Source: https://europeanlawblog.eu/2013/09/06/the-cjeu-s-volte-face-on-trips-in-light-of-treaty-modifications/
Timestamp: 2020-01-20 12:39:06
Document Index: 661640676

Matched Legal Cases: ['CJEU ', 'CJEU ', 'CJEU ', 'CJEU ', 'CJEU ', 'CJEU ', 'CJEU ', 'CJEU ', 'CJEU ']

The CJEU’ s volte-face on TRIPS in light of Treaty modifications – European Law Blog
6 September 2013/ By Laurens Ankersmit	/ 1
These are classic conferral of powers arguments, noting simultaneously the importance of division of competences and procedure on the one hand, and trying to delimit the scope of the CCP vis-à-vis the internal market legal basis on the other hand. The main argument was that the TRIPS Agreement did not specifically relate to international trade. Apparently, only if an agreement (and TRIPS in particular, note that TRIPS stands for trade related aspects of intellectual property) specifically relates to international trade, it falls within the scope of the CCP, and as such cannot be used to circumvent article 114 TFEU or other legal basis for that matter.
Treaty amendments and a fresh start with Case C-414/11
In subsequent Treaty amendments the old article 113 EC has been amended as to include ‘commercial aspects of intellectual property’ as part of the Common Commercial Policy. The question before the Court in this case was thus whether ‘that significant development of primary law’ would make the Court change its views expressed in Opinion 1/94. In fact, it did so quite substantially. The Court first stated that Opinion 1/94 was no longer relevant in this case (para 48) and proceeded with a fresh start on whether the TRIPS agreement fell within exclusive competence.
The CJEU then proceeded with a useful summary of its case law as well as some innovative aspects on the scope of the CCP. It started by noting (and this is new) that as the new provision mentions that the CCP operates within the context of the Union’s external action, ‘that policy relates to trade with non-member countries, not to trade in the internal market.’ (para 50) It then continues to state that
This is actually not very far off from what the CJEU held in Opinion 1/94. However, it then proceeded to interpret the new addition in article 207 TFEU of ‘commercial aspects of intellectual property’ in light of this case-law. The CJEU thus stated that ‘[i]t follows that, of the rules adopted by the European Union in the field of intellectual property, only those with a specific link to international trade are capable of falling within the concept of ‘commercial aspects of intellectual property’ in Article 207(1) TFEU and hence the field of the common commercial policy.’ (para 52).
Enter the volte-face:
Thus, whereas in Opinion 1/94 the CJEU had concluded that most of TRIPS did not specifically relate to international trade, here it stated that there was a specific link with international trade and thus the agreement did fall within the scope of the CCP. The CJEU mentioned the WTO Dispute Settlement Procedures which emphasized the specific link with international trade, adding thereby an argument it had not used in Opinion 1/94. It proceeded with a textual argument by noting that according to article 207 (1) TFEU ‘the ‘commercial aspects of intellectual property’ are now fully part of the common commercial policy; the authors of the FEU Treaty could not have been unaware that the terms thus used in that provision correspond almost literally to the very title of the TRIPs Agreement.’ I find this quite ironic in light of paragraph 57 of Opinion 1/94 where the CJEU ignored the very title of TRIPS to conclude that it dealt with harmonization, not trade regulation.
The most interesting part, in my opinion, is where the CJEU departs from its concerns over potential abuse of 207 TFEU to harmonize laws internally:
This is a somewhat logical conclusion in my opinion. Let’s assume hypothetically that the EU has adopted a certain product rule, for example regulating the percentage of carbon allowed in widgets, and this product rule creates significant barriers to trade between the EU and the US which has its own product rule on widgets. It would make sense that an agreement between the EU and the US to set one standard or to agree on mutual recognition would fall within the scope of the CCP, since such an agreement relates specifically to international trade and has a direct and immediate impact on trade between the other countries. In that respect, the EU legislator, when regulating the EU internal market, will need to comply with the international agreement and cannot deviate from it. It is clear then that the CCP can have consequences for the exercise of competences in other fields, but this is the same for instance if a regulation would be adopted under article 207 TFEU. That regulation needs to take into account international agreements concluded by the EU on the basis of other legal bases.
However, the CJEU did not truly address the question of potential abuse of article 207 TFEU, and I will be curious to discover whether the CJEU might invalidate the conclusion of, let’s say, an international agreement between Liechtenstein and the EU which entails substantial harmonization of rules on tobacco products. This would arguably be struck down on the basis that such a rule does not specifically relate to international trade, but I think there is a pretty grey area between the Liechtenstein example and the US example.
EU constitutional law / External Relations
Pingback: The CJEU’ s volte-face on TRIPS in light ...