EU Sets Out New Trade Principles

The European Commission (EC) set out a new trade strategy February 18, reflecting its support for the green and digital transformations that it sees as crucial for a climate-neutral economy.

Where necessary, "the EU will take a more assertive stance in defending its interests and values, including through new tools," it said in a statement. The document, Trade Policy Review: An Open, Assertive and Sustainable Policy, may be read here.

The EC "is putting sustainability at the heart of its new trade strategy, supporting the fundamental transformation of its economy to a climate-neutral one. The strategy includes a series of headline actions that focus on delivering stronger global trading rules and contributing to the EU's economic recovery," it said.

The commissioner for trade, Valdis Dombrovskis, said: “The challenges we face require a new strategy for EU trade policy. We need open, rules-based trade to help restore growth and job creation post-Covid-19. Equally, trade policy must fully support the green and digital transformations of our economy and lead global efforts to reform the World Trade Organization (WTO). It should also give us the tools to defend ourselves when we face unfair trade practices."

Reform of the WTO will include "global commitments on trade and climate, new rules for digital trade, reinforced rules to tackle competitive distortions, and restoring its system for binding dispute settlement."