EU “Ready” To Discuss Free Trade Pact With China: Official

The European Union is set to hold talks with China either late this year or early 2014 on improving market access for its members in the world’s second largest economy, said EU Trade Commissioner Karel De Gucht on Tuesday, describing the current relationship between the two markets as “a fundamental source of mutual benefit”, which could still do with further strengthening.

The European Union is set to hold talks with China either late this year or early 2014 on improving market access for its members in the world’s second largest economy, said EU Trade Commissioner Karel De Gucht on Tuesday, describing the current relationship between the two markets as “a fundamental source of mutual benefit”, which could still do with further strengthening.

Speaking at a meeting with business leaders, officials and diplomats in Brussels, De Gucht noted that trade between Europe and China has doubled since 2003, but China’s investments in Europe still accounted for less than 1 percent of its total foreign direct investment, while the world’s second largest economy only received about 2 percent of the EU’s investment abroad.

“We need to work together to build an economic relationship that is more than the sum of its parts. A relationship that drives growth at home and contributes to growth in the world economy at large,” De Gucht said, as cited by Xinhua.

[quote]”As two of largest players in that economy that is not only in our interest, it is our responsibility,” he added.[/quote]

As preparation for its talks with China, De Gucht said that EU member states would meet next month to discuss ways on the best ways on engaging with China. Any agreement between EU member states would then lead into an EU-China leaders’ summit either later this year or early in 2014, while a free-trade pact could also be agreed to down the line.

“We are ready and China says it is also ready. We are waiting to get started,” De Gucht said, according to Reuters.

[quote]”Over time, there will be a free-trade agreement between China and Europe. I am sure about that,” the EU Trade Commissioner added.[/quote]

Meanwhile, European Parliament lawmakers on Tuesday also laid down conditions for the European Commission to accomplish before it can give consent to any deal reached with Beijing.

EU-China talks on investment and market access has to be conducted with the highest possible level of transparency and subject to parliamentary oversight, the European Parliament said, as cited by Deutsche Presse-Agentur.

“Whereas the Chinese perceive the EU as a stable investment environment, EU firms’ investments in China are often burdened,” the lawmakers on the European Parliament’s International Trade Committee said in a statement.

“Any deal must … remove these burdens and level the playing field for competition between China’s state-run firms and the EU’s private ones,” it added.

“We want clear rules on investment protection,” added Bernd Lange, a German social democrat and a member of the European Parliament.

Trade between China and the European Union rose to 435 billion euros ($580 billion) last year, making the EU China’s biggest trading partner. China is the second-biggest destination for European goods after the United States.

The two markets though have clashed numerous times on trade issues. Just weeks ago, the EU imposed tariffs on Chinese solar panels and related components. In August, the EU also called on the World Trade Organisation to intervene after the Chinese government imposed tariffs on steel pipes being imported from the EU.

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