NEWS

The world is increasingly interconnected due to globalization. Read how the EU and Parliament take full advantage of the opportunities it offers.

EU trade policy

Having an EU trade policy gives member countries more power in bilateral negotiations and in multinational organizations such as the World Trade Organization (WTO).

The EU trade policy is based on three types of tools:
• Trade agreements with non-EU countries to open new markets and increase business opportunities for EU companies.
• Commercial regulation to protect EU producers from unfair competition (eg anti-dumping rules).
• EU membership in the WTO, which sets the rules of international trade. EU countries are members, but the European Commission negotiates on their behalf.

The European Parliament takes decisions on trade and investment together with the Council, which represents the Member States. Parliament must vote in favor of international trade agreements before they can enter into force. It can influence negotiations by adopting resolutions.

The benefits of globalization in the EU

The EU is one of the main actors in international trade, together with the US and China. EU exports represent more than 15% of world exports.

More than 36 million jobs in the EU depend on exports. On average every 1 billion euros exported to non-EU countries support more than 13,000 jobs in the EU.

International trade means more competition, which benefits consumers by boosting more competitive prices and more options. A benefit of 600 euros per year per person is calculated for EU consumers.

Manage the negative impact on employment

Globalization also creates challenges in terms of employment, such as job losses and relocation.

In the EU, the most fragile sectors are textiles, clothing, footwear and leather, basic metals and fabricated metal products and manufacturing industries, which mostly offer low-skilled jobs.

To reduce this negative impact of globalization, the EU created the European Globalization Adjustment Fund in 2006. The objective of this emergency fund is to help workers who have lost jobs due to globalization.

Co-financing up to 60% of labor policies to re-hire workers or start businesses. The funded projects include education and training, professional advice, as well as help to find work, mentoring and business creation.

Protection of human rights through trade

The EU has two trade policy tools to promote human rights: preferential trade agreements and unilateral trade restrictions.

The EU has taken measures to prohibit the import of conflict-related minerals, as well as the export of goods and services that can contribute to torture or the execution and export of dual-use items that can be used to violate human rights, such as Spyware