EUROPEAN COMMUNITIES

By: Karen Bonivento, Mohammed Hamdan

Laura Rodríguez & Daniel Salcedo

TRADE POLICY REVIEWS

TRADE POLICIES

1. Introduction2. Measures directly affecting imports3. Measures directly affecting exports4. Services Sector

INTRODUCTION

Key player in the WTO and a major force behind the Doha Development Agenda (DDA)

Commitments:

•To eliminate export subsidies by 2013•To reduce subsidies in Agriculture by 80%•To significantly cuts its average tariffs.

• Tariffs.• Other charges. • Contingency measures.• Technical regulations and other

technical requirements.• Sanitary and phytosanitary (SPS).• Government procurement.

IMPORTS

Affecting measures

89%

6%

3%1%1%

Ad Valorem

Specific

Compound

Alternate

Per range*

MEASURES DIRECTLY AFFECTING IMPORTS

Tariffs

Non-ad valorem rates apply on agricultural goods , many of which are also subject to TARIFF QUOTAS.• Seasonal tariffs*

Tariffs

MEASURES DIRECTLY AFFECTING IMPORTS

Tariffs

MEASURES DIRECTLY AFFECTING IMPORTS

Positive Escalation

Other charges:

Value-added tax (VAT)VAT on imports is assessed on the

c.i.f value plus duties if any. VAT on domestic products is

assessed on the sale price

MEASURES DIRECTLY AFFECTING IMPORTS

Rates & Procedures vary from country to country

• Some 0.73% of EC imports were subject to contingency trade remedies.

• EC contingency trade remedies are applicable to all imports from third countries except for members of the European Economic Area (EEA)

Contingency Measures

MEASURES DIRECTLY AFFECTING IMPORTS

Anti-dumping (AD) measures

AD duties can only be imposed if they are not against the wider interest of the EC economy

AD duties expire 5 years after their imposition or the conclusion of a review of the measure.

AD Measures in 2008 applied to: China (45) and India & Russia (8)Most of the applied AD duties were ad

valorem and up to 77.6%; Leather footwear from China

Countervailing (CV) measures

Similar to AD Investigations Provisional CV duties imposed for a max. of

4 months Measures were ad valorem duties ranging

up to 53.3% Applied to:

• Chemicals• Pharmaceuticals• Textiles• Some electric systems

US: CV measures on Certain EC Products Cases involve alleged non-recurring subsidies granted to firms prior to a change of ownership

Safeguard measures apply to all products, except for products originated in certain third countries, some of which are not WTO Members, and for textile products.

Imports of textile products are subject to surveillance or to annual quantitative limits.

Transitional product-specific safeguard mechanism against China

Safeguard on Salmon from Chile

Safeguards

Technical barriers to trade (TBT) Protection of human, animal, and plant

health; environment; and national security matters.

2 types of regulations for industrial products: 1. Detailed specific technical requirements

("old-approach" directives); 2. Essential requirements ("new approach"

directives) defined to meet health, safety, and environmental objectivesCanadian Meat and

Meat Products (Hormones)

MEASURES DIRECTLY AFFECTING IMPORTS

• Food safety activities cover the entire food chain, ranging from animal and plant health to labelling of food products, and animal welfare

• the EC's food safety regime is based on five principles

• The sale of food, whether of domestic or foreign origin, is subject to strict sanitary regulations

• Processed foodstuffs that are not of animal origin can generally be imported without a sanitary certificate

MEASURES DIRECTLY AFFECTING IMPORTS

Sanitary and Phytosanitary (SPS)

• The EC's phytosanitary regime covers the monitoring and control of pesticide residues, preventative measures against the introduction and spread of pests and plant diseases in the EC, and the control of internal movement of plants.

MEASURES DIRECTLY AFFECTING IMPORTS

Sanitary and Phytosanitary (SPS)

• The EC is a signatory to the plurilateral Government Procurement Agreement (GPA)

• The EC plays an active role in the work on the GPA

• In 2006, public procurement in the EC corresponded to 16% of EC GDP

MEASURES DIRECTLY AFFECTING IMPORTS

Government Procurement

MEASURES DIRECTLY AFFECTING EXPORTS

Export subsidies

Protection of Intellectual Property

EXPORT SUBSIDIES

Programs1. Export refunds

(Provide by CAP)

2. Sales of stocks3. Producer

financing

Products eligible for export subsidies

• Skim milk powder• Cheese• Other dairy

products• Beef meat• Pig meat• Poultry meat• Eggs• Raw tobacco• Alcohol

• Wheat and wheat flour

• Coarse grains• Rice• Rapeseed• Olive oil• Sugar• Butter and

butter oil• “Incorporated

products"

INTELLECTUAL PROPERTY RIGHTS (IPR)

The EC or the Member States are parties to the World Intellectual Property Organization, conventions and treaties.

The EC has an extensive body of legislation Ensure a better functioning of the internal

market The EC aims to create a single system for

the protection of industrial property rights for single application.

Industrial property Trade marks Industrial Designs Patents Plants varieties Copyright and related rights Geographical indications Enforcement

Services are the dominant economic sector in the EC, accounting for 69.5% of gross value-added in 2007.

Barriers: monopolies that prevent the establishment of service providers from other Member States (e.g. postal services or energy utilities) and differences among them.

SERVICES

Removing barriers to trade in services Helping developing countries to benefit

from trade in services. A more transparent and non-

discriminatory regulatory environment. Preserving public services and cultural

diversity.

SERVICES

Objectives of negotiations on services