Bold campaign to tear down barriers to trade

Date: 15/02/1996

By Elizabeth Wise

TRADE Commissioner Sir Leon Brittan this week launched a new crusade against import barriers in countries where EU producers are trying to sell their goods.

Calling on EU governments and industries to help him find the barriers and then work on tearing them down, he said: “European trade policy is as much about open markets for European exports and investment abroad as it is about lifting our own barriers to competition from outside.”

Taking his new strategy on tour in Paris and Strasbourg, Brittan singled out US protectionism among the targets of his new policy, including legislation dubbed “Buy America” which gives US companies significant advantages over European firms competing for public procurement contracts.

The Commission yesterday (14 February) approved Brittan's strategy, which proposes the creation of a special trade task force inside the institution called the Action Group on Market Access.

Along with results of research conducted by the trade counsellors Brittan proposes to deploy in EU offices around the world, the group would compile information from EU governments and business leaders into a database.

It would then write regular market access reports identifying the biggest barriers and the countries that needed to be targeted. The Commission is considering producing a yearly report on import barriers in each of its major trading partners, as it already does for the US.

Armed with that information, EU officials would then launch trade promotion programmes to raise the profile of European firms in markets such as Asia and Latin America.

Promising companies and business associations that their contributions would remain confidential, the Commission is asking them to report back on trade problems.

In return, the Commission will set up contact points where business can check in on current EU trade policies.

Brittan is also proposing market-opening moves to be discussed in the forum of the World Trade Organisation (WTO) and has asked business for its suggestions.

In his report to the Council of Ministers, Brittan says Europe accounts for one-fifth of the global trade in goods and one third of direct foreign investment worldwide.

He adds: “For European business to thrive, it needs open markets abroad. The EU must seek to prise open the markets of its trading partners.”

In an apparent acknowledgement of member state governments' apprehension about recent Commission trade initiatives, Brittan's office said the new strategy “would scrupulously respect the current balance of roles between the Commission and the Council”.