EU trade commissioner Mandelson

economy - Mandelson defends EU textile position

After securing a deal with China on the textile quota (that still has to be approved by the EU members) EU trade commissioner Peter Mandelson gave today a speech on globalisation to the Central Party School in Beijing, adding a few details to the textile debate that have been ignored in the Western media, as he complains.

You would never know it, on the basis of reading the European press, but the European Union remains the second largest exporter of textiles in the world. This surprising fact contradicts the view of those who see globalisation, and the rise of and in particular, as the swamping of European markets by low cost producers. The truth is Europe can compete in the new world, but it involves a process of restructuring and adjustment in which there will inevitably be losers as well as winners within the EU itself. But it was always thus, given that economic dynamism, technological change and human creativity are the source of Europe's high levels of prosperity.

It sounds like a legitimate defense, but I do wonder why he only comes up with it after the negotiations ended. Mandelson portraits himself as a 'free-trader', an image that did not emerge so clearly in the past few weeks.

But I operate in the sphere of practical politics not pure economic theory. I have to recognise and manage public pressures, and try to reconcile them when they clash. We all know that the textiles issue is particularly sensitive. I had no choice last June but to find some temporary relief for European producers who, for whatever reason, were against the wall.

Update: The Times in London agrees that Mandelson has not done enough to save his reputation. He is no party for his US or Chinese counterparts, the British daily says:

When it comes to political pedigree, even Mr Mandelson cannot compete with Bo Xilai. He is a communist “princeling”, son of a vice-premier who was one of the Eight Immortals — revolutionary veterans who wielded enormous power in the 1980s and 1990s.

Aside: the interesting thing is that British media mainly follow their British commissioner, while the Dutch focus on their Nelie Kroes. Guess that other European media suffer from the same disease: they do not look at the issues, but see it more as a soccer game where individual commissioners are supposed to keep a keen eye on their national interests.