A landmark study by the Economic Policy Institute (EPI) released last week reveals that if the EU grants Market Economy Status (MES) to China, the EU could lose 3.5 million jobs and 2% of GDP. Read AEGIS Europe press release here.
CEPI is a member of the AEGIS alliance. Follow AEGIS on Twitter @AEGISeurope
Industrial policy is back! European paper industry strongly welcomes European Commission’s renewed focus on industrial policy
Today European Commissioner Bieńkowska presented to the European Parliament her views on a new industrial policy for Europe. The Commissioner has done this in a new and refreshing approach, by sending a letter to the member states instead of yet another Communication from the Commission. The policy builds on the 20% industrial GDP target set by the former Commission.
“European industrial competitiveness is at the heart of the policy agenda of the European Commission”, said the Commissioner in the European Parliament today.
The new approach will mainstream industrial policy perspectives in all EU Commission policies launched by this Commission. The aim is to break down the silos in the Commission and really integrate the Commission’s work, in a partnership between business and policy makers.
“We feel the Commission has understood that industry is at the heart of European growth. That it provides real jobs to real people and that we have the potential to grow industry in Europe” said Marco Mensink, Director General of the Confederation of European Paper Industries (CEPI).
CEPI welcomes the new High Level Group on Energy Intensive Industries that Commissioner Bienkowska has initiated. This will focus among other on the upcoming debate on the market economy status of China and the review of the EU Emission Trading System. Both are crucial files for the future of the paper industry in Europe.
The review of the EU ETS will be the first proof of the mainstreaming approach. "The EU ETS review is the single largest industrial policy decision for this Commission.” says Marco Mensink. “We look forward to an ETS proposal that combines a focus on carbon reduction and breakthrough innovation with a proper protection of all energy intensive industries. The European Council in October last year decided that the best companies in the energy intensive sectors such as the pulp and paper industry should not face undue carbon costs. The Commission shall now put this in practice in the EU ETS proposal that will be launched July 15th”.
For more information, please contact Annie Xystouris at firstname.lastname@example.org mobile: +32(0)486243642.
Note to the Editor
The pulp and paper industry provides 180,000 jobs in Europe directly, and 1.5 million in the value chain. It has a turnover of 75 billion euros and adds 15 billion euros to the EU GDP. It is strong in export markets and will invest 5 billion euros in Europe up to 2017.
The Alliance for a Competitive European Industry groups 11 major European industry sector associations (including CEPI) and BUSINESSEUROPE.
The common objective of its members is to promote the competitiveness of European industry on a global scale and to help address Europe’s transformation towards a sustainable and low-carbon future.
The Alliance members account for:
• 23 million jobs
• 1.3 million companies (more than 3/4 of which are SMEs)
• €5.7 trillion turnover annually
• 10.7% of EU GDP
The EU manufacturing industry accounts for about 20% of European GDP. But industry’s strategic importance is far greater because it accounts for 1 in 5 jobs and it is at the very heart of both innovation (with 80% of all R&D expenditure) and global competitiveness (with 75% of exports). Europe needs a vibrant industry to spark the innovation and growth required to meet the societal and environmental challenges that lie ahead.
Europe’s political leadership, including the European Commission, the European Parliament and Member State governments has acknowledged the exceptional role of industry. Each of these institutions has repeatedly declared that a strong and competitive industrial base is a key factor for achieving a knowledge-based, safe and sustainable low-carbon resource-efficient economy with substantial manufacturing employment.
We call on the political leadership to develop a long-term industrial policy that would establish favourable, stable, consistent and predictable conditions to help businesses to invest, to promote excellence, innovation and sustainability and to ensure we meet the European Commission’s goal that industry’s share of GDP should be as much as 20% by 2020.
CEPI launched its PACT with EU policy makers, a call for cooperation with the Juncker Commission. It underlines the industry’s 5 billion euro investments in Europe in the next 3 years and the strong need for adequate policymaking to enable this.
EU-US Transatlantic Trade and Investment Partnership: regulatory cooperation will provide the biggest benefit to the pulp & paper industry
The American Forest & Paper Association (AF&PA) and the Confederation of European Paper Industries (CEPI) and their members are strong proponents of free but fair trade. They support the objectives of the Transatlantic Trade and Investment Partnership (TTIP) negotiations aimed at eliminating barriers to trade, including regulatory barriers. The further reduction or elimination of trade barriers will strengthen the economies of the U.S. and the EU and enhance their global competitiveness.
The combined EU and U.S. pulp and paper industry accounts for more than 40% of the worldwide production and some companies have operations on both sides of the Atlantic. U.S.-EU trade in pulp and paper is very robust and both areas are among each other largest foreign markets. In 2012, U.S.-EU trade of pulp and paper & paperboard totalled $6.4 billion / €5.0 billion1.
The U.S. and the EU eliminated tariffs on all pulp and paper (Chapter 47 and Chapter 48 of the Harmonized System, respectively) as part of their implementation of the 1994 Uruguay Round Agreement of multilateral trade negotiations. Enhanced regulatory cooperation, particularly in the area of timber legality, renewable energy and biomass, environment, health & safety, and recovered paper definitions is a new step that will provide a real benefit to the pulp and paper industry.
Closer regulatory cooperation between the U.S. and the EU has the potential to generate significant cost savings and efficiencies. As suggested by the Final Report of the U.S.-EU High Level Working Group on Jobs and Growth, the elimination, reduction and prevention of unnecessary regulatory barriers are expected to provide the biggest benefit of the TTIP. While the U.S. and the EU regulatory systems differ, they share regulatory objectives because citizens on both sides of the Atlantic demand high level of protection.
TTIP should create a basis for genuine international leadership as well as providing new momentum to improve environmental, health and safety standards around the world.
“The U.S. and European pulp and paper industries are interested in achieving a more open and efficient regulatory environment, such as greater access and transparency of each other’s regulatory processes and mutual recognition that avoids duplicative compliance efforts,” said AF&PA President and CEO Donna Harman.
In this regard, there are a number of areas where a sectoral approach on greater regulatory cooperation could reduce costs and administrative burdens in both the U.S. and the EU. As CEPI Director General Teresa Presas stated: “The pulp and paper sector, as represented by AF&PA and CEPI, is well positioned to reach more detailed regulatory cooperation within the overall TTIP negotiations, both on existing regulations as well as regulation on new and emerging products”.
The paper industry in the EU and the U.S. will work to reach agreement on specific proposals through a constructive sectoral dialogue. In addition, CEPI and the AF&PA believes that, beyond the agreement, the TTIP should remain a dynamic, ‘living’ agreement with sufficient flexibility to incorporate new areas and issues over time.
For more information, please contact:
- CEPI: Bernard Lombard, Trade & Competitiveness Director, at email@example.com
- AF&PA: Jacob Handelsman, Senior Director, International Trade, at firstname.lastname@example.org
CEPI aisbl - The Confederation of European Paper Industries
The Confederation of European Paper Industries (CEPI) is a Brussels-based non-profit making organisation regrouping the European pulp and paper industry and championing this industry’s achievements and the benefits of its products.
Its collective expertise provides a unique source of information both for and on the industry; coordinating essential exchanges of experience and knowledge among its members, and with the industry stakeholders. Through its 18 member countries (17 European Union members plus Norway) CEPI represents some 550 pulp, paper and board producing companies across Europe, ranging from small and medium sized companies to multi-nationals, and 1000 paper mills. Together they represent 24% of world production.
American Forest & Paper Association (AF&PA)
The American Forest & Paper Association (AF&PA) serves to advance a sustainable U.S. pulp, paper, packaging, and wood products manufacturing industry through fact-based public policy and marketplace advocacy. AF&PA member companies make products essential for everyday life from renewable and recyclable resources and are committed to continuous improvement through the industry’s sustainability initiative - Better Practices, Better Planet 2020. The forest products industry accounts for approximately 4.5 percent of the total U.S. manufacturing GDP, manufactures approximately $200 billion in products annually, and employs nearly 900,000 men and women. The industry meets a payroll of approximately $50 billion annually and is among the top 10 manufacturing sector employers in 47 states.
Visit AF&PA online at afandpa.org or follow us on Twitter @ForestandPaper.
1 Pulp: $1.95 billion / €1.52 billion and paper & paperboard $4.44 billion / €3.5 billion.