European system of multi-level governance
Reconciling the European system of multi-level governance and internal
sovereignty sharing with negotiating new generation FTAs remains a key issue.
Yet, the EU’s ability to conclude trade deals is also contingent on political
support. Rising scepticism about globalisation means, that (potential)
distributional effects of FTAs and their (potential) interaction with national
legislation, is going to feature more prominently throughout negotiations and in
the public debate.
FDI dispute resolution has proved one of the most controversial points in recent
trade negotiations. A more thorough reform of investment governance could
help to address some of the issues with the current system. The EU and
Canada have recently made the case for reform but an overhaul of the current
system would require substantive global cooperation.
The Trump campaign questioned the usefulness of current trade agreements.
Actions following words could easily trigger a slew of legal challenges ‒ both
domestic and at the WTO ‒ and cause serious economic damage.
EU Forecast
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