EU's Mandelson calls for new trade deals with Asia

Deutsche Presse Agentur
Published: Monday September 18, 2006

Brussels- European Commissioner for Trade Peter Mandelson on Monday called for new trade deals with countries in Asia, and urged EU governments to help make markets and trading more open. The EU must keep multilateral deals through the World Trade Organization "as the fundamental platform on which to build global liberalisation," Mandelson said in a speech in Berlin, according to a the text released by his Brussels office.

"There will be no European retreat from multilateralism," he said.

However, the 25-member bloc must go beyond the EU's existing bilateral free trade agreements by clinching new deals "designed to deliver more open markets and fairer trading conditions in new areas of growth, particularly in Asia," the commissioner said.

Mandelson argued that while Europe continues to be highly competitive in global export markets, European companies are losing ground in the high technology products and the fastest growing markets.

"Internationally, our businesses perform strongly in countries where demand is static," Mandelson said. "But in rapidly growing regions, particularly in Asia, we are underperforming," he warned.

The commissioner also said that China "is probably the single biggest challenge and opportunity of economic globalisation facing Europe."

He called on the EU to support China in tackling its social problems and integrate fully into the global economy.

However, China must remove trade barriers, open its markets, guarantee protection for intellectual property and resist pressure for economic nationalism, Mandelson said.

In addition, it must strengthen governance, accountability, transparency and respect for human rights, the commissioner stressed.

In recent months, the Asian economic giant has seen its surging textile exports to Europe curbed by the introduction of quotas. The European Commission is expected to come up with a new strategy on EU-China relations before the end of October.

Also next month, Mandelson is due to unveil new plans on how to beef up the EU's international competitiveness.

© 2006 DPA - Deutsche Presse-Agenteur