In the context of growing geopolitical rivalry, the European Union stands at a crucial point in defining its trade strategy. The EU’s trade agenda must now deal with overlapping issues that go far beyond pure economic interests: heightened geopolitical tensions, the fortification of supply chains, a growing feeling of distrust from the Global South and the urgent imperative to address climate change.
In September, world leaders convened in New York and committed to reforming the WTO with the aim of promoting sustainable development. The convergence of these goals demands difficult choices, where the EU should take bold action to safeguard strategic interests, advance environmental ambitions and promote economic well-being for all. Yet, the pressing question remains: are we, as Europeans, designing a trade policy that is genuinely fit to confront these unprecedented challenges or will we carry on with business as usual?
Domestically, the European Union cannot sustain its role as the singular bastion of trade liberalisation, driving unconditional openness as the sole avenue to prosperity. Defensive instruments, such as the Antidumping Regulation, must not only be retained but strengthened to counteract unfair competition from abroad. However, the EU should also pursue a proactive industrial policy, deeply revising State Aid rules to back industrial and agricultural sectors in their necessary transitions. We need to fundamentally rethink how we work, purchase, consume, and travel, leading digital and green transitions that improve quality of life and prepare us for future environmental scenarios. However, European families and businesses should receive greater financial support from the public sector so that these transformations do not depend on their will or capacity to undertake them.
Amid the erosion of multilateralism, a new, rule-based system under the WTO is imperative, evolving beyond the free-market orthodoxy towards a cooperative, climate-conscious, and development-oriented paradigm that serves both hemispheres.
On the one hand, such a framework should prioritise regional alliances with like-minded partners, fostering wealth redistribution both among and within nations. This would effectively boost shorter supply chains that reduce the carbon footprint of imports as well as supporting local manufacturers and agri-food producers, safeguarding our productive sectors and jobs. Instead, the EU seems to be taking the wrong direction in its latest decisions.
Vicent Marzà MEP, (Greens/EFA)
One crucial example lies in the EU-MERCOSUR trade agreement, now facing mounting opposition from agricultural organisations and trade unions on both continents. They argue that this deal could destroy European agriculture as we know it today, sacrificing health, labour and environmental standards in favour of corporate interests. Such agreements risk eroding trust and undermining the EU’s commitment to fair trade principles. Yet, the recent hearings from Commissioner-designates Ribera and Šefčovič echo too much of the status quo…
On the other, we should look into horizontal partnerships with the Global South that facilitate development, technology transfer, and workers’ wellbeing—without merely serving corporate interests. The EU must ensure its access to critical raw materials needed for the global green transitions, while recognising that developing nations need to be provided with opportunities for sustainable development. Nevertheless, the EU is still too willing to compromise its principles in the face of powerful economic interests. Just recently, EPP and Renew joined forces with far-right groups to delay the EU’s deforestation regulation, effectively enabling continued forest destruction to serve the commercial interests of large corporations. This move not only betrays environmental commitments and the EU’s moral standing on the subject, but also puts our lives at risk as we saw in València’s recent extreme floods. Similarly, instead of leveraging its financial resources to support human rights, the EU is providing financial assistance to Egypt’s military regime without demanding substantive commitments to the rule of law or democratic standards.
Europe’s ability to navigate these challenges will define not only its economic future but also the stability of global trade. The EU’s choices today will shape the resilience of international cooperation in the face of climate change, security concerns, and economic rivalry, setting the stage for a world where trade becomes a force for shared prosperity and sustainability. The road ahead demands a courageous departure from outdated practices, replacing short-term commercial gains with long-term commitments to justice, environmental protection, and economic equity.
Vicent Marzà MEP, (Greens/EFA)
