Agenda
The European Union is the world’s biggest trading partner, accounting for 17% of global imports and exports of goods and commercial services.
Over the next two years [2013-14], 90% of world demand will be generated outside the EU. That is why it is a key priority for the EU to open up more market opportunities for European business by negotiating new Free Trade Agreements with key countries.
Institutional Structure
Directorate-General for Trade
The European Commission is divided into several departments and services. The departments are known as Directorates-General (DG’s). The European Commission’s Directorate-General for Trade helps through the EU’s trade policy to secure prosperity, solidarity and security in Europe and around the globe.
EU Trade and WTO
The World Trade Organisation’s (WTO’s) highest decision making body is the Ministerial Conference, which meets at least every two years. The EU Trade Commissioner represents the EU in this forum. The Commission represents the EU in the General Council of the WTO, which acts on behalf of the Ministerial Conference and meets on a regular basis in different configurations.
Budget
The EU budget is directly or indirectly affected by the change in the external trade relations of the EU. Historically, the budget was not created to be a proactive tool in the international trade arena. The linkages to trade were restricted to the raising of revenue for the budget or exporting excess production in the agricultural sector via subsidies.
History
Promoting easier trade between Europe and the rest of the world has been one of the most significant roles of the EU Commission since the European Community was founded in 1957. The EU represents its member states in World Trade Organisation (WTO) negotiations and has a responsibility for promoting free trade.
Trade policy is an exclusive power of the European Union (EU). This means that the EU, and not individual member states, negotiates international trade agreements. The European Commission negotiates with the trading partner on behalf of the whole EU but does so in close cooperation with the Council and European Parliament who ultimately approve the overall agreement.
EU-US Trade Relationship
The relationship between the US and Europe has historically been about diplomacy. But in these economically-straitened times, the focus on foreign policy has shifted. Indeed, negotiations on a bilateral trade accord are set to be at the heart of the relationship between the US and the EU in the second term of US President Barack Obama's administration.
Current status
Importance
Trade has never been more important for the European Union's economy. In today's difficult economic circumstances, it has become an important mean of achieving much needed growth and creating jobs without drawing on public finances. It is the conveyor belt that links Europe to the new global growth centres and is a unique source of productivity gains.
Environmental Issues
On environmental issues, the European Union had ambitious goals for the work of the WTO’s Committee on Trade and Environment, but its wide-ranging agenda ran into considerable opposition by other countries. However, the European Union is still convinced that trade and the environment are central aspects of the wider goal of sustainable development on a global basis.
Sustainable Growth
The over-riding aim of European economic policy is faster growth. Only sustained economic growth can create more jobs and safeguard our welfare state. But lifting the growth potential of our economies will be a major challenge - a challenge taken up by the Europe 2020 triple objectives of smart, inclusive and sustainable growth.
Developing Countries
The EU has been a strong supporter of attempts to ensure that the Doha Round, which is the trade-negotiation round aiming to facilitate global trade, reflects the realities and concerns of developing countries. Developing countries pay 60% of the tariffs they pay to other developing countries. This is why the EU has argued that the strongest developing countries such as China, India and Brazil, who are increasingly competitive and who have benefited from open global markets, should make some contributions in the form of new tariff reductions.
Key Policies
Trading Bloc
The EU constitutes the largest trading bloc in the world. Excluding intra-EU trade, exports of the Union accounted for 18.1% of world merchandise exports in 2004. The United States and Japanese shares were 12.3% and 8.5% respectively.
Trading Scheme
The European Union Emission Trading Scheme (EU ETS) is the world’s first multinational cap-and-trade system for greenhouse gases. As an agreement between sovereign nations with diverse historical, institutional, and economic circumstances, the EU ETS can be seen as a prototype of an architecture for an eventual global climate regime.
EU Trading Partners
Among China’s main trading partners, the European Union continued to be China's largest trading partner, according to the General Administration of Customs.
Key Figures
Merchandise imports
China ranks as the biggest merchandise imports partner with 16.2-18.5 % of all EU27 merchandise imports (imports excluding intra-EU trade) from 2010-2012.
Main Players for International Trade
EU27, China and the United States rank as the three main players for international trade in 2011.
Miscellaneous
Considering its geography, its history and globalisation the European Union is still very dependent on the maritime transport. Nearly 90% of its external trade and more than 40% of its internal trade goes by sea; on the whole nearly 2 billion tons of freight are loaded and unloaded EU ports each year; maritime companies belonging to European Union nationals control nearly 40% of the world fleet; the majority of EU trade is carried on vessels controlled by EU interests; and finally the maritime transport sector - also including shipbuilding, ports, fishing and related industries and services - employs some 3 million people in the European Union.
Transition to Globalisation
Impact of Environmental Regulations on Trade in the Main EU Countries: Conflict or Synergy?
According to our estimates, membership of MEAs (Multilateral Environmental Agreements) in 1988-2008 had a positive impact on EU14 exports ranging between 22 and 35%. Furthermore, it seems that joint membership of WTO/EU and MEAs had a further positive 'interaction effect' on EU15 exports. The results show the presence of a synergy, at least for EU members, between environmental regulations and trade flows.
Globalisation > Environment
Transition to Political Tools
Chinese Solar Producers Shift Production Abroad to Avoid EU Duties
Following EU imposed duties in the context of anti-dumping action, China plans to start selling solar panels manufactured in several different locations from South Africa to Istanbul in order to avoid import taxation. Trina Solar Ltd., JinkoSolar Holding Co. (JKS) and Canadian Solar Inc. (CSIQ) are among companies that plan to shift manufacturing abroad.
Political Tools > National > China > Ext. Policies > Trade
Transition to Political Actors
Africa’s Trade Unions Want EU Trade Agreements Scrapped
Africa's trade unions called on their governments to nullify the interim trade agreements they have signed with the European Union, saying they leave African nations "weak" within the global market.
Political Actors > Civil Society > Trade Unions > Regional > Africa
