Trade and international relations

European businesses face increasing geopolitical tensions, high energy costs, substantial regulatory burdens, and growing protectionism.

The EU must act now to maintain its position as a global trade leader. With 85% of global growth occurring outside Europe, the EU cannot afford to fall behind. Yet, only 46% of EU trade in goods and services is covered by trade agreements. With the U.S. and China accounting each for around 27% of EU trade, the EU also needs to strengthen its ties with other countries. More must be done to secure new trade agreements, enforce existing ones, and prevent unfair competition.

New generation of bilateral arrangements

To increase resilience and competitiveness of its economy and trade and investment flows, the EU must pursue an ambitious diversification strategy. This should be done through a range of different tools like trade agreements and partnerships on digital, critical raw materials and mutual recognition. The EU must swiftly finalise key free trade agreements with Mercosur, Mexico and Australia, and accelerate negotiations with India and ASEAN countries like Indonesia, Malaysia, Thailand and the Philippines. Tailoring the approach to the level of development of partner countries may be necessary at times.

Balancing openness with economic security

The EU’s Economic Security Strategy must be rooted in the principles of openness and competitiveness and strike the right balance between economic and national security objectives. Conducting a thorough assessment of the risks the EU is exposed to is a first necessary step. At a time when companies big and small face many challenges, any policy instrument that imposes restrictions on businesses must be precise, proportionate and predictable, designed through prior consultation with the private sector and only used as a last resort.

Relations with the U.S. and China

As the EU’s two most important trading partners, the United States and China provide business opportunities and jobs across Europe. Navigating the relationships with these two large economies can be challenging at times. The EU should work on strengthening these relationships by cooperating as closely as possible on trade and investment, as well as on global challenges like climate change. At the same time, the EU must defend its economic interests staying united and utilise available policy tools at European level. In cases of trade tensions, disputes and irritants, it is imperative that the EU seeks solutions through negotiation.

BusinessEurope representatives travel regularly to both Washington D.C. and Beijing for high-level discussions with business representatives and government officials.

Supporting the WTO and multilateral trading system

A strong World Trade Organization (WTO) is of key importance for European business as it establishes the rules for free and fair trade with the global market at large

The EU must remain committed to the WTO and ensure its future sustainability. We expect the EU to continue its efforts to reform the WTO Dispute Settlement System, and work to preserve existing multilateral rules, including those on intellectual property. Making the moratorium on customs duties for electronic transmissions permanent is another priority. We advocate for plurilateral deals within the framework of WTO on topics such as e-commerce, and trade and environment.

Beyond the WTO framework, the EU should work with like-minded partners to create modern rules on state subsidies, ensuring free and fair competition for all companies across the globe.

A forward-looking EU trade policy

Europe’s economic strength depends on a proactive, creative and forward-looking trade policy. We are committed to ensuring the EU remains competitive, open, and resilient in the face of global challenges.