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.