News Release

STATEMENT OF EU CONSUMER PROTECTION COMMISSIONER MEGLENA KUNEVA FOLLOWING MEETING WITH CHINESE AUTHORITIES ON PRODUCT SAFETY

Beijing, 24th July 2007

INTRODUCTION

"Over the last two days I have been in China and have engaged the Chinese authorities in a frank and constructive dialogue.

"I have come to China with one very clear objective in mind. To answer the questions people are asking about product safety, about consumer goods from China. We need to face up to those questions. We need answers.

"There are three key messages I have repeated since I arrived:

1. THERE CAN BE NO COMPROMISE ON CONSUMER SAFETY

"This is about European values, this is about high standards, this is about what people expect from the European Union.

2. WE BELIEVE IN OPEN MARKETS AND FAIR COMPETITION

"Open markets are built on consumer confidence. Trust in the market is essential. And there will be no double standards – all goods coming on to the European market will treated the same.

3. WE WANT TO WORK IN PARTNERSHIP WITH THE CHINESE

"We want to solve problems together. Europe is China’s No. 1 export market and China’s No.1 trade partner. It is in China and the European Union’s mutual interest to boost consumer confidence in the market.

"Now let me say something more specific about my purpose here, and what I have achieved.

4. MORE WORK NEEDS TO BE DONE

"My message has been clear – that both on the side of the European Union and on the side of the Chinese Authorities, more work needs to be done.

"The figures we have from our EU-wide Rapid Alert System (RAPEX) give cause for concern. We take them very seriously.

"The RAPEX annual report in 2006 shows that out of all the alerts from [EU] Member States for dangerous consumer goods on the European market – 50% of alerts are for goods of Chinese origin.

"We must keep a sense of perspective. The large number of alerts is a function of the massive export flows in traded goods from China to the EU. These amounted to 192 billion euro in 2006, and are growing at around 20% a year.

"But 50% of alerts from goods of Chinese origin is too high.

5. WE HAVE MADE PROGRESS – WE HAVE DECIDED TO STEP UP PREVENTION, REACTION AND ENFORCEMENT

"Since 2006 we have a new framework (MoU: Memorandum of Understanding) in place to work with the Chinese on consumer product safety. In particular we have since 2006 a new EU-CHINA RAPEX system which gives the Chinese authorities privileged access to our system.

"The main aim of my visit is to bring that agreement to life.

"Most importantly, the Chinese Minister has agreed that a detailed report on prevention and follow-up actions to European alerts will be submitted to the European Commission in October. This report will feed into the preparations for the EU-China leaders Summit in November when President Barroso will meet with the Chinese Premier Wen Jiabao.

"The October report will set out clearly what the Chinese authorities have done on market surveillance and their follow-up actions to track down European alert notifications at source. It is important that we work towards a trend of 100% follow-up of European alert notifications.

"This October report is part of a broader commitment on the part of the Chinese Authorities to provide more detailed regular quarterly reporting on the follow-up actions on alerts from the European market.

"More broadly, we have agreed to intensify our co-operation on the EU China Rapid Alert system between now and the summit of EU-China leaders in November this year.

"We have agreed to identify senior officials to co-operate closely at a high level to take forwards this work.

"We have also agreed to step up the training seminars, exchange of officials and technical assistance which have been put in place under the MoU.

"From the European side we will continue to provide the Chinese with the level of specific information they need to track down and investigate alerts of dangerous products.

"Overall I felt there was a very positive and results-orientated approach in all my meetings with the Authorities.

"In addition, I will be doing a stocktaking over the coming months – and I intend to report back to my colleagues in the College [European Commissioners]. I hope also this stocktaking will inform the preparations for the November Summit. The picture is still not complete. I want to review the instruments we have and the working methods and co-operation to see if we have all the mechanisms in place to build consumer confidence.

6. MY VISIT HERE IS ABOUT DELIVERY – ABOUT RESULTS

"There is a lot at stake. I believe following my meetings that the Chinese Authorities are taking these issues more seriously and that we can make progress.

"But finally this is about delivery. Goodwill must be followed by actions. This visit is about co-operation not confrontation. It is in the spirit of partnership.

"I take my duties as a Consumer Commissioner very seriously. Often, in fact, I am called a consumer watchdog. Let me make it very clear.

"I will watch very closely developments on this market – and I will judge success only by effects for consumers on the ground.

"Thank you very much for your interest.

"Now I will be very happy to take any questions."

Contact Helen Kearns: 011-322-298-7638.

For further information on the EU and China, please visit:
http://www.eurunion.org/newsweb/HotTopics/Asia.htm#China  .