Transcript Slide 1

The European Union
Trade Policy
May 2009
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AGENDA
1. Today’s Context
2. The EU in world trade
3. EU Trade Policy
- Basic features
- How it works
4. Doha Trade Round
5. Bilateral agreements
6. Trade Policy Tools
Conclusion
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CONTEXT
• Globalisation and economic downturn
– Global growth : 0.5% (IMF)
– Global trade to fall : 2.8% (IMF)
– EU GDP to fall -2.5%
– EU exports down 3.5% (Nov) / Japan 35%
• Collapse in trade finance
• Trade is part of the solution?
– G20 commitment
– WTO monitoring
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EU remains a trading power…
19% of world trade in 2007,
17% (goods),
27% (services)
A MAJOR
First exporter
Second largest
importer
TRADING POWER
2007 leader in foreign direct
investment:
EU-27 provides €1100 bn (44%)
and recieves € 1100 bn (32%) in
2007.
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The EU in world trade –
10 major EU export partners (2008)
1. USA
2. Russia
3. Switzerland
4. China
5. Turkey
6. Norway
7. Japan
8. United Arab Emirates
9. India
10. Brazil
19%
8%
8%
6%
4%
3%
3%
2%
2%
2%
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The EU in world trade –
10 major EU import partners (2008)
1. China
2. USA
3. Russia
4. Norway
5. Switzerland
6. Japan
7. Turkey
8. Korea
9. Brazil
10. Libya
16%
12%
11%
6%
5%
5%
3%
3%
2%
2%
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The EU in world trade 2007
Share of (current) GDP in World GDP
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EU Trade policy - basic features
Being the leading trade region
Strong interest in:
Responsibility to:
 Open markets
 EU citizens
 Clear regulatory frameworks
 Rest of the World
Need to reinforce EU
competitiveness on world
markets
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EU Trade policy – three strands
Bilateral
Multilateral
FTAs / Regional
WTO – Doha
Round
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DIMENSIONS
Unilateral
GSP, EBA etc
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EU Trade policy - How we negotiate
The Commission negotiates
• On behalf of the 27 Member States – for certain areas MS are
present e.g. establishment, e.g. criminal sanctions
• Regular reporting to Council and the EP
• Full preparation of prior to negotiations…
The Council decides:
• Directives for negotiations
• Follows the negotiation
process
• Councils approve the
results of the negotiation
(generally by qualified
majority) – sometimes MS
ratify as well
Today, the European
Parliament
• Is informed by the
Commission
• Gives “assent” on major
treaty ratifications (covering
more than trade)
Tomorrow the EP co-decides
• on legislation and trade
agreements, but not on
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negotiating directives.
TRADE POLICY AGENDA :
GLOBAL EUROPE
– Global Trade Talks (Doha Development Round)
– A new relationship with developing countries
(particularly ACP)
– Bilateral Trade Agreements
• Korea, ASEAN, India, Central America, Andean
Community, Ukraine, Euromed,
• Mercusor, Gulf States, Libya, China
– Strategic partners
• Russia, China, Brazil
– Defending European interests
– Promoting European values
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The Doha Development Round (DDA)
Context
• Launched in 2001
• Broad coverage – goods, agriculture, trade rules, services – but less
than originally hoped (“Singapore issues”). Cancun 2003. Hong Kong
2005. Geneva 2006. Geneva 2008 (July)….2009?
• Who negotiates?
The big questions
• Where are we today?
• Will this make a difference for development?
• Will this be a good deal?
• And will we get there in the end?
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Reaching beyond the borders…
• Trade is no longer just about tariffs…
TRADE
Standards (Latin America)
Licensing practices (China)
Domestic taxes (India)
• Trade is not just about trade…
TRADE
Environment (Copenhagen)
Labour Rights (Belarus)
Human Rights (Danish cartoons)
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Removing trade barriers for EU exporters
Market Access Strategy
Context
•
•
•
•
Creating a new opportunities for EU exporters
Market Access Partnership launched in 2007 as a cooperation
between the Commission, member states and business –
local expertise make trade barriers easier to identify and
adress.
Market Access teams created
Market Access Database (MADB) as an important tool to
record barriers under examination in EU trading partners.
Any success stories?
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Bilateral relations (FTAs)
Context
• Globally more than 200 FTAs
– (36% of global trade).
• FTAs top up what can be done in WTO.
• ‘extended’ regionalism
The big questions
• Impact on the WTO system?
• Spaghetti bowl effect?
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Who are we negotiating with?
Economic Partnership (EPAs) with ACP
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EU Trade policy – standing up for
European Interests
The trade defence instruments
“Defensive” instruments to ensure fair trade and defend the
interests of European companies…
... have been designed in line with specific WTO agreements
recognising the right of members to counter unfair practices:
Anti-dumping
Anti-subsidy
Safeguards
– Cutting edge of globalisation debate
– Green Paper Review exercise 2006-2007
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