France-led group of five EU countries urges tougher trade defense tools against China
France, Italy, Spain, the Netherlands and Lithuania have jointly called on the European Commission to use tariffs and other defensive measures more aggressively to counter what they describe as abusive trade practices by major trading partners, implicitly targeting China. In a non-paper shared with the Commission on Friday, the five countries proposed more frequent safeguard investigations, a new “resilience tool,” and adding “economic security” as a criterion for opening trade defense probes. The push comes as Brussels prepares an internal strategy debate on the competitive threat from China next Friday.
France, Italy, Spain, the Netherlands and Lithuania have jointly called on the European Commission to deploy tariffs and other defensive measures more aggressively against what they describe as abusive trade practices by major trading partners, implicitly targeting China.
The five countries issued a joint non-paper, shared with the European Commission and other member states on Friday, urging the EU to “contemplate more frequently the opportunity to open safeguard investigations in case of sector-wide trade disruptions.” The document, first reported by the Financial Times, proposes adding “economic security” among the criteria assessed when deciding whether to open trade defense probes that can result in tariffs and other sanctions. “This approach would help preserve the Union’s remaining production capacities in strategic sectors and value chains, thereby protecting the Community’s industrial base,” the signatories wrote.
The non-paper also calls for a new “resilience tool” — a cross-sector trade defense instrument that could be activated when no other tool is applicable — and proposes allowing the Commission to apply anti-subsidy duties directly on companies, rather than only on countries and products as under current rules. The five countries urged the EU to “be more proactive” in bringing breaches of trade rules before the World Trade Organization and to allocate more human resources to its investigative units.
While the document does not explicitly name China, it cites “systemic and structural industrial overcapacity” and “new trade barriers” by major trading partners. The push comes as the European Commission is due to hold an internal strategy debate on the competitive threat posed by China next Friday.
French President Emmanuel Macron on Friday called on the EU to take inspiration from the United States on trade measures to protect strategic industries. France has identified tackling “global imbalances” — including China flooding the world with its exports — as the top priority for the G7 summit it will host in Evian-les-Bains on June 15.