From negotiation to ratification: How the EU adopts its trade agreements

Agreements can take different forms depending on the partners and objectives. Free trade agreements (FTAs) aim to reduce customs barriers and facilitate mutual market access. Association agreements (AAs) combine economic and political aspects, including cultural or scientific cooperation. Economic partnership agreements (EPAs) are designed for developing countries and provide for a gradual opening of their markets to prevent any trade imbalances. Some so-called “mixed” agreements cover areas that fall under both the EU and Member States and therefore require national ratification in addition to European approval.

Once negotiations are completed, the agreement is translated into all official EU languages and submitted to the Council for authorization to sign. Depending on the issues covered, the vote may be by qualified majority or unanimity. Next, the European Parliament votes on the text. For mixed agreements, each Member State must also give its approval, sometimes through a referendum or via regional parliaments.

To accelerate entry into force, parts of an agreement that fall exclusively under EU competence may be applied provisionally before the entire treaty is ratified, as was the case for the EU-Mercosur agreement.

In summary, concluding a trade agreement in the EU combines centralized negotiations, parliamentary consultations, and national approvals. This complex system ensures that trade decisions meet the Union’s economic objectives while respecting its principles and values.

Trade agreements are a cornerstone of the European Union’s economic strategy. They aim not only to facilitate trade and stimulate economic activity but also to promote the Union’s core values, such as human rights, democracy, and environmental protection. The procedure for concluding them is structured and involves multiple institutional actors.

The European Commission is responsible for conducting negotiations with third countries, but it cannot act alone. It receives a precise mandate from the Council of the European Union, which defines the objectives and limits of each negotiation.

This mandate, known as the negotiating directives, provides a framework for discussions and ensures that the interests of Member States are taken into account from the outset. Meanwhile, the European Parliament closely monitors the process and has the power to approve or reject the final agreement, although it cannot amend its content.