     
                  
               
               Appendix 
            
            
               Rules of Procedure of the EU-Georgia Trade and Sustainable Development Sub-Committee 
            
         
         
            
               Article 1
            
            
               General provisions
            
            
               1.The Trade and Sustainable Development Sub-Committee established in accordance with Article 240 of 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 ("the Agreement") shall assist the Association Committee in Trade configuration, as set out in Article 408(4) of the Agreement in the performance of its duties. 
            
            
               2.The Trade and Sustainable Development Sub-Committee shall perform the functions set out in Chapter 13 (Trade and Sustainable Development) of Title IV (Trade andtrade-related matters) of the Agreement. 
            
            
               3.The Trade and Sustainable Development SubCommittee shall be composed of representatives of the European Commission and of Georgia, responsible for trade and sustainable development matters.
            
            
               4.A representative of the European Commission or of Georgia who is responsible for trade and sustainable development matters shall act as Chair of the Trade and Sustainable Development SubCommittee in accordance with Article 2.
            
            
               5.The term “the Parties” in these Rules of Procedure shall be defined as provided for in Article 428 of the Agreement.
            
            
               Article 2
            
            
               Specific provisions
            
            
               1.Articles 2 to 14 of the Rules of Procedure of the EU-Georgia Association Committee shall apply, unless otherwise provided for in these Rules of Procedure. 
            
            
               2.The references to the Association Council shall be read as references to the Association Committee in Trade configuration. The references to the Association Committee or the Association Committee in Trade configuration shall be read as references to the Trade and Sustainable Development Sub-Committee.
            
            
               Article 3
            
            
               Meetings
            
            
               The Trade and Sustainable Development Sub-Committee shall meet as necessary. The Parties shall aim to meet once per year.
            
            
               Article 4
            
            
               Amendment of Rules of Procedure
            
            
               These Rules of Procedure may be amended by a decision of the EU-Georgia Trade and Sustainable Development Sub-Committee in accordance with Article 240 of the Agreement.
            
            
               DRAFT
            
            
               DECISION No 2/2015 OF THE EU-GEORGIA trade and sustainable development Sub-Committee
            
            
               of … 2015
            
         
         
            
               adopting the list of experts on trade and sustainable development
            
            
               THE EU-GEORGIA TRADE AND SUSTAINABLE DEVELOPMENT SUB-COMMITTEE, 
            
            
               Having regard to 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, (“the Agreement”) and in particular Article 243 thereof,
            
            
               Whereas:
            
            
               (1)In accordance with its Article 431, parts of the Agreement are applied provisionally as of 1 September 2014. 
            
            
               (2)Article 243(3) of the Agreement provides that the Trade and Sustainable Development Sub-Committee has to establish a list of at least 15 individuals who are willing and able to serve as experts in panel procedures. 
            
            
               HAS DECIDED AS FOLLOWS: 
            
            
               Article 1
            
            
               The list of individuals who are willing and able to serve as experts in panel procedures for the purposes of Article 243 of the Agreement is set out in the Appendix to this Decision.
            
            
               Article 2
            
            
               This Decision shall enter into force on the date of its adoption.
            
            
               Done at …, …. 
            
            
                     
                  
                  
                     
                        For the Trade and Sustainable Development Sub-Committee
                     
                  
               
                     
                  
                  
                     
                        The Chair
                     
                  
               
               Appendix
            
            
               LIST OF EXPERTS ON TRADE AND SUSTAINABLE DEVELOPMENT 
            
            
               Experts proposed by Georgia 
            
            
               1.
                     Nata Sturua
            
            
               2.
                     David Kikodze
            
            
               3.
                     Marina Shvangiradze
            
            
               4.
                     Ilia Osepashvili
            
         
         
            
               5.
                     Roin Migriauli
            
            
               Experts proposed by the EU 
            
            
               1.
                     Eddy Laurijssen
            
            
               2.
                     Jorge Cardona 
            
            
               3.
                     Karin Lukas 
            
            
               4.
                     Hélène Ruiz Fabri 
            
            
               5.
                     Laurence Boisson De Chazournes 
            
            
               6.
                     Geert Van Calster 
            
            
               Chairpersons 
            
            
               1.
                     Jill Murray (Australia)
            
            
               2.
                     Janice Bellace (USA)
            
            
               3.
                     Ross Wilson (New Zealand)
            
            
               4.
                     Arthur Appleton (USA)
            
            
               5.
                     Nathalie Bernasconi (Switzerland)
            
            
               Draft 
            
            
               Decision No 3/2015 of the EU-Georgia Association Committee in Trade configuration
            
            
               of …2015 
            
            
               on the establishment of the list of arbitrators referred to in Article 268(1) of 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
            
            
               THE Association COMMITTEE IN TRADE CONFIGURATION,
            
            
               Having regard to 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 ("the Agreement"), signed in Brussels on 27 June 2014, and in particular Article 268(1) thereof,
            
         
         
            
               Whereas:
            
            
               (1)In accordance with its Article 431, parts of the Agreement are applied provisionally as of 1 September 2014. 
            
            
               (2)Article 408(3) of the Agreement provides that the Association Committee has the power to adopt decisions as provided for in the Agreement.
            
            
               (3)Article 268(1) of the Agreement provides that the Association Committee in Trade configuration has to establish a list of at least 15 individuals who are willing and able to serve as arbitrators.
            
            
               HAS ADOPTED THIS DECISION:
            
            
               Sole Article
            
            
               1.The lists of individuals who may serve as arbitrators for the purposes of Article 268(1) of the Agreement are set out in the Appendix to this Decision.
            
            
               2.This Decision shall enter into force on the day of its adoption.
            
            
               Done at …, …
            
            
                     
                  
                  
                     
                        For the Association Committee in Trade configuration
                     
                  
               
                     
                  
                  
                     
                        The Chair
                     
                  
               
               Appendix
            
            
               LIST OF ARBITRATORS 
            
            
               Arbitrators proposed by Georgia 
            
            
               1.
                     Christian Häberli (Switzerland)
            
            
               2.
                     Donald McRae (Canada)
            
            
               3.
                     John Adank (New Zealand) 
            
            
               4.
                     Ronald Saborio (Costa Rica)
            
            
               5.
                     Thomas Cottier (Switzerland)
            
            
               Arbitrators proposed by the EU 
            
            
               1.
                     Claus–Dieter Ehlermann 
            
         
         
            
               2.
                     Giorgio Saccerdoti
            
            
               3.
                     Jacques Bourgeois
            
            
               4.
                     Pieter Jan Kuijper 
            
            
               5.
                     Ramon Torrent
            
            
               Chairpersons
            
            
               1.David Unterhalter (South Africa)
            
            
               2.
                     Merit Janow (US)
            
            
               3.
                     Helge Seland (Norway)
            
            
               4.
                     Leora Blumberg (South Africa)
            
            
               5.
                     William Davey (US)