The Role of EU Trade Policy in Enhancing the Competitiveness of European Industry

Transcription

1 The Role of EU Trade Policy in Enhancing the Competitiveness of European Industry Industrial Policy Taskforce Mrs. Signe Ratso Director, DG Trade EPC Conference European Commission 10 December

2 Contents Role of trade in creating growth and jobs Contributions of FTAs in opening new markets Trade enforcement and Market Access 2

3 EU growth depends on world growth (1) Robust external demand is the main source of growth for the moment 1.0% Contributions to GDP growth Bound to grow in the future: 90% of future global economic growth to take place outside Europe 0.5% 0.0% Domestic Demand Inventories Trade -0.5% Source: Commission's Spring Forecasts,

4 EU growth depends on world growth (2) Needto connect to new growth centres Contributions to world GDP growth (%) Rest of the World China Japan United States European Union Source, IMF, World Economic Outlook

5 EU 28 remains a trading power 15 % of world trade (in goods) in 2012 Largest importer 1,794 bn (2012) First exporter 1,686 bn (2012) EU-27 received bn in FDI 2011 (ranking 1 st before US 163 bn) 5

6 The EU in world trade Share of EU27*, USA, Japan and China in World Trade in Goods (%) 25,0% 20,0% EU United States China Japan 15,0% 10,0% 5,0% 0,0% * Excluding intra EU Trade Sources: WTO, Eurostat (Comext) 6

7 EU trade performance : A growing surplus in agriculture, manufactures and services ( bn) Services Manufactures Fuels and minerals Agriculture Source: Eurostat 7

8 About 30 million jobs depend on trade outside the EU Export-oriented employment as part of overall employment (in %, latest available figures) More than 10% 8% -10% 6% -8% 4% -6% Up to 4% 8 Source: European Commission, IPTS-DG Trade

9 Bilateral agreements State of play Mexico Central America Cariforum Colombia Peru Euro- Med Cameroon, Ghana, Ivory Coast Ukraine Moldova Georgia EFTA Turkey Balkans Eastern & Southern Africa Singapore South Korea Papua New Guinea Fiji Chile South Africa Agreements in force Negotiations concluded 9

10 Bilateral agreements the way ahead Canada Eastern partners United States Morocco Euro- Med Gulf countries 5 African regions India Thailand Malaysia Vietnam Japan Other ASEAN Pacific Mercosur Negotiations ongoing Negotiations under consideration 10

11 Share of trade covered by Free Trade Agreements (FTAs) 100% 75% 65% 50% 48% 25% 24% 30% 0% 2006 (re-launch of FTAs) Today (completed FTAs) Tomorrow (inc on-going negotiations) Beyond tomorrow (inc negotiations to be launched) 11

12 Contribution of FTAs Additional boost to the EU GDP by 2% or more than 250 bn EUR equivalent to the size of Austrian or Danish economy Creation of more than 2 mn jobs across Europe 12

13 Concrete examples -EU-Korea FTA as a landmark agreement Benefits for EU Industry New trade opportunities (ca 30bn) Significantly reduced NTBs Sectoral annexes for cars, pharma and chemicals Equivalence between key EU and Korean safety standards in cars Korea introduced a self certification system for electronics Better access to government procurement Protection of intellectual property

14 EU-Canada FTA (CETA) Benefits for EU Industry 25.7 bn new trade created, annual GDP gains of 11.6 bn Full liberalisation of industrial tariffs NTBs- recognition of conformity assessment Cars CAN will recognise a list of EU car standards Public procurement access at sub-federal level Prohibition of export taxes and export restrictions 14

15 Rationale of EU-US TTIP World's largest trade market 50% of world GDP and 1/3 of world trade 1.8 billion/day and 723 billion/year of goods and services traded 15 million transatlantic jobs 2,4 trillion of mutual investment stocks 15

16 Potential Economic Gains Significant economic gains both EU & US: 0.5 % increase in EU GDP by bio /year (EU), 50-95bio /year (US) Increased trade EU exports to US up by 28% (187 bio ) Total EU exports up 220 bio (3 rd countries included) Labour market: benefits (wages / new job opportunities for high- and low-skilled workers) RoW: GDP increase +100 bio/ 16

17 Industrial Sectors with Most Benefits Potential growth of EU Exports: Metals- 12%, processed food (9%), chemicals (9%), other manufactured goods (6%) Largest benefits for the car sector: EU exports to the US +149% EU exports to the world +42 Main benefits due to NTB elimination/ lowering (80%) 17

18 Enforcement and Market Access Negotiating the rules Bilaterally in FTAs Multilaterally WTO Monitoring and implementing the rules Monitoring of FTA implementation EU Market Access Strategy EU trade diplomacy Enforcing the rules Anti-dumping and anti-subsidies WTO Dispute settlement cases 18

19 Trade defence instruments (TDI) Why? EU committed to the liberalisation of international trade but faces unfair conducts (dumped or subsidised imports). How? Process driven by complaints lodged by EU industry. WTO+ provisions in EC law to ensure a more balanced application. On-going modernisation exercise of EU TDI. Scope? About 0.2% of EU imports covered by EU TDI measures; 300 mio duties collected in new cases per year and 40 expiry or interim reviews Goal? Ensure level playing field while avoiding protectionist abuse 19

20 Conclusion Trade contributes significantly to growth and jobs The competitiveness of European industry is enhanced by opening markets in new centres of growth EU implements its rights forcefully by trade enforcement and Market Access Strategy (diplomatic means and DS) and TDI

21 Thank you for your attention! 21