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Interview with Jan Eggert

Jan Eggert
Jan Eggert
Director General
Foreign Trade Association
Foreign Trade Association

Economic growth is mainly happening outside Europe.
Jan Eggert discusses the importance of free trade in European trade industry and the current trade practices therein with Mary Christine Joy. Synopsis: The Foreign Trade Association is Europe's premier association for trade policy and global supply chains and represents over 1,400 retailers, importers, brand companies and national associations. Jan Eggert leads the Association's activities with regard to international trade as well as the activities related to BSCI and BEPI, the two operational initiatives created by the FTA to support companies improving respectively working conditions as well as environmental conditions in the international supply chain. Excerpts:

Europe is one of the biggest markets for textile and apparel. How important do you think are the European trade policies to the global textile and apparel industry?

The EU is the largest trading block in the world and a massive net importer of garments and textile products. The direction in which EU trade policy is shaped is therefore crucial for the prosperity of the textile and apparel industry, not only in Europe but globally. In a world of complex and globalised supply chains, European retailers are dependent on a favorable political and legal environment which promotes free trade and open borders. With regard to the importance of the textile and apparel industry, it is of outmost importance that the EU develops the right policies addressing the sector's needs and easing trade and customs procedures, especially with sourcing countries whose economies strongly rely on textile manufacturing.
 

How can an investment trade agreement between EU and China help the EU trade sector at present and in the future?

China, EU's second largest economic partner, plays a crucial role in retailers' sourcing activities and the country has become increasingly important as a sales market. Since the beginning of 2014, the EU and China are engaged in negotiations for an investment agreement. Such an agreement, once concluded, would mutually grant businesses a high level of investor protection and enhanced market access, boosting bilateral commerce. A successful agreement, which FTA fully supports, would as well remove unjustified barriers and guarantee an improved regime of Intellectual Property Rights (IPR) in China. In the long term, a successful investment agreement could pave the way to a comprehensive free trade agreement between the EU and China.

With which countries is free trade desirable for the betterment of the EU textile and apparel trade?

China should remain a priority on the agenda, but strong emphasis should also be put in finalising trade agreements with emerging markets such as Vietnam, India and Thailand. The EU should also seek to progress in inter-regional talks with ASEAN and the US. Beyond the structure of trade deals, the EU is promoting free trade in the framework of the Generalised System of Preferences (GSP). Major sourcing countries, such as Bangladesh, Pakistan, Myanmar and Cambodia, benefit from this free-duty scheme.

What are the demands of the European retailers in terms of trade policies? Can you be as precise as possible in this matter?

Economic growth is mainly happening outside Europe. It is a reality that the EU must face and adapt to, by increasing trade with the world and avoiding protectionism. European retailers call upon EU policymakers to commit to a strong trade agenda with ambitious and clear goals that facilitate international commerce and open markets.

What are the objectives that FTA thinks should EU prioritize in order to develop the EU trade scenario fully?

2014 is a year of political change in the EU, with European Parliament elections which took place in May and the nomination of a new Commission in October. In this context, the Foreign Trade Association (FTA) issued the strategy document 'Road Map for EU Trade Policy: 2014-2019',which reflects the view of FTA's 1,400 members (European retailers, importers and brand manufacturers). Firstly, the EU trade policy should serve to strengthen commercial relations with the world. As a second priority, the EU should pursue negotiations for ambitious free trade agreements notably with emerging countries such as Vietnam and India but also at the level of the World Trade Organization. Thirdly, the EU trade rule book needs to be modernised and adapted to the rapidly changing business realities. Legislation should facilitate business, not hamper trade. Last but not least, we welcome the increasing acceptance of the concept of sustainable trade in Europe and developing countries.

How can sustainable trade be practiced in the retail sector, especially textile and apparel?

Through initiatives such as the Business Environmental Performance Initiative (BEPI) and the Business Social Compliance Initiative (BSCI), with over 1,400 participants, European retailers have shown how to successfully promote sustainable trade.

I would like to quote one of your statements in this regards - "EU is at crossroads and it is our responsibility to safeguard what has made Europe strong: a community of open borders and free trade with the world". What is it that you mean by EU is at cross roads?

At a time when Europe's economic development is increasingly gaining from the exchange of goods and services with the world, an important number of voices is still questioning the open character of the EU trade policy and even calling for more restrictions. Such an irresponsible attitude is in total contradiction to today's business reality of global value chains. International trade has proven to be an important growth-driver and a powerful instrument to enhance the EU's economic recovery and businesses' competitiveness. In other words, a liberal trade framework needs to be in place, and we need to strive for maintaining it.

EU Trade policies should not serve protectionist intentions. Do you agree? Please elaborate.

Absolutely. As mentioned above, trade is about facilitating commercial exchange across borders. Protectionist measures at EU borders will automatically trigger defensive measures and close export and investment markets. This would harm the competitiveness of European companies, increase business costs and final prices for consumers.
Published on: 08/09/2014

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.