While he has not often departed from his answers to MEPs' written questions (see EUROPE 12337/5), Phil Hogan, Commissioner-designate for Trade, has been firm in his commitments to improve the means of European trade policy in order to better protect the interests of the European Union. At his hearing in the European Parliament on Monday 30 September, he promised MEPs of the Committee on International Trade (INTA) to integrate the European Union's sustainable agenda into its trade policy – even within the World Trade Organisation (WTO).
United States
On transatlantic relations, Phil Hogan recalled the willingness of President-elect Ursula von der Leyen to continue working on a positive agenda with Washington. But “it takes two to tango”, he also conceded.
This is also the case with the WTO and its reform, where there are many mutually beneficial issues when it comes to creating a level playing field for China, which has failed to meet its commitments, he stressed.
However, in the absence of a response from Washington, the EU must put in place its “plan B”, strengthening its own instruments to defend itself against unfair competition.
A level playing field
Plan B is the guarantee of a level playing field for all European operators, a commitment that will be at the heart of the Commissioner-designate's programme.
Among the means he intends to use is the development of an instrument on public procurement, which he hopes will be unlocked in the EU Council.
Mr Hogan also expressed his readiness to strengthen work on a foreign investment screening mechanism, in particular by harmonising the approaches of Member States that are also part of the ‘17+1’ (cooperation between China and Central and Eastern European States).
In addition, he will contribute to the development of an instrument to limit the impact of foreign support on the single market, he confirmed.
Sustainable development and trade
Not surprisingly, the issue of the links between trade and sustainable development was another common theme of this hearing.
Nevertheless, to those MEPs who were curious to understand how he intended to implement the social and environmental provisions of free trade agreements in practice, he may have seemed unambitious.
Thus, on the issue of the trade agreement concluded with the Mercosur bloc, and more particularly Brazil's compliance by Mr Bolsonaro with the chapter on sustainable development, Mr Hogan said that he wanted above all to build on the experience acquired in recent years, particularly with South Korea's test case.
In response to a question from Kathleen Van Brempt on the possibility of imposing preconditions for ratification, he said he was “prepared to look at what you mean by pre-ratification”, while warning against reopening the agreement with Mercosur. He also pointed out that Mercosur states were now “under pressure” and that this lever could be used until ratification.
Finally, in response to a question from Inma Rodríguez-Piñero (S&D, Spain) on compliance with EU health standards, Mr Hogan replied that there was no question of lowering them, as any product that did not meet the standards could not circulate on the market. “Everybody has to raise their standards to the EU standards, not the other way round”, he added.
“It will be certainly an objective of mine to enter [the sustainable development goals, editor's note] into the WTO”, he also said in response to the question from Anna Cavazzini (Greens/EFA, Germany).
Responsible for the application of trade rules
The ace in the sleeve of the Commissioner-designate is the forthcoming appointment of a Chief Trade Enforcement Officer (CTEO) to ensure the implementation of trade policy, and thus contribute to the Commission's effectiveness on the issues at the heart of the debates with the Member States. “He will be very busy”, Geert Bourgeois (ECR, Belgium) pointed out.
A reflection is underway to “give teeth” to this function, said Mr Hogan, to make it “as effective as possible”. The opportunity for Reinhard Bütikofer (Greens/EFA, Germany) to urge Mr Hogan to commit to integrating civil society and trade union organisations into CTEO consultations on the implementation of the agreements.
While Mr Hogan has sometimes been evasive in his answers to Members of Parliament about the initiatives he intends to take, if he is confirmed as Commissioner, he has reaffirmed that he expects the European Parliament to use its right of initiative on subjects that Members consider relevant to submit to it, in line with the political guidelines presented by the President-elect.
This could apply, for example, to a “mandatory due diligence” initiative on global value chains, as suggested by Heidi Hautala (Greens/EFA, Finland) or an initiative on due diligence requirements in the textile sector, to which Helmut Scholz (GUE/NGL, Germany) referred. (Original version in French by Hermine Donceel)