Debate: Outcome of the Commission’s review of the -point action plan on trade and sustainable development
Date: WEDNESDAY, 5 OCTOBER 2022
Speaker: Margaritis Schinas
Language: EN

We gave this approach a big boost three years ago, when we published the 15—point TSD review action plan. But we need to do more. The Commission believes the outcome strikes the right balance between our sustainability ambitions and the new geopolitical reality between supporting economic growth and promoting values.  I would like to commend the European Parliament and Bernd Lange, author of the report, for their strong contribution and support. I would also like to take the opportunity here, also on behalf of my colleague Valdis Dombrovskis, to address the questions that you cover in your resolution.  The biggest focus of the review is on implementation and enforcement. While our approach should remain centred on cooperation and engagement, there may be circumstances where sanctions are warranted as the last resort for serious violation of core labour standards and material breaches of the Paris Agreement. Concerning the methodology to determine the appropriate sanctions, the Commission intends to apply the same approach to TSD as to other breaches of FTA obligations.  The outcome of the TSD review will be reflected in future negotiations and in ongoing negotiations as appropriate. We already delivered in our agreement with New Zealand, concluded in June, including on sanctions.  As regards your interest in a draft modal chapter, the Commission believes that we should not necessarily follow one single template. This does not mean that we will lower our level of ambition, but that we will take account and prioritize specific needs with specific partners.  Implementation roadmaps will also play a key role. We can agree on roadmaps tailored to the needs of our partner countries, with clear timelines and milestones. We also want to increase coordination at EU level. We need to overcome silos when it comes to implementation. We are in all this together – all Commission services, EU institutions and Member States.  The Commission welcomes, in particular, the active role of this House in implementing the new TSD approach. The process of negotiation and of implementation of the trade agreements will also allow for the contribution of civil society. The majority of the actions can be deployed right away, including in our existing agreements. These would include identifying country-specific sustainability priorities and strengthening EU domestic advisory groups (DAGs). Beyond TSD chapters, it is important to mainstream sustainability in every section of trade deals. For example, we need to look at opening new markets for the import and export of green goods and services, raw materials and the avoidance of trade barriers. We should also identify sustainability priorities, even before negotiations begin, including through our sustainability impact assessments.  I would also like to mention the concerns you raised regarding possible violations of human and environmental rights in relation to access to raw materials. The Commission believes that access to raw materials and energy can be done in a way that respects human rights, labour rights and the protection of the environment, but also benefits local communities in third countries, to ensure that we have specific commitments in our FTAs on the respect of multilateral labour and environmental standards, but also dispute settlement mechanisms which will address and include sanctions in a satisfactory way.