European Union seeks to unblock stalled deals

The EU is set to intensify efforts to finalise trade negotiations with Australia, New Zealand and Chile all while making sure adequate environmental norms are met, a top official said.

Following a meeting of trade ministers of the 27 member states, EU trade commissioner Valdis Dombrovskis said there “was a very broad consensus” that the bloc needed to “intensify and… accelerate the work on concluding, signing and ratifying trade agreements”.

Clinching trade deals with partners across the globe had long been the major priority of the European Commission, the EU’s executive arm that handles trade policy for EU countries.

Spooked by the highly protectionist turn taken by the United States under former president Donald Trump, as well as the reluctance of China to open its economy, the EU pivoted to a more defensive trade policy.

This was encouraged by France which currently holds the EU’s six-month presidency and has asked for a more cautious approach on trade deals, especially one with Mercosur, the South American trade bloc that has been agreed but yet to be ratified.

The Czech Republic and Sweden, which take over the EU’s next two presidencies, are lobbying for the return of a more liberal trade stance, with free trade deals at their centre.

“When it comes to a free trade agenda I think the EU needs to do much more and (be) much quicker,” said Swedish trade minister Anna Hallberg before the talks in Luxembourg.

“We need to be relevant trading partners, an attractive trading partner and we have a number of trade deals on the table. We need to conclude them now,” she added.

Sweden takes over the EU presidency in January 2023 and will put pressure on the EU to conclude several deals, if they haven’t crossed the finish line already.

The most ambitious hopes are that the European Commission will conclude negotiations with Chile, New Zealand and Australia by the end of this year.

The commission would also like to ratify agreements already struck with Mexico and Mercosur, but these are stuck in a legal limbo.

The Mercosur deal was negotiated over two decades and still faces bitter opposition from European cattle farmers and fears it lacks safeguards against the deforestation of the Amazon.

French Trade Minister Franck Riester said Paris wasn’t opposed to a ramped up trade agenda, insisting trade deals should also be used to pressure partners into better practices.