1. STAVROS AFIONIS The Hague (April 2013)

2. Presentation Outline  The EU – Brazil partnership  Legal and trade issues  Indirect land-use change  Highly biodiverse grasslands  Trade barriers  Conclusions www.cccep.ac.uk

3. The EU’s partnerships The 2003 European Security Strategy (ESS) Existing partners United States Japan Canada Brazil China India Mexico Russia South Africa Potential partners Egypt Israel Indonesia Pakistan Ukraine South Korea

4. The EU – Brazil partnership  Established in 2007  1 st Joint Action Plan (JAP) in 2008  2 nd JAP in 2011 (to last until 2014)  Over 20 sector dialogues Summits 2007 Lisbon 2008 Rio de Janeiro 2009 Stockholm 2010 Brasilia 2011 Brussels 2013 Brasilia 1)Energy 2)Environment and Climate Change 3)Information Society 4)Maritime Transport 5)Satellite Navigation - “Galileo” 6)Science and Technology 7)Culture 8)Education a.) Trade b.) Environment www.cccep.ac.uk

5. The EU – Brazil partnership  Agenda dominated by trade issues  Brazil is the EU’s 10th trading partner (2.2%)  EU is Brazil’s main trading partner (22%)  Main issues A. EU – MERCOSUR trade agreement  Negotiations collapsed in 2004, re-launched in 2010 B. Liberalization of EU agricultural market  Negotiations in progress (WTO Doha Round) www.cccep.ac.uk

6. EU and biofuels A. Directives Biofuels Directive (2003) Renewable Energy Directive (2009) Targets a.) 2% by 2005 b.) 5.75% by 2010 10% by 2020 B. Sustainability criteria. 1.GHG emission savings of at least 35% (rising to 50% in 2017) 2.Feedstock not to be derived from land with high biodiversity value 3.Feedstock is not to be derived from land with a high carbon stock www.cccep.ac.uk

7. EU, Brazil and biofuels Issues  Indirect land-use change (iLUC)  Definition of “highly biodiverse grasslands”  Trade barriers www.cccep.ac.uk

8. Indirect land-use change (iLUC) Source: Fehrenbach et al, 2008. “Criteria for a Sustainable Use of Bioenergy on a Global Scale” UBA-FB Report 206/41/112, p. 51. www.cccep.ac.uk

9. Indirect land-use change (iLUC) Brazil acknowledges scientific consensus on iLUC Science has progressed, but models still in infancy More science needed – Brazil satisfied with 2 nd draft The 5% cap is inadequate What does Brazil propose? US process much more transparent www.cccep.ac.uk

10. Highly biodiverse grasslands  Definition expected since 2010  Vital issue for Brazil Brazil to expand sugarcane plantations in pasture land 2 nd sustainability criterion a)Primary forest b)Natural protected area c)Highly biodiverse grassland

11. www.cccep.ac.uk Highly biodiverse grasslands Concept invented as a result of an intra-EU compromise Definition a complicated issue – several drafts rejected Agreement possibly reached this month Why has it taken so long: Challenging task Intra-EU repercussions Brazil surprised…

12. Highly biodiverse grasslands Why is this so important to Brazil? Agriculture expands in pastures About 70% of sugarcane plantations Compliance could be quite costly Natural vs. non-natural grasslands Need for in situ inspections Brazil wants the CBD to come up with a definition www.cccep.ac.uk

13. Trade barriers Tariffs and subsidies  EU biofuels protectionism  Discussions in several fora a) MERCOSUR b)WTO  Barriers bound to be abolished??? supports uneconomical & energy inefficient production www.cccep.ac.uk

14. Concluding remarks  Partnership has revolutionised bilateral relations  Focus is on trade  iLUC, grasslands and trade barriers top the agenda  Prospects do not appear promising www.cccep.ac.uk