This is an HTML version of an attachment to the Freedom of Information request 'Meeting between Miguel Ceballos Baron and Centre for European Reform (CER) and Kreab on 11th April'.



Ref. Ares(2017)2118386 - 25/04/2017
Ref. Ares(2017)2821990 - 06/06/2017
The Future of EU Trade Policy 
Speech by Cecilia Malmström 
European Commissioner for Trade  
CER-Kreab breakfast 
Brussels, 11 April 2017 
 
Ladies and gentlemen, 
It's a pleasure to talk with you today. 
And a very interesting time to talk about trade policy.  
Far from dusty,  technical debates on tariffs and  schedules, trade is taking a 
political centre stage. 
I'll admit: this is a blessing and a curse.  
So I'd like to talk about some of the trends we're seeing today.  
And how we are meeting them with our agenda for responsible trade: that is 
effective, transparent and based on values.  
[Protectionism] 
People do not always realise how global trade connects to their lives. 
 


From  the  Nutella  you  spread  on  your  toast  in  the  morning  to  the  car  you 
drive  to  work;  everyday  tasks  and  objects  depend  on  complex  transactions 
within complex global value chains. 
I am not someone who sees trade as a zero-sum game.  
If one party is winning, it does not mean the other party is losing. 
This is economics; not reality TV. 
Today, we are seeing the rising risk of protectionism across the world.  
But you are also seeing people wake up and realise how important trade is to 
our lives and livelihoods.  
How much we need it and depend on it. 
How much we need to defend it. 
"You don't know what you've got till it's gone", as they say.  
Europe is fundamentally an open economy and an open society.  
Building  walls  and  raising  barriers  would  hurt  people  across  the  continent 
and across the world.  
Including the 31 million jobs in the EU that depends on exports. 
And it would hit the poorest, hardest. 
 


It  is  they  who  would  suffer  most  from  the  rising  prices  that  come  from 
higher tariffs, or a slowdown in trade. 
[Globalisation] 
Today, we see an increasing unease or mistrust about "globalisation"… 
…  and  sometimes  a  desire  to  slow  or  reverse  economic  changes  that 
happened over recent decades. 
There are some who feel unable to adapt, or "left behind". 
Yet, as I know Simon Tilford at the CER has argued, many of the issues at 
stake are not to do with trade at all, or not event to do with globalisation at 
all.  
Economic  changes  are  largely  due  to  rising  productivity,  as  a  result  of 
automation and technology….  
… while inequality is more about domestic decisions than trade.  
The  tools  to  address  these  problems  are  not  trade  policy:  they  are  about 
issues  like  investing  in  infrastructure.  Giving  people  the  skills they  need  to 
retrain, or find new work, or adapt faster to the new working environment, as 
we  all  had  to  do  when  computers,  internet,  mobile  phones  burst  into  our 
lives. 
 


For the most part these are not policies the EU controls. But they are needed 
as a complement to the economic changes we see. And I'd like to see more 
investment there.  
If you lose your job, it may be little consolation to know why. 
So perhaps it is understandable that many do not make these distinctions. 
I  don't  dismiss  these  concerns.  But  we  do  need  to  understand  them.  Only 
then can we address them. And – as part of our work on the future of Europe 
–  the  Commission  will  be  producing  a  reflection  paper  on  harnessing 
globalisation  soon.  We  will  address  some  of  these  concerns  and  open  a 
debate on possible answers. 
[Public services and standards] 
In  Europe,  we  are  also  seeing  increasing  focus  and  concern  on  public 
services and public standards. 
People  are  worried  that  trade  policy  might  undermine  the  food  we  eat,  the 
products we buy, or the public services we use.  
But this is not the case. Trade agreements are not lowering our food safety 
EU rules continue to be set by EU lawmakers under EU procedures. 
We have made this clear, for example, in the statements and declarations we 
made around the EU-Canada agreement.  
 


And  we  have  overhauled  one  particular  area  of  concern,  the  investor-state 
dispute resolution.  
We listened to the concerns of those who claimed the old ISDS  was run in 
secrecy,  with  no  independent  arbitrators.  The  investment  courts  we  have 
introduced are transparent, run by professional and independent judges, there 
is an appeal mechanism.  
I hope a multilateral system could go even further… 
… while still providing the consistency and predictability investors need.  
Indeed, trade policy helps us not just protect standards, but promote them. 
That means, for example, the standards which protect the branding of high-
quality EU food and drink, like champagne or Parma ham.  
But  also  wider  values.  Our  trade  arrangements,  especially  with  the 
developing world, include provisions on human rights, good governance, the 
environment, and labour rights.  
We also have new rules, finalised just last week, to control the harmful trade 
in conflict minerals that relies on forced labour, and destroys lives. 
People often talk about free trade agreements. Maybe that's unhelpful.  
Free trade should be fair trade – rules based and open.  
 


It's not about being naïve. It's about ensuring all people play by the rules.  
Our trade agreements and engagement give us leverage to ensure that.  
That's why we'll continue to defend the world trade organisation.  
That's why we'll continue to negotiate bilaterally and plurilaterally too.  
That  is  why  we  are  keeping  robust,  modern  trade  defence  instruments  in 
place. Our new proposal which we put forward last November would protect 
European  business  from  damaging  dumping  and  subsidies.  It  is  country 
neutral, not singling out China or any other country.  
[Trade agenda] 
Much has changed since we published our Trade for All strategy in 2015.  
But  the  approach  it  sets  out  –  effective,  transparent,  based  on  values  –  is 
more important than ever. 
And it is one we are pursuing with partners across the world.  
Our talks with the US are in the freezer, and we are waiting for a signal from 
the new administration about their intentions.  
Likewise for other plurilateral negotiations in which the US is involved, such 
as  trade  in  environmental  goods  and  services:  we  are  waiting  for  a  signal. 
For our side, we are ready. 
 


But,  from  our  other  trade  partners,  if  anything  we  are  seeing  more 
enthusiasm than before. 
We have the Canada deal ratified at EU level. It's our most progressive and 
ambitious deal ever: saving European exporters over €500 million a year in 
tariffs,  even  more  in  red  tape,  opening  new  markets  like  services  and 
procurement at all levels of government. 
It can provisionally apply once ratified on the Canadian side—which could 
be imminent. 
And  that's  not  to  mention  our  ongoing  negotiations:  Japan,  Mercosur, 
Mexico, and the South-East Asian countries of ASEAN. 
These deals will bring many benefits for Europe.  
Exporters who can find new market opportunities…. 
…. People who can get better choice and cheaper goods …. 
… EU action that helps us shape globalisation… 
… with trade based on values. 
That is our agenda for responsible trade.  
I thank you for listening and look forward to your questions.