EU-LDC Themes - WTO - Policy
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The EU Position in the Millennium Round
The European Union position is that it is in
favour of a comprehensive round of trade negotiations in the WTO. It
argues that a round that includes a broad range of issues and that
offers benefits to all WTO members in a balanced way will contribute
to global economic growth and sustainable development and will
strengthen further the rules-based trading system.
A communication from the European Commission to
the council and the European parliament in 1999 sets out the
approach of the EU to the Millennium Round.
The Commission suggests an approach to the
Millennium Round with the following objectives in mind:
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To promote further liberalisation of trade;
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To strengthen the WTO multilateral rule-based system;
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To improve the integration of developing countries into the
multilateral trading system; and
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To address the interface between trade and related issues and
policies.
Here we present the EU agenda regarding specific
sectors and issues in the trade negotiations, in alphabetical order.
The negotiations will be based on upon the
mandate provided by Article 20 of the Agreement of Agriculture (AoA).
This article conditions the long-term objective of fundamental
reform through substantive, progressive reduction in support and
protection, by other concerns, like special and differential
treatment of developing countries, the experience and effects of
implementing reduction commitments agreed in 1994, and non-trade
concerns. Regarding the reform of CAP, the EU’s position in the
future multilateral WTO negotiations will be based on Agenda 2000,
decided by the Berlin European Council.
The EU will keep the following issues in mind for
the New Round.
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There is a need to maintain a number of existing provisions in
the AoA. In this context, some instruments, like the blue box
and green box have to continue. Other instruments, like the
Peace Clause and Special Safeguard Clause should be renewed.
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There is a need for improvements in the Agreement. Areas that
require improvements include domestic support, export subsidies,
market access and state trading enterprises. Regarding market
access, the EU will act with a view to share in the expansion of
world trade. Regarding domestic and export support and further
reducing trade barriers, the EU wants all forms of export
support are treated equally and will seek to obtain improvements
in the opportunities for EU exporters.
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Special and differential treatment for developing countries
will be actively promoted.
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The multifunctional role of agriculture should be recognised.
This means that various considerations should be kept in mind
under the agricultural negotiations, like the relationship
between agriculture and environment, food safety, animal welfare
etc.
Go to the DG
Trade website for detailed information on the EU position on
agriculture
The EU supports negotiations on a binding
framework of multilateral rules on competition and the enforcement
of competition law. These rules will be largely based on the
principles of transparency and non-discrimination. In addition,
common approaches to anti-competitive practices with a significant
impact on international trade and investment should be developed and
international co-operation promoted in the WTO. The dispute
settlement procedure will ensure that domestic competition law and
its enforcement are in accordance with the provisions agreed
multilaterally. Technical assistance, transitional periods and some
flexibility in the rules are needed to ensure participation from
developing countries.
Go to the DG
Trade website for detailed information on the EU position on
Competition
Under the current Sanitary and Photo Sanitary (SPS)
Agreement, each Member has the right to choose its own level of
protection of consumer health and to apply the corresponding
sanitary measures. Under the conditions of the Agreement, members
can apply restrictive trade measures to ensure that level of
protection, provided that these measures are based on international
standards or sound scientific evidence. In the context of the WTO
negotiations the EU proposes to:
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promote the introduction of international standards and to
enhance their credibility;
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ensure a fair participation of all parties involved, including
consumers, in the decision making process of establishing
international food standards;
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clarify and strengthen the WTO framework for the use of the
precautionary principle in the area of food safety.
The EU attaches importance to ensuring that the
new Round responds to the particular interests of developing
countries and that a development agenda be reflected in all areas of
negotiations. The EU must help developing countries to overcome the
problems of implementing WTO agreements by finding effective
responses. The EU stresses the following issues:
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Regarding market access, all industrialised countries and more
advanced developing countries should commit themselves to tariff
free treatment on essentially all products from the least
developed countries, to be implemented by 2003.
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WTO rules in newer areas, like investment and competition,
should create a strong international framework that effectively
helps the exercise of national sovereignty, disciplines
anti-competitive practices and enhances international
co-operation, without diminishing members’ capacity to manage
broader economic and monetary policy.
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Proposals from developing countries in the WTO to enable their
further integration in the multilateral trade system (including
proposals to make special and differential treatment more
operational) should merit attention from the EU and other
developed countries.
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New rules under the WTO agreements should be accompanied by
capacity building in developing countries. This capacity
building and other forms of technical assistance should be
explicitly included in the new agreements. In this context, the
EU is also a proponent of establishing co-operation and
complementarity of action of all relevant institutions to assist
developing countries to fully benefit from further trade
liberalisation and to enhance their domestic capacity to
implement WTO rules. The EU furthermore stresses the importance
of accession of countries currently outside the system.
Go to the DG
Trade website for detailed information on the EU position on
Trade and Development
The EU will press for a high degree of
transparency in procurement, in combination with a phased programme
of gradual market opening and broad sectoral coverage. In addition,
a new Government Procurement Agreement (GPA) should be adjusted to
new developments and be more effective in achieving its objectives
and in attracting new WTO parties.
Go to the Europa
website for more information on government
procurement
The EU is in favour of a multilateral framework
of rules governing international investment, to secure a stable and
predictable climate for world-wide investment. The basic viewpoints
of the EU are as follows:
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The WTO is considered to be the forum to discuss multilateral
rules, since it takes into account the interest of both
developed and developing countries. Moreover, the
non-discrimination principle is key to an open and efficient
investment regime.
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A multilateral framework of investment rules must ensure the
right conditions for international investment to be conducive to
sustainable development.
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Flexibility is required for WTO members, since the ability to
open its domestic market to international investment differs
greatly among Members. The EU therefore proposes a bottom-up
approach to the question of access to investment opportunities,
based on commitments undertaken by each Member.
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Host countries should retain the ability to regulate the
activity of investors on their respective territories.
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Changes in relevant domestic laws and regulations should be
transparent to ensure the predictability of the treatment of
established investors.
Go to the Europa
website for more information on the EU position on
investment
Regarding services, the EU has the following four
objectives.
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To advocate comprehensive negotiations to obtain more and
better commitments from all WTO Members on market access and
national treatment. Current imbalances in commitments across
countries and service sectors should be reduced.
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To open markets further coupled with regulatory disciplines
where necessary. In this way, real liberalisation and the
development of a transparent and predictable domestic regulatory
environment can be ensured.
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To include any unfinished business in the GATS 2000
negotiations, like safeguards, subsidies and government
procurement.
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To facilitate increased participation of developing countries
in world by taking into account national policy objectives and
levels of development, both overall and in individual sectors.
Go to the Europa
website for more information on EU position on
services. See also the EU
info point on World Trade in Services.
The EU advocates comprehensive tariff
negotiations aiming at reducing tariffs, removing all peak tariffs
and at harmonising the tariff structures of all Members across all
non-agricultural products, without exceptions.
One approach to allow flexibility for developing
countries is to adopt a tariff-band approach, defining a low, medium
and high band within which all tariffs in all sectors would have to
fall. As the reductions could negatively affect relative trade
preferences, the current Generalised System of Preferences (GSP)
might have to be increased. It is also noted, however, that while
the expansion of the current GSP will in principle be a
non-reciprocal action, it would be facilitated if developing
countries increase their most favoured nation tariff binding.
In addition to the tariff reductions, there
should be a non-tariff initiative so that non-tariff concerns do not
counter the benefits of further tariff reductions. However, this
initiative should allow for discussions of specific non-tariff
measures on a case-by-case basis.
Go to the Europa
website for more information on the EU position on
Tariffs on Non-Agricultural products.
Regarding technical barriers to trade, the EU
sees the new Round as an opportunity to strengthen existing
provisions in the Technical Barriers to Trade (TBT) Agreement, to
clarify a number of outstanding issues and to expand the scope of
certain provisions.
The TBT Agreement should promote regulatory
co-operation to a greater extent and include more explicit guidance
on good regulatory practice. In addition, a number of provisions and
definitions of the Agreement should be clarified, especially
regarding international standards. Finally, multilateral guidelines
on labelling should be developed. Health, consumer safety and
environmental issues should be addressed, while ensuring an
appropriate balance between the right to take actions to achieve
those objectives and the obligation to avoid disproportionate
restrictions.
The EU’s commitment to the respect of human
rights is reflected in their strong attachment to core labour
standards. The EU does not intend however to use trade sanctions to
advance labour standards. It also recognises that the worst abuses
of core labour standards often take place in sectors that are not
exposed to international trade. The EU proposes a five-point
strategy for the New Round.
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Co-operation between the WTO and the ILO should be enhanced in
line with the Singapore Ministerial declaration, respecting the
distinctive rules and competencies of each institution.
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The EU will support any request by the ILO for observer status
in the WTO.
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The EU should initially propose to convene a joint WTO/ILO
high-level meeting on trade, globalisation and labour issues.
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Adoption of positive measures should be encouraged and
promoted by the EU. The European Community already operates an
incentive scheme whereby third countries that are eligible for
GSP benefits can obtain extra benefits if they demonstrate that
they meet core ILO conventions on labour. Positive measures of
this type instead of restrictive practices should encourage the
improvements of labour rights.
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The EU should have a continuous dialogue with its trading
partners and its civil society in order to define further an
approach that would be in the best interest of those really
affected by it.
Many countries, and especially developing
countries, have complained about excessive recourse to anti-dumping
measures. The EU should therefore not oppose to including
anti-dumping in the New Round, keeping in mind that it will have
both offensive and defensive interests. Furthermore, the EU should
be open for proposals for the Subsidies Agreement to better support
the development objectives of developing countries. Regarding the
Agreement on Safeguards, the EU wants to ensure that the use of
safeguard measures is kept within narrow, clearly defined and
predictable limits.
Environmental considerations are important as
they play a crucial role in the WTO’s overall objective of
sustainable development. Together with these environmental
considerations, the trade interests of every participant should be
met, especially the interests of developing countries. The EU gives
priority to the following issues:
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There should be greater legal clarity on the relationship
between WTO rules and trade measures taken pursuant to
provisions of Multilateral Environmental Agreements (MEAs) to
the effect that the WTO should accommodate the use of such
globally agreed instruments.
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A clarification of the relationship between WTO rules and
Non-Product Related Process and Production Methods requirements
is needed, and, in particular, of the WTO-compatibility of eco-labelling
schemes. Such schemes require transparency and
non-discrimination, in a multilateral framework in their
creation and administration. This allows consumers to make
informed choices.
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There should be greater clarity on the relationship between
multilateral trade rules and core environmental principles,
especially the precautionary principles.
Go to the Europa
website for more information on the EU position on trade
and environment
The EU advocates developing a set of WTO
commitments to simplify and harmonise trade procedures. These
commitments should inter alia include application of WTO principles
to trade procedures and processes, simplification and harmonisation
of data and documentation and streamlining of customs and related
border-crossing procedures. If necessary, countries should be given
time and support to introduce commitments. A balanced set of
commitments in the area of trade facilitation will benefit traders
through reduced costs and delays and it will benefit governments
through better controls, higher revenue intakes, more efficient
management and an improved investment climate.
Go to the Europa
website for more information on the EU position on trade
facilitation
The EU takes the standpoint that the present
achievements and current transition periods of the TRIPS Agreement
must not be re-opened during new negotiations (e.g. standards may
not be lowered). However, the level of protection under the
Agreement should be reviewed, especially regarding patents and
geographical indications. In addition, developments that have taken
place in this context outside the WTO (especially in WIPO) and on
which international consensus is increasing should also be taken
into account in the next Round. Other amendments of the Agreement
should be pursued taking into account the interests of all countries
and of both users and rightholders.
Go to the Europa
website for more information on the EU position on
TRIPS
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