On Monday 6 July MEPs held an initial debate on the main thrust of the review of European trade policy at an extraordinary meeting of Parliament’s Trade Committee.
The speeches by the political groups in Parliament recalled what the people of Europe expect from their trade policy for the next 5 years (see EUROPE 12507/5).
Better integration of sustainable development and compliance with the Paris Agreements into European trade policy, refining European trade defence instruments (see EUROPE 12515/18), refocusing trade policy on small and medium-sized enterprises (SMEs), improving the implementation of free trade agreements (FTAs), supporting the role of the World Trade Organization (WTO), ensuring reciprocity for European economic operators on third-country markets – especially China – and a level playing field, improving due diligence in European value chains and promoting fair trade were among the recurring themes raised by MEPs.
But will the priorities of this review be applied to the ongoing trade negotiations? Nothing could be less certain. To a question from Kathleen van Brempt (S&D, Belgium), Phil Hogan replied that any decision to deviate from existing negotiating mandates would be primarily a matter for the EU Council and Parliament.
For the Commission’s consultation note on this review: https://bit.ly/3gxnIiW
Expert opinion
In addition to Mr Hogan, other speakers were also invited to express their views on the issues at stake in this project.
Beata Javorcik, Chief Economist at the EBRD, called in this context for “fighting the virus of economic nationalism in the EU” on the pretext of strengthening the Union’s industrial resilience, a nationalism which, she said, “undermines the core principle of the Union”.
Pascal Lamy, President Emeritus of the Jacques Delors Institute, recalled China’s disruptive role and the challenges it poses to the multilateral system.
He also highlighted the phenomenon of “precautionism”, which differs from protectionism in that it seeks to protect citizens from risks, including environmental risks. This trend will lead to a more fragmented globalisation which, in the short term, will benefit richer states to the detriment of poorer economies.
In this connection, Ms Javorcik and Mr Lamy called for reflection on trade relations between Africa and Europe.
Indeed, the EBRD economist pointed out that while the economic crisis has increased the need for trade finance (especially commercial insurance), this offer has been weakened, threatening trade in goods, especially in developing countries (see EUROPE 12518/24).
Any ‘reshoring’ of production must therefore be “calibrated” and the EU will have to do a balancing act to find the right balance.
Mr Lamy also called for carbon to be priced in line with its negative externalities.
According to the former Director-General of the WTO, multilateralism must also move towards “polylateralism” to make room for other, non-state actors as well. (Original version in French by Hermine Donceel)