Executive Forum on “Competing
in a Changing Europe”
11 May 2004
Statement by Ms. Brigita
Schmögnerová,
Executive Secretary
Mr. Chairman, Excellencies,
Ladies and Gentlemen,
Welcome to the Executive
Forum on Competing in a Changing Europe.
I would like to thank all participants for
being here today. We hope to have a productive
debate on the policies and strategies that
need to be put in place as a reaction to
a changing Europe that would lead to increased
trade and raise living standards in the
region.
The Forum includes two
sessions of interactive debate where participants
will be asked to work in small groups to
answer questions that you will find in your
programme. For you, this will be
an occasion to put forward your views on
the changing environment for trade and enterprise
development and on the challenges that your
organization or country is facing. For
us, it will be an occasion to learn
about your priorities, and your expectations
about the work we do at the UNECE.
This Forum is organized
by the Committee for Trade, Industry and
Enterprise Development. The Committee’s
overarching goal is to assist all countries
in the UNECE region to become better integrated
into regional and international trade, in
particular by implementing best practices
and international and regional trading standards,
norms and recommendations – all of
which are prerequisites for participating
fully in international supply chains and
networks of exchange in the modern global
economy.
Today, EU enlargement provides
us with a unique opportunity for further
cohesion and economic integration in this
region. Nonetheless, it also brings the
risk of new dividing lines emerging and
creating “two parallel Europes”
growing and developing at different speeds,
and perhaps eventually in different directions.
As a consequence, one of our priorities
is to assist our least advantaged member
States in adapting to the challenges of
the new trading environment.
Following the recent addition
of more than 75 million people into the
EU, the scope of the Single Market has been
dramatically enlarged and will hopefully
increase stability and prosperity in the
region. For the non-EU countries,
the net effect is expected to be positive.
First, because enlargement will boost growth
in the EU, which is the principal export
market for these countries. And second,
because these countries can now gain access
to a much larger market by complying with
one single set of rules and regulations.
In addition, the EU common
external tariff is generally lower than
the previous national tariffs of the new
Member States. It is particularly important
to note that this was true for the two largest
countries among the new EU members, Poland
and Hungary, where average tariff levels
fell significantly, especially for agricultural
products. In those two countries, tariff
levels fell even for fisheries, where most
of the accession countries raised their
market access tariffs on joining the EU.
However, we should be aware
that there are also examples of some problems
created by EU enlargement. Existing bilateral
preferential trade arrangements between
acceding EU Member States and non-EU countries
had to be terminated. One example is the
agreement between Hungary and Serbia and
Montenegro, two countries with a common
border and historically strong trading activity.
In a number of cases, EU enlargement may
also disrupt cross-border trade as a result
of the introduction of the new EU visa regime.
The EU enlargement is only
one among many factors that are shaping
the trading environment today in the UNECE
region. At the same time as enlargement
was being negotiated and finally implemented,
the countries of the UNECE region were also
actively participating in trade negotiations
at the multilateral level, as well as engaging
in a large number of free trade area agreements
and other trade arrangements, both among
themselves and with countries of other regions.
A number of UNECE countries are also negotiating,
or have recently completed, their accession
to the WTO.
However important they
may be, membership in customs unions, free
trade agreements and the WTO is not sufficient
to guarantee increasing participation in
international trade. For this reason, countries
need to look at regulatory and product-related
issues such as implementing uniform norms
and standards as well as reducing and harmonizing
cumbersome and time-consuming trade formalities
and border procedures.
This Forum is part of the
meeting of the Committee for Trade, Industry
and Enterprise Development, which is developing,
maintaining and implementing a wide range
of instruments, norms, standards and best
practices to facilitate international trade
and to encourage enterprise development.
Because the UNECE member States include
some of the most important players in international
trade negotiations, the UNECE’s instruments
contribute directly to a stronger and more
efficient multilateral trading system.
It may seem that regulatory
and quality standards as well as customs
procedures are technical subjects. Nevertheless,
they all contribute to shorter shipping
and processing times, i.e. to a shorter
“time to market”. In addition,
they contribute to the ability to comply
with complex product specifications and
quality standards - these are key determining
factors in a firm’s competitiveness.
When economic agents move
away from their domestic markets, their
success or failure often depend on how familiar
they are with the regulations and standards
in their export markets. Essentially, the
purpose of standards is to protect the health
and welfare of consumers, to keep costs
of transactions as low as possible for producers,
processors and consumers, and to safeguard
honest practices and promote good quality.
Standards facilitate trade
as all the parties involved in the transaction
“speak a common language”. It
is the existence of standards that allows
long-distance trade in agricultural products
as they build the confidence of the purchaser
and consumer. A standard can also encourage
farmers to improve the quality of their
produce.
As an indicator of the
significance of UNECE agricultural quality
standards, you may wish to note that European
Union standards that are based on UNECE
standards cover around 90% of the market
volume of products traded in Europe! Moreover,
because a large proportion of world trade
in agricultural products relies on UNECE
standards, these standards can contribute
to further post-enlargement European integration
if their use is promoted in non-acceding
countries.
At the same time, too many
standards - which are the expression of
a society that cares about the quality of
produce and manufactures - are often at
odds with the needs of societies that are
still preoccupied with fulfilling the basic
needs of their people. For this reason,
it is clearly important for standards to
be developed internationally so that a balance
among different sets of interests can be
found, which respects the interests of all
stakeholders. More generally, I hope very
much that the recent EU initiative on the
Doha Round of world trade talks, an initiative
that includes elimination of agricultural
export subsidies and a softening of its
demands for negotiations on the Singapore
issues, will speed up the Doha Round and
– at the same time – that the
governments will agree to negotiate the
last Singapore issue, that is trade facilitation.
I strongly believe that this would be to
the benefit of all member States.
UNECE is strongly involved
in trade facilitation. Our work in trade
facilitation has resulted in techniques,
recommendations and norms that are implemented
across the world. We also create global
e-business standards which are critical
to trade as the development of regional
or national variations of these standards
would result in ipso facto technical barriers
to trade in the growing area of electronically
traded goods and services.
Ladies and Gentlemen,
I would also like to draw
your attention to another area of work of
the CTIED in industry restructuring and
enterprise development, where UNECE focuses
on phasing out declining sectors, stimulating
entrepreneurship and the development of
small and medium-sized enterprises (SMEs),
and promoting the use of information and
communication technologies, especially to
encourage the development of the knowledge-based
economy in this region.
Other important priorities
for the Committee’s work are good
governance and the development of new legal
and commercial practices as well as building
partnerships between the public and private
sector. Our programmes in these areas are
also increasingly focussed on the non-EU
member countries, and on the most disadvantaged
among economic actors.
During the course of the
Forum, all the different areas of activity
of the Committee will be at the centre of
the debate. I believe, therefore, that this
Forum will allow us to better serve the
interests of our member States, by helping
us to better orient our work as new priorities
emerge from a rapidly changing Europe, hopefully
contributing to an environment which would
be more conducive to improving the competitiveness
of all UNECE member States.
Thank you for your attention.
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