EC Proposes Changes to Decision-Making Procedures for Trade Regulations
On March 7, 2011, the European Commission proposed an update, called Omnibus I, to the way decisions on trade regulations are made in the European Union. The EC states that the change is part of its greater effort to reform EU decision-making procedures (the “comitology system) and would not amend the substance of its trade-related regulations.
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Commission Would Have More Responsibility
The EC explains in a background document on its reform of the comitology system that the EU’s new way of making decisions simplifies existing procedures and gives more flexibility and responsibility to the Commission. For example, in applying the new procedures to trade regulations, Member states would need a qualified majority (as opposed to a simple majority) to reject or adopt draft definitive anti-dumping and countervailing duties proposed by the EC. In addition, the European Council would no longer be involved in a special “appeals function” for such duties.
Would Affect Approach to Regulations on Trade Defense, GSP, Trade Barriers, Etc.
The proposal covers 24 trade-related regulations in total and includes:
- all trade defense instruments;
- the Regulation establishing the EU's Generalized System of Preferences;
- the Economic Partnership Agreement Market Access Regulation;
- the Trade Barriers Regulation;
- the Blocking statute responding to legislation with extra-territorial effect; and
- a number of regulations implementing safeguard clauses and managing the implementation of bilateral agreements.
Proposal Will Be Discussed, Second One on Delegated Powers to Follow
This proposal will now be discussed with the Council and the European Parliament and adopted according to the co-decision procedure. A second proposal, known as Omnibus II, will follow by summer 2011, which will review whether procedures currently based on the 1999 comitology decision should be converted into delegated powers1. This proposal will concern legislation dealing with textiles and steel as well as certain elements of the EU's Generalized System of Preferences and the Economic Partnership Agreement Market Access Regulation.
1Delegated powers are granted to the Commission to supplement or amend legislation. The delegation may be revoked by the Council or Parliament and the Council or Parliament may reject the exercise of the delegated power in specific circumstances.