Growing tensions in trade relations between the superpowers, coupled with protectionism, meaning the protection of domestic production from foreign competition, also represent a challenge to the European economy. In this situation, the EU must defend the multilateral trading system and resist new trade barriers.
Pursuing an ambitious, open and rules-based trade policy is the best way to enhance the EU’s competitiveness and its status as an attractive trading partner. To support economic growth and employment in Europe, the EU needs to open new markets and strengthen its common rules.
The EU is the world’s largest exporter of manufactured goods and services. EU trade with the rest of the world has more than doubled in the past 20 years, and now accounts for a third of the EU’s GDP. International trade brings citizens substantial benefits in terms of prosperity and wellbeing.
The EU has a common commercial policy, defined jointly by the European Commission, the member states as represented by the Council, and the European Parliament. Under the common commercial policy, the Commission negotiates trade agreements on behalf of the EU and on the basis of a negotiating mandate granted by the member states. Trade agreements negotiated by the Commission are only adopted once they have been approved by the Council and the European Parliament.
EU2019FI backgrounder: An ambitious, open and rules-based trade policy
Council of the EU: EU trade policy
European Commission: EU trade negotiations and agreements