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May 5, 2021, 11:07 AM

The EU-UK Trade and Cooperation Agreement (CTA) isnt like most trade deals. As the EUs lead negotiator Michel Barnier noted recently, This is a divorce, not a union. Perhaps its fitting, then, that the European Parliament vote on ratification comes amid new threats of retaliation from Europe and lingering questions over the future of economic cooperation in the continent.

The underappreciated value of trade deals isnt that they promote trade. Its that they aim to promote market stability. Trade deals are designed to harmonize economic policies and prevent the introduction of new trade barriers among the members. The upshot is that a more stable policy environment should lead to smoother, more predictable trade.

The five years since the Brexit referendum show what happens when the rules break down and uncertainty reigns. When the referendum cast doubt over the future of economic cooperation, the impact on British traders was immediate and significant, leading to a sharp drop in exports from the United Kingdom in 2016. Over the subsequent five years, firms struggled to adapt. In turn, there was much more volatility in British trade relations than in recent decades, marked by shorter, sharper fluctuations in trade flows. More recently, UK exports to the EU were down markedly in the first months of 2021and not simply because of the COVID-19 pandemic.

Given the costs already incurred, CTA ratification may bring welcome relief to the firmsand the workershurt by the last half-decade of uncertainty.

The deal does contain some good news. One of its most important features is a commitment to keeping trade in goods tariff- and quota-free. Maintaining the free movement of goods wasnt inevitable. If a deal had not been reached last winter, the United Kingdom would likely have traded with the EU under World Trade Organizations rules that apply to other partners like the United States and China. That would have meant higher tariffs as well as lengthier delays negotiating specific commitments. CTA ratification evades those two traps.

However, its important to remember that tariffs are only one of the many ways in which government protect their markets. There are a litany of other trade-related policies over which the EU and United Kingdom still disagree.

Take sanitary and phytosanitary (SPS) measures. SPS is a fancy name for health and safety regulations pertaining to animal and plant products, such as the EUs (in)famous limits on GMOs. SPS is a complex area of trade law that comes under frequent debate among countries at the World Trade Organization. The EU and United Kingdom will now maintain their own SPS standards, which is a small political victory for British officials who wanted greater autonomy. In the UKs view, independent standards could provide greater leeway when negotiating future deals, particularly with the United States, which has longstanding disagreements with the EUs SPS regime.

Yet maintaining two SPS regimes also means additional bureaucratic headaches for agricultural firms. The president of the United Kingdoms National Farmers Union noted that new checks, paperwork, and requirements on traders will add costs and complexity to doing business across the Channel. And, in the first months of 2021, there have already been supply chain delays as businesses try to navigate the new regulatory environment relating to a products origin and other technical barriers.

Then there is the much-discussed level playing field. The EU originally wanted firm commitments on competition policies like government procurement rules and labor regulations. This includes policies like subsidies, which are controversial because subsidies are often viewed as trade-distorting, providing an unfair competitive advantage to the firms who receive them. While there is some agreement on subsidies, the deal also includes flexibility for the United Kingdom to make its own determinations. This has already led to disagreement and raised questions over enforcement of the rules moving forward.

The disagreements over SPS and subsidies are just two examples. Doubts also surround fishing rights allocated to EU members, the movement of labor within the region, access to financial services, and the rules governing Northern Ireland trade, just to name a few.

In all these areas, the EUs preference for policy harmony continues to conflict with the United Kingdoms demand for autonomyhence last weeks tough talk. Most notably, European Commission President Ursula von der Leyens warned that the EU will not hesitate to use retaliatory measures if the British fail to honor their end of the deal. Those sentiments were echoed by some member countries, including France, that threaten reprisals over fair market access. Its clear that the process is far from over.

None of this is to say that the old trade rules were perfect. There is a growing consensus that global trade rules need updatingif not a full-scale overhaul. At the same time, doubts about the enforceability of many CTA provisions are nothing new. Enforcement problems are endemic to most areas of international law, including trade. Just ask the EU and the United Kingdom, which have both faced their fair share of trade litigation to iron out disagreements over the rules.

Long, costly disagreements are precisely what most trade deals aim to avoid. However, given current tensions, there may be many more disputes before we see the greater stability.

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The New Agreement Between the United Kingdom and the European Union May Deepen Instability - Foreign Policy

The EU has accused Russia of seeking confrontation after the Kremlin sanctioned senior officials in Brussels and the president of the European parliament in a retaliatory move.

In a joint statement by Ursula von der Leyen, Charles Michel and David Sassoli, the heads of the European commission, council and parliament said Moscows action on Friday had been groundless.

The three leaders of the EU institutions said the 27-member-state bloc was now prepared to take further action against Russia in the latest phase of a steady deterioration of relations in recent months. The EUs response to the imprisonment of opposition leader Alexei Navalny has until now been widely criticised for its lack of bite.

We condemn in the strongest possible terms todays decision of the Russian authorities to ban eight European Union nationals from entering the Russian territory, the EU leaders said in a statement. This action is unacceptable, lacks any legal justification and is entirely groundless. It targets the European Union directly, not only the individuals concerned.

This decision is the latest, striking demonstration of how the Russian Federation has chosen confrontation with the EU instead of agreeing to redress the negative trajectory of our bilateral relations. The EU reserves the right to take appropriate measures in response to the Russian authorities decision.

The EU response followed an announcement by the Kremlin that eight senior figures in the blocs institutions had been put on a travel blacklist preventing them from travelling to Russia in retaliation for EU sanctions over Navalnys imprisonment.

The Russian foreign ministry claimed the EU had been seeking to punish Moscow for its independent foreign and domestic policies, citing EU sanctions imposed on six Russian officials in March over Navalnys imprisonment.

All our proposals for settling problems between Russia and the EU through a direct professional dialogue have been consistently ignored or rejected, the Russian ministry said.

Vra Jourov, the EU commissioner for values and transparency, who is from the Czech Republic, said she was pleased to be in such good company, referring to the other officials prohibited from entering Russia.

I will continue to stand up for human rights, for media freedom and for democracy, she said. Russias constant efforts to sow disinformation and to undermine human rights deserve strong and continuous reaction. If this is the price for telling the truth, then I will gladly pay it.

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EU condemns groundless Russian sanctions against its officials - The Guardian

Flags of the Union Jack and European Union are seen ahead of the meeting of European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson, in Brussels, Belgium December 9, 2020. Olivier Hoslet/Pool via REUTERS/File Photo

Britain has granted full diplomatic status to the European Union's ambassador in London, ending a dispute that has strained relations between the two sides after Brexit.

Britain initially refused to grant the same diplomatic status and privileges to EU Ambassador Joao Vale de Almeida as it gives to envoys of other countries, on the basis that the EU is not a nation state.

The European Union responded by shutting the British ambassador in Brussels out of meetings. The disagreement was resolved after a meeting between Britain's foreign minister Dominic Raab and Josep Borrell, the blocs top diplomat, on the sidelines of a G7 foreign ministers meeting in London.

"We are pleased to have reached an agreement together, based on goodwill and pragmatism," Raab said in a statement on Wednesday.

"The EU Ambassador will have a status consistent with heads of missions of states, including agrment and presentation of the credentials to the Head of State."

Under the Vienna Convention governing diplomatic relations, envoys representing countries have certain privileges such as immunity from detention and, in some cases prosecution, as well as tax exemptions.

Representatives of international organisations whose status is not covered by the convention tend to have limited and less clearly defined privileges.

The European Commission, the 27-member blocs executive body, said the EUs 143 delegations around the world had all been granted a status equivalent to that of diplomatic missions of states.

Our Standards: The Thomson Reuters Trust Principles.

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Britain ends row with EU over diplomatic status of London ambassador - Reuters UK

LONDON (Reuters) - European Union policymakers faced a call on Wednesday to break a climate-finance doom loop by making banks hold up to three times more capital to cover risks from fossil fuel activities.

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium, March 24, 2021. REUTERS/Yves Herman

Finance Watch, which campaigns to make finance work better for society, has written to European Commission President Ursula von der Leyen, urging the EU to toughen capital rules for banks and insurers involved in environmentally damaging activities.

The longer the European Union waits, the higher the chances mount that it will face a financial crisis induced by the climate crisis, Finance Watch said in the letter.

The lobby group, set up after taxpayers had to bail out banks in the 2008 financial crisis, is supported by its members, philanthropic foundations, public donations, and the EU.

The EU is reviewing its capital rules for banks and insurers, and Finance Watch has suggested changes that would force them to hold far more capital to cover polluting activities, such as financing new mines or refineries.

It is unclear how far the EU would take on board Finance Watchs suggestions given it needs banks to help the bloc recover from the COVID-19 pandemic and is rolling out new rules that emphasise disclosures of climate-related activities.

Under current bank rules, financing fossil fuel activities carries the same risk weighting as other types of corporate financing. Banks use these to calculate how much capital they should hold in case the activities turn sour.

As many oil and gas companies have high credit ratings, the risk weighting for them can be as low as 20% to 50%.

The risk of such activities becoming stranded or suddenly worth far less due to climate-related events, is not factored into bank capital rules sufficiently, the letter said.

To rectify this, a risk weight of 150% ... should be applied to existing fossil fuel exposures, it added, bringing the investments into line with others which are considered more risky, such as private equity.

Reporting by Simon Jessop; Editing by Alexander Smith

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EU urged to end 'doom loop' with tougher climate finance rules - Reuters

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On April 12, 2021, the European Commission announced to haveapproved an important package for Hellim /Halloumi product, which is presently under protection as aprotected designation of origin (PDO) both in the Turkish Republicof Northern Cyprus and in the Republic of Turkey, upon anapplication filed by the Cyprus Turkish Chamber of Industry. Fulltext of the announcement may be retrieved from this link.

First of all, it must be underlined that this article hasbeen written completely independent from the political situation ofCyprus island, and includes an examination within the framework ofthe duality created by the aforementioned protected designation oforigin registration in terms of Intellectual PropertyRights.

The main point of the package is the registration of/Halloumi/Hellimproduct as a protected designation of origin (PDO) upon theapplication of the Greek Cypriot Administration of Southern Cyprusby European Commission, referring to "Cyprus" as thecountry of origin. (As Turkey does not recognizeCyprus as a state, the words used as 'Cyprus' in the textof announcement of the European Commission will hereinafter bereferred to as the 'Greek Cypriot Administration of SouthernCyprus'. Likewise, the references made to the Turkishside in the announcement will hereinafter be referred to as the'Turkish Republic of Northern Cyprus'.) Thegeographical border of the aforesaid protected designation oforigin is stated as both Turkish and Greek Cypriot sides of theIsland of Cyprus. Details regarding this registration may also beretrieved from here.

Furthermore, in order to facilitate producers in the TurkishRepublic of Northern Cyprus to draw full benefits from thisprotection, the European Commission also announced to have adopteda measure allowing the product to cross the Green Line and to beexported to and traded in EU via the Green Line Regulation,provided that halloumi is produced in strict compliance with theEuropean Union (EU) Food Safety Standards. Those who wish tolearn the details may retrieve the EU Regulation no. 866/2004 known andtermed generally as the Green Line Regulation.

The package based on the ground of a mutual agreement reached byand between the leaders of the Turkish Republic of Northern Cyprusand the Greek Cypriot Administration of Southern Cyprus in 2015 maybe basically defined with the following features:

Defining this package as a political and economic success, theEuropean Commission members added that this package will increasetrust between two segments of the island of Cyprus, and that bothsegments will derive economic benefits out of the package, which inturn is said to have facilitated it for the consumers in EU to knowthis product better.

For registration of/Halloumi/Hellimproduct as a protected designation of origin (PDO), an applicationwas filed by the Greek Cypriot Administration of Southern Cyprus tothe European Commission on July 17, 2014.

Following publication, a total of 17 oppositions have been filedagainst said application. List of these oppositions showing alsothe petitioners thereof is as follows: Dairy Australia (Australia);Consortium for Common Food Names (United States of America); UnitedKingdom of Great Britain and Northern Ireland (United Kingdom);St ve Ya rnleri retim ve PazarlamaKooperatifi Ltd. (Dairy and Oil Products Production and MarketingCooperative (Turkish Republic of Northern Cyprus); Animal Producersand Breeders Union (Turkish Republic of Northern Cyprus); FatmaGARANT (Turkish Republic of Northern Cyprus); MilkProducers Union (SUIB) (Turkish Republic of Northern Cyprus);Cyprus Turkish Chamber of Industry (Turkish Republic of NorthernCyprus); Cyprus Turkish Chamber of Commerce (Turkish Republic ofNorthern Cyprus); Navimar Food Gda malat veGda (Turkey); DM Gda Maddeleri Pazarlama Sanayi veTicaret Ltd. ti (Turkey); Avunduk thalat hracatGda ve Zirai Aletler Sanayi Ticaret Ltd. ti. (Turkey);UTCO Trading Company - WLL - (Kuwait); Dairy Companies'Association of New Zealand (DCANZ) and Specialized CheeseProducers' Association of New Zealand (New Zealand); DrNutrition (United Arab Emirates) and FFF Fine Foods Pty Ltd(Australia).

Though it is not possible for us to list and discuss in thisarticle all of the justifications of the aforesaid oppositions, wedeem it useful to share here a few attention-grabbingjustifications of oppositions:

After examining all these justifications of opposition and evenmore, the Commission has concluded that these oppositions do notconstitute an impediment for registration of this protecteddesignation of origin, by also explaining its reasoning thereon. Itis also underlined that it is proven by valid evidence thatHalloumi/Hellim product is not seen only as a type of cheese havingno link or connection with a particular geographical region, andthat the link of this product with the island of Cyprus isincontestably proven by its exporting activities continuing sincemore than 100 years, numerous promotional activities and againnumerous articles.

Accordingly, the Commission clearly pointed out that just likeall other intellectual property rights, the protection ofgeographical indications is also territorial by nature, and that iswhy the registration of this protected designation of origin isvalid only within the borders of the European Union, and thus,probable production or marketing of any cheese namedHalloumi/Hellim in third countries is by no means associated orlinked with this registration. However, it is added that theprovisions of article 14 of the EU Regulation no. 1151/2012 will be applicablefor the trademarks already registered in many EU member states, andthe existence of these trademarks does not prevent the protectionof Halloumi/Hellim product by a protected designation oforigin.

It should also be stated that while the application andoppositions processes were continuing, on one side, on the otherside, intensive negotiations have been conducted by and between theleaders of the Turkish Republic of Northern Cyprus and the GreekCypriot Administration of Southern Cyprus with the intention ofcompleting the process in the best interests of bothadministrations.

The Commission's Implementing Regulation (2021/591) of April12, 2021 containing details regarding application, oppositions,replies to oppositions, and registration of the protecteddesignation of origin of/Halloumi/Hellimcan be retrieved from this link.

On the part of producers of the Turkish Republic of NorthernCyprus, at this point, the leading uncertainties may be outlined asthe methodology of inspections to be conducted bythe international inspection body ("Bureau Veritas"according to the implementing regulation) assigned forcontrols of compliance of Hellim with the registration standards,and the uncertainty of the firm to be appointed for foodsafety controls of Hellim to be traded over the GreenLine.

Besides, there are some other reservations also inrespect of characteristic ingredients of Hellim. Thedocument gives the following definition as regards ingredients ofHalloumi/Hellim product registered as a protected designation oforigin: "Milk (fresh sheep or goat's milk ora mixture thereof, with or without cow's milk added), rennet(but not pig rennet), fresh or dried Cypriot mint leaves (Menthaviridis) and salt. The proportion of sheep or goat's milk orthe mixture thereof must always be greater than the proportion ofcow's milk." As seen, sheep's milk andgoat's milk may either be used separately, or alternatively, ablend of sheep's, goat's and cow's milks may also beused therein. However, given that tastes and aromas of these threetypes of milk are very different from each other, it is also opinedthat it will be better and more useful to determine more clear andnet percentages for these types of milk for the sake of a higherstandardization of Hellim product.

In addition, one of the common reservations of the producers inboth the Turkish Republic of Northern Cyprus and the Greek CypriotAdministration of Southern Cyprus is whether the island of Cypruswill be capable of physically meeting the conditions sought for inthe registration, because one of the most important characteristicsof Halloumi/Hellim product registered as a protected designation oforigin is its being made of sheep's and goat's milksobtained in the designated geographical area (the island of Cyprus)from native races acclimatized to the climate of the islandof Cyprus or from their crossbreds. Considering the totalarea of agricultural fields and the volume of husbandry of theisland, the producers are concerned that the raw materials may notsuffice for the existing and planned exports.

"Hellim/ Halloumi" is indeed a protected designationof origin registered in Turkey under C2008/046 registry number since 10.10.2008 andhas been registered by the Cyprus Turkish Chamber of Industry. Nowand therefore, the most important point we wish to draw yourattention is the fact that the same protected designation of originhas thus been unprecedentedly registered by different persons indifferent geographies, and hence, some liabilities of theregistrant have been relocated with the changing geographies.

First of all, we would like to point out a few law provisions.Within the frame of provisions of second paragraph of Article 49 ofthe Industrial Property Rights Law pertaining to use ofgeographical signs, control shall be carried out by the controlauthority specified in the application and whose competence hasbeen approved by the Office and change of the control authoritystated in the register may be made upon approval of the TurkishPatent and Trademark 9Office. And according to third paragraph ofthe same article, control reports shall be submitted to the Officeonce a year after registration is published in the Bulletin. Inaddition, seventh and eighth paragraphs of Article 45 of theRegulation for Implementation of the Industrial Property Rights Lawprovide for as follows: "Official reports kept during thecontrols are communicated by the control authority to theregistrant. The registrant reviews the official reports submittedas above, and in case of availability of notes in conflict with theregistration details, takes the legal actions andproceedings." "The registrant reports the officialreports regarding the controls delivered to it."

In the light of these explanations on the current law, it willbe useful for us to have a look at the details of registration ofHellim/Halloumi as a protected designation of origin in Turkey uponan application of Cyprus Turkish Chamber of Industry.Hellim/Halloumi, made of milks of sheep, goats and cows fedby native plants of the island of Cyprus, is produced traditionallyall over the island, under control of an Official Authorityappointed by the Ministry of Agriculture within theadministrative borders of provinces of the Turkish Republic ofNorthern Cyprus. Accordingly, the audit authority named in theregistration details is required to conduct audits regardingcompliance with the registration conditions (compliance withthe registration conditions in the country of origin is sufficient,according to article 39/1(b) of the Industrial Property RightsLaw), and then, as one of the conditions of survival of ageographical sign registered in Turkey, the official reportrelating to these controls conducted by the control authority mustalso be submitted by the registrant to the Turkish Patent andTrademark Office every year.

Under these circumstances, some questions come to mind:

These questions may be further increased according to points ofview of individuals from many different segments.

Considering the current political situation in the island ofCyprus, such a rather exceptional case as registration of the sameproduct by different states in different geographies may beconsidered and treated as acceptable. However, we believe and hopethat some confusions facing us at present at the first stage,particularly some uncertainties encountered by producers and somemesses created by double-headed system in the process of managementof Hellim/Halloumi protected designation of origin will be resolvedby some constructive steps to be taken by the relevantadministrative authorities as soon as possible.

It is very important to be able to strongly market and promoteall over the world this product of Hellim as a food productimportant for citizens of both the Republic of Turkey and theTurkish Republic of Northern Cyprus, but it is as well veryimportant to make sure that basic characteristics of the productare maintained for both consumers and producers for the sake ofsustainability of this geographical sign for generations. As aconclusion, it is our sincere wish to witness the continuity ofthis protection process of Hellim/Halloumi product in the mostpeaceful and constructive manner possible.

References:

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Hellim/Halloumi Registered As A Protected Designation Of Origin In The European Union! - Intellectual Property - Turkey - Mondaq News Alerts