EU trade chief unveils new commercial strategy

The European Union (EU) on Wednesday proposed a trade policy shift which focused on emerging markets and stamping out protectionism.

EU Trade Commissioner Peter Mandelson on Wednesday presented a trade paper which outlined priorities for the second half of his mandate.

"The core message of today's review is clear: rejection of protectionism at home; activism in opening markets abroad," he said of the paper, which has been adopted by EU commissioners.

The EU can not wait for the resumption of Doha Round multilateral trade negotiations to conquer new markets and must adapt its commercial strategy to face up to the challenge of increasing global competition, Mandelson said.

The key objective is greater access to emerging markets, where European exports are outstripped by those from the United States and Japan, by focusing on getting rid of non-tariff barriers.

The EU will seek commitments from rising economic powers, which are future markets for European products, on matters of legal security, protection of intellectual property rights and transparency in tendering procedures.

These barriers have become the primary source of concern among EU businesses operating on emerging markets and will be the priority of a renewed trade strategy for China, which is due to be presented on October 24.

In order to achieve the ends, Peter Mandelson proposes to reactivate the bilateral approach by negotiating "new generation" free trade agreements with emerging Asian economies like South Korea, the Association of Southeast Asian Nations (ASEAN) and India.

This approach does not contradict the EU's commitment to the Doha Round but is complementary, Mandelson argued.

It should yield more binding commitments from these countries on non-tariff barriers compared with proposals currently on the table in the context of the Doha Round, where efforts are focusing on cutting customs duties, the commissioner said.

The bilateral push comes at a time when the multilateral WTO talks have been derailed due to major differences between the EU and U.S. over how much aid they should be allowed to give their respective farmers.

Mandelson said he strongly supported the so-called Doha WTO round of talks but added "Doha first has never meant Doha alone."

The new trade strategy drew criticism from some non- governmental organizations. "The new emphasis on regional and bilateral free trade deals will undermine multilateralism and calls into question the EU's stated commitment to the World Trade Organization negotiations," said aid agency Oxfam.

"It is astoundingly hypocritical for the EU to call on other countries to open their markets and deal with non-tariff barriers when they have similar barriers in place and continue to pay vast sums in trade-distorting farm subsidies," it said.

Mandelson's call for less protectionism came shortly after EU member states on Wednesday adopted controversial anti-dumping measures on shoe imports from China and Vietnam.

Leather shoes from the two countries will face punitive duties of 16.5 percent and 10 percent respectively from Saturday.

Rejecting the criticism of double-standards, Mandelson said: " If we are going to stand for free trade we have to keep proper defenses against unfair trade."

Source: Xinhua