The EU to revise its trade policy in order to strengthen competitiveness

Press release 458/2006
13 November, 2006

Under the Finnish Presidency, on 13 November the European Union has approved a major policy outline that defines the priorities for the EU’s future trade policy and means for increasing its effectiveness.

In accordance with the decision, multilateral WTO negotiations will remain a priority of trade policy. New, complementary arrangements besides the WTO will, however, be sought. One example of such complementary arrangements is the new type of free trade agreements, extensive in content; negotiations will be held with important countries outside the EU, with a view to reaching such agreements. A speedy launch to negotiations with the ASEAN countries, India and South Korea has received support. In addition, effort will be made to begin free trade negotiations with Russia and Ukraine once they have become members of the WTO.

Paula Lehtomäki, Minister for Foreign Trade and Development, stated that the policy outline is an important step to utilise trade policy as a tool reinforcing the EU’s competitiveness. “An active trade policy supports and complements action to strengthen competitiveness on the EU’s internal market. Bilateral free trade negotiations supplement global-level negotiations but do not replace the WTO system,” the Minister said.

The decision approved by the General Affairs and External Relations Council is about strengthening the EU’s competitiveness in response to fiercer global competition. In their decision the Ministers take a stand on the Commission’s communiqué on this issue, entitled Global Europe: Competing in the World, released in October. Both the EU internal and external competitiveness are priorities of Finland’s EU Presidency.

The basic premise for the decision is that trade policy, as effectively as possible, must take into account the global nature of business activities. Europe’s markets must be kept open to both export and import, and trade policy must strive to support a favourable environment for business in different parts of the world. As global competition tightens, the EU cannot turn inward; rather, it is important to be active and to direct activities outward.

Additional information: First Secretary Tuomas Tapio, Department for External Economic Relations of the Ministry for Foreign Affairs, tel. +358 9 1605 5548