Brussels, 22 February 2024
A study assessing the potential impact of ten free trade agreements (recently concluded or currently under negotiation) confirms that the EU trade approach opens new commercial opportunities for EU agri-food exporters. Engaging in preferential trade relations diversifies import sources, thus improving the resilience of EU food supply chains.
The development of new markets through preferential trade relations will help consolidate the EU’s position as the world’s top exporter of agri-food products: in 2022, the EU’s positive agri-trade balance reached €58 billion.
The study estimates that the value of EU agri-food exports would be between €3.1 billion and €4.4 billion higher in 2032 than they would have been without these ten trade agreements, while the value of EU imports would be between €3.1 billion to €4.1 billion higher. This would result in a balanced increase of both exports and imports, with the overall EU trade balance slightly increasing as a result.
The study acknowledges that some sensitive sectors, notably beef, sheep meat, poultry, rice and sugar, are expected to face increased competition by the ten partners referred to in the study. This conclusion validates the current EU approach of systematically protecting sensitive sectors with carefully calibrated tariff rate quotas (TRQs). This essential tool in trade agreements can help mitigate possible market disruptions, thus providing protections to EU farmers and agri-food producers.
For more information, please consult the JRC Study and the press release.
Source – EU Commission