EU TRADE POLICY
EU TRADE POLICY AND
EU/CANADA TRADE RELATIONS
CLA National Conference – Ottawa May 31st, 2012
Maurizio Cellini, EU Delegation to Canada
1. EU TRADE POLICY
From the internal market (corner stone of EU integration) with
the free movement of goods, persons, services and capital and
the establishment of the custom union
To a common trade policy for 27 EU Member States (since
1960s): e.g. one single import tariff, same regulatory standards,
same remedial actions (anti-dumping, anti-subsidy)
• One EU voice in the WTO and one actor for negotiation of
trade agreements (European Commission negotiator)
1. EU TRADE POLICY – How the EU negotiates
• The European Commission (via the Directorate General for
Trade) negotiates
- On behalf of the 27 Member States
- Regular reporting to the Council and the EP
• The Council (EU governments) 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
• The European Parliament (EP) co-decides
- EP co-decides with the Council on trade legislations (except
negotiating directives)
- EP gives consent on agreements
• Also, involvement of Civil Society and Public Consultations
1. EU TRADE POLICY – the EU is a trading power
EU is a trading power…
(> 500 million inhabitants)
15.5 % of world trade (in goods) in
2011
First world exporter 14.9% (2011)
Largest importer 16,1% (2011)
EU-27 received €103.9 bn in FDI 2010
(ranking 2nd after US €172.2 bn)
1. EU TRADE POLICY : Main trading partners
•
TOTAL EU TRADE IN GOODS (IMP + EXP)
WITH MAIN TRADING PARTNERS - 2010
Rk
Trade with
EXTRA EU 27
Million
Euros
%
2,850,677
100
EU IMPORTS FROM CANADA
US
411,596
14.4
China
395,128
13.9
RK
MILLIONS OF
EUROS
%
Russia
244,892
8.6
15
20,053
1.3
Switzerland
189,559
6.6
EU EXPORTS TO CANADA
Norway
121,039
4.2
Japan
108,628
3.8
Turkey
103,277
3.6
India
67,946
2.4
South Korea
66,636
2.3
10
Brazil
63,603
2.2
11
Canada
46,642
1.6
1
2
3
4
5
6
7
8
9
RK
MILLIONS OF
EUROS
%
14
26,589
2.0
2. CETA NEGOTIATIONS
EU /CANADA
CETA NEGOTIATIONS
state of play
CETA: Comprehensive Economic and Trade Agreement
AECG: Accord Economique et Commercial Globale
CETA Process
• The launch of CETA negotiations took place at the EU/Canada
Summit in May 2009 in Prague.
• The decision to launch negotiations followed almost two years
of study on the costs and benefits of a closer EU/Canada
partnership, the so-called “Joint Study”.
http://trade.ec.europa.eu/doclib/docs/2008/october/tradoc_141032.pdf
• The Joint Study was then followed by the “Scoping Exercise”,
which set the objectives of the negotiations.
http://trade.ec.europa.eu/doclib/docs/2009/march/tradoc_142470.pdf
JOINT STUDY : Potential gains from EUCanada Agreement
Potential gains for Canada
Potential gains for the
European Union
• Annual increase of 0.77% of GDP
(or $12 billion) by 2014
• Annual increase of 0.08% of GDP
(or $17 billion) by 2014
•Canadian exports to the EU to
increase by 20.6%
•EU exports to Canada to increase
by 24.3%
•45.5% gains from the liberalization of services
• 33.3% from full tariff elimination
• 21.2% from the reduction of non-tariff
barriers
• 50% gains from the liberalization of services
• 25% from full tariff elimination
• 25% from the reduction of non-tariff barriers
Scoping Exercise
Specific areas of relevance to any future agreement
(Joint Report on the EU-Canada Scoping Exercise,
March 5, 2009)
Trade in goods
Sanitary and
phytosanitary
issues
Technical barriers
to trade
Trade facilitation
Customs
procedures
Cross-border trade
in services
investment
Government
procedures
Regulatory
cooperation
Intellectual
property, including
geographical
indications
Movement of
persons
Competition policy
and other related
matters
Institutional
arrangements and
dispute settlement
Sustainable
development
Other areas
Modalities for the negotiations

Reach maximum degree of liberalization of trade in goods
and services, far beyond WTO commitments, towards
economic integration;

Pursue a comprehensive and ambitious agreement: No
minimalist deal (all issues on the table);

Conclude negotiations quickly – target is 2012;

Because of the wide scope for the negotiations, essential to
secure a strong involvement of the Canadian Provinces and
Territories in the negotiations (first time for Canada).
CETA Negotiations – achievements
• Nine rounds have taken place and one stocktaking meeting at
political level (Dec. 2010).
• Last round took place in Ottawa in October 2011 – the last
formal negotiating round. Talks continue in the form of
focused working sections.
• In general, the negotiations have progressed very well so far.
Excellent atmosphere and high ambitions remain on both
sides.
• The nine rounds have resulted in a consolidated text with
only sensitive issues still being bracketed.
CETA Negotiations - Challenges
• The table is now set for the “end game”.
• However, there still are many complex and sensitive areas of
negotiation to resolve, such as:
– Improvements on the various offers on goods (Agriculture
!)
– procurement and services,
– IPR protection
– Investment Protection
– In addition, the importance of many technical provisions
(e.g. rules of origin) should not be underestimated.
Perspectives
• Negotiations are characterized by a vast number of areas in which the
exact balance of concessions in each of the areas may be difficult to
reach. Therefore, negotiators must seek an overall balance across all
sectors.
• Hope to continue fast progress and conclude negotiations by 2012.
• Satisfaction for the serious and constant implication of the Provinces
and Territories in the negotiations. Provinces must remain active and
committed.
• Political support for an ambitious agreement remains strong on both
sides.