The European Commission's 2018 report on the implementation of the EU's Free Trade Agreements (FTAs) confirms the positive trends of previous years. However, this implementation is not yet optimised for small and medium-sized enterprises, admitted Trade Commissioner Cecilia Malmström, upon presenting the report on Monday 14 October.
The third of its kind, the report analyses the evolution of 31% of the EU's trade, covered by 35 FTAs with 62 partners. This includes Canada, but excludes Japan and the other countries with which FTAs are being ratified (see EUROPE 12129/9).
In terms of trade volumes, 2018 marked a step back from previous years, with an increase limited to 5% overall and only 3.2% for trade with the EU's preferential trading partners.
The EU has a trade deficit of €24.6 billion, the first since 2014.
The agri-food sector is one of the most dynamic sectors, seeing exports increase by €1 billion. “Trade is often presented as a threat to European agriculture, but our figures say it is not correct”, Malmström said.
The highest trade preference utilisation rates are with Turkey (90%), followed by South Korea (81%) and Colombia (73%).
The recent CETA with Canada is at the bottom of the list, with a rate of only 37% – perhaps because the most sensitive tariffs are being dismantled over longer periods and the tariff gains that are already in place are less substantial.
Significant non-tariff barriers have also been abolished in several partner countries (see EUROPE 12276/7).
Over recent years, the EU's trade policy has shifted towards effectively implementing its FTAs. While the Commission intends to support the use of tariff preferences won through its negotiations, their promotion and extension predominantly remain the prerogative of Member States. However, no figures are available on the use of FTAs by EU economic operators on a country-by-country basis (see 12300/12). Link to the report: https://bit.ly/2qdpSPQ (Original version in French by Hermine Donceel)