The trade committee this week began deliberating Mr Sturdy’s proposal for the parliament to grant assent to the wider agreement, with a vote expected in September. The committee has also today adopted a separate report which creates a safeguard mechanism, enabling the EU to restore Most Favoured Nation duty rates, if the deal threatens to cause serious injury to an EU industry.

Mr Sturdy, a member of the European Conservatives and Reformists group in the parliament, said that the committee’s adoption of the emergency safeguard element of the deal heralds the way to a swift vote in the parliament on the whole agreement. MEPs now have the power of consent regarding international trade deals following the entry into force of the Lisbon Treaty.

Mr Sturdy said:

“We often hear rhetoric about the dangers of resorting to protectionism in the economic downturn but this FTA clearly demonstrates to the world that the EU is open for business.

“Chemicals, pharmaceuticals, iron and steel, auto parts, shoes, spirits and medial equipment exporters will all see substantial savings after tariffs are removed. Non-tariff barriers to trade such as technical standards for cars or certification procedures for consumer electronics will also be broken down.

“Of course the long-term benefits of free trade will outweigh any potential short term concerns. Nevertheless, the parliament has also adopted a safeguard clause which ensures that the FTA cannot cause unforeseen harm to EU industries. The text also ensures strict labour standards are in place to prevent unsustainable development or worker exploitation. This agreement will enable European and Korean economies to enjoy the medicine of free trade without worrying about side effects.

“I hope that the parliament’s strong show of support for the safeguard clause will now herald the way for the parliament’s swift approval of this entire historic agreement.”

I wrote a letter to the Commission asking them to clarify what benefits the agreements would have for us, particularly with regards to our agricultural sector.  Below is a copy of the response I received:

As the Honourable Member rightly points out, the EU is a strong exporter of agricultural goods into the Korean market with major exports in pork (EUR 240 million per year), whiskey (EUR 176 million) and dairy products (EUR 99 million).

Today, only 2% of EU agricultural exports to Korea enter duty free. The very high Korean tariffs on these goods would be eliminated thanks to the Free Trade Agreement (FTA), and – based on current trade – EU agricultural exporters would globally save EUR 380 million currently paid. Producers of dairy products would save almost EUR 30 million and those of processed vegetables EUR 1.7 million. European wine exports to Korea would be duty free at entry into force of the agreement while whisky exporters would enjoy duty free access within three years.

Besides the duty savings on current exports and as Korean agricultural tariffs are currently very high, trade in the agricultural sector is expected to expand significantly once the FTA is in force. Duty free access for agricultural exports to Korea will support exports by EU farmers and food producers and will thus contribute to safeguarding jobs in the agricultural sector.

In addition to improved market access for agricultural products, the FTA will ensure a high level of protection for well known and commercially important European geographical indications (GIs) in Korea. This is particularly important in the highly competitive Korean market.

Not the least, due to the high Korean tariffs, certain EU agricultural exports would appear particularly vulnerable to displacement by United States (US) products should the US-Korea FTA enter into force before the EU-Korea FTA and reduce tariffs on imports from the US.  The EU is currently in a position to see its FTA with Korea become applicable before the US-Korea FTA. In giving its consent swiftly, the Parliament would be making an essential contribution to ensuring that EU agricultural exports get significantly better access to the Korean market, and possibly also increase their market share in Korea.

As you can see, the agreement will bring huge benefits to the UK economy, which is why I will be doing my utmost to ensure that it is ratified as soon as possible.

3 March 2010

Euro MP Robert Sturdy has welcomed the launching of talks towards a free trade agreement (FTA) between Vietnam and the EU that could allow the Asian country to export more to Europe, the world’s biggest consumer market.

Mr Sturdy, Conservative International Trade spokesman, said these talks were crucial as it was one of several bilateral deals the EU was pursuing with emerging economies with the hope of striking a wider World Trade Organization pact in the near future.

Mr Sturdy said:

“I am delighted that Vietnam and the EU have decided to move towards an FTA.  Although the agreement may be many years in the making, I think that the economies of Vietnam and the EU are well suited, and a deal will lead to great opportunities for both sides, but particularly for the Vietnamese, helping to create jobs and foster development.”

“Some have expressed concern that a bilateral deal with hinder progress on the Doha round of talks at the WTO, but this is not the case.  During his visit to the European Parliament last week Pascal Lamy, the head of the WTO, stated that there was no evidence to support this theory.

“I am also particularly delighted that a new round of free-trade agreement negotiations will be held with Singapore next week following the announcement of our talks with Vietnam, and that we should share a vision as partners in trade and partners in growth.”

The bilateral Free Trade Agreement (FTA) negotiations were launched following a meeting between EU Trade Commissioner Karel De Gucht and Vietnamese Prime Minister Nguyen Tan Dung in Hanoi today.

Trade in goods between the two countries was almost €12 billion ($16.27 billion) in 2008 and has increased 12% a year between 2004 and 2008, said the commission, the EU’s executive arm.

Notes to Editors:

1. Robert Sturdy MEP is available for interview on 0032 2284 7294 or through Press Officer Ellee Seymour on 01353 648564 or 07939 811961. Please see Robert’s website at http://robertsturdymep.com

Brussels Wednesday 3 March 2010. Conservative International Trade spokesman Robert Sturdy today welcomed the European Commission’s ambitious trade deal with Peru and Colombia.

The trade agreement is step in the right direction in increasing prosperity in the region and in the development of human rights, he said.

In a statement Mr Sturdy said,

“I welcome the conclusion of the talks and the opportunities that will come forward from this ambitious trade deal.

“It is a step in the right direction towards increasing trade,  prosperity and will undoubtedly bring jobs to the region. In addition stable and sustainable trade will be used to foster development and human rights.

“There are concerns that a bilateral deal will hinder regional integration, but this is not the case.  During his visit to the European Parliament last week Pascal Lamy, the head of the WTO, stated that bilateral deals could be used as a springboard towards more comprehensive regional agreements. I am encouraged by Peru and Colombia’s efforts and hope that other countries in the area will follow suit.”

Brussels 16 February 2010. Conservative International Trade spokesman in Europe Robert Sturdy MEP, said the European Commission decision to remove trade concessions to Sri Lanka would punish innocent Sri Lankans. The trade concessions are referred to as GSP + status.

Mr Sturdy added that human rights violations cannot be ignored but called on the European Commission to work closely with the Sri Lankan government in tackling any violations instead of punishing the country as a whole.

In a statement Mr Sturdy said,

“I am concerned about the impact that the removal of these trade concessions will have on development in Sri Lanka. Trade is the principal means for development and by taking away their GSP + status, you are limiting the country’s ability to grow.

“I wrote in December 2009 asking the Commission what the economic impact would be if it decided to remove Sri Lanka’ GSP+ status. I am still awaiting a response. Now we have a new Trade Commissioner, with a background in development policy, I would hope for some real answers.

“It goes without saying that human rights violations cannot be ignored. I am calling on the Commission to work closely with the Sri Lankan government over the next few months, to assess the efforts being made to tackle any violations, and to consider how it will support the innocent Sri Lankan people who will suffer as a result of this heavy-handed action.”

Ends

ECR Press Office – Alex Benjamin +32 (0)476 056 450

30 November 2009

The EU is failing to show leadership in the World Trade Organisation talks in Geneva by allowing the Doha trade round to be sidelined, Robert Sturdy MEP, European Conservatives and Reformists trade spokesman in the European Parliament, has warned.

Faced with an increasing hostility towards trade liberalisation in Washington, and tit-for-tat protectionism between the USA, China and India, the first ministerial meeting since 2005 will instead focus on institutional reform.

Mr Sturdy said:

“Faced with clear opposition in Washington and a half-in, half-out trade commissioner, it is easy for the EU to let this opportunity pass without raising Doha, but we will never get a deal that way.

“There is growing desperation around the world for a deal which would boost all of our economies, but particularly those in the developing world. It seems that everyone at the meeting wants to talk about Doha except for the USA.

“A deal may seem far-fetched at the moment but it will become impossible unless the EU flexes its muscle and stands up for liberalisation of global markets. If the USA resorts to protectionism, the EU will follow, and the results for global trade will be devastating.”

Notes to Editors:
1.    Robert Sturdy MEP is available for interview on 0032 2284 5294 or through Press       Officer Ellee Seymour on 01353 648564 or 07939 811961.
2.    Further information is also available from James Holtum at the ECR Press Office on 0032 473 861762

Each member state is entitled to nominate an individual to become Commissioner and the Trade portfolio is one of the most sought after post’s in the European Union’s 27 member executive arm.

The Trade Commissioner has full competence to negotiate trade deals, take action in the WTO and impose duties on imports from countries deemed to be causing harm to EU industry.

The newly elected President of the Commission, Jose Manuel Barroso, has already expressed his support for Baroness Ashton.

“While I have had many disagreements with Commissioner Ashton during her time here, most recently over anti-dumping measures on Chinese and Vietnamese made shoes, I believe that she has performed well in her role as European Commissioner.  She has certainly achieved more in two years than Mandelson managed in his time in Brussels and has been far more willing to engage with the European Parliament.

“I hope that if Commissioner Ashton is reappointed to her role that she will continue in her laudable pursuit of free trade deals, opening markets, increasing global trade integration and a conclusion to the Doha round while rejecting protectionist measures.  If the Commissioner continues in these laudable objectives, I am sure that we can work together on a range of issues to advance the United Kingdom’s trading interests in the world.”