Strong EU trade enforcement rules enter into force

15 Feb 2021 12:24 PM

Robust new trade enforcement rules have entered into force that will further strengthen the EU's toolbox in defending its interests. With the update of the EU's Trade Enforcement Regulation, the EU is able to act in a broader range of circumstances.

The new rules upgrade the EU's enforcement by introducing the following changes:

• empowering the EU to act to protect its trade interests in the World Trade Organization (WTO) and under bilateral agreements when a trade dispute is blocked despite the EU's good faith effort to follow dispute settlement procedures (the regulation previously only allowed action after the completion of dispute settlement procedures); and
• expanding the scope of the regulation and of possible trade policy countermeasures to services and certain trade-related aspects of intellectual property rights (IPR) (the regulation previously only permitted countermeasures in goods).

Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, recently said:

“The European Union must be able to defend itself against unfair trading practices. These new rules will help protect us from those trying to take advantage of our openness. We continue to work towards our first preference, which is a reformed and well-functioning multilateral rulebook with an effective Dispute Settlement System at its core. But we cannot afford to stand defenseless in the meantime. These measures allow us to respond resolutely and assertively.”

In line with the Political Guidelines of Commission President Ursula von der Leyen, the Commission is further reinforcing the Union's tools to focus on compliance and enforcement of the EU's trade agreements.

Ensuring the respect of the commitments agreed with other trade partners is a key priority of this Commission. The EU is therefore increasing the focus on enforcing its partners' commitments in multilateral, regional and bilateral trade agreements. In so doing the Union will rely on a suite of instruments.

Click here for the full press release