UNUnited Nations Economic Commission for Europe

Press Release

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Avoiding “two parallel Europes”

Executive Forum on “Competing in a Changing Europe”
Geneva, 11-12 May 2004


Geneva, 14 May 2004 - In the light of the recent enlargement of the European Union to 25 Member States, the United Nations Economic Commission for Europe (UNECE), in cooperation with the United Nations Development Programme, held a two-day Executive Forum on “Competing in a Changing Europe”. The Forum examined strategies for trade and business in the region, and for integrating regional markets through trade facilitation and information and communication technologies (ICT) and for promoting agricultural quality standards in international food supply chains.

Participants, from the public and private sector, and from civil society, came from industrialized, transition and developing countries in the UNECE region and beyond. They highlighted factors driving competitiveness, especially in the new Member States and the EU’s “new neighbours”. These included regulatory convergence, good public and corporate governance, and promotion of entrepreneurship. There was also general agreement on the importance of ICT and support for a growing knowledge based economy throughout the region as foreseen by the EU’s “Lisbon Agenda”.

The Executive Secretary of the UNECE, Ms. Brigita Schmögnerová, stated that one of the UNECE’s priorities is to help its least advantaged member States adapt to the challenges of the new trading environment, to avoid the creation of “two parallel Europes” that would grow and develop at different speeds, and possibly in different directions.

Mr. Alan Bryden, Secretary-General of the International Organization for Standardization (ISO) and Chairman of Session 1 of the Forum, said that international standards help socio-economic progress in the world by serving as a bridge between the private and public sectors. Participants echoed the importance of regulatory cooperation and industry-led standards in developing trade in the region.

In the area of agricultural products, quality standards create a common language to help producers, standards-setting bodies, inspectors, distributors and retailers work together to achieve food safety, traceability and consumer satisfaction in the international food supply chain.

Ambassador Carlo Trojan, Head of the Permanent Delegation of the European Commission to the International Organizations at Geneva, and Permanent Representative to the World Trade Organization, highlighted that Central and Eastern European countries have been re-orienting their economies and investment links towards the EU for the past 15 years. In that sense, “this enlargement is not a ‘big bang’ or complete leap into the unknown.”

Countries with a “date for a date” with the EU and non acceding countries wishing to strengthen their trade relations with the Union are also adjusting their regulatory frameworks to take into account the acquis communautaire. Other important factors of competitiveness for these countries were low unit labour cost, locational and logistical advantages, and – for some of them – preferential access to the EU market.

The elimination of barriers to trade is expected to bring important economic gains to the EU: 10 billion Euros for the original 15 EU members and 23 billion for the new members, according to one estimate. These benefits will not accrue automatically or be shared uniformly without regional financial cooperation and strong partnerships between governments, businesses, regional and international organizations and civil society. The role of sub-regional organizations, such as the Black Sea Economic Cooperation Organization, the European Free Trade Agreement, GUUAM* and the Central European Initiative, was also important. At the national level, non-acceding countries in the region, such as Ukraine, will need to accelerate economic reforms and, in particular, the restructuring of production, and develop a new model of partnership with the enlarged EU.

Participants expressed their appreciation of UNECE’s technical-cooperation and capacity-building programmes in areas such as regulatory convergence and the development of trade facilitation and agricultural quality standards, and called for increased activities in these areas. UNECE will continue to support economic integration throughout the region, through the development and implementation of its norms, standards and recommendations for best practice in trade and enterprise.


For further information, please contact:

Lorenza Jachia
Forum Coordinator
United Nations Economic Commission for Europe
Palais des Nations
CH - 1211 Geneva 10

Phone: + 41 (0)22 917 5593
E-mail: [email protected]

Web site: http://www.unece.org/trade/forums/forum04/index.htm

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* Georgia, Ukraine, Uzbekistan, Azerbaijan, Moldova (Rep. of).

 

Ref: ECE/TRADE/04/P05