How a EU trade policy can be successful?
A successful trade policy can ensure Europe’s economic recovery says Director-General Pascal Lamy, in his speech at the European Parliament on 17 October 2012. Indeed trade policies can be an effective instrument, but how can actually be successful? Mr. Lamy indicates three shaping factors. The first is the participation in global value chains, the second is the existence of non-tariff measures and the third is the importance of services to modern economies.
In global trade markets imports matter as much as exports, stresses Pascal Lamy. The obstacles created by burdensome customs procedures undermine the ability of the countries to trade and to be competitive. A new trade agreement is needed to reduce the costs of customs procedures and facilitate trade practices. According to Mr. Lamy now the costs of customs procedures is 10% of the value of trade, which was $18 trillion in 2011, to 5%.
As for the second factor, the non-tariff measures must be carefully designed and implemented to ensure a fair international trade. Mr. Lamy states that “the proliferation of preferential trade agreements with divergent approaches to public policies may result in non-tariff measures constituting serious obstacles to trade. This possibility of incidental divergence strengthens the case for multilateral coherence”.
The existence of services in modern economies, but also in developing countries is crucial for the shape of robust economies. A new agreement must be negotiated for the form of services in trade and their sufficiency. Multilateral coherence is needed to set up the global trade rules. DW DE
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