Activities of Helmut SCHOLZ related to 2023/0260R(NLE)
Shadow reports (1)
INTERIM REPORT on the proposal for a Council decision on the conclusion, on behalf of the European Union, of the Advanced Framework Agreement between the European Union and its Member States, of the one part, and the Republic of Chile, of the other part
Amendments (25)
Amendment 6 #
Motion for a resolution
Citation 15 a (new)
Citation 15 a (new)
– having regard to its resolution of 23 June 2022 on the Future of EU international investment policy,
Amendment 13 #
Motion for a resolution
Citation 18 a (new)
Citation 18 a (new)
– having regard to the National Lithium Strategy presented by the Chilean government on 20 April 2023,
Amendment 23 #
Motion for a resolution
Recital C
Recital C
C. whereas the EU is Chile’s third largest trading partner and its largest source of foreign direct investment; whereas the Sustainability Impact Assessment predicted that for the EU, the largest export boost would be in machinery and automotive sectors, while Chile would increase its exports in agriculture (vegetable oils and fats, and vegetables, fruits and nuts), fishing, the sector of beverages and tobacco; whereas the EU and Chile share a commitment to promoting an open, sustainable, rules- and values-based multilateral trading system with the World Trade Organization (WTO) at its core;
Amendment 26 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
C a. whereas the economic relationship between Chile and the EU has been asymmetric and based on unequal terms of trade; whereas 90 percent of the goods the EU imports from Chile are primary products and raw materials, while the majority of EU exports across the Atlantic are medium and high technology manufactured goods; whereas a re- primarisation of exports has been the driving force behind the Chilean economic growth;
Amendment 27 #
Motion for a resolution
Recital C b (new)
Recital C b (new)
C b. whereas the latest UN reports indicates 1a that Latin America and the Caribbean's share in global manufacturing exports has not surpassed 5% in the last 20 years, which shows that the region has a persistent, growing trade deficit in manufacturing exports; _________________ 1a https://www.cepal.org/en/pressreleases/go ods-exports-latin-america-and-caribbean- increase-20-2022-growth-down-previous- year http://repositorio.cepal.org/handle/11362/ 48651
Amendment 29 #
Motion for a resolution
Recital D c (new)
Recital D c (new)
D c. whereas the concerns of many Member States and the public in respect of Investor-State Disputes, even under the reformed ICS mechanism, remain unresolved; whereas the withdrawal by Member States from the Energy Charter Treaty reflects the governments concerns in respect of Investor-State Dispute on climate action; whereas the investment protection provisions included in this FTA continue protecting investment in fossil fuels;
Amendment 31 #
Motion for a resolution
Recital D
Recital D
D. whereas Chile is one of the world’s most open economies and depends strongly on international trade; whereas Chile is at the same time one of the three countries with the highest level of social inequality in Latin America, with the wealthiest 10% of the population capturing 60% of the average national income;
Amendment 37 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
D a. whereas Chile already provides around 80% of all EU imports of lithium at zero tariff; whereas Europe's growing need for critical raw materials could lead to the expansion of mining in Chile leading to increased environmental pressure on local communities and the environment; whereas the modernised trade agreement should not interfere with Chile’s ability and strategic objective to build up its own domestic industrial capacity in this sector;
Amendment 40 #
Motion for a resolution
Recital D b (new)
Recital D b (new)
D b. whereas achieving the United Nations Sustainable Development Goals (“SDGs”) and reaching the world’s climate mitigation and adaptation needs will require governments to have the policy space to regulate investments; whereas investment protection agreements could restrict the policy space required to achieve these goals;
Amendment 41 #
Motion for a resolution
Recital D d (new)
Recital D d (new)
D d. whereas the SIA warned that an increase in agricultural production as a result of the modernised agreement could negatively impact on the right to water as agriculture sectors with growing export potential are relatively water intensive, while Chile lives the longest drought in history and more than half of Chile’s 19 million population live in areas with ‘severe water scarcity’; whereas Chile has developed a fruit sector based on a model of fresh seasonal products available all year round, targeted specifically for export; whereas this model primarily benefits large scale, commercial farmers offering to the local population only precarious employment on a seasonal basis; whereas sectors such as the grape industry are based on a monoculture agribusiness model that resulted in the destruction of traditional farming based on local livelihoods, with adverse effects on biodiversity;
Amendment 53 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Emphasises that the EU’s strategy for Latin America and the Caribbean needs to be implemented swiftly based on joint priorities; highlights the importance of joining forces with CELAC countries to promotguarantee peace and security, democracy, the rule of law and human rights, as well as to tackle global challenges such as climate change, rising inequalities and to promote social justice;
Amendment 61 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Notes that the 2002 EU-Chile Association Agreement has been a success story, as it provides a clear legal framework for regular dialogues and allows discussion on many areas of common interest;
Amendment 66 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Welcomes the fact that the Agreement contains robust provisions on democratic principles, human rights and the rule of law, as well as aregrets however the lack of commitment to protect the rights of indigenous peoples such as the respect of the Free, Prior and Informed Consent (FPIC) obligations;
Amendment 87 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Notes that over 95 % of trade between the EU and Chile will be duty-free under the Agreement; regrets that market openings are not linked to compliance with stricter environmental and social standards; points out that 216 European geographical indications will be protected under the new agreement, in addition to the 1 573 wines and 235 spirit drinks already protected;
Amendment 89 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19 a. Stresses that both the EU and Chile have committed to make Europe and Chile climate-neutral by 2050; stresses that the energy mix used in the maritime sector relies currently almost entirely on fossil fuels; notes that in order to achieve climate neutrality, the EU must reduce transport emissions, including those from maritime transport, by 90% by 2050 (compared to 1990 levels); is therefore concerned that greenhouse gas emissions from maritime transport of products from Chile interfere with the EU's climate commitments and obligations under the Paris Agreement;
Amendment 102 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Underlines the relevance of cooperating in the area of sustainable food systems; welcomes the new stand-alone chapter on Sustainable Food Systems, in which the EU and Chile agree on a range of cooperation priorities on aspects such as antibiotics, animal welfare, the sustainability of the food chain and on pesticides; notes that citizens' expectations are evolving and leading to significant changes in the food market, with a consequent increase in demand for locally produced food; stresses the importance of locally produced food, its value to farmers and the significant positive contributions it can make to the environment; is concerned that the liberalisation commitments in this agreement are not in line with the objectives of the Farm to Fork Strategy; calls on the Commission and the Member States to ensure that the trade agreement does not undermine the development of local food strategies and to launch initiatives in favour of short supply channels;
Amendment 110 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Emphasises that the provisions on investment liberalisation and investment protection will further boost investment in both directions by guaranteeing that investors from both sides will be granted fair and non-discriminatory treatment; stresses that these provisions are fully aligned with the EU’s reformed approach on investment protectionmight boost investment in both directions; notes that the provisions on investment protection will guarantee that investors will be granted non-discriminatory treatment but there is no evidence of a direct causal effect between the signing of investment protection agreements and attraction of foreign direct investment; stresses that investment protection provisions in this agreement are not aligned with the EP's vision of the future of EU international investment policy; warns of the potential impact of the investment protection clauses such as “fair and equitable treatment” and “indirect expropriation” on governments’ rights to advance economic, social, and environmental policies; is concerned about the broad scope of the definition of covered investment; regrets that the agreement protects fossil fuel investors; points out that under the Investment Court System (ICS) only investors can initiate lawsuits against States and the bulk of arbitrators fees will still be paid on a case by case basis, maintaining an incentive to rule in favour of the investor; urges the Commission to align any future Investment protection provisions with the European Parliament's position of the future of EU investment; calls on both Parties to review the Investment protection provisions in order to exclude the protection of fossil fuels investments and to carve out governments' climate policies;
Amendment 117 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Is convinced that the new market access commitments concerning trade in services will open up new business opportunities for EU and Chilean companies; notes that the Agreement contains a state-of-the-art chapter on digital trade that will facilitate elincludes ambitious articles on free flow of data and the protectrionic commerce and protect customers online of source code; shares its concern about its impact on the need for transparency of algorithms and data sovereignty; asks for an impact assessment of this provision in relation to EU's new legislation such as the AI Act;
Amendment 119 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. HighlightsIs concerned that the Agreement does not preserves the right of governments to regulate in the public interest, for example in order to protect public health, consumers or the environment;
Amendment 124 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Emphasises that EU and Chilean companies will be able to benefit from improved access to public procurement markets for goods, services and work at (sub-)central level; highlights the enhanced transparency requirements; regrets that governments may be losing a legitimate tool to stimulate domestic production, consumption and a national industrial strategy;
Amendment 127 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Highlights that Chile has the potential to play a major role in the global green and just transitions; notes that the development and scaling up of the Chilean renewable energy sector will require massive investments, including from EU companies; welcomes the creation of a European initiative for the development of renewable hydrogen in Chile; notes that developing green hydrogen production will require policy space to develop an industrial policy and to direct and scrutinise by Parliaments, stakeholders and citizens investment funds, such as those provided by the Global Gateway;
Amendment 133 #
Motion for a resolution
Paragraph 28
Paragraph 28
28. EmphasisesTakes note of Chile’s leading role as a major supplier of critical raw materials, including those that are essential for the green and digital transitions, such as lithium and copper; stressbelieves that the Agreement will ensure non-discriminatory access of EU companies to ChileEU should actively support Chile in its efforts to move up the value chain; is concerned that the Energy and raw materials, while leaving sufficient policy space for Chile to create local added value; believes that the EU should actively support Chile in its efforts to move up the value chain; is convinced that the exploitation of raw materials should be carried out in an environmentally and socially sustainable manner, and that it should benefit local communities, including indigenous communitie chapter may undermine Chile's national industrialisation policy; acknowledges that, currently, Chile reserves 25% of the production for locally established companies at preferential prices; regrets that the trade agreement will take away this strategic policy tool, and will thereby jeopardise Chile's ability to develop a national industry of lithium; is convinced that the exploitation of raw materials should be carried out in an environmentally and socially sustainable manner, and that it should benefit local communities, including indigenous communities; takes note that the SIA pointed out that lithium mining in Chile concentrates in water scarce regions, areas that are mostly populated by rural and indigenous communities with the potential to undermining their rights to a clean environment, to water, and consequently, to health; regrets that current lithium mining projects do not require the involvement or consultation of indigenous populations as stipulated by ILO convention 169 on the Rights of Indigenous Peoples; takes note that the SIA reported a lack of sufficient consultation mechanisms with affected communities and in particular indigenous populations in relation to lithium mining projects;
Amendment 140 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Welcomes the fact that the chapter on trade and sustainable development (TSD) contains ambitious and binding commitments on environmental and labour standards; regrets, however, that the TSD chapter is not in line with the latest TSD Review and does not contain binding commitments and sanctions; notes that in their joint statement on trade and sustainable development attached to the Agreement, the EU and Chile commit to reviewing the Agreement’s TSD provisions upon its entry into force; believes the commitments made in the trade and sustainable development chapter are not sufficient to balance the social and environmental risks posed by the proposed agreed trade liberalizations;
Amendment 149 #
Motion for a resolution
Paragraph 30
Paragraph 30
30. Welcomes the inclusion ofNotes that the rights of indigenous peoples are not effectively guaranteed under the TSD chapter; notdeplores that ILO Convention No 169 isand the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) are not explicitly mentioned; acknowledges that thisese convention iss are key for upholding the rights of indigenous peoples in Chile and the EU when it comes to our trade relations; stresses the importance of abiding by ILO Convention No 169 and UNDRIP;
Amendment 154 #
Motion for a resolution
Paragraph 33
Paragraph 33
33. Welcomes an institutionalised mechanism for involving civil society organisations in the implementation of the Agreement; calls on the Commission and on the Chilean authorities to ensure the active and meaningful involvement of civil society, including trade unions and indigenous representatives, in the monitoring of the Agreement’s implementation beyond the TSD chapter; calls for sufficient financial resources and technical assistance to be allocated to the Domestic advisory groups (DAGs) to be able to properly carry out their tasks;