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Image header Agence Europe
Europe Daily Bulletin No. 12298
Contents Publication in full By article 24 / 33
EXTERNAL ACTION / Trade

Mrs von der Leyen is committed to 'free' but also 'fair' trade

"We want multilateralism. We want fair trade. We defend rules-based order. Because we know it's better for all of us. We have to do it the European way", said Ursula von der Leyen on Twitter on the eve of the parliamentary vote on her candidacy for the presidency of the European Commission. In substance, the new president of this institution follows in the footsteps of her predecessor, Jean-Claude Juncker. Nevertheless, she has the merit of taking on board some more progressive elements from, among others, France.

In her 'Agenda for Europe', where Mrs von der Leyen professes her belief in multilateralism, European trade policy will be "free and fair".

"Free", because the President, like her predecessors, defends free trade and wants to see Europe as a bulwark against protectionism and unfair trade practices. "We believe in trade, because it works - it accounts for more than a third of the EU's GDP and supports more than 36 million jobs". That is why negotiations with Australia and New Zealand must be completed and the partnership with the United States strengthened, says the programme.

"Fair", because the EU must guarantee a level playing field for its economic operators. Trade agreements help to project EU standards and values into the world: "I believe we can strengthen Europe’s role as a global leader and standard setter", says Mrs von der Leyen in her programme, with agreements that respect "the highest standards of climate, environmental protection and labour, as well as a policy of zero tolerance for child labour".

Another way to ensure fair conditions is a carbon tax on imports from non-Member States, an idea already mentioned by France, which would allow European producers not to suffer from the production standards imposed by the EU on its economic operators - even if this tax could cause some European partners in the WTO in Geneva to grind their teeth.

Mrs von der Leyen also endorsed another French proposal: the appointment of a Chief Trade Enforcement Officer, "to improve the compliance and enforcement of our trade agreements, and regularly report back to the European Parliament". As early as 2015, the Juncker Commission had already begun a shift in the EU's trade priorities towards the implementation of free trade agreements; implementation reports have also been published annually since 2017 (see EUROPE 12129/9). At a meeting with civil society on 9 July, Sabine Weyand, Director General for Trade, also made this one of her priorities (see EUROPE 12293/14).

Referring to China, the President promised a strong Europe against unfair trade practices, thanks to trade defence instruments. "We must ensure that we can enforce our rights, including through the use of sanctions if others block the resolution of a trade conflict", said Mrs von der Leyen.

The future President of the Commission also undertakes to make the EU's trade policy more transparent and to guarantee the European Parliament's democratic veto for the provisional implementation of any free trade agreement.

Finally, the implementation of Mrs von der Leyen's multilateral agenda requires the safeguarding of the WTO.

Reactions

Fair Trade Advocacy, which defends fair trade, said in a tweet, "delighted to hear (...) about fair trade (...). We look forward to working with you on global supply chains that leave no one behind".

For the Global Warming Policy Forum, a think tank on climate policy, the promise of a carbon tax suggests that "Europe could declare a green trade war". (Original version in French by Hermine Donceel)

Contents

BEACONS
INSTITUTIONAL
ECONOMY - FINANCE - BUSINESS
EUROPEAN PARLIAMENT PLENARY
SECTORAL POLICIES
EXTERNAL ACTION
SOCIAL AFFAIRS
NEWS BRIEFS