During a debate with Trade Commissioner Cecilia Malmström and representatives of the WTO, UNCTAD, IMF and OECD on Wednesday 9 November, the Socialist and Democrat Group (S&D) at the European Parliament unveiled its "progressive principles" for ensuring that trade deals negotiated by the EU are inclusive and contribute to sustainable development.
"Trade needs strong rules to go alongside market-opening. Modern trade agreements have the potential to set these rules, and the EU should therefore be using these deals to promote high social and environmental standards across the globe", said David Martin (the United Kingdom). "One in seven jobs in Europe now depend on exports to the rest of the world, and global markets have been essential for EU firms and their workers in a time of recession at home. However, it is also clear that under-regulated globalisation has left many behind, leading to a popular backlash and renewed calls for protectionism", he explained, adding: "Now is the time to rethink and re-shape EU trade policy for the future. Now is the time to reclaim trade as a public good".
As far as the S&D is concerned, the first objective of trade agreements should be to benefit the widest possible range of citizens. Trade deals should contribute to sustainable economic growth and jobs in the EU and in partner countries.
As well as goods and services, the EU should export its values, in particular in terms of labour, social and environmental standards. A trade and sustainable development chapter including the ILO’s core labour rights and corporate social responsibility provisions must be included in all EU trade agreements and such provisions must be enforceable.
Negotiations should be carried out as far as possible in an open and transparent manner. The Council must publish all new and previously adopted negotiating mandates automatically, and the policy-making process should be based on meaningful dialogue with civil society, trade unions and the ILO.
Those disadvantaged by trade opening should be properly compensated. The S&D says this includes helping workers adapt to change, and improving support for those who lose their jobs as a result of foreign competition produced by globalisation. It says the Commission should provide more complete impact assessments, evaluate and update policy tools like the European Globalisation Adjustment Fund (EGF) or consider setting up a system similar to the US Trade Adjustment Assistance.
The S&D recommends that each agreement includes a chapter on SME, aiming to help cut their costs and integrate them into the global market.
In the S&D's view, where possible, the EU should always push for multilateral solutions in the context of the WTO. Efforts to complete the Doha Development Agenda should continue in parallel in order to make sure that developing countries continue to play a role in international trade.
The S&D says there should be no undermining of national laws and governments’ right to regulate in the public interest. It says public services and human and social rights should be the focus of the EU’s trade policy and calls for corporate social responsibility, moving towards a system of reasonable diligence.
Finally, the S&D defend protection of the EU’s high standards in health care, safety and the environment, along with the precautionary principle. (Original version in French by Emmanuel Hagry)