PURPOSE: to conclude an Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism.

NON-LEGISLATIVE ACT: Council Decision 2011/392/EU on the conclusion of an Agreement between the European Union and the Kingdom of Morocco establishing a dispute settlement mechanism.

BACKGROUND: on 24 February 2006 the Council authorised the Commission to open negotiations with partners in the Mediterranean region in order to establish a dispute settlement mechanism related to trade provisions.

These negotiations have been concluded and an Agreement between the European Union and the Kingdom of Morocco establishing a Dispute Settlement Mechanism was initialled on 9 December 2009 and signed on 13 December 2010.

It is now necessary to conclude the Agreement on behalf of the European Union.

CONTENT: with this Decision, the Agreement between the European Union and the Kingdom of Morocco establishing a Dispute Settlement Mechanism is hereby approved on behalf of the Union.

The Agreement follows the model of the chapter on dispute settlement, which is included in the current negotiations of free trade agreements, and is based on the Memorandum of Understanding of the WTO, adapted to a bilateral context.

The scope of the dispute settlement mechanism includes Title II of the Association Agreement between the EU and Morocco, with the usual exception of the article on anti-dumping measures. After the entry into force of the Agreement on the liberalisation measures on agricultural products, signed on 14 December 2009, disputes will be governed by this Agreement.

The Agreement provides for the following:

opportunities to settle disputes before establishing an arbitration panel, through consultations and mediation; streamlined and effective procedures on the composition of the arbitration panel and compliance proceedings with clear time-limits; rules on openness and transparency, with provisions on open hearings, amicus curiae briefs, and the publication of the panel report; provisions on relations with the WTO Dispute Settlement Understanding.

ENTRY INTO FORCE: 13 May 2011. The date of entry into force of the Agreement will be published in the Official Journal of the European Union by the General Secretariat of the Council.

Decision 2011/392
OJ L 176 05.07.2011, p. 0001

Results of vote in Parliament

The European Parliament adopted a legislative resolution on the draft Council decision on the conclusion of an Agreement between the European Union and the Kingdom of Morocco establishing a Dispute Settlement Mechanism.

Parliament gives its consent to the conclusion of the Agreement.

T7-0132/2011

A7-0066/2011

A7-0066/2011

The Committee on International Trade adopted the report drafted by George Sabin CUTAŞ (S&D, RO) in which it recommends the European Parliament to give its consent to the conclusion of an Agreement between the European Union and Morocco establishing a Dispute Settlement Mechanism.

PE452.789

PURPOSE: to conclude an Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism.

PROPOSED ACT: Council Decision.

BACKGROUND: on 24 February 2006, the Council authorised the Commission to open negotiations with partners in the Mediterranean region in order to establish a dispute settlement mechanism related to trade provisions. These negotiations have been concluded and an Agreement between the European Union and the Kingdom of Morocco establishing a Dispute Settlement Mechanism was initialled on 9 December 2009.

It is now necessary to conclude the Agreement on behalf of the Union.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASE: the first sub-paragraph of Article 207(4), in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: with this draft decision, the Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism is hereby approved on behalf of the Union.

The text of the Agreement is attached to this Decision (see Council Doc. 13973/10 ).

For further details on the content of this Agreement please refer to the previous initial legislative document dated 22/06/2010.

BUDGETARY IMPLICATION: the proposal has no implications for the Union’s budget.

13754/2010

The document presents the definitive text of the Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism.

To recall, Parties negotiated an Agreement , the objective of which is to avoid and settle any trade dispute between the Parties with a view to arrive at, where possible, a mutually agreed solution.

Scope : the provisions of this Agreement apply with respect to any dispute concerning an alleged violation of the provisions of Title II of the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, of the one part, and the Kingdom of Morocco, of the other part or of the Agreement in the form of an Exchange of Letters between the European Union and the Kingdom of Morocco concerning reciprocal liberalisation measures on agricultural products and processed agricultural products.

Main provisions : the Agreement provides for the following:

· opportunities to settle disputes before establishing an arbitration panel, through consultations and mediation;

· streamlined and effective procedures on the composition of the arbitration panel and compliance proceedings with clear time-limits;

· rules on openness and transparency, with provisions on open hearings, amicus curiae briefs, and the publication of the panel report;

· provisions on relations with the WTO Dispute Settlement Understanding.

The procedures of this Agreement shall apply if, 60 days after a dispute has been referred to the Association Council pursuant to Article 86 of the Association Agreement, the Association Council has failed to settle the dispute.

For further information on this Agreement, please refer to the summary of the previous initial legislative document dated 22/06/2010.

13973/2010

PURPOSE: to conclude an Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism.

PROPOSED ACT: Council Decision.

BACKGROUND: on 24 February 2006, the Council authorised the Commission to open negotiations with partners in the Mediterranean region in order to establish a dispute settlement mechanism related to trade provisions. These negotiations have been concluded and an Agreement between the European Union and the Kingdom of Morocco establishing a Dispute Settlement Mechanism was initialled on 9 December 2009.

It is now necessary to conclude the Agreement on behalf of the Union.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASE: the first sub-paragraph of Article 207(4), in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: with this draft decision, the Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism is hereby approved on behalf of the Union.

The text of the Agreement is attached to this Decision (see Council Doc. 13973/10 ).

For further details on the content of this Agreement please refer to the previous initial legislative document dated 22/06/2010.

BUDGETARY IMPLICATION: the proposal has no implications for the Union’s budget.

13754/2010

PURPOSE: to conclude an Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism.

PROPOSED ACT: Council Decision.

BACKGROUND: the Euro-Mediterranean Agreements contain provisions liberalising trade in goods, but the dispute settlement rules applicable to disputes concerning these provisions rely mainly on a diplomatic approach and can be easily blocked by the party complained against. In the context of an upgrading of Euro-Mediterranean trade relations, it was opportune to create a dispute settlement mechanism applicable to trade disputes based on streamlined and effective procedures within firm time limits, and modelled on the dispute settlement mechanisms of the most recent agreements concluded by the EU and on the WTO Dispute Settlement Understanding. Such a mechanism will increase the security and predictability of bilateral trade relations. To this end in the framework of the European Neighbourhood Policy EU-Morocco Action Plan the parties agreed to elaborate rules of procedure for dispute settlement.

The Commission has negotiated in regional and bilateral mode with several Mediterranean partners. Negotiations with Morocco resulted in a draft Agreement that was initialled at the Euro-Mediterranean Trade Ministerial Conference in Brussels on 9 December 2009.

LEGAL BASE: Article 207(4), first sub-paragraph, in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union.

IMPACT ASSESSMENT: no impact assessment was carried out.

CONTENT: this Agreement follows the model of the dispute settlement chapter of current Free Trade Agreement negotiations, and is based on the WTO Dispute Settlement Understanding, adapted to a bilateral context. The scope of the dispute settlement mechanism includes Title II of the EU-Morocco Association Agreement, with the usual exception of the article on anti-dumping. After the entry into force of the Agreement on the liberalisation of agricultural products, initialled on 14 December 2009, disputes arising from that agreement would also be subject to this Agreement.

The text provides for the following:

opportunities to settle disputes before establishing an arbitration panel, through consultations and mediation; streamlined and effective procedures on the composition of the arbitration panel and compliance proceedings with clear time-limits; provisions on temporary remedies in case of non-compliance; rules on openness and transparency, with provisions on open hearings, amicus curiae briefs, and the publication of the panel report; provisions on relations with the WTO Dispute Settlement Understanding.

BUDGETARY IMPLICATIONS: this proposal has no implication for the EU’s budget.

COM(2010)0326
EUR-Lex

PURPOSE: to conclude an Agreement between the EU and Morocco establishing a Dispute Settlement Mechanism.

PROPOSED ACT: Council Decision.

BACKGROUND: the Euro-Mediterranean Agreements contain provisions liberalising trade in goods, but the dispute settlement rules applicable to disputes concerning these provisions rely mainly on a diplomatic approach and can be easily blocked by the party complained against. In the context of an upgrading of Euro-Mediterranean trade relations, it was opportune to create a dispute settlement mechanism applicable to trade disputes based on streamlined and effective procedures within firm time limits, and modelled on the dispute settlement mechanisms of the most recent agreements concluded by the EU and on the WTO Dispute Settlement Understanding. Such a mechanism will increase the security and predictability of bilateral trade relations. To this end in the framework of the European Neighbourhood Policy EU-Morocco Action Plan the parties agreed to elaborate rules of procedure for dispute settlement.

The Commission has negotiated in regional and bilateral mode with several Mediterranean partners. Negotiations with Morocco resulted in a draft Agreement that was initialled at the Euro-Mediterranean Trade Ministerial Conference in Brussels on 9 December 2009.

LEGAL BASE: Article 207(4), first sub-paragraph, in conjunction with Article 218(6)(a)(v) of the Treaty on the Functioning of the European Union.

IMPACT ASSESSMENT: no impact assessment was carried out.

CONTENT: this Agreement follows the model of the dispute settlement chapter of current Free Trade Agreement negotiations, and is based on the WTO Dispute Settlement Understanding, adapted to a bilateral context. The scope of the dispute settlement mechanism includes Title II of the EU-Morocco Association Agreement, with the usual exception of the article on anti-dumping. After the entry into force of the Agreement on the liberalisation of agricultural products, initialled on 14 December 2009, disputes arising from that agreement would also be subject to this Agreement.

The text provides for the following:

opportunities to settle disputes before establishing an arbitration panel, through consultations and mediation; streamlined and effective procedures on the composition of the arbitration panel and compliance proceedings with clear time-limits; provisions on temporary remedies in case of non-compliance; rules on openness and transparency, with provisions on open hearings, amicus curiae briefs, and the publication of the panel report; provisions on relations with the WTO Dispute Settlement Understanding.

BUDGETARY IMPLICATIONS: this proposal has no implication for the EU’s budget.

COM(2010)0326
EUR-Lex