3.2 Economic Benefits of Free Trade Agreements

3.2 Economic Benefits of Free Trade Agreements

The EU has the largest Free Trade Agreement Network in the world, with 41 trade agreements covering 72 countries worldwide and accounting for 39% of the EU’s external trade. This growing network of trade agreements creates opportunities for workers across Europe. Trade with countries outside the EU supports 36 million jobs in the EU. Foreign investment into the EU supports 16 million European jobs. The EU negotiates on behalf of all Member States so businesses and consumers can buy and sell goods and services on global markets that would be difficult for small nations like Ireland to access. It’s estimated that international trade supports around 650,000 jobs in Ireland, particularly in the agrifood, pharma, medical devices, med-tech, and financial services sectors.

The EU’s free trade agreements deliver real economic results for consumers, workers, and small companies without compromising on core principles like human rights and sustainable development. Negotiating trade agreements is a lengthy and complex process, often taking several years to conclude, but the rewards make them worth the time and effort. Significant EU trade deals go through the full democratic process before they enter into force. They must be approved by the European Council (heads of government of all EU 27 members states), and MEPs must give their consent in the European Parliament, meaning these trade deals come under deep scrutiny, and substantial agreements can’t go ahead until ratified by all Member States.

Fig 4: Map of EU Trade Agreements

2020

EU & Customs Union (Andorra, Monaco, San Marino, Turkey)

European Economic Area (Norway, Iceland, Greenland)

Potential preferential trade partners

Preferential trade agreement in place (FTA, EPA, DCFTA, OCT, AA)

Preferential trade agreement under adoption/ratification

Figure from page 22

Trade agreements on hold

EU-China Comprehensive Agreement on Investment (CAI)

Preferential trade agreement being negotiated