EU's Rush for Trade Deals Sparks Climate and Labor Backlash
Global trade now accounts for roughly a quarter of the world’s greenhouse gas emissions. Over the past three decades, neoliberal policies have also weakened job security, deepened inequality and undermined democratic controls. Yet despite growing concerns, the EU continues to push new trade agreements at speed—even as critics warn of worsening climate and social impacts. For 30 years, neoliberal globalisation has reshaped economies in ways that benefit the top 1% while leaving many workers in precarious conditions. Low-skilled jobs have shifted to countries with weaker labour protections and lower wages, with little economic compensation for those displaced in Europe. At the same time, trade rules—including those enforced by the World Trade Organization—block policies that might favour European firms, tying governments’ hands on key economic decisions.
The EU Commission has accelerated negotiations on new trade deals, framing them as a response to rising far-right influence and geopolitical pressures. Recently, however, EU lawmakers from the Greens and Social Democrats voted against a legal review of the controversial Mercosur agreement—a deal they had previously opposed. This shift reflects a broader trend: some trade unionists, Green politicians and progressive NGOs now back trade agreements they once rejected, citing 'geopolitical necessity' as justification. Critics argue that these deals further limit policymakers’ ability to address climate change or support those harmed by globalisation. Trade-linked emissions already drive a significant share of global warming, while the legal frameworks of new agreements risk locking in policies that deepen environmental and social instability.
The push for new trade agreements continues despite evidence of their role in climate breakdown and labour exploitation. With political space for alternative policies shrinking, the EU’s approach risks entrenching a system that prioritises corporate interests over environmental and social protections. The outcome could leave workers and vulnerable communities facing even greater challenges in the years ahead.
