Visiting Canada on Wednesday 22 March, European Commissioner for Trade Cecilia Malmström openly criticised the protectionism supported by US President Donald Trump's administration. She called for a progressive trade policy and defended the multilateral system governed by the WTO.
"Progressive trade policy should – must – be transparent. A truly progressive trade policy also recognises, and supports, those who are left behind. Over recent years, the labour market has seen significant changes. While some benefit, others see wages stagnate, or face unemployment. These changes are mainly caused by technology (...) but trade has also played a role", Malmström stated. "We should help those who have not been able to adapt (...) with infrastructure, education, training and skills. And this is an area where we – also in the EU – need to do more", she added.
"Progressive trade policy means championing trade that is fair and rules-based. The multilateral framework of the World Trade Organisation, the WTO, has for a long time safeguarded global trade. Yet some recent rhetoric seems to put that in question. The US administration seems to favour bilateral relations over multilateralism. And some of the proposals we have seen floated, such as a border adjustment tax, could be at odds with WTO rules. Countries should be able to protect themselves from distortions and unfair trade practices. But that has to be done within the framework of the WTO", she continued.
"Global rules mean everyone playing fair, by a consistent, predictable and transparent rulebook. That is why we want the upcoming WTO Ministerial in Buenos Aires to succeed, and are working with partners to achieve that success and to show that the multilateral organisation is still important. That is why Canada and the EU are working together to take investment courts to the multilateral level. The response is positive – many countries want to work with us on this", Malmström stated.
"Turning away from open trade, or the multilateral structures that underpin it, would come at great cost. Declining trade would cost jobs. Raising tariffs would put up consumer prices – particularly affecting the least well-off. And rising protectionism could threaten the open societies and open economies that have brought freedom and opportunity to the people of Europe, Canada and the world. In an age when some want to rebuild walls, reimpose barriers, restrict people's freedom to move (...) we [Ed: the EU and Canada] stand open to progressive trade with the world", she concluded. (Original version in French by Emmanuel Hagry)