Civil Society Dialogue - Trade and SMEsBrussels, 31 March 2011Petros SourmelisEuropean Commission - Directorate General Trade

The European Union Trade Policy 2011

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Context

• GlobalisationIncluding fragmentation of value chains

• Emergence of new economic powerhousesChina, India, Brazil

• Economic downturnTrade is part of the solution

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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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The EU in world tradeShare of EU27 GDP in World GDP

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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

The European Commission adopted in November 2010 its renewed trade policy (“Trade, Growth and World Affairs”): what does it propose?

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

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Completion of current negotiating agenda

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

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Deepen trade relations with strategic partners

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

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Trade agenda is evolving

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

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Unilateral dimension

• Generalised System of Preferences (GSP)

Everything But Arms (EBA)GSP+

• Trade Defence Instruments Anti-dumpingAnti-subsidySafeguard measures

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Removing trade barriers for EU exporters

• Creating new opportunities for EU exporters:Effective enforcement of trade agreementsTackling key barriers in third countriresMonitor and act against protectionist measures

• 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 Database – helping developing countries to

export to the EU and helping EU companies to import fromdeveloping countries

Market Access Strategy

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Trade and SMEs

• Open new markets and establish a predictable frameworkfor all EU companies (bilateral and multilateralagreements)

• Enforcement of trade rules to ensure trade flows• Market Access Partnership to identify and address trade

barriers• Trade defence assistance• Information tools and helpdesks (MADB Export Helpdesk,

IPR Helpdesk in China, etc…) • In preparation: Communication on possible EU support for

SME internationalisation

How SMEs benefit from EU trade policy