'Buy Europe', would it work?

According to the Financial Times, the EU is drafting a ‘Buy European’ initiative that will mandate members to procure only European goods and services in their public procurement for strategically important sectors. It seems that France and Italy are at the forefront of trying to convince other members.

It is said that biotech, aerospace, defense, ICT, and energy are the main candidates that will be added to the initiative. I am sure it would take a while for the EU members to reach an agreement on the final list as the members have different needs and interests.

The world has changed dramatically. If anyone made a similar attempt 10 years ago, I am sure he would be summoned by WTO for violating the global consensus of free trade. However, the world’s hegemony has shifted to protectionism and WTO is no longer taken seriously. I wouldn’t be surprised if Europe would start using MEGA (Make Europe Great Again) as its official slogan.

But it is still questionable if ‘Buy European’ would operate in the way the EU intends. ‘Buy European’ means nothing until ‘Make European’ is a success. If it goes wrong, then the EU could end up being surrounded by outdated products from expensive and sluggish local companies that will become increasingly bureaucratic. Perhaps the EU should position itself as the last protector of free trade for strategic advantage and protect just a few critical industries.

Also, I am still doubtful if the EU can come up with an initiative that all members will support. There are nearly 30 members in the EU and they all have unique industry portfolios.

One thing is clear though. The era of WTO is finished.