The European Union (EU) and China announced today (30.12.2020) the closure of negotiations for a Comprehensive Agreement on Investment which has been under review since 2014 to ensure equal access and protection for companies doing business in both regions.
According to release, this Agreement is of great economic importance and also unites the parties in an investment relationship based on values and principles of sustainable development. Once it enters into force, The instrument will allow greater access to the respective markets for investors from these regions, with greater protection for their operations and products with respect to intellectual property and compliance with international trade laws.
For Beijing, this will mean consolidating its position as the EU's main partner, while at the same time, the latter will be able to break down barriers to its business in the Asian country.
The Agreement also includes important commitments on the environment, climate and labor standards, as well as the effective implementation of the Paris Agreement.
The two sides will aim to conclude negotiations on investment protection within two years of signing the CAI, the text clarifies.
The EU also reiterated its expectation that China will participate in negotiations on industrial subsidies at the WTO. European leaders also stressed the need to improve market access for EU traders in sectors such as agri-food and digital, and to address overcapacity in traditional steel and aluminium sectors, as well as in high technology, the statement said.
The consensus reached is a clear sign of the willingness to deepen ties in the post-pandemic scenario, maintain the stable industrial supply chain and avoid a disarticulation between their economies while the world recovers from the current health crisis.
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