ERU, Alm.del - 2011-12 - Bilag 89: Handels- og investeringsministerens talepapir fra den handelspolitiske konference d. 8/12-11, Handels- og Investeringsministeriet

Thank you, Lars, for the introduction – and thank you ladies and gentlemen forbeing here today. I would like to welcome all of you to this conference on thefuture trade policy of the European Union. A special welcome to our key notespeaker, Trade Commissioner Mr Karel De Gucht. It is a privilege to have youwith us!

Before I begin my speech, I have an important message to convey. It is amessage about Europe and about where we stand at this particular moment intime – three weeks before Denmark takes over the EU Presidency – with regardto the economic crisis.

Today and tomorrow EU-leaders will meet in Brussels to discuss the crisis. Themeeting is crucial – not in the trivial or inflated sense of the word like it oftenappears in the media. I use the word crucial in the literal sense. Meaningextremely important! Depending on the concrete outcome, the summit todayand tomorrow could have long-lasting implications for the level of prosperityenjoyed by Europeans.

This is not the average EU summit. It is not about some obscure rules forqualified majority voting or a declaration about future co-operation with thirdcountries. It is a summit about what kind of economic future you and I, ourchildren and their children are going to have. Will they be able to enjoy thesame right to decent living standards and the same level of social security thatmy generation has enjoyed? Will they have the same opportunities to pursuetheir dreams and aspirations? Opportunities that exist for the vast majority ofEuropeans because of welfare societies providing free education, free healthcare and a helping hand to the unemployed. Today – that is not a forgoneconclusion.

And that is – in a nutshell – what I mean by “crucial”. So far, the European debtcrisis has caused six democratically elected governments to fall. Greece,Slovakia, Italy, Spain, Portugal and Ireland. The crisis has prompted someexperts to ask, whether European politicians hoping to get re-elected arecapable at all of implementing the necessary structural reforms to regain marketconfidence and public trust in our welfare model. To implement necessary, butpainful reforms is that only a job for unelected technocrats, who don’t have toface the voters? I hope not.

Just like all of you, I hope that today and tomorrow’s meeting in Brussels willproduce results that are sufficiently convincing and sufficiently substantial togive Europe a new beginning. A new beginning that will allow us to answer thecurrent question marks hanging over the economic future of Europe with anaffirmative yes.

Let me add, that tomorrow´s result will also be an indication on Europeancapacity to deal with climate change. It is imperative that we succeed withcommon solutions to common challenges – and climate change in my view isone of the most important challenges of my generation.

How is EU trade policy linked to all this? Trade policy is linked to theEuropean crisis because trade is an important part of the solution to how wegenerate growth and create jobs in Europe again. However, against abackground of economic crisis and rising protectionism, making trade anengine for growth and jobs in Europe is not a simple task. But it can be doneand quite frankly – it must be done. Today, I will present the trade policypriorities for the Danish EU Presidency.

First a few words about the context for trade policy. Regardless of the outcomeof the EU summit today and tomorrow, the trend of economic power andpolitical influence gradually migrating to Asia and Latin America will continue.According to some economists, the “E7” – China, India, Brazil, Russia,Indonesia, Mexico and Turkey – will overtake G7 measured in purchasingpower before 2020. And if the G20 – the world´s biggest economies today –had been created in 1970, Denmark would have been a member! Today we arenot among the top 30 richest countries in the world.

Therefore, the challenge is a serious one. But when challenged like Denmarkand Europe are today, our answer must be to roll up our shirt sleeves and dig in.The American songwriter, professor and social activist, Bernice Johnson oncesaid and I quote: “Life challenges are not supposed to paralyze you. They aresupposed to help you discover who you are.” And I fully agree with her. Morethan ever, this is the time for people in Europe to discover who they are andwhat they are made of.

With regard to trade policy specifically, this means acting much moreoffensively to create better innovation, higher productivity and more marketaccess for European exports. If we do not succeed, Europe could face manyyears of low growth and high unemployment.

The changing global environment is causing concern among Europeans. Oneexample: A recent survey showed that 49% of Europeans have a negative viewof China as a trading partner. They perceive China more as a threat than anopportunity.

I understand their concern. But I repeat: trade is part of the solution, not theproblem. Firstly, because the wealthier China, India and Brazil get, the moreDenmark and the rest of Europe are likely to benefit. Secondly, because we livein an interdependent world: China needs to export to Europe – and manyEuropean companies rely on global supply chains. In 2010, the EU’s export ofgoods and services equaled 40 % of European GDP. Consequently, trade policyis a key strategic tool at our disposal.

And now on to the priorities,the first priorityin terms of trade policy for theDanish EU Presidency is to improve market access to the BRIC countries. Withemerging markets as the world’s economic growth engine, better access forEuropean business to those markets should be at the top of the EU trade agenda.To promote that objective we need to double our efforts to identify and breakdown trade barriers and to speak with one European voice in our dialogue withemerging economies. We cannot allow ourselves to sound like the EurovisionSong Contest with 27 national tunes competing for attention in our traderelations with the Chinese, the Indians or the Brazilians. The EU Member Statesmust sing from one and the same songbook.

The second priorityis trade and development. The point here is not to forget theimportance of looking beyond our shores. Although we do need to look inwardsat the Summit tomorrow, Europe must never forget its responsibility forensuring fairness in global trade. The EU must be a champion of open marketsfor the poorest countries. In particular, because bilateral Free Trade Agreementsare multiplying almost by the hour in various capitals around the world.

Unfortunately, not so much in the capitals of the poorest countries. With thefuture of the Doha Development Agenda uncertain, it is essential that we do notlose sight of our fundamental and common goal to make the world a betterplace.Within the EU, it is of paramount importance that the trade and developmentpolicies are mutually reinforcing and complement each other. Trade is animportant and integral part of development. It contributes to the development ofnew markets and sustainable economic growth, while at the same time tradepromotes peace, security and more open societies.But trade liberalization cannot stand alone. We must also support developingcountries in better utilizing their market access. Only then will they be able touse trade as an engine for economic growth and employment. Again the EU hasa special role to play as one of the biggest donors of “Aid for Trade” assistancein the world.The Danish EU Presidency will focus on the Commission’s upcomingcommunication on “Trade and Investment for Development” and thenegotiations on a new GSP regulation.

The final design of these two important instruments will be an important signalto the rest of the world regarding EU’s continued role within Trade &Development.As athird priorityof the Danish Presidency, we will aim for launching FTAnegotiations with Japan. I intend to serve as an honest broker for the Councilduring our Presidency and I will listen carefully, when we will discuss theresults of the “Scoping Exercise” of an EU-Japan FTA sometime during springnext year. I am mindful of the fact that the serious obstacles remain before wecan improve trade relations with Japan – especially in the area of non-tariffbarriers. Japan must show a stronger readiness to deal with these and other keyissues that are vital for the EU.

But at the same time, I do feel convinced that the time is right for furtherexpanding the strategic relationship between EU and Japan. An FTA must notundermine the WTO – rather it should serve as a stepping stone to a strongermultilateral trading system. But Japan is the world’s third largest nationaleconomy and has a strong potential for key exporting sectors in Europe andDenmark, including pharmaceuticals, meat products and green technology.

A recent independent assessment of the likely impact of an FTA with Japanconcluded that we could be looking at a potential double digit increase in tradeamounting to billions of euro. In addition, an FTA with Japan would alsoestablish an important strategic stronghold for the EU in Asia.

If I had held this speech a year ago, I would probably have mentioned the DDAas our first priority. This has been the case for previous presidencies – andrightly so – as well as in the past two EU Trade Strategies.

But, let me be honest – when I participate in the WTO ministerial meeting inGeneva next week, I do not expect much progress on the DDA. The unity ofpurpose and the necessary flexibility to get the job done simply isn’t there! Still,neither the WTO nor the DDA is about to be forgotten. The Danish Presidencyis committed on creating growth and jobs in Europe. EU trade policy mustcontribute with tangible results as soon as possible – and unfortunately apositive result of the DDA is for the longer run.

It is a paradox that the WTO is considered as being in deep crisis because of theDDA. I must confess that I take a rather different position on the WTO. It isexactly because of the WTO-rules and discipline provided by the WTO disputesettlement that the world has so far avoided the dangerous pitfall ofprotectionism like we witnessed in the 1930s. Having said that let me alsounderline that the threat of protectionism is still very real!

As EU Presidency, we will focus on maintaining a constructive EU approach tothe WTO. We have not forgotten that the WTO constitutes a critical safeguardagainst protectionism and that the organisation is a vital tool for integrating thepoorest countries into the global economy.

The importance of the WTO is confirmed by the enlargement with Russia. It isa historical event. We welcome Russia as a new WTO member and we willpress ahead with a New Agreement between the EU and Russia that will bringus further towards close and mutually beneficial economic cooperation withRussia.

The final priority forthe Danish Presidency is the European NeighbourhoodPolicy. The EU must offer support and closer political association andeconomic integration to those neighbouring countries willing and able to takethe necessary steps. We must react decisively to the important developmentstaking place in the East and in the South.

We have negotiated an association agreement with Ukraine, but it hangs in thebalance due to developments in Ukraine. We call on Ukraine to respect humanrights and the rule of law. Negotiations on Deep and Comprehensive Free TradeAgreements with Moldova and Georgia will start soon. Good progress in thesenegotiations will demonstrate the potential of the Partnership.

South of the Mediterranean the aftermath of the “Arab Spring continues to playout and catch our attention. We must seize this historical opportunity to supportthe respective Arab countries, where millions of young Arabs have showedenormous courage and an unbending desire for political and economic reforms.They have defied autocratic leaders with blood on their hands and they havestood firm on their legitimate demands against impossible odds. Now, theoutside world – the UN, the EU and others - must accelerate efforts to help theArab people consolidate the democratic gains that they have fought so hard toachieve. As Presidency we will push forward with EU plans for deep andcomprehensive free trade agreements with Egypt, Tunisia, Libya and otherArab countries, where the cry for reform can no longer be kept in check.

I have outlined the main trade policy priorities of the Danish EU Presidency.But let me also assure you that we will make a strong effort to promote greentrade liberalisation. Trade policy should contribute to the fight against climatechange, which remains a huge challenge. Furthermore, Europe has much of thecutting edge technology needed to fight climate change. We need to openmarkets for this technology.

Firstly, we intend to examine the possibilities for gathering support behind thevision of some sort of a WTO compatible Green Trade Agreement. This couldfor instance be based on a model for a Sustainable Energy Trade Agreement –the SETA agreement – as proposed by a Geneva based think tank.

The SETA-proposal is just one suggestion on how to promote green renewableenergy solutions to global markets. In order to achieve a better flow of greengoods, services, technologies and production methods, these products andservices must be traded at fair prices and not hampered by barriers. Theultimate goal is to make the best possible use of global knowledge andproduction capacity to promote sustainable energy solutions, while at the sametime providing new commercial possibilities for companies within the greensector.

We count on the support of the Council and the Commission for the DanishPresidency’s green trade agenda. The importance of protecting the environmentand of mitigating the effects of climate change for generations to come iswidely recognized. That is why the Lisbon Treaty sets out to integrate theseobjectives in the implementation of all EU policies. Now it is high time to startdoing something about it in practice.

Finally, in order to prepare for these three initiatives, I would like today toinvite all Danish business organisations to co-operate with me on mapping theDanish interests in green trade. This work could serve as our own solid platformfor future action in trade policy initiatives at the international level.

As you all know, it takes two to tango, and we – the politicians – need businessleaders to team up with us on this one, if we are to turn the vision of a greentransformation of economies into a practical reality. So, with this invitation tojoin me and the Danish Government for a bit of tango, I conclude my openingremarks.

DET TALTE ORD GÆLDER