Events

2015 EuDA Annual General Meeting Conference, at Stanhope Hotel Brussels’State Aid and Tied Aid’Different Approaches to Global Competition

Governments’ interventions in competitive markets impact on the functioning of these markets: they set the general rules of “unhindered and fair competition” and in some cases bend these rules to favour the one or the other national champion. Financial support provided by governments to companies is distorting competition and can take many forms. The conference will focus on two such approaches with opposite objectives and effects on the global dredging markets.

The competitive advantages developed by the European dredging companies to allow them to compete on the global markets and remain leaders in their trade include high added value specialised services, high productivity and high environmental friendliness when delivering resilient waterborne infrastructures. As far as large complex infrastructure projects are concerned, the other worldwide competitors cannot match the level of the European Dredgers’ services in quality and in price. In unbiased and open markets, Europeans have demonstrated their strong dominance with over 80% of the open world markets.

When some non-EU countries decide to bend the rules, they take measures that keep foreign competition off their domestic market and, additionally, they can also provide unfair advantages to their national companies competing outside their domestic market. One of the most commonly used schemes on non-domestic markets is Tied Aid, whereby large amounts of development aid are granted to a targeted country (usually a resource-rich developing country, non-signatory of the WTO Government Procurement Agreement) with the explicit condition of using exclusively the donor’s national contractors for the development works. The consequences are severe distortions in these markets or even temporary closure to any foreign competition (for as long as the donor’s aid lasts).

However, unfair competition practices are like coastal erosion: markets are eroded and lost at a steady pace. Left untackled in the long term, these practices can wear out even the most resilient of companies. This is why Europe has developed counter-schemes aiming at reducing competition distortions on global markets and reinforcing level playing field. One of the financial instruments used by Europeans to reduce distortions on some global markets is the State Aid Guidelines to Maritime Transport, which stopped the deflagging of European vessels and avoided the complete relocation of the maritime industries outside Europe.

The EuDA 2015 AGM Conference opened with an overview of the European State Aid Guidelines to Maritime Transport, selected Tied Aid cases were presented and then possible ways forward for the European Dredgers were looked into.

For the Conference detailed programme: click here.

For the Conference Participants’ List: click here.

For the speakers’ presentations see below:

Opening Address

• Mr Marc Stordiau
  EuDA Chairman

Moderation:

• Mr Filip Tuytschaever
  Founding Partner CONTRAST – European & Business Law

Speakers:

• Mr Henrik Mørch
  Head of Unit for State Aids to Transport – DG Competition EUROPEAN COMMISSION
  presenting “Overview of the State Aid Guidelines to Maritime Transport“.
• Mr Ulrich Paetzold
  Secretary General of the EUROPEAN CONSTRUCTION INDUSTRY FEDERATION – FIEC
  presenting “Examples of Threats in Europe“.
• Mr Paris Sansoglou
  Secretary General of the EUROPEAN DREDGING ASSOCIATION
  presenting “Examples of Threats around the World and What’s next for European Dredgers ?“.

For the Conference key messages: click here.