A recent UNECE Workshop, “Trade, Business and Investment
in a Wider Europe”, held on 7 April, highlighted a number of challenges confronting
the countries that are soon to become the “new neighbours” of the enlarged
European Union (i.e. the non-acceding countries). The main challenge will
be to promote sustained economic growth and reverse the trend toward rising
absolute poverty and increased income inequalities. This was a priority for
promoting regional stability and friendly relations between the European Union
and its immediate neighbourhood.
Two speakers introduced a new European Commission Communication
on: “Wider Europe – Neighbourhood: A New Framework for Relations with our
Eastern and Southern Neighbours”. The Communication outlines an offer that
the European Commission is proposing to make to its “new neighbours”, including:
- a stake in the EU’s internal market;
- liberalization of movement of goods, services, capital, and people;
- increased cooperation at all levels and renewed financial and technical
assistance.
There is an urgent need to lower trade transaction costs
for the new neighbours. To achieve this end, participants highlighted the
need for greater transparency and simplified procedures and, especially, the
need for harmonization. “The convergence towards regional norms and standards
is essential for lowering transaction costs and is thus of key importance
in the enlargement process”, said Mr. Encarnacao, moderator of UNECE’s “Telecom
Industry Initiative”.
Some participants also believed that the enlargement of the
European Union could, in itself, contribute to lower transaction costs. It
was felt that the UNECE could make an important contribution in this regard
through its existing work in trade facilitation, the development of agricultural
quality and e-business standards and regulatory approximation. Both the UNECE
and the EU suggested that this contribution could be reinforced through joint
activities and cooperation in the context of the “Wider Europe” initiative.
Small and medium-sized enterprises (SMEs) will be the first
to gain from an environment where transaction costs are lower. Their already
important contribution to employment and GDP throughout the European region
could grow further if they get more training and are given more exposure to
Internet and electronic commerce.
The Workshop also debated the impact of enlargement on investment
flows to countries which have no prospects of acceding to the European Union.
While enlargement will not necessarily cause a fall in the amount of foreign
investment going to the non-acceding countries, it might affect the structure
of investment and reinforce sectoral imbalances. But rising income in the
newly acceding countries might also create new comparative advantages as well
as export opportunities for non-acceding countries. To capitalize on these
opportunities, non-acceding countries – as Ambassador Skuratovskyi of Ukraine
pointed out in his conclusion – are doubling their efforts to enhance social
and economic reforms, as well as to solve social issues and strengthen the
democratic basis of their societies.
Active collaboration between the European Union and UNECE,
and the various other actors concerned will be an important contribution to
meeting this challenge.
Presentations and information about the speakers can be found on the following
web page: http://www.unece.org/trade/workshop/agenda.htm
Further information about the Workshop may be obtained from Maria Misovicova
or Lorenza Jachia (UNECE Trade Development and Timber Division) at tel. +41(0)22
917 3570 or 917 55 93
E-mail: [email protected]
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