3.7 European Union Trade Policy

3.7 European Union Trade Policy Review – An Open, Sustainable and Assertive Trade Policy

Six areas that are critical to achieving the EU’s Trade Policy objectives in the medium term

With new internal and external challenges and more particularly a new, more sustainable growth model as defined by the European Green Deal and the European Digital Strategy, the EU needs a new trade policy strategy – one that will support achieving its domestic and external policy objectives and promote greater sustainability in line with its commitment of fully implementing the UN Sustainable Development Goals. Trade policy will play its full role in the recovery from the COVID-19 pandemic and in the green and digital transformation of the economy and towards building a more resilient Europe in the world.

Why a new EU Trade Strategy?

In June 2020, the European Union launched a new trade strategy review to address the challenges that all members of the EU face at present:

• The economic recovery post the Covid pandemic

1	Reform the WTO
2	Support the green transition and promote responsible and sustainable value chains
3	Support the digital transition and trade in services
4	Strengthen the EU’s regulatory impact
5	Strengthen the EU’s partnerships with neighbouring, enlargement countries and Africa
6	Strengthen the EU’s focus on implementation and enforcement of trade agreements, and ensure a level playing field

• Climate change

• Environmental degradation

• Growing international tensions

• Greater recourse to unilateralism and its consequences for multilateral institutions

The new strategy aims to establish a new consensus for trade policy based on openness, sustainability and assertiveness. It reinforces the EU’s position as a global champion of open, rules-based trade that is fair and sustainable.

Trade is one of the EU’s most powerful tools. It is at the centre of Europe’s economic prosperity and competitiveness, supporting a vibrant internal market and assertive external action. As a result of the openness of Europe’s trade regime, the EU is the world’s largest trader of agricultural and manufactured goods and services and ranks first in both inbound and outbound international investments. Thanks to the common commercial policy, the EU speaks with one voice on the global scene. This puts the EU Member States in a unique position.

This benefits small open economies like Ireland. The influence of Europe and its weight at the trade negotiation table gives Ireland leverage that it would not ordinarily have with large 3rd countries.

The Department of Enterprise, Trade and Employment will be working closely with other Government Departments and with all stakeholders to shape and influence EU Trade policy as this strategy is developed and implemented.