DAILY NEWS
Brussels, 22 December 2022
Banning harmful chemicals: new rules on Persistent Organic Pollutants (POPs) in waste to enter into force
On 29 December, the new Regulation on Persistent Organic Pollutants (POPs) will enter into force, providing a legally binding obligation to protect human health and the environment from some of the most harmful chemicals in waste. Although POPs are generally no longer used in new products, they are still found in waste resulting from disposal of some industrial and consumer products after the end of their service life.
The new Regulation introduces, for the first time, limits for some of these chemicals in waste and tightens them for others which were already regulated. Existing limits have been tightened for five substances and new limits have been agreed for four new substances that can be found for example in waterproof textiles and fire-fighting foams, in treated wood and others. Limiting the presence of these chemicals in waste will prevent them from re-entering the economy.
The new rules send a powerful message about the commitment of the EU to deal with POPs in waste, and to lead the way towards a toxic-free environment internationally. Most of the provisions in the Regulation will apply 6 months after its entry into force on 29 December.
By helping boost the supply of safe, toxic-free secondary raw materials, the Regulation also plays an important role in meeting the objectives of the Circular Economy Action Plan, the Zero Pollution Action Plan and the Chemicals Strategy for Sustainability.
For more information about the new rules, see the daily news on the political agreement.
(For more information: Adalbert Jahnz – Tel.: +32 2 295 31 56; Daniela Stoycheva – Tel.: +32 2 295 36 64)
Sustainable Finance: Commission provides additional guidance to companies on what and how to report about environmental performance under EU Taxonomy
The Commission adopted two further guidance documents, addressing frequently asked questions on the interpretation and implementation of the EU Taxonomy.
Some 4000 large companies will be reporting as of 1st January 2023 according to the EU Taxonomy framework, which establishes a common language for ‘sustainable economic activities' for financial market participants and investors. The Commission's focus is on helping market participants with the implementation of the EU Taxonomy. The two documents will help the companies concerned prepare their first mandatory reporting exercise, which will be used by financial market participants in their own disclosures concerning the sustainability aspects of financial products.
Both documents are currently adopted as draft Commission notices and will be applicable and effective against third parties following the official adoption, once all languages are available.
(For more information: Arianna Podesta – Tel.: +32 229 87024; Aikaterini Apostola – Tel.: +32 2 298 76 24)
Digital Services Act: Commission launches public consultation on methodology and procedures to calculate supervisory fee
Today, the Commission published a draft text for public feedback concerning the methodology and procedures to calculate the supervisory fee under the Digital Services Act (DSA). The feedback period will last one month and will help shape the final Commission Delegated Regulation.
The DSA entered into force on 16 November 2022. The obligations for service providers designated as very large online platforms or very large search engines will become applicable four months after their formal designation, based on user numbers to be published by 17 February 2023. The Commission expects the obligations to kick in from the autumn 2023.
To ensure the effective supervision and enforcement of the new rules, the Commission is empowered to levy a fee on providers under its supervision.
The draft Delegated Regulation, which is now available for public feedback, aims to provide legal certainty to the service providers concerned. It specifies the methodology and procedures to calculate and levy the supervisory fee, provides further details for the calculation of the overall estimated costs and for the determination of the individual fees, and further specifies the procedure for the overall limit.
All interested parties can submit their views on the draft on the Commission's Have Your Say Portal until 19 January 2023.
(For more information: Johannes Bahrke – Tel.: +32 2 295 86 15; Marietta Grammenou – Tel.: +32 2 298 35 83)
EU Digital COVID Certificate: Commission adopts third implementation report
Today, the European Commission has adopted the third report on the EU Digital COVID Certificate's impact and implementation across the EU. The report shows that since the launch of the system in 2021, Member States have issued over 2 billion EU Digital COVID Certificates. In addition to the 27 EU Member States, 49 countries and territories from across five continents have joined the system, making it a global standard. Commissioner for Justice, Didier Reynders, said: “The EU Digital COVID Certificate facilitated free movement when COVID-19 travel restrictions were still considered necessary, and, at the same time, it ensured a coordinated lifting of these restrictions once the situation improved.” Since August 2022, Member States have lifted all intra-EU travel restrictions, including the requirement to hold an EU Digital COVID Certificate. The report also contains the Commission's reflections as to the expiry of the EU Digital COVID Certificate Regulation and potential other uses of the underlying technology. For reasons of epidemiological vigilance, the Commission considers that it is prudent to maintain the system during the 2022-23 winter period. The Commission will continue to follow the epidemiological situation closely and re-assess the situation by the end of March 2023.
(For more information: Christian Wigand - Tel.: +32 229 62253; Katarzyna Kolanko - Tel.: +32 229 63444)
EU wins in WTO appeal about Colombian anti-dumping duties on frozen fries
Arbitrators have in substance ruled in favour of the EU in the first WTO appeal dealt with under the ‘Multi-party interim appeal arbitration arrangement', known as the ‘MPIA'. The final and binding award confirms that the anti-dumping duties imposed by Colombia on frozen fries from Belgium, Germany and the Netherlands breach World Trade Organization (WTO) rules and improperly restrict access to the Colombian market.
The decision is a win for European producers whose exports to Colombia of well over €20 million were affected by the Colombian duties.
It sends a strong signal to any country thinking of restricting EU exports that anti-dumping investigations must fully comply with WTO rules, and highlights the systemic importance of the MPIA.
This case is also clear proof that WTO disputes can be resolved quickly and efficiently, with the final award issued well within the 90-day deadline.
Even though the WTO Appellate Body is currently hobbled by a long-running blockage on appointments, this appeal could be dealt with in accordance with WTO rules. That is because both Colombia and the EU are in the ‘MPIA'. This arrangement is open to all WTO Members while the Appellate Body remains blocked. Participating WTO Members agree appeal arbitration procedures in WTO disputes between them. This safeguards their WTO right to binding, two-tier and independent dispute settlement in any such disputes, in the continued absence of a functioning WTO Appellate Body. As such, it provides an important and interim back stop for the multilateral rules-based trading system, and avoids situations where this system is undermined by ‘appeals into the void', i.e. into the void left by the non-functioning Appellate Body.
Next steps
Colombia must now bring itself into compliance with the ruling, either immediately or within a time limit agreed with the EU or set by a WTO arbitrator. If Colombia does not comply, the EU can get WTO authorisation to adopt countermeasures.
Background
The EU brought this dispute (DS591) against Colombia in November 2019. A WTO panel ruled in the EU's favour in October 2022 and Colombia appealed. The final and binding award of the Appeal Arbitrators confirms that Colombia's anti-dumping investigation was flawed in several respects, including the calculation of the dumping margin and the injury analysis.
The appeal arbitrators under the MPIA were drawn at random from a 10-strong standing pool of individuals of recognised authority and demonstrated expertise. The award was issued in the three official languages of the WTO (English, French and Spanish) well within the 90-day time limit. The swift issuance of a high-quality appeal award confirms that appeal proceedings at the WTO can be managed in a focussed and efficient way while fully respecting parties' rights. This speed was helped by some of the innovations embedded in MPIA procedures, such as the requirement to address solely issues that are necessary to resolve the dispute and the possibility, availed of by the arbitrators here, to take or suggest measures streamlining the proceedings.
Apart from safeguarding the prospect of a binding resolution of disputes between MPIA participants, the MPIA signals commitment to a rules-based international trading system, with properly functioning WTO dispute resolution at its heart. Currently, 52 out of 164 WTO Members are covered by the MPIA (Australia; Benin; Brazil; Canada; China; Chile; Colombia; Costa Rica; Ecuador; the EU (whose 27 Member States are also WTO Members); Guatemala; Hong Kong; Iceland; Macao; Mexico; Montenegro; New Zealand; Nicaragua; Norway; Pakistan; Peru; Singapore; Switzerland; Ukraine; and Uruguay). Over a third of all disputes launched in the WTO since the MPIA was put in place in April 2020 have been between MPIA participants.
Exports of frozen fries from the three EU Member States concerned to Colombia amounted to €23 million in 2016. Colombia imposed duties in November 2018, targeting almost all (85% or €19.3 million) EU exports of frozen fries to Colombia.
For more information
Full case details and WTO documents
EU submissions and other documents of the case
Dispute Settlement in a Nutshell
Quote(s)
This is a major win for European exporters of fries, who were frozen out of the Colombian market. It is also significant in terms of upholding global trade rules. Colombia and the EU have shown the importance of resolving their WTO trade disputes through binding, independent and two-tier adjudication via the MPIA, which is a useful stopgap while the Appellate Body remains unable to function. But the EU’s priority is to find a lasting solution to the Appellate Body deadlock by 2024, working together with the WTO Membership on meaningful reform. The MPIA can serve as a pathfinder for such reform, and indeed through its rapid and streamlined work processes it is already showing some good early results.
Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade - 21/12/2022
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Anti-dumping duties
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