Plenary Speech on EU-China investment treaty

Mr President, it is the right time to open negotiations on a direct investment treaty between the EU and China to substitute the current 26 existing bilateral treaties between China and EU Member States. EU-China trade has drastically increased over the past couple of years. However, total EU investments in China are seven times larger than vice‑versa, and at the same time European businesses need new capital. That is why we should remove investment barriers and agree on clear rules of the road. China has indicated that the market access chapter could be included in a direct investment agreement, which is a precondition for opening the negotiations. There is a large list of current obstacles for European companies looking to do business in China – whether it is discrimination, complex tariff structures or technical barriers to trade – and this should end. As a member of the WTO, China is bound to open its markets, enable a level playing field and allow fair competition. This will eventually also benefit European consumers and businesses, particularly SMEs. As I mentioned, I support the negotiations but urge for strict criteria for transparency, respect for human rights, environmental laws and labour standards. These should be a crucial part of any agreement. Goods that are made in labour camps should fall outside of the scope of a new deal, and the EU should insist that human rights and the rule of law feature more prominently on the political agenda of the annual EU‑China Summit. If these demands are not met, I am sure that this Parliament will not endorse such an agreement.