Fachkommission für Wirtschaftspolitik

Die Umsetzung von Freihandelsabkommen aus regionaler und lokaler Sicht

Opinion factsheet

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  • Unternehmen und Industrie
  • Kaubanduspoliitika
  • Wirtschaft und Finanzen
  • Nachhaltige Entwicklung

Objective

Highlight the challenges SMEs face in utilising the growh opportunities of FTAs.
Put forward concrete proposals on whant needs to be done to increase the uptake of FTAs by SMEs.
Bring up the vital role local and regional authorities play in translating FTAs to SMEs due to their knowledge of and proximity to SMEs on the ground.
Stress the strong regional dimension of FTAs, since thier impact in the EU is felt at regional level and despite the overall economic growth triggered by FTAs, there are some economic sectors, along with the regions hosting them, which are likely to be negatively affected.
Highlight the key role of cohesion policy in enhancing regional competitiveness and help all regions reap the benefits of international trade.
Repeat its lognstanding position that territorial impact assessments can be powerful tools to identify and quantify the possible asymmetric impacts of trade deals on European regions early on.
Express the CoR position on global challenges such as WTO reform, distorted competition caused by foreign subsidies, the role of trade in sustainable development, the link between the Green Deal and trade policy.

Impact

In its response to the opinion request to keep the CoR systematically informed and to take account of the possible local and regional repercussions of trade at an early stage in the negotiations the European Commission states that it is seeking input (through a consultation) on how to promote an ʻOpen Strategic Autonomyʼ - reaping the benefits of openness for businesses, workers and consumers, while protecting them from unfair practices and building up resilience to be better equipped for future challenges.

The opinion called for EU FTAs to include strict rules on transfer mispricing, fraudulent transfer pricing and tax evasion by listed companies. The Commission responded by a Communication on tax good governance adopted on 15 July 2020 that aims to improve the EU listing process and supporting developing countries in a framework of dialogue and engagement with the third countries concerned.

Essential points

THE EUROPEAN COMMITTEE OF THE REGIONS

- welcomes the Commission's annual report on the implementation of FTAs; considers it not only as a crucial step towards increased transparency but also as an effective instrument for providing the public with objective background information about trade agreements negotiated by the EU;

- is of the opinion that more needs to be done to disseminate information about the functioning of international trade, particularly at the level of Member States and their local and regional authorities, which have a key role to play due to their knowledge of and proximity to SMEs on the ground;

- notes with concern that the complexity of rules of origin and of administrative forms required by EU trade partners for granting preferences to EU companies, as well as the effort involved in proving preferential origin, seems to be disproportionate for EU SMEs as they do not have the same resources as big companies;

- holds the view that despite the overall economic growth triggered by FTAs, there are some economic sectors, along with the regions hosting them, which are likely to be negatively affected;

- strongly believes that territorial impact assessments can be powerful tools to identify and quantify the possible asymmetric impacts of trade deals on European regions early on;

- understands that the COVID-19 crisis is a major shock for European and global economies and will distort opportunities from global trade for European SMEs.

- welcomes additional funds assigned for Cohesion Policy, which can be used to fight the economic impact of the crisis, including by provision of investment and liquidity into affected SMEs on ground, particularly those in the hardest hit sectors. This will ensure that as many businesses and employment places are rescued

Timeline