German and European trade policy must achieve more success in negotiations for trade agreements. This is what Lisandra Flach, trade expert at the Ifo Institute, says. The negotiations should not be jeopardized or blocked by sustainability demands. ““The global dynamics have changed fundamentally,” says Flach. “If Europe wants to continue to play a role as a global player in the future, it should recognize the new geopolitical situation and take a more pragmatic approach to trade agreements.”
Today, African, Asian and South American countries would have a choice between increasing trade relations with the EU or increasing trade with countries like China. “Even if climate and environmental protection as well as human rights are essential goals, careful consideration should be given to how these can be achieved most sensibly. Integrating too many sustainability requirements into trade agreements can prove to be counterproductive because, unlike the EU, China does not pay attention to climate protection and human rights in its trade relations,” says Flach. “In view of increased international competition and declining economic weight, the EU must pool its market power and act in a coordinated manner to make the internal market more attractive for foreign companies and start-ups.”
