In an uncertain international context due to Brexit, the risk of American disengagement and the protectionist threat, the heads of state or government of the EU will reaffirm their commitment to free trade and the multilateral system governed by the WTO at the European Council of 9 and 10 March.
“Trade remains one of the most powerful engines for growth, supporting millions of jobs and contributing to prosperity”, they are expected to state in their conclusions, the most recent version of which EUROPE had sight of on Wednesday 8 March.
In this regard, the European Council will welcome the “positive vote” at the European Parliament on 15 February (see EUROPE 11726) in favour of the EU/Canada free-trade agreement (CETA), which was signed on 30 October 2016 (see EUROPE 11658), and stress that it is looking forward to its “imminent” provisional application.
The European Council will welcome the “clear signal” sent out through CETA “at a time when protectionist tendencies are re-emerging”, stressing the EU's firm commitment to a “robust trade policy and an open and rules-based multilateral trading system, with a central role for the WTO”. The European Council will confirm the support pledged to the WTO by the EU trade ministers in Valetta on 3 March, in view of the risk of disengagement on the part of the United States as a result of the threats brandished against the WTO by the American president, Donald Trump (see EUROPE 11738).
In parallel to its commitment in favour of free trade, the “EU has to equip itself with modernised, WTO-compatible tools to tackle unfair trade practices and market distortions”, the European Council will state, calling for the “quick adoption” of the proposals in this field: - plans to modernise the trade defence instruments of the EU, to be negotiated by the Council and European Parliament in trialogue, with an initial meeting scheduled for 21 March (see EUROPE 11735), on the basis of the agreement reached by the Council at the end of 2016, following three years of stalemate (see EUROPE 11688); - the new draft methodology to calculate anti-dumping to resolve the matter of the treatment of China in the anti-dumping investigations of the EU when the provisions on this in China's accession protocol to the WTO expire. The trade ministers of the EU gave their support to this draft methodology on 3 March (see EUROPE 11738).
The European Council will go on to call for the EU to continue to “engage actively” with its international trade parties, including “resolutely advancing” on all ongoing negotiations for “ambitious and balanced” free-trade agreements, including the talks with Japan, which are “closest to an early conclusion”. The Commission and the Japanese government confirmed on 17 February their commitment to wrap up these negotiations as soon as possible. The subjects still outstanding include agriculture and the automotive sector (see EUROPE 11728, 11729).
Lastly, the Council will stress the need for the EU, in its increasing trade openness, to be “particularly vigilant” concerning the “respect and promotion of key standards”. (Original version in French by Emmanuel Hagry)