Documents considered by the Committee on 4 February 2015 - European Scrutiny Contents


17 EU-Turkmenistan relations

Committee's assessment Legally and politically important
Committee's decisionCleared from scrutiny; further information requested
Document detailsDraft Council and Commission Decision on the Conclusion of a Partnership and Cooperation Agreement (PCA)
Legal baseArticles 91, 100(2), 207, 209 and Article 218(6)(a) TFEU; Article 101 of the Treaty establishing the European Atomic Energy Community; QMV
DepartmentForeign and Commonwealth Office
Document number(36553), —

Summary and Committee's conclusions

17.1 Partnership and Co-operation Agreements (PCAs) were introduced as an instrument for developing the EU's relationship with third countries in the early 1990s. They were primarily targeted at the countries of the former Soviet Union, though more recently their geographical scope has widened. These agreements provide a broad framework for developing the EU's political and economic relations with the countries in question, and establish an institutional basis within which these relations can be discussed regularly.

17.2 Turkmenistan is the only one of the five Central Asian States that does not have a PCA with the EU. An EU-Turkmenistan PCA was signed on 25 May 1998, and ratified by Turkmenistan in 2004. It will come into force when ratified by each Member State and concluded (ratified) by the EU. The purpose of this Decision is to enable the EU to do this, once the European Parliament has signified its consent.

17.3 In the absence of a full PCA, an Interim Trade Agreement (ITA), dating back to 2009, currently exists between Turkmenistan and the European Union.

17.4 Our first Report of 17 December 2014 sets out the background in more detail. In our second, of 14 January 2015, we expressed our disagreement with the Government that the UK opt-in was engaged in respect of the provisions of the PCA on Mode IV services,[66] but noted that this disagreement had little practical effect in this case.

17.5 We also expressed the view that it was unacceptable for the text of this Decision to retain its limité classification, and thus of only limited use for scrutiny by this House, once it was made available to the European Parliament.

17.6 Finally we sought further clarification on the issue of EU competence.

17.7 We are pleased that the Government has now secured the removal of the limité classification of this text. In our view the Council was not justified to retain this classification for as long as it did.

17.8 Whilst the PCA does not raise any substantive issues of policy, it does raise legal issues. That which is outstanding is one which arises frequently in relation to external agreements which are entered into by both the EU and the Member States. This draft Decision lacks clarity as to the exercise of competence. It does not identify the provisions of the PCA in respect of which the EU (as opposed to the Member States) is acting; nor does it make it clear the extent to which the EU is acting in respect of matters for which it has exclusive competence, where competence shared with the Member States, or for which the EU and Member States have parallel competence.[67] Our main concern is that the EU should not, without strong reason, act in areas of shared competence in preference to the Member States.

17.9 In relation to this concern, the Minister for Europe (Mr David Lidington) indicates that the PCA principally covers matters for which the EU has exclusive competence (under the EU's common commercial policy and in respect of EURATOM matters) or parallel competence (insofar as it relates to development co-operation). It is only in respect of the relatively minor aspect of the PCA, trade in transport services, where there is some shared competence.

17.10 Although he does not refer to this in his letter, it is also evident from the third recital to the Decision that, even in this area, some of the competence is exclusive to the EU by virtue of the fact that the PCA would affect existing EU internal legislation.[68] This recital is also consistent with the EU acting only where it has exclusive or parallel competence.

17.11 Additionally we have been informed by FCO officials that the Government intend to make a minute statement to address the residual PCA provisions on trade in transport services that are subject to shared competence.

17.12 In the light of these factors and the extended history of this matter we are prepared to clear this document from scrutiny on a matter which raises no substantive policy issue. We ask, however, to be provided with a copy of the minute statement in the form it is lodged.

Full details of the documents: Draft Council and Commission Decision on the conclusion by the European Union and the European Atomic Energy Community of the Partnership and Cooperation Agreement establishing a Partnership between the European Communities and their Member States, of the one part, and Turkmenistan, of the other part: (36553), —.

The Minister's letter of 16 January 2015

17.13 In respect of making the proposed Decision publicly available the Minister informs the Committee:

    "I am pleased to say that, subsequent to the Committee's most recent correspondence, our repeated requests to EU interlocutors seeking a publicly releasable text of the draft Council and Commission Decision have finally borne fruit. We received confirmation from the Secretariat on 15 January that the draft document would be declassified, and passed a copy to the Committee the same day. I hope that this will assist the Committee in their further consideration of the matter."

17.14 He deals with the question of competence as follows:

    "On the question of competences, the Committee sought additional clarity as to the respective exercise of competence between the EU and its Member States. As I previously explained, the Council Decision on Conclusion reflects the fact that the EU will principally be exercising exclusive competence in respect of its common commercial policy (as well as in relation to the Euratom Treaty) but also shared competence in respect of trade in transport services and parallel competence in respect of development co-operation. Aside from that, there is no explicit statement in respect of each Article as to whether the EU or Member States or both will be entering into the relevant obligations. As this is a mixed agreement and on the basis that the Council Decision on conclusion does not authorise the EU to enter into any remaining shared competences, we are proceeding on the basis that these will be for the Member States to assume. We are satisfied that the content of the Agreement and the Council Decision authorising the EU to conclude it are generally consistent with similar Partnership and Co-operation Agreements. In any event, as stated in previous correspondence, officials will scrutinise how the agreement is implemented, including in relation to issues of competence and will seek to ensure that the EU acts only in relation to competences authorised by the Council Decision."

17.15 On the question of whether the UK opt-in is engaged, on which we expressed our view in our Report of 14 January, he states:

    "I note the Committee's views in relation to the Opt-in, but can only reiterate that given that the UK is already compliant with the Mode IV provisions of the PCA and the fact that the Commission would be very unlikely to accept such an application, we have taken the decision not to seek a post-adoption opt-in."

Previous Committee Reports

Twenty-ninth Report HC 219-xxviii (2014-15) chapter 6 (14 January 2015), Twenty-seventh Report HC 219-xxvi (2014-15) chapter 5 (17 December 2014).


66   ie., services provided by the movement of the service provider across borders and which therefore interact with immigration law. Back

67   Where the EU has exclusive competence only it can act. Where competence is shared with Member States, either can act, although Government policy is that normally the choice should be in favour of the Member States. Where competence between the EU and the Member States is parallel, either can act, but EU action does not prevent Member States exercising their competence, as is the case where competence is shared. Back

68   Article 3(2) TFEU. Back


 
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Prepared 13 February 2015