An EU trade policy fit for the future
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European Trade Justice Coalition (ETJC) | 28 August 2024
An EU trade policy fit for the future
It is time to move on from a worn-out, broken model of trade policy and create a new approach to trade that is fit for the future. At present, trade rules tend to destroy decent jobs, drive down wages, damage the planet, and undermine high standards including for the protection of food safety, health and the climate. They particularly hurt countries in Latin America, Asia and Africa.
There is increasing recognition of the need for change – not just in the EU but across the globe. The EU needs to get ahead of the game and start thinking differently about trade in the next legislative cycle. In the coming months and years, you, representatives of the EU citizens, will have a crucial opportunity to shape a trade policy that can set a new global standard, based on sustainability, cooperation, equality, solidarity and democracy. As members of the European Trade Justice Coalition, we call for ten priorities to make EU trade policy fit for the future:
1) Promote good food and farming
We need an approach to trade that promotes food sovereignty, environmentally-friendly local food systems, a decent livelihood for farmers and agricultural workers, high animal welfare standards and good food. We must re-localise trade so that family farmers, communities and small businesses can benefit, instead of big business and agro-industry using exploitative methods and hiding profits in tax havens. We need to make sure that our trade agreements don’t increase unfair competition for EU farmers.
2) Support progressive industrial policy
Industrial policy is an up-and-coming issue which has potential to restore hope to many left behind economies – but only if done well. Decades old trade rules (eg preventing local content requirements) must not be allowed to get in the way of a progressive, socially just and green approach to industrial policy both in Europe and around the world.
We must be able to use strategic targeted policies to encourage local sustainable development and to enable the benefits of value addition to flow to both developing countries and deprived areas of Europe. We also need to ensure that the technologies needed for the green transition can be shared not hoarded.
3) Place climate at the centre
The devastating impacts of the climate crisis are already being felt today, but are nothing compared to the legacy we’re leaving if this continues. We urgently need a trade regime that embodies solidarity with the young and future generations. Yet European trade policy is still not in line with the EU’s climate and sustainable development ambitions – in fact it is in stark contradiction, including boosting trade flows in carbon intensive products. Climate goals need to be central in trade policy.
4) Ensure resource justice
In the name of the energy transition, there is a drive to use trade tools to secure critical raw materials for Europe. This risks turning into a resource grab from countries in Latin America, Asia and Africa that disregards their own industrial development needs and perpetuates highly polluting and exploitative extraction and human rights abuses. We must respect the regulatory sovereignty and development needs of other countries and local communities.
5) Scrap corporate tribunals
Fossil fuel corporations and others are using secretive corporate tribunals (formally known as ISDS or ICS) to sue states, outside of national legal systems, for billions of taxpayers’ money when climate and other public interest policies harm their profits. We must ensure this investment dispute system is not included in EU FTAs and that member states are not authorised to include it in new investment treaties.
6) Uphold human rights and labour rights
If we’re not careful, trade rules can create a race to the bottom leading to lower pay, weak public services, abusive conditions and union busting around the world. We need to ensure that trade rules embody and actually enforce human rights, including labour rights. If there is any conflict, trade rules should be subordinate to human rights law and ILO principles.
7) Protect the right to regulate Big Tech and AI
The digital economy is rapidly growing and evolving, throwing up new challenges all the time. Europe needs the power to shape and control things like AI and how citizens’ data is used, and trade agreements must not provide a back door to circumvent this.
8) End double standards in exports
We need to create new rules to stop the export of products that are already banned in the EU. European corporations should not be profiting from selling hazardous pesticides and other toxic products to other countries, when we will not allow their sale or use at home.
9) Support transparency and democracy
When trade deals are placed in question by the public and parliaments it is outrageous to try and circumvent democratic scrutiny and due process to force them through regardless. Underhand tactics such as ‘splitting’ deals should be unacceptable, while standalone deals need equal scrutiny. Instead, ensuring democratic accountability through a participatory and transparent approach can lead to better trade deals.
10) Reject trade agreements that fall short
Lastly, it is clear that when trade agreements do not meet these principles, they should be rejected – for instance as with the EU-Mercosur and EU-Mexico deals, and the EU-Indonesia talks, which also appear to be falling short.
Who are ETJC?
The European Trade Justice Coalition is the network of more than 50 organisations from across Europe campaigning for trade that works for people and planet. We challenge unjust trade rules and campaign for trade policy that works for the environment and climate, provides decent jobs, and supports health and wellbeing for all.
