FES-DGB-Study: Competitive International Partnerships

Huge Promises, Too Little Substance

Although such partnership agreements are a political priority, the study shows that they lack legal force, are fragmented, non-transparent, and, above all, underfunded. Drawing on insights from a series of workshops with our progressive partners in the key regions of Africa, Asia, and Latin America, the study emphasises that progressive partners welcome the new partnership approach in principle but call for Germany and the EU to take their pledges of mutually beneficial partnerships for more sustainable development seriously.

If partnerships on an equal footing with vast promises are announced, they must also be implemented as such in practice. As the workshops also noted, if the EU fails, it risks becoming less credible and antagonising potential partners, thus driving them into the arms of the other major powers with which the EU is currently competing.  

More EU Competitiveness Requires More Attractive Partnerships

The study clearly indicates how the EU needs to act to be competitive: Declarations of intent made to date must be backed up by tangible industrial policy instruments and appropriate funding. That is the only way to stimulate local economies, for example by priming the pump for a shift to local value creation, and to attain sustainable development for partner countries.

In addition, these principles should be extended to trade and investment agreements, which have greater legal force but currently still all too often run counter to the new partnerships’ ambitions. Last but not least, partnerships should be accompanied by viable, legally binding, inclusively determined human rights and sustainability provisions for European companies. This includes, for example, maintaining effective EU legislation on supply chains which already addresses partners’ concerns effectively.

The way forward

The study identifies four core areas for reform to make the EU’s partnerships more successful, resilient, and competitive vis-à-vis Europe’s geo-economic rivals in future:

1. EU and German policy instruments should be structured more coherently within the new partnership approach.

2. Partnerships should be supported through specific industrial policy measures to strengthen partners’ local economies.

3. A more inclusive approach to decision-making and more participation should safeguard partnerships on an ongoing basis and boost their legitimacy.

4. Comprehensive protection of human rights and environmental rights is crucial to attain resilient and mutually beneficial partnerships in the long term.

These recommendations are relevant for both the new European Commission and the recently elected German government. Berlin and Brussels wish to continue deepening and expanding partnerships in the new legislative period, but also face economic pressure to move in this direction, given the current fragile world order.

The EU’s new Clean Trade and Investment Partnerships in particular represent a huge opportunity for much-needed reforms. At the same time, negotiations are underway at the European level that may, in future, jeopardise the EU’s Corporate Sustainability Due Diligence Directive. In this context, the study, drawing on valuable partner insights, also highlights the Directive’s significance for the future of partnerships.