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EU and China reach agreement in principle on investment

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The EU and China have today concluded in principle the negotiations for a Comprehensive Agreement on Investment (CAI).  This deal follows a call between Chinese President Xi Jinping and European Commission President von der Leyen, European Council President Charles Michel and German Chancellor Angela Merkel on behalf of the Presidency of the EU Council, as well as French President Emmanuel Macron. China has committed to a greater level of market access for EU investors than ever before, including some new important market openings. China is also making commitments to ensure fair treatment for EU companies so they can compete on a better level playing field in China, including in terms of disciplines for state owned enterprises, transparency of subsidies and rules against the forced transfer of technologies. For the first time, China has also agreed to ambitious provisions on sustainable development, including commitments on forced labour and the ratification of the relevant ILO fundamental Conventions.

The Agreement will create a better balance in the EU-China trade relationship. The EU has traditionally been much more open than China to foreign investment. This is true as regards foreign investment in general. China now commits to open up to the EU in a number of key sectors.

President of the European Commission, Ursula von der Leyen said: “Today‘s agreement is an important landmark in our relationship with China and for our values-based trade agenda. It will provide unprecedented access to the Chinese market for European investors, enabling our businesses to grow and create jobs. It will also commit China to ambitious principles on sustainability, transparency and non-discrimination. The agreement will rebalance our economic relationship with China”.

Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, said: “This deal will give European businesses a major boost in one of the world’s biggest and fastest growing markets, helping them to operate and compete in China. It also anchors our values-based trade agenda with one of our largest trading partners. We have secured binding commitments on the environment, climate change and combatting forced labour. We will engage closely with China to ensure that all commitments are honoured fully.”

The rules negotiated in this Agreement set a high benchmark in terms of transparency, level playing field, market access commitments and sustainable development. The EU’s work on planned autonomous measures in areas such as subsidies or due diligence will continue as a matter of priority.

Today’s conclusion in principle of the negotiations is a first step in the process; deliberations for the adoption and ratification of the agreement are yet to take place and will be conducted in full transparency.

During today’s call, the leaders also addressed climate change, the COVID-19 pandemic, Hong Kong and human rights.  They took stock of the overall EU-China agenda, recording important progress on a number of key issues, while serving to underline the EU’s continued expectations and concerns in other areas. The EU also raised the negotiations for the Strategic Agenda for Cooperation 2025, and proposed that negotiators from both sides should resume their work now that significant progress has been made in the CAI negotiations. The EU side recalled its invitation for President Xi to join an EU-China Leaders’ meeting with the participation of the Heads of State and Government of the EU member states to be held in Brussels in 2021.

EU- China Comprehensive Agreement on Investment

Ambitious opening and level playing field for European investments

In terms of market access for EU businesses, China has made significant commitments on manufacturing, the most important sector for EU investment in China. Manufacturing makes up more than half of total EU investment – including 28% for the automotive sector and 22% for basic materials. This includes production of electric cars, chemicals, telecoms equipment and health equipment, among others.

China is also making commitments for EU investments in various services sectors, such as cloud services, financial services, private healthcare, environmental services, international maritime transport and air transport-related services.

In the sectors covered, European business will gain certainty and predictability for their operations as China will no longer be able to prohibit access or introduce new discriminatory practices.

The CAI will help to level the playing field for EU investors by laying down very clear rules on Chinese state-owned enterprises, transparency of subsidies, and prohibiting forced technology transfers and other distortive practices.

The agreement also includes guarantees that will make it easier for European companies to obtain authorisations and complete administrative procedures. It also secures access to China’s standard setting bodies for European companies.

Embedding sustainability in our investment relationship

The CAI will bind the parties into a values-based investment relationship underpinned by sustainable development principles. This is the first time that China agrees to such ambitious provisions with a trade partner. Amongst others, China is undertaking commitments in the areas of labour and environment such as not to lower the standards of protection in order to attract investment, to respect its international obligations, as well as to promote responsible business conduct by its companies. China has also agreed to effectively implement the Paris Agreement on climate change as well as to effectively implement the International Labour Organisation Conventions (ILO) it has ratified. China has also agreed to make continued and sustained efforts to ratify the ILO fundamental Conventions on forced labour.

Sustainable development matters will be subject to a solid enforcement mechanism by an independent panel of experts as in our other trade agreements. This means a transparent resolution of disagreements with the involvement of civil society.

Enforcement

The implementation of the commitments in the Agreement will be monitored at the level of Executive Vice President on the side of the EU and Vice Premier on China’s side. The State-to-State dispute resolution mechanism underpinning the agreement meets the highest standards found in existing EU trade agreements. The Agreement also creates a specific working group to follow the implementation of sustainable development related matters, including on labour and climate.

Continuation of negotiations on investment protection

The package deal reached today includes a commitment by both sides to try to complete negotiations on investment protection and investment dispute settlement within 2 years of the signature of the CAI. The common objective is to work towards modernised protection standards and a dispute settlement that takes into account the work undertaken in the context of UNCITRAL on a Multilateral Investment Court. The EU’s objective remains to modernise and replace the existing Member States’ Bilateral Investment Treaties with China.

Next steps

Both sides are now working towards finalising the text of the agreement, which will need to be legally reviewed and translated before it can be submitted for approval by the EU Council and the European Parliament.

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EU Politics

Presidents of Parliament to gather for Athens Summit

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Presidents of Parliament from the 47 Council of Europe member states, as well as many neighbouring and observer countries and other partner parliamentary assemblies, will meet on 21 and 22 October 2021 in Athens, on the occasion of a conference organised by the Hellenic Parliament and the Parliamentary Assembly of the Council of Europe (PACE).

The Conference will be opened by the President of the Hellenic Parliament Constantine An. Tassoulas, PACE President Rik Daems, and the Secretary General of the Council of Europe Marija Pejčinović Burić.

Some 60 Presidents and Speakers, together with 300 other delegates, are expected at the biennial summit to discuss three major topical issues:

  • Democracies facing the Covid-19 public health crisis: sharing experiences
    Key-note speeches by the President of the Romanian Senate Anca Dana Dragu; the Speaker of the Russian Federation Council Valentina Matviyenko; and the President of Austria’s National Council Wolfgang Sobotka.
  • #EnvironmentRightNow’: national parliaments and the right to a healthy and sustainable environment
    Key-note speeches by the Speaker of the Parliament of Georgia Kakha Kuchava; the Speaker of the Parliament of Finland Anu Vehviläinen, and a member of the Council of Europe Advisory Council on Youth, Spyros Papadatos.
  • The common future of all European citizens
    Key-note speeches by the President of the Belgian Senate Stephanie D’Hose; the President of the Cypriot House of Representatives, Anita Demetriou; and the President of the Slovenian National Assembly, Igor Zorčič.

Secretaries General of the participating parliaments and assemblies are also due to meet on the margin of the conference.

The first conference was held in 1975. It takes place every two years, hosted alternately in Strasbourg or in the capital of a Council of Europe member state. At the invitation of the Hellenic Parliament, it is held this year in Athens, when the country celebrates the bicentennial of its independence.

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EU Politics

Lorenzo Natali Media prize 2021: Winners announced

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The European Commission announced the three winners of the 2021 ‘Lorenzo Natali’ Media prize: Pari Saikia, for her work on the plight of the Rohingya, Maria Altimira, for her work on the labour exploitation of migrants and Srishti Jaswal for bringing to light the hunger situation in India. For nearly three decades, the prize has recognised courageous journalism and focused on compelling, compassionate reporting that brings to light stories that matter on the global challenges impacting society.

Commissioner for International Partnerships, Jutta Urpilainen, presented the prizes to the winners at today’s award ceremony: “This award of this year’s Lorenzo Natali Media prize, recognizes three exceptional journalists, whose work exemplifies the courage, integrity and dedication to global equity. As development journalists you help bring about change – whether it is tackling inequalities, protecting universal human rights, or responding to the existential threat of climate change.”

The 2021 prizewinners, selected by a grand jury from among more than 1,100 applications from across the world, are:

Grand prize

Pari Saikia of Vice Media India, for:

“Rohingya Brides Thought They Were Fleeing Violence. Then They Met Their Grooms”

Pari Saikia’s story on the exploitation of Rohingya refugee women exposes the drivers and the methods used in trafficking women in the region.

Europe prize

Maria Altimira writing in Diario Ara, for:

“Abusos en los campos de fresas”

In this piece, Maria Altimira shines a light on the labour and sexual abuse suffered by farm workers, and attempts to hold oversight agencies accountable for abuses happening on their watch.

Best Emerging Journalist prize

Srishti Jaswal, writing in Stories Asia, for:

“The Global Hunger Index Reveals India’s Ignored Hunger Crisis”

Srishti Jaswal’s investigation reveals India’s hidden hunger crisis and the under-reporting of deaths due to starvation.

The winners were chosen by a Grand Jury of experts in the fields of journalism and development:

  • Diana Moukalled (Daraj.com)
  • Sulemana Braimah (Media Foundation for West Africa)
  • Jana Ciglerová (Denik N)
  • Zuliana Lainez (International Federation of Journalists)
  • Steve Sapienza (Pulitzer Center).

All entries underwent an initial pre-selection phase conducted by four journalism schools: Vesalius College in Brussels, Universidade Católica Portuguesa in Lisbon, Universidad de Navarra in Pamplona and Université Saint Joseph in Beirut.

Background

Established in 1992, the European Commission’s Lorenzo Natali Media Prize is awarded in memory of Lorenzo Natali, a former Commissioner for Development and Cooperation. He was a staunch defender of freedom of expression, democracy, human rights and development.

The prize recognises high-quality, courageous reporting on compelling issues such as climate change, women´s rights, inequality, healthcare, democracy and human rights.

The prize’s three categories in 2021 were:

  • Grand prize: for reporting published by a media outlet based in one of the European Union’s partner countries.
  • Europe prize: for reporting published by a media outlet based in the European Union.
  • Best Emerging Journalist prize: for reporting by journalists under the age of 30, published in a media outlet based in the European Union or in one of its partner countries.

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EU Politics

70% of the EU adult population fully vaccinated

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Today, the EU has reached a crucial milestone with 70% of the adult population now fully vaccinated. In total, over 256 million adults in the EU have now received a full vaccine course. Seven weeks ago already, the Commission’s delivery target was met, ahead of time: to provide Member States, by the end of July, with enough vaccine doses to fully vaccinate 70% of the adult EU population.

The President of the European Commission, Ursula von der Leyen, said:  “The full vaccination of 70% of adults in the EU already in August is a great achievement. The EU’s strategy of moving forward together is paying off and putting Europe at the vanguard of the global fight against COVID-19.  But the pandemic is not over. We need more. I call on everyone who can to get vaccinated. And we need to help the rest of the world vaccinate, too. Europe will continue to support its partners in this effort, in particular the low and middle income countries.”

Stella Kyriakides, Commissioner for Health and Food Safety, said:  “I am very pleased that as of today we have reached our goal to vaccinate 70% of EU adults before the end of the summer. This is a collective achievement of the EU and its Member States that shows what is possible when we work together with solidarity and in coordination. Our efforts to further increase vaccinations across the EU will continue unabated. We will continue to support in particular those Member States that are continuing to face challenges. We need to close the immunity gap and the door for new variants and to do so, vaccinations must win the race over variants.”

Global cooperation and solidarity

The rapid, full vaccination of all targeted populations – in Europe and globally – is key to controlling the impact of the pandemic. The EU has been leading the multilateral response. The EU has exported about half of the vaccines produced in Europe to other countries in the world, as much as it has delivered for its citizens.  Team Europe has contributed close to €3 billion for the COVAX Facility to help secure at least 1.8 billion doses for 92 low and lower middle-income countries. Currently, over 200 million doses have been delivered by COVAX to 138 countries.

In addition, Team Europe aims to share at least 200 million more doses of vaccines secured under the EU’s advance purchase agreements to low and middle-income countries until the end of 2021, in particular through COVAX, as part of the EU sharing efforts

Preparing for new variants

Given the threat of new variants, it is important to continue ensuring the availability of sufficient vaccines, including adapted vaccines, also in the coming years. That is why the Commission signed a new contract with BioNTech-Pfizer on 20 May, which foresees the delivery of 1.8 billion doses of vaccines between the end of the year and 2023. For the same purpose, the Commission has also exercised the option of 150 million doses of the second Moderna contract. Member States have the possibility to resell or donate doses to countries in need outside the EU or through the COVAX Facility, contributing to a global and fair access to vaccines across the world. Other contracts may follow. This is the EU’s common insurance policy against any future waves of COVID-19.

Background

A safe and effective vaccine is our best chance to beat coronavirus and return to our normal lives. The European Commission has been working tirelessly to secure doses of potential vaccines that can be shared with all.

The European Commission has secured up to 4.6 billion doses of COVID-19 vaccines so far and negotiations are underway for additional doses. The Commission is also working with industry to step up vaccine manufacturing capacity.

At the same time, the Commission has started work to tackle new variants, aiming to rapidly develop and produce effective vaccines against these variants on a large scale. The HERA Incubator helps in responding to this threat.

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