EU launches free-trade fight

Opening markets abroad and fighting protectionism in Europe are the keys to harnessing globalisation, Peter Mandelson has declared.

Outlining a new competitiveness agenda for trade policy on Wednesday, the EU trade commissioner said Brussels must wave goodbye to protectionism.

“Europe’s policy needs to be clear - rejection of protectionism at home, activism in opening markets abroad,” he declared.

Policies in the years ahead will range from renewing free-trade deals to fighting piracy, the commissioner added.

Shoe war

But the strategy’s launch comes hot on the heels of a bitter fight over whether to impose duties on shoes from China and Vietnam.

EU ambassadors struck a compromise deal earlier on Wednesday to introduce duties against both countries.

Ambassadors from member states broke months of deadlock and voted to to levy the controversial duties from Saturday.

Chinese and Vietnamese shoes will face tariffs of 16.5 per cent and 10 per cent.

“We have reduced the period of application for the measures from five years to two,” Mandelson said.

Deep divisions

But member states were deeply divided over the plans.

Sweden, Germany, Britain and Denmark have led the opposition to the tariffs while countries such as Portugal, Italy and Spain have backed the commission’s tariff proposals.

Hitting back at his critics in the “northern liberal” states, Mandelson argued that the tariffs were a reasonable response to anti-competitive behaviour.

“It is very important that if we are going to stand up for free trade we keep in place defences against unfair trade,” the commissioner insisted.

“The decision was a necessary one because it follows the investigation we made into claims of dumping.”

But as a sop to the concerns of the liberals, Mandelson’s report says defence instruments will need to be adapted in the years ahead.

“All member states agree that trade defence instruments are vital for fair trade,” he argued.

“We have to keep up confidence in the rules so that consensus can be kept up in the future and that is why a review will take place.”

Free-trade agreements

Mandelson also outlined plans for bilateral trade deals that will “complement” the multilateral trading system.

But NGOs attacked the arrangement, saying the deals will undermine multilateralism.

“It seems the wolf has taken off its sheep’s clothing. This is an extremely aggressive agenda that pays little more than lip service to development,” Oxfam said in a statement.

“The EU plan to use free-trade deals to force concessions on issues that developing countries have repeatedly rejected at the WTO will undermine multilateralism and increase poverty and inequality.”

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