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Trade Policy, Trade-related measures and Trade Agreements

The European Union's trade policy refers to the EU's common approach to agreements with states on issues related to tariffs, market access and trade-related policies, such as public procurement or competition. The current EU trade policy ‘An Open, Sustainable and Assertive Trade Policy’– released in February 2021- does not build on the section on fair and ethical trade included in the preceding ‘Trade for all’ strategy; however, it must deliver on the EU's commitment to promote sustainable development. 

In addition, in 2022 the European Commission revised its approach to TSD (‘Trade and Sustainable Development’) chapters, introducing changes that aim at making these chapters more binding and enforceable. This is a step forward but, unfortunately, is only binding to new trade agreements. Several important trade agreements (like the Mercosur or Mexico agreement), are bound to a less progressive TSD chapter.

Trade Policy, Trade-related measures and Trade Agreements

Our View

The EU's trade policy remains primarily a tool to open markets for EU companies abroad and ensure access to the EU for cheap, low-value-added inputs, while offering protection to some sectors, such as EU agriculture and the EU agri-food industry, which often benefit large economic actors to the detriment of small EU farmers. For instance, the EU-Mercosur partnership agreement, recently closed, is an example of the insufficient strength of sustainable development and climate action commitments in EU trade agreements, which are relegated to weak ‘Trade and Sustainable Development’ chapters.

he FTAO looks forward to continuing its contribution to advancing the EU trade policy, ensuring it truly serves as an instrument that advances sustainable development worldwide. This vision involves building both top-down and bottom-up approaches to promote the adoption of Fair Trade and sustainability practices worldwide.

Get in Touch

Need more information? Contact our policy expert!

Virginia Enssle

Virginia Enssle, International & Institutional Relations Manager

enssle@fairtrade-advocacy.org