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FTAs negotiations
Multilateral approach
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Free Trade Agreements: setting a level playing field with third countries

Free trade is the best option to guarantee new market opportunities. In this field, global agreements certainly provide the most optimal framework to reach this objective. However, when no longer progress can be obtained through this route, the European tyre & rubber manufacturers support that the regional/bilateral approach is taken.

A Free Trade Agreement (FTA) should be beneficial for all parties in setting a fair and equitable level playing field between the two entities, in full consistency with the World Trade Organisation (WTO) rules.  To this end, it should allow to move towards deeper economic integration amongst the two countries/regions through progressive elimination of all forms of barriers to trade in goods, services and investments, including tariffs and non-tariff measures.

European tyre manufacturers therefore expect that pending dossiers with key Asian emerging markets will receive a new impetus as a result of the European Commission’s on-going negotiations for a Free Trade Agreement with India and the ten ASEAN countries1.  The planned ‘new generation’ agreements are intended to go beyond areas covered by WTO rules, in including, for instance, the respect of intellectual property rights and foreign investments. 

Click to enlargeClick to enlarge

  2000 2002 2004 2006 2008     2000 2002 2004 2006 2008
India 16 30 49 99 160   ASEAN 214 220 274 353 438
EU 5 3 5 8 15   EU 42 41 47 46 51

To remove the identified non-tariff barriers, the industry believes that the best signal to secure a level regulatory playing field with these key players is to demand the progressive elimination of currently identified trade obstacles, prior to the completion of any FTA.  To achieve this, the EC should obtain its partners’ commitment to contribute to the international harmonisation of technical regulations, through adhesion to international fora such as the UN/ECE.

It is also essential that the EC closely involves industry, keeping it regularly updated throughout the FTA negotiation process, from preliminary consultations and the launch of talks through to the completion of the final agreement.  It is only through such intense cooperation with industry that the European Union will able to achieve its ambitious objective of “opening markets abroad”.

Update 29 July 2009


[1] ASEAN countries: Brunei Darussalam , Cambodia , Indonesia , Laos , Malaysia , Burma/Myanmar, Philippines , Singapore , Thailand and Vietnam