European Competitiveness and EU Trade Policy
description
Transcript of European Competitiveness and EU Trade Policy
External Trade
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Marlene Rosemarie MadsenChief Economist Unit
DG TRADE
European Competitiveness and EU Trade Policy
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Global Europe – EUs Trade Policy
Increased importance of trade liberalisation
Results from new study - EU businesses are
doing well
Outline
- Global Europe
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Main objective is to contribute to growth and jobs
An effort to see trade policy as part of the wider
globalisation agenda
To make sure we are addressing the most
important challenges of the global age
To ensure that EU trade policy instruments are fit
for that purpose
Global Europe – EUs Trade Policy
- Global Europe
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Opening up markets abroad
Pushing for Doha Development Agenda
Negotiating FTAs with India, Korea and South
East Asian countries
Market Access Strategy
External dimension of the Lisbon Strategy
Global Europe – main pillars
- Global Europe
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A key part of increasing European competitiveness
A framework towards removing barriers on a global scale
Market Access Database
Benefits all sectors
The New Market Access Partnership
Commission, Member States and EU industry
Identify the barriers that matter the most to EU business
Work together to address them through FTAs, bilateral
negotiations, dialogues or trade diplomacy
Global Europe – market access strategy
- Global Europe
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The financial crisis has turned into a global economic
crisis
Global trade is slowing due to sluggish global demand
and the disruption of trade finance markets
The World Bank forecast of a 2.1% fall in global trade is
looking increasingly plausible (the first decline since
1982)
We know from past global crises that there is a danger
of emergence of protectionist policies. The challenge is
to make sure that this will not be the case this time
Increased importance of trade liberalisation
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The report analysed EUs strengths and
weaknesses in international trade
It did so by examining EU competitiveness by
category of trade through evolutions of EU’s
market share vis-à-vis main competitors
EU is doing well - Performance in the Global Economy based on a CEPII Study
- Global Europe
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Europe is part of global production chains
Europe’s trade performance is remarkable
Europe has strong position in up-market
products
But we should not be complacent – risks
EU leading exporter of services
EU Performance in the Global Economy – main findings
- Global Europe
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the EU has managed to roughly maintain its share of the global market
More important losses for the US and Japan China stands out
Good performance in merchandise trade
World Market Share
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5%
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EU 25
Japan
USA
China% of total world exports by value excluding energy
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EU’s trade balance has largely improved: +€156.4bn in 2007
The rise of €100.7bn since 2000 has partially offset the increasing deficit in energy (+€139.6bn over the period)
Positive development of trade balance for manufactured products
Trade balance for manufactured products
-400.0-300.0-200.0-100.0
100.0200.0300.0400.0
United StatesJ apanChinaEuropean Union
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EU’s overall good performance due to an upgrading of product quality
EU’s Specialisation: Up-market products
World Market Sharefor Up-Market Products
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5%
10%
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EU Japan US China
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2004
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Up-market products = products sold at premium price due to quality, branding and related services
Represent 1/3 of world demand and 50% of EU exports
Not only luxury goods but across the whole range of EU exports (intermediary goods, machines, textiles…)
Represent the only way to uphold EU levels of social protection, employment and wages
EU Specialisation: Up-market products
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Innovation and High-Tech products are key for future competitiveness
EU Market Shares in High-Tech products is below average EU Market Shares for all products
Good performance but the situation is at risk (I)
All major competitors lose market shares except China – but US and Japan lose more market shares than the EU
World Market Sharefor High-Tech Products
(2005)
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EU Japan US China
All products
High-Tech products
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EU has suffered losses of market share on some of the fast growing emerging markets
Good performance but the situation is at risk (II)
EU's Market Share in fast growing markets
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Russia India China Brazil
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EU is the largest exporter of commercial services with 28.3% share of world market (US 19.2% ; Japan 5.7%)
EU’s market share is expanding while US’s is decreasing and Japan’s is stable
Good Performance in Services
World Market Sharein Commercial Services
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EU US Japan China
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EU MS: The Competitive Position
Some MS are specialised in up-market goods and are the main engines of EU exports to third markets, some are specialised in up-market services
Almost all MS are increasing their market share for up-market products
Some (e.g. small MS and new MS) are doing well on extra-EU markets when looking at it in a dynamic way
Some EU15 have developed strong production interlinkages with other MS and in particular new MS. This means that success in EU 15 MS on extra-EU markets is also a success in many EU 10 MS which actively participates in the process (though this is not reflected as extra-EU exports)
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Main comparative advantange
Dynamiccomparative advantage
Manufactures Belgium Finland LuxembourgGermany Ireland Slovakia Sweden, Italy
Czech Rep.Hungary PolandNetherlandsLithuania
Services France, Greece, Estonia, Lithuania, Latvia, Portugal, Slovenia, Spain, UK
Belgium, Netherlands, Finland Sweden
Sectoral Competitiveness – EU member states clustering
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2/3 of extra-EU imports (excl. energy) are inputs => EU as whole relies heavily on global sourcing
Being able to import at a competitive price is crucial for EU competitiveness
Importance of remaining open
country in %
EU 25 65.3Netherlands 73.5 Italy 62.9Poland 72.8 Belgium 60.3Germany 68.4 United kingdom 59.4France 63.5 Spain 56.9
Inputs: equipment goods + intermediate goods + parts and components - primary products excluded
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Conclusions (I)
- Global Europe
EU is the largest trading block (goods, services,
investment) and thus has a major stake and
responsibility in open, transparent and effective
multilateral rules
It is EUs interest to keep trade flowing and
markets open both at home and abroad
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Conclusions (II)
- Global Europe
EUs good performance in a very competitive
environment is very much due to export of up-market
goods and services
Innovation remains a key component of EU
competitiveness but is also a potential risk in future
=> Internally, calls for an increase of investment in
innovation and skills; externally, justifies strong
emphasis on IPR protection
EU weak performances on some fast growing markets
=> strong support to FTAs under negotiation
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Conclusions (III)
- Global Europe
We are currently facing a major economic crisis
The EU’s overall sound competitive position makes it
relatively well equipped to face the crisis but our
specialisation in up market products and equipment
goods may also create some challenges
Reinforce the need to keep global markets open. Trade
should be part of the solution to the crisis. We must
ensure that:
- The G20 commitment on a protectionism standstill is respected
- The DDA is finalised (the value of the deal has greatly increased)
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Thank you !
Contact:
[email protected] CommissionDG TradeCHAR 07/951049 BruxellesBelgium