Czech Business Today
Czech Businesses Welcome EU’s Complex Focus on Trade and Investment Policy
In the middle of October, the European Commission presented its new trade and investment strategy called Trade for All: Towards a more responsible trade and investment policy.
The strategy is a response of Trade Commissioner Cecilia Malmström to several questionable issues that came across especially in relation to the Transatlantic Trade and Invest Partnership (TTIP) negotiations with the US. Trade for All is based on three main principles, which are effectiveness, transparency and values. Effectiveness principle of the strategy focuses on taking advantage of new trade possibilities that would deliver a major economic impact on EU economy.
The transparency principle reflects concerns of EU citizens that were and are presented during the TTIP negotiations, as they demanded access to negotiated documents. Finally, the values principle makes sure that new free trade agreements (FTAs) will contain measures that will promote European social and regulatory model abroad while safeguarding it in the EU. Czech business organizations welcome the intention of the Commission to have a complex strategy for trade and investment policy at EU level. In particular, Czech businesses appreciate that trade policy is positively presented as a source of growth and one of the factors that add to the creation of jobs.
Furthermore, focus on small and medium-sized companies is seen as a step in the right direction. In addition, the Commission expresses its willingness to finalize important ongoing FTA negotiations, especially with Japan and the US. The strategy also indicates that the new Investment Court System introduced recently by the Commission will be included in every ongoing and future FTA. However, the system, originally intended only to replace the Investor-State Dispute Settlement (ISDS) in TTIP negotiations, contains certain aspects that could limit the scope of investor’s protection abroad. Therefore, business community hopes that the Commission will create proper assessment of possible impacts of the new investment protection proposal.
