Russia is the EU’s fourth largest trading partner, and the EU ranks as Russia’s first trading partner. The EU has a marked trade deficit with Russia: in 2015, imports from Russia reached €136 billion, while exports to Russia decreased to €74 billion. This is mainly due to EU dependence on Russian exports of energy products, which accounted for 68 % of EU imports from Russia in 2015. The more diversified EU exports to Russia are comprised mainly of machinery and equipment, cars, pharmaceuticals and electrical equipment. Exports of EU services to Russia totalled €29 billion in 2013, with Russia exporting €14 billion of services.

• Trade with Russia is based on the WTO framework (GATT, GATS, TRIPS, etc.).
• The EU is a party to the following plurilateral agreements on Trade in Civil Aircraft, Government Procurement and the Information Technology Agreement. Russia is a party to the Information Technology Agreement and is an observer in the Agreements on Trade in Civil Aircraft and Government Procurement.
• Russia and the EU have also concluded a number of bilateral agreements, including Agreements for Scientific and Technological Cooperation.
• A number of bilateral investment agreements exist between Russia and Member States.

As members of the WTO, the EU and Russia can bring trade disputes regarding the application of WTO law before the WTO Dispute Settlement Body. The major disputes initiated by Russia against the EU have focused on EU antidumping measures.

WTO trade disputes between the EU and Russia:

Russia and the EU are not currently negotiating any preferential trade agreements. Their trade relations are therefore based on the World Trade Organization legal framework (see in next blocks).

• Russia and the EU continue to negotiate within the World Trade Organization on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, Sanctions over Ukraine: Impact on Russia, 2016.
• European Parliament, EPRS, The Russian ban on agricultural products, 2016.
• European Parliament, EPRS, Economic impact on the EU of sanctions over Ukraine conflict, 2015.
• European Parliament, EPRS, Russia: Economic indicators and trade with EU, 2017.

Other relevant links:

• European Commission, DG Trade, Russia
• European Parliament, EPRS homepage.

Argentina's total trade with the EU amounted to €15.9 billion in 2014. Argentina is the second biggest EU trade partner in the Mercosur trade bloc, representing circa 16.7 % of Mercosur's total trade with the EU. Mercosur, the 'Common Market of the South', is a regional South American trade bloc, established in 1991. Its members are Argentina, Brazil, Paraguay, Uruguay, Venezuela and Bolivia.

In 2015, EU exports to Argentina reached €9 billion, while EU imports from Argentina totalled €8 billion. The EU has a trade surplus with Argentina since 2012. Trade in services reached €6 billion, with EU exports reaching €4 billion and EU imports decreasing at €2 billion in 2015. While Argentina’s exports are concentrated primarily in agricultural goods and raw materials, the top EU exports to Argentina are more diverse, but mainly comprise boilers and appliances, cars, pharmaceuticals, and electronical equipment.

• Trade with Argentina is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• While the EU is a party to the plurilateral agreements: on Trade in Civil Aircraft, Government Procurement, and the Information Technology Agreement, Argentina is an observer only to the plurilateral agreements on Trade in Civil Aircraft, and Government Procurement.
• Argentina and the EU have also concluded a number of bilateral agreements, including Agreements for Scientific and Technological Cooperation.
• A number of bilateral investment agreements exist between Argentina and EU Member States.

The EU and Argentina can bring trade disputes regarding the application of WTO law before the WTO Dispute Settlement Body. Major disputes initiated by Argentina concerned EU antidumping policy and technical barriers to trade. Recent cases mainly focus on measures affecting trade in biodiesel. The EU cases against Argentina mainly concerned agricultural products and an early WTO case concerned safeguard measures on footwear.

WTO trade disputes between the EU and Argentina:

The EU is currently negotiating a trade agreement with Mercosur. Negotiations towards an EU-Mercosur Free Trade Agreement with the four founding members of Mercosur began in 2000, as part of the overall negotiation for a bi-regional Association Agreement – which also covers the political dialogue and cooperation pillars – following negotiating directives adopted by the Council in 1999. Nevertheless, substantial differences between both parties regarding trade in agriculture, services and the opening up of public procurement markets, after they had made their market access offers available, meant negotiations were initially suspended in 2004. Meanwhile, political relations continued to develop, with the signature in 2008 of an agreement extending them to science and technology, infrastructure and renewable energies. The European Commission re-launched trade negotiations with Mercosur at the 2010 Madrid EU-ALC Summit, and these are still ongoing, with the aim being to reach a fully-fledged trade agreement. Both parties have held ten rounds of negotiations since 2010, the most recent (XXVI negotiation round) on 10-14 October 2016 in Brussels.

In May 2016, Mercosur and the EU exchanged offers on access for goods, services and establishment of government procurement to their respective markets, and completed a consultation on the trade pillar on 3 October 2016. The next round of negotiations will take place in Buenos Aires in March 2017.

Information on the negotiation »
Information on trade between the EU and Argentina »

As members of the World Trade Organization (WTO), Argentina and the EU continue to negotiate on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, EU–Latin America trade relations: Overview and figures, 2016.
• European Parliament, EPRS, Argentina: Economic indicators and trade with EU, 2016.

Other relevant links:

• European Commission, DG Trade, Argentina.
• European Parliament, EPRS homepage.

Brazil, the largest Mercosur member in terms of GDP, population and territory, is also the EU’s major Mercosur partner. Mercosur, the 'common market of the South', is a regional South American trade bloc, established in 1991. In addition to Brazil, Argentina, Paraguay, Uruguay, Venezuela and Bolivia are all members. Brazil total trade with the EU in 2014 was equal to €67.8 billion, representing circa 71.4 % of Mercosur's total trade with the EU. Brazil is the largest economy in Latin America and its trade with the EU accounts for 33.6 % of the EU's total trade with the region (2014). As regards investments, Brazil holds 55 % of the entire EU investment stocks in Latin America (2013).

The EU enjoys a trade surplus with Brazil, exporting goods worth €35 billion and importing goods worth €31 billion. Although Brazil is beginning to diversify its export goods, the top EU imports from Brazil remain concentrated in agriculture and raw materials. The main EU exports to Brazil are boilers and appliances, pharmaceutical products, cars and electrical equipment. The EU also enjoys a trade surplus in services, with exports up to €14 billion and imports at €9 billion.

• Trade with Brazil is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• While the EU is a party to the plurilateral agreements: on Trade in Civil Aircraft, Government Procurement, and the Information Technology Agreement, Brazil is an observer only to the plurilateral agreements on Trade in Civil Aircraft.
• Brazil and the EU have also concluded a number of bilateral agreements, including Agreements for Scientific and Technological Cooperation, Agreement on Air Services and an agreement on Civil Aviation Safety.
• A number of bilateral investment agreements exist between Brazil and EU Member States.

The EU and Brazil can bring trade disputes regarding the application of WTO law before the WTO Dispute Settlement Body. Major disputes initiated by Brazil against the EU mainly focus on measures affecting trade flows in agricultural products, such as poultry products, coffee and sugar. Brazil was one of the Latin American countries involved in the challenge against the EU regime on the trade in bananas (Brazil participated as a third party to the dispute). The conclusion of the Geneva Agreement on trade in bananas (GATB), to which the EU and Brazil are both parties, settled this dispute.

WTO trade disputes between the EU and Brazil:

The EU is currently negotiating a trade agreement with Mercosur. Negotiations towards an EU-Mercosur Free Trade Agreement with the four founding members of Mercosur started in 2000, as part of the overall negotiation for a bi-regional Association Agreement – which also covers the political dialogue and cooperation pillars – following negotiating directives adopted by the Council in 1999. Nevertheless, substantial differences between both parties regarding trade in agriculture, services and the opening up of public procurement markets, after they had made their market access offers available, meant negotiations were initially suspended in 2004. Meanwhile, political relations continued to develop, with the signature in 2008 of an agreement extending them to science and technology, infrastructure and renewable energies. The European Commission relaunched trade negotiations with Mercosur at the 2010 Madrid EU-ALC Summit, which are still ongoing, with the aim being to reach a fully-fledged trade agreement. Both parties have held ten rounds of negotiations since 2010, the most recent (XXVI negotiation round) on 10-14 October 2016 in Brussels.

In May 2016, Mercosur and the EU exchanged offers on access for goods, services and establishment of government procurement to their respective markets, and completed a consultation on the trade pillar on 3 October 2016. The next round of negotiations will take place in Buenos Aires in March 2017.

Information on the negotiation »

As members of the World Trade Organization (WTO), Brazil and the EU continue to negotiate on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, EU–Latin America trade relations: Overview and figures, 2016.
• European Parliament, EPRS, Brazil: Economic indicators and trade with EU, 2017.

Other relevant links:

• European Commission, DG Trade, Brazil
• European Parliament, EPRS homepage.
• European Council, CETA ratification details

Total trade in goods between Canada and the EU grew to €64 billion in 2015, making Canada the EU's eleventh most important trade partner. In turn, after the USA, the EU is Canada's second most important trade partner. The EU's most important exports are machinery, transport equipment and chemicals, while precious metals, machinery and mineral products dominate imports. Trade in services – mostly transport, insurance and communication services – amounted to €27.9 billion in 2014 (EU surplus: €5.1 billion). Canada was the third largest investor in the European Union (after the USA and Switzerland) to the tune of €1 65.9 billion (2014). European foreign investment in Canada reached €274.7 billion, making this country the EU’s fourth largest investment destination.

• Trade with Canada is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• Both the EU and Canada are party to plurilateral agreements: on Trade in Civil Aircraft, Government Procurement and the Information Technology Agreement.
• Canada and the EU have also concluded a number of bilateral agreements, including Agreements for Scientific and Technological Cooperation, Agreement on Customs Cooperation, Agreement on Air Transport, etc.
• The existing bilateral investment agreements between Canada and eight Member States (Croatia, the Czech Republic, Hungary, Latvia, Malta, Poland, Romania and Slovakia) remain in force until ratification of CETA is completed, as investment protection is not part of the provisional application of CETA.

The EU and Canada can bring trade disputes regarding the application of WTO law before the WTO Dispute Settlement Body. Major disputes initiated by Canada concerned EU regulation and its impact on trade flows, such as the EC-Hormones cases, EC-Asbestos case and the EC-Seal cases. A recent EU case against Canada concerned the introduction of a feed-in tariff with domestic content requirements to promote local production and investment in renewable energy (Canada-Feed-in Tariff Program).

WTO trade disputes between the EU and Canada:

EU-Canada negotiations for a Comprehensive Economic and Trade Agreement (CETA) began in May 2009 and concluded at the EU-Canada Summit on 26 September 2014. The European Union (EU) and Canada signed CETA on 30 October 2016. After the European Parliament's consent to the agreement and the adoption of the Council decision, CETA can now be provisionally applied as soon as Canada finalises its ratification process. CETA will enter into force only after ratification by all EU Member States.

The agreement's overall aim is to increase flows of goods, services and investment to the benefit of both partners. CETA regulates trade in goods and services as well as investment relations between the EU and Canada. It further deals with topics such as rules of origin (RoO), sanitary and phytosanitary rules (SPS), technical barriers to trade (TBT), customs and trade facilitation, intellectual property rights (IPR), regulatory cooperation, sustainable development and government procurement.

For the complete text of the agreement and annexes »

• Canada and the EU are negotiating a new plurilateral agreement on services with other partners, known as TiSA (Trade in services agreement);
• Canada and the EU are negotiating a new agreement to facilitate trade in environmental goods (EGA) with other partners;
• As members of the World Trade Organization (WTO), Canada and the EU continue to negotiate on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, EU-Canada Comprehensive Economic and Trade Agreement, 2017.
• European Parliament, EPRS, The trade and sustainable chapter in CETA, 2017.
• European Parliament, EPRS, CETA and Public Services, 2017.
• European Parliament, EPRS, Investment and the right to regulate, 2017.
• European Parliament, EPRS, Investment rules in trade agreements, 2015.
• European Parliament, EPRS, Canada: Economic indicators and trade with EU, 2017.

Other relevant links:

• European Commission, DG Trade, Canada
• European Parliament, EPRS homepage.
• European Council, CETA ratification details

The European Union and China are two of the world’s biggest traders. China is now the EU's second trading partner after the United States of America, and the EU is China's biggest trading partner. The EU has a large trade deficit with China: goods imports from China reach €350 billion, while EU exports to China remain at €170 billion. However, the EU still has a trade surplus in services with exports reaching €36 billion and imports €26 billion. Both China and the EU have diversified exports.. Imports from China mainly concern manufacturing goods in electronic equipment, boilers and appliances and clothing and accessories, while the EU’s top exports to China include vehicles and aircraft, boilers and appliances and electronic equipment. A lot of the trade with China is also characterised by two-way trade or intra-industry trade, whereby Chinese industry source inputs from the EU for their final assembly production. Chinese production today continues to have a high foreign content, although the value of domestic input in Chinese production is rising.

• Trade with China is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• Both China and the EU are parties to the Information Technology Agreement. While the EU is also member of the following plurilateral agreements on Trade in Civil Aircraft and Government Procurement, China is an observer in these agreements.
• China and the EU have also concluded a number of bilateral agreements, including a Trade and Economic Cooperation Agreement, an Agreement on Scientific and Technological Cooperation, an Agreement on Maritime Transport, Agreement on Customs Cooperation, etc.
• China has concluded some bilateral investment agreements with EU Member States. Some of the investment agreements China concluded with EU Member States were terminated.

The EU and China can bring trade disputes regarding the application of WTO law before theWTO Dispute Settlement Body. The major disputes initiated by China against the EU primarily concerned EU antidumping and antisubsidy measures. Major disputes brought by the EU against China include the China-Automobile case and the China-Rare Earth Materials case. The latter concerned export restrictions on exports of rare earth materials which are fundamental for certain electronic industries. Some cases were also brought against Chinese anti-dumping measures. Currently China’s main concern is the methodology used by the European Union and the United States to compute antidumping duties (see EPRS documents on the debate with respect to China’s Market Economy Status).

WTO trade disputes between the EU and China:

The EU is not currently negotiating preferential trade agreements with China. However, at the 15th EU-China Summit in February 2012, agreement was reached to launch negotiations for an EU-China Bilateral Investment Agreement. Discussions reached a 12th negotiating round.

According to the Commission’s impact assessment of the agreement, the main issues justifying EU action are:

1. the EU-China investment climate;
2. the lack of a level playing-field for prospective and existing European investors in China;
3. the lack of a comprehensive framework to remedy shortcomings in the EU-China investment relationship;
4. China and the EU’s bilateral agreements and negotiations with third countries and implications for investment; v) concerns linked to Chinese investment in the EU;
5. Chinese concerns regarding investing in Europe.

The EU-China investment agreement is planned as a stand-alone investment agreement, with no trade issues included. It will go beyond the usual investment protection dimension in scope, to also cover market access.

Information on the negotiations on the EU-China investment agreement »

• China is not negotiating with the EU and other partners on the new plurilateral agreement on services known as TiSA (Trade in services agreement); however, Hong Kong is participating in TiSA negotiations.
• China and the EU are negotiating a new agreement to facilitate trade in environmental goods (EGA) with other partners.
• As members of the World Trade Organization (WTO), China and the EU continue to negotiate on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, China, the 16+1 cooperation format and the EU, 2017.
• European Parliament, EPRS, Protection from dumped and subsidised imports, 2017.
• European Parliament, EPRS, Why China's public procurement is an EU issue, 2016.
• European Parliament, EPRS, China's WTO accession: 15 years on - Taking, shaking or shaping WTO rules?, 2016.
• European Parliament, EPRS, State-owned enterprise (SOE) reforms in China: A decisive role for the market at last?, 2016.
• European Parliament, EPRS, Calculation of Dumping Margin: EU and US rules and practices in light of the Chinese Market Economy Status debate, 2016.
• European Parliament, EPRS, Major-EU-China-anti-dumping-cases, 2016.
• European Parliament, EPRS, Granting Market Economy Status to China: An analysis of WTO law and of selected WTO members' policy, 2015.
• European Parliament, EPRS, China: Economic indicators and trade with EU, 2016.

Other relevant links:

• European Commission, DG Trade, China
• European Parliament, EPRS homepage.

Bilateral trade in goods between the EU and India grew to €77.6 billion in 2015, making India the EU's ninth largest trade partner. In turn, the EU was India's second most important trade partner, after China. Engineering goods; pearls and precious stones; and electrical and electronic equipment are the EU's most important exports, while imports are dominated by clothing accessories, agri-food and chemicals. Bilateral trade in services reached €28.1 billion in 2015. EU investment stocks in India amounted to €38.5 billion in 2014.

• Trade with China is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• As regards plurilateral agreements, India is an observer to the agreement on Trade in Civil Aircraft, and to the agreement on Government Procurement to which the EU is party. Both the EU and India are party to the Information Technology Agreement.
• India and the EU have also concluded a number of bilateral agreements, including Agreements for Scientific and Technological Cooperation, Agreement on Customs Cooperation, Agreement on certain aspects of Air Services, etc.

The EU and India can bring trade disputes regarding the application of World Trade Organization (WTO) law before the WTO Dispute Settlement Body. Challenges initiated by India concerned antidumping duties and restrictions on importations of rice. A major case brought by India challenged the EU generalised system of preference (GSP) and further preferential treatment granted upon compliance with certain conditions, such as combatting drug production and trafficking, or the protection of labour rights and the environment (this regime is known as GSP+). India considered that, in imposing the conditions, the EU was discriminating between countries and was therefore violating the non-discrimination requirement that applies to GSP regimes under WTO law. The WTO Appellate Body highlighted that the EU was entitled to impose objective criteria as long as similarly situated GSP beneficiaries received the same treatment. EU cases against India have covered several issues: agricultural goods issues, patent protection, import measures. The India-Autos case was rather similar to the homologous case brought by the EU against Indonesia, as it facilitated (in this case, to obtain import licences) cars complying with some local content and export balancing requirements.

WTO trade disputes that took place between the EU and India:

Based on the negotiation directives obtained in April 2007, EU-India negotiations for a comprehensive free trade agreement (FTA) began in June 2007. Twelve rounds of negotiations and a number of technical meetings have taken place, with talks focusing on market access for goods, services, and a particular chapter on government procurement and sustainable development. In 2013, negotiations were brought to a standstill due to the different levels of ambition and expectation between the two sides. Talks restarted in January 2016, with a view to assessing the level of progress that can be made in key areas before officially resuming negotiations.

At the EU-India Summit in March 2016, European Commission President Juncker expressed an intention to work towards making real progress in the negotiation process, provided there is an advance in the issues of key importance.

• As members of the World Trade Organization, India and the EU continue negotiations on outstanding Doha Development Agenda issues.
• India and the EU began talks on a bilateral trade and investment agreement (BTIA) in 2007.

• European Parliament, EPRS, India: economic indicators and trade with EU, 2016
• European Parliament, EPRS, India’s economy – Figures and perceptions, 2016
• European Parliament, EPRS, India’s armed forces – An overview, 2015
• European Parliament, EPRS, India’s multilateral relations, 2015
• European Parliament, EPRS, India’s bilateral relations: First year of the Narendra Modi era, 2015
• European Parliament, EPRS, The South Asian Association for Regional Cooperation (SAARC), 2015

Other relevant links:

• European Commission, DG Trade, India
• European Parliament, EPRS homepage.

Bilateral trade in goods between the EU and Indonesia grew to €25.3 billion in 2015, with the EU recording a trade deficit of €5.4 billion. In 2015, Indonesia was the EU's 5th largest trade partner in ASEAN, ranking 30th in overall EU trade worldwide, while the EU was Indonesia's 4th largest trade partner. Machinery and mechanical appliances, air transport equipment and electrical and electronic equipment are the EU's most important exports, while imports are dominated by agri-food, footwear and electrical and electronic equipment. Bilateral trade in services reached approximately €6 billion in 2014, with EU exports amounting to €3.8 billion. The EU is one of the largest investors in Indonesia. The EU’s outward FDI stocks represented €30.4 billion in 2015, mostly in the chemical and pharmaceutical industry.

• Trade with Indonesia is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• As regards plurilateral agreements, Indonesia is an observer to the agreement on Trade in Civil Aircraft, and to the agreement on Government Procurement to which the EU is party. Both the EU and Indonesia are party to the Information Technology Agreement.
• Indonesia and the EU have also concluded a number of bilateral agreements, including a voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade in Timber Products to the EU; Agreement on Certain Aspects of Air Services; Framework Agreement on Comprehensive Partnership and Cooperation.

The EU and Indonesia can bring trade disputes regarding the application of World Trade Organization law before the WTO Dispute Settlement Body. A major dispute initiated by the EU against Indonesia concerned a tax-exemption for ‘national cars’, defined on the basis of local content measures. The challenges brought by Indonesia against the EU are more recent and focus on anti-dumping measures introduced by the EU on Indonesian products.

Negotiations for an EU-Indonesia free trade agreement (FTA) were launched in July 2016. The first round of negotiations took place in Brussels in September 2016. During this round, 18 negotiating areas were discussed, including trade in goods, trade in services, investment, trade and sustainable development, competition, energy and raw materials. The second round of negotiations took place in Indonesia, in January 2017. On this occasion, detailed discussions were held on all topics to be included in the agreement, and the two sides analysed all nine draft negotiating texts presented by the EU.

The aim is to conclude a comprehensive free trade agreement between the EU and Indonesia that facilitates trade and investment as well as including a broad range of issues, such as customs duties, technical barriers to trade (TBTs), trade in services, trade aspects of public procurement, competition rules, intellectual property rights, investment, and rules on sustainable development.

• • As members of the World Trade Organization (WTO), Indonesia and the EU continue to negotiate on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, Indonesia: Political landscape under President Jokowi, 2016
• European Parliament, EPRS, Human rights in Indonesia, 2016
• European Parliament, EPRS, Indonesia: Economic indicators and trade with EU, 2016
• European Parliament, EPRS, Indonesia: Kick-starting a flagging economy?, 2016
• European Parliament, EPRS, Indonesia: Security threats to a stable democracy, 2016
• European Parliament, EPRS, Religious pluralism in Indonesia: Harmonious traditions face challenges, 2016
• European Parliament, EPRS, EU-Indonesia agreement on trade in legal timber, 2014
• European Parliament, EPRS, Driving trade in the ASEAN region: Progress of FTA negotiations, 2016

Other relevant links:

• European Commission, DG Trade, Indonesia
• European Parliament, EPRS homepage.

Together, the EU and Japan, two of the world's major economies, account for approximately one third of global GDP. In 2015, Japan was the sixth largest destination market for EU exports of goods and it was the seventh largest supplier of EU imports. The EU is Japan's third largest trading partner in goods. However, even though EU exports of goods to Japan has increased in absolute terms, Japan’s share in EU trade of goods is declining, especially regarding imports. In the past, Japan benefited from significant surpluses in the trade of goods with the EU. Trade figures have recently become considerably more balanced, owing to EU export performance and decreasing EU imports. Total trade in goods between the EU and Japan accounted for €116.5 billion in 2015, with a trade deficit on the EU side of €3.3 billion.

In 2015, the EU exported €27.9 billion of services to Japan, while imports of services from Japan amounted to €15.6 billion. Consequently, the EU recorded a surplus of €12.3 billion in 2015, an upward trend from €4.9 billion in 2010. In 2015, Japan accounted for 3.4 % of total EU external trade in services.

The EU has generally invested less in Japan than in other developed economies; the EU’s outward FDI stocks represented 1.9 % (€96.1 billion) of the total in 2012. Conversely, Europe accounted for approximately 23 % of Japan’s outward FDI stocks in 2012, representing Japan's second largest destination by share.

• Trade with Japan is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• Both the EU and Japan are party to plurilateral agreements: on Trade in Civil Aircraft, Government Procurement and the Information Technology Agreement.
• Japan and the EU have also concluded a number of bilateral agreements, including an Agreement for Scientific and Technological Cooperation, the Agreement on Mutual Recognition and the Agreement for Co-operation on Anti-competitive Activities.

As members of the World Trade Organization (WTO), the EU and Japan can bring trade disputes regarding the application of WTO law before the WTO Dispute Settlement Body. Until the late 2000s, only the EU had issued complaints against Japan. Most of these were resolved via consultation alone. The only major case was that on Alcoholic Beverages, which is considered in WTO law a foundation case, as it allowed the dispute settlement to clarify the implications of Article III of GATT (instituting the principle of national treatment on internal taxation and regulation). The first challenge by Japan against the EU was brought in 2008, and concerned the tariff treatment of some IT products. In particular the development of technology meant that certain products that were not considered as IT originally became de facto IT from a technological perspective, such as, for example flat panel display devices, which are televisions but can now be connected to internet and other technological equipment and have therefore similar functions to computers. Computers and IT products are considered duty free, while screen (understood as television screens), are not. The case was also brought against the tariff treatment of other technological goods.

WTO trade disputes that took place between the EU and Japan:

The EU and Japan agreed to begin preparations for a bilateral trade agreement at the 20th EU-Japan Summit in May 2011. Based on the negotiating directives adopted by the Council in November 2012, negotiations were launched in March 2013. The first round of negotiations was held in April 2013. There have been 17 rounds of negotiations to date, with the latest taking place at the end of September 2016. Technical negotiations continued in December 2016 and January 2017, and considerable progress has been made. The objective is to reach a conclusion early in 2017.

The aim is to negotiate a modern and comprehensive free trade agreement that covers a broad range of issues, including tariffs, technical barriers to trade (TBTs), trade in services and investment, intellectual property rights including geographical indications, competition rules, as well as trade and sustainable development. The negotiations are complicated by the strict parallelism of the objectives of the two parties: liberalisation of tariffs for Japan and the dismantling of Japanese non-tariff barriers for the EU.

• Japan and the EU, with other partners, are negotiating a new plurilateral agreement on services known as TiSA (Trade in services agreement).
• • Japan and the EU, with other partners, are negotiating a new agreement to facilitate trade in environmental goods (EGA).
• • As members of the WTO, Japan and the EU continue to negotiate on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, International agreements in progress: Prospective EU-Japan free trade agreement, 2016
• European Parliament, EPRS, Japan: Economic indicators and trade with EU, 2016
• European Parliament, EPRS, Japan's national budget: Procedure and the public debt burden, 2016
• European Parliament, EPRS, Japan : Defence and security policy reform, 2016
• European Parliament, EPRS, Japan and the EU [What Think Tanks are thinking], 2016
• European Parliament, EPRS, apan: women’s empowerment, 2017

Other relevant links:

• European Commission, DG Trade, Japan
• European Parliament, EPRS homepage.

Bilateral trade in goods between the EU and South Africa grew to approximately €44 billion in 2015, with the EU recording a trade surplus of €6 billion. In 2015, South Africa was the EU's largest African trade partner, ranking 17th in overall EU trade worldwide. In turn, the EU was South Africa’s largest trade partner. The EU's most important exports are machinery and mechanical appliances; cars and trucks; and electrical and electronic equipment, while imports are dominated by gemstones, cars and trucks, and agri-food. Bilateral trade in services amounted to approximately €13 billion in 2015. The EU’s outward FDI stocks in 2015 represented approximately €79 billion.

• Trade with South Africa is also based on the World Trade Organization (WTO) framework (GATT, GATS, TRIPS, etc.).
• • South Africa and the EU have also concluded a number of bilateral agreements, including the Agreements on Trade in Wine and Spirits, which were incorporated in Protocol 3 of the EPA, and the Agreement on Scientific and Technological Cooperation.

There have been no WTO cases where the EU and South Africa were respectively complainant (i.e. the party bringing the legal challenge) or respondent (i.e. the challenged party). However South Africa and the EU have been third parties (i.e. parties with an interest in the dispute) in a number of cases, in particular in some agricultural cases against the United States of America, and in the ongoing plain tobacco packaging case brought against Australia. South Africa is also a third party in two recent cases brought by the EU: one against Brazil on certain tax measures, and the other against Russia on the importation of pig products.

The EU has concluded an agreement on trade, development and cooperation (TDCA) with South Africa, which governs trade relations and development cooperation between the two parties. Signed in 1999, the TDCA entered fully into force in May 2004. The agreement is a free trade agreement (FTA) which has liberalised around 90 % of bilateral EU-South Africa trade, while maintaining some restrictions: liberalisation under TDCA is asymmetric, covering 95 % of the EU's imports from South Africa and 86 % of South Africa's imports from the EU. On the EU side, products excluded or only partially liberalised include mainly agricultural products, while South Africa chose to protect industrial products, in particular certain motor vehicle products, and specific textile and clothing products.

In July 2014, negotiations were concluded on an Economic Partnership Agreement between the EU and six of the fifteen members of the Southern African Development Community (SADC), including South Africa. The agreement establishes an asymmetric free trade area, taking into account the disparities in the level of development between the EU and its African partners. It emphasises sustainable development as an overarching objective, includes important safeguards to protect sensitive sectors from sudden surges in trade, and allows African countries to preserve their policy space in order to industrialise. The agreement was signed in June 2016, and the European Parliament gave its consent in September 2016. The agreement applies provisionally as of October 2016 between the EU and the Southern African Customs Union, which consists of Botswana, Lesotho, Namibia, South Africa and Swaziland. The EPA contains a special protocol (4) that will govern relations between the TDCA and the EPA. Once ratified, the EPA will replace the TDCA.

• As members of the World Trade Organization, South Africa and the EU continue negotiations on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, Economic Partnership Agreement with the Southern African Development Community (SADC), 2016

Other relevant links:

• European Commission, DG Trade, South Africa
• European Parliament, EPRS homepage.

Bilateral trade in goods between the EU and Tunisia grew to approximately €20 billion in 2015, with the EU recording a trade surplus of €1.2 billion. In 2015, Tunisia ranked 32nd in overall EU trade worldwide. The EU is Tunisia's largest client and supplier, accounting for 74 % of the country's exports and 53 % of imports respectively. Electrical and electronic equipment; oil, gas and coal; and machinery and mechanical appliances are the EU's most important exports, while imports are dominated by electrical and electronic equipment, clothing accessories and agri-food. Bilateral trade in services amounted to approximately €4.7 billion in 2015. The EU’s outward FDI stocks represented approximately €3.2 billion in 2015.

• Trade with Tunisia is based on the WTO framework (GATT, GATS, TRIPS, etc.).
• As regards plurilateral agreements, Tunisia is an observer to the agreement on Trade in Civil Aircraft, to which the EU is party.
• Tunisia and the EU have also concluded bilateral agreements, including the Agreement on Scientific and Technological Cooperation. The existing Euro-Mediterranean Agreement establishing an association between the EU and its Member States and Tunisia already covers many trade issues (such as customs cooperation), rendering further bilateral trade agreements on these aspects unnecessary.

There are no trade disputes at present between the EU and Tunisia at the World Trade Organization.

In 1995, Tunisia became the first country in the Southern Mediterranean to sign an association agreement with the EU as part of the Euro-Med Association. The Euro-Mediterranean Association Agreement established a free trade area, focusing mainly on trade in goods.

The EU and Tunisia have decided to deepen free trade with each other through the Deep and Comprehensive Free Trade Area (DCFTA), to expand free trade in services, areas of agriculture, and investment, and to reduce non-tariff barriers. The first negotiating round was held in April 2016. During this round a wide range of issues were discussed, including agriculture, services, and sustainable development. A technical meeting took place in February 2017, during which both sides further exchanged technical information on various chapters covered by the future agreement.

The aim of the negotiations is to open new trade and investment opportunities and to better integrate Tunisia's economy with the EU single market. An important DCFTA objective is to assist the implementation of economic reforms in Tunisia and to approximate trade-related Tunisian and EU legislation.

• As members of the World Trade Organization (WTO), Tunisia and the EU continue negotiations on outstanding Doha Development Agenda issues.

• European Parliament, EPRS, Tunisia: Economic indicators and trade with EU, 2016
• European Parliament, EPRS, Tunisia economic situation, 2016
• European Parliament, EPRS, Tunisia: Political groups and parties, 2016
• European Parliament, EPRS, Tunisia: Human rights situation, 2016
• European Parliament, EPRS, Tunisia: Democracy in transition, 2016

Other relevant links:

• European Commission, DG Trade, Tunisia
• European Parliament, EPRS homepage.

The United States of America (USA) is the EU’s top trading partner and export market. The EU has a trade surplus with the USA in both services and goods. Exports of goods to and imports from the USA by EU28 firms amounted respectively to €371 and €249 billion in 2015. In 2014, the EU exported €197 billion of services to the USA and imported services worth €190 billion. Outward direct investment stocks (i.e. EU investment to the USA) reached €1.99 trillion, while inward direct investment stocks reached €1.81 trillion. Some 88 % of firms exporting to the USA were reported to be small and medium-sized enterprises (SMEs). The European Commission reported that over 10 million European jobs already depend on exports to the USA. The EU and the USA together represented 46 % of world GDP in 2014.

• Trade with the USA is also based on the WTO framework (GATT, GATS, TRIPS, etc.).
• Both the EU and the USA are parties to the following plurilateral agreements: on Trade in Civil Aircraft, Government Procurement and the Information Technology Agreement.
• The USA and the EU have also concluded a number of bilateral agreements, including Agreements for Scientific and Technological Cooperation, Agreement on Customs Cooperation, Agreement on Trade in Wine, Agreement on Cooperation in the Regulation of Civil Aviation Safety, Agreement regarding the Application of Competition Laws in the US.
• The list of outstanding bilateral investment agreements or other agreements containing investment provisions between the USA and 21 EU Member States are detailed in this EPRS publication.

The EU and the USA can bring trade disputes regarding the application of WTO law in front of the WTO Dispute Settlement Body. Major disputes initiated by the USA concerned EU regulation (such as the EC-Hormones case, which remains a major dispute between the two trade partners). Some cases also challenged the external aspects of the EU agricultural policy, such as the ‘banana saga’ (three cases brought in front of the dispute settlement body with respect to the EU’s banana trade regime). EU cases against the USA concerned mainly trade remedies, such as safeguards, antidumping and subsidies.

WTO trade disputes between the EU and US:

EU-USA negotiations towards a Transatlantic Trade and Investment Partnership (TTIP) were launched in 2013, aiming at achieving a comprehensive and balanced trade and investment agreement.

TTIP negotiations cover a wide range of issues aimed at agreeing on ambitious provisions going beyond WTO rules in a number of fields: market access in goods and services, regulatory provisions (Sanitary and Phytosanitary Measures and Technical Barriers to Trade), intellectual property rights, and public procurement. TTIP also aims for ambitious new rules on sustainable development, competition, state-owned enterprises, SMEs, investment and regulatory cooperation. The EU has also proposed an unprecedented specific chapter on energy, which would aim at tackling competition, energy efficiency and climate change issues. The EU submitted a new investment courts proposal, to replace the former arbitration system for solving disputes arising between states and foreign investors.

Negotiators have so far completed 15 rounds of negotiations. Several issues remain problematic however, in particular:

• the extent of concessions to open the services and public procurement markets;
• the EU proposal for extending geographical protection beyond the existing EU-USA wine agreement, which remains controversial for the USA;
• discussions on the EU proposal for an investment court to replace the US-favoured arbitration system;
• finally, the EU-USA divergences on the Sanitary and Phytosanitary chapter and food safety issues, which remains one of the most controversial issues in the negotiations.

Negotiations are currently suspended, awaiting the new US trade administration to settle in. United States President Trump has, on many occasions, mentioned a preference for bilateral negotiations to regional negotiations and in the new 2017 trade policy agenda, TTIP negotiations are currently under review by the Presidential administration. However, it is important to mention that a bilateral approach, like that envisaged by President Trump for the Asian nations participating in the TPP, is not an option with the EU. The EU has exclusive competence in negotiating trade liberalisation agreements within the meaning of the common commercial policy and EU Member States therefore cannot conclude bilateral agreements in this field.

For information on TTIP negotiations »
See also the legislative train on TTIP negotiations »
To understand better why EU common commercial policy is an exclusive competence, please refer to the section on intra-EU trade of this infographic

• The USA and the EU are negotiating a new plurilateral agreement on services known as TiSA (Trade in services agreement) with other partners
• The USA and the EU are negotiating a new agreement to facilitate trade in environmental goods (EGA) with other partners;
• The USA and the EU continue to negotiate within the World Trade Organization on outstanding Doha Development Agenda issues.

• European Parliament, Legislative Trains – Train 6.
• European Parliament, EPRS, EU-US negotiations on TTIP: a survey of current issues 2016.
• European Parliament, EPRS, TTIP: access to consolidated texts and confidential documents, 2016.
• European Parliament, Role of the US Congress in trade agreements: the ‘Fast-Track’ procedure, 2016.
• European Parliament, EPRS, Investment rules in trade agreements: Developments and issues in light of the TTIP debate, 2015.
• European Parliament, EPRS, TTIP and regulation of financial markets: Regulatory autonomy versus fragmentation, 2015.
• European Parliament, EPRS, US: Economic indicators and trade with EU, 2016.

Other relevant links:

• European Commission, DG Trade, TTIP
• European Parliament, EPRS homepage.