 Stakanov R.D., 2014
Lecture 1. The objectives and principles of the
common commercial policy of the European
Union
 Economic integration
 The Single Market and the Common External
Trade Policy
 Trade Policy Review of the EU
 Common commercial policy in general.
 CCP after Lisbon treaty.
The degree of economic integration can be
categorized into several stages:
Preferential trading area
Free trade area
Customs union,
Common market
Economic and monetary union
Fiscal union
Complete economic integration
The Single Market and the Common External
Trade Policy
The European Union is a supranational union of 28 European Member States. It
was established under that name in 1992 by the Treaty on European Union (also
known as the Maastricht Treaty). However many aspects of the Union existed
before that date, through a series of acts dating back to 1951.
The EU's activities cover all areas of public policy, from health and
economic policy to foreign affairs and defence. However, the extent of
its powers (its competences) differs greatly between areas. Thus, for
example, it resembles a federation on trade with third countries,
monetary affairs, agricultural and environmental policy. It resembles
a confederation on social and economic policy, consumer protection,
and home affairs, and it resembles an international organisation in
external relations (foreign affairs). Each successive treaty, however,
has increased the EU's competences, particularly with regard to
monetary affairs environmental policy, and consumer protection.
 A key activity of the EU is the establishment and
administration of a common single market,
consisting of a customs union, a common trade policy,
the single currency, a common agricultural policy, and
a common fisheries policy.
 The customs union is a free trade area with a common
external tariff: as the EU is a group of Member States
forming a customs union, it has introduced such a
tariff system. The same customs duties, quotas,
preferences or other non-tariff barriers to trade apply
to all goods entering the area, regardless of which
Member State within the area they are entering.
The EU's 28 Member States negotiate as
one through the European Commission.
The formulation of the EU's external
trade policy has traditionally involved
Member States' representatives, who are
closely consulted on a regular basis, and
each Member State's government
ministers, who themselves take the key
decisions about the direction of trade
policy through majority (or in some
areas, unanimous) voting within the EU's
Council of Ministers. The European
Parliament
is
kept
abreast
of
developments.
The external trade policy of the EU, which
covers approximately one-fifth of world
trade, is referred to in EU parlance as the
Common Commercial Policy (CCP).
While commercial policy originally focused
on tariffs and other border measures which
affected trade in goods, the scope of the
policy today is far more diverse. Other policy
areas, which can be generally referred to as
regulatory issues, have become increasingly
relevant to international trade.
These mainly include the following:
Policy areas, which can be generally referred to as
regulatory issues
a. technical standards and regulations,
b. environmental policy,
c. consumer policy,
d. intellectual property,
e. competition policy.
Common commercial policy: general view
A commercial policy (also referred to as a trade policy or
international trade policy) is a governmental policy governing
trade with third countries. This covers tariffs, trade subsidies,
import quotas, Voluntary Export Restraints, restrictions on the
establishment of foreign-owned businesses, regulation of trade
in services and other barriers to international trade.
 The creation of a customs union in
the European Economic Community
in 1968 was implemented internally
through the abolition of customs
duties, quantitative restrictions and
measures having equivalent effect
between Member States and, on the
external
front,
through
the
introduction of a common customs
tariff and a common commercial
policy. In fact, goods imported from
third countries had to be treated in
the same way by all Member States
in order to circulate freely in the
customs union. But the customs
union itself had to be integrated into
the existing international economic
order, regulated by the 1948 General
Agreement on Tariffs and Trade
(GATT).
CCP after Lisbon treaty
 With the foundation of the WTO in 1994 and new
developments in international economic law deficits
in the CCP became visible.
 Systematically the Lisbon Treaty restructures the
external policies and integrates the CCP, the
development cooperation and economic, financial and
technical cooperation with third countries together as
part five of the Treaty on the Functioning of the
European Union.
 Since the Lisbon Treaty entered into force in December 2009,
the EU's external trade and investment policy has been
conducted within a transformed legal and institutional
framework. The European Parliament has rights equal with the
Council in adopting EU trade legislation, and must give its
consent before the Council can ratify international trade
agreements. In addition, the Lisbon Treaty broadened the
exclusive competence of the EU to encompass foreign direct
investment. Several trade policy regulations, including on
contingency measures, are being adapted to the new standard
"comitology" rules defining procedures for the control by
member States of the Commission's exercise of its
implementing powers. The Commission considers that the new
comitology rules increase transparency and give it greater
political responsibility.
NB!
After the entry into force of the
Lisbon Treaty the CCP covers
trade in goods and services,
commercial
aspects
of
intellectual
property
and
foreign direct investment.
International agreements on trade in services will not
have to be concluded any more by both EU and Member
States. Out of this aspect and the new EU competence for
foreign direct investment multiple questions of
international and European law arise.
 For the first time Foreign Direct Investments are included in
the scope of the CCP: After the entry into force of the Lisbon
Treaty the EU would have the exclusive competence in this
field. Therefore EU Member States could not conclude so
called “Bilateral Investment Treaties” or BITs any more.
Today Germany has concluded almost 140 of such BITs, Great
Britain more than 120, Austria 50 and France almost one
hundred – it is a “spaghetti bowl” of BITs after a Multilateral
Agreement on Investment had failed in the OECD in 1998.
Negotiations in the WTO-Doha-Round on a new Agreement
on Trade and Investment were terminated at an early stage.
“After Lisbon” the EU would possess exclusive powers to
negotiate BITs in almost all sectors and to adopt the
appropriate legislation regarding the access of foreign direct
investments into the EU internal market.
References
 1. Brülhart M. Matthews A. EU External Trade Policy / The European Union:




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
Economics & Policies, 8th edition. Cambridge University Press // Marius Brülhart
Alan Matthews. – 2007. - [Electronic Resource] - Mode of access:
www.hec.unil.ch/mbrulhar/papers/elagraa610.pdf
2. Moussis N. Access to European Union. 18th updated edition. / Nicholas Moussis. –
2009. – 556 p. [Electronic Resource] - Mode of access:
http://europedia.moussis.eu/about/?book=B0001
3. EU commercial policy / [Electronic Resource] - Mode of access:
http://www.europedia.moussis.eu/books/Book_2/7/23/index.tkl?term=%20EC%20Tre
aty&s=1&e=20&pos=88&all=
4. European Custom Law / [Electronic Resource] - Mode of access:
http://www.studymode.com/course-notes/European-Custom-Law-1839234.html
5. The European Community Common Customs / [Electronic Resource] - Mode of
access:
Tariff http://www.sec.gov/Archives/edgar/data/1471302/000114420409055618/v164311_
s1a.htm
6. The Single Market and the Common External Trade Policy / [Electronic Resource] Mode of access: http://info.hktdc.com/euguide/1-4.htm
7. WTO Praises EU for Resisting Protectionist Pressures but Highlights Existing
Barriers / [Electronic Resource] - Mode of access: http://www.strtrade.com/newspublications-5969.html
Thank you!
Any questions, comments
or suggestions
are welcome!