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TERMS OF REFERENCE FOR ESTABLISHING PILOT REGULATORY AND INDUSTRIAL POLICY DIALOGUES ON TEXTILE/CLOTHING, FORESTBASED INDUSTRIES, STEEL, NON-FERROUS METALS AND MINERALS BETWEEN THE FEDERATIVE REPUBLIC OF BRAZIL AND THE EUROPEAN COMMISSION

1.

GENERAL PRINCIPLES

Brazil and the EU concur that the promotion of trade liberalization and the facilitation of trade and of investment flows will foster the economic growth and prosperity of their societies. As part of the process of strengthening and deepening the EU-Brazil relationship, there is a great need for action to raise popular awareness and understanding of our partners’ societies. The potential for business - reflected in impressive investment figures on both sides – is, indeed, still far from being fully exploited. Brazil and the EU, therefore, acknowledge the importance of using the platform of the EUBrazil Strategic Partnership, which was adopted at the First EU-Brazil Summit in Lisbon on 4th July 2007, to deepen relations on issues of global relevance. The EU-Brazil Joint Action Plan, adopted at the Second EU-Brazil Summit in Rio de Janeiro on 22nd December 2008, should serve as a platform for practical action for the next three years. Under the umbrella of this EU-Brazil Joint Action Plan, both Parties should establish dialogues on industrial policy and regulatory cooperation to contribute to the improvement of the competitiveness of business on both sides and to enhance mutual understanding of regulatory frameworks. Therefore, recognising the mutual economic and consumer benefits that arise from strengthening co-operation and exchange of information and assistance, the Federative Republic of Brazil and the European Commission, represented by Directorate General for Enterprise and Industry, have agreed to conduct pilot sectoral industrial policy and regulatory dialogues, complementing the relevant EU-Mercosur discussions, starting with the following sectors: textiles and clothing, forest-based industries, steel, non-ferrous metals and minerals. These regulatory and industrial policy dialogues have the objectives of improving the administrative, regulatory and investment environment for companies operating in the sectors covered by the dialogues, thereby enhancing their competitiveness and sustainability, to improve mutual understanding, and to increase cooperation in these areas. They should promote and enhance mutual understanding of current and planned future legislation and policy in the sectors covered by the dialogues. They should address issues of common interest to both Parties. The participation of industry representatives from both sides should be encouraged and the participation of public administration authorities directly in charge of the areas to be addressed should be ensured in order to make these dialogues more efficient and more resultsoriented.


2.

OBJECTIVES

The objectives of the pilot regulatory and industrial policy dialogues for textiles and clothing, forest-based industries, steel, non-ferrous metals and minerals shall be: Regulatory issues a. Exchange of views on legislation related to technical regulations, standards and conformity assessment procedures in the EU and Brazil; b. Comparative analysis of the technical regulations, standards and conformity assessment procedures in the EU and Brazil; c. Discussion on how to increase the approximation/compatibility of regulations and standards; d. Implementation of technical regulations and functioning of the internal market on both sides. Industrial policy issues a. Economic developments in the involved sectors; b. Exchange of views on the ways the sectors specificities are taken into account by industrial policies on both sides; c. Exchange of information on different regulatory policies that affect competitiveness of these sectors; d. Actions to reinforce the cooperation and the business links between industries from both sides; e. Exchange of information (for the benefit of industry representatives of both sides) on any other bilateral issues affecting industrial policy. 3.

WORKING GROUPS AND CONTACT POINTS

The two Parties agree to establish a working group for each of the specific pilot sectoral issues, i.e. a) textile/clothing, b) forest-based industries, c) steel, d) non-ferrous metals and e) minerals. Decisions on establishing more working groups, and decisions on continuing, stopping, or reorganising any of the working groups can be taken at any time, provided both Parties indicate their agreement via an exchange of letters. The two Parties agree to set up a single contact point for each working group on each side for the fast exchange of information. 4.

WORKING METHODS

The two Parties agree to hold meetings of the working group at least once a year to discuss key issues relating to the dialogues and to agree priorities. The working languages will be Portuguese and English. Meetings will be held alternately in Brazil and the EU. If necessary and appropriate, meetings at a political (Minister – Commissioner) level in a broader format may also be organised.


5.

COSTS

The two Parties agree to share the costs incurred by the above activities as follows: each Party will cover its own costs, including travelling and accommodation costs. 6.

REVISIONS AND ADDITIONS

The two Parties may agree to revise or add to the Terms of Reference. 7.

LEGAL STATUS

These Terms of Reference are not intended to create international obligations binding on the European Communities and the Federative Republic of Brazil and do not constitute an agreement under international law. Done in ??? on ??? 2009. For the Federative Republic of Brazil

For the European Commission

Ricardo Neiva Tavares

Heinz Zourek

Ambassador

Director-General

Brazilian Mission to the European Communities

European Commission Directorate General for Enterprise and Industry


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