29 Accession of the Seychelles to the
World Trade Organisation
| Committee's assessment
| Legally important |
| Committee's decision | Cleared from scrutiny
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| Document details | Draft Council Decision on the accession of the Seychelles to the World Trade Organisation
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| Legal base | Articles 91, 100(2) and 207, in conjunction with Article 218(9) TFEU
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| Department | Business, Innovation and Skills
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| Document number | (36345)
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Summary and Committee's conclusions
29.1 The process which effectively sets out the terms and conditions
under which an applicant country accedes to membership of the
World Trade Organisation is one in which the Commission negotiates
on behalf of the EU Member States, and, once those terms have
been agreed, a vote must be taken in the General Council of the
WTO on allowing the new member to join.
29.2 This document relates to an application for membership from
the Seychelles, and, although it does not give rise to any significant
policy issues, there are — in common with a number of previous
such accessions — a number of issues arising from the lack
of an appropriate legal base for the exercising of certain of
the UK's opt-in rights.
29.3 This draft Decision is clearly to be welcomed on policy
grounds, with the main point of interest arising — as on
a number of previous accessions — over the Government's
view that the provisions concerning Mode 4 services (which impact
upon immigration law) give rise to an opt-in under Protocol 21
to the Treaties, even in the absence of an appropriate legal base.
As we have consistently stated in previous similar cases, we disagree
that the UK opt-in is engaged in these circumstances. However,
as this difference of opinion has little practical impact in this
case we are content to clear the document.
Full details of
the documents: Draft
Council Decision establishing the European Union position within
the relevant instance of the World Trade Organisation on the accession
of the Seychelles to the World Trade Organisation: (36345),—.
Background
29.4 The process of
World Trade Organisation (WTO) accession consists of two strands.
First, individual WTO members agree bilateral arrangements with
the acceding country regarding market access for industrial goods,
agricultural trade, and services, the outcomes of these individual
negotiations then being amalgamated into the Schedules of Commitments
and the best offers granted to all WTO members on the 'Most-Favoured
Nation' (MFN) principle. Secondly, there are discussions on the
compatibility or otherwise of the trade policy regime of the acceding
member with the multilateral agreements and obligations which
constitute WTO membership. This process — which the Commission
negotiates on behalf of the EU Member States — effectively
sets out the terms and conditions of the acceding party's membership,
and, once these have been agreed, a vote must be taken in the
General Council of the WTO on allowing the new member to join.
The current proposal
29.5 Although an official
text is not yet available, we have been sent an Explanatory Memorandum
of 22 September 2014 by the Minister for Trade and Investment
at the Department for Business, Enterprise and Skills (Lord Livingston
of Parkhead), indicating the Commission is expected to put forward
shortly a draft Council Decision proposing that the EU should
support the accession of the Seychelles which applied to become
a member in 1995.
29.6 The Minister says that the UK has only a limited
economic interest,[145]
but that, in line with its commitment under the Commonwealth Charter
to assist small and developing states (including small islands
in particular), it supports this application, which will enable
foreign businesses, including those from the UK, to operate in
a more transparent and predictable business environment, with
better protection also for intellectual property rights. He adds
that the Government agrees with the Commission that the accession
terms are reasonable, and represent a balanced but ambitious package
of market opening commitments, given the small size of the Seychelles
economy: in addition, WTO membership will allow the Seychelles
to benefit from market access and global trading rules and the
transparency of the WTO trading system, and will also enable the
country to use the WTO Dispute Settlement Mechanism to solve its
differences with other members and fully participate in the on-going
negotiations to design the trade rules of the future.
29.7 The Minister goes on to observe that the UK
is bound by commitments to admit services professionals from all
existing WTO Members in accordance with its so-called 'Mode 4'
commitments under the General Agreement in Trade in Services (GATS),
and that these commitments will be extended to the Seychelles
when it becomes a WTO Member. However, he regards it as unlikely
that this would give rise to a significant increase in the number
of arrivals, as the Mode 4 categories are tightly defined, with
a clear focus on highly skilled, highly qualified services professionals.
He also notes that this measure is expected to be proposed under
Article 207(6) TFEU, which is a non-Title V legal base. However,
as EU legislation requiring Member States to open their markets
to the provision of services by natural persons from third countries
would impose JHA obligations on the UK, the Government's view
was that the UK's JHA opt-in is engaged.
Previous Committee Reports
None.
145 UK exports of goods to the Seychelles in 2013 were
about £19 million. Back
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