1. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs The European Union Trade Policy March 2011

2. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs Content 1.The EU in world trade 2.EU trade policy – Basic features 3.EU trade policy – How it works 4.EU trade policy – Competing in the world 5.A renewed strategy for Europe 6.Agenda for 2011: Next steps

3. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs EU IN WORLD TRADE

4. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. A few facts about world trade GLOBALISATION TECHNOLOGICALTRADE DEVELOPMENTSOPENING 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

5. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. A few facts about world trade Evolution of Word* Trade: 1999-2009 Source: Eurostat (Comext, Statistical regime 4), IMF, WTO; * World exports (imports) except Intra-EU27 Trade

6. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade A major trading power…

7. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade A major trading power (2009) Source: Eurostat (Comext, Statistical regime 4)

8. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade EU27 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 Source: Eurostat (Comext, Statistical regime 4)

9. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade EU27 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

10. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade EU27 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

11. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade EU27 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

12. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade Share of (current) GDP in World GDP (2009) Source: UN (National Accounts Main Aggregates Database); Share = GDPi / GDPw

13. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade Trade dependence (2009) Sources: Eurostat (Comext, Statistical regime 4), WTO, UN nama Database; Ratio = (Imports+Exports, excluding Energy) / GDP

14. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade EU27 Imports from Developing Countries… … and Least Developed Countries Source: Eurostat (Comext, Statistical regime 4)

15. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. The EU in world trade EU27 Exports to Developing Countries… … and Least Developed Countries Source: Eurostat (Comext, Statistical regime 4)

16. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 1. EU exports - crisis and recovery

17. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs EU TRADE POLICY BASIC FEATURES

18. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 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

19. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features 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 markets Secure real market access in foreign countries Support a strong multilateral trading system Most effective means of managing trade and enforcing rules Promote European values on democracy, rule of law, environment, social rights... Enforce sustainable development

20. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features Historic development From tariffs and quotas... … to “behind the border” issues The 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

21. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features Multilateral Bilateral/Regional Unilateral 3 DIMENSIONS

22. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features 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 ?

23. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features 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

24. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features 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

25. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features The Doha Development 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

26. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features The 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)

27. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU trade policy - basic features 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

28. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU Trade policy - basic features After 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

29. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU Trade policy - basic features Bilateral/regional In 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…

30. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU Trade policy - basic features 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.

31. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU Trade policy - basic features The 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)

32. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU Trade Policy – basic features The 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.

33. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 2. EU Trade policy - basic features 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.

34. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs EU TRADE POLICY HOW IT WORKS

35. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 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)

36. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 3. EU trade policy - how it works How it has changed … PROPOSALS IN THE EU CONSTITUTION 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

37. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 3. EU trade policy - how it works 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-dumpingAnti-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-subsidyAnti-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. SafeguardsSafeguards: 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.

38. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 3. EU trade policy - how it works 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 2 nd place. Key Facts on Anti- Dumping (AD) and Anti-subsidy (AS) activity (as at 31/12/2005)

39. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 3. EU trade policy - how it works 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 StrategyMarket 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.

40. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 3. EU trade policy - how it works 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.

41. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 3. EU trade policy - how it works 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

42. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs COMPETING IN WORLD TRADE

43. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 4. EU trade policy - competing the world * 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

44. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 4. EU trade policy - competing in the world Good performance in high-quality products Ratio quality products / exports (%)

45. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 4. EU trade policy - competing in the world Market shares trends in world trade… Source: Eurostat (Comext, Statistical regime 4), IMF, WTO; EU27 (excluding Intra-EU27 Trade)

46. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 4. EU trade policy - competing in the world Comparative trade balance trends… Source: Eurostat (Comext, Statistical regime 4), IMF, WTO; EU27 (excluding Intra-EU27 Trade)

47. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 4. EU trade policy - competing in the world EU trade not focused enough on rapidly growing markets % of total exports to more/less rapidly growing markets Contribution to growth in world imports 1995-2002 USJaponEU25 10 most rapidly growing markets 79%76%48%93% 20 least rapidly growing markets 8%12%13%-5% Source: Cepii

48. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 4. EU trade policy - competing in the world Globalisation has put trade issues at the centre of citizens’ concerns Opening markets can provide opportunities… … if EU economy sustains competitiveness … if harnessed by collective rules Towards fairer trade...

49. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs A RENEWED STRATEGY FOR EUROPE

50. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 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

51. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

52. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

53. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 1.Completion of current negotiating agenda 2.Deepen trade relations with other strategic partners 3.Help European businesses access global markets 4.Create opportunities for investors 5.More assertive approach to enforcement 6.Share the benefits of the global economy What does the strategy propose?

54. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

55. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

56. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

57. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

58. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

59. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

60. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 5. A renewed strategy for Europe 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

61. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs AGENDA FOR 2011: THE NEXT STEPS

62. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 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

63. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 6. Agenda for 2011: The next steps 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

64. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 6. Agenda for 2011: The next steps 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

65. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 6. Agenda for 2011: The next steps 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…

66. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 6. Agenda for 2011: The next steps 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…

67. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs 6. Agenda for 2011: The next steps 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

68. Page | ‹#› A renewed trade strategy for Europe: Trade, Growth and World Affairs Thank you for your attention ! Find the Communication and accompanying analysis: http://ec.europa.eu/trade/trade-growth-and-jobs/