The European Union Trade Policy 2011

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Content

1. Today’s Context

2. The EU in World Trade

3. EU Trade Policy

4. Multilateral Dimension

5. Bilateral Agreements

6. Unilateral Dimension

Today’s Context

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Context

• GlobalisationIncluding fragmentation of value chains

• Emergence of new economic powerhouses

China, India, Brazil

• Economic downturnTrade is part of the solution

The EU in World Trade

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EU remains a trading power…

16.8 % of world trade in 2010

First exporter

16.2% (2010)

Largest importer

17,3% (2010)

2010 leader in foreign direct investment: EU-27 receives € 218.7 bn in 2010

A MAJOR

TRADING POWER

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Rank. EU Exports to Mio euro % world

1 USA 242.175 18,0

2 China 113.106 8,4

3 Switzerland 105.435 7,8

4 Russia 86.577 6,4

5 Turkey 61.206 4,5

6 Japan 43.726 3,2

7 Norway 41.756 3,1

8 India 34.791 2,6

9 Brazil 31.301 2,3

10 South Korea 27.967 2,1

The EU in world trade10 major EU export partners (2010)

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The EU in world trade10 major EU import partners (2010)

Rank. EU Imports from Mio euro % world

1 China 281.860 18,9

2 USA 169.310 11,4

3 Russia 154.899 10,4

4 Switzerland 84.126 5,6

5 Norway 78.997 5,3

6 Japan 64.832 4,3

7 Turkey 42.005 2,8

8 South Korea 38.597 2,6

9 India 32.987 2,2

10 Brazil 32.272 2,2

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The EU in world tradeShare of EU27 GDP in World GDP

EU Trade Policy

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EU Trade policy Basic features

Being the leading trade region

Strong interest in:

Open markets

Clear regulatory frameworks

Responsibility towards:

EU citizens

Rest of the World

Need to reinforce EU

competitiveness on

world markets

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EU Trade policy Three strands

Dimensions of trade policy

• Multilateral

• Bilateral

• Unilateral

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EU Trade policyHow we negotiate

The Commission negotiates• On behalf of the 27 Member States • Regular reporting to the Council and the EP

Civil Society and Public Consultations

The EP co-decides • EP co-decides on trade legislations (except negotiating directives) • EP gives consent on agreements

The Council co-decides• Directives for negotiations• Follows the negotiation process• Council approve the results of the negotiation (generally by qualified majority) – sometimes MS ratify as well

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Trade Policy Agenda Trade, Growth and World Affairs

Pursue active negotiating agenda• Multilateral Trade Agreements (Doha Development Round)• Bilateral Trade Agreements (Korea, ASEAN, India, Canada,

Central America, Andean Community, Ukraine, Euromed, Mercusor, Gulf States, Libya, China)

Deepen relations with strategic partners • USA, China, Russia, Japan, India, Brazil

Enforce EU rights, tackling barriers

Multilateral DimensionDoha Development Agenda (DDA)

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The Doha Development Round

Context• Launched in 2001

• Broad coverage

• 2011 window of opportunity for the DDA?

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…Standards

Licensing practices

Domestic taxes

Trade is not just about trade…Environment

Labour Rights

Human Rights

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Removing trade barriers for EU exporters

• Creating new opportunities for EU exporters• Market Access Partnership - cooperation between the

Commission, Member States and businesses – local expertise make trade barriers easier to identify and address

• Market Access teams created• Market Access Database (MADB) as an important tool to

record barriers under examination in EU trading partners• Export Helpdesk

Market Access Strategy

Bilateral Agreements

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Bilateral relations (FTAs)

Context

• Globally more than 200 FTAs

• Covering more than 35% of global trade

• FTAs top up what can be done in WTO.

• ‘Extended’ regionalism

FTA partners and trade in goods

Unilateral Dimension

Unilateral dimension

• Generalised System of Preferences (GSP)

Everything But Arms (EBA)GSP+

• Trade Defence Instruments Anti-dumpingAnti-subsidySafeguard measures