EU puts new Investment Agreement with China on hold

The European Commission will stop efforts to approve the Comprehensive Agreement on Investment (CAI) between China and the European Union (EU). European Commissioner for Trade, Valdis Dombrovskis, said that approval for the CAI is complicated due to recent EU-China relations. 

The European Parliament (EP), which has to approve the 2020 agreement, said that approval is “impossible” for the time being because of the tense relationship. In recent months, the Parliament has already been critical of the CAI, given the recent Chinese sanctions against five Members of the European Parliament. As long as China does not withdraw the sanctions, the EP will not ratify the agreement.

“We have in a way suspended the political rapprochement activities on the part of the European Commission”, Dombrovskis told Agence France-Presse.

A spokesman for Dombrovskis said that lawyers still had to study the CAI and the text still had to be translated before the EP could consider it. Nevertheless, “the prospects for ratifying the agreement will depend on how the situation develops. In this context, the Chinese retaliatory sanctions against MEPs are unacceptable and regrettable.”

After seven years of negotiations, the European Commission, together with the German presidency of the EU at the time, concluded the investment agreement with Beijing late last year with a view to further open the Chinese market to European companies. The European Parliament and some member states, however, were quick to criticise the deal, claiming it contained insufficient guarantees for European companies.


Source: commonspace.eu with agencies

Related articles

Editor's choice
News
Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

Borrell tells the European Parliament that the situation in Afghanistan was critical, but the EU will remain engaged

Borrell underlined that the European Union will make every effort to support the peace process and to remain a committed partner to the Afghan people. "Of course, we will have to take into account the evolving situation, but disengagement is not an option.  We are clear on that: there is no alternative to a negotiated political settlement, through inclusive peace talks.
Editor's choice
News
Putin makes first visit to Kursk since Russia recaptured region

Putin makes first visit to Kursk since Russia recaptured region

Russian President Vladimir Putin visited Kursk for the first time since Moscow claimed to have completely recaptured the region following a surprise incursion by Ukrainian forces last year, Russian state news agency TASS reported on Wednesday. Putin met with municipal leaders in the city of Kurchatov and visited the Kursk nuclear power plant, which is currently under construction, the Kremlin said, according to TASS.

Popular

Editor's choice
News
Putin makes first visit to Kursk since Russia recaptured region

Putin makes first visit to Kursk since Russia recaptured region

Russian President Vladimir Putin visited Kursk for the first time since Moscow claimed to have completely recaptured the region following a surprise incursion by Ukrainian forces last year, Russian state news agency TASS reported on Wednesday. Putin met with municipal leaders in the city of Kurchatov and visited the Kursk nuclear power plant, which is currently under construction, the Kremlin said, according to TASS.