WRITTEN QUESTION E-2377/02

by Glyn Ford (PSE) to the Commission

(2 August 2002)

Subject: GATS

The complexity of the current GATS negotiations highlights the requirements of many EU citizens for effective and transparent governance within the European Union and its institutions. In the light of these concerns, could the European Commission clarify the EU decision-making process whereby the General Agreement on Trade in Services is negotiated and, more specifically, confirm the role of the European Parliament and the Committee of the Regions in this process?

Answer given by Mr Lamy on behalf of the Commission

(17 September 2002)

The Community has exclusive competence for the common commercial policy (Article 133, paragraph 1 of the EC Treaty). This provision has its origins in the requirement for the Community to take responsibility for the external consequences of the internal policy to establish a customs union. Article 133, paragraph 1 provides for exclusive Community competence essentially for trade in goods, cross-border services not implying movement of persons and some very specific aspects of intellectual property rights. However, there is provision for its scope to be extended to include the full range of trade in services, and intellectual property, should the Council decide unanimously to do so (this widening of exclusive powers is further extended under the Nice Treaty).

In the case of the international agreement likely to result from the Doha Development Agenda, the Council adopted conclusions in 1999 setting out the objectives of the negotiations. These constitute the basis for the negotiations which are conducted by the Commission in consultation with a Committee designated by the Council under the EC Treaty (the Article 133 Committee). The Council is responsible for concluding agreements. Responsibility for the day-to-day management of trade policy lies with the Commission, which keeps in close contact with the Council through the Article 133 Committee, which meets on a regular basis.

Although the Parliament has no formal role in the formulation of trade policy under the existing treaties, it is in accordance with the Framework Agreement of 5 July 2000 regularly briefed on trade policy issues and consulted on key questions. Certain trade matters may also be related to agreements requiring the assent of the Parliament under Article 300, paragraph 3, subparagraph 2.

The Committee of the Regions is not involved in the decision making process with regard to the common trade policy and has so far not devoted any own initiative reports to trade policy. However, the Commission is ready to inform the Committee of the Regions about specific trade issues, in particular as the Doha Development Agenda moves ahead.