Unlocking the Value: A Comprehensive Analysis of EU Trade Agreements and Their Impact on Businesses in 2022
The Third Annual Report on the Implementation and Enforcement of EU Trade Policy, which was released in November 2023, states that in 2022, the value of commerce between the EU and its international partners via free trade agreements topped €2 trillion for the first time.
According to a survey by the European Commission, trade growth with our top 20 trading partners averaged over 30% in 2022. In collaboration with EU companies and Member States, the Commission also removed more than thirty trade restrictions in 19 different nations. In 2022 alone, 7 billion euros in EU exports were made possible thanks to the five years of barrier-breaking efforts. Additionally, our agreements have strengthened worker rights and environmental protection.
Trade agreements are critical for the EU’s economic security. They support jobs, growth and innovation, help us respond to geopolitical shocks, and reduce critical dependencies. Strengthening our focus on implementation and enforcement has generated billions in savings for our exporters as well as delivering stronger protection for environment and labour rights – meaning we are delivering even more value from our trade deals
Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade - 15/11/2023
With 74 nations participating in trade agreements, the EU has the greatest network of accords in the world and accounts for 44% of all EU commerce. With the exception of energy items, trade between the EU and its trade agreement partners surpassed trade with all other countries in 2022. These agreements have aided in maintaining investment and commerce amid a challenging international economic climate marked by escalating geopolitical risks, such as Russia's actions against Ukraine.
Trade agreements encourage diversity, resilience, and exports.
Trade agreements kept generating stronger supply networks and economic development by:
giving EU producers and farmers new export opportunities: for instance, under the relevant trade agreements, EU exports of pharmaceuticals to Vietnam increased by 152%, EU exports of automobiles and parts to South Korea by 217%, EU exports of meat to Canada increased by 136%, and EU exports of services to Canada increased by 54%. 670 000 small and medium-sized EU companies that export to third countries are supported by EU trade.
Increasing the exports' resistance to external shocks: The €174 billion increase in EU shipments of items subject to sanctions to preferred partners in 2022 more than made up for the €27 billion decline in exports to Russia.
Gaining access to vital inputs and minimising over-reliance on one nation: during the first five years of the EU-Canada (CETA) agreement, imports of essential raw materials into the EU increased by 56%, while growth in imports of these materials from other sources only reached 25%. This development supported the EU's diversification strategy away from Russia. Essential raw resources are needed for the EU economy to undergo digital and ecological revolutions.
Taking down obstacles and resolving conflicts
Thirteen trade obstacles were lifted in 19 partner countries by the Commission in 2022. In crucial industries like agri-food, medicines, and health and beauty, this increases EU exports.
Examples include Costa Rica eliminating its ten-year 10% charge on beer imported from the EU and the US lifting long-standing restrictions on the entry of sheep and goat products.
At the World Trade Organisation, dispute resolution proceeded. Over an unfair green energy subsidy programme, the EU started four new complaints, the first of which was with the United Kingdom. After only four months, a mutually agreeable solution was reached to this disagreement. In addition, the EU won its battle with Turkey about discriminatory practises in medicines, and it is now keeping an eye on Turkey's efforts to comply.
Under those accords, which include a chapter on trade and sustainable development, the EU also achieved headway on labour and environmental concerns. Japan and South Korea ratified fundamental ILO conventions as part of this process, which was anticipated in their respective trade agreements with the European Union. Revisions to labour rules have been initiated by Peru and Colombia as a result of increased interaction with these nations.
For Further Details
Value of EU trade deals surpasses €2 trillion - IP/23/5742, see the Report, Staff Working Document, the Brochure & Foreword by EVP Valdis Dombrovskis
4-In-1 Support Services: How to get more support
1. Customs & Global Trade Updates (Fee Subscription): www.customsmanager.info
2. Customs & Global Trade Consultancy & Advice (Free First Call): https://www.customsmanager.org/consultancy
3. Customs & Global Trade Training & Education: https://www.customsmanager.org/education-training
4. Compliant & efficient UK Customs Clearance: https://www.customsmanager.org/customs-agent
Connect with us on socials
Get in Touch
· Website: www.customsmanager.org
· E-Mail: email@example.com
About Customs Manager’s Customs & Global Trade Intelligence Services
The Premium Professional Legislative Monitoring Service (PLM) is a research and curation service which checks for legislative updates from official government websites based on the selected jurisdictions and topics. Paid Plan subscribers can access regular law change notifications to ensure they never miss a significant legal change on www.customsmanager.info – a website dedicated to customs & trade intelligence. At the same time, they save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all content on the Customs Manager’s Ltd. website, including our Customs & Trade Blog on www.customsmanager.info , providing vital thought leadership development services to empower them to trade effectively, efficiently and, of course, compliantly, across borders. Premium Subscribers can add jurisdictions and topics for an additional charge.
About Customs Manager Ltd.
We aim to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly wherever you want to go. Includes Brexit support and the ability to lodge customs declarations and making sense of rules of origin, customs classification and customs valuation to make but a few.
Customs Manager Ltd. owns the copyright in this document, except for external documents and links we refer to or make available.
You are not allowed to use this information in any way that infringes its intellectual property rights. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Paid Plan subscriber to the Customs Managers’ Customs & Trade Intelligence service, also known as Professional Legislative Monitoring (PLM). As a Paid Plan subscriber, you may download and print this information which you may then use, copy or reproduce for your internal non-profit-making purposes. However, you are not permitted to use, copy or reproduce this information to profit or gain. In addition, you must not sell or distribute this information to third parties, not members of your organisation, whether for monetary payment or otherwise. This information is intended to serve as general guidance and not constitute legal advice. The application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking action, consult a Customs Manager Ltd. professional.
In no circumstances will Customs Manager Ltd be liable for any decision made or action taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.