EU Trade Policy and CETA

EU Trade Policy and CETA

http://www.youtube.com/watch?v=iioc5xg2i5y

The EU a major trading power European Commission, 2013

The EU a major trading power % of global exports, goods, 2012 % of global exports, services, 2012 EU 15% EU 25% United States 11% Others 42% Others 55% China 14% Japan 5% India 5% China 6% Japan 4% United States 18% Europa, 2013

Share of EU27 (excluding intra-eu trade), USA, Japan and China in world trade in goods (%) Source: European Commission (2013)

Ten major EU export partners (2012) European Commission, 2013

Ten major import partners (2012) European Commission, 2013

Imports EU Trade in Goods (2011) Exports 7.0% 7.9% Agricultural products (Food (incl. Fish) & Raw Materials) Fuels 6.0% 7.5% 6.5% 56.2% 28.9% Manufactures 80.1% Other products EU Trade in Commercial Services (2010) 3.0% Transportation 0.1% 24.2% Travel 24.1% 52.6% 20.2% European Commission, 2013) Other Commercial Services (excl. Government services) 61.6% 14.3%

Major investment partners (2011) European Commission, 2013

EU27 Candida EFTA Russia China Japan South ASEAN Latin Canada USA Other EU27 Can EFTA Russia China Japan Sout ASE Lati Canada USA Other FDI Inflows (2010) (bil. Euros) FDI Outflows (2010) (bil. Euros) 300 250 245 300 250 248 200 150 100 50 0-50 104 8 6 31 80-1 5 60 85 18 172 200 150 100 50 0 146 1 52 39 51 42 15 32 35 29 146 FDI Inward Stock (2010) FDI Outward Stock (2010) USA 21.3% Canada 3.5% Latin America 8.1% European Commission, 2013 Other EU27 Candidate Other 22.8% 24.4% s 13.9% 1.4% EFTA EU27 32.6% 4.5% USA 28.5% ASEAN 5.8% Russia China 2.6% 3.6% Japan 1.3% South Korea 0.8% Canada Latin 3.6% America 2.4% ASEAN 2.5% Candidates 0.2% EFTA 6.4% Russia China 2.5% South Japan 1.7% Korea 4.9% 0.8%

EU trade policy: History Treaty of Rome (1957): an ever closer union among the peoples of Europe. The first common policy. Progressive elimination of internal tariffs by 1969- Formation of a free trade area (FTA) for the EEC with the gradual elimination of tariffs, quotas and other barriers to trade among members. Creation of a uniform tariff schedule applicable to the imports from the rest of the world: formation of a custom union. Single European Act (1986): four freedoms of movement: goods, services, capital and people.

EU Trade policy: Basic features Multilateral Bilateral/ Regional 3 DIMENSIONS The three dimensions do not conflict Unilateral

EU trade policy: Institutional framework European Commission, 2013

New EU trade policy Global Europe Strategy, 2006: an integrated approach to trade policy, linking the internal and external aspects of the EU s competitiveness (EC); Increased market access (tariffs, NTBs); New generation of trade agreements. Europe 2020, 2010: Completion of current negotiating agenda; Deepen trade relations with other strategic partners; Help European businesses access global markets; Create opportunities for investors; More assertive approach to enforcement; Share the benefits of the global economy.

Why a new trade policy? Globalisation; Loss of competitiveness; Shift in global powers; Economic crisis.

Bilateral agreements European Commission, 2013

European Commission, 2013 Bilateral agreements

FTA partners and trade in goods European Commission, 2013

Source: European Commission (July 2012)

Canada s trade policy Run by the Federal Government Canada s Global Commerce Strategy: Pro-trade plan: since 2006: Nine free trade agreements: Panama, Jordan, Colombia, Peru, Honduras, European Free Trade Association (Norway, Switzerland, Iceland, Lichtenstein). Deep economic and trade agreement with the EU; Negotiations with Japan and India; Joined Trans-Pacific Partnership (TPP): Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.

Canada s top export destinations (goods) 2012 EU, DG Trade 2013

Canada s top export commodities (2010) $ millions % Exports 404,834 100.0 Agricultural and fishing products 36,938 9.1 Forestry products 21,851 5.4 Energy products 90,886 22.5 Industrial goods and materials 96,489 23.8 Machinery and equipment 76,095 18.8 Automotive products 56,783 14.0 Other consumer goods 16,428 4.1 Other 9,364 2.3

Services exports top partners (2011) 2006 2007 2008 2009 2010 2011 %2011 Government of Canada, 2013

Government of Canada, 2013 Main services exports

Canada s top import sources (goods) 2012 EU, DG Trade, 2013

Canada s top import commodities (2010) $ millions % Imports 413,833 100.0 Agricultural and fishing products 29,579 7.1 Forestry products 2,648 0.6 Energy products 40,549 9.8 Industrial goods and materials 86,926 21.0 Machinery and equipment 113,878 27.5 Automotive products 68,713 16.6 Other consumer goods 57,771 14.0 Other 13,770 3.3 Government of Canada, 2013

Services imports top partners (2011) 2006 2007 2008 2009 2010 2011 %2011 Government of Canada, 2013

Government of Canada, 2013 Main services imports

EU Canada relations 1976: Framework Agreement for Commercial and Economic Cooperation; Bilateral agreements on various trade issues: 1998: Customs Cooperation Agreement; 1999: Veterinary Agreement; 2003: Wine and Spirits Agreement; 2009: Comprehensive Air Transport Agreement.

EU Canada relations 2012: Canada the 12 th most important trading partner for the EU (1.8% of EU external trade in goods) EU the 2 nd most important trading partner for Canada (9.5% of Canada external trade in goods) Important trading partners in services EU is Canada s second largest source and destination of investment (2009)

EU-Canada trade relations

EU-Canada trade in services Eurostat, 2011

EU-Canada trade in services (2010) Eurostat, 2011

EU-Canada foreign direct investment Eurostat, 2011

EU-Canada foreign direct investment Eurostat, 2011

Comprehensive Economic and Trade Agreement (CETA) October 2008: Joint Study, Assessing the Costs and Benefits of a Closer EU-Canada Economic Partnership: EU GDP increase by 0.08%; Canada GDP increase by 0.77% ($12 billion benefit); May 2009: Launch of CETA negotiations; October 2013: CETA signed.

Comprehensive Economic and Trade Agreement (CETA): Scope Trade in goods: non-agricultural and agricultural Regulatory measures: sanitary and phytosanitary issues; technical barriers to trade Customs procedures and rules of origin Cross-border trade in services, including mutual recognition of professional qualifications Investment

Comprehensive Economic and Trade Agreement (CETA): Scope Central and sub-central government procurement Regulatory cooperation (laws and procedures) Intellectual property Temporary movement of business persons Competition policy and related matters (monopolies and state enterprises) Institutional arrangements and dispute settlement Sustainable development