The European Parliament's new Committee on International Trade (INTA) (see EUROPE 12296/7) hosted a hearing with the European Commissioner for Trade, Cecilia Malmström, for its first meeting on Tuesday 23 July. The number of questions and the broad spectrum of topics covered revealed that trade policy issues would remain more burning and complex than ever in this legislature.
The issues discussed mainly concerned the trade agreements with Mercosur (see EUROPE 12286/3, 12297/9) and Vietnam (see EUROPE 12286/5), which will be subject to the consent of MEPs.
Mercosur: agriculture and environment
Mrs Malmström said the agreement with the South American bloc is, despite criticism, a "good agreement" for the agricultural sector. "It takes into account the sensitivities of our farmers" thanks to "carefully calibrated" tariff quotas and minor volumes with regard to European consumption. "We are the world's largest exporter of agricultural products", she said. In addition, several MEPs discussed the modalities for using the bilateral safeguard mechanism contained in the agreement (see also EUROPE 12302/5).
The agreement "also promotes European values", the Commissioner defended, citing, among other things, labour rights and sustainable development. For left-wing MEPs, however, including Helmut Scholz (GUE/NGL, Germany), this is still not enough, as the agreement is not up to the challenges of the 21st century.
While several MEPs, including socialist Kathleen Van Brempt (Belgium), deplored the absence of sanctions in the chapter on sustainable development - in the absence of a favourable majority among Member States - for Mrs Malmström, it urges the parties to "effectively implement international environmental conventions". "If we disengage, will it be better, or is it not more interesting to try to put in place a legally binding text in favour of sustainable development?", she asked MEPs.
Nevertheless, many MEPs continued to express deep concern about the positions of Jair Bolsonaro's Brazilian government and are very sceptical about the treaty's ability to commit the country to a progressive environmental and social trajectory.
The Liberal Commissioner also recalled that illegal trade, imports of products that do not comply with European standards, are strictly prohibited from entering the EU. It will therefore be up to the Member States to monitor the application of these rules. The Commission "tries to monitor and evaluate (this implementation), but we probably cannot always be sure. If we see that this does not work, the Commission will take action", she added.
Vietnam, doubts remain
While the Commissioner said she hoped for the European Assembly's swift consent to the trade agreements with Vietnam, she conceded "very serious concerns" about the Hanoi government's digital legislation and highlighted European efforts: "I discussed it with the Speaker of the Vietnamese Assembly and the minister, so that they would commit themselves to amending this legislation, which also raises many questions for us".
However, the S&D expressed regret that it is moving too quickly towards the agreement’s ratification and that it is not taking a longer advantage of the leverage of the promise of a free trade agreement with the EU.
Mrs Malmström also reviewed European efforts to work with "like-minded friends" in the attempt to reform the World Trade Organisation and to save the WTO’s Appellate Body (see EUROPE 12301/23) - admitting, however, the "futile" efforts to convince Washington to lift its veto on appointments of appeal judges to the WTO Appellate Body (AB). An interim solution consisting of a "mirror" entity of the AB is being considered, but its modalities have not yet been decided.
Finally, relations with the United States continue to be at the centre of MEPs' questions.
While progress has been made on the conformity assessment agreement, European attempts to engage Washington in limited negotiations on industrial goods have still not been successful, with agriculture still dividing the two sides. (Original version in French by Hermine Donceel)