The EU and the rest of the world

In the coming years 90% of the world demand will have come from outside the EU. A fundamental priority, according to the European Commission is “to create market opportunities for European companies negotiating new free trade agreements with the main world countries”. If all the ongoing Free Trade negotiations were completed – the Commission argues – it would add 2.2% to the EU’s GDP”. In terms of employment these agreements could generate 2.2 million new jobs or an increase of 1% of the total workforce of the European community.Major interests at stake. To achieve these goals a transatlantic agreement between the EU and the U.S. (being negotiated) is critical to the promotion of growth and employment. In this regard, a survey by the Center for Economic Research and Policy in London shows that an ambitious and comprehensive transatlantic trade “could bring economic gains to the EU amounting to 119 billion euro per year”. Indeed, in 2013 negotiations with Japan, EU’s second major trading partner in Asia after China, have been considerably stepped up. “The positive outcomes of the agreements could prompt a 0.6% growth of the EU’s GDP, it could increase exports by over 30% and result in the creation of over 400 thousand jobs”, states a recent document by the Barroso college, which takes stock of all trade agreement of EU28. But the Commission is waiting to see how Japan decides to handle non-tariff barriers for the continuation of the negotiations. Good results have been achieved in December 2012 with Singapore, which raises hopes in the establishment of further free trade agreements with the other countries that are part of the Association of Southeast Asian Nations (Asean), which is the fifth major trading partner of the EU. Openings and closures. As regards the South of the Mediterranean “Morocco has been the first Mediterranean country that closed a global trade agreement with the EU and prompted EU 28 to undertake similar processes with Tunisia, Egypt and Jordan”, the Commission declared. Another upcoming successful agreement is with Canada, the eleventh trading partner of the European Union. Moreover, in the light of the negotiations opened in 2007, there are good chances to finalize interesting trade agreements also with India. But problems with Mercosur countries – Brazil, Argentina, Venezuela, Paraguay and Uruguay – are dragging on, while negotiations with the Gulf Cooperation Council have been interrupted. New frontiers. “After ten years of negotiations it’s time to acknowledge the first trading successes with Countries in Africa, in the Caribbean and the countries bordering on the Pacific”, the Executive said. Now the target of the EU is “to strengthen present trading relations with those Countries”, as emerged also in past July’s visit of EU Trade Commissioner Karel De Gucht, in Kenya, Namibia, Botswana and South Africa. As regards European “neighbors”, agreements have been wrapped up with Moldova, Armenia and Georgia, due to be announced on November 29 in Vilnius during the Eastern Partnership summit. In fact, the EU is the main trading partner of each of the three States: in 2011 “trading with the EU represented over 50% of all trade flow of Moldova, 32% of the global trade of Armenia and 26% of Georgia’s”, states the Commission. “These are fruitful grounds for the establishment of an open and stable legal environment, to the benefit of enterprises and consumers”. The next goals. Agreements have also been finalized with Honduras, Nicaragua and Panama, while the objective of the EU for the near future is to reach the same results also with Costa Rica, El Salvador and Guatemala “to create a stable business, and promote investments and integration between the EU and all of Central America”. The question of China is still pending. Past May 23rd the European Commission asked Member States to favour opening negotiations with the Asian giant, in the fields of investment protection. Both parties already conveyed their interest in undertaking a commitment to this regard but the issue is now up for evaluation by the European Council, a green light is needed for the Commission to initiate negotiations with Beijing.