PURPOSE: to conclude a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, extending the provisions of the said Agreement to bilateral trade in textiles.

LEGISLATIVE ACT: Council Decision (EU) 2017/594 of 21 March 2017 on the conclusion of a Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement

BACKGROUND: on 9 June 2010 the Council authorised the Commission to enter into negotiations with Uzbekistan with a view to amending the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, so as to ensure that the principles applicable to trade in other goods are formally extended to trade in textile products.

These negotiations were successfully concluded and the Protocol amending the Agreement by deleting Article 16 and all references to it was initialled on 1 July 2010.

In the context of the negotiations, it was agreed to proceed with a clean-up of the agreement by abolishing an obsolete technical provision which expired in 1998 and the corresponding annex referring to this provision.

In accordance with Council Decision 2011/250/EU, the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, amending that Agreement in order to extend its provisions to bilateral trade in textiles, in view of the expiry of the bilateral textiles agreement, was signed on 7 April 2011, subject to its conclusion.

The Protocol should now be approved on behalf of the European Union.

CONTENT: With this proposal for a decision, the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, amending that Agreement in order to extend its provisions to bilateral trade in textiles, taking into account the expiry of the bilateral textiles agreement, is hereby approved on behalf of the Union.

The text of the Protocol is attached to the Decision.

ENTRY INTO FORCE: the Decision enters into force on 21.3.2017.

The European Parliament adopted by 564 votes to 100, with 41 abstentions, a legislative resolution on the draft Council decision on the conclusion of a Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement.

In line with its Committee on International Trade and the Committee on Foreign Affairs, Parliament gave its consent to the conclusion of the Protocol.

The Protocol amending the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Uzbekistan extends the provisions of the Agreement to the bilateral textiles Agreement. Ratifying the textiles protocol would mean including textiles in the Partnership and Cooperation Agreement (PCA) concluded between Uzbekistan and the EU in 1999.

The Committee on International Trade adopted the report by Maria ARENA (S&D, BE) on the draft Council decision on the conclusion of a Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement.

The committee called on the Parliament to give its consent to the conclusion of the Protocol .

In the short justification accompanying the report, Members recalled that ratifying the textiles protocol would mean including textiles in the Partnership and Cooperation Agreement (PCA) concluded between Uzbekistan and the EU in 1999.

That title foresees:

the according of MFN status on a reciprocal basis, trade free of quantitative restrictions, the principle of free transit, trade at market-related prices, a safeguard clause, prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security.

Members recalled that in December 2011, Parliament adopted an interim report postponing its decision on consent pending an improvement in the human rights situation in Uzbekistan , particularly in relation to the use of child labour and forced labour in the annual cotton harvest. That interim report set out 14 recommendations.

Since its adoption, a dialogue has been established with Uzbekistan that has involved annual hearings in which a number of stakeholders have taken part, including civil society, the Uzbek authorities and European and international institutions. There has also been close cooperation between Uzbekistan and the International Labour Organization to assess the action taken to end the use of child labour and forced labour in Uzbekistan’s annual cotton harvest. The ILO carried out its first cotton harvest monitoring mission in 2013, and repeated the exercise in 2014 and 2015. A monitoring mission is again planned for 2016, with particular emphasis on the issue of forced labour.

The report on the ILO’s last monitoring mission, from 14 September to 31 October 2015, revealed that the practice of using child labour in cotton harvesting had been virtually eradicated .

The same conclusions could not, however, be drawn as regards forced labour.

The efforts of the Uzbek authorities should also be encouraged.

In the context of the ongoing dialogue and cooperation, the committee called for Parliament to give its consent to the textile protocol with Uzbekistan. However, if the Uzbek authorities fail to follow through on their commitment to abolish forced labour, Parliament reserves the right to ask the Commission and the Council to activate Articles 2 and 95 of the PCA, allowing general or specific measures to be taken in the event of a failure to respect human rights .

The European Parliament adopted by 603 votes to 8, with 11 abstentions, an interim report on the draft Council decision on the conclusion of a Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement.

Parliament states that it will only consider the consent if the ILO observers have been granted access by the Uzbek authorities to undertake close and unhindered monitoring and have confirmed that concrete reforms have been implemented and yielded substantial results in such a way that the practice of forced labour and child labour is effectively in the process of being eradicated.

In its interim resolution, Parliament recalls that the Union is one of the main importers of cotton from Uzbekistan, estimates of which range from importing 6% to 23% of Uzbek cotton exports over the past ten years. It recalls that on the basis of the principles and objectives of the Union's external action, the Union has the moral responsibility to use its leverage , as one of the main trading partners and a major importer of cotton from Uzbekistan, to stop the use of forced child labour in this country. Therefore, the Protocol cannot be treated as a purely technical agreement, as long as human rights concerns, such as forced child labour, are raised specifically with regard to cotton harvest.

Parliament also underlines:

the well-documented allegations and broad consensus among the United Nations bodies, the UNICEF, the representative organizations of employers and workers and NGOs stating that, despite the legal commitments made by the Government of Uzbekistan to eradicate forced child labour, in practice, year after year an estimated number of 0.5 to 1.5 million school-aged children are still forced to take part in the hazardous work in the cotton harvest for up to three months each year;

independent international observers have gathered evidence of forced labour and in particular forced child labour as a systematic and organised practice involving pressure on teachers and families with the participation of the police and security forces; so far the Government of Uzbekistan has refused access to independent monitoring missions the purpose of which was to bring out the facts and provide information on the duration of the Autumn harvest period, the working health conditions of students, their ages and where relevant the risk of punishments for disobedience.

Against this background, Parliament requests the Council and the Commission to:

strongly condemn the use of forced child labour in Uzbekistan ; strongly support the ILO’s call on the Government of Uzbekistan to accept a high-level tripartite observer mission that would have full freedom of movement and timely access to all locations and relevant parties, including in the cotton fields, in order to assess the implementation of the ILO Convention; urge the Uzbek President Islam Karimov to allow an ILO monitoring mission into the country to address the issue of forced child labour practices; urge the Government of Uzbekistan to allow an ILO monitoring mission and to ensure that the practice of forced labour and forced child labour is effectively in the process of being eradicated at national, viloyat and local level; remind the Uzbek authorities that despite the fact that human rights principles are included in the text of the Constitution of the Republic of Uzbekistan and that Uzbekistan has signed and ratified most UN conventions relating to human rights, civil and political rights and the rights of the child, this formal set of legal acts still needs to be implemented effectively; contribute through policy dialogue and assistance programmes to market-oriented reforms of Uzbekistan's agricultural sector; ensure that pursuing the end to the practice of forced child labour in cotton production will be a priority of the Union human rights strategy in the Union Delegation in Tashkent. Members insist that this should be reflected in policy, monitoring, reporting, staffing and financial assistance; study and if appropriate submit to the European Parliament a legislative proposal on an effective traceability mechanism for the goods being produced through forced child labour; support the Parliament’s call to cotton traders and retailers to desist from buying cotton produced by forced child labour from Uzbekistan and to notify consumers and all of their suppliers of this commitment.

Parliament stresses that if ILO monitoring bodies conclude that serious and systematic breach of Uzbekistan's obligations exists, the Commission should consider initiating an investigation into the temporary withdrawal of the GSP if all other requirements are met .

Parliament outlines the importance of the relations between the Union and Uzbekistan on the basis of the PCA and its democratic and human rights principles. It reiterates the Union's commitment to further and deepen bilateral relations, which include trade, as well as all areas related to democratic principles, respect for human and fundamental rights and the rule of law. In this context, Parliament requests to be regularly informed with substantial information on the situation in Uzbekistan, especially with regard to the eradication of forced child labour.

The resolution concludes that Parliament will only consider the consent if the ILO observers, have been granted access by the Uzbek authorities to undertake close and unhindered monitoring and have confirmed that concrete reforms have been implemented and yielded substantial results in such a way that the practice of forced labour and child labour is effectively in the process of being eradicated at national, viloyat and local level .

The Committee on International Trade adopted the interim report drafted by George Sabin CUTAŞ (S&D, RO) on the draft Council decision on the conclusion of a Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement. The committee considers that it is not appropriate for the European to give its consent to the Protocol amending a partnership and cooperation agreement for the following reasons:

the well-documented allegations and broad consensus among the United Nations bodies, the UNICEF, the representative organizations of employers and workers and NGOs stating that, despite the legal commitments made by the Government of Uzbekistan to eradicate forced child labour, in practice, year after year an estimated number of 0.5 to 1.5 million school-aged children are still forced to take part in the hazardous work in the cotton harvest for up to three months each year; independent international observers have gathered evidence of forced labour and in particular forced child labour as a systematic and organised practice involving pressure on teachers and families with the participation of the police and security forces; so far the Government of Uzbekistan has refused access to independent monitoring missions the purpose of which was to bring out the facts and provide information on the duration of the Autumn harvest period, the working health conditions of students, their ages and where relevant the risk of punishments for disobedience.

Against this background, Members recommend that the European Parliament requests the Council and the Commission to:

strongly condemn the use of forced child labour in Uzbekistan ; strongly support the ILO’s call on the Government of Uzbekistan to accept a high-level tripartite observer mission that would have full freedom of movement and timely access to all locations and relevant parties, including in the cotton fields, in order to assess the implementation of the ILO Convention; urge the Uzbek President Islam Karimov to allow an ILO monitoring mission into the country to address the issue of forced child labour practices; urge the Government of Uzbekistan to allow an ILO monitoring mission and to ensure that the practice of forced labour and forced child labour is effectively in the process of being eradicated at national, viloyat and local level; remind the Uzbek authorities that despite the fact that human rights principles are included in the text of the Constitution of the Republic of Uzbekistan and that Uzbekistan has signed and ratified most UN conventions relating to human rights, civil and political rights and the rights of the child, this formal set of legal acts still needs to be implemented effectively; contribute through policy dialogue and assistance programmes to market-oriented reforms of Uzbekistan's agricultural sector; ensure that pursuing the end to the practice of forced child labour in cotton production will be a priority of the Union human rights strategy in the Union Delegation in Tashkent. Members insist that this should be reflected in policy, monitoring, reporting, staffing and financial assistance; study and if appropriate submit to the European Parliament a legislative proposal on an effective traceability mechanism for the goods being produced through forced child labour; support the Parliament’s call to cotton traders and retailers to desist from buying cotton produced by forced child labour from Uzbekistan and to notify consumers and all of their suppliers of this commitment.

Members stress that if ILO monitoring bodies conclude that serious and systematic breach of Uzbekistan's obligations exists, the Commission should consider initiating an investigation into the temporary withdrawal of the GSP if all other requirements are met .

Members outline the importance of the relations between the Union and Uzbekistan on the basis of the PCA and its democratic and human rights principles. They reiterate the Union's commitment to further and deepen bilateral relations, which include trade, as well as all areas related to democratic principles, respect for human and fundamental rights and the rule of law. In this context, Members call for the Parliament to be provided regularly with substantial information on the situation in Uzbekistan, especially with regard to the eradication of forced child labour.

Lastly, the report concludes that Parliament will only consider the consent if the ILO observers, have been granted access by the Uzbek authorities to undertake close and unhindered monitoring and have confirmed that concrete reforms have been implemented and yielded substantial results in such a way that the practice of forced labour and child labour is effectively in the process of being eradicated. Further discussion with the Commission and the Council are requested.

PURPOSE: to conclude a Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement.

PROPOSED ACT: Council Decision.

BACKGROUND: on 9 June 2010, the Council authorised the Commission to enter into negotiations with Uzbekistan to amend the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, on the one part, and the Republic of Uzbekistan, of the other part, so as to ensure that the principles which apply to trade in other goods are also extended formally to trade in textile products. These negotiations have been successfully concluded and the Protocol amending the Agreement by deleting Article 16, and all references thereto, was initialled on 1 July 2010.

In the framework of the negotiations it was agreed between both parties to carry out a clean up exercise and to delete an obsolete technical provision that expired in 1998 and the corresponding Annex referring to it

In accordance with a Council Decision, the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement, was signed, subject to its conclusion.

It is now necessary to conclude the Protocol on behalf of the Union.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASIS: Article 207, in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: under this proposal, the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement, is hereby approved on behalf of the Union.

The text of the protocol is attached to the proposal.

For further details of this Protocol, please refer to the summary of the previous initial legislative document dated 15/11/2010.

BUDGETARY IMPLICATIONS: this proposal has no implications for the Union.

PURPOSE: to conclude a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, extending the provisions of the Partnership and Cooperation Agreement to bilateral trade in textiles.

PROPOSED ACT: Council Decision.

BACKGROUND: on 9 June 2010 the Council authorised the Commission to enter into negotiations with Uzbekistan to amend the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, on the one part, and Uzbekistan, of the other part, so as to ensure that the principles which apply to trade in other goods are also extended formally to trade in textile products. These negotiations have been successfully concluded and the Protocol amending the Agreement by deleting Article 16, and all references thereto, was initialled on 1 July 2010.

In the framework of the negotiations it was agreed between both parties to carry out a clean up exercise and to delete an obsolete technical provision that expired in 1998 and the corresponding Annex referring to it.

The Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement was signed by the Parties, subject to its conclusion at a later date.

It is now necessary to conclude this Protocol on behalf of the European Union.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASIS: Article 207, in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: the purpose of this proposal is to approve, on behalf of the European Union, the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, amending the Agreement in order to extend the provisions of the Agreement to bilateral trade in textiles, taking account of the expiry of the bilateral textiles Agreement.

The text of the Protocol is attached to the Decision. For further details, please refer to the summary of the previous initial legislative document dated 15/11/2010.

BUDGETARY IMPLICATION: this proposal has no implication on the EU budget.

PURPOSE: to conclude a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, extending the provisions of the Partnership and Cooperation Agreement to bilateral trade in textiles.

PROPOSED ACT: Council Decision.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASIS: Article 207, in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: the Partnership and Cooperation Agreement ( PCA ) between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, entered into force on 1 July 1999.

This agreement contains a provision according to which its trade provisions – namely, most favoured nation (MFN) trade conditions and abolition of quantitative restrictions – do not apply to trade in textile products, which was regulated by a separate bilateral agreement. This bilateral agreement, in force since 1 January 2000, lapsed on 31 December 2004. While in practice trade in textiles between the EU and Uzbekistan continued to proceed smoothly since 1 January 2005, legal certainty needs to be ensured.

On 9 June 2010, the Council authorised the Commission to enter into negotiations with the Republic of Uzbekistan to amend the PCA, so as to ensure that the principles which apply to trade in other goods are also extended formally to trade in textile products. These negotiations have been successfully concluded and the Protocol amending the PCA by abrogating Article 16 and all references thereto, was initialled on 1 July 2010.

In addition, some updates of a technical nature have been introduced. This has taken the form of the deletion of Article 8(3) and Annex I, stemming from the time of the dissolution of the

USSR, and which had expired in 1998.

The Council is invited to adopt the attached proposed Decision on the conclusion of a Protocol to the PCA, which shall form an integral part of the PCA.

A separate proposal on the signature of the Protocol is also being submitted.

BUDGETARY IMPLICATION: this proposal has no implication for the EU budget.