E.U. focuses on counterfeit trade in Asian talks

Supply chain security, smuggling (particularly of cigarettes) and the protection of intellectual property rights will be high on the agenda of a speech given by Algirdas Šemeta, E.U. Commissioner for Taxation, Customs Union, Anti-Fraud and Audit, at the Shanghai World Expo 2010 today. This is the latest in a series of meetings between the E.U. and Asian politicians that have taken place over the week as the union attempts to build bridges to facilitate trade between China, the wider Asian region and Europe. Last Friday, E.U. Trade Commissioner Karel De Gucht finished a three-day visit to Da Nang in Vietnam, where he was invited to the 42nd ASEAN Economic Ministers Meeting (AEM). The visit was the first time in three years that an E.U. representative had participated in such a meeting.hideAccording to the E.U. the visit presented an opportunity to intensify trade and economic relations with ASEAN as a group, after the negotiations for a region-to-region Free Trade Agreement (FTA) were put on hold in 2009. It said that the Commissioner also had a number of ‘useful’ bilateral meetings with Trade Ministers from various Asian countries. In its statement on Commissioner Šemeta’s speech the E.U. pointed out that China is the E.U.'s second largest trading partner after the U.S., its biggest source of imports and that the E.U. is China's largest export market. It said that both the E.U. and China therefore have a ‘real interest’ in ensuring that safe, genuine and legal products can easily enter each other’s markets. Commissioner Šemeta will spend three days in China, to discuss customs and anti-fraud measures with national authorities and business representatives, and will visit the port of Shanghai to see ‘first-hand’ how Chinese customs controls operate, said the E.U. Commissioner Šemeta said: "The booming trade between the E.U. and China is extremely positive. However, the downside is that we have seen a parallel increase in illegal trade, which must be stopped. Respect of customs rules is essential to protect our citizens and guarantee the free flow of goods between trading nations. This is why we must work even harder on efficient customs cooperation between the E.U. and China, built on mutual trust and common goals.” The E.U. statement said that China is the ‘single most important’ challenge for E.U. trade policy. “Cooperation between customs authorities on both sides is essential to facilitate this trade,” it added. The E.U. said that good trade relationships must be based on the trust that both sides are fully committed to ensuring a high level of security in the goods they export. It added that the E.U. and China have worked for a number of years to ‘solidify’ this trust in the area of customs. Examples of measures already taken is the signing of a Customs Co-operation and Mutual Administrative Assistance Agreement and the establishment of the E.U.-China Joint Customs Co-operation Committee (JCCC), to promote cooperation and information exchange, and to help find common solutions. One issue that the Commissioner will discuss with his counterparts in Shanghai is the expansion of the Smart and Secure Trade Lanes (SSTL) pilot project that was launched in 2006. This project tests the security measures applied to a sea container and supporting technology such as so-called smart seals throughout its entire journey. It also promotes data exchange and mutual recognition on key customs issues. The first phase involved ports in the U.K. and Netherlands, as well as the Chinese port of Shenzhen. “The SSTL Pilot has been extremely successful in developing understanding, trust and cooperation between the participating customs administrations, as well as progressing the work on mutual recognition of the business partnership programmes on both sides,” said the E.U. The E.U. statement said that it and China are now preparing to launch the next phase of the SSTL, and that participation will be extended to include Belgium, France, Germany and Italy, as well as the port of Shanghai. The protection of Intellectual Property Rights (IPR) and the fight against counterfeiting and piracy is another key plank to help improve E.U.-China economic and trade relations. In January of last year, the E.U. and China signed an agreement on an ambitious Action Plan for closer customs cooperation on IPR enforcement. This agreement aimed to strengthen customs controls against counterfeit and piracy of goods, said the E.U. Under this plan both sides have focussed on the establishment and implementation of a customs network on IPR protection, as well as the development of activities in areas such as data exchange. During the Commissioner’s visit to China this week, both sides will discuss an extension of this Action Plan until the end of 2012 and will look at ways in which it can be improved. Commissioner Šemeta will also discuss how E.U.-China cooperation can be improved to stop the illegal trade in cigarettes. The E.U. said that counterfeit and contraband cigarettes pose a ‘huge problem’ for the E.U. Over five billion illegal cigarettes were seized by E.U. customs last year, and, it estimates, that this is perhaps only 5-10% of the real volume of the trade. It reckons that Member States lose up to €10bn in unpaid taxes every year from the illegal tobacco trade. “Moreover, the money from counterfeit and contraband cigarettes feeds organised crime and terrorism, which affects countries all over the world,” added the E.U. E.U.-China cooperation on cigarette smuggling takes place within the framework of the Mutual Assistance Agreement, signed by both sides in 2008. Since 2008, OLAF (the E.U.'s Anti-Fraud Office) has had a liaison officer in Beijing to work with Chinese customs and other authorities to tackle the problem. “Close cooperation, and the exchange of information and intelligence on suspect consignments, is essential in targeting operations and improving controls against illegal cigarettes,” said the E.U.

E.U. focuses on counterfeit trade in Asian talks

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