(EU) and the Common Market of the South (MERCOSUR)? - FDCL

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96 “We have tried to explain how much we believe the Singapore issues, such as trade facilitation, are the key, not the hindrance, to development.”280 In view of this immense significance given to the Singapore-issues by the European Commission, the BBC in the run-up to Cancún could not resist to spread the news that henceforth the focus would be on the “Brussels-issues.” 281 And especially two of these Brussels-issues are of special importance for the EU: Investment and government procurement. In this context the Commission envisions the following with respect to the investment issue: “We believe that it is in the interest of all countries to create a more stable and transparent climate for FDI world-wide. In our view, the WTO should focus on FDI, leaving aside short-term capital movements. Non-discrimination, transparency and predictability of domestic laws applicable to FDI should be the guiding principles for the investment framework that we envisage to negotiate. The admission of investors should be dealt with following a gradual approach: each government should be able to decide which sectors can be opened to foreign investors and which ones cannot, according to transparent, positive and non-discriminatory commitments. Each government should also preserve the right to regulate the economic activity within its territory, including in the fields of development, environment and social conditions. The dispute settlement mechanism should be that of the WTO. Investor-to- State arbitration does not fit in the WTO framework, and should be left to bilateral agreements. Rules on investment protection, for instance in case of expropriation, could also be discussed, if WTO Members found it useful. Any such rules, however, must not affect a host country’s right to regulate, in a non-discriminatory manner, the behavior of firms in its territory.” 282 At the same time, the negotiating side for the EU, after the “failure” of Cancún, seems to have made a shift in orientation: 280 Speech by Commissioner Pascal Lamy to the United Nations, October 31, 2003 “IS THERE LIFE AFTER CANCUN?”. 281 http://www.bbc.co.uk/portuguese/economia/story/2003/09/030911_casssuca2mp.shtml. 282 EU: DG Trade: http://europa.eu.int/comm/trade/issues/sectoral/investment/conswtoag_inv.htm.
“As far as the EU is concerned, it is suggested that we now be ready to explore alternative approaches to negotiating the Singapore issues of investment, competition, trade facilitation and transparency in government procurement, possibly through removing them from the single undertaking of the negotiations and through negotiating them as plurilateral agreements if necessary. While maintaining our substantive objects, it also suggests a slight adjustment of the approach on trade and environment and geographical indications aimed at reducing reticence to negotiations in these areas.” 283 The EU ambassador to the WTO in Geneva, Carlos Trojan, has praised the EU –proposal, to take the “Singapore issues” out of the single undertaking, as a “major shift” of EU-policy. 284 Nevertheless, it seems apparent, that Brussels does not want to take the Singapore-issues completely out of the negotiation agenda, but that it is looking for “alternative approaches” within the negotiating process. If they are taken out of the single undertaking now, the EU-Commission can still put them on the agenda later or on a bilateral level. –And the investment issue is extremely urgent for the EU, which is completely in the interest of the rights and profit margins of European corporations. 283 Communication from the Commission to the Council, to the European Parliament, and to the Economic and Social Committee: Reviving the DDA Negotiations - the EU Perspective, Brussels, November 26, 2003, p. 2. 284 See Alexandra Strickner (TIP/IATP Geneva): Trade Talks remain stalled as major powers show no flexibility. Trade negotiating bodies to be reestablished early next year, December 18, 2003. 97
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Christian Russau Enforcement of int
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Preface Since the end of 1999 the C
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If the “Interregional Association
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8 Chapter 5: The enforcement of int
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10 1.1 Negotiations of the “Inter
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12 A similar agreement of the so-ca
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14 tute in the eyes of many countri
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16 amaraty, where the FTAA-negotiat
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18 free trade agreement between the
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20 at the UN Millenium Summit to ha
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22 on the possibility of a unilater
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24 tual contradictions between the
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26 fired. The workers union OGB-L,
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28 policy and EU development policy
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Chapter 2: Foreign direct investmen
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50% in 2002 as compared to the prev
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The reasons for propagating this co
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• according to a study conducted
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promotion of domestic demand, in or
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2.2 International Agreements and Tr
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2.3 The World Trade Organization WT
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(EU) and the Common Market of the South (MERCOSUR)? - FDCL

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