Fact Sheets on the European Union – 2 - EU Bookshop - Europa

6.2.2. The European Union and the World Trade
Organisation (WTO)
As a result of its commercial exclusive competence, the European Community is involved in global trade through its own
trade policy, but also through active participation in the structures responsible for facilitating global trade such as the
GATT and, since 1955, the WTO.
Legal basis
— International: the Agreement establishing the World Trade
Organisation (WTO), which was signed in Marrakesh on
15 April 1994 and entered into force on 1 January 1995.
— European common commercial policy: Articles 26 and 27
and 131 to 134 of the Treaty establishing the European
Community (EC); conclusion of international agreements:
Articles 300 and 301 of the EC Treaty.
Objectives
The European Union is one of the most important trading
regions in the world and has always played a key role in the
structures responsible for facilitating global trade: the General
Agreement Tariffs and Trade (GATT) then the WTO. Its ongoing
objectives in this respect are:
— the liberalisation of trade in goods and services and
investment in order to ensure the growth of trade and thus
economic prosperity;
— the defence of European interests, particularly in certain
sectors of industry, agriculture, public services and culture;
— provision of a framework for this liberalisation through
rules to protect the environment, protect employees and
ensure that the least developed countries have an
equitable share.
Achievements
A. Decision-making competence
1. Principle of exclusive Community competence
In the light of the fact that, based on the Treaty of Rome, the
EC forms a customs union (completed with the end of the
transitional period in 1970), it has by definition exclusive
competence for external trade policy. The aims of this
‘common commercial policy’ are to:
— establish and amend the common customs tariff;
— conclude tariff and trade agreements with third countries;
— implement an export policy;
— establish commercial defence measures (in the case of
dumping for example).
2. Decision-making mechanism
The unilateral measures (customs tariffs, antidumping
measures) are:
— proposed by the Commission;
— adopted by the Council acting by a qualified majority
(Articles 133 and 301).
The agreements with third countries are:
— negotiated by the Commission on the basis of Council
directives (adopted by a qualified majority);
— concluded by the Council, in general by a qualified
majority (Articles 133 and 300).
The European Parliament is not involved even in a consultative
role (except for association agreements which are subject to its
assent, 1.4.1 and 1.3.2).
3. Changes proposed by the Lisbon Treaty
In terms of commercial policy, Article 188 C of the Lisbon
Treaty incorporates the provisions of Article 133 of the Treaty
of Nice, with amendments. The main changes concern:
— the extension of the exclusive competence of the EU to all
trade agreements;
— an increase in the role of the European Parliament.
It mainly provides that:
— the ordinary legislative procedure (co-decision) will from
now on apply to all autonomous commercial policy
instruments (basic regulations relating to trade protection,
GSPs, antidumping, rules of origin, etc.) (cf. Article 188 C(2);
— all trade agreements will from now on be subject to the
approval of the European Parliament (Article 188 N(6)
concerning the procedure for the negotiation and
conclusion of international agreements between the EU
and third countries or international organisations) and that
consequently this will be kept informed of the progress of
the negotiations (Article 188 N(110)), which was not the
case under earlier treaties.
The extension of the co-decision procedure should thus
increase the democratic legitimacy of European legislation on
commercial policy.
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