Despite a wish by MEPs to pursue a bilateral deal with Taiwan business groups, the EU Commission warned that any embrace of Taipei could jeopardise already tense relations with China.
Europe’s attempts to get its way have been complicated by the election of left-wing and Peronist governments across South America, most notably Lula da Silva’s Workers Party in Brazil and Alberto Fernández’s Justicialist Party in Argentina.
It speaks well for the UK that it does not follow the EU’s very restrictive approach. Perhaps its recent modest successes will inspire the UK to focus more on the opportunities offered by Brexit.
Mercosur members agree on rejecting the EU’s environmental conditions, but are divided on allowing members to negotiate bilaterally to open up their market, as Uruguay is trying to do.
If and how Europe deals with reducing its reliance on China is a defining issue of the decade, as a new EU strategy launched this week envisions greater controls on foreign investments into the bloc and the flow of technology.
Not threats of sanctions but mutual trust should drive the strategic partnership, Lula said, referring to the environmental clause the EU tried to include in the Mercosur trade deal.
Fundamentally, the core of the problem is the EU’s adherence to the precautionary principle, which comes with a deeply unscientific intolerance for any risk.
