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BackA few weeks ago the European Commission let it be known that there are plans to conclude a bilateral Investment Agreement with China. Both, the European Parliament and the Council now have to agree to the opening of negotiations. In respect of Taiwan, negotiations are planned on the trade relations with the EU.
Starting the discussion, the Conservative Daniel Caspary, the competent MEP for the Taiwan Dossier, requested to combine the negotiations on the Agreements of Taiwan and China in the European Parliament in order to deal with them simultaneously. With regard to Taiwan too, the main issue would be investment policy, hence one could negotiate with both countries at the same time. The Social Democrat MEP Bernhard Lange agreed with this approach. However, Lange demanded that existing trading problems with China had to be solved; for example intellectual property, which Chinese entrepreneurs would not respect in many cases.
Helmut Scholz, rapporteur for the EU-China Investment Agreement of the German Left pointed out that European and Chinese companies had already been cooperating for 20 years. These cooperations had been very successful and it was important to take mutual interests into account. Scholz voiced his firm opposition against an investor-state dispute settlement mechanism and demanded instead a state-state dispute settlement mechanism (more information on the effect of this trading rule can be found in the article under the following link EU-USA Free Trade Agreement).
However, the Green MEP Ska Keller showed little understanding for the two planned agreements. The only issue the Taiwan Agreement was concerned with, was protecting investors; however, practice had shown that these were quite capable of helping themselves. No mention was given to employees; hence they would not be protected. Regarding the Agreement with China, Keller cannot see why the Commission claimed now was the right time to start negotiations with China. According to her information, China was not prepared to enter into new obligations with the EU. Of course, the EU wanted access to the Chinese market. In contrast, China long had access to the EU market. Therefore, one had to ask the question, how - if at all - China would benefit from the Agreement. According to the Green MEP there were rumours that China was aiming at a Free Trade Agreement with the EU. Hence, Keller wanted to know from the Commission whether this was something as a precondition for China to make concessions in respect of the Investment Agreement. It had also been reported that some EU countries had requested for safeguards to be incorporated in the Investment Agreement to prevent Chinese companies from buying European enterprises only to strip these of EU technology. However, China had a monitoring and control mechanism to prevent corporate takeovers in China. How will the Commission address this issue, asked Keller. Finally, she demanded obligatory corporate social responsibility, as well as rules on social and environmental issues to be incorporated in the Agreement.
At the end of the discussion, the Commission replied to questions and contributions of MEPs. A meeting with Chinese representatives was scheduled for next week. The Commission would like the Chinese to commit to negotiations on market access and investments. The Commission official hopes that the negotiations with China could begin as early as the next summit; this would, however, depend on the feedback of China. With regard to investments, the Commission envisages a dispute settlement between two states, but also an option to settle disputes without involving the courts. A chapter on sustainable development is also planned.
The European Parliament is now working on a resolution for the Agreement with Taiwan and China. The respective discussions will be continued in autumn.
Helmut Scholz, rapporteur for the EU-China Investment Agreement of the German Left pointed out that European and Chinese companies had already been cooperating for 20 years. These cooperations had been very successful and it was important to take mutual interests into account. Scholz voiced his firm opposition against an investor-state dispute settlement mechanism and demanded instead a state-state dispute settlement mechanism (more information on the effect of this trading rule can be found in the article under the following link EU-USA Free Trade Agreement).
However, the Green MEP Ska Keller showed little understanding for the two planned agreements. The only issue the Taiwan Agreement was concerned with, was protecting investors; however, practice had shown that these were quite capable of helping themselves. No mention was given to employees; hence they would not be protected. Regarding the Agreement with China, Keller cannot see why the Commission claimed now was the right time to start negotiations with China. According to her information, China was not prepared to enter into new obligations with the EU. Of course, the EU wanted access to the Chinese market. In contrast, China long had access to the EU market. Therefore, one had to ask the question, how - if at all - China would benefit from the Agreement. According to the Green MEP there were rumours that China was aiming at a Free Trade Agreement with the EU. Hence, Keller wanted to know from the Commission whether this was something as a precondition for China to make concessions in respect of the Investment Agreement. It had also been reported that some EU countries had requested for safeguards to be incorporated in the Investment Agreement to prevent Chinese companies from buying European enterprises only to strip these of EU technology. However, China had a monitoring and control mechanism to prevent corporate takeovers in China. How will the Commission address this issue, asked Keller. Finally, she demanded obligatory corporate social responsibility, as well as rules on social and environmental issues to be incorporated in the Agreement.
At the end of the discussion, the Commission replied to questions and contributions of MEPs. A meeting with Chinese representatives was scheduled for next week. The Commission would like the Chinese to commit to negotiations on market access and investments. The Commission official hopes that the negotiations with China could begin as early as the next summit; this would, however, depend on the feedback of China. With regard to investments, the Commission envisages a dispute settlement between two states, but also an option to settle disputes without involving the courts. A chapter on sustainable development is also planned.
The European Parliament is now working on a resolution for the Agreement with Taiwan and China. The respective discussions will be continued in autumn.