Trade Policy

EU trade policy is designed to help implement the main values and objectives of the economic community. But the trade instruments and regulations have to be adapted again and again. For the EU, trade policy is a key policy tool to achieve its goals. But it is also a value in itself. Free trade between nation states is one of the cornerstones of the EU. With a population of around 447 million, the EU is a lucrative target market. Imports are correspondingly important. However, the EU is also the world's largest exporter. The EU Commission estimates that around 35 million jobs in the EU depend on exports. Accordingly, the EU attaches great importance to supply chains. A supply chain law is therefore to provide a legal framework to guarantee environmental protection as well as human and children's rights in this context. All relevant news on this topic is available from the Table Media editorial team.What does EU trade policy entail?EU trade policy is based on three values. Openness, sustainability and assertiveness. Accordingly, it pursues three goals. First, trade policy supports the transformation of the economy toward greater ecology and a digital transformation. Second, it aims to make globalization sustainable and fair. The third goal is the ability to assert and pursue one's own interests and rights.These three guidelines in the EU's trade policy are intended to help address current challenges. For example, the EU wants to use them to drive economic recovery after the Corona pandemic, minimize the effects of climate change, minimize environmental damage, reduce international tensions and support the EU's geostrategic goals. These extensive tasks also show the enormous importance of Europe's own trade policy. What are the institutions in which EU trade policy is conducted?The most important institution of EU trade policy is the World Trade Organization(WTO). It monitors and coordinates the regulation of trade and economic relations. The WTO aims to reduce trade barriers and strengthen international free trade. In the event of trade disputes, it intervenes in a conciliatory capacity. In principle, world trade law cannot be applied directly in the EU. However, the EU member states have undertaken to align their national laws with the objectives of the WTO.The United Nations Conference on Trade and Development (UNCTAD) is also an important institution in trade policy. It is a permanent body of the UN General Assembly. UNCTAD promotes trade between countries with different levels of development and communication between the countries of the North and the South. European trade policy is exclusively in the hands of the EU: legal and trade issues are only enacted by the EU institutions, not by the individual member states. However, the EU Council does not pass laws until they have been ratified by the nation states. What trade instruments does the EU have?For the EU, free trade agreements are the most important trade instrument for opening up markets in third countries. They are designed to eliminate trade barriers such as tariffs and strict import regulations. Another tool of trade policy is sanctions options. In the trade dispute with China, the EU has adopted an instrument that can automatically respond to coercive measures. Possibilities include the suspension of preferential tariffs or a restriction on access to public contracts.The EU therefore maintains a great many trade agreements with non-European countries. The EU has concluded a total of 37 trade agreements or is currently negotiating them. Some of these are with only one other country, some with several, and some are not country-specific, such as the Energy Charter Treaty, the E-Commerce Agreement or the Green Goods Agreement. The EU's most important projects include agreements with:China Great Britain New Zealand Australia Mexico Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) Japan Canada Vietnam SingaporeWhat is EU trade law?EU trade law regulates the various aspects of European trade. For exports, for example, EU trade law regulates export credit insurance, export controls and common export regulations. For imports, EU trade law applies to import regulations and laws governing the import of certain goods from certain non-EU countries. EU trade law is also responsible for trade protection. For example, it regulates anti-dumping measures and the EU's ability to enforce international trade rules.EU trade law also includes investment protection agreements, international trade rules, partnership agreements with various countries, the EU Customs Code and agreements on various products. In addition, EU trade law intervenes in disputes between foreign investors and the EU government. Trade law also regulates competition in air transport and its safeguarding. What are the laws on trade in the EU?In order to achieve the goals of trade policy, there are important laws and directives in the EU trade policy. Due to the current challenges in the area of trade with China or Russia, global warming and the economic situation after the Corona pandemic, key laws are being adapted. The EU is reforming its key trade regulations. These include the regulations on foreign direct investment, the anti-dumping law and the trade protection instruments.This reform is intended to avert damage from certain trade practices by foreign entities to European manufacturers and companies. The laws on direct investment are intended to protect important European technologies from a strategic threat. A new legal framework will allow closer scrutiny of investments from third countries in the future. The anti-dumping law prevents goods from entering the EU that are kept artificially cheap by the government of their country of origin through subsidies. The safeguard instruments reduce the risk of a harmful increase in imports from third countries. News about EU trade policyThe great importance of free trade in Europe already shows the great position that trade policy has in the EU. EU trade agreements and the various trade instruments are always a central part of the economic news. Imports and exports depend on them. However, due to the political and economic situation, there are always adjustments. Table Media's editorial team has all the news on this topic.