We Should Continue To Dismantle Barriers To Trade Inorder To Create New Opportunities For Our Businesses. 

EU Trade Commissioner

The next year will be crucial if we are to achieve lasting recovery from the current economic downturn. The attention of governments in Europe and elsewhere has rightly focused on bolstering economies to safeguard jobs and growth. The situation has been largely stabilised through concerted fiscal stimulus and other measures. Steps have been taken to stop the financial meltdown from re-occurring, by seeking to strengthen economic surveillance and financial supervision.  

The European Commission has played a strong role, giving impetus for action, coordinating the response and ensuring that the European single market is respected. What we must do now as a matter of urgency is get trade moving again to deliver jobs and growth. The alternative – introspection and protectionism – would serve only to create a climate where economic recovery would be slower and more difficult to deliver.  

I have embraced the challenge to make sure that the EU and our trade partners stay open for business and seek to discover new trade opportunities. In a global economy, being a part of the world's largest trading bloc gives us the necessary economic weight to make trade policy that really delivers for business and citizens. The EU stands for economic openness that has delivered prosperity for our citizens and for our trading partners. As we move forward to economic recovery, we should remind ourselves of the following.  

We must continue to combat protectionist tendencies at home and abroad. Governments should focus on future viability and sustainability of businesses, fostering structural change, through training, through research and supporting innovation. However, they must guard against the temptation to simply prop up industries. There is also a strong risk that countries could raise barriers to trade, either through higher tariffs, quantitative restrictions or new non-tariff barriers. Leadership and cooperation in the G20 and the World Trade Organisation continue to be crucial to guard against such counterproductive tendencies.  

We should continue to dismantle barriers to trade in order to create new opportunities for our businesses. Nothing will do this better than completing the Doha Round of world trade talks, which would also of course provide an insurance policy against future protectionism. The EU also stands to gain from other ambitious deals. For example, a free trade agreement between the EU and South Korea would provide substantial market access opportunities for both sides, including industries such as machinery, chemicals, pharmaceuticals, textiles and footwear, as well as services. Negotiations are under way for a comprehensive economic agreement with Canada that would boost both our economies, and we are engaged in talks for trade deals with emerging markets stretching from India to Central America.  

To take advantage of the new opportunities arising, our companies need access to adequate trade finance. Finance is the lifeblood of international trade, and there is a serious shortfall at the moment. This is a particular problem for small and mediumsized enterprises, in Europe and especially in developing countries. The EU has backed international action, and the G20 meeting in London took decisive steps to increase trade finance.  

The European Union is also leading greater international cooperation on trade. There are new issues that need to be tackled – problems in areas such as investment, public procurement, competition, enforcement of intellectual property rights and access to resources. Non-tariff barriers are shaping up to be the greatest hurdles to overcome in the future as we continue to make the most of trade relationships. The European Commission has market access teams in about thirty key markets, both to identify trade barriers before they appear and tackle existing obstacles to trade. We will continue to seek the most effective ways to assist European companies on the ground, for instance with our IPR Helpdesk in China and our EU Business Centre in India. Greater international cooperation also means better equipping developing countries to take full advantage of the economic recovery when it comes. Meeting our commitments on trade facilitation and Aid for Trade is central to this goal. The European Union is also seeking to foster regional integration and economic development through lasting and deep new trade and economic relationships with African, Caribbean and Pacific countries.  

These are vital elements of our response to the economic crisis. Trade has been the key generator of economic growth in the past decades, and it is a vital component of economic recovery. Trade leads the way for new technologies and investment to flow where they are most needed. We must act decisively to lay the foundations for future growth.