For a Free, Fair and Sustainable Trade Policy

19 March 2023

Resolution submitted by Political Commission 3: External Affairs & Global Governance
Adopted by the Federal Committee in Skopje on 25 March 2018.
Re-adopted and amended by the online Federal Committee (FC Home) on 25 October 2020.
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. 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. Trade policy can be a tool to enhance the affirmation and protection of human rights and the rule of law, the fight against poverty and 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.

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 EU citizens;
  • 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 trade war between the United States and China adds a negative influence on the global market and risks making the fair trade of goods and services increasingly challenging;
  • Observing that multilateral trade agreements will 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 among Member States and around the world;
  • Recognising the need to relocate critical industries in order to ensure supply of essential goods and to prevent their weaponisation;
  • Highlighting the importance for discussions on trade agreements and trade policies to be transparent and involve citizens;
  • 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 trade agreements by all Member States’ parliaments may lead the debate to domestic policy issues, creating confusion for citizens and jeopardising their credibility;
  • 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;
  • Drawing the attention to the close link between food security and global trade, as became clear during the COVID-19 pandemic and the Russian invasion of Ukraine, and calling for the EU to adopt a higher safety standard on all food products reaching the EU single market;

JEF Europe therefore,

  1. Calls for all new trade agreements to contain provisions ensuring high standards for environmental protection and labour rights;
  1. Urges for new trade agreements to be democratically and transparently discussed and inclusive of civil society and representative organisations;
  1. Demands an ever closer connection between civil society organisations and institutions involved in international trade in order to ensure their representation at all levels;
  1. Further argues that trade agreements must become an EU tool for ensuring stronger climate action worldwide and that the EU 2050 climate targets are made central to any EU trade strategy;
  1. 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;
  1. 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;
  1. Emphasises that trade agreements, especially with developing countries, should pursue mutual interest and therefore always ensure the ownership of development strategies (domestic reforms to stimulate long-term trade and investment) to third countries;
  1. Promotes and endorses a reform of the World Trade Organisation (WTO) that will lead to a more democratic, 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 expects such reformed WTO to be accountable to a World Parliament in a global federation;
  1. 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;
  1. Supports the application of sanctions (including withdrawal from trade agreements as a last resort) in cases where partners do not respect those standards and values;
  1. 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;
  1. Urges EU member states to prioritise countries adhearing to democratic principles and human rights for trade so as to not only prevent disruptions in trade but also to use the EU’s trading power to help promote democracy around the world;
  1. 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.