External Relations

From the outset, the European Economic Community (EEC) (or "Common Market") was involved in external trade relations. The creation of a customs union meant a common external tariff, and negotiations with partners outside the EEC. So the EU's responsibilities for external relations in the trade field date from its earliest years. From the first bilateral agreements drawn up in the 1960s covering textiles imports to the creation of the World Trade Organisation (WTO) in 1995, the EU has become a major force on the world economic stage. Supervised by the Member States, the Commission negotiates external trade issues for a Single Market of almost 400 million consumers representing one fifth of world trade.

The role of the European Union in providing assistance to developing countries has also expanded. The first European Development Fund was set up in 1960 to provide assistance to the developing countries of African, the Caribbean and the Pacific, many of which are former colonies or dependent territories of the Member States.

External relations is a clear example of the added value which action at the EU level can bring. As the world's major trading partner, the EU is a prime mover in the future development of world trade.

External trade relations

The range and sophistication of the EU's external trade agreements has multiplied. Whilst several of the original product specific quota/tariff setting agreements are still in force, most agreements now cover all industrial goods. In addition to the WTO, multilateral arrangements are long established with groupings such as ASEAN and Mercosur. The most integrated of all these agreements is the European Economic Area, which extends the entire single market acquis to Iceland, Liechtenstein and Norway. Trade agreements are now pushing liberalisation into new areas, like the mutual recognition of conformity assessment for product standards. Safeguard measures operating at EU level include a well-developed anti-dumping mechanism.