GLOBAL EUROPE: COMPETING IN THE WORLD
(13715/06)
Letter from the Chairman to Jim Fitzpatrick
MP, Parliamentary Under Secretary of State for Employment Relations
and Postal Services, Department of Trade and Industry
Thank you very much for your Explanatory Memorandum
13715/06. This was considered by Sub-Committee A at their meeting
on 7 November.
The Sub-Committee cleared the document from
scrutiny, as it does not propose any new policy initiatives. The
Sub-Committee were disappointed, however, that a Communication
which faced likely adoption on 13 November only had its Explanatory
Memorandum tabled on 27 October. This seemed particularly disappointing
in this case as the document was produced following considerable
consultation by the Commission and so was anticipated. This short
timescale makes effective scrutiny difficult, and I hope that
you will be able to consider the need for more thorough consultation
once the individual policy suggestions made in this Communication
begin to be brought forward by the Commission in their own right.
The Sub-Committee would have also welcomed sight
of the draft Council Conclusions which you refer to in paragraph
14 of the Explanatory Memorandum. I would be grateful if you could
send details of the conclusions that are adopted by the Council
following the GAERC meeting.
16 November 2006
Letter from Jim Fitzpatrick MP to the
Chairman
Thank you for your letter of 16 November. I
am very grateful to Sub-Committee A for clearing Explanatory Memorandum
13715/06 from scrutiny.
I regret that the timing of our Explanatory
Memorandum left you with a short timescale for scrutiny. Even
though the European Commission had consulted Member States on
their plans for the Communication, they chose not to give us an
opportunity to review the text before its publication on 5 October.
We will, though, strive to ensure that subsequent policy suggestions
brought forward by the Commission as a result of this Communication
reach you with greater time for consideration.
As requested, I enclose a copy of the Council
Conclusions on the Communication. For clarity, I should perhaps
note that it was these Conclusions., not the Communication itself,
which were adopted at the GAERC on 13 November.
5 December 2006
Annex A
COUNCIL ADOPTED
THE FOLLOWING
CONCLUSIONS
"The Council
Welcomes the Commission's Communication Global
Europe: Competing in the World, discussing the external aspects
of Europe's competitiveness and linking external policies to the
EU's broader competitiveness agenda, as presented in the Lisbon
Strategy for Growth and Jobs.
Shares the Commission's analysis on the changing
context of the EU's trade and competitiveness policy, and on the
challenges posed by globalisation. The ongoing transformations
in the global economic order create significant opportunities
for growth and development, but also necessitate rapid and deep-going
adjustments. For the ELT to maintain its competitive position,
it must constantly strive to improve upon its policy and regulatory
framework.
Acknowledges that an effective policy to foster
competitiveness must cover both internal and external measures.
Trade policy can make a significant contribution to growth and
jobs, and must therefore be considered an essential element of
a European policy of competitiveness. Internal and external policies
should work in tandem, in a coherent and mutually supporting way.
Shares the Commission's view on the basic parameters
concerning the future development of the external aspects of the
EU's competitiveness and its recognition of the need for an integrated,
coherent approach to domestic and global challenges.
Therefore considers that:
1. Trade policy must build upon the premise
that Europe's economic prosperity is inextricably linked to that
of other regions of the world. Hence, the answer to growing global
competition is not to protect the EU from fair competition, but
to adopt an increasingly active policy of openness at home and
abroad.
2. Addressing barriers to trade, investment
and business activity in third countries plays a key role in improving
the competitive position of European industries. Our work on trade
barriers must be increasingly broadly based so that it looks at
the whole operating environment of European firms in third markets
and places more emphasis on non-transparent and discriminatory
regulatory obstacles, and restrictions to competition. This is
particularly important for small and medium sized enterprises
(SMEs).
3. It is equally important to guarantee
an effective, secure and non-discriminatory access of European
companies to raw materials, including energy, and to other inputs
to the production process. This underlines the need to promote
open trading regimes in the EU and in third countries, and to
tackle any foreign restrictions to exports that are likely to
harm EU competitiveness.
4. The completion of the internal market
and effective innovation policies at the European level are cornerstones
of European competitiveness and a critical platform for the EU's
success. A well functioning internal market based on clear and
consistent rules is a precondition for the development of successful
global firms. It also serves as a solid demonstration of how barriers
to trade and investment can be eliminated for increasing productivity
and growth. External aspects of competitiveness will have to be
factored in the forthcoming Single Market review, and should be
an integral part of the annual report on the implementation of
the Lisbon strategy.
5. It is important to ensure that external
considerations, including the global position of the EU and the
policies of other countries, are taken into account when setting
key internal policies. The goal must generally be to avoid provisions
in the EU that impose undue burdens on European companies. The
EU must play a leading role in sharing best practice and developing
high quality global rules and standards. To do so effectively
it must actively look for means to improve the compatibility between
its regulations and those of its main trading partners. Progress
in regulatory cooperation can bring about considerable benefits
to all parties and lessen the risks of unnecessary compliance
costs for businesses.
6. In current conditions where innovation
is a key factor in the success of new business, IPR violations
and counterfeiting deprive innovators of rewards for their investment
and risk-taking. An effective protection of intellectual property
is therefore an important priority in global competitive markets.
7. The EU will ensure that the WTO remains
centre stage in the international trading system and the cornerstone
of a strong and rules-based multilateral trading system. Achieving
an ambitious outcome in the Doha Development agenda remains our
first priority and the EU will work intensively to restart the
negotiations as soon as possible.
8. Building on the platform of the WTO and
in parallel to our efforts to resume the DDA negotiations, there
is a need for complementary mechanisms that allow us to continue
to achieve additional improvements in market access and business
environment, particularly with our future major trading partners.
IPR enforcement, public procurement, regulatory cooperation, competition
(including state aid) and investment are all key issues in this
respect.
9. As one of the policy initiatives, the
EU should aim at a new generation of WTO-compatible FTAs that
extend beyond present agreements and build towards future multilateral
negotiations. The agreements should strive for the highest possible
degree of trade liberalisation, taking into account their positive
contribution to the EU's competitiveness and their impact on internal
European policies. The agreements, which should be part of a coherent
framework of the EU's relations with each partner, should include
far-reaching liberalisation of services and investment and should
place special emphasis on the elimination of non-tariff barriers
and on regulatory issues. In setting geographical priorities for
these agreements, economic considerations should play a primary
role, notwithstanding other, political considerations.
10. Based on these criteria, the Council
supports the early launch of negotiations with ASEAN countries,
India and South Korea. For economic reasons but also given their
role in the EU's neighbourhood, negotiations with Russia and Ukraine
would be justified as soon as their WTO accession processes have
been completed. Special attention should be paid to finalising
the EU's ongoing negotiating processes, fulfilling the EU's existing
commitments and to the development of the Transatlantic trading
relationship.
11. In the context ofglobalisation and increasing
openness, special attention must be paid to policy measures that
help European citizens and businesses adapt to these changes.
It is also important to ensure that the positive effects of trade
opening benefit all citizens and are not captured by specific
interests. A broad distribution of benefits through competitive
markets is essential for winning the political argument for change.
12. All future initiatives will have to
take into account the needs of developing countries and the potential
impact of any new policies on them, in particular as concerns
poor countries' access to EU markets, sustainable and economic
development of these countries, and the goal of poverty reduction.
We must work together with our trading partners to improve social
and environmental standards.
Invites the Commission, as appropriate and without
undue delay, to submit proposals on the different new initiatives
to the Council for further discussion. These include the strategy
on China, published on 24 October 2006, a new generation of carefully
selected and prioritised FTAs, proposals on IPR enforcement and
public procurement, a renewed market access strategy and a Green
Paper on trade defence instruments.
Stresses the need for transparency throughout
the whole process and in particular for all initiatives proposals
for negotiating directives to be thoroughly discussed with Members
States. Each FTA negotiation will need a separate proposal for
negotiating directives.
Underlines the importance, for internal and
external competitiveness, of prompt and comprehensive implementation
of the renewed Lisbon strategy.
Invites future presidencies to work across individual
policy domains and beyond the agenda set out in the Commission's
communication, in order to deal comprehensively with globalisation
and its effects.
In the light of the significance of issues concerning
the external aspects of Europe's competitiveness, agrees to revert
to the matter at its forthcoming meetings."
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