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Europe Daily Bulletin No. 9579
GENERAL NEWS / (eu) eu/trade

Commission sets priorities for first half of 2008

Brussels, 14/01/2008 (Agence Europe) - EUROPE has had sight of a note, sent on 11 January the committee of member states' trade experts (Article 133 Committee), in which the European Commission sets out the priorities of the EU trade policy under Slovenian presidency in the first half of 2008.

On the multilateral level, the completion of Doha Round negotiations at the WTO remains the number one priority. Revised compromise texts on the modalities in agriculture and manufactured goods (NAMA) are expected at the start of February, ahead of a ministerial meeting in April. The accessions of Montenegro, Russia and Ukraine to the WTO are also among the major issues. The issue of export tariffs remains the major obstacle to Ukraine's accession, while differentiated tariffs on the export of wood and rail duties remain the principle obstacles to Russia's. Despite the slowness of the process, Moscow hopes to finalise the technical work in the spring with a view to accession this summer. Montenegro intends to finalise talks by the end of June, and to accede in the autumn. The largest trade dispute cases to be arbitrated by the WTO in the first six months of the year are on bananas (complaint brought by Ecuador), the Airbus-Boeing complaint and counter complaint (DS 316 and DS 353), GMOs, motor car spare parts opposing the EU and China (provisional report expected on 13 February) and the bans by Belgium and the Netherlands on trade in seal-based products. With regard to aid for trade, the Commission and Council will continue to work on the Community strategy launched in October 2007. The 12 UNCTAD conference will be held in Accra (Ghana) from 20-25 April.

At a bilateral level, the Commission will continue its discussions for bilateral free trade agreements (FTA) with several countries or groups of third countries. It is planning to conclude discussions with South Korea by the end of June if the parties resolve the most difficult questions: “tariff barriers and non-tariff barriers, rules of origin”). The 6th round-table discussion will be on 28 January-1 February in Seoul. Two or three negotiation sessions are planned with India in the first half of the year. ASEAN negotiations: the Commission intends to continue its “block to block” approach but wants to at the same time begin an evaluation of what the bilateral parties have for an FTA and the level of each country in the Asian block's ambition. Two round-tables are planned in the first half of the year. The Commission has also planned on two new discussion sessions with the Andean Community (in April in Lima or Quito and in June in Brussels). It has also programmed three discussion sessions with Central America (25-29 February in Brussels, in Salvador in April and in Brussels in June). In negotiations with the Gulf Cooperation Council, several important questions need resolving to ensure preferential arrangements: i) adopt a common language on export tariffs and quotas; ii) finalise agreements on services, investment and public procurement; iii) finalise an agreement( on access to the market in goods; iv) find an agreement on chapters on competition and Intellectual Property Rights (IPR). Negotiations with Mercosur remain tied to progress in Doha negotiations. Discussions at a technical level are expected to resume in 2008 but it is at this stage difficult to predict a date for a resumption in formal negotiations. As part of the Euromed relations framework, the Commission intends to launch bilateral negotiations on services and investment and conclude in 2008 negotiations on the implementation of a dispute settlement mechanism, liberalisation of agricultural trade and harmonisation of industrial standards. Western Balkans, the Commission is working towards the signing of stabilisation and association agreements with Bosnia-Herzegovina and Serbia. Economic partnership agreements between the EU and 78 ACP countries will be necessary in the near future: i) Council decisions to authorise the signing of all provisional agreements concluded in 2007 or at the beginning of 2008; ii) proposals to enable all regions or countries that missed the deadline to be added to the regulation on market access once a complete agreement has been concluded; iii) Council decision authorising the signing of any complete EPA; European Parliament's consent on complete EPA. In the chapter on relations with China, the Commission will continue to tackle the most worrying issues for the EU (IPR, trade deficit and market access). The high level dialogue on the economic trade issues decided on at the last EU-China Summit should be started before March 2008. Also scheduled are discussions on steel, product safety, market economy status, the system of double monitoring of textile exports and consultations as part of the US complaint against China on IPR. In terms of transatlantic relations, work will be done on a number of trade dispute cases (hormone-treated beef, GMOs, the Byrd amendment, bananas, Airbus-Boeing, etc.) and several other areas of friction which could have an impact on bilateral relations (US exports of poultry treated with chlorinated water, and 100% scanning of containers). They will also focus on a joint study on how to reduce non-tariff and regulatory barriers (results expected in 2009). Discussions are planned with Canada on the study assessing the costs and advantages of an enhanced economic partnership (outcome expected at the end of May 2008).

In a section devoted to the creation of an environment conducive to trade, the Commission plans to take forward several initiatives in the Global Europe strategy, which was launched in October 2006: third country market access strategy adopted in spring 2007 (a conference is to be organised by the Commission and the Slovenian Presidency in Brussels in the spring); review of trade defence instruments; IPR; updating of the generalised preferences scheme. The Commission and the Council will draw up a new regulation to come into effect on 1 January 2009 to cover the period from 2009 to 2011. The final discussion on the list of countries eligible for the GSP+ will take place in the second half of the year; the reform of preferential rules of origin. In the first half of the year, the Commission is awaiting the Council's opinion on the basis of its draft regulation adopted on 29 October; the review of checks on exports of dual purpose goods and technology. The Commission is awaiting the opinion of the Article 133 Committee on its proposed review of January 2007; the review of the WTO agreement on public procurement. The EU's complete revised offer requires convergence of requests by member states seeking to rebalance the GPQ (in particular the issue of SME access to public contracts). (E.H.)

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