Commissioner Phil Hogan
Intro Remarks at Microsoft Event
Redactions covered by Art. 4.1 (b)
30th June 2020
Intro
Thank you for your introduction
. Good morning ladies and gentlemen, I am happy to be here with
you today and of course it is always a pleasure to participate in any event organised by the great
I propose to give you an overview of the headline items on the EU Trade agenda and then I will be happy
to answer any questions you may have.
Our shared EU trade and investment policy is hugely important for our economic prosperity, but its
importance goes far beyond euros and cents. It also has a role to play in promoting our values and
standards around the world. It has huge relevance for a host of other EU policy priorities. And it is a
fundamental part of demonstrating EU leadership in a global economic environment faced with huge
uncertainties and challenges.
Since taking office late last year we have committed to being a more geopolitical Commission, aiming to
support a stronger Europe on the world stage, and trade is central to these aspirations. Trade also has to
contribute to overarching EU ambitions like the Green Deal and digital agenda.
On top of this there is the unquestionable need for trade policy to help drive economic recovery from
the Covid-19 catastrophe. The EU economy is expected to contract by 7.4% in 2020, while global GDP
wil fal by 3.5% and global trade by between 10%-16%.
The Co
and Recovery Fund is
therefore very important. If agreed, it wil deliver significantly on our shared policy priorities. As
business leaders, I am sure you will be scrutinising our plans closely to identify the opportunities therein.
Trade Policy Review
From our side, we have taken the view that this can be a watershed moment for the direction of EU
trade policy. Covid-
the policy.
I therefore launched a wide-reaching Trade Policy Review on 16 June, including a very broad and
inclusive consultation process. There will be discussions with al key stakeholders, including business and
industry, and I encourage you to make your views known to us.
The objective will be to conclude this review with the adoption of a new Communication towards the
end of the year.
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al ows us to continue reaping the benefits of international trade and exerting leadership in the
international sphere, while having the tools in place to protect ourselves from unfair practices and
assertively enforcing our rights. In effect, the review is about striking the right balance between a
In this context, the review wil need to tackle the key issues facing trade policy, such as
how to ensure greater resilience in our supply chains;
how best to support our economic recovery and long-term growth;
how to pursue our green, sustainability and digital objectives (and what role due diligence
schemes can play in this);
and how to advance our level playing field objectives internal y and external y.
Bilateral Agenda/Enforcement
While this very important review process is taking place, we wil continue to reinforce our trade agenda
at home and abroad.
Thanks to our single market, the European Union has immense strength as a trading power, evidenced
by the number of agreements we have signed in recent years, including comprehensive deals with Japan
and Canada. Just a few weeks ago, the Vietnamese Parliament ratified our agreement, meaning it is on
track to enter into force later this year.
This is the largest deal we have ever signed with a developing country, and an important building block
towards further cooperation in the strategical y important ASEAN region.
ortunity of
But while I firmly believe that it benefits us to sign these deals, I equal y believe that we must do more
with them to generate greater added value for our exporters. So improved and robust implementation
wil be a huge part of our plan.
With a stronger emphasis on implementation, we can achieve positive outcomes on both sides of the
equation: our exporters wil gain more value from our partner markets, particularly our SMEs, and we
wil have outstanding opportunities to promote our standards and values in relation to sustainable
development around the world.
Our implement agenda is already wel under way, proven by the fact that we wil soon appoint an EU
Chief Trade Enforcement Officer (CTEO) for the first time.
The CTEO wil ensure that any potential non-compliance with trade and sustainable development
commitments is identified early on and that appropriate action is taken. This wil equal y be the case for
any barriers to market access.
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This work wil include putting in place an effective process to receive complaints and to streamline the
fol ow-up on al implementation and enforcement issues. If there is a problem, we want the response to
be swift and e
agree that it represents a very positive step.
WTO & Multilateral Agenda
Of course, there are other chal enges on the horizon. We are vigorously pursuing WTO reform, because
we believe that with the right leadership, and the right reforms, this organisation can be the beating
heart of global economic recovery.
Multilateralism is in our DNA in Europe, indeed the European Union is the ultimate proof that
multilateralism, handled correctly, works.
You wil no doubt be aware that yesterday, I ruled out putting my name forward as a candidate for the
post of WTO Director-General. The EU Trade Agenda wil remain my priority, but of course WTO reform
is a huge part of that same EU Trade Agenda, therefore I look forward to playing a constructive and
proactive role while staying at the helm here in Brussels.
A huge part of this work is our effort to refresh the transatlantic relationship, which remains the central
artery of the world economy and our most important strategic al iance.
Transatlantic Relations
The EU cannot achieve our goals of restoring the world economy to good health and increasing
resilience in supply chains by acting alone. Therefore, the EU is actively engaging with its partners
multilateral y, as wel on bilateral basis, to respond to the current chal enges.
On the multilateral level, the EU has begun exploratory discussions on its trade and health initiative.
Under the umbrel a of the WTO, we hope to agree on a trade package that would level the field in the
health sector industry for al . We believe that it would provide both a necessary boost to the multilateral
while also delivering an adequate response to the Covid-19 crisis.
The package aims at eliminating the remainder of tariffs on pharmaceuticals, medical devices and
certain personal protective equipment, and promotes resilience and diversification of their supply
chains.
Yet no successful multilateral initiative to restore open, fair and reinforced global trade can be done
without the EU and US together leading the effort.
That is why I reached out to Ambassador Lighthizer at the end of April with a proposal I cal
ive
Principles paper. This cal s for action to build resilient supply chains for medical goods, action to restore
an open and fair environment on the global market, action to spearhead joint reform of the multilateral
system as wel as action to make concrete progress on bilateral transatlantic issues.
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Yet judging by the signals coming out of the US administration, we are seeing more and more emphasis
on self-sufficiency and trade restrictive measures. This is concerning to us, because the European
Commission continues to believe that protectionism is not the way forward.
Despite these different approaches, the EU continues to engage bilateral y with the US. Since Presidents
von der Leyen and Trump met earlier this year, we continue to explore the possibilities for a positive
trade package including tariff as wel as non-tariff elements. As we slowly begin to exit the Covid-19
pandemic, we are now back at the negotiating table discussing how to reach a ful y balanced outcome in
line with our international obligations.
However, we are worried by the announcement of new investigations against EU imports. This is a
continuation of the worrying recent trends in Washington in relation to trade defense policy. These
cases could have a negative impact on our efforts to build a positive EU-US agenda.
Brexit
I also want to touch on a subject that I know is of importance to many of you: Brexit. As the old saying
goes: we are where we are.
On 31 January this year, the UK left the EU.
was only the first step. Thanks to the
transition period built into in the Withdrawal Agreement, the UK could remain in the Single Market and
the Customs Union until at least the end of 2020.
We then set a deadline of 30 June 2020 to choose whether to extend this transition period.
This could only be done through a joint decision. But last week, at the High Level Meeting with the three
Presidents Ursula von der Leyen, Charles Michel and David Sassoli, Prime Minister Boris Johnson
confirmed that the UK would not request such an extension.
Therefore, the transition period wil end on 31 December 2020.
and Customs Union on this date, and
wil take place.
This wil bring important and definitive changes in many areas. Michel Barnier said two days ago that we
have a responsibility to take these negotiations forward, and to look for an intel igent agreement that
limits the shock of
I ful y agree with
this approach and the EU 27 stands four square behind Michel as he continues his work.
Maintaining EU unity matters hugely, because we can expect that provocative actions and spin from the
UK side wil ramp up in the coming months as we approach Brexit day.
The reality is that there are stil very different views in the UK public debate today:
On the one hand, we have the Brexiteers and a good part of the conservative government
maintaining a very hard line, demanding ful sovereignty for the UK, and no concessions even if it
means no deal.
On the other hand, there is growing concern among businesses and in the devolved administrations.
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Some of you may have heard me cal on business leaders over the past 4 years to do everything that
they can to minimise the harmful impact of a hard Brexit. Wel , that remains the case, and there is stil
time for you to use whatever leverage you have to prevent this absolute worst-case outcome.
The UK continues to refuse to commit to a level playing field and to appropriate safeguards for our
future relationship. It is not too late to find compromise on this very basic issue, but time is running out,
and fast.
Our greatest frustration is the fact that the UK keeps on backtracking from its commitments in the
Political Declaration. On the EU side, we remain ful y receptive to proposals that respect this
document both in the spirit and in the letter.
The moment of truth wil be in October, when we wil have to be
ready to put a draft deal to the European Parliament and to the European Council if we want it ratified
by the end of the year.
Conclusion
I wil conclude at this point, ladies and gentlemen. There are many more items I could have covered but I
think I have given you a good flavour of our work programme for the coming months.
I wil be happy to take some questions from you on these and any other relevant topics. Thank you
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