Interview with Mr. Peter Mandelson

Mr. Peter Mandelson
European Commissioner For Trade
European Commission

Born in Britain in 1953 Mr. Peter Mandelson was a student of Philosophy, Politics and Economics at St Catherine’s College, Oxford. In his youth living in Tanzania for a year, gave him an experience which formed life-long impressions of Africa and the challenges of fighting poverty.

Being in the hot seat of Trade Commissioner for the European Union, how has Mr. Peter Mandelson evolved as a “person of the hour” to take up this challenging assignment?

This is certainly a fast moving job. My previous positions in the British Government were very demanding, but this has been the most demanding post I have ever had, in terms of both the volume and complexity of the work. This job requires me to have an overview on a huge range of issues. When I am in Brussels my day tends to be divided into half hour slots from 8am to 8pm and this is often followed by a working dinner. The issues I have to focus on range from the Doha Trade talks to Africa to textiles to aircraft to the external aspects of competitiveness to China etc. The list is endless. I see a great many visitors every day. Meetings tend to be interesting, but they all require detailed preparation. I have also had to adapt to the ways of the Commission and to representing the interests of 25 Member States - keeping the European Council united at the last World Trade talks in December 2005 was a great achievement in that respect.

You have stated in a statement on your website “As European Commissioner for Trade, I am responsible for the European Union’s external trade policy”-How far, or how much have you contributed to this end?

"Since becoming Trade Commissioner the current Round of World Trade talks has dominated my agenda. We are not moving as far forward as anyone would like, but the contribution made by the EU to the talks has been enormous. Much of the work goes on in private between negotiating partners. Europe has a united position in these talks and this is a major achievement given the range of interests around the Council table. I have made dialogue and co-operation with Member States a key priority. I have defended Europe’s interests clearly: we want progressive opening of markets globally so that our goods can be traded around the world - at the same time we want others to have fair access to our markets. I have also been very focused on the needs of developing countries. I hope we will be successful and that the Round will bring great benefits globally in terms of growth and jobs. It is important that the EU fully engaged in multi-lateral trade talks, because it is here that Europe can negotiate agreements which become set in stone with all trading partners around the world. I believe it is far more effective to have a global agreement than a series of bilateral agreements. I also vigorously uphold Europe’s interests under the trade rules. Currently I am working on major Communications on: a) A tough approach for defining a global and hard-headed strategy guaranteeing markets are effectively open and that rules of free trade are respected in a transparent way; b) A reflections on an anti-dumping system adapted to globalization, that takes into account changes in production and trade; c) A European strategy specific to China, that focuses on key areas such as an intellectual property, market access issues and investment opportunities. "

Turning to the paramount question for our members and visitors, what is your fair assessment of the world textile trade, and its condition under the quota free WTO regime?

In 1994, the WTO members committed themselves to reintroducing the textile and clothing sector under normal WTO rules after a ten-year transitional period, which lapsed in 2004. China’s accession to the WTO, in 2001, allowed the WTO members to benefit from a possible additional period during which restrictions could be placed on Chinese exports even after 2004. I preferred to negotiate quantitative restrictions with the Chinese on their exports of a limited number of sensitive textile and clothing categories over a two and a half-year period, rather than entering into a trade war by applying unilateral safeguard measures. The US followed us suit. This gives the EU industry further breathing space and creates conditions whereby business and workers can restructure and thus adapt smoothly to economic change.

You have just emerged victorious from European Parliament over the Chinese textile embargo that led to the release of clothing held at different European ports. Could you tell us how did the crisis emanate, and finally precipitate to its current state?

The so called crisis emanated from the full entry into force on 20 July 2005 of the agreement reached with China in June 2005. Some EU importers, acting in good faith and having ordered goods several months beforehand, were caught by surprise. On 5 September, both parties (the EU and China) unblocked the goods imported beyond the agreed limits. China accepted some flexibility in the management of the quantitative limits (transfer of quantities, advance use of 2006 quantities), on the one hand, while the EU agreed to a limited increase in quantities, on the other. Since then, the agreement has been carefully and smoothly managed in a spirit of excellent cooperation between both Chinese and Commission administrations.

Don’t you feel that transferring year 2006 textile quotas this year, in case of China would turn be a potential problem in the making for the following year?

The possibility of transferring quantities is limited: it amounts to 6 percent on average for both, advance use or carryover from one year to another. Actually, these provisions reflect the spirit of the agreement: within the once and for all deal, it is up to both parties to agree to utilize limited quantities during one year or another. Everybody is fully aware that the quantities used in 2006 may not be used in 2007, for example. The management of the quantitative limits is made public and transparent.

Do you feel that European textile industry requires protection, and if so, then how would you address the concerns of member nations like France, Spain and Italy on one hand, and United Kingdom, Germany and The Netherlands, on the other hand?

"First of all, certain parts of the EU industry certainly deserve temporary protection in order to adapt to the quota-free world. However, I consider that the best protection is competitiveness. Did you know that the EU is still the second largest exporter of clothing, and the largest exporter for textile (yarn, fabrics) items? China must not be seen as a threat; it is also an opportunity. For example, I consider that in addressing the market access conditions and trade barriers in third countries I am doing my utmost for the EU textile and clothing industry. The fast-growing Asian market is becoming richer, bigger in size and purchasing power for European top of the range textile and clothing goods.Secondly, the EU Member States you refer to all have different, not to say opposite, opinions on this issue. However, they have all showed a Community spirit and solidarity: the UK or Germany agreed to introduce certain quantitative limits for the most sensitive products, while France or Italy accepted that 60 percent of the liberalized categories should be unrestricted."

What according to you should be the base for single European and ultimately Global Economy, and how can it be charted out?

I believe in economic openness as the foundation for the European economy and I think it can be charted out based on the successes of integration such as the single market.

Published on: 03/07/2006

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.