Trade agreements of the European Union

Trade agreements of the European Union

Trade agreements of the European Union

Overview of trade agreements in the European Union

Not to be confused with Free trade agreements of the European Union.

The European Union negotiates trade agreements on behalf of all of its member states, as the member states have granted the EU has an “exclusive competence” to conclude trade agreements. Even so, member states’ governments control every step of the process (via the Council of the European Union, whose members are national ministers from each national government):[1][2]

  • Before negotiations start, member states’ governments (via the Council of Ministers) approve the negotiating mandate;
  • During negotiations, member states’ governments are regularly briefed on the progress of negotiations and can update the negotiations mandate or suspend negotiations;
  • Upon conclusion of negotiations, member states’ governments decide whether the agreement should be signed;
  • After approval from the European Parliament and (in case the agreement covers areas other than trade such as investment protection) upon ratification in each member state parliament, member states’ governments decide whether the agreement should be concluded and enter into effect.
EU Trade agreements

  European Union
  Agreement in force
  Agreement provisionally applied
  Agreement signed, but not applied
  Agreement initialed, not signed
  Agreement being negotiated
  Agreement negotiations on hold/suspended

Trade agreements in force

More information State, No of jurisdictions represented …

Trade agreements provisionally applied

More information State, Signed …

Agreement signed (awaiting application)

More information State, Signed …

Agreements being finalised (negotiations concluded, but not signed)

More information State, Negotiations Concluded …

Negotiating new or modernised agreements

More information State, New or modernized agreement being negotiated …

Negotiations on hold

More information Country or bloc, Agreement being negotiated …

Obsolete agreements

More information Country or bloc, Agreement …

Competence

The European Court of Justice has held that investor-state arbitration provisions (including a dedicated tribunal planned by some free trade agreements) falls under competency shared between European Union and its member states and that for this reason, the ratification of such mixed agreements[99] should be approved by the EU as well as by each of the union’s member states.[100] This court decision has resulted in a new architecture of external trade negotiations which will have two components:[101]

  • a free trade agreement – related exclusively to trade matters – which can be adopted at the EU level;
  • an investment agreement – containing investment, arbitration and other non-trade provisions – which needs to be ratified by the member states as well.

Impact to consumers

One study found that the trade agreements that the EU implemented over the period 1993-2013 have, on average, increased the quality of imported goods by 7% and therefore “lowered quality-adjusted prices by close to 7%,” without having much of an impact on the non-adjusted price.[102]

See also

Notes

  1. Excluding the EU and its member states
  2. From 2021 under the provisions of the Brexit withdrawal agreement (Protocol relating to the sovereign base areas of the United Kingdom of Great Britain and Northern Ireland in Cyprus)
  3. Entry into force of Interim Agreement
  4. Interim Agreement
  5. Agreement on Trade, Development and Cooperation
  6. Decision of the EC-Turkey Association Council
  7. Includes Jersey, Guernsey and the Isle of Man with regards to trade in goods and fisheries. For Northern Ireland, a more comprehensive arrangement is in place with regards to trade in goods based on the Withdrawal Agreement.

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Free trade agreements of the European Union

Trade, Development and Cooperation Agreement