Trade Foreign Affairs Council and Notification of UK Opt-in

Tuesday 22nd November 2016 Written Statements

[The Secretary of State for International Trade and President of the Board of Trade (Dr Liam Fox)]

My noble Friend the Minister of State, Lord Price has today made the following statement:

The EU Foreign Affairs Council (Trade) took place in Brussels on 11 November 2016. I represented the UK at the meeting. A summary of the discussions follows.

Modernisation of Trade Defence Instruments (MTDI)

Over breakfast, the presidency’s latest compromise proposal was discussed, which included suggestions for how to limit use of the Lesser Duty Rule (LDR) in particular circumstances. Commissioner Malmström underlined that limitations to the LDR would be the exception and not the rule and committed to provide further evidence in support of the proposal.

Given that there were still outstanding issues to resolve, no vote took place at trade FAC. However, given the support from a significant number of member states, work will continue at working level and Coreper, where the presidency will aim to finalise a comprehensive mandate for trilogues before the December European Council.

WTO, Trade in Services Agreement (TiSA), Environmental Goods Agreement (EGA).

Malmström said the EU needed to work with others to shape the possible outcomes for the 11th WTO ministerial conference in Buenos Aires in December 2017.

Malmström reiterated that concluding TiSA was firmly in the EU’s interests. On the EGA, she said that conclusion at the 3-4 December ministerial was a real possibility. The outstanding EGA issue of bicycles was again discussed.

EU-US (TTIP)

Commissioner Malmström recapped on recent progress on TTIP. Discussions supported the need for a realistic approach and I underlined our continued support and suggested that we wait to see how the political context evolved.

EU-Japan

Recent negotiations had gone well, but further progress was needed on non-tariff measures, services and procurement.

It is difficult to know how the stalling of TPP might affect EU-Japan.

EU-Mercosur

The October round with Mercosur, the first for four years, had gone well, with Mercosur showing more flexibility on goods and engaging on a wider range of issues.

Ukraine Autonomous Trade Measures (ATMs)

Commissioner Malmström sought to reassure member states that safeguards would limit any negative impact on the EU of the proposed further ATMs, which go beyond the provisions of the EU-Ukraine free trade agreement. It was important to bear in mind the broader political context for the proposal.

Ecuador accession to the EU-Andean FTA

At the signing ceremony of the protocol for Ecuador’s accession to the Andean FTA, I signed on behalf of the UK.

The UK also opted in to the Council decisions on signing, provisional application and conclusion of the protocol of accession of Ecuador to the Andean FTA, insofar as they relate to the temporary presence of natural persons for business, otherwise known as Mode IV. The Government are committed to taking all opt-in decisions on a case-by-case basis, putting the national interest at the heart of the decision-making process.

[HCWS275]