Brussels: Europe and the Arab World

According to the fifth annual report on the implementation and enforcement of EU trade policy, released today, Monday, the EU's extensive network of trade agreements helps companies find alternative markets for their exports, reducing dependence on foreign markets in a challenging geopolitical environment. According to a European statement distributed in Brussels on Monday, a copy of which we received, the report, which covers 2024 and the first half of 2025, concludes that trade agreements with the EU enhance the resilience and competitiveness of EU economic actors:

In 2024, exports of goods to the EU's 76 preferential trading partners grew more than twice as fast as exports to non-FTA countries, at 1.4% versus 0.7%. For example, EU exports to Canada have increased by 51% since 2017, compared to 20% to the rest of the world.

Total EU exports of agricultural and food products reached a new record in 2024, totaling €235 billion (a 2.8% increase compared to 2023). Exports of agri-food products to preferential trade partners rose by 3.6% to €138 billion, compared to 1.6% to non-free trade partners.

EU trade in services with preferential partners reached €1.3 trillion. According to the latest available figures (2023), this trade more than tripled compared to trade with non-free trade partners (+4.5% versus +1.2%).

Trade agreements with the EU also support diversification and supply chain stability:

Exports to some of our key partners, such as Mexico, Norway, Switzerland, and the UK, offset the decline in sales of vehicles, spare parts, and electrical machinery resulting from EU sanctions against Russia. At the same time, increased imports of gas and liquefied natural gas from Algeria, Kazakhstan, and Norway, as well as copper imports from Chile, helped to fill the gap left by the decline in imports from Russia following the sanctions.

Preventing and removing trade barriers in third countries remains essential for the growth of EU trade. Forty-four such barriers were removed in 2024 alone. A total of 186 barriers have been removed since the appointment of the Commission’s Chief Enforcement Officer in 2020.

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

The annual reports provide an update on the implementation and application of EU trade policy. The fifth edition includes a staff working document that updates key developments in the EU's preferential trade partnerships. The report highlights the impact of removing trade barriers and resolving disputes with third-country trading partners, including through dispute settlement and the strengthening of the EU's independent enforcement instruments. It also highlights efforts to enhance the benefits of EU trade agreements for key stakeholders, particularly small and medium-sized enterprises (SMEs), notably through the Access2Markets portal.