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Trade reciprocity EU battleground16th of October 2012
EU plans to introduce new trade reciprocity rules that could block foreign companies from European contracts will be a battleground as member states debate a new industrial policy initiative.
A European Commission communication on industrial policy appears to harden language towards the EU's foreign trading partners.
The policy paper refers to the “disturbing tendency to resort to protectionist measures and discriminatory practices” amongst competing trading nations, and singles out Brazil, Russia, India and China (the so-called BRICs).
It says that the Commission will push for a trade agenda “in a spirit of reciprocity and mutual benefit as well as a comprehensive enforcement agenda”.
In March the EU executive tabled a public procurement initiative that proposed blocking non-EU companies from bidding for government contracts if their home countries do not grant the same access to their own public procurement markets.