Massimiliano Di Pace1 EU TRADE POLICY Eu has exclusive competence on Trade policy (art. 3 TfUe) This means that every decision on this subject cannot be.

Massimiliano Di Pace 1

EU TRADE POLICY

Eu has exclusive competence on Trade policy

(art. 3 TfUe)

This means that every decision on this subject cannot be taken by member States

Member States can only take part to decision process in Eu Institutions

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EU TRADE POLICY

The legal fundamental rules on Eu trade policy are in articles 206-207 of TfUe

The main aim of Eu trade policy, as stated in art. 206, is to “contribute, in the common

interest, to the harmonious development of world trade, the progressive abolition of restrictions on international trade and on

foreign direct investment, and the lowering of customs and other barriers”

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EU TRADE POLICY

Art. 206 explains also why trade policy is an exclusive competence of Eu

Actually this is due to the “establishing a customs union”

The custom union is a consequence of a single market

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EU TRADE POLICY

The single market implies the free movement of goods, services, persons, capital

Once a product has entered the single market, it can circulate freely

If custom rules (i.e. tariffs) are different, importers in Eu can have reasons to prefer a

custom post instead of another

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EU TRADE POLICY

This would represent a distortion for the single market

Art. 207 states the principles of Eu Trade policy

“The common commercial policy shall be based on uniform principles”

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EU TRADE POLICY

These uniform principles regard:- changes in tariff rates- conclusion of tariff and trade agreements- foreign direct investment- achievement of uniformity in measures of liberalisation- export policy - measures to protect trade such as those to be taken in the event of dumping or subsidies

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EU TRADE POLICY

Furthermore the common commercial policy has to be conducted in the context of the principles and objectives of the Union’s

external action

This implies that better conditions for entering the single market will be recognised to countries in strict relationship with Eu

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EU TRADE POLICY

The measures defining the framework for implementing the common commercial policy

are decided by European Parliament and Council, acting in accordance with the

ordinary legislative procedure

The ordinary legislative procedure places Council and Parliament on the same level

(art. 294)

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EU TRADE POLICY

Negotiations in the framework of Wto and for bilateral agreements are handled by the Commission, authorised by the Council,

which provides directives, proposed by the Commission itself

The Commission report regularly to the Council and to the European Parliament on

the progress of negotiations

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EU TRADE POLICY

The agreements are approved by Council by a qualified majority (55% of the members of the Council representing the participating member

States, comprising at least 65 % of the population of these States)

In some cases it is required the unanimous approval of member countries in Council

(i.e agreements in the field of trade in social, education and health services)

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EU TRADE POLICY

Eu Trade policy is focussed on implementing the Wto rules

Eu believes that a system of global rules is the best way to ensure that trade between

countries is fair and open

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EU TRADE POLICY

Eu trade policy is engaged in participating to Doha development round

In this framework Eu’s stance is the following

Eu supported the agenda of the Doha round, which is much broader than past global trade negotiations and it is specifically targeted at addressing the needs of developing countries

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EU TRADE POLICY

Eu accepts that the focus of negotiations is on:

- reforming agricultural subsidies

- improving the access to global markets

- ensuring that new liberalisation in the global economy respects the need for sustainable economic growth in developing countries

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EU TRADE POLICY

The Eu priorities in the Doha Round are as follows:

1) As far as market access for industrial goods is concerned, Eu wants to create significant new trade flows by cutting tariffs in both developed countries and the growing emerging economies such as China, Brazil and India; the goal is to create new trade between developed countries, but also between developing countries

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EU TRADE POLICY

2) for agriculture sector Eu is committed to an agreement that reforms farm subsidy programs throughout the rich world in line with the Eu's wide-ranging 2003 reform of the Cap (Common Agricultural Policy); as part of the Doha round, Eu has offered to cut farm tariffs by 60%, reduce trade distorting farm subsidies by 80% and eliminate farm export subsidies altogether; Eu also wants to see new market access opportunities for its own processed agricultural exports

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EU TRADE POLICY

3) in market access negotiations for the services trade, Doha round should bring considerable and real market opportunities for business as well as benefits to consumers world-wide; Eu does not seek general deregulation or privatisation of sectors where principles of public interest are at stake, and it is also committed to defending the right of Wto members to promote cultural diversity

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EU TRADE POLICY

4) Eu wants the Doha Round to agree a package of development measures including: - a special agreement to address trade distortions caused by subsidies to cotton farmers in developed countries- the extension of unlimited markets access to all Least Developed Countries by as many importing countries as possible- a new global package of 'aid for trade' assistance to help the poorest build the capacity to trade- special measures to help the poorest countries

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EU TRADE POLICY

5) Eu is contributing to achieve an agreement on a new set of rules governing the use of trade defence instruments, so that they are not abused, and a complete update of the Wto's rules for trade facilitation (i.e standard practice for customs and other border related procedures)6) Eu also wishes to use the Doha round to improve the protection of geographical indications (i.e. special legal identity given to products like Parma Ham and Roquefort cheese that are closely linked to a particular place and tradition of production)

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EU TRADE POLICY

The ongoing deadlock is due also to the stance of Eu relating to the precise terms of a

“special safeguard measure” to protect farmers from surges in imports

As a matter of fact Cap cannot be wiped off abruptly, and Eu looks for mitigation of

impact on Eu farmers of new rules

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EU TRADE POLICY

The Eu is firmly committed also to the promotion of open and fair trade with all its

trading partners

In addition to the Wto's multilateral negotiations, Eu concludes bilateral

agreements and devises specific trading policies with third countries and regional

areas

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EU TRADE POLICY

Bilateral trade relations are about agreement on custom unions, free-trade, association, co-operation

and partnership

Countries which have bilateral trade agreements are Algeria Argentina Australia Belarus Brazil Canada

Chile China Egypt India Iran Iraq Israel Japan Jordan Kazakhstan Korea Lebanon Mexico Moldova Morocco New Zealand Norway Pakistan Occupied Palestinian Territory Paraguay Russia South Africa Switzerland Syria Taiwan Tunisia Turkey Ukraine

United States Uruguay