France and the Netherlands have urged the European Union to better monitor environmental and labor standards when concluding trade agreements with non-EU countries.
The call coincides with a planned reconsideration of foreign trade policy, as reported by the Financial Times and Reuters news agency. The initiative comes at a time when the EU is trying to negotiate a new trade agreement with the United Kingdom, which is said to be attempting to undermine the EU’s labor and environmental standards to boost its British competitiveness.
The involvement of the Netherlands, traditionally strongly pro-free trade, underlines a shift in European thinking about protecting its own industry, according to French diplomats. The shortage of sufficient medical supplies and equipment during the current coronavirus pandemic has also made clear that EU countries cannot be too dependent on non-EU countries. A more assertive China in global trade, and President Donald Trump’s aggressive 'America First' approach, have also contributed to reforming Europe’s stance on free trade.
In their joint proposal to the other 25 EU member states, the French and Dutch trade ministers urge, “if necessary, raising import tariffs if trading partners do not adhere to international environmental and labor standards,” according to the document.
Such an approach also paves the way to soon block or tax imports of environmentally unfriendly products due to tightened European climate rules (the ‘Green Deal’). The UN Paris Agreement on climate change will also have to be a condition for any trade pact the European countries conclude. President Trump has decided to withdraw from the climate agreement.
The French and the Dutch, who have submitted their proposals both for new trade treaties (with the United Kingdom) and for the recalibration of existing treaties, believe that EU countries should be involved earlier and more effectively in EU trade policy.
Earlier, President Macron also advocated for a larger European industrial policy in many more industries than just aircraft manufacturing (Airbus), after the earlier failure to create a large Franco-German train manufacturer, and given that EU countries rely on Chinese or American companies for a new mobile 5G network. In industries such as military equipment, shipbuilding, and technology, EU countries still often hinder each other so much that non-EU countries can ultimately benefit.
France has long been a proponent of a more protectionist trade stance. Already at his first EU summit in 2017, President Emmanuel Macron said that attracting foreign investments must not mean exposing Europe to “the chaos of globalization,” and he warned the EU against being “naive” in global trade.