There is a big advantage in making conclusive political measures. The actual transport industry is an important part of the economy: within the European Union, it employs directly around 10 million citizens and represents the source of around 5% of the GDP. The Union and the governments of member states have to offer to manufactures and industry clear information on the future political measures (relying mostly on market mechanisms) so that they could plan investments. The EU coherence is therefore strategic.
During a meeting in July, the representatives of the Rail Forum Europe, among which representatives of the railway industry, underlined the need for a fair level of competition in the world for the suppliers of railway products. To that end, the European railway industry demanded the European Commission to take advantage of the opportunity of negotiations within the EU Free Trade Agreement (FTA) with Japan and the US and to demand the complete liberalisation of the markets in the two countries.
The lack of a free competition level between the European Union, Japan and the US, as regards public procurement, has affected the railway market for a rather long period of time being contested by the European railway industry for a long time.
Philippe Citroën, Director General of UNIFE, highlighted the potential economic benefits from EU’s successful negotiations with Japan and the US. He pointed out that the global market situation concerning the EU, Japan and the US is still far from being a level playing field: while the European market is transparent as per EU procurement rules and open to competition, Japan is almost entirely closed to foreign competitors and the US is open to a limited extent, despite the Buy America requirements.
In Japan, most non-Japanese suppliers are, de facto, excluded from any competition for the supply of rolling stock and other railway equipment by the operational safety clause and other complex and restrictive procedures.
“The EU should further encourage a comparable and effective opening of global rail markets, also through technical assistance of the European Railway Agency. UNIFE is committed to support and work with the Commission in these important negotiations”, he added.
During the same meeting, Jojo Alexander, Alstom Transport Vice President Strategy and External Development listed the main issues faced by Alstom in Japan and the US. “In the ongoing negotiations with Japan, Alstom asks for the clear, predictable and non-discriminatory application of the operational safety clause, broader public procurement coverage, including the 3 Japan Railways and more transparent public procurement procedures. Japan has to demonstrate progress in one year’s time with very concrete measures”, he said.
As far as the US is concerned the objective should be to increase access to public procurement on a reciprocal basis, remove any “buy local” restrictions or lowered thresholds and harmonise rail regulation and standards.
Therefore, Alstom , one of the most important European manufacturers, welcomes the launch of the negotiations with US and Japan. The final goal is to get comparable and effective market access in Japan and the US”, he concluded.
Brian Simpson, Rail Forum Europe President and Chairman of the European Parliament’s Transport Committee, commented that the lack of a global level playing field is indeed a major issue for the European rail industry. “In order to address this issue we need the EU to play hard in negotiations with Japan and the US”, he concluded.
If concrete measures are not taken, the economic growth of third countries and the decline of the European market, as well as the lack of reciprocity on the global market could cause Europe to lose its current leader position.
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