Strengthening the global multilateral system
“In the current very challenging international environment with uncertainties about the new US administration’s trade policies the informal EU trade ministers’ meeting just concluded here strongly supported strengthening the current global multilateral system and seeking new bilateral agreements”, Chris Cardona, minister for the Economy told journalists last Friday.
Reviewing the meeting’s outcomes at a press conference held in the Grand Master’s Palace the minister said that “while the TTIP (Transatlantic Trade and Investment Partnership) is frozen we await a solid outline of US goals and plans for trade with the EU. There are risks for the international system if US takes extreme action such as pulling out of the World Trade Organisation. Future transatlantic relations should be both in the EUs and the US’s mutual interest to avoid disruptions in transatlantic trade. “
Calling for an introspective analysis of trade challenges also coming from within the EU he emphasised the EU ministers’ support for trade being not an end in itself ”but a tool resulting in economic benefits for EU citizens. Our priorities will be safeguarding a level playing field and the right climate to create prosperity and more jobs with emphasis on catering for SMEs as well as developing nations. Protectionism will lead to a downward spiral.”
The European Commissioner for Trade Cecilia Malmström also hailed the ministers’ strong support for an ambitious EU trade negotiation agenda, currently involving talks with Japan, Mexico, the MERCOSUR block (10 Latin American nations) Indonesia, the Philippines with negotiations soon to start with Australia, Chile and New Zealand. “EU trade policy has been very successful, we have been able to negotiate good trade agreements speaking with one voice; we are an attractive partner with quite some leverage”.
At the Thursday evening dinner discussions with the World Trade Organisation’s Director-General Roberto Azevedo focused on plans for the next WTO ministerial in Buenos Aires, Argentina in December. “Talks were very constructive. We are leading discussions framing the agenda, on issues such as fisheries, domestic support system, e-commerce,” Commissioner Malmström indicated.
In answer to a question by The Malta Business Weekly relating to Mr Azevedo’s call last June (as reported in this paper’s 7 July 2016 edition) for WTO rules to be reviewed for compatibility with the Paris Agreement on Climate Change (which entered into force on 4 November last year), the Commissioner replied that “I do not expect a long discussion on the issue, I don’t think the WTO is the right place to discuss it, there are other fora where it can be discussed.”
Commission proposals for a Multilateral Investment Court were also supportively reviewed by ministers. This body could be modelled on provisions of the recently adopted (but awaiting ratification) EU-Canada Comprehensive Economic and Trade Agreement, according to the Commissioner. “EU is reaching out to other nations for support for the idea and the Commission will request a negotiating mandate from the Council,” she stated. “Currently there are 3,400 investment dispute settlement agreements (half by the EU) and similar cases receive differing judgements by ad hoc judges. The proposed Court would have its own pool of independent judges and also have oversight of current agreements.”
A new methodology for antidumping rules issued by the Commission last autumn was another key item on the agenda. According to Minister Cardona and Presidency background documents, Malta aims for a Council position on the proposal this spring, with work to include an EU Trade Defence system which must be WTO-compatible, robust in the face of legal scrutiny, predictable for EU operators and which can deal with international trade fluctuations. The goal is for an effective and balanced anti-dumping tool where reports strengthen the ability of the EU industry operators to use the new methodology in a manner which is similarly successful to the current approach, is non-discriminatory and enhances free and fair trade.
“I hope that the Council will be ready to enter the trialogue (with the European Parliament and Commission) : the proposal is country neutral not giving market economy status to any country”, the Commissioner added.