EU Free Trade Research Articles

The Legal Significance of Trade and Sustainability Chapters in EU Free Trade Agreements

The article recalls the evolution and content of Trade and Sustainable Development (TSD) Chapters in EU Free Trade Agreements. They usually contain commitments of both parties to exercise their domestic law without undermining labour and environmental standards. Moreover, parties commit to respect their international obligations in the field and create joint bodies with participation of civil society. Comparing the panel reports on South Korea (2021) and on Ukraine (2020), the authors argue that their practical effect does not depend so much on their legal status, but more on the political will to implement them. The article also tackles the question of whether a breach of TSD commitments by one party can justify trade sanctions by the other. While TSD dispute settlement provisions create a special mechanism for ordinary breaches, recourse to trade sanctions is possible under Article 60 of the Vienna Convention on the Law of Treaties in case of material breaches on core labour rights or important environmental obligations. Finally, the authors sketch the policy change of the European Commission of 2022, according to which the Paris Agreement on Climate Change should become an essential element of EU FTAs, so that also breaches of that instrument may be enforced by trade sanctions.

Impact Of The Free Trade Agreement (FTA) on Agricultural Product Export Enterprises in Vietnam

Signing and implementing FTAs, especially new-generation FTAs, has promoted economic growth and improved Vietnamese society's spiritual and material life. Agricultural products are one of the industries most affected by implementing new-generation FTAs. Those impacts include both positive and negative results. This paper will analyze some of the effects of the EU Free Trade Agreement (EVFTA) on agricultural export enterprises in Vietnam after signing the Agreement. From that impact analysis, the paper will offer several recommendations and solutions for businesses and the government to help agricultural export enterprises in Vietnam take full advantage and benefit, also limit the negative impacts of FTAs.

Occupied Territories and the Exceptions to WTO and EU Rules on grounds of Public Morality, Public Order and Public Policy

This article discusses whether restrictions on trade with occupied territories imposed by national or sub-national authorities are permitted under exceptions to WTO and EU free trade rules on grounds of public morality, public order or public policy. The relevant provisions have a common origin and similarities in their terms. However, our analysis finds significant differences in their interpretation and application. Restrictions on trade with occupied territories are unlikely to be permitted on these grounds under WTO rules unless there is a strong justification for the restrictions in all the circumstances and they do not discriminate between different territories where relevant conditions are similar. By contrast, such restrictions are unlikely to be permitted under EU law if adopted unilaterally by an EU member state or sub-national authority. The different approaches and potentially different outcomes reflect the different priorities of the WTO and the EU. The primary objective of the WTO is to remove barriers and discrimination in international trade in a diverse global economy in which countries with differing values and alliances participate. By contrast, the highest priority of the EU is the integration of the economies and societies of its member states. Occupied territories, WTO, EU, free trade, exceptions, public morality, public order, public policy, discrimination, common commercial policy

Varieties of EU trade politicisation in EU public debates

AbstractThis paper examines the politicisation of EU trade policy at the level of the EU's Member States. In an effort to study the variation of politicisation across the EU, going beyond the degree to which an issue is politicised, we map out the debates surrounding EU free trade agreements (TTIP and CETA) in the media of Denmark, France, Germany, Italy, Spain and Poland, based on a novel representative claims analysis dataset. We ask whether and how claimants from different EUMS attempt to politicise FTAs in distinct ways. The expectation, based on Castles and Obinger' families of nations, is that the behaviour of claimants belonging to the same family of nations displays overarching features, which sets them apart from other claimants. By way of an actor‐level regression analysis, this study identifies possible correlations between claimant nationalities and types of politicisation. The findings suggest, on the one hand, that there is a link between families of nations, the socio‐economic and institutional trajectories they capture, and types of politicisation. On the other hand, the variation in how issues are politicised is not random but, just like policy outcomes, it appears to ‘cluster’ following a territoriality logic.

The ‘Level Playing Field’ Metaphor: Revealing a Competitive Move in EU Free Trade Agreements

The European Union’s (EU’s) ‘New Generation’ Free Trade Agreements (FTAs) often contain ‘level playing field’ obligations. ‘Level playing field’ obligations, in this context, are minimum, reciprocal obligations usually with respect to taxation, state-aid, and both labour and environmental standards. This short article is not so much concerned with these obligations or their effect, as it is with the use of the ‘level playing field’ metaphor to describe them, specifically in the context of labour and environmental standards. Through an examination of the actual usage, meaning and context of the level playing field metaphor, the article analyses and rejects arguments that a commitment to a level playing field in fact indicates a change on the part of states away from ‘free’ trade to ‘fair’. Rather, it demonstrates that the level playing field metaphor, at least in the context of EU FTAs, in fact functions as a kind of linguistic disguise for a competitive move in trade agreements. Level Playing Field, EU Trade, Free Trade Agreements, Free Trade, Fair Trade, Sustainabilty, Labour, Environment, Metaphor, Cognitive Metaphor Theory

US and EU Free Trade Agreements and implementation of policies to control tobacco, alcohol, and unhealthy food and drinks: A quasi-experimental analysis.

Identifying and tackling the factors that undermine regulation of unhealthy commodities is an essential component of effective noncommunicable disease (NCD) prevention. Unhealthy commodity producers may use rules in US and EU Free Trade Agreements (FTAs) to challenge policies targeting their products. We aimed to test whether there was a statistical relationship between US and EU FTA participation and reduced implementation of WHO-recommended policies. We performed a statistical analysis assessing the probability of at least partially implementing 10 tobacco, alcohol, and unhealthy food and drink policies in 127 countries in 2014, 2016, and 2019. We assessed differences in implementation of these policies in countries with and without US/EU FTAs. We used matching to conduct 48 covariate-adjusted quasi-experimental comparisons across 27 matched US/EU FTA members (87 country-years) and performed additional analyses and robustness checks to assess alternative explanations for our results. Out of our 48 tests, 19% (9/48) identified a statistically significant decrease in the predicted probability of at least partially implementing the unhealthy commodity policy in question, while 2% (1/48) showed an increase. However, there was marked heterogeneity across policies. At the level of individual policies, US FTA participation was associated with a 37% reduction (95%CI: -0.51 to -0.22) in the probability of fully implementing graphic tobacco warning policies, and a 53% reduction (95%CI: -0.63 to -0.43) in the probability of at least partially implementing smoke-free place policies. EU FTA participation was associated with a 28% reduction (95%CI: -0.45 to -0.10) in the probability of fully implementing graphic tobacco warning policies, and a 25% reduction (95%CI: -0.47 to -0.03) in the probability of fully implementing restrictions on child marketing of unhealthy food and drinks. There was a positive association with implementing fat limits and bans, but this was not robust. Associations with other outcomes were not significant. The main limitations included residual confounding, limited ability to discern precise mechanisms of influence, and potentially limited generalisability to other FTAs. US and EU FTA participation may reduce the probability of implementing WHO-recommended tobacco and child food marketing policies by between a quarter and a half-depending on the FTA and outcome in question. Governments negotiating or participating in US/EU FTAs may need to establish robust health protections and mitigation strategies to achieve their NCD mortality reduction targets.

THE STRUCTURE OF DIRECT FOREIGN INVESTMENTS IN GEORGIA AND MEASURING THEIR IMPACT ON GROSS DOMESTIC PRODUCT AND ECONOMIC GROWTH

What is the situation in Georgia in this regard? From the time of independence to 2021, up to 23 billion dollars have been invested in Georgia. In which sector of the economy did the largest share of incoming investments go? Were these industries a real sector of the economy? And how these investments have affected even such macroeconomic indicators as the dynamics of the gross domestic product and economic growth. Unfortunately, there are still unresolved challenges facing our country as obstacles to the growth of direct foreign investments in Georgia: 1. Underdevelopment of the capital market and stock exchange; 2. High interest rates on financial resources; 3. Political instability in the region and the problem of guaranteeing property rights; 4. Small market, low qualification of workforce and high rate of poverty; In addition to the challenges, Georgia has natural and also achieved advantages in the region: Strategic location – at the crossroads of Europe and Asia; Free trade agreement with the 2.3 billion market: EU, China (including Hong Kong), Turkey, Ukraine, CIS and European Free Trade Organization (EFTA) (Iceland, Liechtenstein, Norway and Switzerland); Low taxes. We are the 8th country in the world with the lowest tax burden. There are only 6 types of taxes in the country. as well as exemption from profit tax, in case of reinvestment of the won amount; In the case of correct use of all the above-mentioned non-piracy, it is quite possible to achieve and maintain a high rate of growth of the Georgian economy.

Green horizons – Towards more sustainable trade after the TSD Review

All eyes are on the European Commission following the communication on a new approach to Trade and Sustainable Development (TSD) Chapters in EU Free Trade Agreements (FTAs). The focal point of EU trade policy recently shifted back towards bilateral trade agreements with a greater scrutiny on the sustainability objectives embedded in the TSD Chapters such as tackling global emergencies including the climate crisis, deforestation, and biodiversity loss. But what does this new approach entail, and how effective will it be at improving the monitoring and enforceability of the TSD Chapters? This article reviews the new TSD Chapter approach and assesses its overall objective to address sustainability concerns linked to international trade. The article discusses missed opportunities for enhancing sustainability in EU trade agreements and reflects what the new TSD approach could mean for newly concluded and ongoing trade agreements.

Relations between Brazil and Spain under the Bolsonaro’s government

In this article the author examines in detail the bilateral relations between Spain and Brazil during the presidency of Jair Bolsonaro. In addition, the subject of this article is the opposition of EU governments to the environmental policies of the South American country and the disastrous policies of the Brazilian authorities in the fight against the COVID-19 pandemic. President Bolsonaro’s negligence of climate change and Amazon deforestation has prompted European governments to openly oppose the ratification of the Mercosur – EU Free Trade Agreement, which was signed in 2019 after 20 years of negotiations. In May 2016, the parties agreed on reciprocal terms, resulting in signing of the agreement. It also included the exchange of goods and services, essential investments and public procurements. All this was done in the context of a global policy of protectionism amid a weakening role of the WTO as a supporter of the trade liberalization process. Despite its success, countries such as France, Austria and the Netherlands stand against the Mercosur – EU trade deal, which can halt its ratification. The Spanish government, on the contrary, is lobbying for ratification of the agreement. Madrid, interested in benefiting from the Bolsonaro government’s liberal economic policies, maintains strong ties with its South American partner. The author analyzes the transformation of Spain from a relatively irrelevant partner of Brazil in the 20th century to one of the main investors directing significant resources to the Brazilian economy. We also assess the results and challenges of the Brazil – Spain strategic partnership in a broader context of the Brazil – EU relations.

Let’s Play?: An Examination of the ‘Level Playing Field’ in EU Free Trade Agreements

Free Trade Agreements to which the European Union is a party increasingly contain minimum obligations with respect to taxation, subsidies, and labour and environmental standards. Those obligations have been termed, in a highly pervasive and rhetorically effective metaphor, the ‘level playing field’. This article is directly concerned with the concept of the level playing field. Specifically, it examines the level playing field concept vis-à-vis ‘free trade’, how it has been implemented in recent EU free trade agreements (FTAs), particularly with respect to labour and environmental standards, why the concept seems to be gaining in influence and authority, and what that might mean for the liberal trading regime. level playing field, WTO law, EU Free Trade Agreements, free trade

Migration, development and EU free trade deals: the paradox of Economic Partnership Agreements as a push factor for migration

ABSTRACT The article problematizes the EU’s approach to trade, development and migration (TD&M) in the context of Africa–EU relations and the push for free trade deals under Economic Partnership Agreements (EPAs). According to EU policymakers there is harmony between trade policies, development goals and migration objectives. EU officials state that EPAs are a development friendly tool for job creation in Africa, and this in turn will address the “root causes of irregular migration” between the continents. There is a significant cause for concern, however, relating to the negative consequences of EPAs for jobs in the continent, particularly in labour intensive import-competing agricultural sectors. Free trade deals may therefore stimulate migration from Africa to Europe. This apparent paradox is underscored by recent fieldwork conducted in Ghana’s poultry sector which highlights business stakeholders’ deep concerns about EPAs stoking unemployment and migration.

Who Uses the EU's Free Trade Agreements? A Transaction-Level Analysis of the EU–South Korea FTA

AbstractThe tariff preferences in FTAs do not apply automatically to all imports. Instead, importers can request to use the tariff preferences, but must then show that the imported goods fulfil the formal requirements (e.g. rules of origin) of the FTA. This is costly, which is a likely reason why tariff preferences are not always used. This research note examines preference utilization under the FTA between the EU and South Korea, which was formally ratified in 2015 (but had been provisionally applied from 2011). We use firm and transaction level data for Swedish imports from South Korea during November 2016 to answer the question ‘Who uses the EU's FTAs?’ With information on firm size, product category, import mode (direct imports or customs warehousing), preference margin, potential duty savings, and transaction size, we provide a detailed picture of when firms choose to utilize the tariff preferences. The results suggest that the differences across importers are not primarily related to firm size, as is sometimes suggested in extant literature. We also find that it is the size of the import transaction rather than the size of the preference margin that determines preference utilization.

Eu-Ukraine Economic Relations in Context of Desintegration Processes, Informatization and Innovative Development

The influence of disintegration processes on the development of regional trade agreements is revealed. Opportunities and threats to cooperation between Ukraine and the EU within the Deep and Comprehensive Free Trade Area at the state level, for enterprises and the population have been identified. To achieve the aim of the research, the method of hypotheses, the method of developing search questions and questionnaires, the method of expert questionnaire survey of government officials, business community and the scientific community were applied in combination with statistical methods of primary information processing and the software SPSS Statistics 23. The aim of article is to identify threats and opportunities of the Ukraine - EU Free Trade Area and priority forms of cooperation. Ukraine is exposed to disintegration tendencies and destabilizing political processes, influence of loss of control over the most industrially developed eastern territories, disruption and severance of established internal economic ties. The efficiency of cooperation forms in ensuring the stability of international economic relations is estimated. Based on results of the study, practical recommendations were developed for both enterprises (micro-level of international cooperation) and for the government (macro-level). In the context of digitalization and informatization in the global environment and the dynamic growth of the IT sector, international cooperation in this area is becoming especially important. According to the results of the study, Ukraine and the EU have mutual economic interests to develop cooperation in the IT field, which requires support and involvement of both parties in improving regulatory conditions and integration mechanisms.

EU Trade Policy Meets Geopolitics: What About Trade Justice?

The European Commission’s new trade policy review promises more assertiveness and enforceability. While aligning with the ambition to become a geopolitical actor, it is unclear how this bodes for trade justice. Focusing on the Trade and Sustainable Development Chapters in EU free trade agreements, a number of critical questions can be raised on the putative benefits of a more muscular approach.

Transparency in EU Trade Policy: A Comprehensive Assessment of Current Achievements

<p>The EU trade policy is increasingly confronted with demands for more transparency. This article aims to investigate how transparency takes shape in EU trade policy. First, we operationalize the concept of transparency along two dimensions: a process dimension and an actor dimension. We then apply this framework to analysis of EU Free Trade Agreements (FTAs). After analyzing transparency in relation to FTAs from the perspective of the institutional actors (Commission, Council and Parliament), the different instruments and policies that grant the public actors (civil society and citizens) access to information and documents about EU FTAs are explored by discussing Regulation 1049/2001, which provides for public access to European Parliament, Council and Commission documents, and the role of the European Ombudsman. The article is based on an analysis of official documents, assessments in the academic literature and case-law of the Court of Justice of the European Union. The ultimate aim is to assess current initiatives and identify relevant gaps in the EU’s transparency policies. This article argues that the EU has made significant progress in fostering transparency in the negotiation phase of FTAs, but less in the implementation phase.</p>

Retooling the Sustainability Standards in EU Free Trade Agreements

ABSTRACT The EU’s weak promotional policy towards sustainability in its free trade arguments is up for revision. Labour and environmental standards need to be tightened. They were given a boost on balance by a remarkable panel ruling of January 2021 in the long-standing EU–Korea labour dispute. Compliance ought to be subject to regular dispute settlement between governments. Sanctions must be added to the EU’s toolbox, going beyond trade retaliation. Private stakeholders should become more involved in monitoring and enforcement, both at the international and at the domestic level. All this will put an extra responsibility on the EU and its Member States to protect their labour force and the environment as well.

Using Utilization Rates to Identify Rules of Origin Reforms: The Case of EU Free Trade Area Agreements

Governments are increasingly entering FTAs and mega-regionals to secure market access for their firms. Utilization rates are used to monitor whether firms are using these FTAs. This paper is part of a recent stream of studies to dash out enduring myths that preferences are not used when preferential MFN rates are low or for unknown or vague reasons. Contrary to this sort of conventional wisdom this study advocates that low utilization rate is a valuable and unequivocal sign that reform of rules of origin and related administrative procedures is needed to make the FTA attractive and meaningful to the private sector. By using a “repeated offender” methodology this paper identifies a series of product specific rules of origin (PSROs) causing low utilization rates. Such PSROs are the candidate for reforms towards more lenient requirements that are commercially viable for firms.

The Conclusion and Implementation of EU Free Trade Agreements: Constitutional Challenges

The Conclusion and Implementation of EU Free Trade Agreements: Constitutional Challenges

Brexit in the Eyes of East: How Will It Reshape EU/UK Trade Relations with East Asia?

Brexit reshapes not only the EU-UK relations but also impact their trade relations with Asia. This article explores possible directions of EU/UK trade relations with Asia, covering free trade agreements, bilateral investment treaty and the UK’s potential participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This article argues that a sense of competitive liberalization motivates their pursuit for trade opportunities with East Asia. The EU has to prove its continuous relevance in the international economic relations as the Brexiters allege it as a constraint for the UK to pursue active and flexible trade relations. In contrast, the UK has to fulfill its promise of Global Britain by delivering measurable progress in trade negotiations instead of renegotiating back what it has already enjoyed under the EU free trade agreements (FTAs). Brexit, Global Europe, Global Britain, Free Trade Agreement, Bilateral Investment Treaty, Comprehensive and Progressive Agreement for Trans-pacific Partnership, populism, disintegration

THE PURSUIT OF SUSTAINABLE AGRICULTURE IN EU FREE TRADE AGREEMENTS by LuchinoFerraris Published by Wageningen Academic, 2020, 288 pp., €59.00, paperback.

THE PURSUIT OF SUSTAINABLE AGRICULTURE IN EU FREE TRADE AGREEMENTS by LuchinoFerraris Published by Wageningen Academic, 2020, 288 pp., €59.00, paperback.