Over the next two years, 90% of
world demand will be generated outside the EU. That's why it is a key
priority for the EU to open up more market opportunities for European
businesses by negotiating new Free Trade Agreements with key countries.
If we were to complete all our current free trade talks tomorrow, we'd
be adding to the EU economy 2.2% to our GDP, or €275 billion. This is
equivalent to adding a country as big as Austria or Denmark to the EU
economy. In terms of jobs, they could generate 2.2 million new jobs or
1% of the EU total workforce. Here is an overview of the most important
free trade deals currently under negotiation or under consideration.
Forthcoming negotiations or under consideration
Mandate to open trade negotiations
with Japan - On 29 November 2012, the EU Member States mandated the
Commission to open free trade negotiations with Japan (MEMO/12/930).
An FTA could increase the EU's GDP
by almost one percentage point and boost EU exports to Japan by one
third. 400,000 additional jobs are expected as a result of this deal -
in the EU alone. The Commission is fully aware of concerns among certain
Member States, notably related to non-tariff barriers in Japan. This is
exactly why the Commission agreed with Japan– even before potential
negotiations started - that Europe can 'pull the plug' on negotiations
after one year if Japan does not show evidence of removing certain
non-tariff barriers in that 12 month period.
Japan is the EU’s second biggest
trading partner in Asia, after China. Together the EU and Japan account
for more than a third of world GDP.
High-Level Working Group for Growth and Jobs with the United States of America -
In terms of size, the EU-US trade relationship is the biggest in the
world, with more than €1.8 billion of goods and services traded every
day between the European Union and the United States. The EU and the US
economies account together for about half the entire world GDP and for
nearly a third of world trade flows. However, more can be done. The EU
and US are currently working together in a High-Level Working Group on
Jobs and Growth, launched at the EU-US Summit 2011, to discuss how they
could further integrate their trade relationship, with the option of
launching a free trade agreement. The results should be known by the end
of this year (SPEECH/12/793).
Southern Mediterranean (Egypt, Jordan, Morocco, Tunisia) - In
December 2011 the Council adopted negotiating directives for Deep and
Comprehensive Free Trade Areas (DCFTAs) with Egypt, Jordan, Morocco and
Tunisia, to "upgrade" the current trade agreements with these countries.
The Council agreed on 29 November that the Commission could start
negotiations with Morocco soon.
On-going negotiations
Canada - Negotiations for an EU-Canada Comprehensive Economic and Trade Agreement (CETA)
started in May 2009 and are now in their final stretch. EU Trade
Commissioner Karel De Gucht and Canadian Trade Minister Ed Fast met in
Brussels on 22 November, making substantial progress in the talks. Both
sides have instructed their negotiators to narrow the gaps on the
outstanding issues, aiming for a deal in the coming weeks (IP/12/1258).
Canada is the EU's eleventh most important trading partner whereas the
EU is Canada’s second-largest trading partner, after the United States.
The value of bilateral trade in goods between the EU and Canada was
€52.5 billion in 2011. An economic study jointly released by the EU and
Canada in October 2008 showed that a comprehensive trade agreement could
increase two-way bilateral trade by another €25.7 billion.
Singapore - Singapore
is already today the EU's largest trading partner in the ASEAN group - a
third of EU-ASEAN trade is with Singapore (€65 billion). Singapore is
also the EU's main investment partner in ASEAN, accounting for 80% of
the investment stock between the regions. Hence, an FTA would clearly be
a trade-gateway into Asia, offering enormous opportunities to European
business in the region. Negotiations were launched by Commissioner De
Gucht and Singapore's Trade Minister Lim in March 2010. Eleven
negotiating rounds have been held so far, the last one in November 2012,
and further technical meetings are under way, especially in the area of
services, with the aim to conclude the talks soon.
In the ASEAN region, the EU is currently also negotiating a Free Trade Agreement with Malaysia (launched in May 2010) and Vietnam (launched in June 2012 - IP/12/689).
The EU's door remains open to start negotiations with other partners in
the region and hopes one day to complete these agreements with a
region-to-regional trade agreement.
Eastern Neighbourhood – The
EU is currently negotiating Deep and Comprehensive Free Trade Area as
part of Association Agreements with Georgia, Armenia and Moldova.
India –
Talks started in 2007. Substantive progress was achieved so far and
there is a renewed momentum recently with the contours of a deal
emerging. Now both sides need to go the final mile to put the package
together.
Mercosur - After
more than two years of technical work, the EU estimates that it is now
time to proceed to the exchange of market access offers if we want to
give a renewed impetus to this negotiation with the objective of
concluding a balanced and ambitious trade agreement.
Gulf Cooperation Council
- Negotiations for a free trade agreement were suspended by the Gulf
Cooperation Council in 2008. Informal contacts between negotiators
continue to take place.
African, Caribbean and Pacific countries (ACP) –
Economic Partnership Agreements (EPAs) are trade and development
partnerships between the EU and African, Caribbean and Pacific countries
(ACP), based on the Cotonou Agreement (2000). EPA negotiations started
in 2002 and have now been concluded with three regions, which have
initialled (and then signed and ratified) an agreement: the Caribbean
(CARIFORUM), the Pacific (only country currently involved: Papua New
Guinea), and Eastern and Southern Africa (ESA - Zimbabwe, Mauritius,
Madagascar, Seychelles).
Negotiations are entering a decisive phase in
the SADC EPA Group. Progress is uneven in the rest of Sub-Saharan
Africa.
The EU therefore has 10 trade negotiations under way and several more trade and development negotiations (EPAs) on going.
Free Trade Agreements finished but not yet entered into force...
Peru and Colombia
– The Trade Agreement with Peru and Colombia was signed on 26 June 2012
in Brussels. It's expected that, once fully implemented, the deal will
result in total tariff saving of more than €500mio per year. On the EU
side the procedure allowing for a provisional application of the
agreement could be finalised by January 2013. The European Parliament is
scheduled to vote on the agreement during its plenary session in
December 2012. The EU is the second largest trading
partner of the Andean region after the US. Trade with the EU was worth
14.3% of the total trade of the Andean Community in 2010 (IP/12/690).
Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) - The
Association Agreement between the European Union and Central America
was signed on 29 June 2012. Once ratified, this agreement will open up
markets on both sides, help establish a stable business and investment
environment. The Agreement is also meant to reinforce regional economic
integration in Central America. In 2010, bilateral trade in goods
between Central America and the European Union was worth €12 billion.
Adoption by the parliament of its position on the Association is
expected by the end of 2012. In parallel, Central America partners have
to ratify the Agreement, they are likely to do so in March 2013 (MEMO/11/429).
Ukraine –
The EU and Ukraine have concluded the negotiations for a deep and
comprehensive Free Trade Agreement (DCFTA) in December 2011. The next
step will be the signature of the Agreement by the Council, once the
political conditions are met.
There are also 5 Economic
Partnership Agreements with African, Caribbean and Pacific States that
have been negotiated but they have not yet entered into force. These are
Cote d'Ivoire, Cameroon, Southern African Development Community, Ghana
and Eastern African Community.
The EU has finished negotiating 8 trade agreements that have yet to enter into force
|
Free Trade Agreements already in force
South Korea, in force since 1 July 2012
- This agreement is the first of a new generation of free trade
agreements that went further than ever before at lifting trade barriers
and making it easier for European and Korean companies to do business
together. As the FTA has lowered import tariffs for European products at
the Korean border, it’s estimated that EU firms have already made cash
savings of €350 million in duties after just 9 months – from boost in
sales of European wine to high-quality fashion products (IP/12/708).
Mexico - Since
the entry into force in October 2000 of this comprehensive Free Trade
Agreement, total bilateral trade has doubled, passing from €21.7 billion
in 2000 to €40.1 billion in 2011. At his recent visit to Mexico in
November 2012, EU Trade Commissioner Karel De Gucht called for an
upgrade of the current FTA (SPEECH/12/825).
South Africa -
South Africa is the EU's largest trading partner in Africa. The Trade,
Development and Co-operation Agreement, in force since 2000, has
established a free trade area that covers 90% of bilateral trade between
the EU and South Africa. The liberalisation schedules were completed by
2012.
Chile - The
EU and Chile concluded an Association Agreement in 2002, which included
a comprehensive Free Trade Agreement that entered into force in
February 2003. The EU-Chile Free Trade Agreement is broad and
comprehensive and covers all the areas of EU-Chile trade relations. EU
is Chile's second largest source of imports, after the USA. The EU is
also Chile's third largest export market, after the recent rise of China
as an important export market for the EU.
On top of these
"classic" free trade deals, Free Trade Agreements are a core component
of many Association Agreements as well as Customs Unions
(Andorra, San Marino, Turkey). Hence the EU also has free trade deals in
force with a number of countries in Europe (Faroe Islands, Norway,
Iceland, Switzerland, the former Yugoslav Republic of Macedonia,
Croatia, Albania, Montenegro, Bosnia and Herzegovina, Serbia) and the
Southern Mediterranean (Algeria, Egypt, Israel, Jordan, Lebanon,
Morocco, Palestinian Authority, Syria, Tunisia) and 3 with African,
Caribbean and Pacific countries (Caribbean, Pacific and Eastern and
Southern Africa).
The EU therefore has 28 trade agreements already in force. This does not include Syria as the trade provisions are not applied.
