External Trade The Market Access Strategy and its

External Trade The Market Access Strategy and its implementation Global Europe: a stronger partnership to deliver market access for EU exporters 25 June 2008 Martin Pilser, European Commission, DG Trade - Market Access Unit Czech Business Representation, Brussels

External Trade PART 1 Market Access as part of the Global Europe Strategy The Commission’s April 2007 Communication “Global Europe: A Stronger Partnership to Deliver Market Access for European Exporters” 2

External Trade Market access in a changing global economy • Progress since 1996 – Renewing the 1996 EU Market Access Strategy - Key part of the Global Europe Strategy of October 2006 • Changing nature of barriers in the global economy - Behind the border barriers - NTB’s due to failure to implement and enforce rules - NTB’s not yet covered by WTO rules • Stakeholders support for change - External evaluation study - Public consultation on internet 3

External Trade barriers in the modern global economy The barriers faced by EU exporters can be categorized in the following way: 1. Tariff barriers. Although these have been eroded by successive multilateral trade rounds, high tariffs still pose problems for EU exporters. 2. Burdensome customs procedures for import, export and transit as well as unfair or discriminatory tax rules and practices. 3. Technical regulations, standards and conformity assessment procedures that are not in line with WTO rules on Technical Barriers to Trade (TBT Agreement). 4. Misuse of sanitary and phyto-sanitary measures that are not justified on health and safety grounds within existing WTO rules. 5. Restrictions on access to raw materials, particularly restrictive export practices, including export taxes, which drive up prices for products such as hides and skins, key mineral and metal goods as well as dual pricing practices. 6. Poor protection of intellectual property rights including geographical indications and the lack of proper implementation and enforcement. 7. Barriers to trade in services and foreign direct investment such as unjustified foreign ownership caps, joint venture obligations and discriminatory treatment. 8. Restrictive government procurement rules and practices that prevent EU companies from bidding effectively for public contracts in third countries. 9. Abusive and/or WTO-incompatible use of trade defence instruments by third countries. 10. Unfair use of state aids and other subsidies by third countries in a way that constitutes market access barriers. 4

External Trade Proposals for a Stronger Partnership to Deliver Market Access • A new relationship with Member States and Business • The right mix of policy instruments (new trade agreements, implementing existing agreements, technical assistance, trade diplomacy etc) • Prioritising to make the best use of resources (economic impact, certainty of breach, likelihood of resolution) • A more effective, efficient and transparent service 5

External Trade PART 2 Implementing the Market Access Partnership 6

External Trade A stronger relationship between the Commission, Member States and Business • In particular through coordination in a stronger and more focused Market Access Advisory Committee (MAAC), working closely with the TBR Committee as well as other specialist committees, and inviting EU business whenever appropriate • Special Working groups under the MAAC focusing on specific market access issues • Through Market Access Teams to be created in third countries including MS Embassies and business (EU Chambers of Commerce and other stakeholders) 7

External Trade Member States Business Market Access Partnership Delegations DG TRADE Civil Society Trading partners Interservice 8

External Trade Member States Business Market Access Advisory Committee Commission Other experts 9

External Trade Market Access Advisory Committee Trade Barrier Regulation Committee Link it to the MAAC Close organisational link between the two Committees. Overlapping in terms of subjects and participation from MS. Meetings to be held ‘back to back’. Without Business and other participants. Topics identified e. g. q Sanitary Phyto-sanitary/TBT q IPR, Government Procurement q Regulatory and Standards q Services and Investment q Raw materials q SMEs Special Working Groups Examples: - Vaccines Japan - Medical devices (China, India, etc) - SPS (China) 10

External Trade EU Third Countries MS EU Business MS Embassies MAAC Commission Network Exchange Market Access Teams EU Business Delegations 11

External Trade Network of MA experts facilitated by TRADE Market Access Unit (G. 1) Steering Group MA Partnership Sectors TRADE Bilateral TRADE (Industry, Services Investments, Textiles, steel etc) (FTAs: Korea, India etc. All Bilateral) Thematic TRADE (TBT, SPS, DSU, TBR) Other DGs (ENTR, MARKT, SANCO, AGRI, RELEX etc) Delegations Member States; sectorial and horizontal EU business federations MS Embassies, European Chambers Others experts MA Teams in Brussels MA teams In third countries 12

External Trade The role of the Commission services in Brussels in developing the MAP • • to stimulate discussion between all actors in Europe and in the Market Access teams on the ground; to provide fora to promote best practises and team up resources; to contribute to simplification by linking Committees with similar topics to steer ad-hoc networks and working groups between market access experts to increase transparency by organising information-sharing and feed-back; to facilitate the setting of priorities; to ensure the right mix of policy instruments chosen for action and to systematically monitor progress on barrier removal; to coordinate the promotion of the MAP and the MADB. 13

External Trade The role of the Member States in the MAP • Sharing information available in capitals (specific databases) and on the ground (monitoring legislation and collecting data) • Making resources available to work together effectively with Commission Delegations and business in Market Access Teams • Teaming up on early warning, barrier identification and analysis, and coordinated use of trade diplomacy to tackle barriers • Training and raising awareness of MS staff in local missions • Supporting Commission efforts to promote the MAP, including reachout to SMEs, e. g. through national intermediary organisations • Actively supporting the reporting of barrier complaints to allow central, transparent registration of barrier cases in the MADB 14

External Trade The role of Business in the MAP • Active participating in the MAAC, its working groups and the local Market Access Teams • Providing detailed information and evidence and on market access barriers encountered to build strong cases • Sharing legal analyses of market access barriers • Use complaint register to make information about new cases publicly available • Providing updates of all developments which may affect the tackling of the barriers • Transparency with regard to contacts they make with different Commission services or Member States, as well as third countries 15

External Trade The role of local Market Access Teams • MA teams as mirror of Market Access Advisory Committee in Brussels: Focal contact point to get all partners together • • MA teams build on existing good-practices and fora • DEL choose the appropriate model depending on local conditions, size of cases etc DEL Trade Officials organise, co-ordinate and animate the local MA teams a. use of existing infrastructure of regular commercial counsellors meetings or b. stand alone MA team as working groups in specific issues 16

External Trade The tasks of local Market Access Teams • Prevent barriers: Monitor compliance of partner countries with international and bilateral obligations (legislation and enforcement • Identify barriers and gather evidence: Important first point of contact for EU industry complaints about trade barriers • Analysis: on its basis, assess need to involve HQ to get support (technical or legal expertise), mobilise trade policy instruments or stimulate greater involvement of partners. • Removal/Trade diplomacy: Use regular contacts with local authorities and third country cooperation on cases of mutual interest • Reporting: Regular information flow between MA teams on the ground and in Europe. 17

External Trade Hong Kong a re Swi R Aus ey Turk tral ia Kazakhs ilan d India Saudi Arabia Vietnam tan New Malaysia Tha Brazil d Zealan Japan South Korea ussia d rlan tze Mexico China USA Singapo Tunisia cco Moro Canad Taiwa n Egypt Algeria Indonesia e Isra l Nor way ica fr South A Phi lipp la nezue Ve ine s Ukraine Chile Argent in Nigeria a 18

External Trade A focussed and results-oriented service for exporters • Preventing new barriers coming into effect („early warning“) • Improving the process leading to barrier removal • Market Access Database (MADB) and complaint register • Communication tools to connect all actors 19

External Trade Market Access Database Market Access Partnership Market Access Database Business Complaint Registration Member States Link to other databases Delegations 20

External Trade The MADB Complaints Register • Idea for new Complaint Register came from business demands during MAS consultation process • Business wanted better transparency and feedback from Commission Services on contact persons and progress in tackling barriers brought to their attention • Conclusions of Market Access Partnership Communication proposed a “new streamlined system for registering complaints” 21

External Trade Objectives of new Complaint Register ü Simple and efficient system to ensure trade barriers can be registered quickly ü Facilitate the universal recording of substantially all known barriers in one place ü Standardised on-line input forms to ensure all relevant data is obtained at first contact ü Allows EU business to more easily follow progress of complaint and be informed of designated case handler ü Complaint Register should be integral part of MADB and publicly accessible 22

External Trade 23

External Trade PART 3 • First progress report to 133 -Committee, January 2008 • European Parliament resolution, February 2008 Looking ahead Key areas of activity: - Participation of all actors - Support working groups and MA teams to use their full potential - Focus on Small and Medium Enterprises - New areas – services, intellectual property, investment and public procurement 24

External Trade Thank you for your attention! Contact us via mail: Martin. pilser@ec. europa. eu Trade-Market-Access-Dbase@ec. europa. eu Consult the Market Access Database at: http: //madb. europa. eu 25