Explanatory Memorandum to COM(2024)472 - - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2024)472 - . |
|---|---|
| source | COM(2024)472 |
| date | 18-10-2024 |
1. CONTEXT OF THE PROPOSAL
- Reasons for and objectives of the proposal
The attached proposal constitutes the legal instrument for authorising the conclusion of the Enhanced Partnership and Cooperation Agreement between the European Union and the Republic of Uzbekistan (hereinafter referred to as the EPCA or the Agreement).
Relations between the European Union (EU) and the Republic of Uzbekistan (Uzbekistan) are currently based on the Partnership and Cooperation Agreement (hereinafter referred to as the PCA) signed in Brussels on 21 June 1996, which entered into force on 1 July 1999.
On 9 October 2017, the Council adopted a Decision authorising the opening of negotiations with Uzbekistan for an Enhanced Partnership and Cooperation Agreement. The negotiation of the Agreement commenced in November 2018. The European Union and the Republic of Uzbekistan finalised their negotiation of the EPCA in June 2022. On 6 July 2022, the text of the EPCA was initialled by the chief negotiators.
The Agreement constitutes an important step towards enhancing the EU’s political and economic engagement with Central Asia. It will provide the basis for more effective bilateral engagement between the EU and Uzbekistan by strengthening political dialogue and enhancing cooperation across a broad range of areas.
The EPCA covers the EU’s standard clauses on human rights, the International Criminal Court (ICC), Weapons of Mass Destructions (WMD), Small Arms and Light Weapons (SALW), and counter-terrorism. It also encompasses cooperation in areas such as health, environment, climate change, energy, tax, education and culture, labour, employment and social affairs, science and technology, and transport. The Agreement further addresses legal cooperation, the rule of law, money laundering and terrorist financing, organised crime and corruption. The trade part of the Agreement is expected to ensure a better regulatory environment for economic operators and will thus bring substantial economic benefits for EU businesses. The EPCA does not constitute an initiative within the remit of the Regulatory Fitness Programme (REFIT).
The Agreement sets up an institutional framework composed of a Cooperation Council, Cooperation Committee, and Parliamentary Cooperation Committee (see Title VII Institutional, general and final provisions), an Intellectual Property Rights Sub-Committee, and allows for the establishment of sub-committees and other bodies to assist the Cooperation Council. It equally establishes a fulfilment of obligations mechanism to address failure by one of the Parties to fulfil obligations assumed under the Agreement.
As of its entry into force, the Agreement supersedes the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Uzbekistan, of the other part, signed on 21 June 1996.
- Consistency with existing policy provisions in the policy area
The EPCA builds on the ambitions and needs of Uzbekistan and the EU respectively to take forward their bilateral relationship, in the spirit of the Council conclusions on the EU’s new Strategy on Central Asia of 17 June 2019. The Agreement will contribute to the implementation of the EU’s new Strategy on Central Asia adopted on 15 May 2019.
The EPCA modernises the 1999 PCA, extending its scope into new areas of cooperation and significantly upgrading the regulatory framework for our trade and economic relations in line with the World Trade Organisation (WTO) rules and regional economic agreements.
The Agreement, once implemented, will be usefully complemented by the Generalised System of Preferences (GSP+) mechanism, from which the Republic of Uzbekistan has benefited since 2021. This scheme offers additional tariff preferences in exchange for compliance with 27 core human rights, governance, environment and labour conventions.
- Consistency with other Union policies
The EPCA fully respects the Treaties and preserves the integrity and the autonomy of the Union’s legal order. It promotes the values, objectives, and interests of the Union, and ensures the consistency, effectiveness and continuity of its policies and actions.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
- Legal basis
- Substantive legal basis
According to case law, if examination of an EU measure reveals that it pursues two purposes or that it comprises two components and if one of these is identifiable as the main or predominant purpose or component, whereas the other is merely incidental, the measure must be founded on a single legal basis, namely that required by the main or predominant purpose or component. Exceptionally, if it is established, on the other hand, that the measure simultaneously pursues a number of objectives, or has several components, which are inextricably linked without one being incidental to the other, so that various provisions of the Treaty are applicable, the measure must be founded on the various corresponding legal bases (see, to that effect, judgments of 10 January 2006, Commission v Parliament and Council, C‑178/03, EU:C:2006:4, paragraphs 42 and 43; of 11 June 2014, Commission v Council, C‑377/12, EU:C:2014:1903, paragraph 34; of 14 June 2016, Parliament v Council, C‑263/14, EU:C:2016:435, paragraph 44; and of 4 September 2018, Commission v Council (Kazakhstan), C-244/17, ECLI:EU:C:2018:662, paragraph 40).
In this particular case, the Agreement pursues two main objectives and has two main components which fall within the area of development cooperation and common commercial policy. The legal basis of the proposed decision should therefore be Articles 207 and 2091 of the Treaty on the Functioning of the European Union (TFEU).
It is noted that the Agreement does not include areas falling within the competence of the Member States, and therefore does not require the EU Member States to become a Party to this Agreement.
- Procedural legal basis
Article 218(6)(a) TFEU provides for the adoption of a decision concluding an agreement after obtaining consent from the European Parliament.
Article 218(8) TFEU provides that the Council is to act by qualified majority except for the circumstances listed in the second subparagraph of Article 218(8) TFEU where the Council is to act unanimously. Given the fact that the two predominant components of the Agreement are trade policy and development cooperation, the voting rule for this particular case is therefore qualified majority.
- Subsidiarity (for non-exclusive competence)
The Agreement covers matters of EU exclusive competence, such as the common commercial policy, and the EU part of a parallel competence, such as development policy. It strengthens political dialogue and cooperation between the EU and the Republic of Uzbekistan. Therefore, action at EU level is required.
- Proportionality
The Agreement does not go beyond what is necessary to achieve the policy objectives of strengthening relations between the EU and the Republic of Uzbekistan, with a view to furthering democratic reforms, the rule of law and sustainable economic development as a means to increase the stability and security of the Republic of Uzbekistan. The Agreement will not require the Union to amend its rules, regulations or standards in any regulated area.
3. RESULTS OF STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
- Consultations
The Council has been regularly informed and consulted in the relevant Council Working Party, notably in the the Working Party on Eastern Europe and Central Asia (COEST) and the Trade Policy Committee (TPC), at all stages of the negotiations.
The European Parliament has been kept regularly and promptly informed throughout the negotiations.
The High Representative and the Commission consider that the objectives set by the Council in its negotiating directives have been attained, and that the draft Agreement can be submitted for conclusion.
- Impact assessment
An impact assessment has not been carried out, as the Agreement mostly updates and enhances the existing PCA, and will therefore not introduce substantial new areas of cooperation which would have a considerable economic, social or environmental impact. The expected impact is predominantly political - the EU aims at reinforcing a partner country's political course and at strengthening the political capital of the EU. There can be positive social consequences in Uzbekistan related mainly to the envisaged provisions on the rule of law, human rights and security. An increase in trade is also expected as a result of an improved business environment, but does not present any risk to specific industry sectors on either side, as Uzbekistan and the EU are not competing in the same sectors. The preparation of an impact assessment is not deemed likely to deliver results commensurate with the resources deployed.