Submitted by Political Commission 3: External Affairs & Global Governance.
Adopted by the online Federal Committee (FC Home) on 25 October 2020. Amended and re-adopted by the Federal Committee in Malta on 19 March 2023.

Free trade is a foundation of the European Union (EU) and one of its most successful achievements. There is no question that it has brought many benefits to the EU and its citizens. However, the current global trade system and certain EU trade policies are not exempt from criticism. In addition, the aggressive, nationalist and power-driven policy of the US, using tariffs widely as a general political tool, poses a further challenge to the international trade system — one to which the EU can only respond with unity if it wants to survive. We have grown more aware of the negative repercussions of globalisation in terms of sustainability and global justice but not without some worrying inclinations towards protectionism surfacing.

This resolution makes clear that JEF Europe views protectionism negatively and free trade as generally beneficial. EU trade policies need to be fair, in accordance with European climate ambitions and human rights standards and defined in a transparent and democratic manner. Especially in a world where the trend toward protectionism is advancing, trade policy can be a tool to enhance the affirmation and protection of human and social rights and the rule of law, the fight against inequalities and reach better standards both in terms of the production chain and in terms of environmental and social sustainability provided it is accompanied by appropriate regulation, oversight and rule of law standards. In this context, the EU can and must take on the responsibility of promoting an alternative model of global trade, one in which free trade and democracy go hand in hand.

JEF Europe,

• Recalling its Political Platform, in particular point 3.6 where it specifies that the primary aim the common EU trade policy should strive for, is to further Europe’s commercial ties with the rest of the world and continue to increase prosperity of all;

• Emphasising that fair free trade must always be beneficial to all trading parties in order to be sustainable and lasting;

• Believing that trade can contribute to peace but should never be taken as a sufficient prerequisite while at the same time peace is a prerequisite for successful trade;

• Further believing that free trade on equal terms fosters prosperity for all parties involved;

• Recognising that trade is also a tool to expand the EU’s normative power;

• Recognising further that the expansion of free trade in Europe, through the European Economic Community, has been instrumental to the improvement of democracy, living standards and respect for human rights among the Member States;

• Welcoming the diffusion of values such as democracy, the rule of law and human rights as well as high social and environmental standards, albeit acknowledging that there is no automatism and trade alone cannot guarantee this diffusion;

• Criticising our system of global free trade for the lack of social, economic and ecological sustainability and convinced that it cannot become sustainable unless it is fundamentally changed;

• Acknowledging the increasing evidence on the adverse impacts of imports of certain products such as plantation fruits and cattle livestock, whose expansion drives deforestation and is partly driven by rising demand for these products in the EU;

• Affirming that estrangement from free and fair world trade is not an answer to such criticism;

• Acknowledging that the current U.S. trade policy calls into question the traditional alliance between Washington and Brussels, completely shifting the previously existing global trade paradigm;

• Observing that multilateral trade agreements should continue to be a tool for the diffusion of both economic prosperity and improvement of living standards among a wider region than bilateral agreements;

• Deeply concerned about the increasing voice for protectionism from the new US administration, as well as some Member States and states around the world, the majority of which are led by sovereignist or far-right governments;

• Recognising the need to establish critical industries to the greatest possible extent within the EU in order to ensure supply of essential goods and to prevent their weaponisation;

• Stressing the importance of involving civil society organisations (CSOs) and their active role in monitoring the process of trade agreements, as well as sharing to ensure greater legitimacy for the public;

• Emphasising that the approval of mixed trade agreements by all Member States’ parliaments undermines European sovereignty over trade competences, allowing the intergovernmental system to slow down processes and weaken the Union’s ability to act collectively;

• Recognising the need to reassess the regulation of imports from large low-cost online retailers whose products do not meet European standards and have a negative impact on the environment, product safety, and the internal market;

• Believing that a central element of trade agreements is the protection and preservation of the standards of goods and services as much as the development of local producers and service providers, and consequently of the community, as fair and sustainable trade pays equal attention to social issues.

JEF Europe therefore,

1. Calls for the EU to implement in all new trade agreements provisions that ensure high standards for environmental protection and labour rights, social justice and protection of EU standards.

2. Calls for effective mechanisms for monitoring, verification, and sanctions to ensure continuous compliance to set standards and to prevent any regression by trade partners, further prohibit the re-routing or transshipment of goods through third countries or intermediaries designed to circumvent these standards or to evade restrictions arising from trade disputes or non-compliance.

3. Urges for new trade agreements to be democratically and transparently discussed and inclusive of civil society and representative organisations, including during their implementation;

4. Insists that trade agreements must be used as an EU tool for ensuring stronger climate action worldwide and that the EU 2050 climate targets are made central to any EU trade strategy;

5. Insists that ambitious climate and environmental targets (such as the Paris Agreement and Aichi targets) be included in future trade agreements between the EU and trading partners;

6. Expects the EU to utilise the collective potency of its economy to responsibly spread not only European product standards and trade regulations outside of its external borders, but more significantly to further democratic practices and adherence to the rule of law, human rights and social and environmental standards as part of a needed EU common foreign and defence policy, while respecting the autonomy of each state and avoiding any form of punitive or neo-colonial practices;

7. Emphasises that trade agreements, especially with developing countries, should pursue mutual interest, account for structural inequalities, provide fair access to the EU internal market, and ensure the ownership of development strategies (domestic reforms to stimulate long-term trade and investment) to third countries;

8. Promotes and endorses a reform of the World Trade Organisation (WTO) that will lead to a more democratically accountable, structured and efficient organisation and will allow it to take on more importance not only in international trade policies but also in the defence and protection of the most vulnerable actors, ultimately aspires such reformed WTO to be accountable to a World Parliament in a global federation;

9. Urges the regulation of global supply chains in such a way as to improve their sustainability, reliability and accountability, while at the same time ensuring the international competitiveness and attractiveness of the European Market;

10. Encourages the use of multilateral and regional platforms and institutions in the discussion and approval of trade agreements as a preferred option over bilateral talks;

11. Calls for the European Parliament to have a more active role in scrutinising and proposing negotiation mandates of trade agreements which go beyond simple ratification and amendment;

12. Demands the EU diversify its strategic supply chains to reduce dependence on authoritarian or unreliable states, particularly in critical sectors such as energy, semiconductors, rare earths, and other strategic technologies, improving its resilience and strategic autonomy;

13. Demands that the EU strengthen and modernise its trade defence instruments, including anti-dumping and anti-subsidy measures, to ensure fair competition, protect European industries, and maintain a rules-based Single Market;

14. Highlights JEF Europe’s simultaneous position as an opponent of protectionism and a proponent of a multilaterally overseen globalisation that respects and benefits all citizens and is based on sustainability, environmental protection and global justice.