1 The European Union Trade Policy The European Union Trade Policy May 2009

2 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

3 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

4 EU remains a trading power… 19% of world trade in 2007, 17% (goods), 27% (services) First exporter Second largest importer 2007 leader in foreign direct investment: EU-27 provides €1100 bn (44%) and recieves € 1100 bn (32%) in A MAJOR TRADING POWER

5 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% 6% 4% 3% 2%

6 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% 3% 2%

7 The EU in world trade 2007 The EU in world trade 2007 Share of (current) GDP in World GDP

8 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

9 EU Trade policy – three strands Multilateral WTO – Doha Round Bilateral FTAs / Regional Unilateral GSP, EBA etc 3 DIMENSIONS

10 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 negotiating directives.on legislation and trade agreements, but not on negotiating directives.

11 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

12 The Doha Development Round (DDA) Context Launched in 2001 Broad coverage – goods, agriculture, trade rules, services – but less than originally hoped (“Singapore issues”). Cancun Hong Kong Geneva 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?

13 Reaching beyond the borders… Trade is no longer just about tariffs… Trade is not just about trade… Environment (Copenhagen) Labour Rights (Belarus) Human Rights (Danish cartoons) Standards (Latin America) Licensing practices (China) Domestic taxes (India) TRADE

14 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?

15 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?

16 Who are we negotiating with? Economic Partnership (EPAs) with ACP

17 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: SafeguardsAnti-dumpingAnti-subsidy – Cutting edge of globalisation debate – Green Paper Review exercise