The Commissioner-designate for Trade, Valdis Dombrovskis, assured on Monday 21 September that the European Commission will use all available instruments to enable the steel industry to face any unfair competition on the European market from its competitors.
“The European Commission will use all available tools to protect European industry”, said the Commission Vice-President on Monday 21 September. The German Minister of Economics and Trade, Peter Altmaier, pointed out that the EU steel industry is facing challenges such as Chinese “overcapacities” and climate issues.
Meeting informally in Berlin at the invitation of the German EU Council Presidency, the EU Trade Ministers discussed the revision of European trade policy in order to rebalance trade with certain partners and ensure fairer competition. The link between trade and the single market was mentioned in discussions in which Commissioner for the Internal Market Thierry Breton also participated.
Having a level playing field “does not mean lowering our standards”, Dombrovskis said. He announced a Communication on the review of EU trade policy for spring 2021, the public consultation phase of which will be completed at the end of November.
In addition, the setting of a climate-neutral target for the EU - Mr Altmaier mentioned the date of “2035” specifically for the steel industry - will mean a phasing out of pollution permits for companies in the sector. To prevent carbon leakage, the process will have to be accompanied by a gradual introduction of the European Border Adjustment Mechanism (see EUROPE 12557/7, 12534/10).
The challenge will be to determine “the right sequence”, according to Dombrovskis. If we want more ambitious climate targets, “increased support” for CO2-intensive industries is inevitable, Altmaier said. Otherwise, he warned, industries from less regulated non-Member States will raid the markets, leading to an increase in global emissions.
WTO. Over dinner on Sunday evening, the Ministers discussed the ongoing process of appointing Roberto Azevêdo’s successor at the head of the WTO (see EUROPE 12563/29).
We agree that the WTO needs “extensive reform” to resolve the stalemate on the Appellate Body, reinvigorate multilateral trade negotiations, and integrate societal challenges such as climate change, Dombrovskis said.
Mercosur. With regard to the Mercosur trade agreement (see EUROPE 12563/28), the differences of opinion between Member States do not come as a surprise to Mr Altmaier. “Otherwise, it wouldn’t have taken so long”, he noted. He also said that “even without reopening the agreement, some issues can be clarified, which could perhaps help to find a solution”, referring to the Commission’s contacts with the Mercosur countries to obtain a clear commitment to climate action and sustainable development. (Original version in French by Mathieu Bion)