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.