Competitiveness and Trade

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competitiveness and trade
02 Dec.2014

Shifting Gears for a New EU Industrial Partnership - A Manifesto

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.
 

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27 Nov.2014

PACT with EU policy makers

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.

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29 Nov.2013

EU-US TTIP negotiations CEPI-AF&PA joint statement

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 b.lombard@cepi.org
- AF&PA: Jacob Handelsman, Senior Director, International Trade, at jake_handelsman@afandpa.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.

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11 Nov.2013

Why the EU-US TTIP needs to be top notch

Paper industry points out major topics for second round negotiations

The Confederation of European Paper Industries (CEPI) supports the negotiations of an EU-US Transatlantic Trade and Investment Partnership (TTIP), aiming at the full liberalisation of bilateral trade in goods and services. Its largest potential benefits lie in raw materials and energy trade liberalisation, cooperation on rules and standards as well as future regulation frameworks, according to CEPI. The paper industry in the EU and the US will deliver relevant provisions for the agreement through a constructive sectoral dialogue.

Underlining the importance of this partnership CEPI Director General Teresa Presas stated: “We believe a well-negotiated partnership represents a strong potential driver for mutual job creation, economic growth and competitiveness in our industry. The EU and the US are significant players in the global pulp and paper market. They trade 4.5 million tonnes of pulp and paper every year and account for more than 40% of the worldwide production.”

The EU-US TTIP needs to explore trade liberalisation in the area of raw materials and energy. Here, the TTIP negotiations have to ensure free access to energy within the transatlantic market, particularly natural gas from the US. Gas prices in Europe have doubled since 2003, while shale gas has brought US gas prices to extraordinary low levels. Additionally, imports of chemicals into the EU are still affected by tariffs and starch imports are subject to substantial charges before entering EU markets.

Subsequently, cooperation on rules and standards could fetch higher efficiencies, lower compliance costs for industry as well as reduced administrative burden. The US and EU, for example, have both taken major steps when it comes to wood legality. The US implemented the Lacey Act several years ago and the EU recently adopted the Timber Regulation. The two schemes need to converge in scope and requirements and aim at a simplified declaration systems to become more effective in addressing illegal logging.

Additionally, CEPI considers it essential to promote cooperation at an early stage and set a framework for future consultations and impact assessments. Impact assessments on trade and investments flows should be prepared every time regulatory initiatives start. And analyses of existing regulations that come up for review are essential for increasing compatibility and coherence in regulation. Finally, cooperation on new and emerging issues such as nano-materials would help prevent future trade irritants.

More details in the CEPI position paper on the EU-US Transatlantic Trade and Investment Partnership: http://www.cepi.org/node/16581

#END#


For more information, please contact Daniela Haiduc at d.haiduc@cepi.org, mobile: +32(0)473562936

Note to the Editor

EU-US Transatlantic Trade and Investment Partnership site: http://ec.europa.eu/trade/policy/in-focus/ttip

European Commission press release 11 November: http://europa.eu/rapid/press-release_IP-13-1069_en.htm
 

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25 Sep.2013

EU-US Transatlantic Trade and Investment Partnership: additional bilateral market openings and regulatory convergence to deliver competitiveness and a level playing field

The talks between the EU and US for a Transatlantic Trade and Investment Partnership (TTIP) began in Washington on 8 July. These negotiations aim to achieve ambitious outcomes in three broad areas: a) market access, b) regulatory issues and non-tariff barriers, and c) rules, principles and new modes of cooperation to address shared global trade challenges and opportunities.


The EU is the world leader in paper exports and the US is its main trading partner. Around 4.5 million tonnes of pulp and paper are traded between the two areas every year. Importantly, this trade has been free of import tariffs since 20041. The European and the US paper industry together accounts for more than 40% of the global production.


CEPI supports launching negotiations with the US, aiming at the full liberalisation of bilateral trade in goods and services. In addition, we believe the EU-US TTIP gives an opportunity to explore further trade liberalisation in raw materials and energy. CEPI views the TTIP’s biggest potential benefits as being the elimination, reduction and prevention of unnecessary “behind the border” obstacles to trade and investment. This is of primary importance, especially for the companies operating on both sides of the Atlantic.


We hold the TTIP should envisage convergence in a wide range of areas, including not only wood legality and renewable energy legislation but also standards for paper for recycling. This convergence should deliver reductions in both compliance costs and administrative burdens.


In parallel, the TTIP should create a basis for genuine international leadership as well as providing new momentum to developing and implementing international regulations and standards. Overall, CEPI believes it represents a strong potential driver of mutual job
creation, economic growth and competitiveness.


Non-discriminatory access to US gas is a ‘sine-qua-non’ condition


The TTIP negotiations have to ensure no discrimination or restriction regarding access to energy within the transatlantic market, particularly natural gas in the US.


Natural gas provides 40% of the European pulp and paper industry’s energy needs, next to the over 50% bioenergy in our fuel mix. Many of the most efficient power plants run on natural gas. Significantly, while gas prices in Europe have doubled since 2003 and are expected to keep rising, shale gas has brought US gas prices to extraordinary low levels.


CEPI holds the TTIP should lead to a common strategy to reduce energy and raw material export restrictions at the global level. It should set rules to provide an open, stable, predictable, sustainable, transparent and non-discriminatory framework for traders and investors worldwide.


Tariffs on the pulp and paper industry’s raw materials and chemicals have to be eliminated on both sides on the agreement’s entry into force

CEPI calls for tariff elimination to occur on the agreement’s entry into force, with transition periods, if any, being kept as short as possible for sensitive products. In addition to wood and paper for recycling, the pulp and paper industry is a major user of non-fibrous raw materials and chemicals. Imports of chemicals into the EU are still affected by tariffs2 and starch imports also subject to substantial tariffs3 to enter EU markets.


Cooperation on rules and standards mean higher efficiency, lower compliance costs
and a reduced administrative burden


The European and US paper industries, as founding members of the ICFPA4, have both actively promoted sustainable forest management and fought illegal logging at the global level while also increasing recycling.

The US and EU have taken major steps regarding wood legality, with the former having implemented the Lacey Act for several years and the latter having recently adopted the Timber Regulation. CEPI firmly believes that the convergence of the two schemes in terms of scope and requirements should be aimed at and the declaration systems simplified as much as possible. However, an end to the illegal wood trade can only be achieved through a push at a global level.

Equally, convergence would also deliver mutual benefit in recycling. We believe paper for recycling grades definitions5 requires harmonisation on both sides of the Atlantic.

We call for increased cooperation between EU and US standardisation bodies to reduce redundant and burdensome testing, harmonisation of certification requirements and further development of international standards.

Convergence on climate change and energy policies is needed to avoid highly distorting measures and deliver higher results at the global level

The European paper industry has made strong and clear commitments to sustainable development and mitigating climate change, transparently reporting on its progress.

However, regulatory convergence is required to deliver on climate change mitigation and environmental protection objectives. Consequently, CEPI believes EU and US policies aiming at reducing greenhouse gas emissions and promoting bioenergy and biofuels should converge to raise efficiency and reduce  distortion.

We view the TTIP as being a platform to address the most distortive forms of subsidies and scenarios where government interference is distorting markets. For example, US fuel tax credits have highly distorted competition with Europe in recent years, without any significant environmental benefits.
 

Carbon neutrality of biomass and sustainability criteria should be jointly promoted for the sustainable sourcing and conversion of solid biomass, irrespective of the final wood use. This convergence process should bind both parties at all administrative levels (EU Member States and the US state governments) to ensure a maximum efficiency and effectiveness.

Future regulation developments: the need for increased consultation and cooperation

CEPI considers it essential to promote cooperation between regulators from both sides at an early stage. A framework for future cooperation has to be set up, where procedures for consultation and impact assessment are considered. Ex-ante impact assessments on trade and investments flows should be carried out when preparing regulatory initiatives, with only compatible regulations being adopted. This should be done through an effective, evidencebased bilateral consultation mechanism, with its outputs shared transparently.

Furthermore, the TTIP should include provisions on ex-post analysis of existing regulations that come up for review. We consider it essential to avoid missing opportunities to both increase compatibility and coherence as well as remove unnecessary regulatory complexity.

Cooperation on new and emerging issues such as nano-materials would help prevent future trade irritants. We believe mutual consultation at an early stage should become common practice, triggered whenever US agencies or the European Commission start developing new criteria or legislation.

Beyond the agreement, the TTIP should remain a dynamic, ‘living’ agreement with sufficient flexibility to incorporate new areas and issues over time.

CEPI will contribute to a successful TTIP by delivering relevant sectoral provisions to be included in the agreement through a constructive dialogue with its US counterpart.
 

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1 As a result of the WTO Uruguay Round sectoral agreement of 1994.
2 HS Chapters 28, 29, 32, 35 and 38 with average ad valorem import tariffs of 5-6%.
3 HS Chapters 11 and 35 with import tariffs up to 224 euros / tonne.
4 International Council of Forest and Paper Associations - http://www.icfpa.org/
5 European standard EN 643.²

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