On 30th September 2019, Phil HOGAN, from Ireland, Commissioner-designate for Trade, is heard by the Committee on International Trade (INTA) of the European Parliament in Brussels to test his general competences, European commitment and specific expertise related to his portfolio. On this occasion, Phil HOGAN has the opportunity to make an opening statement.  The following transcription is the result of an automatic process. Check Against delivery.

Brussels

Committee on International Trade

hearing

HOGAN, Phil (IE, EC)

hearing of Commissioners

2019 Commissioners' hearings (T)

hearing of Phil HOGAN 2019 (T)

Hearing of Phil HOGAN, Commissioner-designate, Trade: Opening statement by Phil HOGAN

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Thank you very much Mr. Chairman, Honourable members. I'm very grateful to President elect Von der Leyen for nominating me as Commissioner-designate for Trade. And I hope at the end of this hearing that you will feel able to place your trust in me to fulfil this role.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: I am no stranger to international trade because as Commissioner for Agriculture and Rural Development I've been working closely with the outgoing commissioner Cecilia Malmstrom. Her legacy is a very positive one which I hope to build upon. And I have experienced firsthand how international trade is the lifeblood of the European Union economy wheat exports of goods and services supporting one in 7 jobs.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: So I believe that the European Union's trade policy can and must provide real opportunities for sustainable growth. For stability and predictability in an increasingly volatile world while offering EU businesses a level playing field and the protection from unfair trading practices. What trade policy must also be able to evolve. We need to show that it is relevant and fish for and fit for purpose to address the new challenges to our security, our strategic autonomy and our technological leadership.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: They must also reflect and promote our values in the European Union and what we stand for. Especially in areas like climate action, sustainable development, labour rights, standards and women's empowerment. Before highlighting my priorities let me reassure you that if I am confirmed I will continue to build on the transparent way in which trade policy has been made during the period of the last parliament.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: I will be a regular visitor to this committee and in the plenary to respond to your issues of interest. I will also ensure that you have timely access to all the information you need and I know it very carefully what you have suggested Mr. Chairman. I will be supportive and encouraging the council to listen to your views in making progress and legislative fails. And in inviting provisional application of trade agreements before you've had the chance to give your consent.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Now I will work with you to project explain and promote our trade policy to people across Europe and beyond. Actress and professional communication of our trade relationships is in part. So I want to turn now to the five main priorities for trade policy and this mandate.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Firstly we must support a stable predictable and rules based trading environment by strengthening the World Trade Organization. Secondly we must manage our relationships and continue to build partnerships through trade around the world. With a particular focus on our direct neighbourhood and on Africa. Thirdly we must open markets and make trade a reality for EU businesses of all sizes. This also means that existing agreements should be fully implemented and better enforced.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Fourthly we must ensure that we have the tools to enable fair and open trade and a level playing field both internally and externally. And fifthly we must ensure the trade is sustainable. Promoting the European Union's values and focussing on climate action in line with the priorities of the income Commission and the concerns of this Parliament. So I want to take each of those five and turn.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Trade cannot fulfil its potential without the stability and predictability that comes from a rules based multilateralism. In president elect's words multilateralism is in Europe's DNA. It is our guiding principle in the world. My commission will keep on championing this approach and ensure that we uphold and update the rules based global order.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: So the international rules based trading order with the World Trade Organization at its core is facing its biggest challenge today. The WTO is essential but it needs to be updated. It offers a route to resolve trade disputes based on rules rather than the law of the jungle. This is why we need to uphold and defend it but also to ensure that his rules are fit to address the issues of today.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: The European Union has already played a leading role with this Parliament's support in trying to address this difficult environment. And if confirmed I will therefore do my utmost to prevent the collapse of the WTO dispute settlement mechanism and find a systemic solution to reform the appellate body. At the same time we'll work hard with other WTO members to reinvigorate the negotiating function of this organization.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: We should focus first and concluding negotiations on fishery subsidies as mandated by Sustainable Development Goal 14.6. Domestic regulation and services and investment facilitation will require an extra push. In view of next summer's 12th MC11 conference in Kazakhstan. I'm also keen to work with others to events the e-commerce negotiations, to prepare an initiative in the second half of 2020, to build a new way forward for the WTO.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: The rule book needs to be updated to address issues such as the rampant use of subsidies by China and others and forced technology transfers. In the current international context too many of our partners are on the path towards protectionism. Europe needs to speak up for fair open and rules based trade. If confirmed as trade commissioner our partners can expect a counterpart who is willing to show leadership work constructively and strive for positive outcomes.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: But I'll also be strong in standing up for European Union interests and our values when needed. Trans-Atlantic partnership has shaped international relations and the global order for the past 70 years. The United States has played a longstanding role as an essential supporter of the open global trade system. But some of the concerns of the United States about the global trading system are ones that we share, though we firmly believe that changes are best achieved within rules.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: So the European Union will continue to move forward on areas of common interest and work to reduce trade tensions. For example those areas that can be agreed and implemented as happened in July 2013 between President Juncker and President Trump. How we can work try laterally together with Japan to develop common approaches on aspects of WTO or farm.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: I am committed to work on a positive trans-Atlantic agenda and I will be open to the rapid resolution of trade disputes with my EU-US counterpart. We achieved this year on the hormone free beef quarter but to reach our objective. We need to have willing partners. The relationship between security technology and trade is evolving very rapidly. It's affecting our relationships with all major players.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: And we are ready to engage with the United States on these issues. In particular the security aspects of investment and export controls. We share a common understanding on the challenges posed by China's use of subsidies and the heavy involvement of the state in its economy. It stands to reason that we should find grounds to cooperate with our transatlantic allies and Japan on such strategic questions.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: But our relationship with China is also important and vital. It remains a source of wealth and jobs on both sides. Our companies need to be able to compete with Japanese Chinese companies though on a level playing field both in China and within the European Union. This is not the case today. I will pursue active dialogue and engagement including in areas of common interest such as climate change environmental protection the reform of the WTO including discipline and industrial subsidies.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: I will also prioritize our ongoing investment negotiations with the objective of rebalancing our investment relationship with China. We have to stand firm in defending our interests and values and I'm well aware of the concerns of this Parliament in this regard. Our approach to China should entail rebalancing our trade relationship and addressing unfair trading practices.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: I will not shy away from using our trade defence instruments to this and our relations should be based on effective reciprocity in access to markets and opportunities for businesses and investors. We also need to strengthen the security of our critical infrastructure and our technological base as outlined in the March 2019 communication on China.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: We have enhanced our internal toolbox with measures such as the EU mechanism on investment screening and we're working on how to address to the start of effects of foreign trade ownership of foreign state ownership and foreign subsidies in the internal market. We must also ensure those agreements reached with our eastern neighbours are delivering their full promise by continuing to develop our ambition for a Deep and Comprehensive Free Trade Areas with our southern Mediterranean Partners.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: We will follow developments with the European Economic Area countries like Switzerland and Turkey. Of course no consideration of the neighbourhood would be complete without reference to Brexit. The United Kingdom is scheduled to leave the European Union 31 days from today. While it remains impossible to predict the final outcome many people feel obliged to predict the outcome. The Commission has prepared exhaustively for an no deal Brexit.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Africa must become even a greater priority for us as well. The recently agreed African European alliance based on a policy and investment partnership of equals finds the way forward. I would build on my own experience in creating the task force for rural Africa as Commissioner for Agriculture and Rural Development which puts together African policy leadership and use support and investment together to help implement key actions.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Our trade agreements with Canada,Japan, Vietnam and most recently with Mercosur demonstrate our ability to leverage our internal market to open markets abroad to spread our regulations and standards and to help improve social and environmental policies and practices in targeted countries. We will continue our ongoing negotiations with Australia New Zealand and pursue new appropriate partnerships. If the conditions are right.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: But we also note a bit to do a better job in ensuring that the full potential of our existing agreements is realized. Our trading partners must respect the commitments they have made in all chapters. I believe therefore it's essential that we step up our efforts to implement and enforce existing agreements. The appointment of a chief trade enforcement officer will create a focal point for this work and I will ask him or her to work closely with you in taking our enforcement agenda forward.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: I also share your concern that we should do more for small and medium sized enterprises. Over 80 percent of EU businesses involved in international trade are small and medium sized enterprises for which trade and investment barriers present particular challenges for them. Fostering fair and open trade will be a priority. We must stand up against protectionism where it occurs.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: We must promote reciprocal trading conditions and fair competition by levelling the playing field both internally and externally. For example using instruments such as the international procurement initiative which aims to create reciprocity enabling the European Union businesses to succeed in government procurement of markets abroad.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: We must also tackle unfair competition by addressing more forcibly farm subsidies which affect EU companies by making full use of existing tools. For example in trade defence. This also means strengthening our own tool box including rules that allow us to react to illegal discriminatory trade measures by targeted countries where recourse under the WTO is not available.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Trade must not only be fair and open but also sustainable. Trade policy must contribute to addressing global challenges such as climate change protecting the environment and strengthening our labour standards. This is why the Sustainable Development chapters in each of our agreements with their binding commitments and Labour and the environment are so important.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: To pursue these goals I would be ready to make full use of the different instruments at our disposal through trade preferences through bilateral trade agreements through action at multilateral level for example and opening markets for environmental goods and services to help meet our international climate and environment commitments.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: If confirmed I also intend to work with you to renew our Generalized System of Preferences which offers preferential access to exports from developing and least developing countries. Its reform should ensure that it remains the most generous scheme of its kind in the world. While incentivizing our partners to move toward sustainable growth and development policies.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: The deeper focus on climate and sustainability in the incoming Commission reflects our citizens expectations. Therefore these values must be firmly built into our trade agenda. Mr. Chairman and members trade policy is one of the most dynamic areas of EU action. We have a full and important agenda at a critical moment for multilateralism and for a fragile global trading system.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: This parliament and in particular this committee has since the Lisbon Treaty become a decisive player in shaping that trade agenda. And I am committed to working closely with you to reinforce that partnership. Europe needs to be the global champion of fair sustainable and rules based trade. With your help I believe we can strengthen that leadership role. We can act and deliver results that show the European Union at its best.

SOUNDBITE (Original), Phil HOGAN, Commissioner-designate: Thank you.