EU foreign trade (2024)

FAQs

Why is the EU important to international trade? ›

The EU is responsible for the trade policy of the member countries and negotiates agreements for them. Speaking as one voice, the EU carries more weight in international trade negotiations than each individual member would. The EU actively engages with countries or regional groupings to negotiate trade agreements.

Facts and figures on the EU's position in global markets

The EU is the world's largest trader of manufactured goods and services.

International trade in Europe is dominated by the European Union, the world's largest trading bloc, with the European single market allowing companies in EU member states to trade across borders without facing trade barriers such as tariffs and quotas.

The aims of the European Union within its borders are: promote peace, its values and the well-being of its citizens. offer freedom, security and justice without internal borders, while also taking appropriate measures at its external borders to regulate asylum and immigration and prevent and combat crime.

The Free Trade Agreement, the Single Market and the economic union have lowered trade costs for the Member States, resulting in more trade between them. This additional trade generates economic benefits in the form of value added (value of exports minus costs) and economic growth.

Poland was the biggest monetary benefactor from the EU, coming out with 11.9 billion euros earned, far ahead of Greece (4.3 billion euros) and Hungary (4.1 billion euros). But being on top of this list doesn't have to send a country scrambling to leave the political union.

In total trade, China overtook the United States in 2020 and became the EU's largest trade in goods partner. However, in 2022 the United States retook the first position.

The economy of the European Union is the joint economy of the member states of the European Union (EU). It is the second largest economy in the world in nominal terms, after the United States, and the third largest at purchasing power parity (PPP), after China and the US.

The EU negotiates trade agreements on behalf of the member states – including Ireland. These agreements deal with preferential duty rates on the shipment of goods between the EU and countries around the world. They have also evolved to cover a wider range of areas to facilitate trade.

Which countries does the EU have free trade agreements with? ›

The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.

Over the past two decades, the share of EU imports flowing from China has more than doubled, from around 8 percent in 2002 to over 20 percent in 2023, making China the EU's largest external import partner.

The United States is the world's 2nd-largest trading nation, behind only China, with over $7.0 trillion in exports and imports of goods and services in 2022.

The EU maintains relations and partnerships with non-EU countries, at both bilateral and regional levels. As an international actor, it also contributes to several global topics and strategies and is an active member of many international organisations and fora.

The priority of the EU in the international trade and investment order is to provide leadership in supporting the open, rules-based order at a time when it faces its most severe test since the establishment of the General Agreement on Tariffs and Trade (GATT) more than 70 years ago.

International trade is important because countries rely on other countries for the import of goods that can't be readily found domestically. If a country specialises in the exports of goods, it may have more supply of certain raw materials than there is demand in its own markets.