2023 promises a high level of tension in the area of trade policy for various reasons. First and foremost, there are final negotiations on numerous trade agreements, which are to be observed critically, especially from the perspective of sustainability. The potential acceleration of the entry into force of already concluded trade agreements by splitting off the investment part is also explosive from a democratic policy perspective.

Following the EU Commission’s presentation of a Directive proposal for an EU Supply Chain Law on 23 February 2022, the Council of the EU agreed on a general approach on 1 December 2022. Even though this agreement is an important step within the legislative process, from AK’s point of view the Council’s position is not ambitious enough.

In view of the still broad resistance against the conclusion of the EU-Mercosur Agreement, the EU Commission plans to split association agreements in the future. At the moment, this would primarily apply to the EU-Mercosur Agreement, where the controversial trade section could come into effect in spite of justified criticism and without the approval of individual national governments and/or parliaments.

International trade relations can play an important role in the move towards a green and more just global economy. This is the view given by the EU Commission in its Communication on the power of trade partnerships presented on 22 June 2022. Even though the proposals named therein take up longstanding demands, at the same time they fall short in view of climate change and global inequality as established by AK in its current position paper.

In June 2022, the European Commission reflected on its approach to sustainability chapters in free trade agreements in a communication. It states that procedural improvements are needed in some areas and, with the sanctionability of violations of sustainability chapters, also takes up a long-standing demand of AK. At the same time, however, the Commission does not want to make any fundamental changes to its trade policy. In view of the necessity of the socio-ecological restructuring of the economy to combat the climate crisis, these should have top priority.

On 19 September 2022, the EU Commission presented a Single Market Emergency Instrument (SMEI). Its focus will be on preserving free movement of goods, services and people as well as ensuring availability of essential goods and services in the event of future emergencies.

On 14 September 2022, the EU Commission presented a draft regulation, according to which products, which were made with forced labour, are to be banned from the European market. What Ursula von der Leyen had already announced in her 2021 State of the Union Address, has now been set in motion, albeit twelve months later. It is now up to the EU Parliament and the Council to negotiate the draft submitted.

In early 2022, the EU Commission proposed a supply chain law that would hold companies accountable for violations of human rights and environmental standards. But this is just the first step, as the proposal still has major gaps. This is why, in September 2022 the new Europe-wide campaign “Justice Is Everybody’s Business” started. As one of more than 100 participating organizations, AK EUROPA supports the campaign goal for more justice for people along corporate supply chains.

On 6 September 2022 – coinciding with the latest negotiating round on the EU supply chain law in the European Council - a new campaign started under the headline “Justice Is Everybody’s Business”. Displaying the “Scales of Justice” in front of the main entrance of the Council building, numerous representatives of the more than 100 participating organisations, among them AK EUROPA, drew attention to the campaign’s demand to guarantee justice for people who suffer damage by bad business practices.

At least 10 percent of global deforestation is associated with importing and exporting products in and out of the EU. A new EU law shall prevent this deforestation in future. On 12 July 2022, the EU Parliament’s Committee on Environment has clearly supported a tightening of the Commission proposal on deforestation-free supply chains. In contrast, the Council as the second legislator of the Union, has severely watered down the Commission proposal.