Recent estimates suggest that deepening relationships between the EU and its key trading partners could contribute significantly to Europe’s recovery.
If the EU pursues its ambitious external trade agenda this could boost the EU’s GDP by 2%, or more than €250 billion, MEPs were told recently. This is equivalent to adding an economy the size of Austria or Denmark.
An ambitious agenda could also help create more than two million jobs across the EU.
By 2015, 90% of economic growth will be generated outside Europe, with one-third in China alone. Hence, tapping into the markets of the Union’s key trading partners will play an increasingly significant role for Europe’s growth in the future, the European Parliament was told at a recent meeting.
More than two-thirds of these gains in growth and jobs would materialise through trade agreements with the USA and Japan.
Having seen the free trade agreement (FTA) with South Korea through to its first anniversary recently, the European Commission believes that FTAs are “within reach” this year with Canada and Singapore.
Despite difficulties in moving forward in the multilateral context of the World Trade Organization (WTO), the Commission said, the EU has not stood still in the face of rapid changes in the global economy and is moving ahead to further connect to new global growth centres.
FTAs covered less than a quarter of EU trade before 2006. Concluding on-going negotiations with Canada, Singapore, India and other ASEAN states would bring this figure up to half, and moving forward with the USA and Japan would bring it up to two-thirds.
The EU remains the world’s largest exporter, importer, source and recipient of foreign direct investment (FDI). It has managed to hold on to its 20% share of total world exports despite the rise of China, whereas Japan and the USA have seen significant declines in their shares.
