Warsaw, 4 February 2025
Ensuring coherence between trade and industrial policy to strengthen the EU’s global competitiveness in an unstable international environment was the main topic of discussion on Tuesday, 4 February, during the informal meeting of ministers responsible for industry, the internal market, and trade in Warsaw.
The informal meeting of EU ministers for trade, the internal market, and industry in Warsaw was chaired by the Minister for Development and Technology, Krzysztof Paszyk.
The discussions were also attended by Executive Vice-President of the European Commission for Prosperity and Industrial Strategy, Stéphane Séjourné, Commissioner Maroš Šefčovič, responsible for trade and economic security, and Deputy Secretary-General of the European External Action Service, Simon Mordue. Ministers responsible for industry from EFTA countries also participated in the talks.
The inaugural session of the joint meeting featured a special guest, Mathias Cormann, Secretary-General of the OECD.
To enhance European competitiveness, it is crucial to ensure an integrated approach across all policy areas. We discussed the need for coherence in shaping new initiatives in EU industrial and trade policy.
Krzysztof Paszyk, Polish Minister for Development and Technology
As Minister Paszyk said, European policy must respond to the challenges to our competitiveness and lead to greater economic security for Europe. Effective trade policy requires a strong industrial base, while industrial development depends on an ambitious and assertive trade policy.
Coherent actions in industry and trade
The Polish presidency is the first to organise a joint meeting of two Council configurations – the Competitiveness Council and the Foreign Affairs Council in its trade format. The current challenges to Europe’s competitiveness require synergy between different policies and breaking down administrative silos.
Ministers agreed that trade policy instruments should be more closely aligned with industrial policy objectives to strengthen the global competitiveness of European businesses.
They also emphasised the need for new initiatives to boost the resilience of the Single Market and ensure a level playing field, particularly in response to unfair practices by third countries.
The discussion highlighted the importance of supporting traditionally strong sectors such as chemicals, steel, and automotive, as their condition directly affects global competitiveness and resilience to external shocks caused by shortages of key resources in the European market.
The discussions on coherence between trade and industrial policy marked the first political debate among economic ministers following the European Commission’s publication of the Competitiveness Compass. This document sets out the strategic direction for European economic policy over the next five years, with planned initiatives aimed at strengthening the global competitiveness of European businesses.
A key initiative announced in the Competitiveness Compass is the Clean Industry Pact, scheduled for presentation at the end of February.
Integration of candidate countries into EU value chains
Another key topic of discussion at the informal meeting in Warsaw was the potential integration of candidate countries into EU value chains to enhance both competitiveness and economic security. Ministers discussed which sectors should be prioritised in the integration process between the EU and candidate countries, particularly regarding supply chains. The talks also covered ways to improve the effectiveness of trade agreements and other relevant instruments.
Trade agreements help to integrate candidate countries into EU value chains. The main message here is that we don’t need to wait for accession to the European Union, because much can be done now. The tools are clearly there. The EU’s trade agreements with candidate countries, notably the deep and comprehensive free trade areas with Ukraine, Moldova and Georgia, are very innovative.
Maroš Šefčovič, EU Commission EVP for the European Green Deal, Interinstitutional Relations and Foresight
Transatlantic relations
The informal meeting in Warsaw concluded with a discussion among EU ministers on strengthening the resilience of transatlantic relations. Ministers reaffirmed that the partnership between the United States and the European Union remains crucial for upholding the international order based on stable institutions, legal frameworks, and fair competition. They stressed the need to develop a positive agenda for trade, investment, and technological cooperation, while also ensuring the firm and flexible protection of the EU’s economic interests.
It is in the interest of Europeans to maintain a strong and meaningful relationship with the United States, as we continue to believe, just as it is in the interest of Americans, to have a trusting and positive relationship with Europe as well.
Stéphane SéjournéEuropean Commission Executive Vice-President for Prosperity and Industrial Strategy
Study visits to innovative Polish companies
On Monday, ministers for the internal market and industry visited two innovative Polish companies: Bioton, a biotechnology firm providing safe and comprehensive solutions for diabetes treatment, and Vigo Photonics – a global leader in microelectronics, specialising in infrared photon detectors.
Further information
- You can watch the full press conference here.
- Joint meeting of the COMPET (Industry and Internal Market) and the FAC (Trade) Ministers in Warsaw/ 3-4.02
- Competitiveness Council (Internal market and industry) 6/3
- Competitiveness Council (Internal market and industry) 22/5
Source – Polish EU Presidency
Remarks by Commissioner Šefčovič at the press conference following the joint informal Competitiveness and Foreign Affairs Council meeting
“Check against delivery”
Good afternoon and thank you for your hospitality. It’s been a pleasure to have our discussions in the beautiful city of Warsaw – and I wish the Polish Presidency a successful term, especially given the global geopolitical uncertainty.
Let me begin with the topic I know is most on your radar – the relationship between the European Union and the United States.
While I will not speculate on what might be, I want to state clearly that the transatlantic partnership is of strategic importance.
No other two economies in the world are as integrated as we are. And on both sides of the Atlantic, we benefit fully from this unique bond – there is nothing unfair in it.
You have already heard me say that:
- While the EU has a surplus of EUR 154 billion in goods vis-a-vis the US, the US has a surplus in services of EUR 104 billion as regards the EU.
- This means the overall EU trade surplus towards the US is only some 3% of our total trade flow of EUR 1.5 trillion, so around EUR 50 billion.
To put this into perspective, those figures reflect the specialisation of our respective economies and consumer preferences.
And let’s not forget that more than EUR 4 billion of goods and services cross the Atlantic daily, while over EUR 5 trillion is cross invested in our economies.
At the same time, every year, some EUR 300 billion of European private savings is channeled abroad, mainly to the US.
So, it is clear to me that cooperation pays off, while across-the-board tariffs make everyone worse off. This is – and will be – my message to my prospective US counterparts.
So, we are ready to listen, to engage and to negotiate in our mutual interest.
Having said that, the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.
Now, turning to our discussion on ways trade agreements help integrate candidate countries into the EU value chains.
Here, the main message is that we don’t need to wait until accession to the EU because much can already be done now – the tools are there.
The EU’s trade agreements with candidate countries, notably the Deep and Comprehensive Free Trade Areas with Ukraine, Moldova, and Georgia, are very innovative.
On top of their standard liberalisation component – for goods, services, investment or public procurement – they also include our partners’ commitment to align with relevant EU law.
Finally, a few words on how trade policy can support the EU’s long-term competitiveness.
There’s no doubt that trade remains key to the EU’s future growth.
First, effective partnerships around the world help us secure affordable access to production inputs, including critical minerals, while reducing risky over-dependencies thanks to diversification.
Second, trade agreements open new markets for our companies to grow and stay globally competitive.
Third, trade helps ensure that our businesses operate on a global level playing field, especially in the face of frequent unfair, non-market practices by some countries.
All in all, I am convinced that our trade policy continues to be a success story – although we do want to step up our game, given the increasing global competition and trade tensions.
The EU already has the largest and fastest growing network of trade agreements globally, covering 76 countries that account for almost half of the EU’s trade.
- The value of EU trade through these agreements surpassed EUR 2 trillion in 2022.
- Of the 724,000 EU companies exporting goods outside of the EU, some 690,000 are SMEs.
- Over 30 million jobs in the EU are supported by exports.
I want to see new business opportunities created, by deepening our trade and investment partnerships with like-minded partners around the globe – and I am personally committed to bringing new political impetus into ongoing or prospective negotiations.
We are deal makers – this is in our DNA – and we have already shown that over the past few months, by concluding deals with Switzerland, Mercosur and Mexico, while also relaunching negotiations with Malaysia, and moving forward on those with the Philippines, Indonesia and Thailand.
Gulf countries have also expressed an interest in deepening our trade ties.
At the same time, where unfair competition threatens the EU’s single market, we use protective tools at our disposal, such as trade defence instruments, and rigorously enforce the Foreign Subsidies Regulation.
We will also explore avenues to increase the robustness of EU trade defence tools.
Our response must be tailored for each specific sector.
- In the automotive sector, we have already imposed duties on unfairly subsidised electric vehicles from China.
- In relation to the steel sector, we are reviewing the safeguard which is in place with the view of tightening it and I should be able to come forward with results soon. We are also working on a long-term solution to address the situation once the safeguard expires in 2026.
To conclude, I want to stress that trade and competitiveness are communicating vessels – they are truly interlinked. So, in that context, today’s discussions have been of great value. Thank you.
Source – EU Commission