Market Access EU and No-EU countries Newsletter 2014 - tradoc_148334

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    Issue 35 – 28 October 2011

    Editorial

    The global economy has once again entered aphase of uncertainty. Trade is not immune to thisdevelopment. The EU's latest protectionismmonitoring report – a summary of which you willfind in this newsletter - highlights concerns over arise in the number of trade-restrictive measurestaken by our trading partners in the last 12months. It is important that the forthcoming G20summit in Cannes and the WTO Ministerial at the

    end of the year provide a clear signal regarding the importance of keepingmarkets open in times of economic uncertainty.

    EU trade policy stands for open markets, both at home and abroad. Thisis why we launched a very ambitious negotiating agenda to achievegreater market access and better international rules for Europeanexporters. While negotiating agreements with important trading partnerssuch as India, Canada, Mercosur, Ukraine, Singapore and Malaysia, weare working on the implementation of agreements which have alreadyentered into force, such as the one with South Korea.

    I have just returned from Seoul where I co-chaired the first EU – SouthKorea Trade Committee under the new trade agreement. We made goodprogress to ensure that the agreement delivers real economic benefits forour exporters. We also hosted a conference for European business on 27October in Brussels where we took stock of the first 100 days ofimplementation of the agreement. During the conference, we presentedour new practical guide available in all EU languages "The EU-Korea FreeTrade Agreement in practice" for companies wishing to export or invest inKorea.

    You will find more details about these and other trade issues in thisnewsletter, including a report regarding a recent seminar in Washingtonwhich brought together EU and US experts for an exchange of bestpractices for supporting small and medium-sized enterprises.

    I wish you a good reading.

    Karel De Gucht European Commissioner for External Trade

    In this issue…Editorial ................................................. 1High-level Conference on theimplementation of the EU-South KoreaFree Trade Agreement in Brussels on 27October ................................................. 2First EU-South Korea Trade Committee 3EU concerned over rise in protectionismacross G20............................................ 3

    EU-US SME Best Practices Workshop,Washington D.C., 13-14 October 2011. 4 Annual Conference of the EnterpriseEurope Network, Warsaw, Poland, 26-28September 2011.................................... 4Market Access Working Groups… ........ 5Looking back… ..................................... 7Looking ahead…................................... 8Do you know that…?............................. 9

    Issue 35 – 28 October 2011

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    Issue 3 5 – 28 October 2011

    High- level Conference on th e implementa t ion o f the EU-South Ko reaFree Trade Ag reem ent in B rus se ls on 27 Octob er

    On 27 October 2011, the Commission hosted a high-levelconference on the implementation of the EU-South Korea FreeTrade Agreement ("FTA") in Brussels, which is part of thebroader effort to promote this Agreement. The seminar's aim wasto raise awareness among the economic operators regarding thebenefits of this FTA.

    On 1 July 2011, the EU-South Korea FTA became operational.The first reductions of tariffs took effect, and within 5 years fromthe application of the FTA, 98.7% of duties in bilateral trade valuefor both industrial and agricultural products will be eliminated.This is the most ambitious trade liberalization ever achieved in aFTA negotiated by the EU.

    Since July, when the first duty cuts kicked in, the volume andvalue of exports for certain EU products from pork, wine andchocolate to luxury brands have jumped. The EU has posted itsfirst trade surplus with Korea in over 10 years.

    Despite the many positive and potentially beneficial features ofthis FTA, past experience suggests that continued attention mustbe paid to implementation and to providing comprehensiveinformation.

    Therefore, a conference organized by the Commission on 27October 2011 and attended by more than 300 participants mainlyfrom the business sector aimed to raise awareness among theeconomic operators regarding the benefits of this FTA.

    Key issues discussed

    Speakers at the first part of the conference included H.E. AhnHo-young, Ambassador of the Republic of Korea to the EU,Robert Sturdy, Member of the European Parliament and Vice-Chair of the European Parliament's Committee on InternationalTrade, Jean-Luc Demarty, Director-General for Trade at theEuropean Commission and Roland Verstappen fromBusinessEurope. All speakers praised the contribution of the FTAto bilateral trade, economic growth and jobs in times of economiccrisis.

    In the second part of the conference, participants exchangedviews in various panels on specific issues related to theimplementation of the agreement such as tariff liberalization,rules of origin, services and questions related to individualsectors such as motor vehicles and parts, electronics andpharmaceuticals products & medical devices, food, beverage andagricultural products.

    Guide for stakeholders

    At the conference, a guide for Europeancompanies whishing to benefit from theexport opportunities created under theagreement was presented. This guide is auseful tool for informing business on the practicalities of the FTA,e.g. what an ‘origin declaration’ is and who can issue it, about theobligations of an approved exporter, the specific economicbenefits by sector, contact points, online information, etc. Theguide is availablein all official EU languages on DG Trade'swebsite: http://wwwdev.trade.cec.eu.int/trade/creating-opportunities/bilateral-relations/countries/korea/

    http://trade.ec.europa.eu/doclib/html/148303.htmhttp://wwwdev.trade.cec.eu.int/trade/creating-opportunities/bilateral-relations/countries/korea/http://wwwdev.trade.cec.eu.int/trade/creating-opportunities/bilateral-relations/countries/korea/http://trade.ec.europa.eu/doclib/html/148303.htmhttp://wwwdev.trade.cec.eu.int/trade/creating-opportunities/bilateral-relations/countries/korea/

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    Issue 35 – 28 October 2011

    Firs t EU-South Ko rea Trade Com m it tee

    One hundred days after entry into force ofthe most ambitious bilateral free tradeagreement (FTA) ever negotiated by theEU, the first meeting of the EU-SouthKorea Trade Committee, co-chaired bySouth Korea’s Trade Minister Kim Jong-hoon and EU Trade Commissioner KarelDe Gucht, took place in Seoul on 11 and12 October.

    Both sides took stock of the FTA'spositive aspects for business operators.However, some barriers toimplementation of the agreement stillremain, mainly relating to regulatoryissues. Positive steps have been agreedbetween the EU and South Korea totackle these outstanding issues.

    During the meeting in Seoul, both partiesagreed on ways forward to bridgeimplementation issues in the areas ofmotor vehicles and electronics. Asregards motor vehicles, market accessissues on tyres, after-sales verificationrules for diesel emissions and safetystandards of cars were tackled. Onelectronic goods, the meeting addressed

    the need to recognize agreed ways oftesting electronic products.

    Commissioner De Gucht also underlinedthe need for the EU and South Korea touse the free trade agreement anddeepened partnership to help forgecommon standards in the future onproducts such as electric vehicles (e-cars). Such a move is key to ensuring thatEurope and South Korea remain leaderson standards for the world market so thattheir companies remain competitive andtheir consumers have the best choices.

    Finally, the Trade Committee identified anumber of areas where additional work isneeded by both parties to reduce theadministrative burden preventing freetrade flows, such as complex proceduresfor imports of European agriculturalproducts in South Korea.

    On the sidelines of the meeting,Commissioner De Gucht invited theEuropean business world to givefeedback and inform his services of anydifficulties with implementation of the

    agreement. Commissioner De Gucht alsoencouraged European companies tobecome certified as “approved exporters”with their national customs administration.This certification is necessary if Europeancompanies want to enjoy the abolition ofcustoms duties in accordance with the

    agreement.

    Various committees and working groupsat technical level will be convened in thefollowing weeks and months to monitorthe implementation of the agreement andfind solutions to any problems that mayarise.

    EU concerned over r i se in p ro tec t ion ism across G20

    On 19 October 2011, the EuropeanCommission DG Trade published the 8th Report on potentially trade restrictivemeasures adopted by third countries inthe aftermath of the economic crisis. Thereport's findings call again for close atten-tion to the recent wave of trade restric-tions adopted in particular by emergingeconomies over the past twelve months.

    The analysis, now available online on theDG Trade website (http://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htm), paintsa worrisome picture. It indicates the con-stantly growing number of new potentiallytrade restrictive measures increasinglybecoming part of targeted industrialisationpolicies by third countries. In addition totheir individual distortive potential, many

    measures have a mutually reinforcingcharacter, being part and parcel of thesame industrialisation package.

    The increasing trade restrictive measurespose a systemic market access problem,as many measures introduced during theeconomic crisis have remained in force,and are frequently prolonged. Moreover,the number of measures that lapsed in

    http://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://ec.europa.eu/trade/maintenance/html/press-release-743-458_en.htmhttp://wwwdev.trade.cec.eu.int/trade/creating-opportunities/bilateral-relations/countries/korea/

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    the past twelve months remains unsatisfy-ing if compared to the emergence of newrestrictions.

    All in all, the Commission notes 424measures remaining in force or plannedby third countries and G20 economies inparticular, as of September 2011. In thepast twelve months, 131 new measureshave been noted. Only 17% of all meas-ures have been removed so far (76), with40 measures eliminated or lapsing in thepast year.

    The Commission remains particularlyconcerned about measures adopted inthe area of government procurement aswell as by export duties and other exportrestrictions.

    The WTO report on trade-related devel-opments in G20 countries, issued on 26October 2011, confirms these worrisometrends, admitting that some countries,instead of fulfilling the Washington com-mitment, pursue a policy in the oppositedirection. The WTO figures on removal ofmeasures in place (19%) coincide with

    those of the EU (17%). The report isavailable at http://wto.org/english/news_e/news11_e/igo_26oct11_e.htm .

    These findings clearly indicate insufficientrespect by G20 countries for their stand-still and roll-back commitments consis-tently made since the onset of the eco-nomic crisis. The upcoming G20 summitin Cannes on 3-4 November providesanother opportunity to highlight the impor-tance of resisting protectionist tendenciesamong the major economies.

    .

    EU-US SME Best Pract ic es Wor ks ho p, Wash ing ton D.C., 13-14Oc to b er 2011

    The conclusion of the Transatlantic Eco-nomic Council ("TEC") of December 2010to strengthen cooperation on transatlanticSME issues resulted in a second EU-USSME Workshop on best practices that

    took place on 13-14 October in Washing-ton DC (the first workshop was held inBrussels on 28-29 June, see Market Ac-cess Newsletter of July 2011). DG Tradeand the US Trade Representative organ-

    ised the event. Sixty partici-pants from EU and US busi-ness, EU Member states andEU and US authorities attendedthe workshop. The agenda cov-ered the areas export assis-tance, entrepreneurship, reduc-ing administrative burdens, ac-cess to markets and access tofinance. In the concluding ses-

    sion, EU and US business representa-tives requested to continue an EU-USdialogue on specific topics such as stan-dards, entrepreneurship, access to fi-nance (and micro lending), IPR, procure-ment and how new innovative ideas canbe better linked to commercialization. Acoordinated EU-US report with the out-come of both workshops will be providedto the TEC meeting on 29 November.Overall, all participants confirmed that theexchange of information was valuable forall involved parties and could lead tomore transatlantic cooperation on SMEissues.

    http://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htmhttp://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htmhttp://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htmhttp://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htmhttp://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htmhttp://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htmhttp://wto.org/english%20/news_e/news11_e/igo_26oct11_e.htm

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    Issue 35 – 28 October 2011

    An nu al Conferenc e of the Enterpr ise Europ e Netw ork , Warsaw,Polan d , 26-28 Septem b er 2011

    The Enterprise Europe Network ("Net-work") is a key instrument to supportSMEs in their gr owth and innovation ac-tivities (see www.enterprise-europe-network.ec.europa.eu/index_en.htm). The600 member organisations provide busi-ness and innovation support in all EUMember States and 22 non-EU countries.Network instruments include business

    partner search by using technology andbusiness cooperation databases, accessto information and funding opportunities.The Network's “one-stop shop” approachexploits synergies between all availablesupport services and helpdesks for Euro-pean businesses. Members are encour-aged to share best practices in areassuch as innovation and expansion to newmarkets so that SMEs can realise their

    potential in growth and job creation.

    The Annual Conference of the Networkbrought together around 800 participantsfrom the Network and Commission ser-vices. Access to finance, reducing admin-istrative burdens and SME internationali-sation are the top priorities of current EUSME policy and, consequently, for the

    Network. In the opening session, MrCalleja Crespo, Deputy Director Generalof DG Enterprise and Industry, stressedthe importance of internationalisation forthe growth of SMEs and set out elementsof the future EU SME internationalisationstrategy. The Market Access unit of DGTrade participated with a stand and gavea presentation on how SMEs can benefitfrom EU trade policy and its available

    services, such as the Market Access Da-tabase (for exporters –http://madb.europa.eu/), the Trade De-fence Helpdesk (http://ec.europa.eu/trade/contact/#trade-defence) and theExport Helpdesk (for importers –http://exporthelp.europa.eu/).

    Marke t Ac cess Work ing Groups …

    …on Tyres

    The seventh meeting of the market ac-cess Working Group on Tyre took placeon 14th September 2011, covering trade

    barriers in half a dozen countries.

    RegardingSouth Korea , concerns raisedby the EU Tyre Industry in relation to theSouth Korean conformity assessmentprocedure following entry into force of theFTA were widely discussed.

    In relation toChina, the discussion mainlyfocused on the organisation of an Expert

    Round table in Beijing through theEUCTP.

    As forIndonesia/ASEAN, an update wasprovided on recent regulatory issues forimported tyres, on the accession of Indo-

    nesia to the UNECE 1958 Agreement andon the ASEAN support programme foraccession to the UNECE Agreement.

    In relation toIndia, the Commission re-ported on latest developments of FTAnegotiations related to the NTB annexand also provided an update on the issueof the mandatory certification of tyres.

    As for Russia , a dialogue about theTechnical Regulation for Tyres in theRussian Federation and the impact of the

    Customs Union issue was engaged be-tween the European Tyres and RubbersManufacturers Association ("ETRMA")

    and EU business representatives in Mos-cow.

    The Commission also provided an updateon the question of non-automatic importlicenses in Argentina and trade restric-tive measures related to delays in cus-toms procedures inAlgeria.

    Last but not least, on theRaw Materials

    issue, ETRMA warned about potentialproblems of access in the future andpleaded that specific provisions to ad-

    http://www.enterprise-europe-network.ec.europa.eu/index_en.htmhttp://www.enterprise-europe-network.ec.europa.eu/index_en.htmhttp://www.enterprise-europe-network.ec.europa.eu/index_en.htmhttp://madb.europa.eu/http://madb.europa.eu/http://ec.europa.eu/%20trade/contact/#trade-defencehttp://ec.europa.eu/%20trade/contact/#trade-defencehttp://ec.europa.eu/%20trade/contact/#trade-defencehttp://ec.europa.eu/%20trade/contact/#trade-defencehttp://ec.europa.eu/%20trade/contact/#trade-defencehttp://exporthelp.europa.eu/http://exporthelp.europa.eu/http://exporthelp.europa.eu/http://ec.europa.eu/%20trade/contact/#trade-defencehttp://ec.europa.eu/%20trade/contact/#trade-defencehttp://madb.europa.eu/http://www.enterprise-europe-network.ec.europa.eu/index_en.htmhttp://www.enterprise-europe-network.ec.europa.eu/index_en.htmhttp://www.enterprise-europe-network.ec.europa.eu/http://www.enterprise-europe-network.ec.europa.eu/

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    dress those problems are included in allongoing and future negotiations for freetrade agreements with ASEAN producers.

    …on Chemicals

    The 4th meeting of the Chemicals WorkingGroup took place on 15 September 2011with participation of a large number of EUMember States, along with representa-tives from chemical companies and asso-ciations as well as Commission officialsfrom different Directorate-Generals.

    For the first time in this Working Group,progress on market access cases dis-cussed at the previous meeting was re-ported. This included the casesIndone-sia – decree 45/2009 (concerning importlicenses for both finished products andraw materials) and Japan – ChemicalSubstances Control Law which have bothbeen largely resolved since the last meet-ing. Moreover, an overview was providedon the ongoing implementation of theEU-South Korea Free Trade Agreement since its entry into force on 1 July 2011.

    Import restrictions on nitrocellulose inThailand and Brazil were discussed andrecent action undertaken by the EU Dele-gations in both countries was presented.Regarding Brazil, participants also fo-

    cused on issues related to patent protec-tion and technology transfer.

    Other topics raisedincluded non-automatic import li-censes in Argentina,export restrictions oncrude palm oil and itsderivatives in Indone-sia, discriminatory im-port requirements for Active PharmaceuticalIngredients (APIs) inChina, customs issuesin Russia, as well asdifficulties for the re-cruitment of foreignemployees in Vietnam. Finally, industrypointed to some urgent new market ac-cess concerns for plant protection prod-ucts inIndia and inUkraine.

    The Working Group's next meeting isenvisaged for January 2012.

    ...on Automotives

    The meeting of the Working group oncars, car parts and systems took place on7 October 2011.

    Specific focus was again given on theimplementation of the EU-South KoreaFree Trade Agreement and preparationsfor the first Trade Committee under the

    agreement on 12 October. Issues dis-cussed included marking for tyres, dieselemissions, post-marketsurveillance, standards forelectrical car chargers,truck tractors, minimumsize of passenger seats,and use of radio frequencyfor certain new safety func-tions and technologies.

    The Commission debriefedon the ongoing negotia-tions withRussia regarding

    the new Russian automotive investmentRegime, which are taking place in thecontext of Russia's WTO accession proc-ess.

    A recent problem inBrazil, namely a de-cree on tax advantages given to cars withnational content, attracted particular at-tention and new developments will be

    further monitored.

    Other items discussed include new en-ergy vehicle schemes, draft regulationson CO2 emissions and the investmentcatalogue in China, restrictions on im-ports of cars inArgentina, bio fuel legis-lation in Colombia, issues concerningissuing of GSP certificates for rules oforigin inUkraine and non-acceptance ofUNECE approvals and markings for af-termarket spare parts inRussia .

    Finally, two additional issues werebrought up by industry concerning thestate of play of tariff negotiations underthe EU-Algeria Association Agreement,and the list for non-technical barriersJa-pan, which the European car manufac-turer association (ACEA) had shared withthe Commission services.

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    The next meeting is likely to take place inJanuary 2012.

    ...on Textiles

    Commission and industry take jointstock of trade issues

    On 19 October, the Commission organ-ised a Textiles and Clothing Workshop forthe second time since full liberalisation oftrade in the sector entered into force in

    2009. This year's workshop focused onthe role of and priorities with regard to

    market opening, market access and rawmaterials issues for the sector. All partici-pants agreed on the importance of tradepolicy for external competitiveness oftextiles and clothing.

    The event gathered around the table in-dustry representatives at European andnational level, as well as Commission andEuropean Parliament officials, to analysethe state of play and importance of differ-ent free trade agreement negotiations,

    given the bilateral track's in-creasing importance for marketopening. The dialogue con-firmed that numerous marketaccess barriers are at the heartof discussions with third coun-tries and regional groups, suchas Canada, India and Merco-sur. Furthermore, implementa-tion of newly signed free tradeagreements (FTAs) will requiremonitoring efforts to ensure

    that no further trade distortions occur and

    benefits of the agreements trickle down tocompanies. Information efforts, such as inthe case of the Korea FTA, are under-taken for that purpose.

    The Market Access Strategy continues tooffer an alternative route for addressingmarket access irritants outside the FTAnegotiations framework. Participants dis-cussed the ongoing priorities and furtherwork to be undertaken on outstandingissues, to be addressed at the WorkingGroup's next meeting on 16 November.

    The event also confirmed the relevance ofthe sector's Raw Materials Strategy, withseveral indications from industry regard-ing the impact of export restrictions on theupstream manufacturing process, both forthe clothing and textile fields.

    Results of the workshop will feed in theCommission's ongoing work, particularlyas regards bilateral trade relations withthird countries.

    Look ing back…

    …On Success Stories

    Enforcement and early-warning are twokey functions of the Market Access Strat-egy and progress on market access casesis ongoing. In the past few months, suc-cess was achieved on the following note-worthy issues:

    India has further progressed in the re-moval ofexport restrictions on cotton .In 2010, India introduced export restric-

    tions on cotton yarn and raw cotton re-spectively amounting to 720 million kilo

    grams and 5.5 million bales for the finan-cial year 2010/11. After revoking restric-

    tions on cotton yarn and cotton waste in April 2011, the government lifted the re-maining quantitative restrictions on rawcotton in August after first increasing theexport quota in June (from 5.5 to 6.5 mil-lion bales). Export restrictions on cottonand products thereof were of great con-cern due to their upward pressure onworld price and distortions on security ofsupply. Moreover, India is one of the main

    EU import sources for cotton products andone of the main world producers.

    In August 2011, a WTO Panel decided onthe case regarding excise duties on al-

    cohol in the Philippines in relation to thePhilippines adoption of Act No. 9334, ef-fective from 1 January 2005. It appearsthat the Philippines maintained a discrimi-natory excise tax regime for many yearson distilled spirits that favours local pro-duction. Since adoption of the act, thevalue of EU spirits exports to the Philip-pines clearly decreased from €36,6 millionin 2004 to €20,1 million in 2005, and de-

    clining slightly further to €16,6 million in2010. The Panel's decision was a clear

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    victory for co-complainants, the EU andUSA, in determining that the Philippineexcise tax regime on distilled spirits vio-lated both the first and second sentence of Article III:2, GATT 1994. Following thePhilippines and EU appeals of the WTOruling (EU requesting for complete find-ings of both violations), a final decision isanticipated to be made in late Novemberor early December.

    Following several EU interventions, theFood Safety and Standards Authority ofIndia ("FSSAI") adopted ad-hoc guide-lines on 12 October 2011, clearing manyobstacles signalled by EU food importersas significant trade barriers. Imported fooditems with a shelf life of less than sevendays can now be conditionally releasedfrom customs without awaiting laboratorytest results certifying compliance with In-dian food import regulations. Importationof perishable food can take place withoutundue delay reducing prior damagecaused through increased testing time andlack of adequate/hygienic storage condi-

    tions at ports and airports. India furthereased sample size testing requirementswhich should limit often significant samplecosts. Further, new FSSAI guidelines al-low for rectification of certain import label-ling deficiencies in customs bonded ware-houses to permit compliance with Indiaspecific mandatory labelling requirements(such as vegetarian/non-vegetarian logo;

    indicating name/address of importer, etc.).While welcoming these new guidelines,which should facilitate EU food imports,not all obstacles have yet been removed.The Commission, and in particular theNew Delhi EU Delegation, continue towork on other outstanding food importsobstacles.

    Loo king ahead…

    16 November Working Group on Textiles, Brussels 17 November Market Access Advisory Committee, Brussels 1st December Working Group on Postal Courier, Brussels 15 December Market Access Advisory Committee, Brussels

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    Do you kno w tha t…?

    Your exports outside the EU are hindered by trade barriers? The European Commission is there to help you. If your exports to markets outside the EU are hindered by third countries' trade barriers, you can bring these problems to the

    European Commission's attention. Tackling and monitoring trade barriers is a core element of the EU's trade policy, and, in particular,its Market Access Strategy. The Commission has several means to address trade barriers in countriesoutside the EU, ranging from informal bilateral contacts to litigation through the WTO dispute settlementmechanism.

    European business plays a vital role in this process. A very simple way to bring a potential trade barrier to theCommission's attention is to use the interactive platfor m of the Market Access Database(www.madb.europa.eu)or the functional mailbox for trade barriers([email protected]).

    We need to know : About any trade restrictions you may face when entering a new market. The more factual information that you provide us with regard-ing a market access problem, including its economic impact, the more effectively we can formulate a policy aimed toward resolving it.

    You need to know :Details concerning your business will not be divulged without your explicit prior permission and sensitive commercial information will protected. We will follow up on your information and keep you informed of developments.

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