The European Commission launched its review of trade and investment policy on Tuesday 16 June, opening a consultation on the future direction of this flagship EU policy.
The unpopular European trade policy is seeking new legitimacy. Its recent free trade agreements, although known as "new generation", have been challenged by several assemblies, notably in the Netherlands, Austria and Belgium.
"It needs to be updated and revised to remain relevant", said Trade Commissioner Phil Hogan, visiting the European University Institute in Florence for the occasion. "We want to build a new and inclusive consensus around the ‘what, why and how’ of trade policy", he added.
This consultation will therefore set the political direction for the EU's trade and investment strategy in the coming years.
A colossal project
The challenges are, of course, complex and the expectations considerable: improving the implementation of trade policy, integrating sustainability issues, adapting to the digitisation of the economy, diversifying supply chains - all while maintaining an open European market (see EUROPE 12502/13, 12498/25, 12496/22, 12494/7).
The global context has also changed. China is increasingly posing itself as a systemic rival to the EU, while under the leadership of President Donald Trump, the US has moved away from its traditional role as world leader. Finally, the World Trade Organization (WTO), the pillar of multilateral trade, is going through a deep existential crisis.
These circumstances call for a response from the EU. "We need to be more assertive in asserting our rights and defending ourselves against the unfair practices of others", Hogan said. He continued, "These unfair practices have increased in recent years. We need to strengthen our protections to prevent competitors from taking advantage of our openness".
Open strategic autonomy
Finally, the crisis caused by the Covid-19 pandemic exacerbates some of these trends such as the return of the State to the market in force or the search for new autonomy for production considered as strategic.
"Today we are therefore seeking the views of our citizens and stakeholders to help us develop an EU trade policy approach tailored to the post-coronavirus global economy. We call this approach 'open strategic autonomy'", the Commissioner continued.
This concept is, moreover, included as a political priority in the Commission's Communication on European post-Covid-19 recovery from May 2020 (see EUROPE 12495/16, 12490/27, 12494/7).
The consultation lasts until September 15. In the meantime, the Commission will also organise several brainstorming meetings with stakeholders. The new Commission Communication is expected by the end of 2020.
See the consultation document: https://bit.ly/2N0SmnR (Original version in French by Hermine Donceel)