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In a tougher trading world, the EU will arm itself for future conflicts

Brussels: The injured European Union, reinforced by Brexit’s pain, clashes with President Trump and new realism against China, will launch a future trade policy designed to help deal with unreliable partners next week. is.

Enforcement of global rules and ensuring equal market access will be the basis of a new strategy announced by the European Commission in a significantly more difficult tone than the last renewal of 2015’s “All Trade” mantra.

As coordinators in 27 EU countries, the European Commission wants to emphasize trade resilience to future pandemics and fair play while helping green and digital recovery. At a meeting with Britain after Brexit.

Trade Commissioner Valdis Dombrovskis said in a seminar last week that “we are strengthening our toolkits to handle cases where third countries do not comply with the rules and are ready to protect themselves.” ..

Dombrovskis does not appoint or review third countries, but few doubt that China and the United States are the focus. Enforcement is already in 2019 when the EU first declares China a’systematic rival’and the Trump administration paralyzes the World Trade Organization’s senior committee and eliminates the ultimate arbitrator of world trade. I was increasing the pace.

“Trump’s one-sided action has helped the EU respond by strengthening its ability to act in a faster and more active way, rather than outside the WTO,” said a senior researcher at Brussels-based think tank Brugel. Andre Sapir said.

EU enforcement regulations are the result. Brock can retaliate if a third country blocks dispute resolution, such as appealing the WTO Panel’s decision to a non-existent Appellate Body, which is set to take effect in a few weeks.

The EU has agreed on a provisional appeal system with trading partners, including China, excluding the United States. Invented in the face of Trump’s trade tactics, this system could cause a conflict with Joe Biden’s new US administration.

The international source of procurement that is likely to be agreed this year is a further part of EU weapons. It may penalize trading partners who do not open government bids as much as the European Union.

It is designed to turn China towards reciprocity, but it could also challenge Biden’s new “buy America” ​​order.

The law was first proposed in 2012, but was blocked by EU countries. However, Germany and others are now changing their perspectives.

Strict for partners

The European Union, along with the new Chief Operating Officer, has filed disputes with free trade partners, covering not only market access but also “sustainable” issues such as worker rights and environmental policy. Make sure that is completely filled.

The block began in 2021 and the arbitral tribunal ruled in favor of the dispute with South Korea. The European Union has stated that it has not fulfilled its commitment to workers’ rights in a trade agreement that came into force 10 years ago.

The decision on another panel on the export of timber from Ukraine and the decision on another panel on the export of poultry to southern Africa will give us an idea of ​​what is to come.

The EU agreements between the UK on trade and China on investment are both models of how to reach an agreement with an unreliable partner, which was reached at the end of December and is filled with sections on how to resolve disputes.

The European Union, for example, wants to promote its value by insisting that all free trade agreements sign the climate change agreement in Paris.

It is not yet known if the executive has teeth. Critics say market access disputes can lead to sanctions, but like transactions in both South Korea and China, enforcement of environmental or labor standards is a form of panel discovery that is a more shameful movement. say.

The EU’s new arsenal may never be used, especially against potential new US allies, and may play a greater role in increasing leverage in trade-related discussions.

“The EU prefers diplomatic routes,” said Guillaume van der Lou, a researcher at the think tank EPC and the Egmont Institute. “Are you using a bazooka? I only think of it as a last resort. I will pursue other paths first.”

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In a tougher trading world, the EU will arm itself for future conflicts

Source link In a tougher trading world, the EU will arm itself for future conflicts

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