EFTA FREE TRADE RELATIONS
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1 EFTA FREE TRADE RELATIONS Relations with the rest of the world Brussels, Monday 4 December 2017 By Martin Zbinden, Deputy Secretary-General, EFTA Secretariat
2 Agenda EFTA free trade network The EFTA FTA agenda, drivers and priorities Future outlook for free trade relations
3 Global trade relations EFTA FREE TRADE NETWORK
4 EFTA trade relations In a historical perspetive Set up to manage trade within Europe, to secure equal terms and avoid discrimination EFTA-Spain trade agreement ( ), the first EFTA trade agreement 1990s: Focus on developing trade relations with partners in the Mediterranean and Central and Eastern European countries - transitional FTAs before EU membership Future of EFTA in the early 1990 s was uncertain possible EU membership for Norway, Switzerland From 1995 current EFTA membership as well as current WTO framework established Decision to negotiate with partners globally from late 1990 s Trade block as a result of historical development EFTA States have found common ground as highly prosperous economies that are greatly dependent on trade, like-minded in many trade policy areas
5 EFTA free trade network 27 FTAs with 38 countries and territories
6 Expansion of network Existing: 27 FTAs with 38 countries and territories: Europe, Latin America, Canada, Northern and Southern Africa, Middle East, North and South East Asia Bilateral (not EFTA): Faeroe Islands, Japan, China Ongoing negotiations Ecuador India Indonesia Malaysia Mercosur Vietnam Joint Declarations on Cooperation Mauritius Mongolia Myanmar Pakistan Moldova Negotiations on hold Algeria Honduras Russia/Belarus/Kazakhstan Thailand
7 Facts and figures DRIVERS FOR EFTA TRADE RELATIONS
8 Drivers for EFTA trade relations Economic/commercial considerations Increase efficiency, promote competition, strengthen trade liberalisation, growth potential Secure market access and avoid discrimination Level playing field with other competitores (such as EU, USA, Japan, China) Political considerations In some cases politically important to help secure economic integration Access to emerging markets Open new markets diversify exports Competitive advantages As a group, more economic and political weight
9 The EFTA FTA agenda Liberalisation of trade in industrial goods and seafood Tailor made liberalisation and protection for agriculture Facilitate investment, trade in services, government procurement Protection of intellectual property rights Rules on competition, trade and sustainable development Photo: EFTA. From the EFTA Ministerial in Longyearbyen on 26 June 2017.
10 Focus areas in EFTA FTAs Traditionally, EFTA FTAs focused on trade in goods: Tariffs Rules of origin Competition Intellectual property rights Technical cooperation Modern EFTA FTAs also include: Trade in services Investment Government procurement Sanitary and phytosanitary measures (SPS), Technical barriers to trade (TBT) Trade facilitation Sustainable development
11 EFTA global trade
12 Exports of goods to FTA partners 16% 14% 12% 10% 8% Switzerland/Liechtenstein Norway Iceland EFTA 15.6% 12.4% 6% 6.0% 4% 2% 4.2% 3.0% 1.6% 3.6% 0% 0.3% Norwegian and Icelandic exports more oriented towards the EU Trade with FTA partners has grown at a faster pace with FTA partners Similar development for services trade and investment flows
13 Opportunities and challenges FUTURE FOR FREE TRADE RELATIONS
14 Future of free trade agreements Low expectations of significant progress in WTO Ever-growing network of FTAs ( spaghetti bowl of rules) Increased focus on regional agreements Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP), Regional Comprehensive Economic Partnership (RCEP) Uncertainty caused by changes in US policy TPP continues without the US, uncertainties TTIP and WTO New actors seize initiatives China, Japan, Regional Comprehensive Economic Partnership (RCEP)
15 Some reflections on the future of FTAs for EFTA Many of the current negotiations are challenging India, Vietnam, Mercosur, Malaysia Ongoing attempts to modernise and expand older agreements Turkey possible first success; Mexico, Chile, SACU, Canada Liberalization versus protection Agriculture, a significant stumbling block both for concluding new agreements and modernising older agreements e.g. USA, Australia, New Zealand, Canada, Mexico, Mercosur Limitations related to movement of natural persons, sevices mode 4 Reviewing EFTA approaches in certain sectors trade in goods/agriculture, rules of origin, trade facilitation, services and investment
16 Who is left to negotiate with? EFTA's key trading partners among the remaining third countries (values in million USD),
17 Thank you EFTA website: Photo: EFTA. From the EFTA EEA Introduction Seminar 7 February 2017.
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