Market Access - removing trade barriers
Why is Market Access important?
Market Access is the removal of trade barriers and the opening up of new markets and opportunities on the basis of a level playing field for providers and consumers alike where all can compete freely and fairly for the benefit of all.
Increased Market Access is also an important criterion for evaluating the success of the rules-based international trading system.
A successful Market Access strategy is an essential element in delivering BERR’s objective of delivering free and fair markets with greater competition for business, consumers and employees.
What is a trade barrier?
Trade barriers come in all shapes and sizes. There are the straightforward traditional tariff barriers - still some very discriminatory tariffs and taxes – despite 50 years of the General Agreement on Tariffs and Trade (GATT), the WTO and 9 trade rounds. There are new and increasingly significant non-tariff barriers, which are varied, difficult and complex as they can touch on sensitive cultural and social issues and can sometimes appeal to very legitimate concerns, e.g., regulatory issues, labelling, standards, piracy, abuse of intellectual property rights (IPR) and Geographical Indicators, subsidies, trade defence, discriminatory pricing, ad hoc bans and prohibitions and combinations of some of these. They all need different approaches to be overcome.
Trade barriers can also be caused by countries breaching the agreed rules and commitments they have legally entered into, principally those of the WTO or bilateral agreements. This may of course be just poor interpretation or misunderstanding or it may be through more serious intent.
In some cases there may be barriers which are not breaches of any specific rules that we can identify. In these instances we may then enter into a bilateral discussion about the problems with the countries concerned with the aim of finding a mutually beneficial solution. At the other end of the scale we may only be able to identify a problem that needs addressing through development of the WTO rules in which case we may have to await a WTO investigation and Agreement to address the problem.
What to do when a barrier presents itself?
We need to know of barriers faced by industry as soon as possible. This can be done by contacting either UK Trade and Investment (UKTI) or the Trade Policy Unit (TPU) whose role is to help increase British business success through facilitating trade and investment overseas.
In the first instance the matter can be pursued informally and bilaterally with the country concerned via our extensive network of overseas posts. In doing so there will be close co-ordination with the industries concerned, colleagues across BERR, agencies such as the Intellectual Property Office and other Government Departments (DEFRA DIFD, the Department of Health, DCMS, etc) who may have a specific responsibility or policy interest.
The European Commission’s Market Access Strategy
The Commission has launched a renewed Market Access Strategy which includes the creation of Working Groups in Brussels and Market Access Teams on the ground in key third countries markets to deal with specific trade barriers. These will be based on the co-operation and working together of representatives of Member States’ posts (UKTI for the UK), the local EU delegation and business to deal with the removal of barriers in question. They will establish a best practice approach based on their experiences in removing barriers.
The Commission also has a number of specific instruments to assist in the removal of barriers which have been reviewed and updated as part of the renewed Market Access Strategy. These include:
• The Market Access Database (MADB) which is interactive data base containing information on cases of trade barriers worldwide. As well as being a tool for helping identify and remove barriers the Database is useful for exporters wanting to check the situation by product, sector or country and for identifying the possible significance of such barriers. For EU governments it provides a valuable tool for prioritising the urgency and manner in which such barriers can be tackled. The Database also has an Exporters' Guide to Import Formalities in key markets.
• The MADB also includes a new Complaints Register whereby companies can explain simply and directly to the Commission the nature of a barrier they encounter and work directly with the Commission on the removal of the barrier.
• The Trade Barriers Regulation (TBR) which is a Regulation, a legal instrument that authorises the Commission to investigate complaints about violations of all international trade rules and propose solutions to eliminate obstacles to trade.
• The Commission represents the Member States on the WTO’s Technical Barriers to Trade (TBT) Committee which ensures that technical regulations and standards do not constitute unnecessary barriers to trade. This will be an essential part of the ‘early warning system’ envisaged in the work of the Market Access Teams.
• The Commission utilises channels such as the new generation Free Trade Agreements to encourage progressive and enforceable liberations and market opening in the relevant markets.
• The Commission also utilises negotiations for WTO membership as a means of ensuring maximum liberalisation of trade with applicant states.
• The Commission can, as a last resort, initiate action under the WTO’s Dispute Settlement Procedures.
Even though trade barriers are many, varied and often difficult to resolve, the good news is that the need for more progress on their removal and market access is common ground among all WTO members and all parties involved in free and fair trade - despite problems on other fronts. Getting rid of market barriers is the bread and butter of world trade.
Paul Elford
Tel: 020 7215 5430
Fax: 020 7215 2234
E-mail: paul.elford@berr.gsi.gov.uk