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BRUSSELS—A trade deal with Singapore should be approved by European Union countries’ parliaments as well as Brussels, an adviser to Europe’s top court said Wednesday, signaling potential difficulties in ratifying future pacts, including with the U.K.
While nonbinding, the adviser’s view is a blow to the European Commission, which negotiates trade deals on behalf of EU governments and has faced criticism that important pacts shouldn’t be decided only by Brussels.
It also highlights the struggles the EU may face in getting future deals approved, including one expected with the U.K. once it exits the union.
Eleanor Sharpston, a British lawyer who is an advocate general for the Luxembourg-based European Court of Justice, said that some parts of the EU-Singapore trade agreement fell outside the EU’s exclusive competence and that the deal could “only be concluded by the European Union and the member states acting jointly.”
She said parts of the deal in the EU’s remit included goods trade and foreign direct investment, but others, such as trade in several transport services and labor and environmental standards, were the responsibility of the bloc’s member states.
“While the Advocate General notes that difficulties may arise from a ratification process involving all of the member states alongside the EU, she considers that that cannot affect the question of who has competence to conclude the agreement,” the court said.
The ECJ will publish its final ruling in three to six months, which are typically in line with that of its top adviser.
Getting the approval of the bloc’s national and regional parliaments could be a protracted and contentious process. The EU got a taste of this earlier this year when the Belgian region of Wallonia almost derailed a deal with Canada.
The EU and Singapore concluded negotiations on their free-trade agreement in 2014. Previous deals have been ratified by the bloc’s trade ministers and the European Parliament.
But before the ratification of this deal began, the European Commission asked the ECJ if this procedure would suffice or if national and regional parliaments also needed to give the green light.
The commission and the European Parliament argued that agreement by trade ministers and the parliament should be enough, but some national governments said that certain parts of the accord fell within their purview.
“This is an important element contributing to the court’s reflection, so we are of course carefully analyzing it. However, it must be clear that no definitive conclusions can be drawn until the court itself issues its final opinion,” a commission spokesman said.
Write to Viktoria Dendrinou at [email protected]
While nonbinding, the adviser’s view is a blow to the European Commission, which negotiates trade deals on behalf of EU governments and has faced criticism that important pacts shouldn’t be decided only by Brussels.
It also highlights the struggles the EU may face in getting future deals approved, including one expected with the U.K. once it exits the union.
Eleanor Sharpston, a British lawyer who is an advocate general for the Luxembourg-based European Court of Justice, said that some parts of the EU-Singapore trade agreement fell outside the EU’s exclusive competence and that the deal could “only be concluded by the European Union and the member states acting jointly.”
She said parts of the deal in the EU’s remit included goods trade and foreign direct investment, but others, such as trade in several transport services and labor and environmental standards, were the responsibility of the bloc’s member states.
“While the Advocate General notes that difficulties may arise from a ratification process involving all of the member states alongside the EU, she considers that that cannot affect the question of who has competence to conclude the agreement,” the court said.
The ECJ will publish its final ruling in three to six months, which are typically in line with that of its top adviser.
Getting the approval of the bloc’s national and regional parliaments could be a protracted and contentious process. The EU got a taste of this earlier this year when the Belgian region of Wallonia almost derailed a deal with Canada.
The EU and Singapore concluded negotiations on their free-trade agreement in 2014. Previous deals have been ratified by the bloc’s trade ministers and the European Parliament.
But before the ratification of this deal began, the European Commission asked the ECJ if this procedure would suffice or if national and regional parliaments also needed to give the green light.
The commission and the European Parliament argued that agreement by trade ministers and the parliament should be enough, but some national governments said that certain parts of the accord fell within their purview.
“This is an important element contributing to the court’s reflection, so we are of course carefully analyzing it. However, it must be clear that no definitive conclusions can be drawn until the court itself issues its final opinion,” a commission spokesman said.
Write to Viktoria Dendrinou at [email protected]
