A French-German non-paper could be a turning point in EU trade defense
France and Germany released an informal diplomatic document, or non-paper, urging the EU to strengthen its trade-defense, economic security, and industrial-policy toolbox in response to global imbalances and market distortions. The paper appeared days before EU Trade Commissioner Maroš Sefčovič travelled to Beijing and a week before EU leaders were due to debate potential new protective measures. It proposes a new tool to impose tailor-made trade and other remedies against coercion or retaliation from third countries, activatable by the European Commission unless a qualified majority of member states opposes it, and does not name China anywhere.
Why it matters: The paper's call to expand the EU's trade-defense and economic-security instruments matters because its country-neutral wording leaves open their use against any trading partner, including the United States.