1. OPENING TOWARDS NEW TRADE PARTNERS
NEIGHBOURING POLICY AND FREE TRADE AGREEMENTS
Sofia
10th November 2005
By Thomas Nietsch
Expert of foreign trading
Sofia

2. MAIN TOPICS The European Neighbourhood Policy
Euro-Mediterranean Partnership
Sofia

3. What is the European Neighbourhood Policy?
Commissioner Benita
Ferrero-Waldner:
„The European Neighbourhood Policy is a new policy that invites our neighbours to the East and to the South to share in the peace, stability and prosperity that we enjoy in the European Union and which aims to create a ring of friends around the borders of the new enlarged EU.”
It does not imply EU membership!
That’s why does not cover candidate countries, like Bulgaria
Sofia

4. Countries Covered by the ENPUA MD GE AZ AM SY LB MA IL TN PS DZ LY EG JO
Sofia

5. The Beginning of the ENP
Commission’s „Communication on Wider Europe” in March 2003
„to avoid the emergence of new dividing lines on our continent” after the enlargement (Ms. Ferrero-Waldner)
Commission’s „Strategy Paper and Country Reports” on 12th May 2004
Co-operation in economic and social development, trade and energy
Regional integration
Commission’s first set of „Draft Action Plans” with partner countries on 9th December 2004
Key priorities, to be monitored regularly
Action plans country by country, with different issues
Sofia

6. The Objectives of ENP Sharing the benefits of the 2004 enlargement
Strengthening stability, security and well-being
Greater political, security, economic and cultural co-operation
Reduction of trade barriers, stimulating investment and economic growth
Common values:
Rule of law, good governance, respect for human rights, incl. minority rights, promotion of good neighbourly relations, principles of market economy and sustainable development
In case of significant progress in the ENP countries, European Neighbourhood Agreements
Sofia

7. Parts of the ENP Northern Dimension policy of the EU
Co-operation between EU – EEA – Russia
Eastern countries: Partnership and Co-operation Agreements
Euro-Mediterranean Partnership (Barcelona process)
Association agreements with ENP countries in the Mediterranean and the Middle East
Trade preferences
Sofia

8. European Neighbourhood and Partnership Instrument
Financial assistance within the ENP
Replacing TACIS and MEDA programmes from 2007
TACIS:
a programme of technical assistance to 12 CIS countries, launched in 1991
Supporting the process of transition to market economies and democratic societies
MEDA
The principal financial instrument of the Euro-Mediterranean Partnership programme, launched in 1995
For the ENP countries + Russia
Sofia

9. ENPI
Sofia

10. Present Situation of ENP
Sofia

11. Euro-Mediterranean Partnership
The start:
The Euro-Mediterranean Conference of Ministers of Foreign Affairs
Barcelona, November 1995
25 EU members + 10 Mediterranean countries (incl. Turkey)
Libya is an observer since 1999
Sofia

12. The Barcelona Declaration
Objectives:
Common area of peace and stability
Free-trade area
Understanding between cultures and exchanges between civil societies
Dimensions:
Bilateral dimension
Association agreements country by country
Regional dimension
Dealing with common problems
Sofia

13. Euro-Mediterranean Free Trade Area
Decided in Barcelona
Target date 2010
Means:
Individual association agreements between the EU and the partner countries
Bilateral free trade of manufactured goods
Liberalisation of the trade of agricultural products
Free trade agreements between the partner countries
EU – Turkey Association Agreement, 1995
Customs union
Sofia

14. Association Agreements
Lebanon: Interim AA – 2003, Syria: AA – 2004 not yet ratified
Sofia

15. Importance of EMFTA EMFTA + EFTA = free trade zone of
About 40 countries
About million consumers
The world’s biggest marketplace
South-South integration
Arab Maghreb Union
Morocco, Algeria, Tunisia, Mauritania, Libya
Agadir Agreement
Morocco, Tunisia, Egypt, Jordan
Sofia

16. Pan-Euro-Mediterranean cumulation of origin
Product of country A (originating)
Export to country B
Production with country A’s product
Product of country B has an originating status, too
Country B’s product gets the free trade treatment in the EMFTA
Sofia

17. Pan-Euro-Mediterranean cumulation of origin
The system will be extended to the Faeroe Islands, too
All the bilateral association agreements and free trade agreements should be amended
Identical protocols on rules of origin
„variable geometry”: a minimum of three countries can apply the new system, without waiting for the others
Sofia

18. Partial Drawback of Import Duties
Drawback of import duty:
An import product is used for a production and the finished product is exported
General rule:
No drawback of import duties from third countries (out of the Pan-Euro-Med region)
Exception for the Mediterranean countries:
Partial drawback of duties in case of exporting manufactured products
A flat rate of e.g. 5-10% remains, the rest of the import duty is reclaimed
With the exception of agricultural products (HS 1-24)
Sofia

19. Pan-Euro-Med Rules of Origin
Bilateral trade with bilateral cumulation
No prohibiton of drawback
New proofs of origin, due to variable geometry
Movement certificate EUR-MED
Invoice declaration type EUR-MED
Both will show the originating status of the material used for production
EUR.1 remains for Pan-European trade and bilateral trade (e.g. EU – Morocco)
Sofia

20. Example Fabrics from Turkey to Tunisia
A Tunisian company produces garment from it
Garment exported to the EU
Garment re-exported from the EU to Switzerland
Without the new cumulation rules the Swiss importer should pay import duties
With the new cumulation rules there will be preferential duty in Switzerland
Sofia

21. Summarising New events will have a great effect on the European trade
European Neighbourhood Policy
Action Plans, country reports
Resulting in bilateral agreements, preferential trade
Euro-Mediterranean Partnership
Within a short time
Pan-Euro-Med cumulation, EUR-MED movement certificate
Till 2010
Pan-Euro-Med free trade area
Sofia

22. Further Information My contacts:
My contacts:
+36(30)
+36(1)
Malta, 14 October 2005

23. THANK YOU!
Sofia