Competitiveness and Trade

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competitiveness and trade
16 Feb.2017 ,

Joint Declaration for an ambitious EU industrial strategy

The declaration is signed by 125 Associations

Europe is the cradle of the manufacturing industry and has been at the forefront of industrial revolutions and technological innovations. The industry directly employs over 34 million people across all Member States, in supply chains comprising hundreds of thousands of SMEs and larger suppliers. It also indirectly accounts for millions of additional jobs in related sectors.

The European manufacturing industry has tremendous capacity for research and innovation, boasts a skilled workforce and has earned a global reputation for quality and sustainability. What it now needs is the swift and determined support of the European institutions and the Member States to create more jobs and growth in Europe.

The time has come to raise the alarm about the considerable challenges that we are all facing. Between 2000 and 2014, the share of manufacturing in total EU output fell from 18.8% to 15.3%, while 3.5 million manufacturing jobs were lost between 2008 and 2014. Meanwhile, countries around the world are putting industry at the very top of their political agendas. The “Make in India” strategy aims to ensure India is “the next manufacturing destination” and “Made in China 2025” seeks to turn China into the “leading manufacturing power”. The recent US shift towards “America First” will inevitably have a strong impact on their industrial policy.

At the beginning of his mandate, European Commission President Jean-Claude Juncker identified the reindustrialisation of Europe as one of his top priorities and confirmed the objective of increasing the share of industry in the European GDP to 20% by 2020. As we approach the preparation of the next Multiannual Financial Framework, it is vital for the European Commission to act and help the EU remain a competitive global industrial power playing in a fairer world market.

Therefore we, the European manufacturing industry, representing a diverse range of sectors, call on the European Commission to:

  • reaffirm its commitment to reaching the target of 20% of GDP from industry, with an ambitious and realistic timeline;
  • adopt an Action Plan to tackle the challenges that the industrial sectors are facing, in the framework of a Communication that would include concrete steps and milestones; and
  • commit to implement this Action Plan in a timely manner and regularly report on progress.

Member States and the European Parliament clearly stated their full support for a strong European industrial strategy via the European Council Conclusions calling to strengthen and modernise the EU’s industrial base (15 December 2016) and the Parliament Resolution on the need for a European reindustrialisation policy (5 October 2016).

We, the Signatories of this Joint Declaration, are ready to step up our cooperation with the European Commission, the European Parliament and the Competitiveness Council to define and implement this ambitious and coordinated European industrial strategy that will help safeguard the world leadership of European manufacturers and jobs in Europe.

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28 Nov.2016

Infographic: Cost of EU regulations on European paper industry

A European Commission study on our sector has revealed that over the past 10 years, direct regulatory costs have more than tripled. On average, direct and ETS-related indirect regulatory costs have absorbed more than 40% of the industry’s annual profitability since 2004.

You can download here an easy-to-use infographic demonstrating the findings of the study . 

Full information on the study can be consulted on our website here

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24 Nov.2016 ,

Tripling of direct costs on the European paper industry impedes Europe’s investment potential

"The time has come for a regulatory reset for the paper industry bringing investment back to Europe” says Sylvain Lhôte, CEPI’s Director General

A European Commission real-time study on our sector has revealed that over the past 10 years, direct regulatory costs have more than tripled. On average, direct and ETS-related indirect regulatory costs have absorbed more than 40% of the industry’s annual profitability since 2004.

While the paper industry is engaging in major transformation of its production base to capture both growth opportunities and dramatically reduce its CO2 emissions, such regulatory burden diminishes our investment capability and deters international capital allocation into Europe.

The cumulative cost impact assessment performed for the European Commission by Technopolis reveals the full scale of regulatory costs in the fields of climate, energy and environment policies (2/3 of alone which arise from climate change & energy regulations). Despite EU leader’s pledge for smarter regulation and investment in industry, these costs have not subsided in the period since 2004. Planned regulation for biomass-based large combustion plants, ETS and energy-related policies may indeed widen the regulatory cost burden.

In order to prevent the continued erosion of industry’s competitiveness, the EU and its member states must rapidly restore the conditions necessary to fuel transformative investments. Together with the European Commission we share a common agenda on climate change and sustainability, as evidenced by our 2050 vision to decarbonise by 80% and create 50% added-value. We envision ourselves as leading the transition to a circular, low carbon bioeconomy. We therefore ask the Commission and EU member states to act decisively and put back climate, energy & environmental policies on a pro-investment track.

The full text of the study is available here.

Below you will find the study slipt into several main parts.

(i) executive summary

(ii) methodology

(iii) legislation overview

(iv) results for pulp & paper sector

(v)  expected future costs towards 2030

You may also check out our easy-to-use infographic that breaks down the study's key findings.

For more information, please contact Bernard Lombard at b.lombard@cepi.org or by phone at (+32) 2 627 49 22
 

Note to the Editor


Session at European Paper Week. A discussion of the study took place on 24 November at European Paper Week at a dedicated session “EU Regulations: How heavy is the financial burden for our industry?” together with Technopolis and other key thought leaders.

The session's presentations are available below:

CEPI

Technopolis

Projected timeline: CEPI will continue to remain at the forefront of discussion on smart regulation & industrial policy. Building on our activity at European Paper Week we will continue together with our national members to raise the issue with our stakeholders throughout November and December and into 2017.

CEPI aisbl - The Confederation of European Paper Industries
The Confederation of European Paper Industries (CEPI) is a Brussels-based non-profit organisation regrouping the European pulp and paper industry and championing the industry’s achievements and the benefits of its products. Through its 18 member countries (17 European Union members plus Norway) CEPI represents some 505 pulp, paper and board producing companies across Europe, ranging from small and medium sized companies to multi-nationals, and 920 paper mills. Together they represent 23% of world production.

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10 Oct.2016 ,

Closing the gaps on the circular economy in Europe? Export data reveals a widening rift

Closing the gaps on the circular economy in Europe? Export data reveals a widening rift.

Market data has shed light on the creeping trend to export paper for recycling outside of Europe rather than effectively recycling it in Europe in sustainable manner. The latest reports demonstrate a 7.1 % increase in export in 2015 which is equivalent to as much as 679,000 tonnes of paper sent for recycling outside Europe, a worrying development if not put in reverse. Annually around 10m tonnes of paper for recycling leave Europe.

It has been estimated that keeping this material stream in Europe to feed our industry could create up to 140,000 jobs. The increasing export of valuable paper for recycling presents a clear gap in Europe’s circular economy ambitions. This shows that effective regulation is needed to ensure recycling is done both inside and outside Europe at equivalent environmental standards and that we effectively measure what is recycled in Europe and avoid encouraging alternative means for meeting objectives under the circular economy package.

Let’s keep paper recycled in Europe for Europe to truly make the circular economy a reality.

For a more in-depth insight into key statistics on the European pulp and paper industry, check out CEPI’s statistical booklet here or contact Ariane Crevecoeur at a.crevecoeur@cepi.org or by phone at (+32) 2 627 49 35

For more information on paper and circular economy please contact Ulrich Leberle at u.leberle@cepi.org or by phone at (+32) 627 49 11

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31 May.2016

Joint CEPI - IndustriAll position “Free trade and fair competition for growth and jobs in Europe”

In spite of the difficult economic context and an increased competition in the global markets, the European pulp, paper and board industry remains a world leader and a net exporter as well as the provider of 1.5 million direct and indirect jobs in Europe.


EU markets have been fully open since January 2004, unlike some competitors in their home countries. 40% of EU paper and board exports face tariff barriers! The sector is seeking a level playing field for both its products and its raw materials through multilateral and bilateral negotiations and high level talks with EU trading partners. Free access to pulp and paper and board foreign markets, but also raw materials and energy is a must.


Fair competition is also vital to the European pulp, paper and board industry and its workers, who need to see unfair trade practices such as dumping and subsidies, protectionism and discriminatory measures fought. A strong set of trade defence tools is crucial to ensure, when necessary, the rapid implementation of efficient trade defence measures and restore a level playing field for our industry and workers. Strong support from the EU Commission is required in order to secure international trade rules and WTO obligations as well as bilateral agreements are well implemented by all EU trading partners and WTO members.


The opening of the foreign markets has to be achieved primarily through multilateral negotiations in WTO, by reflecting the recent developments that have seen emerging countries like China, Brazil or Indonesia turning into global industrial leaders.


As multilateral agreements require long negotiations and sustained efforts, a better access to foreign markets, raw materials and energy markets should be sought through the conclusion of ambitious bilateral trade agreement negotiations with a view to supporting the re-industrialisation of Europe and to promote the principles of fair trade. These negotiations should contribute to the suppression of tariff barriers as well as non-tariff barriers, and aim at regulatory convergence.


Plurilateral negotiations should also be encouraged as they can offer a pragmatic way to further liberalise trade while achieving other goals, such as the completion of ambitious climate change and environment protection targets. The European Social Partners in the pulp, paper and board sector are of the opinion that, due to their sustainable nature, all pulp, paper and board grades should be considered as environmental goods and therefore fully included in the environmental goods list currently being negotiated.


Pulp, paper and board are based on renewable raw materials originating from sustainable sources and are recyclable. They contribute directly and indirectly to environmental protection, climate action, green growth and sustainable development. They are manufactured by an industry that has substantially reduced its footprint on the environment, while reaching high social standards.


At the core of the bio economy, is the production of not only the original bio-based product - paper and board, but also new and innovative products that can substitute for fossil fuel-based products through the efficient use of renewable raw materials.


Allowing the European pulp, paper and board industry to compete on a level playing field at global level should be the aim of EU trade strategy as it is the best way to secure EU’s competitiveness as well as investors’ long-term commitment to Europe and create jobs and growth!

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