Title EU Trade Policy_updated 2025.04.17.pdf ✅

EUROPEAN UNION TRADE POLICY SUMMARY BRIEFING December 2024
EU trade policy has been characterised by a commitment to open and free trade, promoting growth and employment. Since the 1980s, the European Commission has prioritised market access and trade liberalisation, focusing on reducing tariffs and non-tariff barriers, except in the area of trade defence. Several factors underpin this approach, including Member States delegating liberalisation to the EU level, business lobbying, bureaucratic expansion, and the belief in the mutual benefits of international trade. EU trade policy adheres to the precautionary principle, prioritising safety when potential risks to the environment, health, or safety are identified. European Union Trade policy - December 2024 The EU’s trade policy manages trade in goods and services, foreign direct investment, intellectual property (e.g., patents), and public procurement. It operates through three main pillars: Policy evolution & milestones 2 Treaty of Paris Established the European Coal and Steel Community (ECSC), creating a common market for coal and steel among France, West Germany, Belgium, the Netherlands, Luxembourg, and Italy. It abolished customs duties, taxes, subsidies, and discriminatory measures, ensuring free movement of goods. The Treaty also set up a High Authority, the forerunner of the European Commission, to oversee the market and enforce compliance. 1951 Trade agreements Negotiated with non-EU countries to create new market opportunities for EU companies. Designed to protect EU producers from unfair competition, such as dumping and subsidies. The EU participates in setting international trade rules, negotiating on behalf of its member states. Trade regulation World Trade Organisation membership © EU Training | All rights reserved. No part of this publication may be reproduced or shared by any means. © EU Training
Policy evolution & milestones 3 Treaty of Rome Established the European Economic Community (EEC) and a common market based on the four freedoms: free movement of people, goods, services, and capital. The Treaty also created a customs union, eliminating customs duties and equivalent charges between Member States while introducing a common external customs tariff. The common commercial policy (CCP) Emerged during the 12-year transition period (1957–1969), aligning with the General Agreement on Tariffs and Trade (GATT). Prevented "free-rider" issues by ensuring that third-country exporters could not exploit low tariffs in one Member State and benefit from free movement throughout the union. Member States pooled their resources and transferred trade competences to the supranational level, strengthening the Community’s bargaining power in international trade. The Role of the CCP Empowered the European Commission to propose, negotiate, and implement trade policies. Became increasingly important with the expansion of global trade in the 1970s, the EU's enlargements, and the consolidation of the single market in 1986. The European Court of Justice (ECJ) Reinforced the CCP with the landmark 1971 judgment in the European Agreement on Road Transport (ERTA), introducing the doctrine of implied powers. This doctrine, codified in Article 3(2) of the Treaty on the Functioning of the European Union (TFEU), granted the EU exclusive competence to conclude international agreements affecting common rules. 1957 European Union Trade policy - December 2024 © EU Training © EU Training | All rights reserved. No part of this publication may be reproduced or shared by any means.