Local view for "http://purl.org/linkedpolitics/eu/plenary/2007-03-14-Speech-3-323"
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"Mr President, I do not think I have ever been asked to reply, in any Parliament in which I have been President-in-Office, to an opening question or a speech with which I have agreed more than the speech I have just listened to. In terms of its description of the spirit, purpose and context of this exercise, I must say I thought the honourable Member captured in every respect what we are doing most accurately and well.
The EU process is complaint driven. We act only when EU industry can provide sufficient evidence that they are threatened by unfair trade, but we defend European production only against unfair trade, and we are bound by law to ensure that any trade defence measure is truly in the wider European economic interest. We are prudent and we are restrained but, above all, we are objective and dispassionate. A number of questions have gone right to this issue of making sure that TDI is effective and serves Europe’s growth and competitiveness agenda.
As you know, this review is part of the global Europe framework policy that I launched last year, which is explicitly intended to put EU trade policy at the service of this growth and job strategy. Beyond saying that, I think TDI can and should be part of our wider strategy for ensuring that EU companies compete on a level playing field internationally. I think it is for stakeholders to suggest how well the system is working to that end, and that is the purpose of the review.
The question about the effectiveness of our measures is a good one. The possibility of review of trade defence measures always exists and measures cannot be extended without clear evidence that they are functioning as intended. The Commission also undertakes internal analysis to ensure the effectiveness of its work. DG Trade has recently started to analyse the impact of trade defence measures on certain companies and sectors. A credible TDI system has to be based on this sort of analysis.
A question was asked about public information and about the results of the consultation process. As you know, the Commission has very clear rules on the transparency of decision-making. Some of you may have attended the seminar on the Green Paper that took place only yesterday in Brussels. This event was open to the public and relayed on the website. Unless a contributor requests anonymity, we are publishing all responses to the Green Paper on the website of DG Trade. The whole process has been totally transparent.
Finally, on cooperation and dialogue with Parliament: you know that I have constantly appeared before you on all important trade policy matters, and I will continue to do so. Parliament has a very important role in the TDI reflection process. Your report will be central to the ongoing review process, and I will study its recommendations very closely.
I thank you for hearing me again today and I look forward to being back here again soon to discuss any and every issue of trade policy, on which I delight in remaining answerable to this House.
The only stage at which, I have to say, I somewhat part company is when he asks me why our services – DG Trade – are applying new rules before the conclusion of the review. I have absolutely no idea what instances or issues he is referring to, and I would be pleased to hear because I do not know of any.
On 29 May last year, I informed the European Parliament of the necessity to review our trade defence instruments. I am pleased to be able to be back here and to update you on this process. We are now coming to the end of the consultation that we launched in December. That consultation solicited opinion from Member States, business, NGOs, individuals and, of course, the European Parliament. What it did not do in any way was question the importance of trade defence instruments. TDI is necessary to combat unfair trade in an international economy that has no international equivalent to the competition rules we take for granted in our own domestic economies. TDI, in my view, is the flip side of an open economy. It is the guarantee that others will not abuse that openness by trading unfairly. The Green Paper asks if we could use TDI better, if our tools have adapted to a changing global economy and whether our rules could be clearer and operate more transparently.
I think the justification for such an exercise is pretty obvious. The last review of our trade defence instruments was in 1996, and a lot has changed in the ways EU companies operate and as regards the role of global supply chains in our economy. Many more EU companies now produce goods wholly or partially outside the EU for import into the EU. These changes challenge traditional understanding of what constitutes EU production and the EU’s economic interests. They make a definition of European workers’ interests harder to write, as cases are more complex. Because these interests overall are those in which trade defence is rooted, that is good reason to assess the way we work and the way those rules operate.
But the Green Paper launched a consultation; it contains no recommendations for reform and is not intended to. It puts forward a set of questions. I have repeatedly emphasised that this is an open process and I have no preconceived ideas. There was a question asked of me about the intentions behind the six categories of question in the consultation paper. They are designed simply to put the various issues in context. Some are linked to the impact of globalisation on our trade defence system. Others, especially those related to transparency, were raised by stakeholders and experts with whom I had informal discussions in July last year.
So there are no intentions beyond the desire for intelligent debate and to rebuild the consensus and solidarity that has underpinned TDI and has come under strain in some recent cases. I fully echo the honourable Member’s initial observation: we need to replace national selfishness with European solidarity, and that is what I hope to rebuild through the process of this review.
I do not come to you today with substantive proposals because that is not my role at this stage. Right now, we are listening. The scope of any proposed changes will depend on what we hear. Somebody asked how this review fits with our attempts to reform anti-dumping rules in the WTO. The honourable Member reflected that question. Actually, it is a rather good question. It is vital to push through the WTO to ensure others match the kind of standards we apply to ourselves. We are doing that and we will keep doing that in the DDA negotiations.
But EU legislation on TDI already goes beyond WTO requirements in many ways. The most obvious examples are the compulsory lesser duty rule and the Community interest test which we apply in all investigations. These are rules we introduced because they make the system work better in the wider EU interest. Of course we will push others to adopt similar rules, but reform at the international level is difficult and some of our key partners are, frankly, stubborn. So long as our refinements do not put us at a competitive disadvantage, so long as they reflect the EU’s economic interests, why should we not pursue further reform?
That point relates to the question about the EU’s general posture on anti-dumping. Are we protectionist or do we follow a ‘response and defence’ approach? In my view, protectionism is the shielding of a domestic industry from foreign competition, from fair competition – tough competition, yes, but fair nonetheless. That is not the intention of EU TDI policy and I will, of course, remain vigilant on that. We are not going to see our trade defence instruments turned into measures to protect EU industry from fair, legitimate competition. A protectionist does not recognise the difference between tough competition and unfair competition. We do. Our system does. That is the difference between protection and protectionism."@en1
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