A storm of protectionism is blowing across Europe, now that the Covid-19 crisis is hitting trade and food production hard. Each country is dealing with the situation differently, not always abiding by EU regulations.
“France must become more independent”
In times of uncertainty, the first reaction is usually to want to protect what is close to us and to be wary of what comes from outside. Even French president Emmanuel Macron, normally a proponent of globalisation and free markets, has said that French agriculture and its food industry must become more independent and self-sufficient. French supermarkets had already promised to offer as much locally grown fruit and vegetables as possible.
Plenty of incentives to buy local are also to be found in Belgium: the Belgian fashion sector has even managed to be the only – or at least the first – European country to ban clearance sales until 1 August, in order to allow the industry to recover a little before the clearance sale period.
Italy counts on exports
It is interesting to note that the opposite is happening in Italy, as FoodNavigator reports. There, strategies to restore the Italian economy focus on exports, as Italians are looking abroad for much needed income.
Moreover, due to the health crisis and the ensuing economic recession, the country itself has a strong demand for cheap commodities, which ironically often have to come from abroad. There is currently less need for quality Italian foodstuffs such as cheese, cold cuts and wine. While the rest of Europe fills its cupboards with pasta, Italians stock up on beans and flour.
Is free trade crumbling?
There is nothing wrong with boosting the local economy, but European trade federations warn of the dangers of such protectionist tendencies. Quality, diversity and prices can all suffer from the erosion of the European Single Market and free trade. Already today, the movement of goods and the import and export of goods is hampered by the closure of borders and the partial cessation of activities, which leads to a steep fall in income.
As Fairtrade Belgium pointed out last week, one sixth of Belgium’s food imports come from developing countries. Without solidarity and a global vision, international supply chains risk collapsing, the association said.
Division within the EU
The EU is therefore divided, as the differences in corona measures in each country have already demonstrated. This now raises the fear that Member States will ignore EU internal market legislation and directives if they are found to contradict national interests, leading to further uncertainty, fragmentation and division.
Under pressure from the agricultural lobby, France has reportedly stopped abiding to EU rules on the labelling of the origin of primary ingredients. Recent legislation requires milk and meat producers to indicate the origin of cows, and with regard to cheese, for example, it cannot simply be called French if it is made with Belgian milk, but president Macron has decided not to comply. Will the single European market emerge stronger or weaker from the coronavirus crisis?
