The European Union (EU) is the world`s largest trading bloc, with a population of over 500 million people and a GDP of more than €15 trillion. As a result, the EU has trade agreements with many countries and regions around the world. In this article, we will explore who the EU has trade agreements with and how they benefit both the EU and its trading partners.
The EU has trade agreements with more than 60 countries and regions around the world. These agreements vary in their scope and nature, but they are all designed to increase trade between the EU and its partners. Some of the EU`s most significant trade agreements include:
1. Canada: The Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada came into force in 2017. This agreement eliminates more than 98% of tariffs between the EU and Canada and opens up new opportunities for trade in goods and services.
2. Japan: The EU and Japan signed the Economic Partnership Agreement (EPA) in 2018. This agreement eliminates almost all tariffs on goods traded between the EU and Japan and opens up new opportunities for service providers and investors.
3. South Korea: The EU-Korea Free Trade Agreement (FTA) came into force in 2011. This agreement eliminates most tariffs on goods traded between the EU and South Korea and provides new opportunities for service providers and investors.
4. Mexico: The EU and Mexico reached an agreement in principle on a new trade agreement in 2018. This agreement will modernize the existing EU-Mexico FTA, eliminating tariffs on more products and opening up new opportunities for trade in services and public procurement.
5. Mercosur: The EU and the South American trade bloc Mercosur reached a political agreement on a new trade deal in 2019. This agreement will eliminate tariffs on most goods traded between the EU and Mercosur, opening up new opportunities for trade in services and public procurement.
These are just a few examples of the many trade agreements that the EU has with countries and regions around the world. These agreements can benefit both the EU and its trading partners in a number of ways. For example, they can:
1. Reduce trade barriers: By eliminating or reducing tariffs on traded goods and services, trade agreements can make it easier and cheaper for businesses in the EU and its partners to trade with each other.
2. Increase market access: By opening up new markets for goods and services, trade agreements can help businesses in the EU and its partners to expand their customer base and increase their sales.
3. Improve regulatory cooperation: By harmonizing regulations and standards, trade agreements can help businesses in the EU and its partners to reduce the costs of complying with different regulatory regimes.
4. Strengthen political ties: Trade agreements can also help to strengthen political ties between the EU and its partners, promoting peace and stability around the world.
In conclusion, the EU has trade agreements with many countries and regions around the world, and these agreements can bring significant benefits to both the EU and its trading partners. By reducing trade barriers, increasing market access, improving regulatory cooperation, and strengthening political ties, these agreements can help to promote economic growth and prosperity around the world. As the EU continues to negotiate and sign new trade agreements, it is likely to remain a major player in the global economy for years to come.