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EU - ANDEAN COMMUNITY (CAN) TRADE AGREEMENT

EU - ANDEAN COMMUNITY (CAN) TRADE AGREEMENT. Camilo Tovar ALOP. CAN Political Context. Colombia - Perú. Ecuador - Bolivia. Evo Morales 2006 Correa 2007 Constitutional processes rupture with neoliberal Strengthen State – regulate market: nationalisation, regional, complementarity

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EU - ANDEAN COMMUNITY (CAN) TRADE AGREEMENT

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  1. EU - ANDEAN COMMUNITY (CAN) TRADE AGREEMENT Camilo Tovar ALOP

  2. CAN Political Context Colombia - Perú Ecuador - Bolivia Evo Morales 2006 Correa 2007 Constitutional processes rupture with neoliberal Strengthen State – regulate market: nationalisation, regional, complementarity Space and role of social movement • Uribe 2002 • Garcia 2006 • Affirm neoliberal development model • Shrink State – market driven development: de-regulation, privatisation, FTA, competitivity • Social conflict: authoritarism (Bagua , Minga, etc...)

  3. Differentiation • FTAA fails  US FTA with CAN: • Colombia and Perú signed 2006 • Ecuador and Bolvia pull out (election flag) • Venezuela pulls out of CAN (2006 – Crisis) • Tense relations: Colombia vs. Ecuador Perú vs. Bolivia Different views on development Different strategies of international insertion

  4. EU Political Context • 2004 Enlargement + EU Constitution  Lisbon Treaty : LA less priority • Barroso COM 2004  Lisbon Agenda Growth and jobs: internal + external market • Global Europe 2006 (Mandelson) Competitiveness + business driven New generation of RTAs/FTAs Raw materials initiative 2008 (key priority)

  5. EU POLITICAL COMPASS 2008 Eastern block  fast free market approach, slow social rights Western block  expansion of neoliberal economics, erosion of some social policies

  6. Additional “pull factors” • Doha Development Round (WTO) • 2001  Talks collapse Cancun 2003 • 2005 Deadline missed (Hong Kong)  extend to end 2006: missed 2008 Geneva: collapse • EU loosing market share - emerging economies (China) + US FTA • EU regional approach to FTAs

  7. EU - ANDEAN COMMUNITY (CAN) TRADE AGREEMENT • 1st EU-CAN Coop Agreement 1983  1993 • 2003 Political Dialogue and Coop Agreement • 2004 EU-LAC Summit  EU: wait for FTA • EU evaluation of CAN economic integration • 2006: EU-LAC Summit - Crisis CAN (Venezuela) • June 2007: CAN Summit Tarija • Andean Differences  Decision 667 (framework) • July 2007: Agreed modalities for negotiation

  8. EU “marca la cancha” • EU format: 3 pillars + region to region • Trade: classic FTA format (WTO plus) • Objectives: Strength regional integration • Social cohesion  Sust. Development • Free trade • Asymmetries: “when possible” • SDT for CAN  mechanism: ≠ speed liberal. • CAN Consensus base for negotiation • Possibility of veto (block proposals)

  9. Regional Negotiations • Complex negotiation process for CAN • 1st intra-CAN negotiation  position to EU • Bolivia: innovative proposals • WG asymmetries and SDT for all agreement • No “across the board” national treatment • No further IPR  TRIPS • Development benchmarks • COL + PE: accept but not commit • EU: “accept” but dangerous precedent • Challenge: new architecture + technical

  10. . • Sept 2007 – April 2008: 3 rounds • Ecuador: low profile  Quito • Bolivia/Ecuador: ≠ FTA – regional integrat. • Node: position on biodiversity and IPR • CAN Summit Oct 2008  no solution • Peru/Colombia: bilateral FTA (not new) • 2009: EU propose Multiparty Trade Agree: • Only trade, ± bilateral  regional long term

  11. Multiparty Trade Agreement • Ecuador: yes.. but Agreement for Development • Bolivia: Out • Speedy negotiation: 2009 – 2010: 8 rounds • EU aggresive: US FTA Plus Plus • Col/Peru: accepting conditions • Ecuador complex position: • No clear space for alternatives • Correa mandate NO FTA • Banana issue: heavy weight

  12. . • July 2009 Ecuador pulls out: • EU comply with WTO rulings on Banana • Include Polit. Dialogue and Coop • EU-LAC Summit May 2010: • Conclude, ambitious FTA EU-Col/Perú • Defines scenario for Ecuador and Bolivia • Ahead: • ratification process Col/Perú • Ecuador??

  13. Conclusions • Regional integration further crisis • EU: satisfied  FTA as they wanted • Col/Perú: re-affirm dev. Model • Raw materials export-led model (extractive) • Open services, public procurement and IPR • Erosion of State policy space • Static, long term • Investment • Ecu/Bol: struggle for alternatives

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