PES 2024 - DAY 1 - EUROPEAN CHAT: The Future of Global Trade – SPEECHES

Summary

The Prague European Summit's economic block commenced with a call for attendees to return borrowed translation devices. Valdis Dombrovskis, Executive Vice President of the European Commission, delivered a special video message addressing the EU's challenges and future policy directions. He emphasized the importance of trade for the EU's competitiveness and economic security, highlighting the need for diversification and global partnerships to counter supply chain vulnerabilities. He also stressed the EU's role in reforming the WTO and securing access to critical raw materials, while protecting against economic risks through updated trade instruments.

Takeaways

• 📅 The event is starting shortly, with a reminder for attendees to take their seats.
• 📢 An announcement is made to return borrowed translation devices, emphasizing their value.
• 🎥 The event will proceed with a screening of a famous Milos Forman movie, requiring the lights to be turned off.
• 🏛 The event is part of the Prague European Summit, focusing on economic discussions following recent elections and before the EU's strategic agenda is approved.
• 🔑 The term 'competitiveness' is highlighted as a new buzzword within the EU institutions.
• 🌐 The script discusses the importance of trade for Europe's prosperity, with 90% of global economic growth expected to occur outside the EU.
• 🤝 Trade agreements are crucial for securing access to critical raw materials and creating export opportunities for EU businesses.
• 🌍 The EU has the world's largest network of trade agreements, with 74 countries, contributing to over 2 trillion EUR in trade value in 2022.
• 🛡 The EU is leading efforts to reform the World Trade Organization to better address contemporary challenges like digital trade and climate change.
• 🔄 The need for diversification in trade partners is emphasized to improve resilience against supply chain risks.
• 🛂 New trade instruments have been introduced by the EU to protect against economic security risks and ensure fair competition, such as the anti-coercion instrument and foreign subsidies regulation.
• 🔍 The EU is investigating imports of Chinese battery electric vehicles, showing a commitment to maintaining economic security and a level playing field.

Q & A

What is the main topic of discussion at the Prague European Summit's economic block?

The main topic of discussion is the competitiveness and economic security of the European Union, especially in the context of recent geopolitical changes and crises.

Why is the European Commission emphasizing the importance of trade for the EU's economy?

Trade is emphasized because it allows the EU to tap into the growth potential of other regions, access vital inputs for green and digital transitions, and create export opportunities for businesses to compete globally.

What is the significance of the EU's network of trade agreements in terms of economic growth?

The EU's network of trade agreements with 74 countries has contributed to EU trade exceeding 2 trillion EUR in value for the first time in 2022, highlighting the importance of these agreements for economic growth.

How does the EU plan to address the challenges faced by the World Trade Organization (WTO)?

The EU aims to reform the WTO to make it fit for purpose in today's world, better addressing challenges such as digital trade, climate change, and dealing with unfair subsidies.

What measures is the EU taking to improve its economic security and resilience?

The EU is diversifying its trade network, creating alternative forms of engagement, and updating autonomous trade instruments such as anti-coercion instruments, foreign subsidies regulations, and FDI screening regulations to protect against economic risks.

How does the EU's trade agreement with Chile impact the sourcing of critical raw materials?

The trade agreement with Chile strengthens the EU's reliable sourcing of copper, as Chile is the EU's largest source of this key material, enhancing economic security and resilience.

What role does the EU's trade engagement play in upholding competitiveness and economic security?

EU's trade engagement is essential for maintaining an open economic model, securing access to energy and critical raw materials, and ensuring a level playing field against unfair competition and economic security risks.

What is the EU's stance on the use of its autonomous trade instruments to protect its single market?

The EU is committed to using its autonomous trade instruments when necessary to protect the single market from unfair competition and risks to economic security, while respecting the principles of proportionality and precision.

How does the EU plan to engage with its trading partners to enhance competitiveness and economic security?

The EU plans to actively engage by negotiating with a wide range of trading partners, staying flexible, and making use of various forms of agreements and platforms to ensure fair competition and economic security.

What is the significance of the EU's investigation into imports of Chinese battery electrical vehicles?

The investigation signifies the EU's commitment to ensuring fair competition and addressing potential economic security concerns, while adhering to international legal obligations.

How does the EU's approach to global trade contribute to its long-term economic strategy?

The EU's approach to global trade, which includes active engagement and the use of autonomous instruments, is essential for contributing to the EU's competitiveness and economic security, forming a balanced long-term economic strategy.

Outlines

00:00

📣 Opening Announcement and Economic Discussion

The script begins with an announcement for attendees to take their seats as the event is about to start. There's a reminder to return borrowed translation devices due to their high cost. The main event, the Prague European Summit, is introduced with a focus on competitiveness in the post-election context and before the EU's strategic agenda approval. The Executive Vice President of the European Commission, Valdis Dombrovskis, addresses the audience virtually, discussing the EU's challenges, including crises and geopolitical changes. He emphasizes the need for economic resilience through supply diversification and maintaining global partnerships, highlighting the EU's vulnerability to supply chain dependencies, particularly in energy.

05:01

🌐 Trade and Economic Security Strategies

This paragraph delves into the role of trade in enhancing the EU's competitiveness and economic security. It mentions the importance of trade for prosperity, access to growth potential in other regions, and securing vital inputs for green and digital transitions. The EU's trade agreements are highlighted, with 74 countries covered, contributing to over 2 trillion EUR in trade value in 2022. The paragraph also discusses the EU's efforts to reform the World Trade Organization (WTO) and the need for global rule adherence. Economic security is addressed through diversification, with alternative forms of engagement like trade and technology councils, and digital trade agreements. The paragraph concludes with the mention of new EU instruments to protect against economic risks and ensure fair competition.

10:28

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15:58

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21:28

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26:57

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Keywords

💡Economic Block

The term 'Economic Block' refers to a segment of a larger event or conference that is specifically dedicated to economic discussions. In the context of this video script, it is part of the Prague European Summit, indicating that the focus will be on economic issues and strategies within the European Union. The script mentions the 'economic block of this program,' indicating that the discussions will be centered around economic policies and their implications.

💡Competitiveness

Competitiveness is the ability of an entity, such as a country or a company, to produce and sell goods and services in a competitive market. In the script, competitiveness is highlighted as a 'new buzzword' within the European Union's institutions, suggesting that it is a current priority for policy makers. The script also discusses how trade can contribute to the EU's competitiveness, emphasizing the importance of tapping into global growth potential.

💡Strategic Agenda

A 'Strategic Agenda' is a comprehensive plan that outlines the long-term goals and strategies of an organization or a group. The script mentions that the discussions will take place shortly before the next EU's strategic agenda is to be approved, indicating that the outcomes of the summit may influence or be influenced by this agenda, which is crucial for the future policy direction of the European Union.

💡Resilience

Resilience in an economic context refers to the ability of a system to withstand or recover quickly from difficulties, such as crises or shocks. The script discusses the EU's need to improve its resilience, particularly in response to the over-dependence on energy supply chains, and the lessons learned from the COVID-19 pandemic and geopolitical changes. The term is used to emphasize the importance of diversification and maintaining global partnerships.

💡Trade Agreements

Trade agreements are formal arrangements between countries or regions to reduce barriers to trade and promote economic cooperation. The script mentions that the EU has the world's largest network of trade agreements, with 74 countries, and that these agreements have contributed to trade exceeding 2 trillion EUR in value for the first time in 2022. Trade agreements are presented as a means to access new markets, secure inputs, and benefit trade partners.

💡World Trade Organization (WTO)

The World Trade Organization is an international body that sets the rules for global trade and trade policy. The script refers to the EU's efforts to reform the WTO to make it fit for purpose in today's world, addressing challenges such as digital trade, climate change, and unfair subsidies. The WTO is presented as a crucial institution for maintaining global trade rules and preventing economic fragmentation.

💡Economic Security

Economic security refers to the protection of a nation's economy from threats that could undermine its stability, growth, and prosperity. In the script, economic security is discussed in the context of supply chain risks and the need for diversification. The EU's economic security strategy includes engaging with partners and protecting against potential abuse of economic openness, as well as using autonomous trade instruments to ensure a level playing field.

💡Supply Chain

A supply chain is the network of organizations, people, activities, information, and resources involved in producing and delivering a product or service. The script highlights the EU's vulnerability to supply chain over-dependence, particularly in energy, and the need to diversify supply sources to improve resilience. The term is used to discuss the risks associated with reliance on a single source for critical goods and services.

💡Autonomous Trade Instruments

Autonomous trade instruments refer to the set of policies and regulations that a country or region can independently apply to manage its trade relations and protect its economic interests. The script mentions the EU's recent updates and expansions of these instruments, such as the anti-coercion instrument, foreign subsidies regulation, and FDI screening regulation, to protect against unfair competition and economic security risks.

💡Sustainability Standards

Sustainability standards are criteria that ensure that economic activities are environmentally, socially, and economically sustainable. The script discusses the EU's aim to raise sustainability standards globally through its trade agreements, indicating a commitment to not only economic growth but also to responsible practices that consider the long-term health of the planet and society.

💡Critical Raw Materials

Critical raw materials are non-energy, non-agricultural raw materials that are essential for the economy and the EU's industrial base but have a high risk of supply disruption. The script mentions the EU's efforts to secure access to these materials, such as through trade agreements with countries like Chile for copper, which is vital for the EU's green and digital transitions.

Highlights

The importance of returning borrowed translation devices due to their high cost.

The announcement of the beginning of the economic block of the Prague European Summit.

The acknowledgment of competitiveness as a new buzzword in the EU institutions.

The mention of the EU's significant share of prosperity from trade and its role in tapping into global growth potential.

The emphasis on the need for the EU to diversify its IT supplies and expand its global network of partnerships for resilience.

The discussion on how trade can contribute to the EU's competitiveness and economic security.

The EU's leading role in reforming the World Trade Organization to address modern challenges.

The EU's largest network of trade agreements with 74 countries, contributing to over 2 trillion EUR in trade value in 2022.

The strategy to make the WTO fit for purpose by addressing issues like digital trade, climate change, and unfair subsidies.

The focus on diversification to mitigate supply chain risks, especially in the context of energy and critical raw materials.

The creation of alternative forms of engagement such as trade and technology councils and mutual recognition agreements.

The EU's import of 23% of critical raw materials from preferential trading partners and efforts to secure reliable sourcing.

The role of the EU's trade agreements in strengthening the sourcing of key materials like copper from Chile.

The launch of the Mineral Security Partnership Forum with the United States to enhance diversified partnerships.

The update and expansion of the EU's autonomous trade instruments to protect against economic security risks and unfair competition.

The investigation into imports of Chinese battery electric vehicles and the EU's commitment to fair competition.

The conclusion that global trade engagement will be essential for the EU's competitiveness and economic security, requiring a balanced approach.

Transcripts

ladies and gentlemen we will begin in a

short while please take your

seats one quick announcement ladies and

gentlemen we will begin in a short while

please take your seats we will begin

momentarily before we do so I would like

to make again one quick announcement

please if you have borrowed those little

stations devices for translation please

return them we have to return them they

are really expensive the next step is

copying famous Milos Forman movie and we

will have to shut down the lights so

please do not make us to do so and

return them there in in the entrance to

this

Hall ladies and gentlemen welcome back

to the main hall and welcome to the

economic block of this program of this

year's pra European Summit we have a

very packed schedule ahead of us and I

think it will be very uh timely

discussion right after the elections and

shortly before next eu's strategic

agenda will going to be approved uh

competitiveness is the new buzzword in

the institutions and also here in the

corridors and we will address it from

very different angles but first before

we start let us hear from the Executive

Vice President of the European

commission for an economy that works for

people valdis D brosis who unfortunately

can't be with us today but uh who has

sent us a special video

message ladies and gentlemen thank you

for inviting me to speak at this year's

Prague European Summit albe it

virtually as this EU institutional cycle

nears its close now it is a good time to

look at the main challenges facing the

European Union and reflect on what the

future may bring in terms of policy

direction we have been confronted with a

remarkable Cascade of Crisis and shocks

over the past years compounded by

profound geopolitical

changes on the heels of the covid-19

pandemic came Russia's illegal war of

aggression against Ukraine conflict in

the Middle East intensifying competition

between big players and greater recourse

to

unilateralism these shocks have exposed

some of our economic weaknesses and our

vulnerability to supply chain over

dependence

energy is a good example following

Russia's attempts to weaponize its oil

and gas exports to the

EU but we have drawn as

lessons we know that to improve our

resilience the EU must continuously

diversify IT supplies and it must

maintain and expand its Global Network

of reliable

Partnerships our economic challenges

have also brought into Focus the need to

do more to uphold our competitiveness

and economic

security so today I will focus on how

trade can contribute to these

goals first

competitiveness as a trading continent

Europe deres a significant share of its

Prosperity from trade trade allows the

you to tap into growth potential of

other

regions in the coming years some 90% of

global economic growth will be generated

outside the European Union so it makes

to strengthen our links with other

growth

centers trade gives us access to the

vital inputs that we need like critical

raw materials to move ahead with a green

and digital

transitions it creates the export

opportunities that allow our businesses

to reach the economies of scale to

compete

globally we want to keep our economic

model open we want to use our agreements

to tap into new markets secure inputs

but also to benefit our trade partners

and raise sustainability standards

globally when it comes to negotiating

trade deals the European Union is second

to none we have the world's largest

network of trade agreements with 74

countries thanks to these agreements EU

trade exceeded 2 trillion EUR in the

value in a first time in

2022 the EU is also leading efforts to

reform the World Trade organiz

ation if we are to fully unlock the

potential of trade we must encourage our

partners to play by the global rules of

the

game the WTO rules Remain the best

guardrails against economic

fragmentation around 55% of our trade

takes place under these

rules our aim is to make WTO fit for

purpose in today's world so that it

better addresses its challenges such as

digital trade climate change and dealing

with UNF

subsidies second Economic Security and

resilience here diversification is the

name of the game especially given the

supply chain risk that I mentioned

earlier we have continued to expand our

Trade Network of reliable

Partners uh besides classical trade

agreements we are creating Alternative

forms of Engagement that are more

flexible and tailor

made these include trade and Technology

councils with the US and India our

negotiations on digital trade agreements

with Singapore and South Korea and our

network of mutual recogition

agreements our trade deals help to

secure access to energy and critical raw

materials uh at the moment uh we import

23% of critical raw materials from

preferential trading

partners uh however our trade agreement

with Chile for example will strengthen

our reliable sourcing of copper since

Chile is the eu's largest source of this

key

material on a bilateral level we are

engaging with like-minded Partners in

strategic Partnerships on raw

materials on a multilateral level we are

engaging in the mineral security

partnership Forum that I launched with

the United States in

April uh Diversified Partnerships is a

key element of the European commission's

Economic Security

strategy along is actively engaging with

our partners we must also protect

ourselves against any potential abuse of

our economic

openness in fact this is a precondition

for maintaining our openness in the

first

place this is why we have recently

updated and expanded the eu's autonomous

trade

instruments uh for example new

instruments such as a anti-coercion

instrument foreign subsidies regulation

and the FDI screening regulation we also

updated the export control

regulation some of these instruments

address security risks others aim to

restore Fair competition and others

address sustainability concerns or

coercive

practices we have already started to use

these new

instruments this is because we do what

is necessary to protect and strengthen

our Economic Security and ensure a Level

Playing Field on this uh this week we

reached the first step in our

investigation into Imports of Chinese

battery electrical Vehicles we

predisclosure

we will always respect the principles of

proportionality and precision as well as

our International legal

obligations to

conclude I have little doubt that in

years ahead our global trade engagement

will play an essential role in

contributing to the eu's competitiveness

and Economic Security

this will require a balanced combination

of two approaches on one hand active

trade engagement by negotiating with our

wide range of trading partners staying

flexible and making use of various forms

of agreements and

platforms on the other hand using our

range of autonomous instruments were

necessary to protect the eu's single

Market from unfair competition and risks

to Economic Security thank you and I

wish you a successful conference

that was vales Dom brosis and now it is

time to open our first chat on the

future of global trade please give a

round of applause to our speakers Kung

BL senior expert for China and Asia Asia

Pacific battles

[Applause]

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