PETER MANDELSON set out his vision of a European Union trade policy yesterday that rejects protectionism at home and opens up lucrative markets in Asia and South America.

The new strategy is designed to adapt the EU’s rules to the realities of globalisation and phenomena such as outsourcing, and argues for more aggressive measures to remove the barriers facing European exporters.

The European Trade Commissioner said: “The core message is rejection of protectionism at home and activism in opening markets abroad. Europe needs to import. It cannot argue for openness from others while sheltering behind barriers of its own.”

Mr Mandelson rejected suggestions of double standards as he presented his blueprint just hours after EU member governments had agreed to impose anti-dumping duties of up to 16.5 per cent on cheap shoes from China and Vietnam.

“It is very important if we stand up for free trade that we keep in place proper defences against unfair trade,” he said. However, in a warning to protectionist forces within the EU, he maintained that these would not be used “to fight low-cost competition”.

While insisting that successful completion of the stalled Doha development round of international trade negotiations remained his top priority, Mr Mandelson set out other routes that he wants the Union to take.

He is calling for greater use of bilateral free trade agreements with key trading partners, notably South East Asia, Korea and South America.

After attacking tariff barriers to trade, the commissioner believes the EU should focus on less physical obstacles. These range from a lack of protection for European companies’ intellectual property rights to an outright ban in parts of the world on tendering for public procurement contracts.

Non-governmental organisations reacted strongly against the policy shift. Oxfam accused it of paying “little more than lip service to development” and said that it would “undermine multilateralism and increase poverty and inequality”.

Commissioner's EU trade aims

Review EU’s trade defence instruments. Green Paper later this year. EU Governments must agree to any change in the EU’s current trade policy

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