Brussels, 25/06/2015 (Agence Europe) - On Tuesday 23 June the Foreign Trade Association (FTA), which represents over 1,500 European importers, retailers and brand companies, called for an EU trade policy adapted to today's global value chains. The FTA says the policy should focus on ambitious trade negotiations at the WTO and bilateral level, and on rules and policies that facilitate trade.
“EU trade policies have not kept pace with the rapid development of commerce worldwide and the increased complexity of global supply chains, hindering businesses' growth prospects and the EU's competitiveness. Today's global value chains demand a flexible and modern trade policy that pursues ambitious goals”, the FTA states in its roadmap for EU trade policy for 2014-2019, which was unveiled on 23 June - European Trade Policy Day.
On the same day, European Commissioner for Trade Cecilia Malmström unveiled the main areas of her communication on a revised strategy for the EU's trade policy, which is promised for the autumn (see EUROPE 11341).
In the FTA's view, the EU should firstly continue its efforts and “show leadership” in order to conclude the WTO Doha round and commit to a new round with an updated agenda. “The highest level of trade policy harmonisation can only be achieved through the WTO. Reaching a compromise is paramount at this point, even if this means achieving less ambitious goals, since this will clear the path to move beyond Doha”, the FTA states.
Secondly, the EU should continue to promote the negotiation of bilateral and regional trade agreements, with a special focus on Asia, as this is the main sourcing region for European retailers and the one with the greatest expansion and investment, the FTA states. The FTA calls for the swift conclusion of an agreement with Vietnam, and for delays to be avoided such as those that have slowed the negotiation down with India for the last two years.
The FTA says that at the same time, the EU should ensure a level playing field for all actors and fight the adoption of protectionist measures. The FTA criticises the “punitive duties” recently imposed by Turkey on goods exported to the EU, in breach of obligations laid down in the Union Customs Code (UCC). “Such protectionist policies impact very negatively on European retailers and clearly show that we need, in every trade agreement with third countries, a strong dispute settlement mechanism - beyond the investor-state dispute settlement (ISDS) - that protects companies and provides an effective instrument to assert their rights”, the FTA states.
The FTA therefore calls on the Commission to shape a trade agenda “that truly enables companies to face 21st Century challenges and maximise the opportunities to enhance economic growth and social wellbeing”. (Emmanuel Hagry)