EU Commission proposes improved rules to enforce EU rights under international trade agreements

The EU Commission is proposing a Regulation to establish a clear and predictable framework for adopting implementing acts following international trade disputes that have a negative economic impact on the EU. In cases of last resort, trade sanctions can be put in place to encourage the offending country to remove illegal measures.

Action could also be taken to compensate for import restrictions that be imposed on EU products in exceptional situations (so-called safeguard measures), or to react to cases where a WTO member country changes its trade regime in a way that negatively affects EU trade (such as raising its import tariffs) without adequate compensation.

Such implementating acts can only be taken under certain well-defined conditions and might take the form of new or increased customs duties or quotas on imports or exports of goods, among other possible measures.

The proposal is for an EU Regulation of the Council and the European Parliament and will now be discussed by the Council and the European Parliament under the ordinary legislative procedure.

The proposal is part of the Commission's broader objective to improve the exercise of EU rights for the enforcement of international trade rules. It was set out in the Commission Communication on "Trade, growth and world affairs" and endorsed in the Council conclusions of 21 December 2010 . Specifically, the EU committed to step up its efforts to enforce its rights under bilateral and multilateral agreements to open markets that are illegally closed.

The Commission's proposal intends to remedy to the current situation where the EU does not have a single horizontal framework to react swiftly and efficiently on enforcing international trade rulings. The establishment of a framework of rules is needed following the entry into force of the Treaty of Lisbon, under which legislative and executive functions are clearly divided between EU institutions. Previously, action to enforce EU rights under international trade agreements followed an ad hoc approach that no longer responds to the needs of the EU.

Read more: Commission proposes improved rules to enforce EU rights under international trade agreements - Updated with the regulation. - Trade - European Commission