France and Germany Propose Faster EU Response to Trade Disputes

France and Germany are proposing that the EU create a rapid response mechanism for cases in which foreign companies gain an advantage in the European market through state support or artificially low prices. Under their proposal, it should be possible to respond to such cases within a matter of days.

Emmanuel Macron and Friedrich Merz sent the proposal to European Commission President Ursula von der Leyen. The document does not name any specific country, though much of the problem it describes is linked to trade with China. The issue will also be discussed by EU leaders at an upcoming summit.

France and Germany identify as problems the entry of goods into the EU market at extremely low prices, large state subsidies granted to foreign companies, and restrictions on the free exchange of currency. They are also calling for a faster response regarding imports of chemical products, PET plastic and hybrid vehicles.

The proposal covers two main areas. On one hand, the EU should reduce its dependence on a single country for goods that are of major importance to the economy and industry.

On the other hand, it should become possible to impose certain restrictions on access to the EU market for countries whose policies put European companies at an unfair competitive disadvantage.

Adopting these changes will require the support of EU member states and the European Parliament.

Source: Reuters