The European Commission has today adopted a Green Paper to launch a reflection and public consultation on the application of the EU Trade Defence Instruments in a changing global economy. This public reflection process forms part of the Commission’s new Global Europe strategy for European competitiveness. The launch of the Green Paper today will be followed by a three month stakeholders’ consultation.
EU Trade Commissioner Peter Mandelson said: “Acting against unfair trade is an essential political and economic part of defending free trade and European competitiveness and people’s jobs. In a changing global economy, we need to be sure that our trade defence instruments and our use of them take account of the new realities of globalisation.”
Background
The European Union, like most importing economies applies a system of trade defence instruments or Anti-Dumping, Anti-Subsidy and Safeguard measures to defend European producers against unfair trade and dramatic shifts in trade flows.
The Commission Green Paper does not question the fundamental value of trade defence instruments, but invites a public reflection on how the EU can best use them in a changing global economic context to protect jobs and growth. In the past decade there have been far-reaching changes in the structure of both the global and the EU economy. Many EU companies now produce goods outside the EU for import into the EU, others have outsourced some steps in the production process, or operate supply chains that stretch beyond the EU market. These changes challenge familiar understandings of what constitutes EU production and the EU’s economic interests. A reflection process can help to ensure that EU Trade Defence Instruments are fully adapted to changes in the global economy and serve the overall economic interest of the EU.
Some key issues raised by the Green paper include:
• The credibility of Trade Defence instruments rests on the perception that they are used in the general economic interest of the EU. The review asks if rules, while protecting the producers and workers in Europe need also to take further account of the reality of outsourcing production by European business who then import to the EU.? Do we need to review the way that consumer interests are taken into account in trade defence investigations? What about importers and retailers?
• Within WTO rules,
• Effective transparency is vital to the credibility of trade defence instruments. EU rules represent a balance between openness in managing investigations and the need to respect the confidentiality of commercial information. The review asks if the transparency of the trade defence process could be improved.
• The review asks if there are particular obstacles to small businesses participating in trade defence investigations, and if so, how we might address them.
The period of consultations will extend until the end of March 2007. Following this public debate the Commission will communicate the results and, if appropriate, propose further action.
To read the full Green Paper and follow the public consultation visit:
http://ec.europa.eu/trade/issues/respectrules/anti_dumping/comu061206_en.htm
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