Date Posted: 2019-07-17
Bridging the Divide: Exploring the Potential for Common Ground Between the EU and China on Trade
The trade relationship between the European Union and China is a critical component of the global economic landscape, characterized by significant interdependence, but also by persistent challenges and areas of disagreement. Identifying potential avenues for cooperation and shared interests is essential for fostering a more stable and productive partnership. A report by Bruegel examines the potential for the EU and China to find common ground on trade, offering insights into the key negotiation points, policy options, and strategic considerations that could pave the way for a more harmonious and mutually beneficial relationship.
Despite the tensions and disputes that often dominate headlines, the EU and China share a number of fundamental interests in the area of trade. Both sides benefit from maintaining a stable and open global trading system, and both have a stake in addressing global challenges such as climate change, economic instability, and pandemics. Building on these shared interests is crucial for strengthening EU-China trade relations and for promoting a more prosperous and interconnected global economy.
One area where the EU and China could potentially find common ground is in promoting multilateralism and reforming the World Trade Organization (WTO). Both sides have expressed support for the WTO and its role in promoting free and fair trade. They could work together to reform the WTO to make it more effective and responsive to the challenges of the 21st century. This could include modernizing the WTO’s rulebook, strengthening its dispute settlement mechanism, and addressing issues such as subsidies, state-owned enterprises, and digital trade.
Another area where the EU and China could cooperate is in promoting sustainable development and addressing climate change. Both sides have committed to reducing greenhouse gas emissions and to promoting sustainable development. They could work together to develop new technologies and policies to promote green trade and investment, such as renewable energy, energy efficiency, and sustainable agriculture. They could also collaborate on setting common standards for environmental protection and promoting sustainable supply chains.
The EU and China could also find common ground in addressing issues such as intellectual property rights and market access. While these issues have been a source of tension in the past, both sides have an interest in finding solutions that are mutually beneficial. The EU could offer China technical assistance and support in strengthening its intellectual property rights regime, while China could offer the EU greater market access for its goods and services. This could include reducing tariffs, removing non-tariff barriers, and streamlining regulatory procedures.
The Bruegel report suggests that the EU and China can find common ground on trade by focusing on shared interests and by engaging in constructive dialogue. This requires a willingness to compromise and to address each other’s concerns in a fair and transparent manner. The EU and China should also avoid taking unilateral actions that could undermine trust and cooperation. By fostering a spirit of collaboration and mutual respect, the EU and China can build a stronger and more sustainable trade relationship that benefits businesses and consumers on both sides. The key lies in recognizing the shared benefits of trade and in working together to address the challenges and disagreements that inevitably arise in such a complex and dynamic relationship.
– Davide Pena –
