Brussels – France and Germany seek a trade shield for the EU

France and Germany have proposed that the European Union create a new rapid-response mechanism against countries that harm the bloc’s economic interests, at a time when trade is increasingly being used as an instrument of political pressure, according to Reuters.

German officials said the EU needs a powerful tool, comparable to U.S. Section 301 tariffs or Chinese restrictions on rare-earth mineral exports.

The proposal does not directly target any particular state, but practices that distort competition, such as dumping, extensive state subsidies and restrictions on currency convertibility.

In a joint document, published ten days before an EU summit at which the trade imbalance with China is also expected to be discussed, the two countries warn that systematic and persistent market distortions threaten the European economy and its industrial base.

France and Germany are asking the EU to use its existing trade defence instruments more quickly and more efficiently, by developing more investigations and expanding measures so that they can cover entire sectors.

According to them, the European response should be faster to practices that can cause job losses and weaken the continent’s industry.

The two countries also ask the European Commission to propose as soon as possible two new economic security instruments. The first would aim to limit European companies’ dependence on a single source for critical supplies, while the second would make it possible to restrict access to the single market for countries that harm fair competition conditions through political or economic means.

According to the document, the countermeasures proposed by the European Commission could be approved through a procedure under which they would enter into force if not opposed by a qualified majority of member states.

Berlin aims for the new mechanisms, if created, to be activatable very quickly, potentially within a few days.

However, the relevant legislation would still require the approval of EU governments and the European Parliament.

An adviser to the French president said action is urgent, as imbalances with some trade partners have become unsustainable.

Paris and Berlin are asking the EU to move away from what they consider “naivety” in trade policy and to use its instruments more decisively to protect European industry and the bloc’s economic security.