CONTENT: the purpose of this Communication is to set\nout the contribution of trade policy to stimulating growth and\ncreating jobs in Europe (see INI/2006/2292).\nIt sets out how, in a rapidly changing global economy, the can\nbuild a more comprehensive, integrated and forward-looking external\ntrade policy that makes a stronger contribution to Europe's\ncompetitiveness. It stresses the need to adapt the tools of EU\ntrade policy to new challenges, to engage new partners, to ensure\nEurope remains open to the world and other markets open to European\nbusinesses.
\nThere are two critical and linked requirements for\nEuropean competitiveness. First, having the right internal\npolicies, which reflect the external competitive challenge and\nmaintain openness to trade and investment. Second, ensuring\ngreater openness and fair rules in other markets, in particular our\nfuture major trading partners. Both must be underpinned by\ntransparent and effective rules - domestic, bilateral and\nmultilateral.
\nBased on this analysis, the European Commission\nproposes to build an agenda for action in the months and years\nahead. From autumn 2006 and through 2007, the Commission will set\nout the competitiveness agenda for EU trade policy with a series of\nlinked initiatives:
\nIn the months ahead, the Commission\nproposes:
\nInternally, to\n:
\nExternally,\nto:
\nThe Commission also intends to propose a new\ngeneration of FTAs, if approached with care, can build on WTO\nand other international rules by going further and faster in\npromoting openness and integration, by tackling issues which are\nnot ready for multilateral discussion and by preparing the ground\nfor the next level of multilateral liberalisation. The key economic\ncriteria for new FTA partners should be market potential (economic\nsize and growth) and the level of protection against EU export\ninterests (tariffs and non tariff barriers).
\nWith a GDP of EUR 714 billion in 2005 and trade with\nthe EU at 115.1 billion, ASEAN (with whom negotiations are\non-going) appears to be a priority for the EU. According to World\nBank calculations, the annual average growth rate for ASEAN from\n2005-2025 should be around 4.9% representing a market potential\nof EUR 57 billion for the same period. ASEAN combines high\nlevels of protection with large market potential and they are\nactive in concluding FTAs with EU competitors.
\nIn terms of content, new competitiveness-driven FTAs\nwould need to be comprehensive and ambitious in coverage, aiming at\nthe highest possible degree of trade liberalisation including\nfar-reaching liberalisation of services and investment. A new,\nambitious model EU investment agreement should be developed in\nclose coordination with Member States. Where partners have signed\nFTAs with other countries that are competitors to the EU, full\nparity at least should be sought. Quantitative import restrictions\nand all forms of duties, taxes, charges and restrictions on exports\nshould be eliminated.
\nFTAs should also tackle non tariff barriers through\nregulatory convergence wherever possible and contain strong trade\nfacilitation provisions. They should include stronger provisions\nfor IPR and competition, including for example provisions on\nenforcement of Intellectual Property rights along the lines of the\nEC Enforcement Directive. The EU will seek to include provisions on\ngood governance in financial, tax and judicial areas where\nappropriate. It should also ensure Rules of Origin in FTAs are\nsimpler and more modern and reflect the realities of\nglobalisation.
\nIn considering new FTAs, the EU will need to work to\nstrengthen sustainable development through its bilateral trade\nrelations. It will also take into account the development needs of\nits partners and the potential impact of any agreement on other\ndeveloping countries, in particular the potential effects on poor\ncountries' preferential access to EU markets. In line with its\nposition in the WTO, the EU will encourage our FTA partners to\nfacilitate access by least-developed countries to their market, if\npossible by granting duty and quota free access. Lastly, FTA\nprovisions should be an integral part of the overall relations with\nthe country or region concerned.
\nCONTENT: the purpose of this Communication is to set\nout the contribution of trade policy to stimulating growth and\ncreating jobs in Europe (see INI/2006/2292).\nIt sets out how, in a rapidly changing global economy, the can\nbuild a more comprehensive, integrated and forward-looking external\ntrade policy that makes a stronger contribution to Europe's\ncompetitiveness. It stresses the need to adapt the tools of EU\ntrade policy to new challenges, to engage new partners, to ensure\nEurope remains open to the world and other markets open to European\nbusinesses.
\nThere are two critical and linked requirements for\nEuropean competitiveness. First, having the right internal\npolicies, which reflect the external competitive challenge and\nmaintain openness to trade and investment. Second, ensuring\ngreater openness and fair rules in other markets, in particular our\nfuture major trading partners. Both must be underpinned by\ntransparent and effective rules - domestic, bilateral and\nmultilateral.
\nBased on this analysis, the European Commission\nproposes to build an agenda for action in the months and years\nahead. From autumn 2006 and through 2007, the Commission will set\nout the competitiveness agenda for EU trade policy with a series of\nlinked initiatives:
\nIn the months ahead, the Commission\nproposes:
\nInternally, to\n:
\nExternally,\nto:
\nThe Commission also intends to propose a new\ngeneration of FTAs, if approached with care, can build on WTO\nand other international rules by going further and faster in\npromoting openness and integration, by tackling issues which are\nnot ready for multilateral discussion and by preparing the ground\nfor the next level of multilateral liberalisation. The key economic\ncriteria for new FTA partners should be market potential (economic\nsize and growth) and the level of protection against EU export\ninterests (tariffs and non tariff barriers).
\nWith a GDP of EUR 714 billion in 2005 and trade with\nthe EU at 115.1 billion, ASEAN (with whom negotiations are\non-going) appears to be a priority for the EU. According to World\nBank calculations, the annual average growth rate for ASEAN from\n2005-2025 should be around 4.9% representing a market potential\nof EUR 57 billion for the same period. ASEAN combines high\nlevels of protection with large market potential and they are\nactive in concluding FTAs with EU competitors.
\nIn terms of content, new competitiveness-driven FTAs\nwould need to be comprehensive and ambitious in coverage, aiming at\nthe highest possible degree of trade liberalisation including\nfar-reaching liberalisation of services and investment. A new,\nambitious model EU investment agreement should be developed in\nclose coordination with Member States. Where partners have signed\nFTAs with other countries that are competitors to the EU, full\nparity at least should be sought. Quantitative import restrictions\nand all forms of duties, taxes, charges and restrictions on exports\nshould be eliminated.
\nFTAs should also tackle non tariff barriers through\nregulatory convergence wherever possible and contain strong trade\nfacilitation provisions. They should include stronger provisions\nfor IPR and competition, including for example provisions on\nenforcement of Intellectual Property rights along the lines of the\nEC Enforcement Directive. The EU will seek to include provisions on\ngood governance in financial, tax and judicial areas where\nappropriate. It should also ensure Rules of Origin in FTAs are\nsimpler and more modern and reflect the realities of\nglobalisation.
\nIn considering new FTAs, the EU will need to work to\nstrengthen sustainable development through its bilateral trade\nrelations. It will also take into account the development needs of\nits partners and the potential impact of any agreement on other\ndeveloping countries, in particular the potential effects on poor\ncountries' preferential access to EU markets. In line with its\nposition in the WTO, the EU will encourage our FTA partners to\nfacilitate access by least-developed countries to their market, if\npossible by granting duty and quota free access. Lastly, FTA\nprovisions should be an integral part of the overall relations with\nthe country or region concerned.
\nThe Committee on\nInternational Trade adopted an own-initiative report by Glyn\nFORD (PES, UK) on trade and economic relations with the\nAssociation of South East Asian Nations (ASEAN). The proposed\nagreement with ASEAN forms part of a wider strategy of bilateral\nand inter-regional negotiations with trading partners, set out in\nthe Commission's Communication \"Global Europe: Competing in the\nWorld\" (refer to summary dated 4 October 2006).
\nThis report insists\nthat an EU-ASEAN agreement could produce substantial economic\nadvantages for both parties but that additional measures may be\nrequired to promote an equitable division of such gains. MEPs are\nnonetheless concerned about the slow pace of negotiations. In any\ncase, a Partnership and Cooperation Agreement (PCA), reinforcing\nenforceable human rights clauses, is a prerequisite for the Union\nto conclude an FTA with any country. The proposed FTA must also\nfully respect WTO rules.
\nMEPs believe that\ninter-regional agreements can usefully supplement the multilateral\nsystem, provided they are wide-ranging and ambitious, going well\nbeyond tariff reductions in order to open markets, together with\nthe implementation of technical, social and environmental\nstandards. They urge the parties to reduce progressively or\ndismantle all barriers to trade in goods and services, while fully\nrespecting the differing economic positions within the ASEAN\nregion.
\nIn the context of\nthe EU-ASEAN framework agreement, the Commission is urged to ensure\ntransparency and effective rules for public procurement,\ncompetition and investment, Intellectual Property Rights (IPRs),\nstate aid and other subsidies.
\nA trade and\ninvestment agreement with ASEAN should ensure: the improvement and\nsimplification of rules of origin; the harmonisation of standards,\nincluding product safety, child protection and animal welfare\nstandards; regulatory transparency and simplified bureaucratic\nprocedures; and the elimination of discriminatory taxes.
\nSectoral\nissues: stressing the importance of dismantling non-tariff\nbarriers, MEPs are particularly concerned about restrictions on\nbusiness services (particularly for banking, insurance and legal\nservices). They also ask that priority be given to the effective\nenforcement of IPRs, particularly for design, sound recordings and\nother cultural goods as well as geographical indications and\nappellations of origin. The Commission is called upon to tackle\nbarriers, notwithstanding the right of countries to regulate\nsectors - such as audiovisual - that play a key role in preserving\ncultural diversity.
\nMEPs attach\nparticular importance to the fight against counterfeit\npharmaceuticals, which represent unfair competition and a danger to\nconsumers. They also consider it necessary to focus in detail on\nthe fishing industry, and in particular on the tuna sector, and on\ncompliance with hygiene and health rules in the fishing industry.\nFurthermore, they call for the adoption of international auditing\nand accounting standards as well as measures to combat corruption\nand money laundering. The section of the agreement dealing with\npublic procurement must take account of the varying level of\ndevelopment of the ASEAN members and must respect the right of each\nparticipant to regulate its public services, particularly those\nlinked to basic needs.
\nTrade, investment,\nresearch and scientific agreements should address sector-specific\nissues, such as: low energy light bulbs, the prevention of natural\ndisasters, the tourism sector, the free movement of researchers,\nbusiness people and tourists.
\nThe Committee\nrecommends that the Union's energy policy, with respect to ASEAN\ncountries, concentrate on, amongst others, non-discriminatory\nlicensing and trade conditions relating to energy products, the\ndiversification of energy sources, the elimination of border taxes\non energy products, and mutual agreements on energy\nsaving.
\nCountry specific\nissues: the report draws attention to the position of Least\nDeveloped Countries (LDCs) of the region: Cambodia, Laos and Burma.\nIn the event of these countries wishing to be included in the\nfree-trade agreement with the EU, the Council should revise the\nmandate that it gave to the European Commission. The current\nsituation in Burma makes it impossible for that country to be\nincluded in the agreement. For the other poorer countries who are\nmembers of ASEAN but do not belong to the LDC group, MEPs urge\nflexible arrangements - more or less equivalent to those envisaged\nin economic partnership agreements (EPAs) - to enable these\ncountries to cope with the loss of customs revenue. A resolution to\nthe problem of banking secrecy in Singapore is also essential if\nthere is to be a real prospect of a region-to-region free-trade\nagreement.
\nSustainable\ndevelopment: MEPs consider an ambitious sustainable development\nchapter to be an essential part of any agreement and call for any\nagreement to incorporate binding social and environmental clauses,\ncommitting the parties to ratifying the core International Labour\nOrganisation (ILO) conventions and ensuring their effective\nimplementation, particularly as regards child and forced\nlabour.
\nIn this context, a\nTrade and Sustainable Development Forum, made up of workers' and\nemployers' organisations and civil society representatives, could\nplay a valuable role in ensuring that greater market opening is\naccompanied by rising environmental and social standards. The\nestablishment of a mechanism that could result in ongoing follow-up\nand review provisions, in order to maintain pressure against\nviolations of workers' rights, is also proposed.
\nMeasures that aim\nto combat deforestation and to protect and enhance tropical forests\nare considered to be of great importance. Therefore, MEPs consider\nthat a PCA should only encourage trade in environmentally\nsustainable biofuels and that ASEAN countries should be assisted in\ntheir efforts to tackle illegal logging. In addition,\nenvironmentally friendly products and fair trade goods should have\ntheir tariffs reduced more quickly than other goods and be given\nearly access to the EU market.
\nLastly, MEPs demand\nthat human rights and democracy form an integral part of the\nnegotiations with ASEAN, especially in the PCAs. In this respect,\nthey reiterate the importance that the Parliament attaches to\npolitical and civil rights reforms, and welcome the establishment\nof the Human Rights Body in ASEAN's Charter and its explicit\ncommitment to the strengthening of democracy, the enhancement of\ngood governance and the rule of law, as well as the promotion and\nprotection of human rights and fundamental freedoms.
\nThe Committee\nexpects that the Lisbon Treaty will enter into force before the\nconclusion of the negotiations, and this will remove any doubt\nabout the need for Parliamentary assent for this type of agreement.\nMEPs call on the Commission to make the negotiating mandate more\nwidely available to Parliament and to consult Parliament regularly\nduring the course of the negotiations to ensure that the outcome\ncommands broad support.
\nThe European\nParliament adopted, by 523 votes to 53 with 59 abstentions, a\nresolution on trade and economic relations with the Association of\nSouth East Asian Nations (ASEAN). The own-initiative report\nwas tabled for consideration in plenary by Glyn FORD (PES, UK), on\nbehalf of the Committee on International Trade.
\nThe proposed\nagreement with ASEAN forms part of a wider strategy of bilateral\nand inter-regional negotiations with trading partners, set out in\nthe Commission's Communication \"Global Europe: Competing in the\nWorld\" (please refer to summary dated 4 October 2006).
\nParliament believes\nthat an ambitious agreement will greatly benefit both sides, but is\nconcerned about the slow pace of negotiations. It considers that a\nsuccessful Doha Development Agenda remains the Union's trade\npriority and wishes negotiations with ASEAN to be complementary to\nit. In addition, the proposed FTA has to fully respect WTO rules.\nParliament calls on both sides to give priority in the negotiations\nto the need to stabilise the price of commodities, in particular\nthe price of food, and to approach the issue of agro-fuels with\ngreat caution. It regrets that, at the EU-ASEAN Summit held in\nSingapore in November 2007, certain provisions relating to business\npractices and conduct were not treated in depth, thus inhibiting EU\ninvestment in ASEAN countries.
\nMembers urge the\nparties progressively to reduce or dismantle all barriers to trade\nin goods and services, while fully respecting the differing\neconomic positions within the ASEAN region and the need to ensure\nuniversal, accessible and sustainable public services with\naffordable prices and high-quality standards for all.
\nIn the EU-ASEAN\nagreement, the Commission is urged to ensure transparency and\neffective rules for public procurement, competition and investment,\nIntellectual Property Rights (IPRs), state aid and other subsidies.\nAn agreement with ASEAN should ensure: (i) the improvement and\nsimplification of rules of origin; (ii) the harmonisation of\nstandards, including product safety, child protection and animal\nwelfare standards; (iii) regulatory transparency and simplified\nbureaucratic procedures; (iv) the elimination of discriminatory\ntaxes.
\nSectoral\nissues: Parliament regards the issue of non-tariff barriers as\nof no less importance than tariff reductions and is particularly\nconcerned about restrictions on business services, where a\nreduction in unjustified constraints could lead to ASEAN firms\nhaving access to lower cost, more efficient banking, insurance and\nlegal services. It calls for the effective enforcement of IPRs to\nbe given priority, particularly for design, sound recordings and\nother cultural goods as well as geographical indications and\nappellations of origin. The Commission is asked to tackle barriers\nnotwithstanding the right of countries to regulate sectors - such\nas audiovisual - that play a key role in preserving cultural\ndiversity.
\nMembers attach\nparticular importance to the fight against counterfeit\npharmaceuticals which represent unfair competition and a danger to\nconsumers. They point out that nothing in the agreement should\ncreate legal or practical obstacles to the maximum use of\nflexibilities set out in the Declaration amending the Trade-Related\nAspects of Intellectual Property Rights Agreement (TRIPS agreement)\nand access to medicines.
\nParliament\nconsiders that the agreement should seek to promote increased\ntransparency and accountability with regard to investments made by\nsovereign wealth funds. It expresses concern about the consequences\nof higher rice prices, particularly for poorer households in\nrice-importing ASEAN countries. It also considers it necessary to\nfocus in detail on the fishing industry, and in particular on the\ntuna sector, given the strong socio-economic impact that the\nimmediate liberalisation of tariffs would have on this sensitive\nsector. It urges the adoption of international auditing and\naccounting standards and measures to combat corruption and money\nlaundering. Parliament believes that aspects of the agreement\naffecting public procurement should recognise the varying levels of\ndevelopment of ASEAN members and respect the right of all\nparticipants to regulate public services, particularly those\nrelating to basic needs.
\nTrade, investment\nand scientific and research agreements should address\nsector-specific issues, such as low energy light bulbs,\ncertification of sustainably grown and legally harvested timber\nproducts, the prevention of and recovery following natural\ndisasters, the tourism sector, the free movement of researchers,\nbusiness people and tourists.
\nThe resolution\nrecommends that the Union's energy policy, with respect to ASEAN\ncountries, concentrates, amongst others, on non-discriminatory\nlicensing and trade conditions relating to energy products, the\ndiversification of energy sources, the elimination of border taxes\non energy products, and mutual agreements on energy saving,\nmitigating climate change and reducing greenhouse gas emissions,\nincluding potential reciprocal emissions trading arrangements, so\nas to avoid damage to industries in the Union.
\nCountry-specific\nissues: Parliament underlines that any schedule of tariff\nreductions should take full account of the differing economic\npositions of ASEAN members. Poorer non-LDC members of ASEAN should\nbenefit from flexibilities that are broadly equivalent to those\noffered by the Economic Partnership Agreements to countries with\ncomparable income levels. The Commission is asked to invite\nCambodia and Laos to indicate whether they would wish to be\nincluded in the agreement and, were the reply to be positive, to\nseek a revised negotiating mandate from the Council that would make\nthis possible. Parliament believes that the current situation in\nBurma makes it impossible for that country to be included in the\nagreement. It considers a resolution to the problem of banking\nsecrecy in Singapore, which is blocking the conclusion of a PCA, to\nbe essential if there is to be a real prospect of a\nregion-to-region FTA.
\nSustainable\ndevelopment: MEPs consider an ambitious sustainable development\nchapter to be an essential part of any agreement and call for any\nagreement to incorporate binding social and environmental clauses,\ncommitting the parties to ratifying the core International Labour\nOrganisation (ILO) conventions and ensuring their effective\nimplementation, particularly as regards child and forced labour. In\nthis context, a Trade and Sustainable Development Forum, made up of\nworkers' and employers' organisations and civil society\nrepresentatives, could play a valuable role in ensuring that\ngreater market opening is accompanied by rising environmental and\nsocial standards. The establishment of a mechanism that could\nresult in follow-up and review provisions, in order to maintain\npressure against violations of workers' rights, is also\nproposed.
\nMeasures that aim\nto combat deforestation and to protect and enhance tropical forests\nare considered to be of great importance. Therefore, MEPs consider\nthat a PCA should only encourage trade in environmentally\nsustainable biofuels and that ASEAN countries should be assisted in\ntheir efforts to tackle illegal logging. In addition,\nenvironmentally friendly products and fair trade goods should have\ntheir tariffs reduced more quickly than other goods and be given\nearly access to the EU market.
\nPolitical\nconsiderations: Parliament demands that human rights and\ndemocracy form an integral part of the negotiations with ASEAN,\nespecially in the PCAs. It reiterates the importance that the\nParliament attaches to political and civil rights reforms, and\nwelcomes the establishment of the Human Rights Body in the ASEAN\nCharter and its explicit commitment to the strengthening of\ndemocracy, the enhancement of good governance and the rule of law,\nas well as the promotion and protection of human rights and\nfundamental freedoms. It welcomes elections in Thailand restoring\ndemocracy, and asks the Council to maintain the restrictive\nmeasures against the Government of Burma, to follow the situation\nclosely and, if developments in the country so require, to review\nthose measures. ASEAN members, as well as China and India, are\nasked to put pressure on Burma.
\nLastly, Parliament\nexpects that the Lisbon Treaty will enter into force before the\nconclusion of the negotiations, and this will remove any doubt\nabout the need for Parliamentary assent for this type of agreement.\nMEPs call on the Commission to make the negotiating mandate more\nwidely available to Parliament and to consult Parliament regularly\nduring the course of the negotiations to ensure that the outcome\ncommands broad support.
\nCONTENT: the purpose of this Communication is to set\nout the contribution of trade policy to stimulating growth and\ncreating jobs in Europe (see INI/2006/2292).\nIt sets out how, in a rapidly changing global economy, the can\nbuild a more comprehensive, integrated and forward-looking external\ntrade policy that makes a stronger contribution to Europe's\ncompetitiveness. It stresses the need to adapt the tools of EU\ntrade policy to new challenges, to engage new partners, to ensure\nEurope remains open to the world and other markets open to European\nbusinesses.
\nThere are two critical and linked requirements for\nEuropean competitiveness. First, having the right internal\npolicies, which reflect the external competitive challenge and\nmaintain openness to trade and investment. Second, ensuring\ngreater openness and fair rules in other markets, in particular our\nfuture major trading partners. Both must be underpinned by\ntransparent and effective rules - domestic, bilateral and\nmultilateral.
\nBased on this analysis, the European Commission\nproposes to build an agenda for action in the months and years\nahead. From autumn 2006 and through 2007, the Commission will set\nout the competitiveness agenda for EU trade policy with a series of\nlinked initiatives:
\nIn the months ahead, the Commission\nproposes:
\nInternally, to\n:
\nExternally,\nto:
\nThe Commission also intends to propose a new\ngeneration of FTAs, if approached with care, can build on WTO\nand other international rules by going further and faster in\npromoting openness and integration, by tackling issues which are\nnot ready for multilateral discussion and by preparing the ground\nfor the next level of multilateral liberalisation. The key economic\ncriteria for new FTA partners should be market potential (economic\nsize and growth) and the level of protection against EU export\ninterests (tariffs and non tariff barriers).
\nWith a GDP of EUR 714 billion in 2005 and trade with\nthe EU at 115.1 billion, ASEAN (with whom negotiations are\non-going) appears to be a priority for the EU. According to World\nBank calculations, the annual average growth rate for ASEAN from\n2005-2025 should be around 4.9% representing a market potential\nof EUR 57 billion for the same period. ASEAN combines high\nlevels of protection with large market potential and they are\nactive in concluding FTAs with EU competitors.
\nIn terms of content, new competitiveness-driven FTAs\nwould need to be comprehensive and ambitious in coverage, aiming at\nthe highest possible degree of trade liberalisation including\nfar-reaching liberalisation of services and investment. A new,\nambitious model EU investment agreement should be developed in\nclose coordination with Member States. Where partners have signed\nFTAs with other countries that are competitors to the EU, full\nparity at least should be sought. Quantitative import restrictions\nand all forms of duties, taxes, charges and restrictions on exports\nshould be eliminated.
\nFTAs should also tackle non tariff barriers through\nregulatory convergence wherever possible and contain strong trade\nfacilitation provisions. They should include stronger provisions\nfor IPR and competition, including for example provisions on\nenforcement of Intellectual Property rights along the lines of the\nEC Enforcement Directive. The EU will seek to include provisions on\ngood governance in financial, tax and judicial areas where\nappropriate. It should also ensure Rules of Origin in FTAs are\nsimpler and more modern and reflect the realities of\nglobalisation.
\nIn considering new FTAs, the EU will need to work to\nstrengthen sustainable development through its bilateral trade\nrelations. It will also take into account the development needs of\nits partners and the potential impact of any agreement on other\ndeveloping countries, in particular the potential effects on poor\ncountries' preferential access to EU markets. In line with its\nposition in the WTO, the EU will encourage our FTA partners to\nfacilitate access by least-developed countries to their market, if\npossible by granting duty and quota free access. Lastly, FTA\nprovisions should be an integral part of the overall relations with\nthe country or region concerned.
\nCONTENT: the purpose of this Communication is to set\nout the contribution of trade policy to stimulating growth and\ncreating jobs in Europe (see INI/2006/2292).\nIt sets out how, in a rapidly changing global economy, the can\nbuild a more comprehensive, integrated and forward-looking external\ntrade policy that makes a stronger contribution to Europe's\ncompetitiveness. It stresses the need to adapt the tools of EU\ntrade policy to new challenges, to engage new partners, to ensure\nEurope remains open to the world and other markets open to European\nbusinesses.
\nThere are two critical and linked requirements for\nEuropean competitiveness. First, having the right internal\npolicies, which reflect the external competitive challenge and\nmaintain openness to trade and investment. Second, ensuring\ngreater openness and fair rules in other markets, in particular our\nfuture major trading partners. Both must be underpinned by\ntransparent and effective rules - domestic, bilateral and\nmultilateral.
\nBased on this analysis, the European Commission\nproposes to build an agenda for action in the months and years\nahead. From autumn 2006 and through 2007, the Commission will set\nout the competitiveness agenda for EU trade policy with a series of\nlinked initiatives:
\nIn the months ahead, the Commission\nproposes:
\nInternally, to\n:
\nExternally,\nto:
\nThe Commission also intends to propose a new\ngeneration of FTAs, if approached with care, can build on WTO\nand other international rules by going further and faster in\npromoting openness and integration, by tackling issues which are\nnot ready for multilateral discussion and by preparing the ground\nfor the next level of multilateral liberalisation. The key economic\ncriteria for new FTA partners should be market potential (economic\nsize and growth) and the level of protection against EU export\ninterests (tariffs and non tariff barriers).
\nWith a GDP of EUR 714 billion in 2005 and trade with\nthe EU at 115.1 billion, ASEAN (with whom negotiations are\non-going) appears to be a priority for the EU. According to World\nBank calculations, the annual average growth rate for ASEAN from\n2005-2025 should be around 4.9% representing a market potential\nof EUR 57 billion for the same period. ASEAN combines high\nlevels of protection with large market potential and they are\nactive in concluding FTAs with EU competitors.
\nIn terms of content, new competitiveness-driven FTAs\nwould need to be comprehensive and ambitious in coverage, aiming at\nthe highest possible degree of trade liberalisation including\nfar-reaching liberalisation of services and investment. A new,\nambitious model EU investment agreement should be developed in\nclose coordination with Member States. Where partners have signed\nFTAs with other countries that are competitors to the EU, full\nparity at least should be sought. Quantitative import restrictions\nand all forms of duties, taxes, charges and restrictions on exports\nshould be eliminated.
\nFTAs should also tackle non tariff barriers through\nregulatory convergence wherever possible and contain strong trade\nfacilitation provisions. They should include stronger provisions\nfor IPR and competition, including for example provisions on\nenforcement of Intellectual Property rights along the lines of the\nEC Enforcement Directive. The EU will seek to include provisions on\ngood governance in financial, tax and judicial areas where\nappropriate. It should also ensure Rules of Origin in FTAs are\nsimpler and more modern and reflect the realities of\nglobalisation.
\nIn considering new FTAs, the EU will need to work to\nstrengthen sustainable development through its bilateral trade\nrelations. It will also take into account the development needs of\nits partners and the potential impact of any agreement on other\ndeveloping countries, in particular the potential effects on poor\ncountries' preferential access to EU markets. In line with its\nposition in the WTO, the EU will encourage our FTA partners to\nfacilitate access by least-developed countries to their market, if\npossible by granting duty and quota free access. Lastly, FTA\nprovisions should be an integral part of the overall relations with\nthe country or region concerned.
\nThe Committee on\nInternational Trade adopted an own-initiative report by Glyn\nFORD (PES, UK) on trade and economic relations with the\nAssociation of South East Asian Nations (ASEAN). The proposed\nagreement with ASEAN forms part of a wider strategy of bilateral\nand inter-regional negotiations with trading partners, set out in\nthe Commission's Communication \"Global Europe: Competing in the\nWorld\" (refer to summary dated 4 October 2006).
\nThis report insists\nthat an EU-ASEAN agreement could produce substantial economic\nadvantages for both parties but that additional measures may be\nrequired to promote an equitable division of such gains. MEPs are\nnonetheless concerned about the slow pace of negotiations. In any\ncase, a Partnership and Cooperation Agreement (PCA), reinforcing\nenforceable human rights clauses, is a prerequisite for the Union\nto conclude an FTA with any country. The proposed FTA must also\nfully respect WTO rules.
\nMEPs believe that\ninter-regional agreements can usefully supplement the multilateral\nsystem, provided they are wide-ranging and ambitious, going well\nbeyond tariff reductions in order to open markets, together with\nthe implementation of technical, social and environmental\nstandards. They urge the parties to reduce progressively or\ndismantle all barriers to trade in goods and services, while fully\nrespecting the differing economic positions within the ASEAN\nregion.
\nIn the context of\nthe EU-ASEAN framework agreement, the Commission is urged to ensure\ntransparency and effective rules for public procurement,\ncompetition and investment, Intellectual Property Rights (IPRs),\nstate aid and other subsidies.
\nA trade and\ninvestment agreement with ASEAN should ensure: the improvement and\nsimplification of rules of origin; the harmonisation of standards,\nincluding product safety, child protection and animal welfare\nstandards; regulatory transparency and simplified bureaucratic\nprocedures; and the elimination of discriminatory taxes.
\nSectoral\nissues: stressing the importance of dismantling non-tariff\nbarriers, MEPs are particularly concerned about restrictions on\nbusiness services (particularly for banking, insurance and legal\nservices). They also ask that priority be given to the effective\nenforcement of IPRs, particularly for design, sound recordings and\nother cultural goods as well as geographical indications and\nappellations of origin. The Commission is called upon to tackle\nbarriers, notwithstanding the right of countries to regulate\nsectors - such as audiovisual - that play a key role in preserving\ncultural diversity.
\nMEPs attach\nparticular importance to the fight against counterfeit\npharmaceuticals, which represent unfair competition and a danger to\nconsumers. They also consider it necessary to focus in detail on\nthe fishing industry, and in particular on the tuna sector, and on\ncompliance with hygiene and health rules in the fishing industry.\nFurthermore, they call for the adoption of international auditing\nand accounting standards as well as measures to combat corruption\nand money laundering. The section of the agreement dealing with\npublic procurement must take account of the varying level of\ndevelopment of the ASEAN members and must respect the right of each\nparticipant to regulate its public services, particularly those\nlinked to basic needs.
\nTrade, investment,\nresearch and scientific agreements should address sector-specific\nissues, such as: low energy light bulbs, the prevention of natural\ndisasters, the tourism sector, the free movement of researchers,\nbusiness people and tourists.
\nThe Committee\nrecommends that the Union's energy policy, with respect to ASEAN\ncountries, concentrate on, amongst others, non-discriminatory\nlicensing and trade conditions relating to energy products, the\ndiversification of energy sources, the elimination of border taxes\non energy products, and mutual agreements on energy\nsaving.
\nCountry specific\nissues: the report draws attention to the position of Least\nDeveloped Countries (LDCs) of the region: Cambodia, Laos and Burma.\nIn the event of these countries wishing to be included in the\nfree-trade agreement with the EU, the Council should revise the\nmandate that it gave to the European Commission. The current\nsituation in Burma makes it impossible for that country to be\nincluded in the agreement. For the other poorer countries who are\nmembers of ASEAN but do not belong to the LDC group, MEPs urge\nflexible arrangements - more or less equivalent to those envisaged\nin economic partnership agreements (EPAs) - to enable these\ncountries to cope with the loss of customs revenue. A resolution to\nthe problem of banking secrecy in Singapore is also essential if\nthere is to be a real prospect of a region-to-region free-trade\nagreement.
\nSustainable\ndevelopment: MEPs consider an ambitious sustainable development\nchapter to be an essential part of any agreement and call for any\nagreement to incorporate binding social and environmental clauses,\ncommitting the parties to ratifying the core International Labour\nOrganisation (ILO) conventions and ensuring their effective\nimplementation, particularly as regards child and forced\nlabour.
\nIn this context, a\nTrade and Sustainable Development Forum, made up of workers' and\nemployers' organisations and civil society representatives, could\nplay a valuable role in ensuring that greater market opening is\naccompanied by rising environmental and social standards. The\nestablishment of a mechanism that could result in ongoing follow-up\nand review provisions, in order to maintain pressure against\nviolations of workers' rights, is also proposed.
\nMeasures that aim\nto combat deforestation and to protect and enhance tropical forests\nare considered to be of great importance. Therefore, MEPs consider\nthat a PCA should only encourage trade in environmentally\nsustainable biofuels and that ASEAN countries should be assisted in\ntheir efforts to tackle illegal logging. In addition,\nenvironmentally friendly products and fair trade goods should have\ntheir tariffs reduced more quickly than other goods and be given\nearly access to the EU market.
\nLastly, MEPs demand\nthat human rights and democracy form an integral part of the\nnegotiations with ASEAN, especially in the PCAs. In this respect,\nthey reiterate the importance that the Parliament attaches to\npolitical and civil rights reforms, and welcome the establishment\nof the Human Rights Body in ASEAN's Charter and its explicit\ncommitment to the strengthening of democracy, the enhancement of\ngood governance and the rule of law, as well as the promotion and\nprotection of human rights and fundamental freedoms.
\nThe Committee\nexpects that the Lisbon Treaty will enter into force before the\nconclusion of the negotiations, and this will remove any doubt\nabout the need for Parliamentary assent for this type of agreement.\nMEPs call on the Commission to make the negotiating mandate more\nwidely available to Parliament and to consult Parliament regularly\nduring the course of the negotiations to ensure that the outcome\ncommands broad support.
\nThe European\nParliament adopted, by 523 votes to 53 with 59 abstentions, a\nresolution on trade and economic relations with the Association of\nSouth East Asian Nations (ASEAN). The own-initiative report\nwas tabled for consideration in plenary by Glyn FORD (PES, UK), on\nbehalf of the Committee on International Trade.
\nThe proposed\nagreement with ASEAN forms part of a wider strategy of bilateral\nand inter-regional negotiations with trading partners, set out in\nthe Commission's Communication \"Global Europe: Competing in the\nWorld\" (please refer to summary dated 4 October 2006).
\nParliament believes\nthat an ambitious agreement will greatly benefit both sides, but is\nconcerned about the slow pace of negotiations. It considers that a\nsuccessful Doha Development Agenda remains the Union's trade\npriority and wishes negotiations with ASEAN to be complementary to\nit. In addition, the proposed FTA has to fully respect WTO rules.\nParliament calls on both sides to give priority in the negotiations\nto the need to stabilise the price of commodities, in particular\nthe price of food, and to approach the issue of agro-fuels with\ngreat caution. It regrets that, at the EU-ASEAN Summit held in\nSingapore in November 2007, certain provisions relating to business\npractices and conduct were not treated in depth, thus inhibiting EU\ninvestment in ASEAN countries.
\nMembers urge the\nparties progressively to reduce or dismantle all barriers to trade\nin goods and services, while fully respecting the differing\neconomic positions within the ASEAN region and the need to ensure\nuniversal, accessible and sustainable public services with\naffordable prices and high-quality standards for all.
\nIn the EU-ASEAN\nagreement, the Commission is urged to ensure transparency and\neffective rules for public procurement, competition and investment,\nIntellectual Property Rights (IPRs), state aid and other subsidies.\nAn agreement with ASEAN should ensure: (i) the improvement and\nsimplification of rules of origin; (ii) the harmonisation of\nstandards, including product safety, child protection and animal\nwelfare standards; (iii) regulatory transparency and simplified\nbureaucratic procedures; (iv) the elimination of discriminatory\ntaxes.
\nSectoral\nissues: Parliament regards the issue of non-tariff barriers as\nof no less importance than tariff reductions and is particularly\nconcerned about restrictions on business services, where a\nreduction in unjustified constraints could lead to ASEAN firms\nhaving access to lower cost, more efficient banking, insurance and\nlegal services. It calls for the effective enforcement of IPRs to\nbe given priority, particularly for design, sound recordings and\nother cultural goods as well as geographical indications and\nappellations of origin. The Commission is asked to tackle barriers\nnotwithstanding the right of countries to regulate sectors - such\nas audiovisual - that play a key role in preserving cultural\ndiversity.
\nMembers attach\nparticular importance to the fight against counterfeit\npharmaceuticals which represent unfair competition and a danger to\nconsumers. They point out that nothing in the agreement should\ncreate legal or practical obstacles to the maximum use of\nflexibilities set out in the Declaration amending the Trade-Related\nAspects of Intellectual Property Rights Agreement (TRIPS agreement)\nand access to medicines.
\nParliament\nconsiders that the agreement should seek to promote increased\ntransparency and accountability with regard to investments made by\nsovereign wealth funds. It expresses concern about the consequences\nof higher rice prices, particularly for poorer households in\nrice-importing ASEAN countries. It also considers it necessary to\nfocus in detail on the fishing industry, and in particular on the\ntuna sector, given the strong socio-economic impact that the\nimmediate liberalisation of tariffs would have on this sensitive\nsector. It urges the adoption of international auditing and\naccounting standards and measures to combat corruption and money\nlaundering. Parliament believes that aspects of the agreement\naffecting public procurement should recognise the varying levels of\ndevelopment of ASEAN members and respect the right of all\nparticipants to regulate public services, particularly those\nrelating to basic needs.
\nTrade, investment\nand scientific and research agreements should address\nsector-specific issues, such as low energy light bulbs,\ncertification of sustainably grown and legally harvested timber\nproducts, the prevention of and recovery following natural\ndisasters, the tourism sector, the free movement of researchers,\nbusiness people and tourists.
\nThe resolution\nrecommends that the Union's energy policy, with respect to ASEAN\ncountries, concentrates, amongst others, on non-discriminatory\nlicensing and trade conditions relating to energy products, the\ndiversification of energy sources, the elimination of border taxes\non energy products, and mutual agreements on energy saving,\nmitigating climate change and reducing greenhouse gas emissions,\nincluding potential reciprocal emissions trading arrangements, so\nas to avoid damage to industries in the Union.
\nCountry-specific\nissues: Parliament underlines that any schedule of tariff\nreductions should take full account of the differing economic\npositions of ASEAN members. Poorer non-LDC members of ASEAN should\nbenefit from flexibilities that are broadly equivalent to those\noffered by the Economic Partnership Agreements to countries with\ncomparable income levels. The Commission is asked to invite\nCambodia and Laos to indicate whether they would wish to be\nincluded in the agreement and, were the reply to be positive, to\nseek a revised negotiating mandate from the Council that would make\nthis possible. Parliament believes that the current situation in\nBurma makes it impossible for that country to be included in the\nagreement. It considers a resolution to the problem of banking\nsecrecy in Singapore, which is blocking the conclusion of a PCA, to\nbe essential if there is to be a real prospect of a\nregion-to-region FTA.
\nSustainable\ndevelopment: MEPs consider an ambitious sustainable development\nchapter to be an essential part of any agreement and call for any\nagreement to incorporate binding social and environmental clauses,\ncommitting the parties to ratifying the core International Labour\nOrganisation (ILO) conventions and ensuring their effective\nimplementation, particularly as regards child and forced labour. In\nthis context, a Trade and Sustainable Development Forum, made up of\nworkers' and employers' organisations and civil society\nrepresentatives, could play a valuable role in ensuring that\ngreater market opening is accompanied by rising environmental and\nsocial standards. The establishment of a mechanism that could\nresult in follow-up and review provisions, in order to maintain\npressure against violations of workers' rights, is also\nproposed.
\nMeasures that aim\nto combat deforestation and to protect and enhance tropical forests\nare considered to be of great importance. Therefore, MEPs consider\nthat a PCA should only encourage trade in environmentally\nsustainable biofuels and that ASEAN countries should be assisted in\ntheir efforts to tackle illegal logging. In addition,\nenvironmentally friendly products and fair trade goods should have\ntheir tariffs reduced more quickly than other goods and be given\nearly access to the EU market.
\nPolitical\nconsiderations: Parliament demands that human rights and\ndemocracy form an integral part of the negotiations with ASEAN,\nespecially in the PCAs. It reiterates the importance that the\nParliament attaches to political and civil rights reforms, and\nwelcomes the establishment of the Human Rights Body in the ASEAN\nCharter and its explicit commitment to the strengthening of\ndemocracy, the enhancement of good governance and the rule of law,\nas well as the promotion and protection of human rights and\nfundamental freedoms. It welcomes elections in Thailand restoring\ndemocracy, and asks the Council to maintain the restrictive\nmeasures against the Government of Burma, to follow the situation\nclosely and, if developments in the country so require, to review\nthose measures. ASEAN members, as well as China and India, are\nasked to put pressure on Burma.
\nLastly, Parliament\nexpects that the Lisbon Treaty will enter into force before the\nconclusion of the negotiations, and this will remove any doubt\nabout the need for Parliamentary assent for this type of agreement.\nMEPs call on the Commission to make the negotiating mandate more\nwidely available to Parliament and to consult Parliament regularly\nduring the course of the negotiations to ensure that the outcome\ncommands broad support.
\n