EU trade agreements accelerate EU export growth and support diversification

This article is brought to you in association with the European Commission.

According to the fifth Annual Report on Implementation and Enforcement of EU Trade Policy published today, the EU’s large network of trade agreements helps companies find alternative markets for their exports, while reducing dependencies in a challenging geopolitical environment.

The report, covering 2024 and the first half of 2025, concludes that EU trade agreements increase the resilienceand competitivenessof EU economic operators:

• In 2024, goods exports to the EU’s 76 preferential trade partners grew twice as much as exports to countries not covered by a free trade agreement (FTA) – 1.4% vs 0.7%. For example, EU exports to Canadahave increased by 51% since 2017 compared to 20% to the rest of the world.

• Total EU agri-food exports hit a new record in 2024, reaching €235 billion (an increase of 2.8% compared to 2023). Agri-food exports to preferential trade partners, worth €138 billion, increased by 3.6%, compared to 1.6% with non-FTA partners).

• EU trade in services with preferential partners has reached €1.3 trillion. According to the latest figures available (2023), it has increased more than three times as much as trade with non-FTA partners (+4.5% versus +1.2%).

EU trade agreements also support diversificationand supply chain stability:

• Exports to some of our key partners such as Mexico, Norway, Switzerland, and the United Kingdom compensated for reduced sales of vehicles, vehicle parts and electrical machinery due to EU sanctions against Russia.

• At the same time, increased importsof gas and liquefied gas from Algeria, Kazakhstan and Norway, as well as imports of copper from Chile, helped fill the space left by reduced imports from Russia following the sanctions.

Preventing and removing trade barriers in third countries remains fundamental for growing EU trade. 44 such barriers were removed in 2024 alone. A total of 186 barriers has been removed since the Commission’s Chief Enforcement Officer was appointed in 2020.

Moreover, the EU is actively expanding its network of trade agreements. Two new EU preferential agreements entered into force last year – a free trade agreement with New Zealand, and an Economic Partnership Agreement with Kenya. This brings the total number of EU trade agreements currently in place to 44 (covering 76 preferential trade partners). The Commission also concluded negotiations this year with Indonesia, and proposed agreements with Mercosur and Mexico for adoption by the Council and the European Parliament. The EU is currently negotiating trade agreements with India, Malaysia, the Philippines, Thailand and the United Arab Emirates.

Background
 
The annual reports provide an update on the implementation and enforcement of EU trade policy. The fifth edition is accompanied by a Staff Working Document, which updates on the main developments in the EU’s preferential trade partnerships. The report showcases the impacts of the removal of trade barriers and resolution of disputes in third-country trading partners, including with the help of dispute settlement and the EU’s strengthened toolbox of autonomous enforcement instruments. It also highlights efforts to promote the advantages of the EU’s trade agreements for key stakeholders, in particular small and medium-sized enterprises, notably through the Access2Markets portal.