EUU, Alm.del - 2020-21 - Bilag 27: Brev til Folketingets formand fra Public Advice International Foundation vedr. oprettelse af EU-organ til håndtering af pandemier

Europaudvalget 2020-21
EUU Alm.del Bilag 27
Offentligt

Franklinstraat

1000 Brussels

106-108

Belgium

T + 32 2 735 83 96

F + 32 2 735 84 66

Mr. Peter Mandelson

European Commissioner for External Trade

200 rue de la Loi

1049 Brussels

02 298 86 57

E [email protected]

Brussels, 12thJuly 2006

Ref. nr.: 06.32221

Dear Commissioner,

As Chairman ofPA International I am writing to you with reference to your impressive

performance at last week's EU-China Trade and Investment conference and your clear

message for the need to strike a "grand bargain" between Europe and China. Whilst much

of the conference focussed on the difficulties of doing business in China there are a number

of additional concerns brought to my attention by industry in recent weeks, which I believe

should also be considered within the framework of the new EU-China Framework

Agreement. I trust that the insights and experiences of my colleagues and I as detailed

herewith will assist you and your team in this difficult a.nd challenging task. I should like to

note that we are fully at your disposal for any further information or assistance you require.

Of course none ofus can overlook the impressive developments in China in the last

decades. Their unfaltering growth has propelled them from 30th in global exporters league

in the 1970s to 3rd place today. More important than the economics are the social elements

such as managing the largest reduction in poverty in human history , a model to be learnt

from. Whilst discussions on the future of democracy in China will continue, the EU is

correct to be thinking about the longer-term and the implications for trade and economic

relations.

In the West we are increasingly aware of and sometimes disturbed by the growing

economic clout of China. With Chinese growth rates consistently above nine percent, there

are perceptions of China taking jobs, deliberately keeping the yuan undervalued by pegging

it to the dollar, of exporting deflation by selling its products abroad at unfair prices, of

violating the rights of its workers to keep labour costs low, and of failing to meet its

commitments to the World Trade Organization. I am certain that many of these elements

will and have been addressed and detailed by other interlocutors and thus take the liberty to

EUU, Alm.del - 2020-21 - Bilag 27: Brev til Folketingets formand fra Public Advice International Foundation vedr. oprettelse af EU-organ til håndtering af pandemier

focus on the one specific issue which has been brought to my attention -our health

security .

As a former Belgian Minister of Agriculture and Member of the European Parliament it is

clear for me that the EU's common agricultural policy, whilst now in need of change, has

been necessary to ensure the livelihoods of millions of Europeans as well as food security .

During the last few decades, a period of transition has been allowed without which we

would almost certainly now be dependant on food supplies from outside Europe. Whilst

some would argue that this would provide the best prices for consumers and reflect the

nature of the global trading mechanism, it is absolutely understood that such a situation

would not be acceptable to the European people. The situation with food, whilst not at the

time being about China, is now being repeated over energy -partly with China ( as a

competitor) and others such as Russia (as a supplier); and quite correctly the European

Commission and Member States are evaluating what efforts can be undertaken to ensure

security and diversity of supply.

The above-cited elements are about the security of the European citizen -providing basic

resources on which we all depend. This is not security within the context of the global fight

on terror or the potential of new nuclear states. This is security of the citizen and the

fundamental right to have access to basic human needs. In this context there is one area on

which little attention has yet been paid, yet one on which we risk losing to Europe at our

own peril. This is the continued reliability and efficacy of manufactured ingredients

whether they are for nutritional or pharmaceutical use. In the future there will be an

increased concern in Europe over the availability , traceability and safety of elements such

as nutrients, vitamins, pharmaceuticals and anti-biotics. Unless a serious effort is now

undertaken to safeguard the limited manufacturing base left in Europe, the situation that all

such vital elements will need to be imported may come sooner than is thought.

This is not about protectionism or introducing technical barriers to trade, it is about our

health and that of our children. As the Honorary Chairman of the world's largest brewer

lnbev, I can fully see the benefit of increased trade with China -but the investments I

steered through lnbev were clearly on China's terms and conditions. For the future good

management and success of our relationship basic principles, that have allowed our success

in the internal European market, need to be applied. These include:

Protection of society -products should certainly not be allowed on the EU market

where there is any risk or potential dangers to human health. This is an EU legal

requirement and should therefore apply equally to EU imports. European

manufacturers have to demonstrate traceability throughout the production chain -

due to lack of management and enforceability this is not always applied to imported

-2-

EUU, Alm.del - 2020-21 - Bilag 27: Brev til Folketingets formand fra Public Advice International Foundation vedr. oprettelse af EU-organ til håndtering af pandemier

products. If the EU would cbnsider to engage in this, it would reflect similar

policies in China

Protection of the consumer -Europe has spent significant resources on the

protection of the consumer vis-fl-vis product quality. European producers and

suppliers have to demonstrate ( quite often through strict and costly regulatory

procedures) the case of need and added value ofproducts. As a consequence there is

a certain quality expectation in the EU. Imports that do not meet such criteria should

not be authorized on the EU market or should be clearly differentiated (through

regulation) from highly purified and effective EU products.

Level Playing Field -in any global trading system there will always be an

imbalance, however Governments that subscribe to free trade principles should

undertake measures necessary to ensure a level playing field. It is clear however that

some countries are involved in actions which undermine this possibility .Certain

countries (including China- as was recently demonstrated by the shoe issue)

actively subsidise the land, facility construction, the labour force, the laboratories,

the export, the marketing and the sales of products. Additionally certain industries

are explicitly involved in price cartels and dumping actions -often with the full

knowledge of the authorities.

Whilst the above-mentioned elements are fundamental to the operation of the market in

Europe they are equally applicable to the operation of the global trading system and many

elements are currently being reviewed through the Doha negotiations. This said there is a

clear trend occurring today, which if not addressed will leave the EU Member States

dependant on other parts of the world and notably China for ingredients and products which

are vital for Europe's health.

With this in mind we kindly call on the Commission as part of its proposal preparation to

consider the following four actions.

>- In the first instance an assessment needs to be made of Europe's vital strategic

health sectors including nutrients, vitamins, pharmaceuticals and anti-biotics. This

could be undertaken through a consultation ofkey stakeholders representing key

sectors including medical/military, food, animal feed and pharmaceutical.

>- Secondlya 'state ofplay' needs to be undertaken as to the current production

capabilities and need in Europe today and in the future for these products. Within

this analysis an understanding needs to be made of those products where there is an

immediate threat due to competition (in line with the above mentioned principles)

resulting in their continued disappearance from Europe. From recent discussions

and press reviews it is clear that some products are nearly (if not already) extinct

.from Europe.

-~-

EUU, Alm.del - 2020-21 - Bilag 27: Brev til Folketingets formand fra Public Advice International Foundation vedr. oprettelse af EU-organ til håndtering af pandemier

>- A third element of the necessary analysis would be the assessment of the economic

and societal impacts of losing these products and ingredients to Europe. Within such

an assessment a cost analysis would need to be made if for some reason ( conflict,

famine, epidemic, natural disaster) it was necessary to obtain significant supplies at

short notice or indeed replace 'lost' facilities (keeping in mind the time factors).

>- Finally, based on the first three elements of the necessary analysis, is the need to

consider what measures may be necessary in order to safeguard the security of the

European citizens. Such a consideration by the Commission in consultation with the

Parliament and Member States may lead to the desire to introduce specific and

targeted industrial policies for the long-term sustainability and availability of these

strategic sectors in Europe.

I trust that the above considerations help you in your deliberations on the future of our

relationship with China, which will undoubtedly continue to grow and if correctly and

fairly managed and implemented will be mutually beneficial to all.

As Chairman of the PA International Foundation I thank you in advance for your

consideration of the above concerns and look forward to an early opportunity to discuss

these matters with you. In light of the importance of these concerns I will also take the

liberty to discuss some of these elements with colleagues in the European Parliament. We

of course remain fully at your disposal for any further information.

With warmest regards,

-.1

Baron Paul De Keersmaeker

Chaimlan of the PA International Foundation

Chaimlan of the American European Community Association

Honorary Chaimlan of Inbev and KBC

Fomler Belgian Minister of Agriculture

Fomler Member of the European Parliament

Fomler Member afthe Belgian Parliament

~A~