December 7, 2020 by eklose
According to the WTO, it can be so important to promise that there will be no removal of a trade barrier as to reduce one, as if it were predictive for businesses. This will encourage investment, create jobs and enable consumers to take full advantage of the benefits of competition – choice and lower prices. The EU has trade agreements with these countries/regions, but both sides are now negotiating an update. In accordance with the ECJ guidelines, the EU is now designing free trade agreements to remain within the exclusive competence of the EU. Therefore, areas such as investor-state dispute settlement and portfolio investments must be negotiated in the case of separate agreements. This clear division of the domains into different agreements makes it possible for European legislators to ratify and enforce free trade agreements quickly and reliably. However, such a separation is not possible if trade agreements are an integral part of political association agreements (for example. B with Ukraine, Mexico, Mercosur, etc.). These contracts remain mixed, if only because of the foreign and security policy components (the EU negotiations with Mercosur are based on a 20-year term and do not involve the settlement of investor-state disputes). Trade agreements are generally very complex because they are legal texts covering a wide range of activities, from agriculture to intellectual property.
But they share a number of fundamental principles. The European Union negotiates free trade agreements on behalf of all its member states, as EU member states have granted “exclusive jurisdiction” to conclude trade agreements. Nevertheless, the governments of the Member States control every step of the process (through the Council of the European Union, whose members are the national ministers of each national government). Altmaier said: “The EU-Japan Economic Partnership Agreement is an important signal for free and fair trade.” Although the WTO is generally referred to as a “free trade institution,” it sometimes allows tariffs and, in limited circumstances, other forms of protection. In practical terms, it promotes a system of rules for open and fair competition. The increasing use of protectionist measures by national heads of state and government would have encouraged the resumption of talks in 2016.  The EU can hope that the agreement is a major break in this global revival of protectionism.  European Commission President Jean-Claude Juncker called the agreement the approval of “rules-based trade” at a time of increasing protectionism.  Mercosur could hope to use the agreement as a model for future business in the future.  Mercosur`s presidents have already stated that they want to conclude trade agreements with Canada and EFTA.  Argentine President Mauricio Macri said the agreement with the EU was “not a point of arrival, but a starting point”.  Singapore: The EU and Singapore signed a free trade agreement and an investment protection agreement at the ASEM summit on 18-19 October 2018.
The European Parliament approved both agreements in February 2019. Germany is very pleased with these agreements, as Singapore is one of Germany`s main trading partners in the ASEAN region, despite its small size.