Faced with the ever-increasing opposition within the public to the free trade agreements and unfair competition carried out by some of the EU’s trade partners, EU28 leaders will attempt to provide a response during the European Council on Thursday 20 and Friday 21 October. This will include them providing guidelines that will help to make the EU’s trade policy more robust. The aim is also to help reach an agreement by the end of 2016 on the modernisation of trade defence instruments (TDI).
The president of the European Council stated in his letter of invitation to the EU28 that "trade is a powerful engine for jobs, growth and better living standards. Yet the benefits of trade are being questioned. I am convinced that together we can deliver a trade policy that is fit for today's concerns and tomorrow's challenges. But ultimately it hinges on our ability to adequately protect ourselves, and our citizens, when unfair practices arise. Because for trade to be free, it needs to be fair".
One source close to Tusk informed EUROPE on Tuesday 18 October that we "need to review consensus on EU trade policy. There is a lot of ideology: fight against free traders and more protectionist countries. There's growing resistance to ongoing negotiations. The solution is to regain trust. In the first place by taking the interests of people into account".
This same source said that it was therefore necessary to "find a consensus this year on the ability for the EU to use instruments to defend legitimate EU interests against unfair practices. The file is blocked in the Council at the level of ministers. Tusk's intention is to elevate the discussion to leaders". According to the final draft of the European Council conclusions, the EU28 is expected to affirm that "EU trade interests include fully defending and promoting social, environmental and consumer standards that are central in the European way of life as well as the right of governments to regulate" "…the EU will continue to address citizens' concerns, and to assist member states in accompanying the changes that come with a fast-moving globalised world”, the draft text adds.
In this context, the European Council will underline the need to respond to unfair trade practices in a way that is "efficient and robust" and by using the EU’s TDI, which are "effective" in tackling the global challenges, such as overcapacity in the steel sector. The draft text emphasises that "this requires an urgent and balanced agreement on the modernisation of trade defence instruments, including on the lesser duty rule".
The European Council is also expected to officially take note, in this respect, of the communication adopted by the Commission on Wednesday 19 October, urging the EU28 to reach an agreement on the draft modernisation of the TDI in an effort to help them manoeuvre more effectively (see other article).
A French diplomatic source referred to the "strong collaboration" between France and Germany in this goal and explained "the draft modernisation of the TDI has been blocked for a long time due to the lack of a qualified majority. There is now an opportunity in this respect and the EU must provide credible and powerful instruments to protect itself from unfair trade. It is possible that we conclude matters by the end of the year".
It is also expected that EU28 leaders approve the decision on the signing of the CETA. It is hoped that this will take place at the EU-Canada summit on 27 October, if Belgium approves the draft Council of the EU decision to sign this agreement. This approval still needs to be given by several Belgian federal entities for granting powers to the Belgian federal government (see other article).
On Tuesday, Tusk said that "we have a special responsibility regarding the agreement with Canada. There is still work to be done, but I hope we will find a way forward".
Finally, the European Council is expected to define the way forward in the free-trade agreement negotiations with the US (TTIP) and Japan.
According to the draft conclusions, the European Council is expected to call on the Commission to actively carry out negotiations with Japan with a view to reaching a political agreement by the end of the year. It will also be necessary to confirm the EU’s resolution to conclude as soon as possible an ambitious, balanced and comprehensive TTIP. (Original version in French by Emmanuel Hagry, Mathieu Bion and Sophie Petitjean)