By Lewis Crofts - 6th February 2004
EU trade chief Pascal Lamy is perusing rule changes which could allow Brussels to veto imports from countries that don’t correspond to the EU’s standards and values.
The discussion paper, according to Friday's FT Europe, injects a greater degree of social consciousness into the EU’s trade policy and would be seen as a large leap from the current generalised preference system which offers better trade terms to developing countries showing social reform.
It is hoped the plan will improve trade ties in the global economy by defusing tensions between trade partners and promoting “collective preferences”.
Lamy has yet to take up a position on the paper which would doubtless provoke controversy in the World Trade Organisation which only allows import bans in specific circumstances.
Such a linking of social and trade concerns could well be seen as yet another protectionist policy on the side of the EU which has already come under fire for its bans on hormone beef and genetically modified foods from the US which many see as unfounded.
The paper stresses that future trade conflicts may not be resolved with the existing format of solving disputes and a new mechanism is needed to deal with increasingly 'ideological' rows.
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