In 2022 the value of EU trade under free trade agreements with global partners exceeded €2 trillion for the first time. euros, as found in the 3rd Annual Report on the Implementation and Enforcement of EU Trade Policy published today.

According to the European Commission report trade with our top 20 partners with which the EU has a trade agreement increased by around 30% on average in 2022. Also, the Commission, in cooperation with its Member States and businesses EU, secured the lifting of more than 30 trade barriers in 19 countries. The removal of barriers over the past five years helped to unlock €7 billion in EU exports in 2022 alone. Our agreements have also ensured stronger protection of the environment and labor rights.

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

Trade agreements support exports, resilience and diversification

Trade agreements have continued to deliver economic growth and more resilient supply chains in the following ways:

Creating new export opportunities for EU producers and farmers: for example, under the respective trade agreements, EU pharmaceutical exports to Vietnam increased by 152%, exports of cars and spare parts to South Korea by 217%, exports of of EU meat to Canada by 136% and EU services exports to Canada by 54%. EU trade supports 670,000 small and medium-sized EU businesses exporting to third countries.
Strengthening export resilience to external shocks: In 2022, exports to preferential partners of EU products subject to sanctions increased by €174 billion, more than offsetting the loss of €27 billion in exports to Russia.
Ensuring access to important inputs and reducing over-dependence on a single country: in the first five years of the EU-Canada Agreement (CETA), Canadian imports of critical raw materials into the EU increased by 56%, while imports of the same materials from other sources only increased by 25%, thus contributing to the EU’s differentiation strategy from Russia. Critical raw materials are essential for the green and digital transformation of the EU economy.

Removal of barriers and progress on trade disputes

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

For example, the US modified permanent barriers to imports of sheep and goat products, and Costa Rica removed the 10% tax it had imposed on beer imports from the EU for ten years.

Dispute resolution at the World Trade Organization continued. The EU has taken four new disputes to the WTO, for the first time against the UK, over its discriminatory green energy subsidy scheme. The dispute was resolved within just four months by reaching a mutual agreement. The EU has also vindicated its dispute with Turkey regarding discriminatory practices in pharmaceuticals and is currently monitoring Turkey’s compliance path.

Promoting sustainability

The EU also made progress on labor and environmental issues thanks to its agreements that included a chapter on trade and sustainable development. As part of this policy, Japan and South Korea ratified key ILO conventions in their respective trade agreements with the EU. Deepening cooperation with Peru and Colombia prompted these countries to proceed with the revision of their respective labor codes.

George Fellidis