Today in Davos, the President of the European Commission, Ursula von der Leyen, met with U.S. President Donald Trump. This friendly exchange of views between allies at the World Economic Forum was a first opportunity to meet in person and to compare notes and positions on a number of topical issues, notably on trade, technology and energy. This was a first get-to-know-each-other meeting. Both sides agreed to meet soon in Washington to move the common transatlantic agenda forward.
Ursula von der Leyen, President of the European Commission: “It was good to meet with President Trump. Today was a good opportunity to connect personally. As a European and a committed transatlantist, it was important to me to emphasize the unbreakable bonds between our societies and economies. This common foundation builds on decades of friendship, cooperation in culture, science, business and youth exchange. I am looking forward to working with President Trump on the opportunities and challenges ahead of us. I am convinced that we can engage in a positive U.S.-EU agenda in trade, as well as on technology, energy and much more besides.”
Compliments of the European Commission

Digital taxation
Finance ministers had an exchange of views on tax challenges arising from digitalisation. They took stock of the progress achieved in the context of the OECD, both on the reallocation of profits of digitalized businesses (“Pillar 1”) and on the general reform of international corporate taxation (“Pillar 2).
The OECD has been working intensively in the past months with a view to agreeing on the architecture of a global solution at its meeting on 29-30 January 2020.
The debate confirmed that an international solution on digital taxation was the best way forward, as it would prevent fragmentation and unilateral measures. Ministers acknowledged that the OECD was working against a tight deadline to reach a global consensus by the end of 2020, and many highlighted the importance of making good use of the current political momentum.
The presidency concluded that it would continue attending international meetings on this issue. It will organise technical discussions in the Council in order to prepare, as far as possible, negotiations taking place at the OECD and address member states’ concerns.
European Green Deal
Ministers discussed the financial and economic aspects of the European Green Deal. The Commission presented its communication on the Sustainable Europe Investment Plan published on 14 January.
The plan aims to mobilise at least EUR 1 trillion of investments over the coming decade. The Commission proposes to achieve this by drawing on EU’s budget, through a “Just Transition Fund”, as well as bringing in private funding by leveraging guarantees under the InvestEU programme. The plan also foresees a greater role for the EIB in financing sustainable projects.
During the debate, ministers stressed the importance and relevance of the European Green Deal and their readiness to examine, as a matter of priority, the concrete actions to be put forward by the Commission under the deal in the months to come.
European Semester
The Council initiated the annual ‘European Semester’ process for the monitoring of the member states’ economic, employment and fiscal policies.
The Commission presented its Autumn package published on 17 December 2019, including:
its report on the annual sustainable growth strategy, highlighting the main challenges for 2020,
the ‘alert mechanism report’ for 2020 and
the draft Council recommendation on the economic policies of the euro area.
The Council is scheduled to approve the recommendation and adopt conclusions on the two reports at the Ecofin meeting of 18 February 2020. The recommendation will then be endorsed by the European Council at its March meeting.
The 2020 European Semester will conclude in July with the adoption of country-specific recommendations.
Compliments of the European Commission

Ladies and gentlemen, thank you for your warm welcome and happy new year! I am very pleased to be here with you this morning.
This is the first of what I expect will be many visits to Washington as European Trade Commissioner. Of course as an Irishman I feel very much at home in America so this is certainly one of the perks of the job.
I had a very busy day yesterday and Tuesday, meeting members of the Administration, senators and members of the House.
These meetings were in the main both positive and productive. They confirmed that there are powerful and influential voices on both sides of the Atlantic calling for political leadership to refresh, recalibrate and generally reclaim the shared trade agenda of the EU and US in the coming months.
If we go about this in the right way, working together, the mutual benefits can be very significant. However, if we fail to do so, the damage will be significant, not alone for us both, but for the world we have built together.
We are entering this decade at a pivotal moment in time, and we are faced with profound challenges, many of which are totally new.  It is crucial that we make the right choices at every fork in the road from this point on.
And the choice above all, is this: either we cooperate and shape the response to these challenges together, or these challenges shape, divide and diminish us.
Transatlantic Relationship
Ladies and gentlemen, you are all familiar with our rich shared history of global leadership, in the trade arena but in many other areas as well.
The US and the EU are each other’s most important partner, and we have for decades shared an international outlook and values rooted in our intertwined history. Together, we shaped the global trading system and the multilateral institutions that govern it.
This allowed us to build an economic partnership that has become the most significant commercial artery in the world. Together, we form the largest and wealthiest global market, with overall trade in goods and services worth over 1.3 trillion annually.
Working together, we have been the engine of sustained global prosperity for many decades.
But the sands of global trade are shifting. The last decade in particular has seen fundamental shifts.
Trade politics is no longer exclusively about trade policy. It is often a proxy for security, technology, geopolitics and more. In particular, trade has become a tool in the global struggle for technological supremacy.
Other, more general mega-trends have accelerated at a rate of knots, such as:
Digitalisation and technological advances;
The rise of China;
Climate change;
Global demographic shifts;
And a recognition of the impact of international trade on workers and farmers.
The combined weight of these changes means we are now experiencing a high-pressure crisis moment for the international trading system.
However, diamonds are made under pressure. The EU is treating this as an opportunity to crystallise our priorities – and to assert them on the world stage. I sincerely hope that the US is thinking along the same lines.
We in Europe are not going to retreat into our shell at this critical juncture in international relations. We are very much open for business, and we believe in the opportunity of openness. New European Commission President Ursula von der Leyen is taking a strong geopolitical approach to all our policy work.
And she has given a clear commitment that we need a positive, balanced and mutually beneficial trading partnership with the United States.
I would like to elaborate on how we can move a little faster in that direction.
Trade deficit
First of all, in the interest of transparency and fair play we need to measure our trade relationship with the right metrics. We must call out the narrative that the US has a trade deficit or an unfair trading relationship with Europe.
In reality, the relationship is both balanced and highly mutually beneficial. This cannot be stated enough – the facts are clear.
Our tariffs are very similar. On industrial tariffs, our weighted average applied tariff is 1.4%, while the US tariff on the EU is 1.6%. The inclusion of agriculture changes the picture only slightly: the EU weighted average on all US imports stands at 3%, while the US tariff on EU imports stands at 2.4%.
The modern economy thrives on goods, services and investment, and each of these creates jobs and salaries for American workers.
The US is a services-led economy, in fact the US is the global services powerhouse.
American services exports to the EU amounted to $256 billion in 2018, with a surplus of $60 billion, all of it strongly supporting jobs and wealth right here in the US.
On top of that, American companies in Europe send back $123 billion dollars to the US every year.
Transatlantic trade in goods and services is worth over 3 billion dollars per day. Sounds like a fairly healthy relationship to me!
Mutual investment is another pillar of the transatlantic economy. In the last decade alone, the EU attracted over 58% of total US foreign investment. US companies freely choose to invest more in the EU than in all other markets combined.
This is a highly profitable enterprise for American companies, who have an investment stock of $3.6 trillion in Europe.
Of course, this also applies in the other direction: 60% of foreign investment in the US comes from Europe. It should be noted too that 66% of all EU imports are required for further production in the US, which means more job for Americans.
So why put tariffs on these EU products to make them more expensive for your people!
We can say beyond any doubt that the transatlantic economic relationship is a balanced one, a multi-layered one, and above all one that is very beneficial to both sides. These are important facts that should be fostered and strengthened.
The EU is a free and open market, offering a level-playing field to US companies. Other partners do not do so. Transatlantic supply chains allow companies in the EU and US to operate more efficiently, and secure millions of jobs on both sides of the Atlantic: 16 million at last count.
No other market is as free and open for US businesses as the EU. Where else are you as welcome?
I might add I am coming under pressure to defend this level of openness given that our European businesses can be hit with unjustified tariffs and restrictions at a moment’s notice.
And let me be clear that we reject the US labelling the EU as a security risk in order to justify the imposition of tariffs. This narrative is hurtful to both our people.
Bilateral relations
The EU is absolutely committed to a strong and positive bilateral agenda. The Executive Working Group established by President Trump and President Juncker in July 2018 has done good work. It has reduced tensions, and encouraged cooperation on both the bilateral agenda and global challenges.
From our side, we are already delivering results. Take for example our increase in imports of American soybeans, and liquefied natural gas.
This increase in imports is good for US farmers and exporters – but also for energy diversification and agriculture in the EU. It is a great example of a win-win.
But improvements in trade should not be one-way: the EU has been patient for many years – since 2008 – to receive approval for export of apples and pears to the US. What is the scientific basis for blocking this approval?
Europe is a major export destination for US farmers: last year we imported some $14 billion of American agriculture products. In fact, we like your products so much that agri-food imports from the US are the fastest growing EU imports.
In addition, we granted the US exclusive use of 35,000 tonnes of our import quota for hormone-free beef. This is out of a total import quota of 45,000 tonnes, operational from 1 January 2020.
These are good news stories, but we are ambitious for more. We want to finalise our negotiations on conformity assessment, a long-standing US ask. We also remain ready to discuss tariffs and reducing non-tariff barriers.
We need more convergence in relation to standardisation and in the regulatory field. This is the best way for us both to be rule-makers instead of rule-takers; ongoing negotiations on this are important.
Cooperating to Shape Responses to Future Challenges
We are keen to intensify our cooperation on technology, covering areas such as semiconductors, artificial intelligence, additive manufacturing and quantum technology. This cooperation will be massively important for our economies and our security.
The EU followed the US’ example and introduced its own investment screening mechanism, and we are eager to learn from your experiences. We need to protect our trusted transatlantic trading and investment space. We should have discussions on a possible agreement to “whitelist” each other when it comes to investment and export controls.
But we recognise these are only the first steps. We will need to cooperate much more closely on the technologies that are transforming our economies in order to protect our trusted trading space.
The EU agrees on the importance of telecom network security, particularly in relation to 5G. The European Commission published an EU-wide risk assessment in October 2019.
This month, the EU and its Member States will present a toolbox of mitigating measures to address these risks. This work will provide a good foundation for further transatlantic cooperation.
We are laying the foundation for our shared future for decades to come.
Finding Solutions to Bilateral Issues
However, we must also deal with the disputes of the present day.
Imposing tariffs on each other serves nobody’s long-term interest. Tariffs are in reality just another form of taxation on businesses and consumers.
There are no winners in a trade war.
You don’t have to take my word for it: the federal reserve study released last month shows that the import tariffs imposed to protect US manufacturers have had the opposite effect by raising input costs and triggering retaliatory tariffsThis reduces economic growth, wages and jobs. This is hardly a sensible approach.
In this regard, we regret the choice of the US to move ahead with tariffs in the Airbus case, and the recent announcement to potentially subject additional EU products to tariffs.
This leaves the EU with no alternative but to follow through in due course with our own tariffs in the Boeing case, where the US has been found in breach of WTO rules.
We have a joint responsibility to sit down and negotiate a balanced settlement, so that we can leave these disputes behind us. The EU has shared concrete proposals with the US on dealing with clearly identified aircraft subsidies and on future support to our respective aircraft sectors.
Now is the time to show that we can defend the position of both the US and EU aircraft sectors in a market with strong emerging players.
That is the real challenge. If we continue to beat each other up then the future risks being lost to new competitors.
Finding agreement is also essential in relation to our modern, connected economies. Citizens in both America and Europe want digital companies to contribute their fair share of tax on both sides of the pond. We need to find a sustainable answer to this problem if we want to prevent every country coming up with an individual solution.
The EU fully supports the discussions taking place at OECD level on a global digital services tax. But we have been equally clear that we have no option but to regulate on our own if the US blocks a global agreement.
Updating the Rulebook
Ladies and gentlemen, we are operating in a changing global economy.
In Europe, we remain absolutely unwavering in our conviction that an open trading system with a firm and fair rulebook is the best hope for every country around the world to achieve sustainable economic progress. Global challenges need global rules.
Unfortunately, the current rulebook is out of date, and the rules-based multilateral system has drifted away from economic and business realities.
The gaps in the multilateral rulebook have allowed China to provide significant subsidisation that distorts markets and investment flows.
By creating overcapacity in certain sectors, China’s state-owned enterprises are in a position to outbid others in government procurement or in acquisitions.
This means it can exploit its role as a key investment destination to siphon off technology by forcing joint ventures or requiring disclosure of trade secrets in order to get licences.
China has been able to do all this while maintaining closed markets that allow its own operators to grow, by putting up internal barriers for foreign operators – such as complex licensing requirements and discriminatory licensing conditions.
That is why WTO reform is a top European priority. We fully agree with the US that the organisation needs to be fixed, and it needs a profound overhaul, not just tweaking at the margins.
Rulemaking is paralyzed. Transparency is underused. The current rulebook does not adequately address some of the most trade distorting measures, such as industrial subsidies.
We need to step up cooperation. A new balance needs to be found in the organization, with clear rules and commitments that properly regulate global trade to deal with today’s challenges, not those of 25 years ago.
We need to establish a level playing field that reflects the world of today: a diverse global economy more connected and technologically driven than ever before.
Our objective is to return the WTO to the centre of global trade – where it belongs.
That is why we urgently need to fix the negotiating function of the organisation. For us this is a total no-brainer, because the organization has been unable to create new rules or adapt existing ones for too long.
I therefore warmly welcome Tuesday’s trilateral agreement between the EU, US and Japan to find new ways to strengthen global rules on industrial subsidies. This is a very important step towards tackling issues distorting global trade, and shows what can be achieved when global partners work together.
Rights and obligations in the system should be rebalanced. At a minimum I think we can probably agree that so-called “emerging countries” like China have well and truly emerged!
This means that a fresh look is needed at the question of exceptions for developing countries, which should only be available where and when needed.
A broad exception for two thirds of WTO members is not acceptable. We are in agreement with the US on this, and we need to define the appropriate way to get there.
The WTO will need to change the way it works, negotiates and decides. The hostage-taking and consensus-blocking attitude will not work anymore. We need mechanisms to facilitate the integration of plurilateral approaches in the WTO framework. This would introduce a new dynamic into the organization and will be crucial for several negotiations, including on e-commerce.
But I repeat: what is value of new rules without a proper enforcement mechanism? We therefore need an effective dispute settlement system that enforces the rules as we have agreed them. Nobody can play the global trade game without a good referee.
To our American friends my message is very simple: let’s talk, let’s cooperate, let’s lead.
We will approach any discussions on WTO reform with an open mind.
We have made proposals to address US concerns and now we need clarity in relation to what the US wants.
The time has come to start discussions in earnest. Our strong preference is to tackle WTO reform on the basis of transatlantic cooperation, but if the US does not engage, the EU will work with other partners.
Conclusion
Ladies and gentlemen, let me conclude by once more wishing you a happy new year and a happy new decade.
I remain hopeful that the 2020s can be an era of refreshed and resurgent transatlantic relations.
We have a strong and proactive trade agenda in the European Union – I can assure you we will be no shrinking violets. We will robustly defend our interests.
But let us recall that our primary interest, and the job we are here to do on both sides of the Atlantic is to protect the interests and wellbeing of our people and our economies.
American and European companies are relying on open markets, and if we fail to protect them it is our economies, our workers and our citizens who will end up paying the price.
The European Union and United States are sometimes described as siblings and I have to say I agree with this observation.
As we all know, siblings bicker, siblings call each other names, siblings sometimes even get into fights!
But let us not forget that when the pressure comes, siblings are family and will always support each other.
So I hope we can get back to seeing matters eye to eye. This is the world’s best hope for a peaceful and prosperous future. Thank you.
Compliments of the Delegation of the European Union to the United States

During the first plenary session of 2020, Parliament called for more ambitious measures to tackle climate change and to put citizens at the centre of an initiative to reform the EU.
Parliament supported the European Commission’s plan for the EU to become climate neutral by 2050 on Wednesday and called for a higher 2030 emissions reduction target of 55%. The previous day, they discussed a proposal on how to finance this green transition, including support for regions affected by it.
Citizens have to be at the core of discussions on how to reform the EU, MEPs said in a resolution adopted on Wednesday, setting out their vision for the Conference on the Future of Europe.
On the same day, MEPs adopted a resolution calling to ensure the protection of EU and UK citizens’ rights after Brexit.
Ahead of the UN biodiversity conference in China in October, MEPs called for legally binding targets at global and EU level to stop biodiversity loss.
This week, MEPs also discussed measures to tackle the gender pay gap. A vote on a resolution on this will be held later this month.
MEPs debated the situation in Iran following recent escalations, while King Abdullah II of Jordan underlined the importance of peace in the Middle East during an address to MEPs.
Croatian Prime Minister Andrej Plenković presented the priorities of his country’s Council presidency to Parliament on Wednesday.
Parliament also adopted a resolution criticising the worsening situation in Poland and Hungary regarding the rule of law.
Compliments of the European Parliament

MEPs support the European Green Deal, but highlight challenges, including ensuring a just and inclusive transition and the need for high interim targets.

Parliament adopted on Wednesday its position on the European Green Deal, unveiled by Commission President von der Leyen in a plenary debate in December. MEPs welcome the European Green Deal and support an ambitious sustainable investment plan to help close the investment gap. They also call for an adequately funded just transition mechanism.
Speed up reduction of greenhouse-gas emissions
Parliament wants the upcoming Climate Law to include higher ambitions for the EU’s 2030 goal of emissions reductions (55% in 2030 compared to 1990, instead of “at least 50% towards 55%”, as proposed by the Commission). The EU should adopt these targets well in advance of the UN climate change conference in November, MEPs say. They also want an interim target for 2040 to ensure the EU is on track to reach climate neutrality in 2050.
To prevent carbon leakage due to differences in climate ambition worldwide, Parliament calls for a WTO-compliant carbon border adjustment mechanism.
MEPs stress that they will amend any legislative proposals to meet the objectives of the Green Deal. Higher targets for energy efficiency and renewable energy, including binding national targets for each member state for the latter, and a revision of other pieces of EU legislation in the field of climate and energy are needed by June 2021, they add.
The resolution was adopted with 482 votes for, 136 against and 95 abstentions.
Quote
“Parliament overwhelmingly supported the Commission’s proposal on the Green Deal and welcomes the fact that there will be consistency between all European Union policies and the objectives of the Green Deal. Agriculture, trade and economic governance and other policy areas must now be seen and analysed in the context of the Green Deal”, said Pascal Canfin (RE, FR), Chair of the Environment Committee.
Compliments of the European Parliament

EU Trade Commissioner Phil Hogan is in Washington, DC (January 13-16) for meetings with the U.S. Administration, Congress, the IMF, and business leaders. This will include meetings with the United States Trade Representative, Robert Lighthizer, the Secretary of Treasury, Steve Mnuchin, and Secretary of Commerce, Wilbur Ross. This is the first trip that Commissioner Hogan is taking outside the European Union in his capacity of Commissioner in charge of trade. 
On Tuesday 14, Commissioner Hogan participated in a Trilateral Meeting with Hiroshi Kajiyama, Minister of Economy, Trade and Industry of Japan, and Robert E. Lighthizer, United States Trade Representative. They announced their agreement to strengthen existing rules on industrial subsidies and condemned forced technology transfers practices (see the press release and joint statement here). 
Thursday morning, Commissioner Hogan will deliver remarks on ‘Refreshing Transatlantic Trade Relations’(link is external) at CSIS. 
Compliments of the Delegation of the European Union to the United States

In a Joint Statement issued today, representatives of the European Union, the United States and Japan announced their agreement to strengthen existing rules on industrial subsidies and condemned forced technology transfers practices.
In a meeting held in Washington, D.C., the EU, the U.S. and Japan agreed that the current list of subsidies prohibited under the World Trade Organization’s (WTO) rules is insufficient to tackle market and trade distorting subsidisation existing in certain jurisdictions. They concluded therefore that new types of unconditionally prohibited subsidies have to be added to the WTO Agreement on Subsidies and Countervailing Measures.
A structural reform of the WTO and levelling the playing field in global trade is a key priority for the EU and the von der Leyen Commission. Commissioner for Trade Phil Hogan said: “This Joint Statement is an important step toward addressing some of the fundamental issues distorting global trade. The EU has been arguing consistently that multilateral negotiations can be effective in resolving these problems. I welcome the fact that the United States and Japan share this view. I am grateful to Ambassador Lighthizer and Minister Kajiyama for their constructive collaboration. This Statement is also a symbol of a constructive strategic collaboration between three major players in global trade.”
The EU, U.S. and Japan also agreed that for particularly harmful types of subsidies, such as excessively large subsidies, the burden of proof should be reversed: the subsidising WTO member must demonstrate that there are no serious negative trade or capacity effects and that there is effective transparency about the subsidy in question. The signatories of the statement also reaffirmed the importance of technology transfers for global trade and investment and discussed possible core rules to be introduced to prevent forced technology transfer practices of third countries.
The Joint Statement also confirmed continued cooperation on a number of key items such as:
The importance of market oriented conditions
Reform of the WTO, to include increasing compliance with existing WTO notification obligations
Pressing advanced WTO members claiming developing country status to undertake full commitments in ongoing and future WTO negotiations
International rule making and trade related aspects of electronic commerce at the WTO; and
International forums such as the Global Forum of Steel Excess Capacity and the Governments/Authorities’ Meeting on Semiconductors.
The Joint Statement is an important step toward resolving some key issues in the lead up to the 12th WTO Ministerial Conference in June 2020 in Nur-Sultan.
Compliments of the European Commission

ESMA has today published the responses received to its consultation on MiFID II review report on position limits and position management.
To read the responses, click here.
Compliments of the European Commission

The European Commission unveiled a proposal that will allow the European Union to protect its trade interests despite the paralysis of the multilateral dispute settlement system in the World Trade Organization (WTO). To further increase the focus on compliance and enforcement of the EU’s trade agreements, the Commission created the position of Chief Trade Enforcement Officer.
President of the European Commission, Ursula von der Leyen, said: “A stronger Europe in the world implies efficient EU leadership on global trade and appropriate powers to ensure that international trade rules are respected. For that reason, I start my mandate by taking swift action to strengthen our trade toolbox. Today’s proposals will let us defend our interests in these particularly uneasy times for international trade. As many European jobs are at stake, the EU needs to be equipped to ensure that our partners respect their commitments and that’s what this proposal aims for.”
Commissioner for Trade, Phil Hogan, said: “This is a critical moment for multilateralism and for the global trading system. With the Appellate Body removed from the equation, we have lost an enforceable dispute settlement system that has been an independent guarantor that the WTO’s rules are applied impartially. Whilst we seek to reform the WTO and re-establish a well-functioning WTO system, we cannot afford being defenceless if there is no possibility to get a satisfactory solution within the WTO. The amendments we propose will allow us to defend our companies, workers and consumers, whenever our partners do not play by the rules.”
Today’s proposal to amend the existing Enforcement Regulation comes as a direct reaction to the blockage yesterday of the operations of the WTO Appellate Body. The current regulation – a basis under EU law for adopting trade countermeasures – requires that a dispute go all the way through the WTO procedures, including the appeal stage, before the Union can react. The lack of a functioning WTO Appellate Body allows WTO Members to avoid their obligations andescape a binding ruling by simply appealing a panel report.
The Commission’s proposal will enable the EU to react even if the WTO is not delivering a final ruling at the appellate level because the other WTO member blocks the dispute procedure by appealing into the void.
This new mechanism will also apply to the dispute settlement provisions included in regional or bilateral trade agreements to which the EU is party. The EU must be able to respond resolutely in case trade partners hinder effective dispute settlement resolution, for instance, by blocking the composition of panels.
In line with the Political Guidelines of President von der Leyen, the Commission is further reinforcing the Union’s tools to focus on compliance and enforcement of the EU’s trade agreements and created the post of Chief Trade Enforcement Officer that will be filled in early 2020.
Ensuring the respect of the commitments agreed with other trade partners is a key priority of the von der Leyen Commission. The EU is therefore increasing its focus on enforcing its partners’ commitments in multilateral, regional and bilateral trade agreements. In so doing the Union will rely on a suite of instruments. The proposal presented today will now be subject to validation by the European Parliament and the EU Member States in the Council in a normal legislative process.
Compliments of the Delegation of the European Union to the United States

The European Commission published today the latest report on protection and enforcement of Intellectual Property Rights (IPR) in third countries. While developments have taken place since the publication of the previous report, concerns persist and a number of areas for improvement and action remain to be addressed. Intellectual property rights infringements worldwide cost European firms billions of euros in lost revenue and put thousands of jobs at risk. Today’s report identifies three groups of countries on which the EU will focus its action.

Commissioner for Trade Phil Hogan said: “Protecting intellectual property such as trademarks, patents, or geographical indications is critical for the EU’s economic growth and our ability to encourage innovation and stay competitive globally. As much as 82% of all EU exports is generated by sectors which depend on intellectual property. Infringements of intellectual property, including forced technology transfer, intellectual property theft, counterfeiting and piracy threaten hundreds of thousands of jobs in the EU every year.  The information gathered in the report will enable us to become even more efficient in protecting EU firms and workers against intellectual property infringements like counterfeiting or copyright piracy.”
The geographical and thematic priorities for the EU action to protect intellectual property rights are based on the level of economic harm to EU companies. The report will help to further focus and target efforts. The updated list of priority countries in the report remains split in three categories reflecting the scale and persistence of problems: 1) China; 2) India, Indonesia, Russia, Turkey, Ukraine; 3) Argentina, Brazil, Ecuador, Malaysia, Nigeria, Saudi Arabia and Thailand.
China is at the origin of a dominant share of counterfeit and pirated goods arriving in the EU, in terms of both value and volume. More than 80% of counterfeit and pirated goods seized by EU customs authorities come from China and Hong Kong.
A high level of intellectual property protection is a standard element of all EU trade agreements. The Commission also engages in dialogues, working groups and technical programmes with key countries and regions, such as China, Latin America, Southeast Asia or Africa. Specific actions in the past two years included:
Technical support for the accession to international treaties in the area of IPR
Awareness-raising seminar for small businesses on the importance of IPR
Training for customs officers, judges and the police on IPR enforcement
Training for patent examiners
Training on licensing of protected plant varieties
The Commission is also an active contributor to intellectual property rights protection and enforcement at multilateral levels such as the World Trade Organization (WTO), the World Intellectual Property Organization (WIPO) and the Organisation for Economic Cooperation and Development (OECD).
The report also puts intellectual property related to plant varieties in the spotlight. Plant breeding can play an important role in increasing productivity and quality in agriculture, whilst minimising the pressure on the environment. The EU wants to encourage investment and research in this area, including in the development of new crops resistant to drought, flood, heat and salinity to better respond to the negative consequences of climate change. Protection of plant varieties becomes therefore one of the Commission priorities in the coming period.
Background
Efficient, well-designed and balanced Intellectual Property (IP) systems are key in promoting investments, innovation, growth and the global business activities of our companies. In this context, the European Commission is actively involved in strengthening the protection and enforcement IP rights, including through its trade agenda, in third countries.
Industries that use intellectual property intensively accounted for some 84 million European jobs and 45% of the total EU GDP in the period 2014-2016. 82% of EU exports were generated by the industries intensively using intellectual property. In these sectors, the EU has a trade surplus of around 182 billion euros. Also, an estimated 121 billion euros or 6.8% of all imports into the EU, are counterfeit or pirated.
Compliments of the European Commission