Exporters Club warns of risks to competitiveness due to European Sustainability Directive

 

 

In an increasingly demanding international context regarding sustainability and human rights, the European Union has promoted a directive that seeks to ensure compliance with these standards in the value chains of companiesHowever, the implementation of this regulation has generated Concern at the Club of Exporters and Investors, who believe that it could have a counterproductive impact on the competitiveness of Spanish companies with international activity.

 

The president of the Exporters Club, Antonio BonetHe stated that "the Club reiterates its commitment to sustainability and respect for human rights, but we consider it essential that regulations be balanced and not create Structural disadvantages for European companies in the global market."

 

The report published by the Exporters Club details the possible negative effects of the directive. Firstly, it points out the cost increase which will mean for companies the implementation of due diligence procedures throughout their supply chainThis requirement implies a significant investment in human and technological resources, which could particularly affect small and medium-sized enterprises (SMEs).

 

 

The Club supports the French proposal to suspend the Directive indefinitely and calls for strengthening dialogue between the Administration and internationalized companies to ensure that European regulation does not hinder their development and competitiveness.

 

 

 

In addition, the directive establishes a regime of High penalties and civil liabilities in the event of non-compliance, which puts further pressure on companies and increases the risk of incurring additional costs.

 

Another worrying aspect is the competitive disadvantage that could generate for European companies compared to their third-country competitors, such as United States, Japan or China, which are not subject to the same obligations. This could limit the ability of European companies to compete on a level playing field in the global market.

 

There has also been a warning about the risk of possible trade retaliation by countries affected by the restrictions imposed by the directive. These measures could negatively affect the exports and investments of European companies in these countries.

 

The Exporters Club has also warned of the possible negative effects on developing countries, as many European companies could stop sourcing from emerging economies due to the demands of the management, which would affect its economic and social growth.

 

Finally, concern has been expressed about the possible distortion of the Single Market, since the lack of homogeneity in the transposition of the directive between Member States could generate imbalances and affect competitiveness within the European Union itself.

 

Given this situation, the Club of Exporters and Investors has defended the need for a review of the directive to avoid disproportionate economic and bureaucratic burdens that limit the competitiveness of the European companies.

 

The business organisation has also expressed its support for the French government's proposal to suspend the application of the directive and has asked the Spanish authorities to support this initiative. It has also proposed strengthening dialogue between the Administration and internationalised companies to ensure that European regulations do not hinder their development and competitiveness.