European policy is embedded in a multilateral context that has evolved over the course of the last European legislature. From the TTIP confidence crisis to the signing of the free trade agreement with Japan, the CETA saga with Canada, the Chinese challenge to the multilateral trading system, the rise of protectionism, Trump's inauguration and his tariff response, these developments have reshuffled the cards for stakeholders in European trade policy. They have also probably breathed new life into it.
Commitment to a European trade policy promoting European norms and values, support for multilateralism, protection of European economic operators to guarantee them fair opportunities, or a ‘level playing field’, in European jargon: an integrated and more or less vehement and constraining agenda for most European political parties’ programmes (see EUROPE 12259/1).
The dual trade policy agenda
With varying degrees of vehemence, the majority of political parties of all leanings support a trade policy based on European values and standards. This policy should focus on promoting these standards and values in free trade agreements (FTAs), but also on protecting them in the context of defending European trade. To the left of the political spectrum, this also requires the binding implementation of these standards.
The European People's Party (EPP) supports an ambitious European trade policy that defends "high standards while preventing unfair trade practices". Though the negotiation of new free trade agreements is widely encouraged, the Commission will have to respect its commitment to negotiate with the United States "without lowering our standards", because it is also a question, for the EU's trade policy, of protecting "the quality jobs of our workers against dumping, outsourcing and the sale of technology".
The PES will also ensure that the EU incorporates, in all future trade agreements, "binding social and environmental standards, human rights, consumer protection and workers' rights".
A song of free trade, the Alliance of Liberals and Democrats for Europe (ALDE) immediately reminds us that "as Liberals", they have "a duty to defend the benefits of free and fair trade alongside allies from other political groups", calling on the EU to "overcome its internal challenges to seize the opportunity" to make its voice heard on the multilateral stage and oppose adversity. "From a European perspective, world trade must also be fair and sustainable", say the Liberals, and free trade agreements are the only way to ensure that the European model of social, economic and production standards will prevail. Thus, European negotiators in FTAs must focus on "preserving human dignity and working conditions, sustainability and the fight against corruption in future agreements".
The support of the European populations must be obtained “by being transparent and clear".
In their manifesto, the European Greens will continue to "work for open and fair trade policies, provided that they are based on international rules, transparent processes" and promote "the rights of workers, farmers and consumers, animal welfare and the protection of health and the environment", thus promoting the development of a sustainable economy. The Paris Agreement, international labour rules and sustainable development objectives should constitute the foundation of trade treaties.
The Party of the European Left (PGE) is also not opposed to free trade, but calls for a European trade policy based on "equality, justice for the people and ecology". Thus, they denounce certain agreements that were signed with ACP countries that "are not based on the interests of the people", particularly in the Mediterranean region, where they advocate for a new form of economic and commercial collaboration.
In this context, the Alliance of European Conservatives and Reformists (ACRE) is probably the most dissonant voice. European Conservatives are not dithering about their European ambition: promoting free trade and developing trade agreements are among Europe's added value areas. "I have been a passionate supporter of free and liberal trade since the beginning of my political career", said ACRE's Spitzenkandidate, Jan Zahradil, in his programme. In his view, it is necessary to establish "the appropriate regulatory and economic conditions": "after all, the EU is a trading bloc, not a social security system", he said.
ACRE MPs will campaign in Parliament for the signing of "at least" ten new free trade agreements by 2024 in Africa, Latin America and Asia.
The EU to the rescue for multilateralism
The main European parties are protesting against the rise of protectionism and pledge to work towards multilateralism.
Thus, the European Green Party (EGP) also says it is “in favour of the WTO’s progress and multilateral agreements in relation to bilateral trade agreements”. The Party of European Socialists (PES) calls for European unity regarding trade policy, urging the EU to serve as a “reference” on multilateralism: "We must unite against unpredictable and isolationist partners and promote another globalisation".
It is joined by other parties to the left of the political spectrum, all of whom are calling for this “other globalisation”.
The Greens also reject provisions to establish judicial systems between states and private investors. They call on multinational companies to exercise “due diligence” throughout their supply chain to ensure that their activities do not constitute a human rights or sustainable development violation. (Original version in French by Hermine Donceel)