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Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

(Bloomberg) --

As the U.S. and China struggle to agree a ceasefire in their trade war, Europe’s own pro-commerce stance still looks unshakable.

The European Union has won greater public support for opening global markets through a push that has accelerated over the past five years, according to a new survey of its citizens. But the bloc can’t afford complacency as it navigates Brexit and seeks to enact recent trade agreements that still face popular resistance.

To gauge public sentiment toward international trade, the European Commission canvassed the views of more than 27,000 people across all 28 EU countries. The data, which were collected in May and are the first of their kind since 2010, were published this week.

The commission, the EU’s executive arm, is due to present the results of the survey at a meeting of the bloc’s trade ministers on Thursday in Brussels.

Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

Concerted efforts by the commission over several years to promote the benefits of free trade and stem an anti-globalization tide appear to have won support among EU citizens, with 60% of those surveyed saying they benefit from cross-border commerce.

That global push, led by outgoing EU trade chief Cecilia Malmstrom, is politically important for the bloc as it seeks to defend one of its central policy powers, prepares for Brexit and battles to uphold the rules-based international order.

Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

The survey shows that consumer is indeed king. While the commission has sought to stress the large number of EU jobs tied to international trade, its benefits for shoppers top the reasons for public support at 54% -- way ahead of employment at 10%.

Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

But free-trade advocates shouldn’t celebrate too much. While the EU’s global market-opening drive has produced big wins since 2014 with several blockbuster free-trade agreements, the bloc still faces appreciable public skepticism about such deals.

In a clear sign of the rocky road ahead for ratifying the draft EU accord with the Mercosur group of Argentina, Brazil, Paraguay and Uruguay, concerns about international trade relate to its impact on the environment, European jobs and product quality.

Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

Meanwhile, the traditional divide in the EU between northern countries that tend to be strong supporters of free trade and southern nations that are more lukewarm is clear to see in the survey. Respondents in Italy, Greece and Romania lead the group of skeptics.

Trade Turmoil Leaves EU Unshaken With Wide Support for Commerce

Asked about future priorities for EU trade policy, citizens cite the economy -- but increasingly also regulatory standards. While most respondents say its goals in years ahead should be to create jobs, 50% now list the protection of EU environmental and health standards as a priority.

To contact the reporters on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net;Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Craig Stirling

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