# EU recovers appetite for trade in green industry push Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-30 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU Trade Push for Green Tech Future Meta Description: Learn about the EU's ambitious plan to secure supplies, increase green exports, and reduce reliance on China through trade deals. Stay competitive with URL: https://financedigest.com/eu-recovers-appetite-for-trade-in-green-industry-pushhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-30t122241z2lynxmpej0t0hertroptp4eu-trade-1736814526565-compressed.jpg) By Philip Blenkinsop BRUSSELS (Reuters) – The European Union is aiming to enact up to five trade deals in record time to ensure its future as a clean tech leader, by securing supplies of key raw materials, increasing markets for green exports and reducing its reliance on China. A big EU trade push is a key part of its “Green Deal Industrial Plan” to ensure the bloc remains a manufacturing hub able to compete with the likes of the United States, whose new green subsidies law has concerned many in Europe. European Commission President Ursula [von der Leyen](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") will present the plan on Wednesday. [Trade Commissioner Valdis Dombrovskis said multiple](https://www.financedigest.com/wto-sees-subpar-2023-trade-growth-with-multiple-risks.html "WTO sees “subpar” 2023 trade growth with multiple risks") economic shocks, including the COVID-19 pandemic, Russia’s invasion of Ukraine and increased protectionist tendencies, had sparked an EU-wide debate about competitiveness. “This debate has evolved into a wider reflection on whether the EU should remain outward-looking or turn further inward,” he told lawmakers, adding he believed the bloc drew its strength from being a “trading superpower”. A year ago, EU diplomats said France, which then held the six-month rotating presidency of the EU, [halted moves to progress trade deals](https://www.financedigest.com/citi-halted-financing-for-trafiguras-nickel-deals-in-october-bloomberg.html "Citi halted financing for Trafigura’s nickel deals in October – Bloomberg") lest concerns about globalisation disturb its presidential and legislative elections. Open trade advocates Sweden and Spain, the [current and next](https://www.financedigest.com/yen-trims-gains-as-possible-next-boj-governor-says-current-policy-appropriate.html "Yen trims gains as possible next BOJ governor says current policy appropriate") EU presidency holders, both hope to revive the trade push. Together, the five deals being [targeted could be worth about 10 billion euros](https://www.financedigest.com/euro-zone-inflation-seen-just-above-ecbs-target-in-2025-poll-shows.html "Euro zone inflation seen just above ECB’s target in 2025, poll shows") ($10.9 billion) to the EU and help cement its market share and influence in the Americas and Asia-Pacific region, according to Hosuk Lee-Makiyama, director of trade think tank ECIPE. Andre Sapir, a senior fellow at the Bruegel [think tank](https://www.financedigest.com/new-uk-pm-must-be-radical-to-stop-power-bill-catastrophe-think-tank.html "New UK PM must be radical to stop power bill catastrophe – think tank"), said the EU’s free trade agreements often came in waves, with more protectionist periods in between. Geopolitical [developments and access to raw materials are providing](https://www.financedigest.com/patsnap-partners-with-wipo-to-provide-developing-countries-with-access-to-rd-analytics.html "PatSnap partners with WIPO to provide developing countries with access to R&D analytics") the extra impetus now,” he said. LITHIUM LEADERS CHILE, AUSTRALIA Von der Leyen has said Europe needs to build up its own refining of raw materials and work with partners [including the United](https://www.financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unit.html "StanChart weighing options, including sale, of aircraft lessor unit") States to strengthen supply chains and reduce dependence on China, which dominates rare earth and lithium processing. The U.S. Inflation Reduction Act, which seeks to make the United States a [leader in green](https://www.financedigest.com/leaders-recognise-the-importance-of-green-transport-at-cop27-but-we-need-data.html "Leaders recognise the importance of green transport at COP27, but we need data") technology, possibly at Europe’s expense, has intensified this need. The Commission, which negotiates trade agreements on behalf of the 27 EU members, highlights that an updated [deal with Chile it agreed in December could give](https://www.financedigest.com/germany-signs-deal-to-give-ownership-of-benin-bronzes-to-nigeria.html "Germany signs deal to give ownership of Benin Bronzes to Nigeria") Europe better access to lithium, a key component of vehicle batteries. Chile is the world’s second-largest lithium producer. The EU sees similar promise from another [trade agreement with Australia](https://www.financedigest.com/how-to-begin-investor-trading-in-australia.html "How to begin investor trading in Australia"), the largest lithium producer, which both sides believe could be concluded mid-year. LATIN AMERICA OPENINGS The EU executive has negotiated a number of trade deals, but the [process of approving](https://www.financedigest.com/emvco-streamlines-approval-process-for-mobile-payment-devices.html "EMVCo Streamlines Approval Process for Mobile Payment Devices") them has been painfully slow. The bloc’s most recently implemented trade agreements, with Singapore and Vietnam, took four to five years to clear the [European Parliament and EU governments](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report.html "European governments spend half a trillion euros on energy crisis – report"), although the fast-tracked EU-Japan accord took 18 months. Agreements with Mexico from 2018 and with the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay from 2019 are on hold. Now, the European Parliament and EU governments may [approve as early as mid-year a deal struck only in June](https://www.financedigest.com/uk-mortgage-approvals-hit-lowest-since-june-2020.html "UK mortgage approvals hit lowest since June 2020") 2022 with New Zealand and follow that up with a green light for the Chile agreement, EU officials say. Consent could follow for the 2018 agreement with Mexico, assuming [Mexico accepts splitting the deal](https://www.financedigest.com/volkswagens-mexico-factory-workers-reject-union-pay-deal.html "Volkswagen’s Mexico factory workers reject union pay deal") in two, part of which could be fast-tracked in Brussels. The planned [Australia deal could also be pushed](https://www.financedigest.com/australia-steps-up-vaccine-push-to-stem-covid-19-outbreak.html "Australia steps up vaccine push to stem COVID-19 outbreak") through if it is agreed by mid-2023. Finalising the free trade agreements, broadening our network of free trade agreements is going to be high on our agenda this [year and next,”](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns") Dombrovskis told a briefing earlier this month. The Commission, which negotiates trade agreements for the 27 EU members, said Luiz Inacio Lula’s defeat of Jose Bolsanaro in October’s Brazilian presidential election had [created a window of opportunity to revisit the Mercosur agreement](https://www.financedigest.com/aon-announces-agreement-to-acquire-risk-management-firm-creating-a-comprehensive-cyber-risk-management-advisory-group.html "Aon announces agreement to acquire risk management firm, creating a comprehensive cyber risk management advisory group"). “We cannot miss the chance with Lula,” a senior Spanish diplomat said. The deal has been on hold due to EU concerns about Amazon deforestation and demands for [sustainability commitments](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability"). Lula has vowed to tackle rainforest deforestation, but trade analysts [say reviving the EU-Mercosur deal](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says") will still require tough negotiations. “It was certainly impossible for the EU with Bolsanaro, but it’s also complicated now for the Mercosur side,” Sapir said. ($1 = 0.9184 euros) (Reporting by Philip Blenkinsop; Editing by Catherine Evans) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---