Committee on International Trade NOTICE TO MEMBERS

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EUROPEAN PARLIAMT 2009-2014 Committee on International Trade 11.6.

1 EUROPEAN PARLIAMT Committee on International Trade NOTICE TO MEMBERS Subject: Report of the delegation of the Committee on International Trade to Italy (Turin, Biella, Milan) May 2010 CM\ doc PE v01-00 United in diversity

2 Summary The delegation of the Committee on International Trade to Italy visited two of the most productive regions in the country, which are also home to some of the best-known brands in the textile, steel and automobile sectors. Both Piedmont and Lombardy also have, in fact, numerous manufacturing businesses which have been successful outside Italy and outside the EU but which retain an essentially SME structure. The delegation had the opportunity to speak directly with the directors and employees of various companies and discussed with them the problems and challenges faced by these industries. The delegation's work was also directly related to some of the more important dossiers being handled by INTA at the moment, such as the S. Korea FTA and the Origin Marking Dossier. Everywhere it went the delegation was met with appreciation of the interest shown by the European Parliament in issues of concern to the industry. Detailed Summary FIAT Group The delegation started with a brief institutional meeting in Torino followed by a visit to the FIAT Research Centre in Orbassano. There the delegation met with high FIAT officials who, amongst other things, explained their company's position with regards to the S. Korea FTA. FIAT argued that while the Korean have been selling tens of thousands of cars in the EU market, the EU car makers have had big difficulties to penetrate the Korean market. The company also showed Members several presentations containing relevant data supporting their arguments. Members of the delegation were also shown around the research centre and were also given the opportunity to try out new prototype cars. Textile Industry The delegation was invited for a specially organised meeting in Biella with various representatives of the textile and the fashion industries, for which Italy is so well known. Various exponents of the industry, the trade unions and the consumers addressed the delegation. They all passed on a very clear message: that for them the adoption of the Origin Marking regulation is not only a 'logical' step but also a necessary one in view of customer health and safety, IPR protection as well as a level playing field on the international trade scene. IMF and Tenaris - Dalmine The delegation also visited two plants which are related to the steel industry: IMF, in Luino: a large SME which specializes in the construction of automated industrial machines, and Tenaris, in Dalmine: a multinational company which specialises in steel pipe production. The message in both cases was that China is engaging in unfair competition by copying EU products, by competing on the same markets (including inside the EU) with lower quality products which endanger the health and safety of the end-user, and by engaging in socially PE v /7 CM\ doc

3 unacceptable practices (such as child labour) which ultimately give Chinese companies an unfair advantage. In Dalmine the delegation also heard how certain third party protectionist measures on imported goods and on raw materials have recently badly hit the steel industry. The delegation was also shown around both plants and had the opportunity to ask questions about production methods, supply chains, market access to third countries and other relevant issues. Fratelli Rossetti The delegation also visited the Fratelli Rossetti footwear plant in Parabiago. The Members were taken on a tour of the plant and saw first hand the amount of manual work that still goes into each and every shoe produced. Mr. Rossetti himself explained how the EU market is being flooded by mass-produced Chinese shoes which, in the absence of a relevant regulation, have no mark of origin and are therefore sold in the EU to customers who are given the false impression that they are acquiring an "Italian" product. This, Mr. Rossetti stated, is undermining the business structure and the traditional quality of EU products. Institutional Meeting, Milan In Milan the delegation had a meeting, followed by a dinner, with Guido Podestà, former MEP and current President of the Province of Milan. Together with Mr. Podestà, the delegation, under the chairmanship of Ms. Cristiana Muscardini and with the participation of Mr. Jörg Leichtfried and Ms. Francesca Balzani, also took part in a press conference organised for the occasion. ITRE Vice-chairperson, Ms. Patrizia Toia, also joined the delegation for the event. UPIVEB: steel fastener producers' association On the last day the delegation held an interesting meeting with UPIVEB, an association that represents the main steel fastener producers in Italy. Once again the main issues raised by this body were the lack of an Origin Marking regulation and the Chinese competition on the market. UPIVEB also referred to certain serious accidents, such as a plane accident, happening due to low-quality fasteners that enter the EU market without any quality controls. The question of having the same controls in each of the EU points of entry on the border was also raised. The lack of standardisation in this issue is creating a shift of business towards entry points which are considered to be more "lax". I The final meeting of the delegation was with Mr. Paolo Scaroni, the CEO of I, during which issues concerning energy and trade, FDI and energy, and trade and the environment were raised. ITRE Vice-chairperson Ms. Patrizia Toia, was also present during this meeting. CM\ doc 3/7 PE v01-00

4 Conclusion The delegation was a success. Everywhere it went it generated great interest and was warmly received. People were particularly eager to explain to Members their problems and very often also to offer their help in finding solutions. All interested parties that the delegation met also showed a keen awareness of the new powers acquired by the European Parliament following the entry into force if the Lisbon Treaty and expressed hope that these new powers would lead to more efficient and effective legislation. PE v /7 CM\ doc

5 PROGRAMME INTA DELEGATION TO ITALY (25-27 MAY 2010) TUESDAY 25TH MAY Institutional meeting in Torino with Massimo Giordano, Councillor for Economic Development Research and Innovation, Piemonte Region Visit to the FIAT research centre, and meeting with FIAT representatives: Ing. Rinaldo Rinolfi: Executive Vice President, Director of Engines Division Fiat Research Center Ing. Daniele Chiari: Head of Institutional relations of the FIAT Group Automobiles and Head of the motor programming of the FIAT Group Technical & Institutional meeting in Biella on the problems faced by the textile and clothing industries Luigi Squillario - President of CittàStudi Luciano Donatelli President Biellese Industrial Union Paolo Zegna Vice President of Confindustria for International Affairs Michele Tronconi Presidente of Sistema Moda Italia Textile and Fashion Federation Valeria Fedeli General Secretary of Filtea CGIL Mauro Rossetti Director of the Textile and Health Association Debate and interventions by INTA Members CM\ doc 5/7 PE v01-00

6 WEDNESDAY 26TH MAY Visit to IMF steel machinery plant in Luino and meeting with company management, including a video-conference with Gabriele Galante, Managing Director IMF group Meeting and lunch with Andrea Pellici, Mayor of Luino together with other the High Officials of the Province of Varese Visit to the Fratelli Rossetti footwear plant in Parabiago, together with representatives from ANCI. Renato Rossetti: President of Frattelli Rossetti Group Mateo Scarporio: Head of the Economic Division -ANCI (National Association of Italian Shoemakers) Institutional Meeting in Milan with Guido Podestá: President of the Province of Milan, and a Press Briefing THURSDAY 27TH MAY Meeting with representatives of the UPIVEB, Italian Association of Fastener Producers in Orio al Serio 12h30 Visit to Tenaris Steel Plant in Dalmine. Vincenzo Crapanzano: European Area Manager, Tenaris Group Caterina Epis - International Relations Manager Meeting with the President & CEO of I, Paolo Scaroni, in Milan (San Donato Milanese) PE v /7 CM\ doc

7 INTA DELEGATION TO ITALY (Turin, Biella, Milan) MAY 2010 LIST OF MEMBERS (in protocol order) # Name Political Group 1. Cristiana Muscardini PPE (Chairperson) 2. Jörg Leichtfried S&D 3. Catherine Bearder ALDE 4 Pablo Zalba Bidegain PPE 5. Gianluca Susta S&D 6. Francesca Balzani S&D Patrizia Toia, Vice-Chair of ITRE, joined the delegation for meetings in Biella, with Guido Podestà and with Paolo Scaroni CM\ doc 7/7 PE v01-00

The End of the Multi-fiber Arrangement on January 1, 2005

The End of the Multi-fiber Arrangement on January 1, 2005 On January 1 2005, the World Trade Organization agreement on textiles and clothing expired. All WTO members have unrestricted access to the American and European markets for their textiles exports. The