Brussels, 14/03/2013 (Agence Europe) - The Commission's progress toward removing third country trade barriers is mixed. The BRIC countries especially are in the Commission's sights.
Efforts made by the Europe Commission last year to fight protectionism are now bearing fruit and could create better trade and investment conditions for EU companies. And yet the struggle against protectionism continues. China, India, Mercosur (Argentina, Brazil, Paraguay and Uruguay) and Russia do not escape criticism in the third edition of the annual report on trade and investment barriers presented by the Commission on Thursday 13 March.
In its report, the Commission cites the EU victory against China in the WTO case on access to raw materials (DS 398), with the WTO having confirmed its verdict in January 2012 (see EUROPE 10542). The Commission also highlights progress made by EU trade diplomacy via its global network of delegations for the opening of the Indian market to EU tyres and steel products and telecommunications equipment. It also welcomes the positive results of bilateral discussions with Japan to make it easier for EU producers to gain access to the Japanese market for alcoholic beverages, beef meat and processed foods. Finally, the report underlines the successful but bitter bilateral talks on Russia's accession to the WTO last year, which entailed a considerable fall in Russian import duties.
On the whole, however, many of the 25 obstacles to trade identified last year by the Commission are still in place. Not only several longstanding obstacles have still not been raised, but a number of new measures that distort trade were taken in 2012 by the EU's strategic partners which, including the United States and BRIC, account for 40% of exports.
The Commission denounces the fact that obstacles to foreign direct investment in China persist. Beijing, moreover, has introduced additional restrictions in certain industrial sectors and raised levels of uncertainty in order to deter potential investors.
India is criticised for its refusal to withdraw the unjustified regulatory measures that keep its agri-food market closed to imports. Also, trade in electronic products and renewable energy technology is harmed by the protectionist attitude of the Indian authorities
Protectionism is also gaining ground in Argentina and Brazil, where no improvement has been noted with regard to measures that have an impact on imports and exports, public procurement procedures, reinsurance services or maritime transport in those countries. The new tax regime in Brazil increasingly favours domestic producers against the interest of European companies. The Commission also warns Brazil of the dangers of the increase it is considering in customs duties on 100 tariff lines up to the limit set by the WTO.
Finally, Russia is pointed at as having adopted a series of protectionist measures, most of which are not in line with WTO obligations and that only add to the longstanding, unresolved problems on market access. These include discriminatory recycling fees for imported vehicles and various technical and sanitary barriers to trade.
The report on trade barriers will be presented to the European Council on 14 and 15 March. (EH/transl.jl)