Neelie Kroes, member of the European Commission for Competition Policy spoke about 'Broadband rollout and competition policy – what role for public funding?' in Brussels at the ‘Bridging the Broadband Gap’ conference.
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China's T-shirt Exports in First Quarter 2007 Statistical Report
China's cotton T-shirt exports rebounded on quota markets in the first quarter this year with prices clearly declining. Unit values however remained far above their level in 2005, as reflected by our series of statistical tables. Sales soared to countries that did not reimpose limits. Overall sales slowed down over the first quarter, mainly due to lower demand from Japan. China's exports of cotton T-shirts began slowing down in the first quarter this year although shipments to the European Union and the United States rebounded. Exports rose 11% in value terms at US$1.25 billion after increasing 25% in the same period last year. Shipments were up 6% in volume terms after rising 21% in the first quarter of 2006.
Poor sales to Asia
The weak result was mainly due to poorer sales to Japan, by far the most important destination of Chinese T-shirts. Exports to Japan declined nearly 10% to US$300 million, from a 7% increase in the first quarter of 2006. Sales to Korea and Australia were also depressed at the start of 2007. By contrast, shipments to so-called quota countries are rebounding this year. Exports to the US market surged 211% to US$92 million after falling 65% in the first quarter 2006. Since Chinese T-shirts arriving at US ports were still under embargo in January 2006, year-on-year comparisons may be confusing. There was a strong rise in shipments, nevertheless.
Strong sales to Europe
The same jump may be observed with shipments to the European Union. Exports to Germany more than doubled in the first quarter to US$36 million, even rising 180% in volume terms. Shipments to the UK and Italy rose 37% and 22% respectively, from a sharp decline in the same period of 2006. Not surprisingly, the jump in direct sales to Europe and the United States depressed shipments through Hong Kong that no more rose over the period. Although rebounding, exports to quota countries remained below their level two years ago, when quantitative restrictions had just been eliminated on imports from China. By contrast, China's exports to countries which did not reapply quotas -or never imposed limits- reached much higher levels. Sales to Switzerland jumped by five times in only two years while shipments to Canada were up nearly 300%. Morocco is also becoming a significant market for Chinese T-Shirts with sales surging more than four times in two years.
Lower price levels?
Unit prices were overall stable in the first quarter.T-shirt prices fell to quota countries, however remaining far above their level two years ago.Unit prices of T-shirts shipped to the US market were still up 59% from the first quarter of 2005.Prices were still up 44% on the German market from the same period although dropping by 25% from last year.
EU opens door to hidden TV adverts
More frequent commercial breaks as well as product placements, where a sponsor's product is featured in the show, are to be a part of European television screens in the future, after EU culture ministers on Thursday (24 May) agreed to overhaul the bloc's 18-year-old television rules to fit the fast-developing market.
Textile/Clothing Import growth from major origins
China's textile and clothing sales were not affected by US and EU quotas in 2006, the WTO last week confirmed while releasing its preliminary data on global trade. Major trends in textile trade stayed unchanged to the benefit of poorest Asian countries such as Bangladesh, Cambodia and Vietnam. Share of processing trade is on the decline to the detriment of US and EU textile producers. Quotas that were reimposed on China's products had no radical effect on global textile and clothing trade, last week said the WTO (World Trade Organisation). While releasing a first look at last year's main trends in global trade, the Geneva's body said that "structural changes in world trade of textiles and clothing continued unabatedly." China's exports were not affected by US and EU limits that were set in 2005. China's shipments of textiles and clothing even rose 25% in US$ terms in 2006, compared with a 21% increase in the prior year. This is mainly due to a strong development of sales to other destinations than the United States and the European Union. EU and US quotas apparently limited the growth in textiles and apparel imports from China that were only up 15% and 10% in US$ terms, respectively. Imports of Chinese products by Canada only rose 22% at the same time, although Ottawa did not reimpose quotas.
Bangladesh, Cambodia, Vietnam, Indonesia
Although US and EU imports from China clearly decelerated, imports from their regional partners stagnated or even declined. EU imports from Morocco were up 3% while staying unchanged from Tunisia. US imports from CAFTA and the Dominican Republic were down 7%. Shipments from Sub-Saharan Africa fell 10%. By contrast, low-cost Asian countries did very well on both EU and US markets. Bangladesh benefited from a 22% jump in US textile and apparel imports from the country while EU imports were even up 34% from the same origin. European imports from Vietnam even surged 51% in US$ terms. Cambodia and Indonesia also took advantage of a strong rise in shipments to both EU and US markets.
Presenting the new Audiovisual Media Services without frontiers Directive: Frequently asked questions.
After a legislative process of only 18 months, political agreement has been reached between Parliament and Council on the new Audiovisual Media Services without frontiers (AVMS) Directive.
Why was a new Audiovisual Media Services without frontiers Directive needed?
Since the present Television without frontiers directive was first adopted in 1989 and then amended in 1997 there have been many changes: The convergence of technologies and services - traditional TV, internet TV, TV on mobile phones and other mobile devices, etc.; the expansion of fixed broadband, digital TV and 3G networks; the increase in pay-per-view TV, and the arrival of new delivery services such as video on demand (VOD) and peer-to-peer exchanges of audiovisual content; the blending of traditional and on-demand services; changing viewer habits where more and more people want audiovisual content to follow their time schedule and not the other way around; and new advertising methods, such as search-related ads on the internet or SMS ads on mobile phones. These all point to a clear need for regulation to keep pace with rapid technological and market developments if Europe’s audiovisual sector is to remain competitive.
The aim of the new AVMS Directive is to provide a modern pro-competitive framework for Europe’s providers of TV and TV-like services by, for example, giving more flexibility for financing audiovisual content by new forms of commercial communications. It will also create a level playing field for all companies that offer on-demand audiovisual media services to profit from Europe's internal market, irrespective of the technology used to deliver their services while continuing to ensure a high level of consumer (i.e.viewer) protection.
What are the main features of the new Directive?
The main elements are:
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a comprehensive framework that reduces the regulatory burden yet covers all audiovisual media services;
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modernised rules on television advertising that improve the financing of audiovisual content;
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new features such as an obligation to encourage media service providers to improve access for people with visual or hearing impairments.
Why have different rules for traditional broadcast and on-demand audiovisual media services?
Traditional TV broadcasting rules need to be updated to accommodate technological progress and market developments as well as new viewing habits. This includes modernising advertising and product placement rules where necessary.
By contrast, there is no justification for regulating audiovisual content supplied at the viewer’s request (”on demand content”), beyond safeguarding essential public interests such as protecting minors, encouraging cultural diversity, preventing incitement to hatred and basic consumer protection rules. The different degrees of regulation for broadcast versus on-demand content therefore reflect differences in user choice and control, and the likely impact on society.
The new directive also encourages co-regulatory regimes that are broadly accepted by stakeholders and provide effective enforcement.
How will the modernised Directive strengthen Europe’s content industry?
The “country of origin” principle has already helped Europe’s broadcasting industry to flourish since 1989. This will extend the benefits to new on-demand audiovisual services (such as video on-demand), so as to improve their prospects for commercial success. For such services, this principle will apply across Europe with a minimum of necessary harmonisation. This will create a level playing field for audiovisual media services in the EU and increase choice, diversity and investment in Europe's audiovisual media industry.
Technological progress, changes in the market and users' behaviour (increased choice and responsibility) also call for more flexibility regarding advertising rules while providing for strong consumer (i.e. viewer) protection.
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First, relaxing rules on inserting advertising in TV programmes and daily advertising limits, as well as being open to new forms of advertising (such as split- screen, virtual or interactive advertising), will benefit not only advertisers but the whole audiovisual industry in Europe, by strengthening their economic base.
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Second, providing a clear legal framework for product placement will secure new revenue for Europe’s audiovisual industry, help to boost Europe’s creative economy and reinforce cultural diversity. Product placement is a reality on European TV screens today, but operates essentially to the benefit of non-European content producers and without viewers being informed.
Why modernise the rules on television advertising?
The current rules were conceived in the 1980's, when audiences only had two or three general entertainment channels in each country. They can now choose between a wide range of channels and will tend to "zap" away from those that transmit too much advertising. Greater viewer choice and control calls for more flexible regulation. More flexibility also means that free-to-air channels can better flourish in a media landscape where there is increasing competition for advertising revenues. The Directive strikes a fair balance between limiting the amount of advertising, and the nature and timing of adverts. Advertising will remain restricted to 12 minutes in any given hour and films, current affairs programmes and news cannot be interrupted by adverts more than once for each period of 30 minutes. Only children's programmes over 30 minutes may be interrupted by one break in each 30-minute period during which time minors will also be protected from certain types of adverts which now also includes unhealthy or "junk food" advertising. The Directive increases consumer protection by extending the qualitative TV advertising rules to on-demand services.
Why have rules for product placement?
Product placement is not addressed as such by the old TVWF Directive, which includes the principle of separation and the prohibition of “surreptitious advertising” applied to programmes for which broadcasters are responsible. However, product placement is common practice in independently-produced works and feature films. In Europe, lack or unclear or differing rules on product placement have so far prevented audiovisual content producers from making use of this important source of financing, and clearly failed to protect consumers adequately. Consumers should have the right to know what kind of content they are watching.
Recent figures from countries that permit product placement suggest that clear rules should help the European audiovisual industry to become more competitive, especially compared with the USA. An independent study published in March 2007 found that global paid product placement grew 37% in 2006 and is forecast to grow 30% in 2007. TV Placements remain the dominant choice of brand marketeers, accounting for 71% of global spending.
What are the new rules on possible circumvention of stricter national measures?
The Audiovisual Media Services Directive contains a new procedure regarding broadcasters from other Member States circumventing stricter rules of the target Member State. The first stage of the procedure consists of dialogue between the Member States concerned on a "best endeavours" basis and should enable most difficulties to be solved at an early stage. Should this dialogue fail, a second, formal stage would begin, where the European Commission will play its role according to the new procedure set in place, which is to examine the compatibility of the Member State's proposed measures with Community law, including all relevant secondary legislation and Court of Justice rulings.
How will cultural diversity be promoted in the new Directive?
The new Directive reaffirms the commitment of the European Union to promoting European audiovisual works through a provision stating that Member States shall ensure that media service providers, where applicable and by appropriate means, promote the production of, and access, to European works.
Also the clearer product placement rules proposed by the Commission should help stimulate funding for audiovisual production in Europe, thereby strengthening Europe’s film industry. They permit product placement, within an appropriate legal framework that safeguards viewers’ essential interests such as the right to be informed and exclusion of product placement from news, current affairs and children programmes.
Will European values still be safeguarded?
The new Directive reaffirms the common policy objectives which have been at the heart of Europe's audiovisual policy since 1989. It requires Member States to take appropriate measures to protect minors, to promote European works and independent audiovisual productions, and to prohibit content that would incite religious or racial hatred.
It also explicitly encourages industry self-regulation and co-regulation (see IP/07/138) and underlines the need for independence of national media regulators. Such independence is considered essential to democracy and crucial for ensuring media pluralism (see IP/07/52).
When will the new Directive take effect?
The Directive is expected to enter into force before the end of 2007. Member States will be given 24 months to transpose the new provisions into national law, so that the modernised legal framework for audiovisual business will fully apply in 2009.
EU threatens huge costs for net traders
SCOTTISH businesses trading online within the European Union face "huge costs and disruption" if draft regulation in the European Parliament is passed into law.
Speaking on a lobbying visit to MEPs and EU officials in Brussels yesterday, Andy Willox, policy convener of the Federation of Small Business Scotland, said that the boost given to Scotland's trade with other EU countries by e-commerce, especially in the tourism and food and drink sectors, would be jeopardised by a proposed "complete reversal" in the application of consumer law.
No Deal on Opening EU Postal Market
A 2009 deadline for liberalizing mail delivery across the European Union looked in danger amid proposals Thursday to allow EU nations to open their postal markets at their own speed.
Consumers rule the internet, EU advertisers told
The consumer is the boss on the web and about to end fifty years of rule by mass media, TV, publishers and phone operators.
EU to warn China on trade surplus
EU trade commissioner Peter Mandelson is due to warn Chinese officials about the "intolerable" trend of the country's rising exports to Europe, which is creating pressure for new protectionist measures to be introduced by Brussels.
Dialogue on small and medium seized enterprises in China and in the EU
SMEs in China, such as the Chinese economy in general, are booming: the 'only' 42 Million SMEs produce 60% of the GDP and 50% of fiscal revenue. They create 75% of all new jobs and 65% of patents. However, the SME definition in China differs a great deal from the EU one: much larger enterprises are considered SMEs in China than in Europe. In the construction sector, for instance, a company in China with less than 3.000 employees is considered an SME whereas in the EU an SME can employ a maximum of 250 employees. However, an SME does not have to be an independent company in China – as according to the EU definition. These different SME definitions, but also SME policies and support programmes in the EU and in China, and SMEs problems with access to markets were on the agenda of the first meeting of the EU - China SME dialogue, held on 18th June in Brussels.
Proposal to align classification, labelling and packaging of chemicals to UN standards
The European Commission has proposed to align the current EU system of classification of chemical substances and mixtures to the United Nations Globally Harmonised System (GHS). The internationally accepted harmonised classification criteria and labelling elements will be integrated in new EU legislation, replacing the current law on the classification, labelling and packaging of chemical substances and mixtures. The proposal is an important step on the Community's part towards global efforts to enhance the protection of human health and the environment from the effects of dangerous chemicals. The harmonisation of requirements at global level will give trade and competitiveness a boost and includes new pictograms. The proposed regulation will complement the new REACH Regulation on the registration, evaluation, authorisation and restriction of chemicals. The proposal will now be discussed in the European Parliament and in the Council.
Brussels heading for clash over EU-wide tax base
EU tax commissioner Laszlo Kovacs is set to cause controversy today, as he forges ahead with an ambitious project to create a single EU company tax base, something which is expected to prompt a clash within the college of 27 commissioners as well as with EU capitals.
EU Lawmakers OK Commercial Piracy Fines
EU lawmakers voted for legislation that would set prison sentences and fines for large-scale commercial piracy, but exempt patents and copying carried out for personal use.
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Textile/Clothing Import growth from major origins
No radical change in Global Textile Trade, WTO reports
China's textile and clothing sales were not affected by US and EU quotas in 2006, the WTO last week confirmed while releasing its preliminary data on global trade. Major trends in textile trade stayed unchanged to the benefit of poorest Asian countries such as Bangladesh, Cambodia and Vietnam. Share of processing trade is on the decline to the detriment of US and EU textile producers. Quotas that were reimposed on China's products had no radical effect on global textile and clothing trade, last week said the WTO (World Trade Organisation).
While releasing a first look at last year's main trends in global trade, the Geneva's body said that "structural changes in world trade of textiles and clothing continued unabatedly."
China's exports were not affected by US and EU limits that were set in 2005. China's shipments of textiles and clothing even rose 25% in US$ terms in 2006, compared with a 21% increase in the prior year. This is mainly due to a strong development of sales to other destinations than the United States and the European Union.
EU and US quotas apparently limited the growth in textiles and apparel imports from China that were only up 15% and 10% in US$ terms, respectively. Imports of Chinese products by Canada only rose 22% at the same time, although Ottawa did not reimpose quotas.
June 2007
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