The last years have shown that the EU’s ability to open up new opportunities and markets for European exports (and importers) is key for the EU’s resilience – as is maintaining a good and stable access to existing markets. This is not only necessary in the short term, as we are focused on the recovery, but needs to be part of the EU’s strategic economic & geopolitical direction for the years to come.
Significant geopolitical tensions have flared up, generating legitimate concerns for the security of companies’ investments, but this has not been accompanied by a clear silver lining in the form of new opportunities. While we welcome the good progress in rebuilding the transatlantic relationship – and hope that it will be deepenened further, we see that progress with other regions – such as Asia and Latin America - has been much slower and limited. Ratification of the EU-Mercosur agreement is still a distant prospect at this stage, even if it could bring tangible benefits to the EU.. The same can be said about trade relations with India and ASEAN countries, which are only burgeoning and slow in developing, while progress in this area would help support the strategic objectives of the Indo-Pacific Strategy. While the EU has made fast progress in its defensive and autonomous agenda in the past months, the market access and offensive dimension of trade policy has taken a backseat. This is not only regrettable, but a strategic mistake at a time when companies are in desperate need of new horizons and opportunities both as part of their recovery from the crisis and to protect themselves against some of the growing geopolitical tensions in different parts of the world.
At a time when trade policy is arguably more focused on protecting EU’s economic interests and exporting EU values rather than opening up opportunities for EU companies in the first place, we should not lose sight of the fact that the two go hand in hand. There can be no stable & beneficial trade without sustainability, but there can be no sustainable trade without trade itself. Portraying open trade as the enemy of fair and sustainable trade, or taking it for granted and risking overloading trade policy and overplaying our hand are mistakes sometimes made in the current debates on what should be the real focus of trade policy. For sectors like ours which rely on exports to support jobs and growth in the EU this is cause for concern.
As we observe how legitimate concerns about sustainability are being handled and translated into action, we should all remember the saying “if you want to go fast, go alone. If you want to go far, go together”. The proliferation of autonomous measures is concerning in this respect, as is the call from some corners to go further by imposing EU production standards on third countries. This is a risky strategy and can leave offensive interests of the EU exposed to retaliation and lead to disputes and tensions, without being an effective way of generating the positive global change that we are all looking for. Diplomatic persuasion, dialogue and partnership with others, based on international standards and practices and at multilateral level whenever possible are far more efficient engines of change – perhaps less satisfying in the short term, but delivering more lasting results – and without having to compromise on economic & geostrategic objectives.
Ulrich Adam
Director General*
*In his capacity as permanent representative of SPRL ADLOR Consulting
