Brussels, 01/02/2013 (Agence Europe) - Sure that the EU's ambitious trade agenda can stimulate 2% growth and create 2 million jobs, the European Council will reaffirm its commitment to a reciprocal opening of the markets. Without abandoning the multilateral, the EU is focusing on the bilateral.
The conclusions of the next summit of European heads of state and government in Brussels on 7-8 February - which will essentially be dedicated to negotiations for the 2014-2020 European budget - include a large section on trade policy. In search of new sources of growth in order to exit the worst economic and financial crisis since the 1930s, the EU is confident that the increased trade with its third country partners can make it much more profitable than turning in on itself. The European leaders are, therefore, due next week to reaffirm Europe's commitment to fighting against protectionist temptations and to supporting free trade in goods, services and investment.
In order to take advantage of the gains that an ambitious medium-term programme could procure (2% economic growth and the creation of 2 million jobs), the EU “must promote free, fair and open trade” - but without being naïve - “asserting its interests, in a spirit of reciprocity and mutual benefit, especially in relation to the world's largest economies”, state the draft conclusions of the summit, of which EUROPE has obtained a copy. Reaffirming its commitment to a rules-based multilateral trading system, the EU wants to continue “to fight all forms of protectionism”, especially non-tariff trade barriers which - as the WTO pointed out in summer 2012 - have reached an “alarming level” worldwide. The improvement of market access, the promotion of appropriate investment conditions, the respect of intellectual property rights and the opening of public procurement markets remain the EU's demands vis-à-vis its trading partners. The European leaders are, the same week, expected to call for discussions currently under way - on the legislative proposal for access to third countries' public procurement markets - to be accelerated.
Despite multilateral negotiations being blocked since 2008, the EU remains “committed” to the successful conclusion of the WTO's Doha round negotiations, which were launched in 2001. “In the short term, it is important for progress to be made towards a multilateral agreement on trade facilitation, as well as other aspects of the Doha Development Agenda” at the next WTO ministerial conference in Bali in December, the European leaders' draft conclusions state. The leaders are keeping up pressure on the large emerging countries, from which they expect “efforts”. The EU furthermore says that it is ready to “open a reflection” on the post-Bali WTO agenda, which “should be tailored to reflect better the changing global geo-economic landscape”, state the conclusions. The major loser from the failure of Doha, the liberalisation of the services sector remains a key EU objective, and the leaders say of this that they “look forward” to the forthcoming plurilateral negotiations with around 20 countries - including those of the OECD (see EUROPE 10768). The EU, which is working for a more efficient use of resources and its transition towards a greener economy, also waits “further progress” on an agreement on liberalisation of environmental goods and services, the draft text underlines.
Although it wants a multilateral pillar system, Europe nevertheless recognises that “its immediate focus is on developing its bilateral trade relations” with its third country partners, via agreements which will enable “further progress” at the multilateral level, the conclusions of the European Council will underline. The leaders reaffirm their enthusiasm at the prospect of launching free trade negotiations with the United States, after the preparatory work has finished (European Commissioner for Trade Karel De Gucht will meet his American counterpart Ron Kirk in Washington on 5 February - see EUROPE 10774), and also with Japan “in the near future”. The European leaders will additionally welcome the progress of the free trade negotiations with Canada which will soon be concluded (De Gucht is travelling to Ottawa on 6-7 February for the last needed political decisions - see EUROPE 10775). Further East, the recent agreement with Singapore should stimulate the deepening of trade relations with other trading partners from the ASEAN bloc. The European Council will reformulate the desire for the EU and China to negotiate - as a priority for the short term - an agreement on investment, procurement and intellectual property rights. Slowed down since summer 2012 (see EUROPE 10774), the free trade negotiations with India “require further efforts”. Lastly, the European Council will welcome the recent commitment of the EU and Mercosur to exchange market access offers by the autumn (see EUROPE 10773) and will call for the opening of free trade negotiations with Morocco, the development of a renewed partnership with the ACP countries through conclusion of the economic partnership agreements, and the implementation by Russia of its liberalisation agreements arising from its WTO membership. (EH/transl.fl)