Home /12 KEY POINTS FOR MAKING EU FREE TRADE AGREEMENTS MORE EFFECTIVE

12 KEY POINTS FOR MAKING EU FREE TRADE AGREEMENTS MORE EFFECTIVE

Submitted by christian on Tue, 09/20/2016 - 11:22
  1. Business needs to be at the forefront of an efficient and ambitious EU trade policy with the primary objective of improving conditions to invest and trade.
  2. The EU must stay focused with the primary objective of providing EU companies and particularly SMEs with new and better business opportunities in third markets.
  3. Necessary resources need to be allocated to DG Trade to accomplish all required tasks in an effective manner.
  4. The EU should not jeopardize its negotiation objectives by disclosing too much information that puts it at a disadvantage as compared to its trading partners.
  5. While tariffs are important, there is a need to effectively address non-tariff measures that prevent companies particularly SMEs from taking full advantage of existing business opportunities. More than simple free trade agreements, business looks for long term partnerships. Business needs “living agreements” that go beyond the negotiations‟ conclusion. This means having mechanisms embedded in the agreement to ensure that regulators on both sides cooperate and work together in the future to avoid losing the gains obtained during the negotiations. Improved access to public procurement markets is essential for EU business. EU companies both in goods and services should be offered the possibility to compete on equal footing with domestic suppliers.
  6. While ensuring that free trade agreements are submitted to democratic scrutiny and are consistent with the existing EU legal framework, there is a need for streamlining the procedures leading to adoption (e.g. legal scrubbing and translation), making them more efficient. This will bring the benefits of trade liberalisation faster.
  7. ‘Ex-post” assessments of concluded agreements could help promote the benefits and also improve efficiency and preference utilisation.
  8. The EU should have efficient tools to address unfair trading practices as well as protectionist and discriminatory measures against European companies. This includes having effective Trade Defence Instruments (TDIs) to ensure that EU companies are able to uphold their rights and restore fair market conditions when distortions occur. The current “market access partnership” needs also to be extended and reinforced  to include the implementation of bilateral trade and investment agreements and at the same time address barriers in countries not covered by any agreement.
  9. An efficient investment policy needs to make sure that EU investors are adequately and properly protected abroad. Bilateral Investment Agreements are designed to protect investors from the abuse of States‟ regulatory powers that may prevent investors from their legitimate rights. The European Commission should conduct a proper impact assessment evaluating the consequences of both inflows as well as outflows of investment between the EU and its trading partners before presenting proposals to them.
  10. Trade and investment agreements should not be used as substitute to other multilateral agreements specifically covering social and environmental standards. A multilateral approach is best to ensure consistency and harmonisation for promoting a level playing field.
  11. The EU needs to successfully conclude and implement ambitious trade and investment agreements with third partners. This will generate more opportunities for EU companies to promote high standards when they trade and invest abroad.
  12. A good balance has to be achieved between promoting sustainable value chains, existing business models and companies´ competitiveness. There is a need to prevent undue bureaucracy and reporting, avoiding duplication for instance by mutually recognising or aligning verification systems. This is even more important for SMEs that struggle with a lack of resources and can be very negatively impacted by the increased compliance costs. Voluntary approaches have the merit of being more flexible, therefore adjustable to different value chain structures and business models. At the same time they have higher success rates as companies feel more engaged and committed. Moreover to be effective the European Union must ensure that goods and services supplied in the internal market are in line with high standards and that an effective and uniform surveillance system is in place including the EU‟s external borders.
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12 KEY POINTS FOR MAKING EU FREE TRADE AGREEMENTS MORE EFFECTIVE

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