Bilateral and Regional Trade Relations

91. In parallel to its firm commitment to the multilateral system, the EU has pursued ambitious complementary trade liberalization at both regional and bilateral levels. The EU has consistently defined its own RTAs in ways that ensure they complement the multilateral trading system, and that make them a stepping stone rather than a stumbling block for further multilateral trade opening. In accordance first with its Global Europe strategy, re-emphasised in the new trade communication, the EU has decided to aim at a new generation of FTAs that extend beyond present agreements and build towards future multilateral negotiations. The EU thus seeks FTAs which are - in line with the letter and the spirit of the WTO Agreements - comprehensive in scope and deep in terms of level of commitment, in both goods and services. Particular emphasis is placed on tackling regulatory and non-tariff obstacles to trade. FTAs also address areas such as intellectual property rights, investment and government procurement. They are, moreover, designed to promote sustainable development, and therefore include high environmental and labour standards.

92. The EU–South Korea Free Trade Agreement was signed at the EU–South Korea Summit in October 2010 and will be provisionally as of 1^st July 2011, pending final ratification of the agreement by the Member States. South Korea is already the EU's eighth largest trade partner, while the EU has become the second largest export destination for South Korea. The Agreement provides for the progressive liberalisation of trade in goods and services, and for rules on i.a. competition and state aid, intellectual property and public procurement. To tackle non-tariff obstacles to trade, it includes specific provisions on electronics, motor vehicles and vehicle parts, pharmaceuticals, medical devices and chemicals. It will bring major benefits to economic operators and to consumers, as well as sending a strong message that trade liberalisation is a key element for the recovery of the world economy.

93. Following the suspension of the EU-ASEAN FTA negotiations in 2009, negotiations for bilateral free trade agreements were launched with Singapore in March 2010 and with Malaysia in October 2010.

94. Negotiations for comprehensive Economic Partnership Agreements continued with all the African regions as well as with the Pacific. Progress in these regions is uneven. The Commission ensures proper implementation of those agreements which have already been finalised, in particular in the Caribbean and Papua New Guinea.

95. Progress in negotiations on free trade agreements with Canada and Ukraine held out the prospect of significant shifts in the global trade landscape and of new trade opportunities for EU businesses and investors in these growing markets.

96. Significant progress was also made in the negotiations for a free trade agreement with India launched in 2007, with both sides confirming their commitment at the EU – India Summit on 10 December 2010 that both sides would dedicate all efforts necessary to conclude the negotiations as rapidly as possible.

97. The EU successfully concluded the negotiations for an Association Agreement with Central American countries. These were launched in 2007 with 5 countries, and were concluded in 2010 with the participation of a sixth Central American partner, Panama. Similarly, the negotiations with the Andean Community were concluded in 2010, resulting in a Multi-Party Trade Agreement with Peru and Colombia. Although Ecuador and Bolivia decided to opt out of the negotiations, the EU is leaving the door open for these countries to resume the negotiations and join the Agreement at a later stage. Both of these preferential agreements reflect a high level of ambitions in terms of tariff reductions, services coverage, market access for investments, and government procurement. They also effectively target beyond-the-border trade barriers with a comprehensive coverage of disciplines on intellectual property rights, sanitary and phyto-sanitary requirements, and technical requirements and standards. The agreements also promote regional economic integration through rules and via linkages with cooperation activities, and take care of broader concerns notably in the area of sustainable development, the environment and of labour rights.

98. The EU has continued negotiations with Southern Mediterranean partners to complement Euro-Mediterranean agreements. Negotiations on agreements on further liberalisation of agricultural, processed agricultural and fisheries products were concluded with Egypt and Israel (entry into force in 2010), and with Morocco and the Palestinian Authority (approved by Council but pending consent of the European Parliament); they are ongoing with Tunisia. Negotiations to liberalise trade in services and establishment are ongoing with Egypt, Morocco, Tunisia and Israel. A number of protocols establishing bilateral dispute settlement mechanisms for trade matters were signed with Egypt, Jordan, Lebanon, Morocco and Tunisia. Negotiations continue with the Palestinian Authority. Also, the first agreement on conformity assessment and acceptance of industrial products, which developed from the earlier mutual recognition agreement, was signed with Israel in 2010, and discussions are ongoing with other Southern Mediterranean countries, aiming at launching some negotiations end of 2011. With Libya, the EU suspended negotiations on a deep and comprehensive free trade area on 23 February 2011. Currently the EU is implementing UNSCR 1970 (2011) sanctions against Libya with additional EU autonomous sanctions.

99. In 2010, the EU also agreed with Mercosur to re-launch negotiations for an EU-Mercosur Association Agreement which would notably include a comprehensive and ambitious preferential trade component.

100. With Iraq, negotiations on a Partnership and Cooperation Agreement were concluded in 2010 and the agreement will be signed later this year. The trade part of that agreement is based on WTO rules with wide coverage of trade policy sectors. It also provides for some substantial elements, namely as regards public procurements and services.

101. With Mongolia, the EU concluded in 2010 a Partnership and Cooperation Agreement that will be signed later this year. The trade part of that agreement is based on WTO rules and particular attention was devoted to the disciplines applicable to the trade of raw materials.