Twelfth Report of Session 2013-14 - European Scrutiny Committee Contents


21   The EU and Indonesia

(34881)

8949/13

COM(13) 230

Draft Council Decisions on the conclusion of the Framework Agreement on Comprehensive Partnership and Cooperation between the European Community and its Member States and the Republic of Indonesia

Legal baseArticles 207, 209, and Article 218(6)(a) TFEU; QMV; consent
Document originated24 April 2013
Deposited in Parliament30 April 2013
DepartmentForeign and Commonwealth Office
Basis of considerationEMs of 13 May and 9 July 2013
Previous Committee ReportNone; but see (30948) 13689/09: HC 19-xxviii (2008-09), chapter 10 (21 October 2009)
Discussion in Council22 July 2013
Committee's assessmentLegally and politically important
Committee's decisionCleared; further information requested

Background

21.1  Since the end of the 1990s, the EU had by 2010 concluded ten similar partnership and cooperation agreements (PCAs) with: Russia and the New Independent States of Eastern Europe, the Southern Caucasus and Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Ukraine, Uzbekistan and Tajikistan. Their aim was to

  • provide a suitable framework for political dialogue;
  • to support the efforts made by the countries to strengthen their democracies and develop their economies;
  • accompany their transition to a market economy; and
  • encourage trade and investment.

21.2  The partnerships also aim to provide a basis for cooperation in the legislative, economic, social, financial, scientific, civil, technological and cultural fields.[71]

21.3  This basic concept has been applied increasingly around the globe with key EU partners.

The Partnership and Cooperation Agreement between the European Union and its Member States and the Republic of Indonesia

21.4  On 21 October 2009, we considered a draft Council Decision authorising the signing of the Framework Agreement on comprehensive Partnership and Cooperation between the European Community and its Member States and the Republic of Indonesia. The text of the agreement was attached to the Council Decision.

21.5   In her Explanatory Memorandum of 8 October 2009, the then Minister for Europe at the Foreign and Commonwealth Office (Baroness Kinnock of Holyhead) explained that: negotiations began in 2005; the UK and other EU Member States agreed the PCA text in June 2007; the Commission initialled the PCA in July 2007; and Indonesia initialled the PCA in July 2009 following the partial lifting of the EU flight ban on Indonesian airlines. She noted that this would be the first PCA with a South East Asian country, and that negotiations were at various stages with Thailand, Singapore, the Philippines, Malaysia and Brunei.

21.6  The then Minister also noted that the PCA would:

—  allow for further engagement between the EU and Indonesia in the areas of climate change and energy, science and technology, maritime and aviation transport;

—  address illegal migration, money laundering, illicit drugs, organised crime and corruption; and

—  ensure Indonesia's commitment to respect human rights.

21.7  The then Minister noted that the PCA was key to strengthening the EU's relationship with Indonesia: its conclusion would send a clear signal to Indonesia that the EU was keen to continue to work with it and recognise the progress Indonesia has made over the last decade in many areas including human rights and democratisation. The PCA contained a legally binding commitment by Indonesia on the respect of human rights (as well as obligations in the areas of counter terrorism and weapons of mass destruction). While challenges still remained, it was important to acknowledge "the vast progress the country has made in many areas, including its human rights record, over the past 10 years". Human rights concerns would continue to be raised with the Indonesian authorities: the best way to help Indonesia deal with this issue was through engagement and assistance, not isolation.

21.8  The Council Decision and PCA raised no questions. We nonetheless considered that it warranted a Report to the House because of its intrinsic importance.[72]

The further Council Decision

21.9  In his Explanatory Memoranda, the Minister for Europe (Mr David Lidington) notes that, when negotiations opened, this PCA was the first of its kind between the EU and a member of the Association of South East Asian Nations (ASEAN). Now, he notes, PCAs have subsequently been signed and concluded with the Philippines and Vietnam; the Mongolia PCA is signed but waiting to be concluded; and negotiations on similar agreements are currently at various stages of development with Thailand, Singapore, Malaysia and Brunei.

21.10  With regard to this PCA, the Minister says that: after adoption of the Council Decision on signature, the agreement was co-signed on 9 November 2009; in August 2011 the UK ratified the Agreement; most other Member States have also now ratified the PCA: and the Commission has therefore now proposed its conclusion.

21.11  The Minister also notes that an Explanatory Memorandum regarding the Council Decision on the conclusion of the PCA was first submitted for Parliamentary scrutiny on 13 May 2013, which the Committee has not yet cleared, and says of his second Explanatory Memorandum:

"This Explanatory Memorandum updates the Committee following negotiations, and specifically covers the fact that there are two new Council Decisions resulting from the decision to 'split' the Council Decision to conclude this PCA, to reflect the JHA content in the PCA."

21.12  The Minister then covers the following elements thus:

SUBSIDIARITY

"The PCA is a mixed agreement which will be concluded by both the EU and its Member States. The elements of the Agreement which fall within the exclusive competence of the EU can only be concluded by the EU.

LEGAL ISSUES

"Legal Basis: The Council Decision on non-JHA matters now has the following legal bases in the Treaty on the Functioning of the EU (TFEU): Articles 91 and 100 (transport), Article 191(4) (environment), Article 207 (common commercial policy) and Article 209 (development cooperation). The legal base for the Council Decision with JHA content is Article 79(3) TFEU (border checks, asylum and immigration). In line with the long-standing HMG view that the JHA opt-in is triggered by content, we consider that the 8 week period set aside for the Scrutiny Committees to opine on the opt-in decision commenced on 13 May 2013.

"Voting Procedures: Most Member States, including the UK, have now ratified the PCA, so, as this is a mixed agreement, the Commission has proposed conclusion of those parts which are EU competence by QMV.

"Impact on UK Law: As this is a mixed agreement, it will require specification as an EU Treaty in accordance with Article 1(3) of the European Communities Act, 1972. No additional implementation measures are envisaged.

"The Council proposal for conclusion of the Indonesia PCA is now, following negotiations in the EU Asia-Oceania Working Party (COASI) and a revised Decision, to split the Decision on conclusion into two. One Decision covers non-JHA content and the other covering JHA content.

"The two new Council Decisions were presented to Member States on 11 June, and they supersede the Council Decision which Parliamentary Scrutiny Committees have previously seen, under cover of my Explanatory Memorandum dated 13 May.

"The UK Government's policy is that we can support the splitting of Council Decisions. Additional legal bases on the environment and transport have been added to the non-JHA decision. The Department for Transport (DfT) and Department for Environment, Food and Rural Affairs (Defra) have indicated they are content with this proposal. As regards the JHA aspect of the agreement, the PCA contains a provision on readmission (at Article 34(3) of the agreement) which falls within the scope of Title V (Area of Freedom, Justice and Security) of Part Three of the TFEU (specifically Article 79(3)), and as such, the UK's JHA opt-in protocol applies. "

The Government's view

21.13  The Minister comments in much the same terms as did his then predecessor four years ago, updated for the passage of time, on the importance of Indonesia and the key role of the PCA in strengthening the EU's relationship with Indonesia.

21.14  On the bilateral front, the Minister notes (as did his then predecessor) that Indonesia is increasingly important to UK interests in a range of areas and is well disposed towards UK priorities on climate change and energy, counter terrorism and the global economy. He also says:

"We will continue to raise human rights concerns including freedom of religion and belief and the death penalty with the Indonesian authorities, and will encourage the EEAS to do the same. We believe that the best way to help Indonesia deal with this issue is through engagement and assistance and not isolation. The EU has a key role to play in that engagement.

"The UK has been stepping up its engagement under the Emerging Powers initiative since 2011. The Prime Minister visited Jakarta in April 2012 and agreed with the Indonesian President to revitalise the UK-Indonesia Partnership Forum, which provides a bilateral framework for greater co-operation on Foreign Policy/International security, Trade and Investment Cooperation, Climate Change and Sustainable Growth and Education. This was followed by a highly successful State Visit to the UK by the Indonesian President in October 2012.

"The UK and the EU work closely together in Indonesia, particularly in the area of Human Rights where the EU has an annual dialogue with Indonesia. We support the EU's position on the death penalty."

Conclusion

21.15  As in 2009, no questions arise on the substance of this Agreement with a partner of great global significance.

21.16  On process, we welcome the decision to split the Decision to conclude the Agreement into two Council Decisions, one concerning JHA measures —a readmission provision — to which the UK's opt-in applies; the other concerning non-JHA measures, which includes new legal bases in the field of environment and transport. This approach provides for greater legal certainty about the UK's participation in JHA measures, something for which this Committee has called since early in this Parliament.

21.17  We see that recital (2) of the draft JHA decision clarifies that the UK will not be opting into the readmission obligations of the PCA Agreement. However, the Minister's Explanatory Memorandum of 9 July is, surprisingly, silent on the Government's approach to the opt-in. This is a significant omission, particularly in view of the enhanced scrutiny procedures which apply to opt-in decisions. We ask the Minister to explain both the reasons for this oversight and the policy considerations which led the Government to decide to opt out of the readmission provision. When the Minister writes, we ask him to attach a copy of the adopted Council Decisions to his letter.

21.18  As no questions arise on the substance of the Agreement, we are content to clear the original Council Decision from scrutiny (COM(13) 230). (The two draft Council Decisions have not been deposited and so do not require to be formally cleared.)




71   The PCA with Russia also provides for the creation of the necessary conditions for the future establishment of a free trade area. See http://europa.eu/legislation_summaries/external_relations/relations_with_third_

countries/eastern_europe_and_central_asia/r17002_en.htm for full information. Back

72   See (30948) 13689/09: HC 19-xxviii (2008-09), chapter 10 (21 October 2009). Back


 
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