Concluding remarks by the Chairperson

This is the tenth Trade Policy Review of the European Union and I would like to thank Peter Balás and his delegation for their constructive and interactive engagement in this meeting.  I would also like to thank Ambassador De Mateo for his excellent intervention as discussant.  The Review was based on reports by the WTO Secretariat and the EU, both of which delegates appreciated.

At the time of its previous Trade Policy Review, in April 2009, the EU was in deep economic recession, which was accompanied by a sharp contraction of EU and global trade.  Helped partly by a vigorous policy of national and EU stimuli, the EU economy is recovering, and EU trade has rebounded along with global trade.  Delegations welcomed this, and commended the EU for having resisted pressures to respond to economic difficulties by tightening restrictions on imports and exports.  In the face of economic uncertainty caused by the sovereign debt turmoil in some euro area countries, the EU's continued commitment to openness and transparency remains essential for many Members' own trade and development prospects.  Delegations were encouraged by the role assigned to trade and investment openness in the EU's overall economic growth and competitiveness strategy.

This is the first Trade Policy Review of the EU after the Treaty of Lisbon entered into force on 1 December 2009.  Under the Treaty, the European Parliament has rights equal with the Council in adopting EU trade legislation, and must give its consent before the Council can ratify international trade agreements.  In addition, the Lisbon Treaty broadened the exclusive competence of the EU to encompass foreign direct investment as part of the common commercial policy.  Delegations commented on the importance of these changes for increased EU trade and investment policy coherence, and for further trade and investment liberalization.

Delegations congratulated the EU for having confirmed that the WTO remains the focus of its trade policy.  They recognized the significant contribution made by the EU to the Doha Round, and called on the EU to assert leadership commensurate with its status as the world's largest trader in order to help bring the Round to a successful conclusion, including its development dimension.  A number of delegations cautioned against the possibility that the pursuit of the EU's agenda of “competitiveness-driven” free trade agreements might detract from the EU's commitment to a strong multilateral trading system.

Delegations welcomed the EU's preference programmes to support export growth and diversification in developing and least developed countries, and remarked on the recent introduction of new, more flexible rules of origin for product imported under the Generalized System of Preferences (GSP).  Many delegations drew attention to the European Commission's proposal to amend the GSP regime, and some voiced concerns about the potential impact of this proposal on their exports to the EU.  The EU delegation responded that the proposed changes were meant to create better opportunities for those developing countries that are most in need and complied with the letter and the spirit of the enabling clause.  Many delegations welcomed the EU's contributions of Aid for Trade and trade-related development assistance and capacity building, including through the WTO Global Trust Fund and the Enhanced Integrated Framework.

The numerous interventions, questions, and answers during this review have highlighted the scope for further rationalization of the EU's trade and trade policies.  Indeed, there remain a number of areas where reforms would both be beneficial for the EU and help to strengthen international trade, which the EU acknowledged is integral to its continued prosperity.  The EU authorities may wish to give particular thought to possible improvements in the following areas:

• Tariffs.  It was recognized that import tariffs have remained relatively low and that a significant proportion of imports enters the EU duty free under zero-level MFN tariffs or preference programmes.  At the same time, delegations encouraged the EU to eliminate remaining tariff peaks, including on motor vehicles, fish, and agriculture, and to simplify its overly complex tariff structure.  Members were satisfied to know that the EU stands ready to move in this direction as the result of a successful conclusion to the Doha Round.
• Regulatory barriers to trade.  Many delegations repeated concerns expressed in previous EU Reviews about the burdensome impact of certain regulatory measures on market access in areas such as technical barriers to trade and sanitary and phytosanitary measures.  It was felt that more extensive reliance on international standards as well as enhanced transparency and closer cooperation with third countries during the development and implementation of technical regulations and conformity assessment procedures have important roles to play in ensuring that new and existing regulations do not result in unnecessary obstacles to trade.
• Support to agriculture.  While acknowledging recent progress in reforming the Common Agricultural Policy (CAP), delegations remain concerned about the high level of support to EU agriculture, in both absolute and relative terms, and the large share of market price support in total transfers to EU farmers.  The EU was urged to continue reducing the role of the CAP in the market, and to complement this with significant reductions of MFN tariffs on agriculture.
• Crisis-related government support.  The EU was urged to persevere with ongoing initiatives to phase out crisis support in order to minimize any distortions to international trade and investment.
• Single EU market.  Delegations commended the EU for its recent initiatives to deepen the internal market for goods and services.  Nonetheless, several delegations expressed concern about delays in the implementation of the EU Services Directive, which is seen as essential to strengthening competitiveness throughout the EU.  Many delegations urged the EU to align with best liberalization practices services sectors such as professional services that remain subject to high barriers to the free establishment of and cross border provision by foreign competitors.

I also noted the EU's suggestions for improving the Trade Policy Review process.  We will go back to this point as part of our discussions within the framework of the fourth appraisal of the Mechanism with a view to the eighth Ministerial Conference.

The large number of questions tabled during this Trade Policy Review indicates clearly the importance of the EU as a trading partner for most WTO Members.  The EU delegation is to be commended for giving comprehensive replies to so many questions and for having reacted to many of them in the meeting room.  Members look forward to receiving the final responses within one month.  In closing, I would once again like to thank the EU delegation, the discussant, and Members for contributing to what has been a very successful Review.