EU and global economy: The new “silk routes”

While negotiations on the free trade agreement between the European Union and the United States continue amidst controversies, the EU Commission is planning to publish in the coming fall a proposal for a new trade strategy. Shortly before the summer Cecilia Malmström, member of the Commission, responsible for policies on trade, presented the highlights of the proposal during a meeting with the members of the “International Trade” commission of the European Parliament. For the Swedish commissioner a new trade strategy should first of all take into account the new scenario. Today, one every seven jobs depends on exports, and 90% of world growth is expected to develop outside the European continent. Trade agreements are meant to further this growth. Today’s global economy is deeply integrated; the exchanges of goods and services amount to 32% of global GDP, while 80% of European exports consist in raw materials and components, some of which serve for European exports. More than ever before Europe depends on international trade to maintain the living standards of its inhabitants and to finance social protection in order to address major risks of life. But also the political context has changed. Consumers have become citizens-consumers entitled not only to the right of information and transparency when the European Commission negotiates for new trade agreements in Member countries. In fact, more than ever, consumers are interested in the working conditions and in the environmental impact of production. Some polls show that a large number of consumers are willing to pay higher prices for fair trade products. Against the background of these developments, for the Commissioner three areas of intervention should guide future trade strategies. The first involves the effectiveness of trade policies within contemporary global economy. Second, special attention should be devoted to the opening of service markets in the digital revolution era. By global definition, the volume of e-commerce is estimated at 12 thousand billion euro. Facilitating access to this market would be given utmost priority, whilst ensuring the protection of personal data. This first area should be integrated with increased attention towards the needs of small and medium enterprises and improved implementation of trade agreements. Ensuring the consistency of trade policies with the EU’s fundamental values is the second major goal of the new strategy. An assessment of the Transatlantic Trade and Investment Partnership (TTIP) shows that it starts with increased transparency of trade negotiations. Accordingly, the negotiating mandate adopted by the Member States should be systematically made public. Similarly, cooperation with business partners should not undermine the high health and security standards, workers’ rights and the regulations on consumer protection and on the environment. The new business strategy should also prompt ideas to advance the Commissioner’s proposal to create a new judicial system for the protection of investments, tasked with settling disputes between investors and states. The current practice of recourse to arbitration tribunals has attracted much criticism from NGOs – including Christian ones – and trade unions alike. And yet, the EU trade policy is designed to become a more effective tool in the fight against corruption, with increasingly active support to all initiatives for the promotion of fair trade. Finally, the third priority of the EU’s commercial strategy is renewed thrust to the multilateralism of trade agreements at global level, while bilateral agreements have gained significant ground over the past ten years. In a statement on the ethical guidelines for international trade, published in September 2003 by the Holy See, “the Catholic Church acknowledges that trade rules, notwithstanding their technical appearance, have a political and social nature, with deep and lasting consequences in the life of humanity”. For this reason, European Church bodies – COMECE and Justice et Paix Europe in particular – should accompany and enrich the debate that will inevitably follow the communication of the European Commission for the future.