The Commission’s view of globalisation
Very good paper by the Commission on the challenges of globalisation. The challenges are tremendous but a lot of the solutions are already there.
From a trade perspective, I read between the lines that the idea that something needs to be done about China approach to globalisation is gaining traction among the EU establishment. This is a crucial and necessary debate. The biggest global economic development in the last 20 years was the rise of China. The biggest challenge in the next 10 years might well be how the world adapts to it.
In terms of concrete actions, this could lead to increasing use of trade defence instruments and reciprocity in public procurement. The more liberal EU members have so far been able to block past Commission proposals moving in that direction, but this might not last long: With the UK out of the picture and Paris pushing for liberalism à la française, blocking minorities will become increasingly unsustainable. Berlin has been under the impression that China’s commitment to free trade is mere lip service for a while.
Exciting times ahead in the trade world.