int 221
DESCRIPTION
EESC OPINION ON THE COMMISSION’S LeaderSHIP 2015 REPORT (INT 221 / CCMI 011). Presentation by Mr Joost van IERSEL member of the EESC. INT 221. BACKGROUND. The shipbuilding and shiprepair sector. Strategic sector Strong state intervention, in Europe & world-wide - PowerPoint PPT PresentationTRANSCRIPT
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INT 221
EESC OPINION ON THE COMMISSION’S
LeaderSHIP 2015 REPORT
(INT 221 / CCMI 011)
Presentation by Mr Joost van IERSEL
member of the EESC
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BACKGROUND
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The shipbuilding and shiprepair sector
• Strategic sector• Strong state intervention, in Europe & world-wide• Means of transport for international trade• Contribution to defence and security• Early exposure to globalisation• Failure to implement anti-dumping rules
uncontrolled distortions of competition
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The shipbuilding and shiprepair sector /2
• Strong continuous growth in the production of ships for more than two decades
• Rapid technological progress, reduction of costs
• Shipbuilding market is determined by offer prices
• Damaging business practices from South Korea market loss of the EU
• Around 2003: strong economic growth in China record number of new orders
• Developments may not last, Europe should seek sustainable solutions
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The shipbuilding and shiprepair sector /3
• Alternately over-capacity and under-capacity• Until recently shrinking market, lay-offs• Strategic state investment in Asia
supply/demand discrepancy• 2004: €34 billion turnover, 9,000 companies, a
workforce of 350,000, 10% of turnover ploughed back into R&D
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Policy characteristics
• Emphasis on trade policy and competitiveness
• Efforts towards an internationally applicable agreement guaranteeing a level playing field
• Difficulty to apply the existing multilateral trade rules to the shipbuilding sector
• Unfair pricing practices and subsidies of certain competitors, South Korea!!!
• Essential to start a bilateral dialogue with China
• Dual Council policy: WTO complaint + TDM
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Evolution of shipbuilding policy
• Strategic importance traditionally strong government intervention
• Focus on state-aid systems since the '70s
• OECD agreement concerning shipbuilding no entry into force
• EC 1540/98, abolition of operating aid as of 2000
• Council/South Korea talks on damaging business practices lack of implementation
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Evolution of shipbuilding policy /2
• Commission brings the case to the WTO + TDM (temporary defensive mechanism)
• New OECD efforts (without USA)• COM (2002) 714: Industrial policy in an
enlarged Europe• Council call for European competitiveness
policy• LeaderSHIP 2015• High Level Advisory Group + Commission
report: 30 recommendations in eight areas for the competitiveness of the European shipbuilding and repair industry
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Industrial Policy new-style
• After the Liikanen report commissioner Verheugen devises conditions: – No state aid– Improving conditions for industry– Internal market– Technological platforms– Consultation at a preliminary stage– Trade policy– Intellectual property– Skills
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New Approach = LeaderSHIP 2015
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Why?
• The industry needs not only competition and trade policy, but also COMPETITIVENESS policy
• Aggressive South Korean policy needs urgent response
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What?• Objectives: improved leadership through
strengthened competitiveness• EU's role should cover:
- financing and guarantee schemes
- safety and environmental standards
- intellectual property• Common policy for naval defence• New vessel types and new generations of
marine equipment• Restructuring the industry to arrive at a
limited number of large companies• Small, very flexible companies networking
to serve smaller niche markets.
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The High Level Advisory Group Commission
report• Chaired by Commissioner Liikanen, discussions
on LeaderSHIP 2015. Necessary are:
– level playing field in world shipbuilding through the EU trade policy, enforcement of applicable WTO rules and enforceable OECD disciplines
– EU/industry cooperation on R&D and innovation– Pre- and post-delivery financing– Quality assessment improvement, safety and control
of shipbuilding and ship repair– Protection of intellectual property rights– Optimal industrial structure "aid for
consolidation“
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The High Level Advisory Group Commission
report/2
• The Council endorses the Commission report
• The Commission report on LeaderSHIP 2015 transposes the work of the High Level Advisory Group into formal Community policy
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Commission report • Leading role for European shipbuilding and
shiprepair by 2015• Strategic dimension of shipbuilding and
shiprepair• Need for WTO rules to be obeyed• 8 areas:
– Level playing field in world shipbuilding– R&D and innovation investment– Financing and guarantee schemes– Safer and more environment-friendly ships– European approach to naval shipbuilding– Protection of intellectual property rights– Access to a skilled workforce– Sustainable industry structure
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EESC opinionConclusions and
recommendations
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EESC opinion /1
• European approach instead of national policies
• Yearly progress report• World-wide level playing field• Monitoring of the application of state-
aid rules and unfair practices• R&D and innovation
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EESC opinion /2
• A guarantee fund as suggested in LeaderSHIP should be a priority for the Commission
• Appropriate standards for maintenance of ships
• Cooperation between coastguards concerning safety and security
• The Social Dialogue should address differences in labour productivity world-wide
• Consolidation• Naval sector: synergy between yards for
knowledge and know-how
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EESC opinion /3
• Strengthen and modernise the "invisible" ship repair and conversion sector
• Dependence of competitiveness on RDI• "Securing the access to a skilled workforce"
is of key importance• Establishment of a sectoral social dialogue is
positive• Competitiveness without weakening the
European social acquis
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EESC opinion /4
• Key aspects: industrial cooperation between shipyards and suppliers, access to foreign markets and consolidation of the industry
• Common market in defence equipment• Importance of implementation• Monitoring: European observatory? Marine
Industries Forum• Commission should consider price stabilisation
on international markets through Community support measures
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INT 221
EESC OPINIONON
ERIKA II&
PHASING IN DOUBLE-HULL OIL TANKERS
(TEN 067 + TEN 251)
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Background
• The Commission’s ERIKA II package for maritime safety and prevention of pollution
• MARPOL regulation : prohibiting the carriage of heavy grade oil in single-hull oil tankers on a world-wide basis
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EESC opinion
• The economic and social concerns related to the exemption from MARPOL invoked by one member state should be specified
• A definition of “heavy grade oil products” is necessary
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EESC opinion /2• Need for the ILO's maritime conventions
to be incorporated in Community law • The "human factor" in accident
prevention and crisis management is missing from ERIKA II
• ILO's maritime conventions and recommendations should be ratified and implemented
• stricter and more effective standards on navigation safety and pollution prevention
• Several technical recommendations