Rikki Stancich

Ethical Corporation website (www.ethicalcorp.com)

23 November 2004

Incoming European trade commissioner Peter Mandelson took up his post yesterday amid heckling from campaigners brandishing a giant puppet, accusing Mandelson of having “strings that are pulled by European lobby groups and multinationals”.

Campaigners’ criticism of Mandelson was fuelled by his first day’s agenda. He addressed an assembly of business lobby groups organised by the Foreign Policy Centre to promote trade liberalisation.

Voicing concerns over the vulnerability of European Union trade policy to corporate influence, campaigners lambasted the choice of Mandelson for trade commissioner, in light of what they describe as his “established reputation for being close to business”.

More than 100 civil society groups from across Europe have signed a letter and presented it to the incoming president of the commission, José Manuel Barroso, demanding immediate action to curb the excessive influence of corporate lobby groups over EU policy-making.

Campaigners argue that too often business enjoys privileged access to the European Commission. They are calling for greater transparency in trade negotiations at the European and at the international level.

As a strong supporter of trade liberalisation – but “only when combined with sustainable development and social justice for the poor in developing countries” – Mandelson’s belief that “free trade is a precondition for fair trade” has been met with howls of disbelief from NGOs.

Criticism has stemmed from the new trade commissioner’s lack of strategy on achieving his vision of a “benign form of globalisation”. Critics argue that Mandelson has failed to propose any realistic changes that could reduce the north-south wealth divide or support fairer trade.

One group of MEPs described Mandelson’s line on trade liberalisation, delivered to the European Parliament in October, as “development- friendly rhetoric, designed to meet the expectations of the audience”. They argue that so far there has been no concrete proposal for change that might deliver greater consideration of social and environmental issues.

Referring to movements such as the Transatlantic Business Dialogue and the European Service Forum, campaigners warned that Mandelson’s predecessors, including Leon Brittan and Pascal Lamy, cultivated close co-operation between trade negotiators and businesses.

Erik Wesselius of Corporate Europe Observatory said: “When in office, Peter Mandelson should urgently break with this tradition of secretive corporate influence over EU trade policy and actively support the introduction of EU legislation on transparency and ethics for lobbyists at the EU institutions.”

Alexandra Wandel, of Friends of the Earth, concurred, saying: “It is essential that [Mandelson’s] role is not tainted by connections with big business – and that the whole process of trade policy within Europe is made more transparent and accountable.”