Behind Davos: the strategic role of EU trade agreements

As attention turns to the next US-EU trade talks in Davos, the European Union has quietly continued to advance a broader agenda of international trade agreements. Behind the scenes, the EU has remained a key player in pursuing other equally crucial trade deals, concluding more than 40 agreements with over 70 countries and regions.

The economic impact of this approach is imperative. Over 630,000 European companies export outside the single market, including more than 600,000 small and medium-sized enterprises that benefit from preferential access and reduced trade costs. Collectively, EU trade agreements save European businesses and consumers an estimated €24 billion a year in customs duties, a direct boost to competitiveness and purchasing power.

Fair competition, predictability, and non-discrimination are core principles of EU trade policy, rooted in the principles of the World Trade Organization. These values are reflected in Article 206 of the Treaty on the Functioning of the European Union, which empowers the EU to negotiate trade agreements and promote a level playing field.

Recent data also highlights the concrete export advantage associated with preferential trade agreements. Hence, according to the European Commission’s latest annual report, EU exports of goods to countries with trade agreements grew nearly twice as fast as exports to countries without them in the period through 2024 and the first half of 2025 ,1.4% versus 0.7%. In some cases, long-standing agreements have underpinned sustained export growth: EU exports to Canada have increased by more than 50% since the Comprehensive Economic and Trade Agreement (CETA) entered into force, compared with significantly slower growth in other markets.

Benedetta Zimone