External Trade

source Alphaspirit

The EU manages trade and investment relations with non-EU countries through the EU's trade and investment policy.

Trade policy is an exclusive power of the EU – so only the EU, and not individual member states, can legislate on trade matters and conclude international trade agreements.

Trade policy is set down in Article 207 of the Treaty on the Functioning of the European Union (TFEU).

European Parliament decides jointly with the Council on the framework of EU trade policy – through the ordinary legislative procedure.

The Commission has the right of initiative, for its proposals to be formally adopted, agreement has to be reached between the co-legislators.

International agreements are adopted by the Council, after the Parliament has given its consent.

The Commission negotiates with the trading partner on behalf of the EU. It does this, working closely with the Member States in the Council and keeping the European Parliament fully informed.

The Commission must request an authorisation to negotiate a trade agreement with a trading partner from the Council, which sets out the general objectives to be achieved. While negotiations are going on, the Commission reports regularly to Council and the European Parliament.

Once the Commission has completed the negotiations, it presents the deal to the Council and the European Parliament. They are the ones to formally agree the outcome and prepare the way for signature and ratification of the deal with the trading partner.

The trade agreement enters into force once it is fully ratified but parts of the agreement can be provisionally applied if the Member States agree to do so.

CECE has an interest in the EU external trade policy, since our companies are very much internationally oriented and the demand of construction equipment has recently shifted to China, South America and India, with European demand representing only 20% of the global demand.

This is the reason why CECE is interested in the negotiations currently carried out by the European Commission on behalf of its citizens and businesses.

Transatlantic Trade and Investments Partnership

Currently, CECE is active on the TTIP negotiations.

This agreement, the biggest bilateral trade deal ever negotiated, could result in millions of euros of savings to companies and create hundreds of thousands of jobs. Together the EU and the United States account for almost half of global GDP and one-third of total world trade. According to an impact assessment by the Commission, a comprehensive trade and investment agreement could increase EU GDP by between 0.27 % and 0.48 %, and EU gross national income by up to € 86 billion. Bilateral EU exports would rise by 28% and bilateral US exports would increase by 36%, creating thousands of jobs on both sides of the Atlantic. Some also estimate a significant spill-off effect (GDP increase +100 bio/ €).

The massive potential towards growth and jobs of a comprehensive trade and investment agreement will benefit the European Construction Equipment Industry, by re-launching the economy and enabling both blocks to invest in much needed investment in infrastructure, construction, raw materials and commodities.

Please download CECE position on the TTIP here.

CECE on EU-Russia relations

International trade in industrial machinery between the EU and Russia has become increasingly intensive. The importance of trade of industrial machinery to Russia is significant and growing fast.

On the other hand, CECE welcomed the bilateral talks between the EU and the Russian Federation concerning an access of the Russian Federation to WTO and in general to enhance commercial relations (see our past position here). CECE also took part in the EU-Russia Industrialist Roundtable working on proposals to align technical provisions applying to Construction Equipment between EU and Russia.

However, the recent Russian access to the WTO system has not indeed lead to major advancements when it comes to market access.
On the contrary, the introduction of Government Resolution N 870 has led to significant economic and administrative burden and unequal treatment between Russian manufacturers and European companies conducting business operations on the territory of the Russian Federation.
CECE member association AEB CEC has advocated equal treatment towards all manufacturers and sees the need for revision of the Government Resolution № 870,taking into consideration specificity of the construction equipment manufacturing, recycling processes, and economic effect of the disposal fee rates for this machinery on the Russian economy. Find here their Position Paper.