BETA


2016/2301(INI) Impact of international trade and the EU’s trade policies on global value chains

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead INTA ARENA Maria (icon: S&D S&D) RUAS Fernando (icon: PPE PPE), ZAHRADIL Jan (icon: ECR ECR), CHARANZOVÁ Dita (icon: ALDE ALDE), MINEUR Anne-Marie (icon: GUE/NGL GUE/NGL), JADOT Yannick (icon: Verts/ALE Verts/ALE), BEGHIN Tiziana (icon: EFDD EFDD)
Committee Opinion AFET PANZERI Pier Antonio (icon: S&D S&D) Louis MICHEL (icon: ALDE ALDE), Godelieve QUISTHOUDT-ROWOHL (icon: PPE PPE), Judith SARGENTINI (icon: Verts/ALE Verts/ALE)
Committee Opinion DEVE CORRAO Ignazio (icon: EFDD EFDD) Beatriz BECERRA BASTERRECHEA (icon: ALDE ALDE), Arne LIETZ (icon: S&D S&D), Judith SARGENTINI (icon: Verts/ALE Verts/ALE), Lola SÁNCHEZ CALDENTEY (icon: GUE/NGL GUE/NGL), Adam SZEJNFELD (icon: PPE PPE)
Committee Opinion EMPL
Committee Opinion ITRE
Committee Opinion FEMM BJÖRK Malin (icon: GUE/NGL GUE/NGL) Florent MARCELLESI (icon: Verts/ALE Verts/ALE), Barbara MATERA (icon: PPE PPE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2018/02/21
   EC - Commission response to text adopted in plenary
Documents
2017/09/12
   EP - Results of vote in Parliament
2017/09/12
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 497 votes to 124, with 56 abstentions, a resolution on the impact of international trade and EU’s trade policies on global value chains.

Global value chains (GVCs) are a complex, rapidly changing reality which have become a key feature of today’s global economy. However, their extremely complex nature and lack of transparency may lead to a higher risk of violations of human and workers’ rights, factual impunity for environmental crimes and large-scale tax avoidance and tax evasion.

There is a widespread view that trade policy should not lead to unfair distribution of benefits. Therefore, trade policy needs to put social and environmental values, as well as transparency and accountability , at its core.

EU position within global value chains : Parliament stressed that trade and investment policy aims to create a level playing field for European businesses and facilitate upward convergence on standards. Further integration of the EU into global value chains must not be to the detriment of the European social and regulatory model and the promotion of sustainable growth.

Members called on the Commission and the Member States to adopt reinforced trade defence instruments to combat unfair commercial practices , taking into account social and environmental dumping.

Multilateralism : the Commission is called on to work within the WTO to enhance transparency and to define multilateral trade rules, in particular with regard to the sustainable management of GVCs, which should include in particular:

mandatory supply chain due diligence and transparency requirements , building on the UN Guiding Principles on Business and Human Rights;

minimum health and safety standards , recognising in particular workers’ right to establish safety committees;

a social protection floor and respect for International Labour Organisation (ILO) labour standards;

the right to collective bargaining.

Corporate responsibility : Parliament recalled that the business community has an important role to play in offering positive incentives in terms of promoting human rights, democracy and corporate responsibility. While welcoming the many promising initiatives taken by the private sector in recent years, it invited the Commission to:

give greater prominence to international rules on corporate social responsibility (CSR) and to promote the application of OECD sectoral guidelines and the United Nations guidelines on business and human rights;

revise its CSR strategy , which aims to strengthen social and environmental standards, and whose main objective is to insist on the inclusion of CSR in trade and investment agreements negotiated by the Union;

ensure compliance by European and international companies with the OECD Guidelines for Multinational Enterprises and the sector-specific OECD guidelines, such as the due diligence guidance for responsible supply chains of minerals from conflict-affected areas .

EU free trade agreements (FTAs) and global value chains : Parliament requested the inclusion in FTAs ​​of:

human rights clauses and chapters on trade and sustainable development in general dispute settlement mechanisms; enforceable provisions to combat corruption and protect whistleblowers; standstill clauses setting a minimum level of social, environmental and safety standards; provisions on tax transparency.

Members also called for:

work towards the establishment of adequate and efficient solutions for the introduction of a transparent and functioning mandatory ‘ social and environmental traceability’ labelling system along the entire production chain; the introduction of legislation for labelling rules regarding the origin of products entering the EU market; steps to tackle the financial and procedural hurdles faced in civil litigation by victims of human rights violations by transnational corporations; gender perspective to be mainstreamed into trade and investment policy, the Aid for Trade strategy and all future FTAs and impact assessments; the review of GSP and GSP+ to include binding rules on human and labour rights and environmental protection ; support for the effective participation of SMEs in GVCs that aim to secure a larger share of value for producers while a high level of social, environmental and human rights protection to be ensured.

Lastly, Members welcomed the Commission's desire to protect the entire spectrum of IPRs , including patents, trademarks, copyrights, designs, geographical indications (GIs), marking of origin and pharmaceutical products, while ensuring access to affordable medicines, both at WTO level and through FTAs.

Documents
2017/09/12
   EP - End of procedure in Parliament
2017/09/11
   EP - Debate in Parliament
2017/07/20
   EP - Committee report tabled for plenary, single reading
Details

The Committee on International Trade adopted an own-initiative report by Maria ARENA (S&D, BE) on the impact of international trade and EU’s trade policies on global value chains.

Global value chains (GVCs) have become a key element of the global economy. They can help developing countries to better integrate into it, reduce poverty and improve employment, while having a positive effect on increasing their production capacity. However, their complex nature and lack of transparency may lead to a higher risk of human and labour rights violations, factual impunity for environmental crimes and large-scale tax avoidance and tax fraud.

EU position within global value chains : stressing that trade and investment policy aims to create a level playing field for European businesses and facilitate upward convergence on standards, the report called on the Commission to:

ensure coherence between the EU’s environmental, public health, trade, investment and industrial policies; promote the European reindustrialisation strategy and the transition towards a low-carbon economy.

Members considered that further integration of the EU into global value chains must not be to the detriment of the European social and regulatory model and the promotion of sustainable growth.

They called on the Commission and the Member States to adopt reinforced trade defence instruments to combat unfair commercial practices, taking into account social and environmental dumping.

Multilateralism : the Commission is called on to work within the WTO to enhance transparency and to define multilateral trade rules, in particular with regard to the sustainable management of GVCs, which should include in particular:

mandatory supply chain due diligence and transparency requirements, building on the UN Guiding Principles on Business and Human Rights; minimum health and safety standards , recognising in particular workers’ right to establish safety committees; a social protection floor and respect for International Labour Organisation (ILO) labour standards; the right to collective bargaining.

Corporate responsibility : highlighting the links between human rights and trade, Members welcomed the initiatives taken by the private sector that have enabled the sector to be involved in improving supply chain standards in recent years, including greater respect for human rights and workers’ rights.

The European Commission is invited to update its Corporate Social Responsibility (CSR) strategy , which aims to strengthen social and environmental standards, insisting on the integration of CSR provisions into trade and investment agreements negotiated by the EU. Members also called for a new ways to support private-sector efforts to make global value chains more sustainable.

EU free trade agreements (FTAs) and global value chains : Members welcomed the EU's new trade and investment strategy entitled ‘Trade for All’. They called on the Commission to address issues related to the development of GVCs, taking into account, for example, the following measures:

implement the 2010 and 2016 Parliament's recommendations on chapters on trade and sustainable development in FTAs; inclusion in FTAs ​​of: (i) human rights clauses and chapters on trade and sustainable development in general dispute settlement mechanisms; (ii) enforceable provisions to combat corruption and protect whistleblowers; (iii) standstill clauses setting a minimum level of social, environmental and safety standards; (iv) provisions on tax transparency.

The report also called for:

work towards the establishment of adequate and efficient solutions for the introduction of a transparent and functioning mandatory ‘social and environmental traceability’ labelling system along the entire production chain; take steps to tackle the financial and procedural hurdles faced in civil litigation by victims of human rights violations by transnational corporations; ensure that the gender perspective is mainstreamed into trade and investment policy, the Aid for Trade strategy and all future FTAs and impact assessments; ensure that the review of GSP and GSP+ includes binding rules on human and labour rights and environmental protection ; support for the effective participation of SMEs in GVCs that aim to secure a larger share of value for producers while ensuring a high level of social, environmental and human rights protection.

Lastly, Members welcomed the Commission's desire to protect the entire spectrum of IPRs , including patents, trademarks, copyrights, designs, geographical indications (GIs), marking of origin and pharmaceutical products, while ensuring access to affordable medicines, both at WTO level and through FTAs.

Documents
2017/07/11
   EP - Vote in committee, 1st reading/single reading
2017/06/23
   EP - Committee opinion
Documents
2017/06/07
   EP - Amendments tabled in committee
Documents
2017/05/31
   EP - Committee opinion
Documents
2017/05/31
   EP - Committee opinion
Documents
2017/05/10
   EP - Committee draft report
Documents
2017/02/06
   EP - BJÖRK Malin (GUE/NGL) appointed as rapporteur in FEMM
2017/01/26
   EP - PANZERI Pier Antonio (S&D) appointed as rapporteur in AFET
2016/11/24
   EP - Committee referral announced in Parliament, 1st reading/single reading
2016/10/11
   EP - CORRAO Ignazio (EFDD) appointed as rapporteur in DEVE
2016/07/13
   EP - ARENA Maria (S&D) appointed as rapporteur in INTA

Documents

Votes

A8-0269/2017 - Maria Arena - Résolution 12/09/2017 13:12:11.000

2017/09/12 Outcome: +: 497, -: 124, 0: 56
DE IT ES RO FR PT HU BE AT SE IE HR CZ FI EL SK MT BG LU SI LT NL CY LV DK EE PL GB
Total
86
65
48
30
66
21
17
21
17
19
9
11
20
13
15
13
6
14
5
6
10
22
5
8
12
5
50
61
icon: PPE PPE
195

Greece PPE

2

Luxembourg PPE

3

Slovenia PPE

3

Cyprus PPE

1

Denmark PPE

Abstain (1)

1

Estonia PPE

For (1)

1
icon: S&D S&D
178

Ireland S&D

For (1)

1

Croatia S&D

2

Malta S&D

3

Luxembourg S&D

For (1)

1

Slovenia S&D

For (1)

1

Netherlands S&D

2

Cyprus S&D

2

Latvia S&D

1

Estonia S&D

For (1)

1
icon: Verts/ALE Verts/ALE
46

Italy Verts/ALE

For (1)

1

Spain Verts/ALE

3

Hungary Verts/ALE

For (1)

1

Belgium Verts/ALE

2

Austria Verts/ALE

2

Croatia Verts/ALE

For (1)

1

Finland Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Netherlands Verts/ALE

2

Latvia Verts/ALE

1

Denmark Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
45

Portugal GUE/NGL

For (1)

4

Sweden GUE/NGL

For (1)

1

Ireland GUE/NGL

3

Finland GUE/NGL

For (1)

1

Netherlands GUE/NGL

3

Cyprus GUE/NGL

1

Denmark GUE/NGL

For (1)

1

United Kingdom GUE/NGL

1
icon: ALDE ALDE
60

Germany ALDE

3

Romania ALDE

Against (1)

3

Portugal ALDE

1

Austria ALDE

Abstain (1)

1

Sweden ALDE

3

Ireland ALDE

For (1)

1

Croatia ALDE

For (1)

Abstain (1)

2

Finland ALDE

Against (1)

4

Slovenia ALDE

Abstain (1)

1

Lithuania ALDE

Against (1)

3

Latvia ALDE

1

Denmark ALDE

2

Estonia ALDE

Abstain (2)

2

United Kingdom ALDE

1
icon: EFDD EFDD
32

Germany EFDD

Against (1)

1

France EFDD

Abstain (1)

1

Sweden EFDD

2

Lithuania EFDD

For (1)

1

Poland EFDD

1
icon: NI NI
15

Germany NI

2

France NI

2

Hungary NI

2

Poland NI

2

United Kingdom NI

3
icon: ENF ENF
36

Romania ENF

1

Belgium ENF

Abstain (1)

1

Netherlands ENF

3

Poland ENF

2

United Kingdom ENF

Against (1)

1
icon: ECR ECR
68

Italy ECR

2

Romania ECR

For (1)

1

Croatia ECR

Against (1)

1

Czechia ECR

2

Finland ECR

Against (1)

2

Greece ECR

For (1)

1

Bulgaria ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Netherlands ECR

2

Cyprus ECR

Abstain (1)

1

Latvia ECR

Against (1)

1
AmendmentsDossier
437 2016/2301(INI)
2017/03/27 DEVE 64 amendments...
source: 602.720
2017/05/02 FEMM 16 amendments...
source: 604.548
2017/05/12 AFET 61 amendments...
source: 603.105
2017/06/07 INTA 296 amendments...
source: 606.024

History

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

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  • date: 2016-11-24T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2017-07-11T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2017-07-20T00:00:00 type: Committee report tabled for plenary, single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2017-0269&language=EN title: A8-0269/2017 summary: The Committee on International Trade adopted an own-initiative report by Maria ARENA (S&D, BE) on the impact of international trade and EU’s trade policies on global value chains. Global value chains (GVCs) have become a key element of the global economy. They can help developing countries to better integrate into it, reduce poverty and improve employment, while having a positive effect on increasing their production capacity. However, their complex nature and lack of transparency may lead to a higher risk of human and labour rights violations, factual impunity for environmental crimes and large-scale tax avoidance and tax fraud. EU position within global value chains : stressing that trade and investment policy aims to create a level playing field for European businesses and facilitate upward convergence on standards, the report called on the Commission to: ensure coherence between the EU’s environmental, public health, trade, investment and industrial policies; promote the European reindustrialisation strategy and the transition towards a low-carbon economy. Members considered that further integration of the EU into global value chains must not be to the detriment of the European social and regulatory model and the promotion of sustainable growth. They called on the Commission and the Member States to adopt reinforced trade defence instruments to combat unfair commercial practices, taking into account social and environmental dumping. Multilateralism : the Commission is called on to work within the WTO to enhance transparency and to define multilateral trade rules, in particular with regard to the sustainable management of GVCs, which should include in particular: mandatory supply chain due diligence and transparency requirements, building on the UN Guiding Principles on Business and Human Rights; minimum health and safety standards , recognising in particular workers’ right to establish safety committees; a social protection floor and respect for International Labour Organisation (ILO) labour standards; the right to collective bargaining. Corporate responsibility : highlighting the links between human rights and trade, Members welcomed the initiatives taken by the private sector that have enabled the sector to be involved in improving supply chain standards in recent years, including greater respect for human rights and workers’ rights. The European Commission is invited to update its Corporate Social Responsibility (CSR) strategy , which aims to strengthen social and environmental standards, insisting on the integration of CSR provisions into trade and investment agreements negotiated by the EU. Members also called for a new ways to support private-sector efforts to make global value chains more sustainable. EU free trade agreements (FTAs) and global value chains : Members welcomed the EU's new trade and investment strategy entitled ‘Trade for All’. They called on the Commission to address issues related to the development of GVCs, taking into account, for example, the following measures: implement the 2010 and 2016 Parliament's recommendations on chapters on trade and sustainable development in FTAs; inclusion in FTAs ​​of: (i) human rights clauses and chapters on trade and sustainable development in general dispute settlement mechanisms; (ii) enforceable provisions to combat corruption and protect whistleblowers; (iii) standstill clauses setting a minimum level of social, environmental and safety standards; (iv) provisions on tax transparency. The report also called for: work towards the establishment of adequate and efficient solutions for the introduction of a transparent and functioning mandatory ‘social and environmental traceability’ labelling system along the entire production chain; take steps to tackle the financial and procedural hurdles faced in civil litigation by victims of human rights violations by transnational corporations; ensure that the gender perspective is mainstreamed into trade and investment policy, the Aid for Trade strategy and all future FTAs and impact assessments; ensure that the review of GSP and GSP+ includes binding rules on human and labour rights and environmental protection ; support for the effective participation of SMEs in GVCs that aim to secure a larger share of value for producers while ensuring a high level of social, environmental and human rights protection. Lastly, Members welcomed the Commission's desire to protect the entire spectrum of IPRs , including patents, trademarks, copyrights, designs, geographical indications (GIs), marking of origin and pharmaceutical products, while ensuring access to affordable medicines, both at WTO level and through FTAs.
  • date: 2017-09-11T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20170911&type=CRE title: Debate in Parliament
  • date: 2017-09-12T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=30121&l=en title: Results of vote in Parliament
  • date: 2017-09-12T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0330 title: T8-0330/2017 summary: The European Parliament adopted by 497 votes to 124, with 56 abstentions, a resolution on the impact of international trade and EU’s trade policies on global value chains. Global value chains (GVCs) are a complex, rapidly changing reality which have become a key feature of today’s global economy. However, their extremely complex nature and lack of transparency may lead to a higher risk of violations of human and workers’ rights, factual impunity for environmental crimes and large-scale tax avoidance and tax evasion. There is a widespread view that trade policy should not lead to unfair distribution of benefits. Therefore, trade policy needs to put social and environmental values, as well as transparency and accountability , at its core. EU position within global value chains : Parliament stressed that trade and investment policy aims to create a level playing field for European businesses and facilitate upward convergence on standards. Further integration of the EU into global value chains must not be to the detriment of the European social and regulatory model and the promotion of sustainable growth. Members called on the Commission and the Member States to adopt reinforced trade defence instruments to combat unfair commercial practices , taking into account social and environmental dumping. Multilateralism : the Commission is called on to work within the WTO to enhance transparency and to define multilateral trade rules, in particular with regard to the sustainable management of GVCs, which should include in particular: mandatory supply chain due diligence and transparency requirements , building on the UN Guiding Principles on Business and Human Rights; minimum health and safety standards , recognising in particular workers’ right to establish safety committees; a social protection floor and respect for International Labour Organisation (ILO) labour standards; the right to collective bargaining. Corporate responsibility : Parliament recalled that the business community has an important role to play in offering positive incentives in terms of promoting human rights, democracy and corporate responsibility. While welcoming the many promising initiatives taken by the private sector in recent years, it invited the Commission to: give greater prominence to international rules on corporate social responsibility (CSR) and to promote the application of OECD sectoral guidelines and the United Nations guidelines on business and human rights; revise its CSR strategy , which aims to strengthen social and environmental standards, and whose main objective is to insist on the inclusion of CSR in trade and investment agreements negotiated by the Union; ensure compliance by European and international companies with the OECD Guidelines for Multinational Enterprises and the sector-specific OECD guidelines, such as the due diligence guidance for responsible supply chains of minerals from conflict-affected areas . EU free trade agreements (FTAs) and global value chains : Parliament requested the inclusion in FTAs ​​of: human rights clauses and chapters on trade and sustainable development in general dispute settlement mechanisms; enforceable provisions to combat corruption and protect whistleblowers; standstill clauses setting a minimum level of social, environmental and safety standards; provisions on tax transparency. Members also called for: work towards the establishment of adequate and efficient solutions for the introduction of a transparent and functioning mandatory ‘ social and environmental traceability’ labelling system along the entire production chain; the introduction of legislation for labelling rules regarding the origin of products entering the EU market; steps to tackle the financial and procedural hurdles faced in civil litigation by victims of human rights violations by transnational corporations; gender perspective to be mainstreamed into trade and investment policy, the Aid for Trade strategy and all future FTAs and impact assessments; the review of GSP and GSP+ to include binding rules on human and labour rights and environmental protection ; support for the effective participation of SMEs in GVCs that aim to secure a larger share of value for producers while a high level of social, environmental and human rights protection to be ensured. Lastly, Members welcomed the Commission's desire to protect the entire spectrum of IPRs , including patents, trademarks, copyrights, designs, geographical indications (GIs), marking of origin and pharmaceutical products, while ensuring access to affordable medicines, both at WTO level and through FTAs.
  • date: 2017-09-12T00:00:00 type: End of procedure in Parliament body: EP
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  • The Committee on International Trade adopted an own-initiative report by Maria ARENA (S&D, BE) on the impact of international trade and EU’s trade policies on global value chains.

    Global value chains (GVCs) have become a key element of the global economy. They can help developing countries to better integrate into it, reduce poverty and improve employment, while having a positive effect on increasing their production capacity. However, their complex nature and lack of transparency may lead to a higher risk of human and labour rights violations, factual impunity for environmental crimes and large-scale tax avoidance and tax fraud.

    EU position within global value chains: stressing that trade and investment policy aims to create a level playing field for European businesses and facilitate upward convergence on standards, the report called on the Commission to:

    • ensure coherence between the EU’s environmental, public health, trade, investment and industrial policies;
    • promote the European reindustrialisation strategy and the transition towards a low-carbon economy.

    Members considered that further integration of the EU into global value chains must not be to the detriment of the European social and regulatory model and the promotion of sustainable growth.

    They called on the Commission and the Member States to adopt reinforced trade defence instruments to combat unfair commercial practices, taking into account social and environmental dumping.

    Multilateralism: the Commission is called on to work within the WTO to enhance transparency and to define multilateral trade rules, in particular with regard to the sustainable management of GVCs, which should include in particular:

    • mandatory supply chain due diligence and transparency requirements, building on the UN Guiding Principles on Business and Human Rights;
    • minimum health and safety standards, recognising in particular workers’ right to establish safety committees;
    • a social protection floor and respect for International Labour Organisation (ILO) labour standards;
    • the right to collective bargaining.

    Corporate responsibility: highlighting the links between human rights and trade, Members welcomed the initiatives taken by the private sector that have enabled the sector to be involved in improving supply chain standards in recent years, including greater respect for human rights and workers’ rights.

    The European Commission is invited to update its Corporate Social Responsibility (CSR) strategy, which aims to strengthen social and environmental standards, insisting on the integration of CSR provisions into trade and investment agreements negotiated by the EU. Members also called for a new ways to support private-sector efforts to make global value chains more sustainable.

    EU free trade agreements (FTAs) and global value chains: Members welcomed the EU's new trade and investment strategy entitled ‘Trade for All’. They called on the Commission to address issues related to the development of GVCs, taking into account, for example, the following measures:

    • implement the 2010 and 2016 Parliament's recommendations on chapters on trade and sustainable development in FTAs;
    • inclusion in FTAs ​​of: (i) human rights clauses and chapters on trade and sustainable development in general dispute settlement mechanisms; (ii) enforceable provisions to combat corruption and protect whistleblowers; (iii) standstill clauses setting a minimum level of social, environmental and safety standards; (iv) provisions on tax transparency.

    The report also called for:

    • work towards the establishment of adequate and efficient solutions for the introduction of a transparent and functioning mandatory ‘social and environmental traceability’ labelling system along the entire production chain;
    • take steps to tackle the financial and procedural hurdles faced in civil litigation by victims of human rights violations by transnational corporations;
    • ensure that the gender perspective is mainstreamed into trade and investment policy, the Aid for Trade strategy and all future FTAs and impact assessments;
    • ensure that the review of GSP and GSP+ includes binding rules on human and labour rights and environmental protection; support for the effective participation of SMEs in GVCs that aim to secure a larger share of value for producers while ensuring a high level of social, environmental and human rights protection.

    Lastly, Members welcomed the Commission's desire to protect the entire spectrum of IPRs, including patents, trademarks, copyrights, designs, geographical indications (GIs), marking of origin and pharmaceutical products, while ensuring access to affordable medicines, both at WTO level and through FTAs.

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