At the end of May 2019, the Netherlands will vote in the European elections. In that context, this article is focusing on international trade. Where are the challenges and opportunities for the EU's international trade policy? Driekus van de Ven is GroentenFruit Huis's European Union representative. He is very up to date on these issues. He points out that the European trade policy is of great importance in its relationship with countries outside of the EU. This is true for imports as well as exports.
What do the EU and the European trade policy mean for Dutch businesses?
The Dutch fruit and vegetable sector sends about 80% of its total exports to EU member countries annually. Germany, with an export value of EUR3,5 billion, is the absolute number one. The Brits are in second place. The Netherlands exports almost EUR1,2 billion's worth of fresh products to this country every year.
Surprisingly, exports to the UK have even increased in the last year. This, despite the looming Brexit. There are negative consequences associated with Britain leaving the EU. These will make the benefits of the European internal market clear. "The European Union is the largest consumer market in the world. It has no physical border controls or import duties. These advantages can, after all, not be taken for granted. It is unfortunate, though, that many EU countries campaign for their own national products," Driekus says.
With regard to third-party countries, the European trade policy is also of great importance. It is critical for imports and well as exports. Here it is noticeable that the European import regulations are being further tightened. This is being done to limit the risk of importing harmful organisms to a minimum. As a result, it is becoming increasingly difficult to import certain products from countries in Africa. These products include mangos and citrus.
Some member countries' protectionist motives play an important role here. "GroentenFruit Huis, therefore, continues to insist that the European Commission has a scientifically-based phytosanitary policy for this. There must also be proportional regulations in place. This is also important for the EU itself. It wants to fulfill a specific role in Africa's economic development," Driekus continues.
What can be improved in the area of trade policy?
"Reciprocity plays a vital role in international trade," this EU representative says. "This must not be forgotten when it comes to trade policy. If the EU decides to put barriers in place for products from third-party countries, this might also have consequences for our exports." The EU, rightly, sets high standards for products from third-party countries. In this way, Europe protects European production. "We must, however, guard against going too far as a protectionist reflex. This would be the wrong reaction to the changing world around us," remarks Driekus.
There are also still too many agricultural and horticultural products that are being used as bartering chips during trade conflicts. This is also the case when there is absolutely no relationship between the initial cause of the conflict and the horticultural sector affected. "Think, for example, of the Russian boycott. Russia is boycotting European fruit and vegetables. This, while this sector has nothing to do with the actual cause of the conflict. The occupation of the Krim caused this conflict," he points out.
A more recent example is the lists the US and the European Union are setting up. These lists contain products that may have import duties levied on them in the future. Various kinds of fruits and vegetables also appear on these lists. Products that have nothing to do with the conflict over Boeing and Airbus. This is what the disagreement is actually about.
What does the perfect future for international trade look?
"The world has a limited number of trade and non-trade barriers. Here, European standards play a critical role in international trade," Driekus says. If this role is not fulfilled, Europe will price itself out of the market. A lot of attention must also be paid to sustainability issues in the trade. In this way, the Dutch fruit and vegetable sector will keep playing a valuable role in that area.
"This country does so now already. It does so via sustainability programs such as 'On the way to Planet Proof' and SIFAV. In this way, the Netherlands contributes toward reaching the Sustainable Development Goals (SDG's). This does benefit not only the consumer but also producers in third-party countries," explains Driekus.
According to him, in a perfect world, there is also sufficient consideration for maintaining constructive trade relations. This should be done, even when it seems difficult. Closing borders is not a solution to the world's problems. Coming to good agreements is. In doing so, governments, especially those at a European level, should have more confidence in the trade sector.
New policy should include the latest insights. "The EU is not very good at doing this," Driekus remarks. They often opt for the common denominator. This does not always lead to success and development. "Our members work closely with producers in third-party countries," Driekus goes on to say. "This is done to keep imported fruits and vegetables free from harmful organisms. Impressive steps have been taken here, and further developments are also expected. These developments are needed to keep the Dutch fruit and vegetable sector on the map." This sector is worth EUR18 billion.
Source: VNO-NCW