Czech EU Presidency Pushes Free Trade Agenda

by Lorys Charalambous, Tax-News.com, Cyprus

05 February 2009

'The EU must remain committed to further liberalization of international trade,' was the conclusion to the Conference on Trade Liberalization held in Prague this week. Its participants discussed Europe’s role in the global economy, notably the threat of protectionism.

In the context of an economic downturn and growing threats of protectionism, participants of the Conference on Trade Liberalization in Prague discussed a number of issues facing the world economy in general and, in particular, the role of Europe in the global economy.

“It is important to resist calls for greater protection of national economies and raising new trade barriers amidst the worst economic downturn in decades,“ Martin Tlapa, Czech Deputy Minister of Industry and Trade, stated at the conference.

“In an era of an interconnected global economy, it is important to ensure that markets remain open: Openness leads to higher productivity, and removing existing trade barriers strengthens competitiveness, stimulates innovation and encourages economic growth,“ Deputy Minister Martin Tlapa added.

Deputy Minister Martin Tlapa emphasized that the best way to resist protectionism lies in further strengthening the multilateral system of international trade and advancing its greater liberalization. As the current crisis is expected to have an extremely negative impact on developing countries, it is essential to conclude the Doha Round in the near future; it is the best means to safeguard their economic development and trade, he stressed. Participants of the conference have agreed that in order to maintain its position in international trade, the EU needs a transparent and predictable trade policy.

“To mitigate the impact of the global downturn and to facilitate economic recovery, the EU needs to enhance its competitiveness on the global stage. Given a level playing field, EU companies and workers are capable of competing in the global economy. Therefore, the EU must remain committed to further liberalization of international trade on both the multilateral and bilateral level.”

Tlapa stressed that the priority of the EU on the global stage must be the implementation of the ‘Global Europe’ strategy, which includes an effort to conclude an ambitious agreement in the Doha Round, the rapid conclusion of bilateral negotiations with important trading partners, such as Korea, and tackling non-tariff regulatory barriers.

Several Free Trade Agreements have been negotiated this week following the World Economic Forum at Davos, where a similar message was stressed to its participants. Switzerland this week discussed the signing of a FTA with Japan and China; the Japanese agreement will be signed on February 16. The European Free Trade Area comprising of Switzerland, Norway, Iceland and Lichtenstein has this week proposed an FTA with Vietnam. Australia, New Zealand and ASEAN countries are expected to sign a framework agreement for a free trade agreement at the next ASEAN meeting on February 27. The signing of an India-ASEAN FTA is also expected by the end of the month.

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