The WTO is the only international organisation dealing with multinational trade issues — the global rules of trade between nations; its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
Goods can be imported into the EU under different trade regimes depending on the product and the country of origin. The main trade regime is the most-favoured nation MFN which applies, in principle, to all countries — it provides normal non-discriminatory tariffs charged on imports and excludes preferential tariffs under free trade agreements and other schemes or tariffs charged inside quotas.
Alongside increased levels of international trade in goods, there has at the same time been a concerted reduction in tariffs. Figure 1 presents information for a world average, which shows that tariffs applied to imports of intermediate goods, capital goods and raw materials were particularly low, in contrast to tariffs for consumer goods which were more than twice as high.
During the period from to , average tariffs applied to imports were reduced approximately by half for each of the different processing stages. However, since , with the exception of raw materials, tariffs increased somewhat, most notable was the increase of 2. The EU is a customs union, operating a single, uniform trade and tariff policy.
Although the emergence of globalised production chains has tended to strengthen the case for multilateral trade negotiations, the relatively limited progress made in recent years in this domain the slow progress on the Doha Development Agenda has led the EU to adopt a pragmatic approach. While continuing to actively participate in the WTO, the EU has also negotiated a number of bilateral trade agreements, which cover a broad range of issues, including trade in goods and services, intellectual property, investment, government procurement, access to energy and raw materials, environmental protection, working conditions, or regulatory cooperation.
Comprehensive negotiations have taken place, among others, with China, Japan, Singapore, South Korea and the United States, with varying degrees of success. In agreements were signed with Singapore and Japan and in with Vietnam. Negotiations for trade agreements with Australia and New Zealand have been launched in Figure 2 shows average tariffs that were applied globally in and to a more detailed list of selected products: there was a considerable reduction in the average tariff applied to all but one of these selected products during the period under consideration and by the average tariff applied was usually in single digits.
The largest tariff reductions in percentage terms were recorded for vegetable Food products were the only group were tariffs increased by EU trade agreements enable European enterprises to compete more effectively and export more to countries and regions outside the EU; they also give better access to raw materials and vital components for importers residing within the EU, as well as a greater choice of products for consumers.
Such trade agreements may also require partner governments to protect human rights, labour rights and the environment, for example, through tackling issues such as safety or gender equality in the workplace. Figure 3 presents information for on the share of EU imported goods that originated from selected partners and which were subjected to a range of different tariffs. With the considerable reduction in tariffs across most global markets, the focus of policymakers has gradually shifted towards tackling unnecessary costs that may be associated with a range of non-tariff measures; a body of evidence suggests that these measures have become increasingly important in recent years.
While they may seek to preserve legitimate interests such as protection of the environment or the health of consumers, non-tariff barriers also include those which may be characterised as having protectionist intent. As larger enterprises generally produce a wider range of goods and may have a larger number of trading partners compared with smaller companies, it is likely that a higher proportion of large enterprises will have faced hurdles in at least one of their export transactions.
Figure 4 presents a detailed list of issues raised by EU exporters that were considered as burdensome when exporting to non-member countries. Cookies on GOV. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies.
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