On possible consequences of association agreements between EU and EaP member states

Signing of an association agreement between the European Union and any state will not prejudice Russia’s interests in the sphere of marine and inland water transport but will lead to deterioration of the competitive position of a party state’s national sea fleet.

The analysis of the consequences of possible association agreements between the European Union and the partner states of the Eastern Partnership (EaP) (Ukraine, Moldova, Armenia, Azerbaijan, and Georgia) shows no direct threat to the interests of Russia in the sphere of marine and inland water transport but outlines imperial ambitions of Brussels in respect of the states depending on the EU. 

Under the draft association agreement between the European Union and the EU Member States on the one part and with a party state on the other part, the parties apply national treatment and most favoured nation treatment as regards the establishment and operation of subsidiaries, branches and representative offices of legal persons of the EU party.

This treatment does not cover domestic maritime transport. As for international maritime transport, national treatment or most favoured nation treatment is applied depending on what standard is more advantageous.

International maritime transport includes door to door and multi-modal transport operations, which is the carriage of goods using more than one mode of transport; maritime cargo handling services; customs clearance services; container station and depot services; maritime agency services; marketing and sales of maritime transport and related services; freight forwarding services and feeder services which means the pre- and onward transportation of international cargoes by sea, notably containerised, between ports located in a country.

Besides, a party state should not introduce cargo sharing arrangements in future agreements with third countries concerning maritime transport services and terminate such cargo sharing arrangements in the case they exist in previous agreements. As of today, there are no cargo sharing arrangements between Russia and the Eastern Partnership.

Under the association agreement, a party undertakes to introduce EU standards of maritime transport into the national legislation which will predetermine discrimination of national ship owners, stevedores, agents etc. who are not able to ensure equal conditions for their operation in the European market.

It should be noted that according to clause 11 of Article 135, the agreement shall not affect the application of the maritime agreements concluded between a party state and the Member States of the European Union for issues falling outside the scope of this Agreement. If this Agreement is less favourable on certain issues than existing agreements between individual Member States of the European Union and a party state, the more favourable provisions shall prevail without prejudice to EU Party obligations. This approach clearly backs unilateral liberalization of international shipping market of a party state in the interests of EU.

The draft agreement also says that the conditions of mutual market access in inland waterways shall be dealt with by possible future special inland waterways transport agreements.

In this respect it should be noted that Russia and Ukraine have held negotiations in order to prepare and agreement in the sphere of navigation along inland waterways. In 2013, at the meeting of the Working Group of Russia-Ukraine Intergovernmental Commission, this issue was excluded from the agenda till the end of the integration procedures carried out by Russia, Belorus and Kazakhstan within the framework of the Eurasian Economic Union. In the present situation, the prospects on resumption of those negotiations are highly questioned.

In general, the analysis shows that bilateral obligations under the draft association agreement are within the frames of previously signed agreements both in terms of their scope and their character.

It appears that signing an association agreement between the European Union and any state will not prejudice Russia’s interests in the sphere of marine and inland water transport but will lead to deterioration of the competitive position of a party state’s national sea fleet.

Expert team, specially for IAA PortNews