In a new paper published today, BusinessEurope has emphasized the need for the European Union to use the upcoming legislative cycle to revitalize its trade agenda. BusinessEurope Director General Markus J. Beyrer stated, “During the next institutional cycle, we call on EU leaders to adopt a trade agenda that is proactive, creative and forward-looking. To rebalance the focus placed in recent years on its defensive toolkit, the EU must develop an ambitious diversification strategy."
Beyrer highlighted that this strategy requires a creative approach since "one size does not fit all" regarding the EU’s trading relationships. He suggested that the EU should pursue a new generation of bilateral arrangements with third countries, offering various options and instruments to partners. These could include fully-fledged trade agreements, sectorial agreements for willing sectors, partnerships on digital matters, critical raw materials or regulatory cooperation, and initiatives under the Global Gateway.
"The EU must tailor its approach to the level of development of partner countries and reduce ambition when necessary," Beyrer added. He also recommended considering a more extensive use of ‘cumulation of rules of origin’ for willing sectors and open trade agreements that allow third countries to join.
Beyrer noted that relations with two key trading partners—the United States and China—would be crucial for ensuring the EU’s future competitiveness. For transatlantic relations, he proposed reducing business costs across the Atlantic through measures such as a mutual recognition agreement on conformity assessment. Regarding China, he advised that "the EU should be assertive and united in protecting its economic interests," while continuing engagement with China on foreign policy, trade, and investment.
Finally, Beyrer underscored the importance of remaining committed to the World Trade Organization (WTO) and working towards its sustainability. “Despite its challenges,” he said, “the WTO remains a safety net for companies that depend on a rules-based and enforceable trade regime to operate.”
To read BusinessEurope’s full publication, click here.