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Europe Daily Bulletin No. 9822
Contents Publication in full By article 15 / 35
GENERAL NEWS / (eu) ep/trade policy

Czech presidency calls for free trade

Brussels, 20/01/2009 (Agence Europe) - On Tuesday 20 January, the Czech minister for industry, Martin Riman went to the European Parliament's international trade committee (chaired by Helmuth Markov GUE/NGL) to present the trade policy priorities of the Czech presidency. Riman's presentation was in clear contrast to that of his French predecessor, Anne Marie Idrac, and formed part of Prague's strong commitment to free trade. Convinced of the need to guarantee open markets and a trade policy that helps to soften the impact of the crisis and provide solutions to it, Riman declared that, “in the context of the current economic crisis, lessons need to be drawn from the past: closing in on ourselves and autarky only made the crisis of the 1930s worse. Politicians before us made fundamental mistakes. We must not repeat them”. In an introductory speech on the fight against protectionism and the introduction of new trade barriers, particularly non-tariff barriers, the Czech minister explained that the number one priority of his government is, “to push forward today with first and foremost open and liberal policies, which are built on compliance with clear regulation of world trade”.

Multilaterally, the Czech presidency is determined to reactivate the Doha Round and push it forward at the same time as the technical work carried out in Geneva and the political ructions, in the hope that the 135 country members of the WTO reach an agreement on the modalities for the liberalisation of trade in agriculture and NAMA during a ministerial in Geneva before the end of its remit. The next summit of the G20 economic powers is on 2 April in London and is expected to provide a new boost to the talks, which have been blocked since the July 2008 ministerial. Although it will have difficulty in persuading players ,such as China and India, and also France, to made further efforts, the Czech Presidency will try to push new US President Barack Obama, who seemed more inclined to protectionism when he was a candidate for the White House, and also the future Indian government in this direction. On the multilateral level, too, Prague is seeking to make a contribution to finalising Russia's WTO accession negotiations, where timber export tariffs are still proving a stumbling block. It also wants to take forwards Montenegro's WTO talks, which are at a very advanced stage. Lastly, in the light of the gas trade dispute between Russia and Ukraine, the Czech Presidency wants energy trade and transit to be more of an issue at the WTO.

On the bilateral level, the Czech Presidency has made the search for new trade opportunities and the removal of non-tariff barriers its main priorities. To give a boost to transatlantic relations, it intends to relaunch the Transatlantic Economic Council (TEC), which is trying to bring about regulatory convergence between the EU and the United States, but seems to be treading water less than two years after its creation, with no tangible results. Strengthening relations with Canada is also a priority of the Czech Presidency which wants over the course of the next six months wants to round off discussions begun last October on an ambitious economic and trade partnership with Ottawa. Concluding negotiations on a bilateral free trade agreement (FTA) with South Korea, begun in May 2007 but with the chapters on motor cars and rules of origin being a stumbling block, is, of course, one of Prague's great hopes for success. While the Presidency wants to take forward negotiations on a partnership and cooperation agreement with China, it expects difficult FTA negotiations with India and wants to encourage a decision on a new FTA negotiating strategy with the ASEAN bloc. The continuation of talks on association agreements with Central America and the Andean Community, as well as on economic partnership agreements (EPAs) with the ACP countries, also appears on the agenda of the Czech EU Presidency, which hopes, moreover, to take forward negotiations for an EPA with Ukraine, for which renewed credibility will be required.

On the other hand, the Czech Presidency does not plan to reopen the dossier on EU trade defence instruments, which has largely divided member states in a review process initiated by the former trade commissioner, Peter Mandelson, which he had to renounce. Mr Riman, who is not a supporter of anti-dumping measures, considers them “technical tools to correct in the event of unfair trade and not as political tools”. He takes the view that it is not necessary to amend them to take the different economic interests at stake into account. “If we transform anti-dumping measures into political instruments, this can be dangerous as there will be less transparency”, he said, also considering that the current economic crisis must not be used as an occasion to strengthen protectionism.

Finally, the Czech Presidency intends to spare no effort to implement the revised market access strategy aimed at improving cooperation with the Commission, member states and business in order to detect and eliminate disguised trade barriers and strengthen the protection of intellectual property rights, including via the Anti-Counterfeiting Trade Agreement (ACTA). (E.H./transl.rh/rt/jl)

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