Premiere: Value of EU trade agreements to exceed euro2 trillion in 2022

The value of EU trade through free trade agreements with global partners exceeded euro2 trillion for the first time in 2022, according to the European Commission's third annual report on the implementation and enforcement of EU trade policy.

The report, published yesterday, highlights the fact that trade with the main 20 signatory partners of trade agreements increased by almost 30% on average in 2022. The Commission, in collaboration with Member States and EU businesses, also eliminated over 30 barriers to trade in 19 countries.

Efforts to eliminate these barriers during the last five years contributed to unlocking seven billion euros in EU exports in 2022 alone, notes Agerpres. The agreements also contributed to better protection of the environment and workers' rights.

The EU has the largest network of trade agreements in the world, with 74 countries, representing 44% of the EU's total trade. In 2022, trade between the EU and its trade agreement partners (excluding energy products) exceeded the EU's trade with all other partners. These agreements have helped support trade and investment in a difficult global business environment, characterized by ever-increasing geopolitical challenges, such as Russia's aggression against Ukraine.

Trade agreements have continued to generate economic growth and more resilient supply chains by: opening up new export opportunities for EU producers and farmers. For example, under the respective trade agreements, EU exports of pharmaceuticals to Vietnam increased by 152%, of cars and spare parts to South Korea - by 217%, EU meat exports to Canada - by 136%, and exports of EU services to Canada - by 54%. EU Trade supports 670,000 small and medium-sized EU businesses that export to third countries.

It has also increased the resilience of exports to external shocks: in 2022, EU exports of goods subject to sanctions to preferential partners increased by euro174 billion, far offsetting the euro27 billion lost in exports to Russia. In addition, it secured access to important factors of production and reduced excessive dependence on a single country: in the first five years of application of the EU-Canada Agreement (CETA), EU imports of critical raw materials from Canada increased by 56%, in compared to an advance of only 25% of these products from other sources, contributing to the EU's strategy of diversifying supply sources by including suppliers other than Russia. Critical raw materials are essential for the green and digital transformation of the EU economy.

In 2022, the Commission achieved the removal of 31 barriers to trade in 19 partner countries, helping to boost EU exports in important sectors such as agri-food, pharmaceuticals and health and beauty.

Examples include the US changing long-standing import barriers to sheep and goat meat products, as well as Costa Rica's removal of a 10% tax on imported EU beer.

According to the report, the dispute settlement activity within the World Trade Organization continued. The EU has launched four new disputes, including a first with the UK, over a discriminatory green energy subsidy scheme. This dispute was settled by mutual agreement after only four months. The EU has also prevailed in its dispute with Turkey regarding discriminatory pharmaceutical practices and is currently monitoring Turkey's compliance measures.

The EU has also made progress on labor and environmental issues in agreements that include a chapter dedicated to trade and sustainable development. As part of this activity, Japan and South Korea have ratified the main International Labor Organization conventions contained in their respective trade agreements with the EU. Closer collaboration with Peru and Colombia led these countries to launch new labor code revisions.