The Committee on International Trade adopted an own-initiative report by Maria ARENA (S&D, BE) on the impact of international trade and EUs trade policies on global value chains.
Global value chains (GVCs) have become a key element of the global economy. They can help developing countries to better integrate into it, reduce poverty and improve employment, while having a positive effect on increasing their production capacity. However, their complex nature and lack of transparency may lead to a higher risk of human and labour rights violations, factual impunity for environmental crimes and large-scale tax avoidance and tax fraud.
EU position within global value chains: stressing that trade and investment policy aims to create a level playing field for European businesses and facilitate upward convergence on standards, the report called on the Commission to:
Members considered that further integration of the EU into global value chains must not be to the detriment of the European social and regulatory model and the promotion of sustainable growth.
They called on the Commission and the Member States to adopt reinforced trade defence instruments to combat unfair commercial practices, taking into account social and environmental dumping.
Multilateralism: the Commission is called on to work within the WTO to enhance transparency and to define multilateral trade rules, in particular with regard to the sustainable management of GVCs, which should include in particular:
Corporate responsibility: highlighting the links between human rights and trade, Members welcomed the initiatives taken by the private sector that have enabled the sector to be involved in improving supply chain standards in recent years, including greater respect for human rights and workers rights.
The European Commission is invited to update its Corporate Social Responsibility (CSR) strategy, which aims to strengthen social and environmental standards, insisting on the integration of CSR provisions into trade and investment agreements negotiated by the EU. Members also called for a new ways to support private-sector efforts to make global value chains more sustainable.
EU free trade agreements (FTAs) and global value chains: Members welcomed the EU's new trade and investment strategy entitled Trade for All. They called on the Commission to address issues related to the development of GVCs, taking into account, for example, the following measures:
The report also called for:
Lastly, Members welcomed the Commission's desire to protect the entire spectrum of IPRs, including patents, trademarks, copyrights, designs, geographical indications (GIs), marking of origin and pharmaceutical products, while ensuring access to affordable medicines, both at WTO level and through FTAs.