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Macron’s fair trade ‘crusade’ faces enemies within – POLITICO

French President Emmanuel Macron should combat acquainted enemies — each outdoors and within the EU — as Paris vows a “campaign” to make Europe’s trade coverage fairer for farmers and greener for the whole world.

One of many central pillars of France’s presidency of the Council of the European Union over the following six months is a proposal to introduce “mirror clauses.” The thought is straightforward: Europe ought to demand that trade companions mirror the EU’s personal manufacturing requirements and should not be allowed to undercut European employees by laxer environmental guidelines.

In a speech to launch the French presidency final week, Macron insisted that Europe should push for mirror clauses “each time” it does a deal.

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It’s solely fair, Macron argues, to oblige non-European farmers to boost their requirements to the European benchmark in contentious areas like pesticides, animal antibiotics and deforestation, particularly if farmers at house are being pushed in a greener and more healthy path.

At first look, it’s a savvy political gambit: Within the lead-up to April’s French presidential election, it’s enjoying nicely with farmers at home, who really feel more and more burdened by calls for to go greener, whereas additionally pleasing environmental teams who need the EU to make use of its trade offers to yank nature safety requirements upward throughout the globe.

However for Macron, will probably be robust to attain a win as a result of he is shifting the goalposts in the case of the worldwide trade rulebook. The standard authorized consensus is that nations are totally allowed to dam a foodstuff whether it is discovered to not meet phytosanitary requirements on the port of entry. It could be far more controversial on the World Trade Group stage to insist that the EU needs to be permitted to dam a product primarily based on the requirements concerned in its manufacturing, notably if these import restrictions focused particular sectors that rival European farmers.

He’s set to face resistance not solely from the nations that may discover it tougher to promote their produce, but in addition from the die-hard free merchants of the European Fee, who often search to keep away from any ructions in provide chains that would drive up client costs.

EU Trade Commissioner Valdis Dombrovskis talked about strict WTO guidelines 3 times when asked in regards to the French push for mirror clauses at a press convention alongside French Economic system Minister Bruno Le Maire earlier this month.

“There are a lot of restrictions,” Dombrovskis mentioned, including that any makes an attempt to ramp up non-EU nations’ food-growing requirements by mirror clauses “want to attenuate disruptions of trade [and] have to not be extra far-reaching than strictly crucial.”

Echoing the traditional free-trade consensus, an EU trade diplomat mentioned: “It’s totally troublesome to see how this might work.” 

Corridor of mirrors

The French push for mirror clauses is in step with the mantra of “strategic autonomy” echoing round Brussels. Largely because of France, the EU is turning into extra assertively defensive in its trade coverage.

However Macron’s “mirror clauses” transfer this to a different stage, trying to comprehend a long-standing European dream of being a world commonplace setter.

“Europe should impose its requirements on others and never have others’ requirements imposed on it,” mentioned French Agriculture Minister Julien Denormandie, who added he was on a “veritable campaign” to collect momentum from fellow ministers.

Time is of the essence, as France’s Council presidency can be severely curtailed by April’s election when Macron is predicted to hunt reelection.

Macron loyalist Denormandie urged the Fee to hurry up work on a report — due by the top of June and known as for by the Council and the European Parliament — on the authorized compatibility of the mirror clauses with WTO guidelines. 

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The report was the fruit of final 12 months’s negotiations on the following Frequent Agricultural Coverage, and a second EU diplomat mentioned Denormandie had tried and didn’t get the Fee to convey it ahead by six months so ministers might correctly debate it below his chairmanship of the Council.

However the EU’s free merchants are beginning to sound the alarm, pointing to the WTO rulebook.

“Should you interpret WTO legislation very strictly, that is seen as a restriction of trade and never allowed,” mentioned Inu Manak, who focuses on worldwide trade legislation on the libertarian Cato Institute suppose tank. “The WTO guidelines do permit flexibility for regulation on trade. However whether or not it’s authorized or not will rely on the construction of the measure and the way discriminatory it’s.

“If mirror clauses can be used solely for sure sectors or sure product areas for protectionist causes, a WTO case can be very seemingly,” Manak continued. “But when the aim is to verify everyone seems to be enjoying by the identical guidelines, it’s a unique story. After all the EU must justify that there are reputable aims, corresponding to animal welfare or environmental safety.”

The issue is that France does wish to apply these mirror clauses in a sector-by-sector method, based on its presidency program. 

Denormandie has to this point solely given a couple of concrete examples of the place France would wish to wield these mirror clauses, notably on imposing more durable guidelines on the animal antibiotics and pesticides non-EU farmers can use if they need Europeans to purchase their produce. He needs to piggyback on a deliberate overhaul of the EU’s agrichemicals legislation to demand stricter most pesticide residue levels in meals imports.

Trade block

For now, it looks like the most effective Paris can hope for is to ramp up political momentum across the want for a fairer enjoying subject. Final week, Denormandie mentioned he would spend the following two months spearheading the drafting of a joint declaration on mirror clauses amongst farming ministers.

“There could be a mixture of high-level discussions on learn how to transfer issues ahead after which a mixture of actual, sensible issues,” mentioned a 3rd EU diplomat.

Denormandie can already depend on the staunch assist of Spain, and has mentioned he’s optimistic about Germany’s new Inexperienced Agriculture Minister Cem Özdemir approaching board.

However conventional pro-free trade nations such because the Nordics are much less eager on pursuing an overtly protectionist agenda.

In what was maybe a revealing Freudian slip, EU Agriculture Commissioner Janusz Wojciechowski summarized France’s place on mirror clauses by saying Paris wished to “higher defend our values,” earlier than shortly correcting himself to say “promote our values.”

The primary EU diplomat mentioned: “It isn’t workable for the EU to wish to make the EU requirements to develop into world requirements. That is not trade enhancing.”

So whereas farming ministers would possibly get on board with Paris, they’re set to conflict with their trade colleagues — and the Fee’s highly effective trade division — over the concept.

Main resistance can also be more likely to come from future trade companions like Canada, New Zealand or India who’ve to enroll to the mirror clauses.

“Third nations are unlikely to just accept harmonization,” mentioned Holger Hestermeyer, a trade legislation knowledgeable at King’s School London. “Merely accepting EU requirements is troublesome as a result of it’s very intrusive. The extra frequent strategy is to consult with worldwide treaties, for instance, compliance with the Paris [climate] settlement as a situation for sealing a trade deal.”

A diplomat from a non-EU nation warned this drive from France might find yourself being counter-productive by way of sustainable farming.

“It’s not cheap to require third-country producers to make use of the identical manufacturing strategies as EU farmers when local weather and environmental circumstances could also be very completely different in these nations,” they mentioned.

Gabriela Galindo and Giorgio Leali contributed reporting.

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