Brussels, 09/11/2010 (Agence Europe) - Aiming to be more offensive, yet more progressive, in terms of access to markets in services, investment, public contracts and raw materials, the new EU trade strategy unveiled by EU Trade Commissioner Karel De Gucht calls for a less naive approach to free trade. He is determined that the EU shall get the necessary reciprocity from its trade partners for opening up its market to foreign trade. Restating the commitment to the Doha multilateral trade round at the World Trade Organisation (WTO), the new European Commission strategy focusses all the same on bilateral deals.
Following on from the trade strategy unveiled in 2006 by De Gucht's predecessor Peter Mandelson, a balance sheet of which is set out by the European Commission in a document annexed to the new trade strategy (a progress report on Global EUROPE 2006-2010), De Gucht's new version of the EU trade strategy was endorsed by the EU College of Commissioners and presented to reporters on Tuesday 9 November 2010. It is based on a commitment by the EU to achieve an open, balanced and regulated trade system. It aims to take a stronger approach to ensure that all stakeholders, particularly European consumers, can benefit from free trade.
The European Commission report explains near the beginning: “For an open trade policy in Europe to succeed politically, others - including both our developed and emerging partners - must match our efforts in a spirit of reciprocity and mutual benefit. Trade policy will not gain public support in Europe if we do not have fair access to raw materials, or if access to public procurement is blocked, for example. The EU will remain an open economy but we will not be naive. In particular, the Commission will remain vigilant in defence of European interests and European jobs. It will fight unfair trading practices with all appropriate means”. The Commission explains that tariff liberalisation for industrial and farm products is still important, but it is access to non-EU markets in services and investment, the opening of public procurement markets, better intellectual property protection deals, unrestricted access to raw materials and energy and the elimination of non-tariff barriers by the promotion of international standards that will make the big difference. Moreover, the European Commission is determined to promote global transition to a greener economy through international trade.
De Gucht's new strategy has ten points.
The Commission's top objective is to ensure the conclusion of the Doha Trade Round at the WTO by 2012. It has been in the doldrums since July 2008. The other section of the Commission's main priority is to sign bilateral trade deals with partners in the developed world like Canada and, more importantly, with emerging economies like India, Mercosur (Argentina, Brazil, Paraguay and Uruguay), economies in the ASEAN group (Singapore, Vietnam and Malaysia), Ukraine and countries in the Gulf Cooperation Council.
The European Commission also wants to deepen the EU's trade relations with the EU's strategic partners, like the United States, Japan, China and Russia. While the focus is on removing non-tariff barriers to trade with the US and Japan, opening public procurement markets, better intellectual property protection and access to raw materials are the main goals.
The third aim is to go onto the offensive to boost trade-related job opportunities in the EU and for EU companies. Key Commission initiatives here include drafting legislation to create an EU system to guarantee and increase reciprocal access to public procurement in developed and emerging economies. Public procurement makes up a substantial proportion of any country's economy but access is often unfair or difficult for EU companies, despite the fact that public tender in the EU is the most accessible in the world, explains the Commission, one eye clearly on China.
Another European Commission priority is to conclude talks between the EU Council of Ministers and the European Parliament about the EU's policy on foreign direct investment (fdi) in order to begin negotiating detailed fdi deals with key partners (predominantly Canada, Singapore, India and China).
Fifth aim - to ensure fair trade and ensure that the EU's rights are respected. In this connection, the
Commission wants to supplement its strategy for accessing markets outside the EU, a strategy launched in April 2007, by beefing up the teams already on the ground to identify obstacles to trade and by publishing an annual report on barriers to non-EU trade. In addition to making the finishing touches to the anti-counterfeiting trade agreement (ACTA), the European Commission wants to revise its strategy for ensuring the application of intellectual property rights outside the EU.
Finally, in order to make world trade more inclusive, the Commission will be unveiling draft legislation in the future to reform the EU's system of generalised preferences for developing countries. (E.H./trans.fl)