39th IATTO FORUM – EXPORT SUMMIT II

1. 39th IATTO FORUM – EXPORT SUMMIT II INSPIRING TRADE GLOBALLY Margaritis Schinas Director, Head of DG ECFIN Athens Office

2. Reinventing Growth through Exports and Trade Facilitation: • Pushing the Reset Button

3. A. The big picture: recent trends in international trade policy and lessons to be drawn • More openness in international trade but certain critical barriers still remain • bilateralism and regional free trade agreements may bring easily attainable outcomes, multilateralism of trade liberalization produces greater benefits; clear shift to bilateralism

4. A. The big picture: recent trends in international trade policy and lessons to be drawn • Non-tariff barriers increase when tariffs decrease; used to make up for now lower tariffs • Proliferation of preferential trade agreements (more than 400, all WTO Members have at least one) created a "spaghetti bowl";

5. Proliferation of preferential trade agreements (more than 400, all WTO Members have at least one) created a "spaghetti bowl";

6. A. The big picture: recent trends in international trade policy and lessons to be drawn • Relationship between trade liberalization and poverty eradication : room for optimism, but ultimate outcome is multi-factor • Key for growth : reform and complementary policies (ie opening trade in services, investment liberalization, competition policy) ; pace matters

7. B. The case of Greece : regaining competitiveness, restoring inclusive export growth ; the time is now ! • Greece is quickly regaining cost competitiveness after the significant losses in the past decade(i.e. ULC +21,1% compared to Euro area average in 1995 – 2010) • By 2014, Greece is projected to have regained its competitiveness position relative to the Euro area.

8. B. The case of Greece : regaining competitiveness, restoring inclusive export growth ; the time is now ! • On the back of these cost competitiveness gains, export growth has started to pick up (current account deficit from +18% - 2008 to -4% - 2012) from a low base (GR exports of goods and services 27% of GDP, compared to EU's 45% - 2012).

9. B. The case of Greece : regaining competitiveness, restoring inclusive export growth ; the time is now ! • Government has made improving export performance a key policy priority. Untapped potential: • Unique geographical position • Educated youth • Motivated entrepreneurs • Quality raw material • Specific know-low

10. B. The case of Greece : regaining competitiveness, restoring inclusive export growth ; the time is now ! • Export performance will also depend on addressing other structural, non-cost impediments : • Boosting scale of production (200 companies represent 80% of the total export value) • Poor track-record of attracting foreign direct investment (FDI) – some success stories but more efforts needed – link to privatisation • Cutting down on high administrative burden and simplifying procedures could lead to +1,7% GDP and create 80.000 jobs • Active promotion of GR exports abroad - the quest for a common strategy

11. Providing technical assistance: • to do what, how, when and at what cost ? • National export Plan (2011) • Detailed Action Plans • Exports facilitation (2012) • Exports promotion (2013) • From diagnosis to action

12. Strategy and tactics: WHO DOES WHAT • EU and international organisations • Opening of markets / Commitment to support & advice / best practice • Gr Government • Champion the cause of business • Simplify national requirements for GR traders • Suppress supporting documents in customs for every single export clearance • Electronic and cash-free environment in customs offices • Actively promote exports (reorganisation of export agencies, economic diplomacy)

13. Strategy and tactics: WHO DOES WHAT • Associations and business • Overcome sectorial / geographical differences • Concentrate resources and lobbying capacities

14. Strategy and tactics • A story to remember