Dear parliamentarians, ladies and gentlemen,
For decades, the EU has been a champion of open, fair, and rules-based global trade.
This has transformed our continent. Created opportunities for our businesses. Brought prosperity to our citizens. And given Europe a strong voice internationally.
But now, our trade policy is being tested. By geopolitical tensions, protectionism, pressure on global supply chains. Just to mention a few challenges.
If we want a strong Europe and a strong European economy, we need to act.
Today, I’d like to outline a few topics, the EU’s future trade policy must be able to deliver on.
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First, our partnership with the US.
For decades, the transatlantic partnership has been a fundamental pillar.
The US is our biggest trading partner and our most important strategic ally.
Today, this trading partnership is being challenged. By President Trump’s ‘America First’-strategy. By US tariffs.
The agreement between the EU and the US from this summer has secured some stability and predictability.
Terms are less favourable than before. Some challenges remain.
But without an agreement, we would have seen a full-blown trade war. And trade relations would have been entirely on Trump’s conditions. Not ours.
Just last week, I hosted Secretary of Commerce Howard Lutnick and Trade Representative Jamieson Greer for a discussion with EU trade ministers in Brussels.
We discussed challenges as well as opportunities for EU-US cooperation. The atmosphere was constructive.
A trade war is in no one’s interest.
It is in our interest to uphold close transatlantic ties – on terms acceptable to both sides.
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Secondly, I want to stress the importance of new trade agreements and economic partnerships.
We need to trade more – and with more countries.
We cannot put all our eggs in one basket. Not least when some eggs are cracking a bit...
The Danish Presidency has prioritised efforts to expand the EU’s trade network with partners across the globe.
The Commission has concluded trade negotiations with Indonesia and entered a new economic partnership with South Africa. The EU’s trade agreements with Ukraine and Moldova have been updated.
Negotiations with other strategic partners have advanced. We hope for signing of the agreement with Mercosur very soon, and then comes Mexico.
This will give us increased market access. Stronger supply chains. And more cooperation on regulation.
To advance our goals we must be able to work with many partners. Even if their perspective is different from ours.
I like to speak of pragmatic idealism.
We will not necessarily agree on everything, but we will almost always agree on something.
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My third point is, while we maintain our openness, we must also become more robust.
Our internal market is being challenged. By unfair trading practices.
It is unacceptable. We have to safeguard the EU’s internal market. We must insist on a level playing field.
We’ve already taken action. By putting tariffs on Chinese electrical cars, for example.
And we must continue to act swiftly and robustly – without compromising our fundamental commitment to open trade.
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Economic security has become a key priority of the EU. Our trade policy must equip us for an era of geo-economic rivalry and technological competition. We see a growing weaponisation of strategic dependencies, from critical raw materials to key technologies.
Recent Chinese export restrictions on critical raw materials and minerals underline how vulnerable and dependent Europe still is.
Therefore, trade policy must be seen as a core element in Europe’s geo-political and geo-economic strategy. The EU must diversify partnerships, reduce vulnerabilities, and secure the inputs needed for competitiveness and the green and digital transitions.
This is not in conflict with the openness I called for earlier. On the contrary, our trade policy must deliver both openness and security, ensuring that Europe remains strong, resilient, and influential on the global stage.
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Lastly, at the core of EU trade policy is the WTO and the international rules-based system. My fifth point.
The EU always was and still is a staunch supporter of the WTO.
It is important for European countries and businesses to have predictable global rules of trade.
But the WTO is more challenged than ever before.
Substantial reform is needed. This is a key priority for the EU for the WTO ministerial conference in Cameroun next year.
It will be hard to reach. But we should not give up.
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These are some of the key features of EU’s future trade policy. Now more than ever, a strategic and effective trade policy depends on political determination and flexibility. And the continued close co-operation between all of us.
Thank you.