Trade
“The political relationship between us is underpinned by an immensely strong economic partnership. Trade and investment are the bedrock of Transatlantic relations.”
– Peter Mandelson
EU Trade Commissioner
The European Union's economic and trade policies aim to make the EU the strongest, most competitive single economy in the world. Together, the European Union's 25 (27, as of January 1, 2007) members represent just 7% of the world's population, but they account for more than a fifth of global imports and exports. To maximize their influence on the international scene, on trade matters EU members speak with one voice. Under EU rules, the EU institutions (notably the Council of the EU and the European Commission) have exclusive competence on all Common Commercial Policy issues (tariffs, free trade agreements, etc). Thus, the European Commission negotiates all EU-wide trade agreements and represents European interests on behalf of the Union’s Member States at bilateral and multilateral levels, including within the WTO (World Trade Organization).
How does the European Commission regulate trade internally?
EU Member States have removed all tariffs on trade, while having unified tariffs on imports from outside the EU: Member States maintain a “common external tariff.” This means that the same tariff is paid on products regardless of which EU country is the entry point to the EU market, and once customs procedures are complete, goods can be shipped throughout the EU without additional duties. The achievement of this “customs union” in 1968 is one of the EU’s earliest milestones.
External Trade Policy
Externally, the EU’s basic philosophy is to open its market to trading partners who do likewise, with preferential treatment for developing and least-developed countries. Because harmonization of trade policies was central to European integration, the EU has been a key player along with its trading partners in the successive rounds of international negotiations on trade liberalization. The EU has played a leading role within the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization. The EU also took an active role in launching the latest round of international trade negotiations, known as the Doha Development Agenda. The role of the European Commission is to negotiate on behalf of the EU Member States in WTO, regional and bilateral negotiations.
European Commission Delegation, Washington, DC, Staff
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