The EU’s trade policy can be sustainable – and here is how

The first months of 2024 were marked by massive farmers’ protests in many European capitals and cities. Away from fields, farmers took to the city streets with their tractors, converging at the heart of the European Union (EU) with big signs: “No to MERCOSUR”.

Trade policy: why so polarised?

Amid all the different opinions on this complex issue, I couldn’t help but wonder about this intricate relationship between trade, sustainability, and consumers. In this ever so connected world, trade has been and continues to be a big part of consumers’ daily lives. Historically providing consumers with more choices, trade has also contributed to the prosperity of countries. So, how did our views on trade become so polarised?

Green Deal: Do our internal policies match the external ones?

There can be a contradiction between the trade deals concluded with other countries and the goals the EU is trying to achieve domestically. For instance, one of the main objectives of the Green Deal is to shift towards more plant-based diets. And yet, we can see a prominent trend in trade deals not to negotiate about how much meat can be exported to the EU and at what price. How is it incoherent?

If we can set standards for domestic products to achieve our health and sustainability goals, we should be able to do the same for imported goods.

Today, you can purchase meat from animals that have been raised outside of the EU using antimicrobial growth promoters. But this practice is prohibited in the internal market. On top of that, imported products do not need to comply with animal welfare rules that we have in the EU. If we can set standards for domestic products to achieve our health and sustainability goals, we should be able to do the same for imported goods.

BEUC’s blueprint for a more sustainable trade policy

Current rules governing global trade were formulated in the late 1990s when concerns about climate or consumer preferences were either non-existent or deemed insignificant. The rules focus on facilitating fair and open commerce between countries, promoting economic growth, stability, and global cooperation without barriers.

The consumer perspective has often been overlooked or absent in trade policy discussions, despite its direct impact on what we eat, use, or wear. Following the 13th ministerial meeting of the World Trade Organisation (WTO) and its failure to address climate issues in trade, it is the right moment to tackle the pressing issues of sustainability and consumer concerns in trade policies, particularly within the EU.

The imperative for consumers to have sustainable and available options has consistently been overlooked or absent in trade policy discussions.

To investigate the topic, BEUC commissioned research to identify the relationships between trade and the Green Deal. It came out that trade policy is far from being aligned with the Green Deal. But there are ways to fix this. To those of you who may think it’s an impossible marriage, read on. In a nutshell, the idea is that the EU trade policy needs to incorporate in its core the already existing laws and practices on sustainability that benefit consumers. This entails, among other things:

Finding common ground for sustainable and trade policies

Let’s take a step back and reflect on farmers’ critics regarding trade agreements. As the EU seeks to make its own food production more sustainable, EU farmers face more and more challenges. Restrictions on certain practices, which are good for us and the environment, leave them at a disadvantage to their non-EU counterparts who don’t have to respect the same EU standards. Meanwhile, consumers expect the same level of protection irrespective of whether the product they buy is made in the EU or imported. To address this gap, requiring imports to comply with the same rules as EU products could be the right way to go.

How to achieve sustainability without being perceived as protectionist?

These import requirements, commonly referred to as mirror measures, should not be confused with mirror clauses. Mirror clauses are specific provisions found in trade agreements negotiated by the EU with a particular country. In contrast, mirror measures are import requirements defined in domestic law with general applicability. They can ban certain production methods in the food we eat and regulate chemicals in the clothing we wear, regardless of their origin.

There is a prevalent concern in the EU policymaking circles that the green measures could be viewed as protectionist. Hence, raising the spectre of a legal challenge at the WTO. Many argue that the WTO itself won’t resolve this issue, as most current discussions focus on processes such as dispute settlement rather than addressing the far too outdated or even obsolete rules.

Creating opportunities to trade goods and services within a framework, where countries align on sustainability objectives, is essential for making the green transition affordable without the fear of a trade war.

The failure to find an agreement on environmental or agricultural issues during the 13^th Ministerial Conference of the WTO is just one obvious example. One first step would be to gather a group of like-minded countries that prioritise sustainability at the centre of their internal policies. This group could facilitate pilot projects focused on sustainable trade. Creating opportunities to trade goods and services within a framework, where countries align on sustainability objectives, is essential for making the green transition affordable without the fear of a trade war.

Strong laws alone are not enough if imported products do not comply with them.

But strong laws alone are not enough if imported products do not comply with them. To ensure their effectiveness, we need to pair them with better controls at our borders. The good news is that the EU is on track to update its customs policy.

This reform is an opportunity to better equip customs agents who are in the first line to protect consumers against dangerous and non-compliant products. It is time for the Single Market to strengthen its control of imported products and cooperation between different authorities. To give you an idea: in one test of 250 products bought online, consumer organisations found that two-thirds did not comply with product safety rules.

When it comes to sustainability, we can only guess that it does not look any better. The modernised customs systems in the pipeline would hopefully allow us to deliver the Green Deal to consumers, especially in the realm of trade policy.

The ticking clock… is it too late?

Our recommendations would not only allow to place consumers at the centre of trade policy but would also guarantee the preservation of the Green Deal principles all along the way, from trading partners to internal economic actors of all categories.

There is no trade on a dead planet.

For far too long, the connection between trade, consumers, and sustainability was nonexistent. These new recommendations aim to kick start the conversation. We highlighted this at the event we recently hosted on EU trade policy and the Green Deal.

I wish I could say ‘It is never too late,’ but in the area of sustainability and the green transition, the clock is ticking. And there may soon come a time when we cannot wait any longer. So, let’s not waste any more time and make trade policy more sustainable!