
On 11 March, the EU and Cuba finalised negotiations towards a
Political Cooperation and Dialogue Agreement, ending more than a decade
of political ostracism for the Caribbean state.
Negotiations long believed dead between the European bloc and
Mercosur are about to be revived, the planned launch of a modernisation
process for a fifteen year old agreement with Mexico is generally
considered a matter of months, if not weeks away, and a similar move is
in the pipeline with Chile.
The EU-Cuba agreement is “historic”, Federica Mogherini, the EU’s
foreign policy chief, said. The deal “opens a legal framework for our
economic cooperation, policy dialogues, but also much more than that. It
opens up perspectives for major engagements for all”. The EU has also
taken the opportunity to call on the US to end its trade embargo on
Cuba, which has extra-territorial reach, and thus harms EU businesses.
“I also publicly raised the issue [when in Havana on 11 March]. The
embargo policy of the US is outdated,” Mogherini said.
The EU’s High Representative was in Argentina a few days before her
trip to Cuba, and made it official in Buenos Aires that a deal with the
South Americans was on its way, with an exchange of tariff offers
expected for April this year.
“What I see in Mercosur today is a very strong commitment to exchange
offers and start negotiations for real.
And I think this is a political
opportunity that we cannot miss,” Mogherini said. There is also a
“clear recognition that the exchange of offers is a starting point for
negotiations, a basis for potential improvements”, she said, adding that
the EU needs to “start negotiations immediately before the window
closes”.
Federica Mogherini set out the EU’s expectations with the coming
trade negotiations with Chile and Mexico. The coming upgrade should end
up with deals that are “comparable to CETA with Canada and TTIP with
United States”, she said.
Chile’s Ambassador to the European Union, Carlos Appelgren, said that
the results of the country’s 2003 FTA with the EU “have been
extraordinarily successful. Bilateral trade has increased by a rate of
9% per year, growing from $7 billion in 2002 to more than $21 billion in
2014”, Appelgren stressed.
The Chilean envoy noted that since 2013, the European Union had
posted a trade surplus with Chile. EU foreign direct investment is
dominant in Chile, accounting for 34 percent of FDI stocks in the Andean
country, and is focused on mining, services and infrastructure.
For the coming negotiations, the ambassador cited “liberalisation of
remaining tariff barriers, covering 2 percent [of tariff lines]”, public
procurement, sustainable development, the gender dimension of trade,
and services as Santiago’s priorities. He said there are plans for a
“robust agreement on investment to overcome the fifteen BITs” Chile has
signed with individual EU member states. Santiago also aims to simplify
rules of origin, tackle non-tariff barriers to trade, trade defence and
competition.
Mexican Ambassador to the EU, Cesar Guera, said that the
modernisation of the commercial pillar of the EU-Mexico Association
Agreement of 200/2001 would include, “among other topics: liberalisation
of agriculture goods, reform of rules of origin, with special focus on
cumulation with common [FTA] partners, and seek to increase transparency
and cooperation in sanitary and phytosanitary [issues]”.
In services, the goal would be to lock in recent Mexican reforms in
telecommunications, finance and energy. Guera also said the deal should
aim to protect investments “to the highest standards, taking into
account the new focus of the EU on the topic”, in reference to the
European Union’s investment court proposal to replace investment
arbitration to settle disputes between investors and host states.
“Mexico hopes to start shortly with the broad and ambitious
modernisation of the agreement with the EU. Both sides are highly
prepared to take that important step.”
Mexico and Chile are parties to the Trans-Pacific Partnership (TPP),
the Asia-Pacific trade agreement clinched in 2015 under US aegis.
Mexico, a member of NAFTA, is also seeking to upgrade its relationship
with the EU after TTIP and the recently concluded CETA, agreements which
could harm Mexico if no complementary measures are taken.
The EU concluded FTAs with Peru and Colombia in 2012/2013, and is
finalising the inclusion of Ecuador into the Peru/Colombia deal.
EU-Digest