Is Mandelson schizophrenic on free trade?

By PDS | 3 May 2005

The EU is the world's biggest importer and second biggest exporter of agricultural products. Peter Mandelson, the EU Trade Commissioner, believes that further opening of trade for agricultural products is an important contribution to sustained and continued economic growth for all countries.

But on an increasing number of issues Mandelson in practise is falling far short of his promise. He went to the Commission spouting free trade rhetoric, in practise he seems to be either unable to further his stated liberalising pro-growth agenda, or unwilling to take on the vested interests of European producers seeking protection from competitors. What has happened to the Mandelson who was to be a free trade champion of Europe's citzens against those with a vested interest in the old corrupt protectionist Brussel's ways?

A case in point is the decision by the European Commission to launch an investigation into Chinese textile imports to the EU in nine product categories, the nine product categories to be covered by the investigation are: T-shirts, pullovers, blouses, stockings and socks, men's trousers, women's overcoats, brassieres, flax or ramie yarn and woven fabrics flax. The investigation was launched on Friday April 29 and will last for a maximum of sixty days. The only parties invited to cooperate in the investigation are manufacturers, producer associations in the EU, suppliers, traders-importers, exporters and industry users. (Its ironic that within days of threatening protectionist moves against Chinese textile exporters, Mandelson proposes consideration of a EU-ASEAN Free Trade Agreement.)

Europe's 300 million consumers are not to be asked if they want to pay higher prices for the clothes they wear. The commission does not seem to care to hear their view - why not? If the only voices to be listened to are those of vested interests, whose interest will be favoured by the outcome of the investigation?