The Netherlands would like to take an initiative at European level to coordinate and promote responsible behaviour by European companies in their international operations. In doing so, The Hague also echoed European consumers who, according to the results of a recent Eurobarometer survey, expect a more sustainable trade policy.
Sigrid Kaag, the Dutch Minister for Foreign Trade, presented to her European counterparts a new initiative entitled 'Towards European ambition on Responsible Business Conduct’ at the ‘Trade’ Council of the EU at the end of November (see EUROPE 12374/3, 12374/4), which was also discussed at the ‘Development’ Council of the EU.
Towards European harmonisation?
"There is a responsibility for companies to ensure due diligence across their value chains", says the concept note circulated by the Dutch. While some elements of the "new generation" free trade agreements now include elements of sustainability in trade liberalisation, The Hague calls for a stronger role for private actors in this field. This responsibility includes respect for human rights, labour and the environment.
Voluntary labels exist, developed by certain groups of companies. But the Netherlands believes that "States can and should contribute to promoting responsible behaviour by companies of their territory operating abroad", the note also said.
But existing initiatives present a patchwork of different national and international policies. For The Hague, "these variations hinder responsible trade across the EU and fuel discussion on the level playing field". That is why, said Minister Kaag, "we think now is the time for the EU with the new Commission taking over the baton to start and continue this from a viewpoint of impact globally, as well as level playing field".
Meeting consumer expectations
This initiative would also help to meet consumer expectations for sustainable trade.
A recent Eurobarometer survey shows that European trade policy should give priority to job creation while maintaining and respecting environmental and health standards. "This focus on the impact of international trade on the environment and health is one of the biggest changes since the 2010 survey, when the focus was much more exclusively on employment", the report's authors point out.
Exporting EU standards
According to André Sapir, senior researcher at the Brussels think tank Bruegel, this attempt is in line with the main trends in European trade policy.
"It has already been EU policy for some time to seek to impose its standards on its partners", he told EUROPE. "Climate issues will see these attempts increase, both internally and externally", in particular to ensure a level playing field for EU economic operators subject to stricter environmental and social regulations than their competitors.
Mr Sapir expects that, in the future, the public authorities will increase their pressure on economic operators.
While the procedure is still in its infancy, Ms Kaag welcomed the enthusiastic response from several Member States. Belgium, Denmark, France, Luxembourg, Spain and Sweden are said to have immediately supported this approach.
To consult the Eurobarometer: https://bit.ly/2DrV7dp (Original version in French by Hermine Donceel)