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Page | 1A renewed trade strategy for Europe: Trade, Growth and World Affairs

The European UnionTrade Policy

March 2011


Content

1. The EU in world trade2. EU trade policy – Basic features3. EU trade policy – How it works4. EU trade policy – Competing in the

world5. A renewed strategy for Europe6. Agenda for 2011: Next steps


EU IN WORLD TRADE


1. A few facts about world trade

GLOBALISATIONGLOBALISATIONTECHNOLOGICAL TRADE

DEVELOPMENTS OPENING

IMPLICATIONS• Opportunities for growth, but sometimes adjustment costs

• Need for global governance -> multilateral rules and institutions to ensure level playing field and better distribution of benefits

• Need to reinforce the competitive position of the EU economy


1. A few facts about world tradeEvolution of Word* Trade: 1999-2009

Exports (billions of euro)

6 758

3 259

1 097

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

World (excl. Intra-EU27 trade) Developing Countries EU27 (excl. Intra-EU27 trade)

1999 2004 2009

Imports (billions of euro)

6 965

3 138

1 205

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

World (excl. Intra-EU27 trade) Developing Countries EU27 (excl. Intra-EU27 trade)

1999 2004 2009

Source: Eurostat (Comext, Statistical regime 4), IMF, WTO; * World exports (imports) except Intra-EU27 Trade


1. The EU in world tradeA major trading power…

2008 2009 2008 2009 2008 2009 2008 2009

1. Trade in Goods

Exports 1 309,9 1 097,1 8 241,3 6 757,9 15,9% 16,2% First First

Imports 1 565,0 1 205,3 8 584,4 6 964,9 18,2% 17,3% First First

Balance -255,1 -108,1 - - - - - -Sources: Eurostat (Comext, Statistical Regime 4), WTO updated: 22.02.2011

2. Trade in Commercial Services (Total Services excluding Government services n.i.e.)

Exports 521,4 470,6 1 899,7 1 771,7 27,4% 26,6% First First

Imports 446,2 407,0 1 782,6 1 668,2 25,0% 24,4% First First

Balance 75,2 63,5 - - - - - -Sources: Eurostat (NewCronos), WTO updated: 22.02.2011

3. Foreign Direct Investment - Flows

Outflows 378,3 273,8 1 067,0 784,6 35,5% 34,9% First First

Inflows 165,7 218,7 1 004,7 758,0 16,5% 28,8% Second FirstSources: Eurostat (NewCronos), UNCTAD updated: 22.02.2011

4. Foreign Direct Investment - Stocks

Outwards 3 319,8 3 665,6 9 167,8 10 590,2 36,2% 34,6% First First

Inwards 2 522,3 2 707,2 8 860,7 9 853,8 28,5% 27,5% First FirstSources: Eurostat (NewCronos), UNCTAD updated: 22.02.2011

EU27share / World

(excl. Intra-EU27, %)

C = A / B

Position(in the World)

D

EU27(billions of euro)

A

World Trade(excl. Intra-EU27,billions of euro)

B


1. The EU in world trade

27,5% 22,0% 3,3% 45,8%

34,6% 28,2% 4,9% 30,8%

28,8% 12,3% 1,1% 9,0% 48,8%

34,9% 22,7% 6,8% 4,4% 31,2%

24,4% 14,2% 6,3% 6,8% 48,3%

26,6% 19,2% 5,1% 5,2% 44,0%

17,3% 16,5% 5,7% 10,4% 50,1%

16,2% 11,2% 6,2% 12,7% 53,7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Exports in Goods (2009)

Imports in Goods (2009)

Exports in Commercial Services (2009)

Imports in Commercial Services (2009)

FDI - Outf low s (2009)

FDI - Inf low s (2009)

FDI - Outw ards Stocks (2009)

FDI - Inw ards Stocks (2009)

EU27 United States Japan China Others

A major trading power (2009)

Source: Eurostat (Comext, Statistical regime 4)


1. The EU in world tradeEU27 Trade in goods: Exports by region (2010)

1. NAFTA€ 290.1 billion

13. Andean Community€ 7.9 billion

11. MERCOSUR€ 40.1 billion

2. EFTA€ 150.0 billion

7. ACP€ 68.7 billion

5. CIS€ 123.7 billion

4. China & Hong Kong€ 140.0 billion

6. Japan & Korea€ 71.7billion

9. ASEAN€ 60.6 billion

12. Australia & New Zealand

€ 29.5 billion

8. GCC (6)€ 64.7 billion

3. MED (10)€ 141.9 billion

10. SAARC€ 42.0 billion



1. The EU in world tradeEU27 Trade in goods: Imports by region (2010)

2. NAFTA€ 202.5 billion

13. Andean Community€ 12.2 billion

10. MERCOSUR€ 43.9 billion

4. EFTA€ 166.9 billion

8. ACP€ 64.7 billion

3. CIS€ 195.9 billion

1. China & Hong Kong€ 292.9 billion

5. Japan & Korea€ 103.4 billion

7. ASEAN€ 86.2 billion

12. Australia & New Zealand€ 12.6 billion

11. GCC (6)€ 33.5 billion

6. MED (10)€ 102.4 billion

9. SAARC€ 45.7 billion

Source: Eurostat (NewCronos) – provisional value


1. The EU in world tradeEU27 Foreign Direct Investment: Outflows by main partners(2009)

Switzerland€ 39.6 billion

Russia€ 0.0 billion

Canada€ -0.8 billion

United-States€ 75.1 billion

Brazil€ 7.6 billion

China & Hong Kong

€ 8.2 billion

Japan€ -0.0 billion

India€ 3.1 billion

Source: Eurostat (NewCronos) - provisional value


1. The EU in world tradeEU27 Foreign Direct Investment: Inflows by main partners (2009)

Switzerland€ 26.2 billion

Russia€ 3.3 billion

Canada€ 11.5 billion

United-States€ 97.8 billion

Brazil€ 0.3 billion

China & Hong Kong

€ 1.7 billion

Japan€ -1.2 billion

India€ 0.8 billion

Source: Eurostat (NewCronos) - provisional value


1. The EU in world tradeShare of (current) GDP in World GDP (2009)

28,2%

24,3%

8,7%

8,6%

0% 5% 10% 15% 20% 25% 30% 35%

EU27

United States

Japan

China

%

Source: UN (National Accounts Main Aggregates Database); Share = GDPi / GDPw


1. The EU in world tradeTrade dependence (2009)

16,5%

34,5%

16,5%

19,1%

41,4%

0% 10% 20% 30% 40% 50%

Extra EU27

Intra EU27

United States

Japan

China

%

Sources: Eurostat (Comext, Statistical regime 4), WTO, UN nama Database; Ratio = (Imports+Exports, excluding Energy) / GDP


1. The EU in world tradeEU27 Imports from Developing Countries…

0

200

400

600

800

1 000

Bill

ion

s o

f eu

ro

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Agricultural products Fuels and mining products Manufactures Other products

… and Least Developed Countries

0

5

10

15

20

25

30

Bill

ion

s o

f eu

ro

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010




1. The EU in world tradeEU27 Exports to Developing Countries…

0100200300400500600700

Bill

ion

s o

f eu

ro

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010


… and Least Developed Countries

0

5

10

15

20

25

Bill

ion

s o

f eu

ro

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010




1. EU exports - crisis and recovery

Extra EU Exports (millions of euro)

2005

2008

2009

2010

2011

60 000

70 000

80 000

90 000

100 000

110 000

120 000

130 000

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.



EU TRADE POLICY

BASIC FEATURES


2. EU trade policy - basic features

Being the leading trade region

Strong interest in:

Open markets

Clear regulatory frameworks

Responsibility to:

EU citizens

Rest of the World

Need to reinforce EU

competitiveness on world

markets



Policy concept

A competitive European economy in an open world trade system organised by multilateral rules

Ensure that the European economy is open to the world and competitive in foreign marketsSecure real market access in foreign countries

Support a strong multilateral trading systemMost effective means of managing trade and enforcing rules

Promote European valueson democracy, rule of law, environment, social rights... Enforce sustainable development



Historic development

From tariffs and quotas...

… to “behind the border” issuesThe new shape of trade

policy

Developed from trade liberalisation in goods…

… to services and rules on investment, intellectual

property, public procurement

Evolution reflected in the EU Treaties

Extended the EU trade competence to services and

commercial aspects of intellectual property rights with qualified

majority voting



MultilateralMultilateral Bilateral/Bilateral/RegionalRegional

UnilateralUnilateral

3 3 DIMENSIONSDIMENSIONS



Multilateral

Mostly implemented in the framework of the WTO (= the most effective means of managing trade) aiming at promoting market access with rules, in the context of effective global governance.

Including the promotion of EU values :

• Environmental concerns

• Food safety

• Cultural diversity

• … and how to promote core labour standards ?



The core of the multilateral rule-based system

Unique forum for trade negotiations, rule setting, resolution of disagreements

Objectives

– To boost international economic growth

– To ensure business confidence

Functioning

Consensus = each country on an equal footing

Core principles

– No country may apply quantitative restrictions or similar measures

– Non-discrimination - ‘Most Favoured Nation’ principle

– National Treatment - no country may discriminate between its own products and imported products

– Transparency - all rules affecting trade must be transparent; publication, notification, discussion, trade policy reviews



Enforcement controlled by Dispute Settlement Mechanism

– All WTO members can seek redress

– Dispute Settlement Body (DSB) rulings are binding

– DSB may authorise retaliation

Membership

– Quasi universal: 153 member countries

– Covers 95% of world trade

Regulatory framework

– Trade pillar of global governance

– Rounds and agreements


2. EU trade policy - basic featuresThe DohaThe Doha Development AgendaDevelopment Agenda

A round of trade negotiations launched in 2001

– To pursue market opening

– To strengthen rules, improve global governance

– To integrate developing countries in world trade

Development - a key component of the WTO

round

A development round

– Special and Differential Treatment– Addressing developing countries’ concerns– Aid for Trade

– Special measures for LDCs


2. EU trade policy - basic featuresThe 3 legs of the DDAThe 3 legs of the DDA

Regulatory framework

Improving existing rules (e.g. anti-dumping, geographical indications) and creating new rules (e.g. “trade facilitation”)

Opening markets

– Agricultural goods

– Industrial goods

– Services

EU seeks real new MA

Development

Sustainable development (to respond to concerns of developing countries and civil society)


2. EU trade policy - basic featuresThe Cancún setback (September 2003)The Cancún setback (September 2003)

Meant as a half-way point of the Round, the Ministerial broke up

without decision.

Serious divergences on agriculture and Singapore issues.

New balance of power in the WTO:

• Emergence of vocal developing country groupings (G20, G90)

• Rise of Brazil and India as key members of the WTO

=> New negotiating dynamics: different G progressively to replace “old” Quad


2. EU Trade policy - basic features

After the suspension (July 2006): relaunching the RoundAfter the suspension (July 2006): relaunching the Round• EU remains committed to a successful and reasonably ambitious

outcome to: Create business opportunities and market access, Improve multilateral trade rules, Contribute to development

• All key Members confirmed their commitment to the DDA• No real alternative to the WTO• Objectives: narrow the gaps between Members on agricultural

tariffs, agricultural subsidies and industrial tariffs• In the short-term: to seek agreement on package of development

initiatives and resume technical work in Geneva



Bilateral/regionalIn addition to the WTO's multilateral negotiations, the EU concludes bilateral agreements with third countries and regional areas. Many of the World’s countries potentially linked to the EU by regional trade agreements.

EU policy rationale for bilateral agreements

• Trade expansion and rules-making (WTO+)

• Fostering development and...

• … promoting regional development

Key EU bilateral agreements include:

• Economic Partnership Agreement with the Caribbean and in negotiation with other ACP countries

• Free Trade Agreements with some Balkan countries, the EFTA countries, the Mediterranean countries, Korea (not yet ratified), Chile, Mexico, South Africa...

• Customs Unions with Turkey, Andorra and San Marino

• On-going negotiations with India, Mercosur, Ukraine…



Unilateral

The EU implements unilateral measures as an additional trade policy instrument in the interests of development and/or political stability in line with the Union’s key political priorities:

General System of Preferences (GSP): the classic instrument for fostering development is by granting tariff preferences. Products imported from GSP beneficiary countries enter the EU either duty-free access or with tariff reduction.

“Everything But Arms” initiative (EBA): a special GSP arrangement for the least developed countries. Grants duty-free access to imports of all products from LDCs without any quantitative restrictions (except to arms and munitions).

Asymmetrical preferences e.g. for some Balkan countries and Moldova, with the aim of ensuring peace, stability, freedom and economic prosperity in the region.


2. EU Trade policy - basic featuresThe EU is the most open market for poor countries

176 developing countries and territories are beneficiaries of the EU’s GSP.

In 2008, EU imports benefiting from GSP preferences amounted to €68 billion. Bangladesh leading beneficiary country followed by China, Pakistan, Brazil, Malaysia and India.

The 49 Least Developed Countries (EBA - "Everything But Arms") benefit from duty-free and quota–free access for practically all exports of originating products to the EU for an unlimited period of time.

GSP guidelines for 2006-2015 in place providing stability to traders and economic operators. The scheme is implemented following cycles of 3 years.

Key Facts on the General

System of Preferences (GSP)


2. EU Trade Policy – basic featuresThe GSP system 2006-2015 : simplifies graduation mechanism and reduces the system to 3 schemes

• General scheme: increase of product coverage from 6900 to 7200 (mainly agriculture and fishery sector of interest for developing countries).

• Special scheme for Least Developed Countries: Everything But Arms.

• New special GSP+ for vulnerable countries = duty free on 7200 products if the country meets criteria :

• Ratification and implementation of 27 key international conventions

• “Vulnerable”

• A poorly diversified economy.



The reduced rate

provisions of the GSP

Special incentive arrangement (GSP+) honour beneficiary countries’ efforts to comply with certain internationally agreed environmental and labour standards. Meant to foster sustainable development by providing additional trade preferences. Duty free access for the products covered by the scheme.

The GSP provides tariff reductions without quantitative limitations. Reductions are modulated according to the sensitivity of products. While non-sensitive products enter the EU market duty free, the MFN rate for sensitive products, with some exceptions, is reduced by 3.5 percentage points.


EU TRADE POLICY

HOW IT WORKS


3. EU trade policy - how it works

How it worked before Lisbon Treaty

The negotiating process

The Commission is the negotiator

• On behalf of the 27 Member States

The Council is the decision maker • Mandate = determined by the Council on the basis of a

Commission proposal• The Commission negotiates on the basis of this mandate• The Council approves the result of the negotiation (generally by

qualified majority)

The European Parliament • Is informed by the Commission of trade policy developments• Gives “assent” on major treaty ratifications (covering more than

trade)



How it has changed …

PROPOSALS IN PROPOSALS IN THE EU THE EU

CONSTITUTIONCONSTITUTION

EP plays greater role in trade negotiations

Further extension of qualified majority voting for trade agreements

To extend the scope of trade policy to all foreign direct investment

To increase parliamentary control: co-decision for all autonomous acts of legislative nature, assent for major trade agreements



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 measures created to counter dumping practices, the most frequently encountered trade-distorting practices. Dumping occurs when manufacturers from a non-EU country sell goods in the EU below the sales price in their domestic market, or below the cost of production.

Anti-subsidy measures designed to combat subsidies, which are made available to manufacturers by public authorities and which can also distort trade when they help to reduce production costs or cut the prices of exports to the EU unfairly.

Safeguards: A WTO member may restrict imports of a product temporarily if its domestic industry is seriously injured or threatened with injury caused by a surge in imports.



The trade defence instruments

Since 1995, EC AD/AS activity is stable, with yearly fluctuations

• For the past 10 years, the EU was the n°3 global initiator of new AD/AS investigations

• Top of the league is India (over 400 cases) then the US (over 300) and EU (over 200).

In terms of the principal users by AD/AS measures in force, the EU is a modest user of TDI

Most EU AD/AS cases initiated over the last 10 years were in the iron & steel, chemicals & allied, textiles & electronic products sectors.

Less than 1% of total imports of goods into the EU are covered by AD/AS measures.

The biggest target of AD/AS measures is China. The EU is ranked in 2nd place.

Key Facts on Anti-Dumping (AD) and Anti-subsidy (AS)

activity(as at 31/12/2005)



The offensive trade policy instruments

“Offensive” instruments to open markets and eliminate obstacles to trade...

… across the multilateral, bilateral and unilateral fronts:

The Trade Barriers Regulation (TBR) gives EU industry the opportunity to lodge a complaint with the Commission when encountering trade barriers that restrict their access to third country markets. The TBR is then used to investigate whether there is evidence of violation of international trade rules, resulting in adverse trade effects - this could lead to the initiation of the WTO dispute settlement mechanism.

Market Access Strategy of which the EU’s Market Access Database provides: information about market access conditions in non-EU countries; a systematic way for the Commission to follow up complaints from business about barriers to trade in non-EU countries; and a means of ensuring that our trading partners abide by their international commitments.



The offensive trade policy instruments

Monitoring of third country trade defence measures:

• Ensuring third countries do not misuse the trade defence instruments (anti-dumping, anti-subsidy, safeguard) against EU exporters.

• Given the overall escalating use of these instruments important that there is full compliance with international rules.

• The Commission provides information and advice to all interested parties, identifies individual and systemic infringements of WTO rules by third countries, addresses these issues in the appropriate bilateral or multilateral forum.



The trade policy instruments

Towards a new generation of FTAs: “WTO++”

• Opening markets for trade in goods

• + investments, services, rule-making, standards, non tariff measures


COMPETING IN WORLD TRADE


4. EU trade policy - competing the world

55,6

5,5

48,4

17,9

-70,5

45,6

45,3

-0,7

-29,4

-8,2

140,6

7,6

49,6

26,2

-116,0

99,9

135,9

-4,3

-47,3

-14,6

-150 -100 -50 0 50 100 150 200

Manufactures

Iron and steel

Chemicals

Other semi-manufactures

Office and telecommunicationequipment

Transport equipment

Other machinery

Textiles

Clothing

Other manufactures20002010

* Based on SITC Rev. 3 Nomenclature: Manufactures: 5, 6, 7, 8, excl. 68, excl. 891; Iron and steel: 67; Chemicals: 5; Other semi-manufactures: 61, 62, 63, 64, 66, 69; Office and telecommunication equipment: 75, 76, 776; Transport equipment: 78, 79, 713, 7783; Other machinery: 71, 72, 73, 74, 77, excl. 713, excl. 776, excl. 7783; Textiles: 65; Clothing: 84; Other manufactures: 81, 82, 83, 85, 87, 88, 89, excl. 891

Source: Eurostat (Comext, Statistical regime 4); EU excluding Intra-EU Trade


4. EU trade policy - competing in the world

0

10

20

30

40

50

60

Good performance in high-quality products

Ratio quality products / exports (%)



Market shares trends in world trade…

0%

5%

10%

15%

20%

25%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EU27 USA Japan China

Source: Eurostat (Comext, Statistical regime 4), IMF, WTO; EU27 (excluding Intra-EU27 Trade)



Comparative trade balance trends…

-800

-600

-400

-200

0

200

400

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Bill

ion

s o

f e

uro

EU27 USA Japan China

Source: Eurostat (Comext, Statistical regime 4), IMF, WTO; EU27 (excluding Intra-EU27 Trade)



EU trade not focused enough on rapidly growing markets

% of total exports to more/less rapidly growing markets

Contribution to growth in world imports

1995-2002US Japon EU25

10 most rapidly growing markets

79% 76% 48% 93%

20 least rapidly growing markets

8% 12% 13% -5%Source: Cepii



Globalisation has Globalisation has put trade issues at put trade issues at

the centre of the centre of citizens’ concernscitizens’ concerns Opening markets Opening markets

can provide can provide opportunities…opportunities…

… … if EU economy if EU economy sustains sustains

competitivenesscompetitiveness

… … if harnessed by if harnessed by collective rulescollective rules

Towards fairer trade...Towards fairer trade...


A RENEWED STRATEGY FOR

EUROPE


5. A renewed strategy for Europe

New EU trade strategy adopted 9 November 2010 - Why a new trade policy?

The previous strategy “Global Europe” generally on the right track

BUT

• Europe 2020 called for Trade and Investment to play crucial role in achieving growth objectives

• Changing economic environment • Impact of economic crisis and public opinion



An opinion survey on international trade found that:

Europeans think trade is good for Europe and Europe is good at trade …

65% of Europeans think EU has benefited a lot from international trade

64% of Europeans think that European goods and products are competitive

… but they are less confident about the future

71% of Europeans think that in the coming years, trade will benefit more and more

emerging economies like Brazil, China and India

45% of Europeans think that the EU will be secondary economic power

…and they want trade to deliver jobs and consumer benefits

61% of Europeans believe that the priority for future EU trade policy should be to

create employment

Public expectations on trade policy



• Growth: more than 90% of future growth outside EU Finalising all the ongoing negotiations (DDA, FTAs and

progress on strategic partnerships) would lead by 2020 to a EU GDP level more than 1% higher (150bn per year)

• Jobs: high stakes and expectations 14 million jobs are directly linked to EU ability to export But there is much more at stake: 36 million European jobs,

directly or indirectly, linked to trade 7% wage premium as a result of trade-induced competitiveness

• Consumer welfare: The average EU “variety” consumer gains around €600 per

year from wider trade induced choice

The triple benefits from trade



1. Completion of current negotiating agenda2. Deepen trade relations with other strategic

partners3. Help European businesses access global

markets4. Create opportunities for investors5. More assertive approach to enforcement 6. Share the benefits of the global economy

What does the strategy propose?



Deliver new opportunities for trade and investment through:

• Multilateral negotiations: the Doha Round

• Bilateral agreements

•Concluded: South Korea, Central America, Peru, Colombia

•Ongoing: India, Canada, Mercosur, Ukraine, Singapore, Malaysia, Libya, Euro-Med

Completion of current negotiating agenda



China: • A fast growing market for EU’s exports with big potential • Tackling market access barriers• High Level Economic and Trade Dialogue

Japan:

• Regulatory obstacles

• High Level Group

Russia:

•WTO membership

• Partnership and Cooperation Agreement

US: • EU’s largest investment and

trading partner• Transatlantic Economic

Council

Deepen trade relations with other strategic partners



Cutting tariffs is still important but majority of trade barriers now lie

elsewhere:

• Improved market access for services and investment

• Opening up public procurement

• Better protection of intellectual property

• Unrestricted supply of raw materials and energy

• Overcoming regulatory barriers

Deepen trade relations with other strategic partners



• Mutual supportiveness of internal and external policies for market opening

• Public procurement in partner markets

• Market Access Strategy

• SMEs access to global markets

Help European businesses access global markets



Lisbon Treaty

EU has powers to negotiate future deals on foreign investment in order to improve conditions for investors

Foreign investment = engine for job creation

Start on comprehensive investment agreements with: India, Canada, Singapore, China, Russia

Creating opportunities for investors



Trade rules to be fairly applied to all

• Use all appropriate means to stand up for our rights

Anti-dumping rules

Dispute settlement mechanisms

• Effective enforcement of trade agreements

• Act against protectionism

More assertive approach to enforcement



Not just about opening markets but helping people and countries benefit

• Inclusiveness - European Globalisation adjustment Fund

• Trade-development agenda Renewal of Generalised System of Preferences Communication on trade and Development Ongoing Economic Partnership Agreements

• Social and environmental issues

Sharing the benefits of the global economy


AGENDA FOR 2011: THE NEXT STEPS


6. Agenda for 2011: The next steps

We have already initiated much of this, and in 2011 will:

1. work for an early deal in the Doha round

2. make significant progress with ongoing bilateral trade negotiations

3. initiate legislation for an EU instrument to increase symmetry in access

to public procurement markets

4. conclude the debate on a new investment policy for the EU

5. present our views on how to develop mutual supportiveness of internal

and external market opening



6. adopt a Communication on trade and development and initiate

legislation to reform the Generalised System of Preferences

7. adopt a Green Paper seeking to improve our export control system

8. present a Communication on support measures to help SMEs

9. review our strategy on the enforcement of IPR

10. produce a report on trade and investment barriers



• The EC actively monitoring protectionism as part of a coordinated international response through regular reports

E.g. more than 200 trade restrictive measures in 32 partners were reported• classical border measures (such as tariff increases or licensing

requirements)• behind the border measures (such as certification schemes or buy

national policies)

• The bulk of new protectionist measures have been imposed by a limited number of EU trading partners and were concentrated in a few types of measures

• Latest effort: TIBR (Trade and Investment Barrier Report) 2011, published 10 March Was presented to the European Council on 24-25 March

Crisis-led protectionism: European views



• the impact on the EU exports is greater than that estimated for world trade: “classical” border measures alone (mostly tariffs)

target around 1.7% of EU merchandise exports

• Russia was by far the country whose tariff measures could hurt EU export interests the most: Russian measures alone could affect around 1.25%

of the total value of EU exports

Impact of border protectionism on overall EU exports: the easy part…



• New Trade Strategy key message: more assertiveness, enforcement, reciprocity and mutual benefits

• Significant non-tariff barriers in strategic partners China, India, Japan, Mercosur, Russia, US

• Main issues: Government procurement IPR enforcement Access to raw materials Services Investment TBT/SPS

TIBR 2011 - estimating « murky protectionism »: the difficult part…



• EU exports potentially affected in the range of 100bn euros

• Raw materials (excluding energy) – some 6bn of EU imports

• « Lost trade » not possible to quantify but magnitude important

• Strategic partners barriers require closer interplay between political and operational levels China: HED, US:TEC, Russia

• Beyond numbers and EU negative economic impact, efforts to reduce/remove barriers abroad provide « public goods » and have systemic value

TIBR 2011: Key messages


Thank you for your attention !

Find the Communication and accompanying analysis:

http://ec.europa.eu/trade/trade-growth-and-jobs/

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