Why the EU Demands a New Trade Deal Now
The European Union’s trade commissioner, Maroš Šefčovič, told POLITICO on Tuesday that negotiations with China have yet to produce a concrete agreement. He warned that without a deal, Europe risks losing thousands of jobs and undermining its social model. The remarks came during a press briefing in Brussels, where the commissioner emphasized the urgency of reaching a settlement.
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The commissioner argued that Europe’s social fabric depends on stable employment in sectors ranging from automotive to renewable energy. „We cannot afford a scenario where thousands of jobs disappear because of an unbalanced trade relationship,” Šefčovič said. He pointed to recent data showing that EU exports to China have grown by 12 % over the past year, while imports of Chinese goods, especially low‑cost electronics, have surged, creating competitive pressures on European manufacturers.
Can the EU and China Bridge Their Trade Divide?
The EU’s negotiating position also reflects concerns about state‑owned enterprises receiving preferential treatment in China, which the commissioner described as „distorting competition.” He called for clearer rules on subsidies and stronger protections for intellectual property. In response, Chinese officials have signaled willingness to discuss these issues but have asked for concessions on EU agricultural standards, a point the EU has so far resisted.
Both sides acknowledge that a comprehensive agreement would benefit global supply chains, yet fundamental disagreements persist. The EU seeks greater market access for its services sector, while China pushes for reduced tariffs on its exports. Šefčovič warned that prolonged deadlock could trigger retaliatory measures, such as anti‑dumping duties, which would raise prices for European consumers.
He also highlighted the broader geopolitical context, noting that trade talks cannot be isolated from security concerns, especially regarding technology and data flows. „Our approach is holistic,” he said, „combining economic interests with strategic safeguards.” The commissioner urged Chinese negotiators to move beyond rhetoric and present concrete proposals within the next few months.
If the impasse continues, European industries may face increased competition, potentially leading to plant closures and job losses. Conversely, a breakthrough could stabilize markets, protect jobs, and reinforce the EU’s role as a global trade partner. The coming weeks will test whether diplomatic flexibility can overcome entrenched positions.
Frequently Asked Questions
What are the main obstacles to a EU‑China trade deal? Key issues include market access for services, subsidies to Chinese state firms, intellectual‑property protections, and differing standards on agriculture and digital trade.
What could happen if talks fail? The EU may impose anti‑dumping duties or other trade remedies, which could raise prices for consumers and strain broader diplomatic relations.
When is the next round of negotiations scheduled? Official dates have not been set, but both sides have indicated a desire to reconvene before the end of the year to avoid further economic fallout.
