BETA

Procedure completed



2012/2225(INI) Trade and investment-driven growth for developing countries
Next event: Vote in committee, 1st reading/single reading 2013/02/21 more...
RoleCommitteeRapporteurShadows
Opinion AFET
Opinion AGRI
Opinion DEVE SVENSSON Alf (EPP)
Opinion ECON
Opinion EMPL
Opinion IMCO
Lead INTA SAÏFI Tokia (EPP) BADIA I CUTCHET Maria (S&D), BEARDER Catherine (ALDE), KELLER Franziska (Verts/ALE), STURDY Robert (ECR), SCHOLZ Helmut (GUE/NGL)
Opinion ITRE
Opinion JURI
Opinion PECH
Opinion TRAN
Lead committee dossier: INTA/7/08738
Legal Basis RoP 048

Activites

  • 2013/04/16 Text adopted by Parliament, single reading
    • T7-0120/2013
  • 2013/04/15 Debate in Parliament
  • 2013/04/08 Committee report tabled for plenary, single reading
    • A7-0053/2013 summary
  • 2013/02/21 Vote in committee, 1st reading/single reading
  • 2013/01/31 Amendments tabled in committee
  • 2012/11/09 Committee draft report
  • 2012/09/13 Committee referral announced in Parliament, 1st reading/single reading
  • 2012/04/17 Non-legislative basic document
    • COM(2012)0022 summary
    • DG {'url': 'http://ec.europa.eu/trade/', 'title': 'Trade'}, DE GUCHT Karel

Documents

  • Non-legislative basic document published: COM(2012)0022
  • Committee draft report: PE500.468
  • Amendments tabled in committee: PE504.162
  • Committee report tabled for plenary, single reading: A7-0053/2013
  • Decision by Parliament, 1st reading/single reading: T7-0120/2013
AmendmentsDossier
29 2012/2225(INI)
2012/12/19 DEVE 29 amendments...
source: PE-502.087

History

(these mark the time of scraping, not the official date of the change)

activities/6/type
Old
Indicative plenary sitting date, 1st reading/single reading
New
Debate in Parliament
activities/7/docs
  • type: Decision by Parliament, 1st reading/single reading title: T7-0120/2013
activities/7/type
Old
Vote in plenary scheduled
New
Text adopted by Parliament, single reading
procedure/stage_reached
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Awaiting Parliament 1st reading / single reading / budget 1st stage
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Procedure completed
activities/5/docs/0/text/0
Old

The Committee on Economic and Monetary Affairs adopted the report by Tokia SAÏFI (EPP, FR) on trade and investment-driven growth for developing countries in response to a Commission communication ‘Trade, growth and development – tailoring trade and investment policy for those countries most in need’.

The Committee on International Trade, exercising its prerogatives of an associated committee in accordance with Rule 50 of Parliament’s Rules of Procedure, was also consulted for an opinion on this report.

The report supports the Commission‘s aim of enhancing synergies between trade and development policies, recommending that it take account of beneficiary countries’ needs and capacities, encouraging instruments such as regional integration and give priority to measures aimed at:

  • promoting sustainable and inclusive development;
  • creating jobs and reinforcing skills and the development of human capital while reducing social inequalities. Members stress the importance of decent wage levels and decent workplace safety standards, reminding the Commission of its communication ‘Promoting Decent Work for All’;
  • improving resistance to economic shocks,
  • supporting the development of the private sector, in particular small operators, including micro businesses and small and medium-sized enterprises, in order to foster their participation in trade and investment at local, regional, cross-border, bilateral and multilateral level;
  • improving fiscal governance and the fight against corruption, tax fraud and evasion, money laundering and tax havens, including by establishing information exchanges and supervisory mechanisms on corporate payments;
  • improving the trade and investment climate, including the implementation of trade facilitation measures,
  • diversifying trade and investment flows; and,
  • providing the necessary technical assistance to ensure the proper development of these measures.

The European Union is invited to:

  • explore possible areas of cooperation for sustainable development, in order to maximise the contribution of business activities to achieving development goals ;
  • respect the principle of Policy Coherence for Development when drawing up and implementing its trade, agricultural, environmental and energy policies, and to assess the impact of these policies on the level of development of the developing countries (DCs) and the lesser developed countries (LDCs);
  • in order to increase wealth and living standards among the poorest, to specifically target some of its trade-related assistance for responsible and sustainable development towards building local and regional trade capacities within and among these countries;
  • design its trade agreements so as to foster responsible investor behaviour and compliance with best international practises of corporate social responsibility (CSR) and good corporate governance.

The report supports the Commission‘s proposal to differentiate its aid for trade and to focus its efforts on the countries most in need, especially the least developed countries. It recommends, nevertheless, that the Commission take account of a country’s general level of development and its needs, capacities and internal development inequalities, in addition to the standard indicators (gross national product, human capital and vulnerability to economic shocks).

Members also emphasise:

  • social entrepreneurship and social innovation in the developing countries are the engines of growth for development;
  • the need to go beyond transfers of funds and microfinance and find innovative forms of financing and partnership and support the introduction of South-South and triangular partnerships;
  • support for the participation of small businesses in trade schemes that secure added value for producers, including those responding to sustainability (e.g. Fair Trade);
  • strengthening the capacity of institutions in developing countries as regards tax collection, combating tax fraud and the introduction of high accounting standards.

The Commission is called upon to:

  • offer more assistance, towards increasing governments‘ capacity to incorporate issues linked to sustainable and inclusive economic development into their national trade strategies and programmes;
  • include a democracy and human rights clause in all trade agreements with developing countries;
  • include Trade and Sustainable Development chapters in bilateral trade agreements with binding environmental and labour rules and CSR clauses;
  • promote regional integration in its bilateral and regional trade agreements.

Members believe that the EU has developed tools in the field of development assistance through trade and investment, including the GSP and EPAs, that are effective provided their provisions and implementation criteria do not result in discrimination or limitations that may prove disadvantageous to their potential beneficiaries. The report encourages the Commission, nevertheless, to combine all the existing instruments in a genuine overarching strategy that also comprises measures in the fields of technical assistance for trade, capacity-building and trade-related adjustment, also in relation to standardisation.

In this context, the Commission and the European External Action Service should develop synergies in order to further enhance the Union‘s commercial diplomacy worldwide.

New

The Committee on Economic and Monetary Affairs adopted the report by Tokia SAÏFI (EPP, FR) on trade and investment-driven growth for developing countries in response to a Commission communication ‘Trade, growth and development – tailoring trade and investment policy for those countries most in need’.

The Committee on International Trade, exercising its prerogatives of an associated committee in accordance with Rule 50 of Parliament’s Rules of Procedure, was also consulted for an opinion on this report.

The report supports the Commission‘s aim of enhancing synergies between trade and development policies, recommending that it take account of beneficiary countries’ needs and capacities, encouraging instruments such as regional integration and give priority to measures aimed at:

  • promoting sustainable and inclusive development;
  • creating jobs and reinforcing skills and the development of human capital while reducing social inequalities. Members stress the importance of decent wage levels and decent workplace safety standards, reminding the Commission of its communication ‘Promoting Decent Work for All’;
  • improving resistance to economic shocks,
  • supporting the development of the private sector, in particular small operators, including micro businesses and small and medium-sized enterprises, in order to foster their participation in trade and investment at local, regional, cross-border, bilateral and multilateral level;
  • improving fiscal governance and the fight against corruption, tax fraud and evasion, money laundering and tax havens, including by establishing information exchanges and supervisory mechanisms on corporate payments;
  • improving the trade and investment climate, including the implementation of trade facilitation measures,
  • diversifying trade and investment flows; and,
  • providing the necessary technical assistance to ensure the proper development of these measures.

The European Union is invited to:

  • explore possible areas of cooperation for sustainable development, in order to maximise the contribution of business activities to achieving development goals ;
  • respect the principle of Policy Coherence for Development when drawing up and implementing its trade, agricultural, environmental and energy policies, and to assess the impact of these policies on the level of development of the developing countries (DCs) and the lesser developed countries (LDCs);
  • in order to increase wealth and living standards among the poorest, to specifically target some of its trade-related assistance for responsible and sustainable development towards building local and regional trade capacities within and among these countries;
  • design its trade agreements so as to foster responsible investor behaviour and compliance with best international practises of corporate social responsibility (CSR) and good corporate governance.

The report supports the Commission‘s proposal to differentiate its aid for trade and to focus its efforts on the countries most in need, especially the least developed countries. It recommends, nevertheless, that the Commission take account of a country’s general level of development and its needs, capacities and internal development inequalities, in addition to the standard indicators (gross national product, human capital and vulnerability to economic shocks).

Members also emphasise:

  • social entrepreneurship and social innovation in the developing countries are the engines of growth for development;
  • the need to go beyond transfers of funds and microfinance and find innovative forms of financing and partnership and support the introduction of South-South and triangular partnerships;
  • support for the participation of small businesses in trade schemes that secure added value for producers, including those responding to sustainability (e.g. Fair Trade);
  • strengthening the capacity of institutions in developing countries as regards tax collection, combating tax fraud and the introduction of high accounting standards.

The Commission is called upon to:

  • offer more assistance, towards increasing governments‘ capacity to incorporate issues linked to sustainable and inclusive economic development into their national trade strategies and programmes;
  • include a democracy and human rights clause in all trade agreements with developing countries;
  • include Trade and Sustainable Development chapters in bilateral trade agreements with binding environmental and labour rules and CSR clauses;
  • promote regional integration in its bilateral and regional trade agreements.

Members believe that the EU has developed tools in the field of development assistance through trade and investment, including the GSP and EPAs, that are effective provided their provisions and implementation criteria do not result in discrimination or limitations that may prove disadvantageous to their potential beneficiaries. The report encourages the Commission, nevertheless, to combine all the existing instruments in a genuine overarching strategy that also comprises measures in the fields of technical assistance for trade, capacity-building and trade-related adjustment, also in relation to standardisation.

In this context, the Commission and the European External Action Service should develop synergies in order to further enhance the Union‘s commercial diplomacy worldwide.

activities/5/docs/0/text
  • The Committee on Economic and Monetary Affairs adopted the report by Tokia SAÏFI (EPP, FR) on trade and investment-driven growth for developing countries in response to a Commission communication ‘Trade, growth and development – tailoring trade and investment policy for those countries most in need’.

    The Committee on International Trade, exercising its prerogatives of an associated committee in accordance with Rule 50 of Parliament’s Rules of Procedure, was also consulted for an opinion on this report.

    The report supports the Commission‘s aim of enhancing synergies between trade and development policies, recommending that it take account of beneficiary countries’ needs and capacities, encouraging instruments such as regional integration and give priority to measures aimed at:

    • promoting sustainable and inclusive development;
    • creating jobs and reinforcing skills and the development of human capital while reducing social inequalities. Members stress the importance of decent wage levels and decent workplace safety standards, reminding the Commission of its communication ‘Promoting Decent Work for All’;
    • improving resistance to economic shocks,
    • supporting the development of the private sector, in particular small operators, including micro businesses and small and medium-sized enterprises, in order to foster their participation in trade and investment at local, regional, cross-border, bilateral and multilateral level;
    • improving fiscal governance and the fight against corruption, tax fraud and evasion, money laundering and tax havens, including by establishing information exchanges and supervisory mechanisms on corporate payments;
    • improving the trade and investment climate, including the implementation of trade facilitation measures,
    • diversifying trade and investment flows; and,
    • providing the necessary technical assistance to ensure the proper development of these measures.

    The European Union is invited to:

    • explore possible areas of cooperation for sustainable development, in order to maximise the contribution of business activities to achieving development goals ;
    • respect the principle of Policy Coherence for Development when drawing up and implementing its trade, agricultural, environmental and energy policies, and to assess the impact of these policies on the level of development of the developing countries (DCs) and the lesser developed countries (LDCs);
    • in order to increase wealth and living standards among the poorest, to specifically target some of its trade-related assistance for responsible and sustainable development towards building local and regional trade capacities within and among these countries;
    • design its trade agreements so as to foster responsible investor behaviour and compliance with best international practises of corporate social responsibility (CSR) and good corporate governance.

    The report supports the Commission‘s proposal to differentiate its aid for trade and to focus its efforts on the countries most in need, especially the least developed countries. It recommends, nevertheless, that the Commission take account of a country’s general level of development and its needs, capacities and internal development inequalities, in addition to the standard indicators (gross national product, human capital and vulnerability to economic shocks).

    Members also emphasise:

    • social entrepreneurship and social innovation in the developing countries are the engines of growth for development;
    • the need to go beyond transfers of funds and microfinance and find innovative forms of financing and partnership and support the introduction of South-South and triangular partnerships;
    • support for the participation of small businesses in trade schemes that secure added value for producers, including those responding to sustainability (e.g. Fair Trade);
    • strengthening the capacity of institutions in developing countries as regards tax collection, combating tax fraud and the introduction of high accounting standards.

    The Commission is called upon to:

    • offer more assistance, towards increasing governments‘ capacity to incorporate issues linked to sustainable and inclusive economic development into their national trade strategies and programmes;
    • include a democracy and human rights clause in all trade agreements with developing countries;
    • include Trade and Sustainable Development chapters in bilateral trade agreements with binding environmental and labour rules and CSR clauses;
    • promote regional integration in its bilateral and regional trade agreements.

    Members believe that the EU has developed tools in the field of development assistance through trade and investment, including the GSP and EPAs, that are effective provided their provisions and implementation criteria do not result in discrimination or limitations that may prove disadvantageous to their potential beneficiaries. The report encourages the Commission, nevertheless, to combine all the existing instruments in a genuine overarching strategy that also comprises measures in the fields of technical assistance for trade, capacity-building and trade-related adjustment, also in relation to standardisation.

    In this context, the Commission and the European External Action Service should develop synergies in order to further enhance the Union‘s commercial diplomacy worldwide.

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2013-02-27T00:00:00
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activities/4/committees
  • body: EP responsible: False committee_full: Foreign Affairs committee: AFET
  • body: EP responsible: False committee_full: Agriculture and Rural Development committee: AGRI
  • body: EP responsible: False committee: DEVE date: 2012-07-10T00:00:00 committee_full: Development (Associated committee) rapporteur: group: EPP name: SVENSSON Alf
  • body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO
  • body: EP shadows: group: S&D name: BADIA I CUTCHET Maria group: ALDE name: BEARDER Catherine group: Verts/ALE name: KELLER Franziska group: ECR name: STURDY Robert group: GUE/NGL name: SCHOLZ Helmut responsible: True committee: INTA date: 2012-03-26T00:00:00 committee_full: International Trade (Associated committee) rapporteur: group: EPP name: SAÏFI Tokia
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Legal Affairs committee: JURI
  • body: EP responsible: False committee_full: Fisheries committee: PECH
  • body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
activities/4/type
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New
Vote in committee, 1st reading/single reading
activities/0/docs/0/text/0
Old

PURPOSE: to establish a new and comprehensive framework to adjust trade and investment policy in favour of those developing countries in greatest need of assistance.

BACKGROUND: the world economic landscape has changed dramatically in the past decade, with deep implications for trade, investment and development policies. Historically low tariffs and the reorganisation of international trade along global supply chains increasingly shift the focus of trade policies to regulatory and other behind-the-border issues. Developing countries, such as China, India or Brazil, have gone through radical changes and have managed to reap the benefits of open and increasingly integrated world markets. At the other end of the scale may be found the Lesser Developed Countries (LDCs), mainly in Africa, that continue to face many difficulties and are the most off track in the achievement of the Millennium Development Goals (MDGs).

The notion of "developing countries" as a group is losing relevance as a result and trade, investment and development policies now need to be tailored to reflect this.

The EU has a particular responsibility as the world's largest trading power, the biggest trading partner of many LDCs.

Further to the 2010 Communication on Trade, Growth and World Affairs, this Communication updates the 2002 Communication on Trade and Development to reflect changes in economic realities, to take stock of the way the EU has delivered on its commitments and to outline the direction the EU's trade policies for development should take over the next decade.

CONTENT: although it confirms the main principles of the 2002 communication (to this effect, please refer to the European Parliament’s resolution on the 2002 Communication, INI/2002/2282), this Communication stresses the need to increasingly differentiate among developing countries to focus on those most in need, as well as to improve the way our instruments deliver. It also emphasises the need for our developing country partners to undertake domestic reforms and for other developed and emerging economies to match our initiatives to open markets to countries most in need.

This Communication proposes concrete ways to enhance synergies between trade and development policies (in this context, please also refer to INI/2012/2224).

Tasks for the future to strengthen trade and development: building on recent achievements and efforts but also learning from experience where progress has not been as successful as hoped, the EU will step up efforts to help those countries most in need to reap the benefits of increasingly integrated world markets. With this in mind, the Communication envisages a series of measures some of which are already under way. Some examples of these include:

1) More focused preferences: the Commission has proposed a reform of the GSP scheme to make sure corresponding preferences benefit those countries most in need. In addition to this reform that is considered crucial to better target preferences, the Communication envisages a package of measures to promote trade for small operators in developing countries (please refer to the summary of INI/2012/2224 for details of the measures in question).

2) Better targeted Aid for Trade (AfT): the objective of this is to encourage developing countries to include trade in their development strategies (please refer to the summary of INI/2012/2224 for details of the measures in question).

3) Complementary instruments boosting foreign direct investment (FDI): the Communication notes that while FDI in and from developing countries has surged in the past decade, it has largely evaded the countries most in need due to poor economic prospects and unfavourable investment conditions. Investors need stable, transparent and predictable regulatory environments. The EU can help improve the business environment through AfT and a range of FDI-related instruments, now extended by the Lisbon Treaty:

Provisions in EU Free Trade Agreements (FTAs) grant investors greater legal certainty regarding market access sectors (e.g. sectors such as telecommunications, transport, banking, energy, environmental services, construction…);

Investment protection granted by Bilateral Investment Treaties (BITs) either as part of on-going FTA negotiations or as stand-alone agreements;

EU blending mechanisms can be used to leverage domestic and foreign investment in developing countries: grants would be combined with e.g. loans or risk capital to support the financial viability of strategic investments under the new financial instruments covered by the multiannual financial framework for the period 2014-2020. The use of such financial instruments will be assessed case by

case in countries where debt sustainability is fragile. Other instruments that will be considered include guarantees, private equity and public-private partnerships. Cooperation will be sought with the European Investment Bank and Member States' or other development finance agencies.

4) Complementary instruments: the Communication proposes a series of instruments in addition to the classic development measures which are: i) greater use of comprehensive and modulated bilateral/regional agreements; ii) a values-based trade agenda to promote sustainable development; iii) measures to strengthen corporate social responsibility; iv) measures to help improve resilience  to global commodity price shocks; and v) measures to help preparedness for natural catastrophes in particularly vulnerable countries.

The following will receive particular attention:

  • measures to enhance transparency of investments and to combat fiscal fraud: several initiatives are in place in this regard (such as the Directive requiring the publication of payments made to governments both by publicly quoted companies on European stock markets and by other large EU companies active in the extractive and forestry sectors);
  • improvement of transparency in the supply chain, including aspects of due diligence;
  • greater support for and use of the recently updated OECD Guidelines for multinational enterprises, as well as the OECD’s recommendations on due diligence and responsible supply chain management;
  • specific assistance in regard to sustainable mining, geological knowledge and good governance in natural resources management;
  • mechanisms controlling price volatility of primary resources (such as the Vulnerability FLEX (V-FLEX) mechanism, a short-term instrument to help the most vulnerable ACP countries to cope with the impact of the global food and financial crisis).

Principles: to properly implement the above-mentioned proposals, the Communication recommends: i) the promotion of good governance, which starts with stable political institutions and practices, an independent judiciary, protection of human rights, transparency of public finances, rules and institutions and a strong stance against fraud and corruption; ii) promotion of transparency and the requirement to provide reports in the context of trade agreements under negotiation; iii) encouragement of ownership.

The multilateral programme up to 2020: the Communication stresses that an absolute must be to preserve and strengthen the multilateral trading system. In this connection, it regrets the current impasse in the Doha Development Agenda (DDA) which offers considerable potential for developing countries. This impasse reveals a fundamental weakness in the WTO setting which has not evolved as quickly as economic realities. There is a growing imbalance between the contribution that large emerging countries make to the multilateral trading system and the benefits they derive from it. This is increasingly felt in poorer countries which see the gap between them and emerging countries widening.

The priority for the EU is to pursue negotiations on the DDA to include, for example, mandated topics such as trade facilitation, non-tariff barriers and dispute settlement.  An agreement on trade facilitation offers substantial development benefits by ensuring coherent reforms in all WTO members.

The issue of differentiation and the role of emerging economies must be addressed. Emerging countries should show more leadership and assume more responsibility for opening their markets to LDCs through preferential schemes but also on a non-discriminatory basis towards the rest of the WTO membership. This does not imply full reciprocity of commitments with developed countries as an outcome of the DDA, but greater proportionality of their contribution with the benefits they derive from the system.

As far as LDCs are concerned, the objective is to push for greater coherence in preferential rules of origin, including greater transparency, simplicity and improved market access. In addition to the DDA negotiations and to allow as many countries as possible to benefit from the system, the accession of LDCs to the WTO should be supported and facilitated.

In conclusion, the Communication calls on the countries concerned to make choices and assume responsibilities in the interests of consolidating the long-term benefits of trade and investment.

Given that South-South trade, for the first time, outweighs North-South trade, the Communication calls on large emerging countries to take more leadership and responsibility in the multilateral trading system in the interest of the system and for the benefit of global development.

New

PURPOSE: to establish a new and comprehensive framework to adjust trade and investment policy in favour of those developing countries in greatest need of assistance.

BACKGROUND: the world economic landscape has changed dramatically in the past decade, with deep implications for trade, investment and development policies. Historically low tariffs and the reorganisation of international trade along global supply chains increasingly shift the focus of trade policies to regulatory and other behind-the-border issues. Developing countries, such as China, India or Brazil, have gone through radical changes and have managed to reap the benefits of open and increasingly integrated world markets. At the other end of the scale may be found the Lesser Developed Countries (LDCs), mainly in Africa, that continue to face many difficulties and are the most off track in the achievement of the Millennium Development Goals (MDGs).

The notion of "developing countries" as a group is losing relevance as a result and trade, investment and development policies now need to be tailored to reflect this.

The EU has a particular responsibility as the world's largest trading power, the biggest trading partner of many LDCs.

Further to the 2010 Communication on Trade, Growth and World Affairs, this Communication updates the 2002 Communication on Trade and Development to reflect changes in economic realities, to take stock of the way the EU has delivered on its commitments and to outline the direction the EU's trade policies for development should take over the next decade.

CONTENT: although it confirms the main principles of the 2002 communication (to this effect, please refer to the European Parliament’s resolution on the 2002 Communication, INI/2002/2282), this Communication stresses the need to increasingly differentiate among developing countries to focus on those most in need, as well as to improve the way our instruments deliver. It also emphasises the need for our developing country partners to undertake domestic reforms and for other developed and emerging economies to match our initiatives to open markets to countries most in need.

This Communication proposes concrete ways to enhance synergies between trade and development policies (in this context, please also refer to INI/2012/2224).

Tasks for the future to strengthen trade and development: building on recent achievements and efforts but also learning from experience where progress has not been as successful as hoped, the EU will step up efforts to help those countries most in need to reap the benefits of increasingly integrated world markets. With this in mind, the Communication envisages a series of measures some of which are already under way. Some examples of these include:

1) More focused preferences: the Commission has proposed a reform of the GSP scheme to make sure corresponding preferences benefit those countries most in need. In addition to this reform that is considered crucial to better target preferences, the Communication envisages a package of measures to promote trade for small operators in developing countries (please refer to the summary of INI/2012/2224 for details of the measures in question).

2) Better targeted Aid for Trade (AfT): the objective of this is to encourage developing countries to include trade in their development strategies (please refer to the summary of INI/2012/2224 for details of the measures in question).

3) Complementary instruments boosting foreign direct investment (FDI): the Communication notes that while FDI in and from developing countries has surged in the past decade, it has largely evaded the countries most in need due to poor economic prospects and unfavourable investment conditions. Investors need stable, transparent and predictable regulatory environments. The EU can help improve the business environment through AfT and a range of FDI-related instruments, now extended by the Lisbon Treaty:

Provisions in EU Free Trade Agreements (FTAs) grant investors greater legal certainty regarding market access sectors (e.g. sectors such as telecommunications, transport, banking, energy, environmental services, construction…);

Investment protection granted by Bilateral Investment Treaties (BITs) either as part of on-going FTA negotiations or as stand-alone agreements;

EU blending mechanisms can be used to leverage domestic and foreign investment in developing countries: grants would be combined with e.g. loans or risk capital to support the financial viability of strategic investments under the new financial instruments covered by the multiannual financial framework for the period 2014-2020. The use of such financial instruments will be assessed case by

case in countries where debt sustainability is fragile. Other instruments that will be considered include guarantees, private equity and public-private partnerships. Cooperation will be sought with the European Investment Bank and Member States' or other development finance agencies.

4) Complementary instruments: the Communication proposes a series of instruments in addition to the classic development measures which are: i) greater use of comprehensive and modulated bilateral/regional agreements; ii) a values-based trade agenda to promote sustainable development; iii) measures to strengthen corporate social responsibility; iv) measures to help improve resilience  to global commodity price shocks; and v) measures to help preparedness for natural catastrophes in particularly vulnerable countries.

The following will receive particular attention:

  • measures to enhance transparency of investments and to combat fiscal fraud: several initiatives are in place in this regard (such as the Directive requiring the publication of payments made to governments both by publicly quoted companies on European stock markets and by other large EU companies active in the extractive and forestry sectors);
  • improvement of transparency in the supply chain, including aspects of due diligence;
  • greater support for and use of the recently updated OECD Guidelines for multinational enterprises, as well as the OECD’s recommendations on due diligence and responsible supply chain management;
  • specific assistance in regard to sustainable mining, geological knowledge and good governance in natural resources management;
  • mechanisms controlling price volatility of primary resources (such as the Vulnerability FLEX (V-FLEX) mechanism, a short-term instrument to help the most vulnerable ACP countries to cope with the impact of the global food and financial crisis).

Principles: to properly implement the above-mentioned proposals, the Communication recommends: i) the promotion of good governance, which starts with stable political institutions and practices, an independent judiciary, protection of human rights, transparency of public finances, rules and institutions and a strong stance against fraud and corruption; ii) promotion of transparency and the requirement to provide reports in the context of trade agreements under negotiation; iii) encouragement of ownership.

The multilateral programme up to 2020: the Communication stresses that an absolute must be to preserve and strengthen the multilateral trading system. In this connection, it regrets the current impasse in the Doha Development Agenda (DDA) which offers considerable potential for developing countries. This impasse reveals a fundamental weakness in the WTO setting which has not evolved as quickly as economic realities. There is a growing imbalance between the contribution that large emerging countries make to the multilateral trading system and the benefits they derive from it. This is increasingly felt in poorer countries which see the gap between them and emerging countries widening.

The priority for the EU is to pursue negotiations on the DDA to include, for example, mandated topics such as trade facilitation, non-tariff barriers and dispute settlement.  An agreement on trade facilitation offers substantial development benefits by ensuring coherent reforms in all WTO members.

The issue of differentiation and the role of emerging economies must be addressed. Emerging countries should show more leadership and assume more responsibility for opening their markets to LDCs through preferential schemes but also on a non-discriminatory basis towards the rest of the WTO membership. This does not imply full reciprocity of commitments with developed countries as an outcome of the DDA, but greater proportionality of their contribution with the benefits they derive from the system.

As far as LDCs are concerned, the objective is to push for greater coherence in preferential rules of origin, including greater transparency, simplicity and improved market access. In addition to the DDA negotiations and to allow as many countries as possible to benefit from the system, the accession of LDCs to the WTO should be supported and facilitated.

In conclusion, the Communication calls on the countries concerned to make choices and assume responsibilities in the interests of consolidating the long-term benefits of trade and investment.

Given that South-South trade, for the first time, outweighs North-South trade, the Communication calls on large emerging countries to take more leadership and responsibility in the multilateral trading system in the interest of the system and for the benefit of global development.

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  • DG: url: http://ec.europa.eu/trade/ title: Trade Commissioner: DE GUCHT Karel
activities/0/date
Old
2012-09-05T00:00:00
New
2012-01-27T00:00:00
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EP officialisation
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Non-legislative basic document
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2012-01-27T00:00:00
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EC
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DG: url: http://ec.europa.eu/trade/ title: Trade Commissioner: DE GUCHT Karel
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EP
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2013-01-24T00:00:00
type
EP 1R Committee
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EP
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2013-01-24T00:00:00
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EP 1R Committee
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2013-01-24T00:00:00
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2013-02-21T00:00:00
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2012-11-09T00:00:00
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type: Committee draft report title: PE500.468
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EP
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Committee draft report
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2012-01-27T00:00:00
docs
url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2012&nu_doc=22 title: COM(2012)0022 type: Non-legislative basic document published celexid: CELEX:52012DC0022:EN
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EC
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DG: url: http://ec.europa.eu/trade/ title: Trade Commissioner: DE GUCHT Karel
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EC
activities/1/commission
  • DG: url: http://ec.europa.eu/trade/ title: Trade Commissioner: DE GUCHT Karel
activities/1/date
Old
2013-02-21T00:00:00
New
2012-01-27T00:00:00
activities/1/docs
  • url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2012&nu_doc=22 celexid: CELEX:52012DC0022:EN type: Non-legislative basic document published title: COM(2012)0022
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EP 1R Committee
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Non-legislative basic document
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2013-01-24T00:00:00
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activities/1/docs/0/text
  • PURPOSE: to establish a new and comprehensive framework to adjust trade and investment policy in favour of those developing countries in greatest need of assistance.

    BACKGROUND: the world economic landscape has changed dramatically in the past decade, with deep implications for trade, investment and development policies. Historically low tariffs and the reorganisation of international trade along global supply chains increasingly shift the focus of trade policies to regulatory and other behind-the-border issues. Developing countries, such as China, India or Brazil, have gone through radical changes and have managed to reap the benefits of open and increasingly integrated world markets. At the other end of the scale may be found the Lesser Developed Countries (LDCs), mainly in Africa, that continue to face many difficulties and are the most off track in the achievement of the Millennium Development Goals (MDGs).

    The notion of "developing countries" as a group is losing relevance as a result and trade, investment and development policies now need to be tailored to reflect this.

    The EU has a particular responsibility as the world's largest trading power, the biggest trading partner of many LDCs.

    Further to the 2010 Communication on Trade, Growth and World Affairs, this Communication updates the 2002 Communication on Trade and Development to reflect changes in economic realities, to take stock of the way the EU has delivered on its commitments and to outline the direction the EU's trade policies for development should take over the next decade.

    CONTENT: although it confirms the main principles of the 2002 communication (to this effect, please refer to the European Parliament’s resolution on the 2002 Communication, INI/2002/2282), this Communication stresses the need to increasingly differentiate among developing countries to focus on those most in need, as well as to improve the way our instruments deliver. It also emphasises the need for our developing country partners to undertake domestic reforms and for other developed and emerging economies to match our initiatives to open markets to countries most in need.

    This Communication proposes concrete ways to enhance synergies between trade and development policies (in this context, please also refer to INI/2012/2224).

    Tasks for the future to strengthen trade and development: building on recent achievements and efforts but also learning from experience where progress has not been as successful as hoped, the EU will step up efforts to help those countries most in need to reap the benefits of increasingly integrated world markets. With this in mind, the Communication envisages a series of measures some of which are already under way. Some examples of these include:

    1) More focused preferences: the Commission has proposed a reform of the GSP scheme to make sure corresponding preferences benefit those countries most in need. In addition to this reform that is considered crucial to better target preferences, the Communication envisages a package of measures to promote trade for small operators in developing countries (please refer to the summary of INI/2012/2224 for details of the measures in question).

    2) Better targeted Aid for Trade (AfT): the objective of this is to encourage developing countries to include trade in their development strategies (please refer to the summary of INI/2012/2224 for details of the measures in question).

    3) Complementary instruments boosting foreign direct investment (FDI): the Communication notes that while FDI in and from developing countries has surged in the past decade, it has largely evaded the countries most in need due to poor economic prospects and unfavourable investment conditions. Investors need stable, transparent and predictable regulatory environments. The EU can help improve the business environment through AfT and a range of FDI-related instruments, now extended by the Lisbon Treaty:

    Provisions in EU Free Trade Agreements (FTAs) grant investors greater legal certainty regarding market access sectors (e.g. sectors such as telecommunications, transport, banking, energy, environmental services, construction…);

    Investment protection granted by Bilateral Investment Treaties (BITs) either as part of on-going FTA negotiations or as stand-alone agreements;

    EU blending mechanisms can be used to leverage domestic and foreign investment in developing countries: grants would be combined with e.g. loans or risk capital to support the financial viability of strategic investments under the new financial instruments covered by the multiannual financial framework for the period 2014-2020. The use of such financial instruments will be assessed case by

    case in countries where debt sustainability is fragile. Other instruments that will be considered include guarantees, private equity and public-private partnerships. Cooperation will be sought with the European Investment Bank and Member States' or other development finance agencies.

    4) Complementary instruments: the Communication proposes a series of instruments in addition to the classic development measures which are: i) greater use of comprehensive and modulated bilateral/regional agreements; ii) a values-based trade agenda to promote sustainable development; iii) measures to strengthen corporate social responsibility; iv) measures to help improve resilience  to global commodity price shocks; and v) measures to help preparedness for natural catastrophes in particularly vulnerable countries.

    The following will receive particular attention:

    • measures to enhance transparency of investments and to combat fiscal fraud: several initiatives are in place in this regard (such as the Directive requiring the publication of payments made to governments both by publicly quoted companies on European stock markets and by other large EU companies active in the extractive and forestry sectors);
    • improvement of transparency in the supply chain, including aspects of due diligence;
    • greater support for and use of the recently updated OECD Guidelines for multinational enterprises, as well as the OECD’s recommendations on due diligence and responsible supply chain management;
    • specific assistance in regard to sustainable mining, geological knowledge and good governance in natural resources management;
    • mechanisms controlling price volatility of primary resources (such as the Vulnerability FLEX (V-FLEX) mechanism, a short-term instrument to help the most vulnerable ACP countries to cope with the impact of the global food and financial crisis).

    Principles: to properly implement the above-mentioned proposals, the Communication recommends: i) the promotion of good governance, which starts with stable political institutions and practices, an independent judiciary, protection of human rights, transparency of public finances, rules and institutions and a strong stance against fraud and corruption; ii) promotion of transparency and the requirement to provide reports in the context of trade agreements under negotiation; iii) encouragement of ownership.

    The multilateral programme up to 2020: the Communication stresses that an absolute must be to preserve and strengthen the multilateral trading system. In this connection, it regrets the current impasse in the Doha Development Agenda (DDA) which offers considerable potential for developing countries. This impasse reveals a fundamental weakness in the WTO setting which has not evolved as quickly as economic realities. There is a growing imbalance between the contribution that large emerging countries make to the multilateral trading system and the benefits they derive from it. This is increasingly felt in poorer countries which see the gap between them and emerging countries widening.

    The priority for the EU is to pursue negotiations on the DDA to include, for example, mandated topics such as trade facilitation, non-tariff barriers and dispute settlement.  An agreement on trade facilitation offers substantial development benefits by ensuring coherent reforms in all WTO members.

    The issue of differentiation and the role of emerging economies must be addressed. Emerging countries should show more leadership and assume more responsibility for opening their markets to LDCs through preferential schemes but also on a non-discriminatory basis towards the rest of the WTO membership. This does not imply full reciprocity of commitments with developed countries as an outcome of the DDA, but greater proportionality of their contribution with the benefits they derive from the system.

    As far as LDCs are concerned, the objective is to push for greater coherence in preferential rules of origin, including greater transparency, simplicity and improved market access. In addition to the DDA negotiations and to allow as many countries as possible to benefit from the system, the accession of LDCs to the WTO should be supported and facilitated.

    In conclusion, the Communication calls on the countries concerned to make choices and assume responsibilities in the interests of consolidating the long-term benefits of trade and investment.

    Given that South-South trade, for the first time, outweighs North-South trade, the Communication calls on large emerging countries to take more leadership and responsibility in the multilateral trading system in the interest of the system and for the benefit of global development.

activities/3/committees/6/shadows/4
group
GUE/NGL
name
SCHOLZ Helmut
committees/6/shadows/4
group
GUE/NGL
name
SCHOLZ Helmut
activities/5/date
Old
2013-02-27T00:00:00
New
2013-03-27T00:00:00
activities/1/commission/0
DG
Commissioner
DE GUCHT Karel
activities/4
body
EP
date
2013-01-24T00:00:00
type
EP 1R Committee
other/0
body
EC
dg
commissioner
DE GUCHT Karel
activities/3
date
2012-09-13T00:00:00
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EP
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Committee referral announced in Parliament, 1st reading/single reading
committees
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Old
Vote scheduled in committee, 1st reading/single reading
New
EP 1R Committee
activities/5/committees
  • body: EP responsible: False committee_full: Foreign Affairs committee: AFET
  • body: EP responsible: False committee_full: Agriculture and Rural Development committee: AGRI
  • body: EP responsible: False committee: DEVE date: 2012-07-10T00:00:00 committee_full: Development (Associated committee) rapporteur: group: EPP name: SVENSSON Alf
  • body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO
  • body: EP shadows: group: S&D name: BADIA I CUTCHET Maria responsible: True committee: INTA date: 2012-03-26T00:00:00 committee_full: International Trade (Associated committee) rapporteur: group: EPP name: SAÏFI Tokia
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Legal Affairs committee: JURI
  • body: EP responsible: False committee_full: Fisheries committee: PECH
  • body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
activities/5/date
Old
2012-09-13T00:00:00
New
2013-02-21T00:00:00
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Old
Committee referral announced in Parliament, 1st reading/single reading
New
Vote scheduled in committee, 1st reading/single reading
committees/6/shadows/1
group
ALDE
name
BEARDER Catherine
committees/6/shadows/2
group
Verts/ALE
name
KELLER Franziska
committees/6/shadows/3
group
ECR
name
STURDY Robert
activities/3
date
2012-09-13T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
procedure/dossier_of_the_committee
INTA/7/08738
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting Parliament 1st reading / single reading / budget 1st stage
activities
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  • date: 2012-01-27T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2012&nu_doc=22 title: COM(2012)0022 type: Non-legislative basic document published celexid: CELEX:52012DC0022:EN type: Non-legislative basic document body: EC commission:
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  • date: 2013-01-24T00:00:00 body: EP type: Vote scheduled in committee, 1st reading/single reading
  • date: 2013-02-27T00:00:00 body: EP type: Indicative plenary sitting date, 1st reading/single reading
committees
  • body: EP responsible: False committee_full: Foreign Affairs committee: AFET
  • body: EP responsible: False committee_full: Agriculture and Rural Development committee: AGRI
  • body: EP responsible: False committee: DEVE date: 2012-07-10T00:00:00 committee_full: Development (Associated committee) rapporteur: group: EPP name: SVENSSON Alf
  • body: EP responsible: False committee_full: Economic and Monetary Affairs committee: ECON
  • body: EP responsible: False committee_full: Employment and Social Affairs committee: EMPL
  • body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO
  • body: EP shadows: group: S&D name: BADIA I CUTCHET Maria responsible: True committee: INTA date: 2012-03-26T00:00:00 committee_full: International Trade (Associated committee) rapporteur: group: EPP name: SAÏFI Tokia
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Legal Affairs committee: JURI
  • body: EP responsible: False committee_full: Fisheries committee: PECH
  • body: EP responsible: False committee_full: Transport and Tourism committee: TRAN
links
other
    procedure
    reference
    2012/2225(INI)
    title
    Trade and investment-driven growth for developing countries
    legal_basis
    Rules of Procedure of the European Parliament EP 048
    stage_reached
    Preparatory phase in Parliament
    subtype
    Initiative
    type
    INI - Own-initiative procedure
    subject