“European naivety”, its excessively slow awakening in the face of China, and its overly systematic recourse to negotiation were deplored during a virtual debate on competitive conditions for European companies organised on Thursday 4 June by the Gide cabinet in Brussels.
“The EU underestimates itself and must see itself as a power”, hammered Hubert Védrine, former French Foreign Minister.
This role also needs to be played at the WTO to counter US unilateralism, which undermines global rules, according to Anthony Gardner, former US Ambassador to the EU.
A change of mentality is underway at the Commission, exacerbated by the coronavirus crisis, stressed French MEP Marie-Pierre Vedrenne (RE). A delayed but necessary change: European trade policy is no longer in favour, not by a long shot (see other article). Here, she believes that the Commission should work more with national parliaments to redirect the focus.
“Things are changing and that is good, but we need to move faster and more aggressively” to “put in place adequate policies” and develop the European arsenal of defensive trade instruments, added Olivier Prost, a partner at Gide. He also called on businesses to take more initiative on trade.
Investment screening, public procurement instruments, revision of the implementing regulation... these initiatives were applauded by participants, but are considered too late and sometimes lacking in coherence. On 2 June, proposals for impact studies were also published to address concerns about competition in the EU (see EUROPE 12497/19). These stem specifically from foreign State aid provided to their companies to invest in the EU. A ‘white paper’ is expected in the coming weeks. “Should we really have waited until 2020 to deal with this?” lamented Mr. Prost.
Finally, the appointment of a Chief Trade Enforcement Officer (CTEO), announced almost a year ago, is only expected to be concluded in the coming days.
This is evidence that trade policy remains too focused on its negotiating mission and continues to neglect the enforcement dimension of trade rules, participants deplored. Effective tools, such as the Trade Barrier Regulation, do exist, but to date they remain under-utilised. (Original version in French by Hermine Donceel)