SPEECH BY THE HON. EDDIE FENECH ADAMI, PRIME MINISTER, ON THE OCCASION OF THE INAUGURATION OF THE 44TH EDITION OF THE INTERNATIONAL FAIR OF MALTA – NAXXAR

There is something fresh and new in this year’s edition of the foremost annual celebration of commerce, the International Fair of Malta. Feast enthusiasts in our parishes all delight in unveiling something new for their annual village celebrations. This aspiration also extends to the International Fair of Malta. This year’s edition of the Fair brings with it a sense of purpose and achievement, underscored by the fact that Malta, in the course of its negotiations with the European Union, has reached agreement on the key aspects of free trade that will give us access to the wide commercial network that characterises the Union.

During today’s event dedicated to business and commerce, I am sure that I have no need to promote the concept and practice of free trade. I am convinced that all those present, in some form or other, appreciate its value. Experience also tells us that each time we have increased our exposure to the open markets, we secured many of the advantages necessary for sustainable economic growth and employment opportunities.

In this context, it is therefore highly encouraging to see that we have managed to reach agreement with the European Union on many of the key aspects of free trade, particularly since this process involved discussion with the main organisations involved in this sector, who carefully considered the conditions which would underpin this agreement. Given this achievement, it now no longer makes sense for one to talk about a free trade area between Malta and Europe as an abstract ideal. A sign-posted path towards this goal has been mapped out and we must not lose our way. We must not relinquish the sense of purpose and direction that we regained two years ago. We cannot afford to venture into the tempestuous seas of the global economy without any anchor to steady us, or compass to guide us.

The agreement we have reached with the European Union during our negotiations on free trade will not only benefit the business community, but will also carry advantages for the consumer. This will also ensure a wider choice of quality products and services for consumers at better prices.

When we accept commitments required by the European Union, we do this only because a close evaluation of the given situation demonstrates that, on balance, Malta is set to benefit. Perhaps, if we were not spurred by preparations for accession, it may have taken longer to introduce measures, the implementation of which requires a great determination and discipline, but which will result in a tangible improvement to our quality of life.

An example of this are the recent changes we have experienced in the telecommunications sector, where we phased out monopolies in line with European norms and standards. The result is lower prices and improved quality of service. Today, over one hundred thousand people make regular use of a mobile telephone. Of course, this is of primary benefit to the service providers in this sector, however it has also unleashed a popular and accessible new form of communication for the Maltese people, and as such, has contributed to their general quality of life. This is an indication of the advantages that can be secured even in the early stages of our path towards full membership of the European Union, as well as of the bright prospects it augurs for our future and that of our children.

The sustained improvement of our quality of life is the key value that has steered the formulation of the agreement we have managed to secure with the European Union on free trade.

Our sense of achievement does not lie only in the fact that we reached this agreement so early on in our negotiations with the European Union, it also stems from the fact that we secured the right to contain the influx of goods and services into our country in circumstances where we feel they may have a negative impact on certain sectors. These are:

public health;

public security;

consumer protection;

environment protection;

public morality.

In this way, the agreement we have reached with the European Union contains the necessary safeguards against many of the risks associated with Free Trade.

Earlier we mentioned in passing how, in the global picture, it is to our advantage that we form part of Europe, since this means that we will have a say in any commerce-related decisions taken by one of the most powerful trading blocs in the world.

There are those members of the business community, particularly those involved in small and medium-sized enterprises, who fear that free trade will imperil their development. This is not the case. Again, the facts dispute this fear. If in Malta, ninety percent of Maltese enterprises are classified as ‘small’, ninety-nine percent of European businesses are also classified as such. It is therefore clear that free trade as practiced within the European Union has not stifled small businesses, rather its appears to have boosted their growth. The fear of Europe in this regard, therefore, is one that is not founded on the reality currently being experienced by small businesses within the Union’s borders.

Of course, there are sectors of our local industry which need to be better prepared to compete effectively in the open meeting. These need to be restructured, with the appropriate investment in technology. I know that may enterprises have already embarked on this course.

All of the above also applies to agricultural products, regarding which there are ongoing discussions and on which certain special arrangements may be made.

There is already a strong element of dialogue between candidate countries and Member States. The idea is that certain policies and directions will, even at this stage, be complementary. Through such co-ordinated participation in the international debate on commerce, we can reinforce our interests in increased transparency and continuity in the commercial sphere.

Europe is not the be all and end all for Maltese commerce, but there is no denying that it is of central importance to its continued development. In the main, our commercial transactions are with Europe, and this trend is increasing. However, with the onset of globalisation, developments in other parts of the world also have an impact. In these circumstances, it is clear that closer integration with Europe is beneficial.

Ours is the first generation of a globalised world. Before us lies a future which, on the one hand, seems to offer immense opportunities, but which also has the potential to overcome those who may not be prepared for it. This revolution brings with it great changes, and no-one can predict precisely where this upheaval will lead. It is normal for one to feel uncertain in the face of change on such a scale. Individuals may feel that their decision-making power is being diminished, and may fear that the authority of those organisations which they used to trust to take the right decisions on their behalf is also being eroded. Former norms that used to regulate our economic activity may also no longer apply. Instead we need to introduce new systems which ensure that we ride the wave of globalisation in such a way that the future development and progress of our society is assured.