The Chairman of the European Parliament’s Committee on International Trade, Bernd Lange, laid the groundwork for the post-crisis anti-globalisation debate by publishing a paper on Tuesday 28 April on the impact of the Covid-19 pandemic on trade.
“It seems clear that the consequences of the Corona pandemic will lead to a longer-term change in the role of the state, the role of the EU in globalisation”, he asserted.
This reflection is also part of the EU trade policy review process, which the competent Commissioner, Phil Hogan, has pledged to take forward to 2020 (see EUROPE 12471/7).
In his paper, Mr Lange calls for a trade policy that is always open and respectful of multilateral rules, but more transparent, more stable, more sustainable, and closer to citizens.
The German Social Democrat’s analysis emphasises above all the need to rebalance value chains, which he wants to make more robust and fair. The risk of breakdowns in these chains has increased because companies have reduced the number of their suppliers, he points out. He is therefore calling on European companies to strengthen their due diligence, in particular by ensuring that labour rights and the environment are respected throughout the supply chain.
To ensure that the situation is rectified, Lange suggests the development of a “binding supply chain law that ensures the sustainability and crisis resistance of the value creation process”. Alternatively, companies could be required to diversify their supply chains, he argues.
At the heart of any new trade measure is also the need to respect key principles, such as maintaining an active multilateral system, taking into account the interests of developing countries, and not losing sight of the climate crisis and the general interest.
The MEP is also advocating sustainable reform of state aid legislation, an expansion of export promotion, and the use of public procurement to acquire fair trade products.
Bernd Lange, like Phil Hogan, is not in favour of repatriating production lines to the Union, as this is considered too costly.
However, his call did not run along the same lines as the avenues recently opened up by the Commissioner, who advocates instead an optimisation of the free trade agreements concluded by the EU with its trading partners. (Original version in French by Hermine Donceel)