Foreign Trade Barriers Rising, EU Report Says
An annual report on trade agreements issued by the European Commission this week shows the EU has removed 140 barriers to EU exports in more than 40 countries over the last five years, unlocking more than $6 billion worth of EU exports in 2023 alone, the commission said. But it also said foreign trade barriers “have been on the rise,” adding that import local content requirements, “discriminatory practices” and import substitution “are becoming the industrial policy instrument of choice for some of our partners.”
It specifically said foreign export restrictions, including for “a number of important raw materials,” continues to be a challenge. The bloc pointed to Indonesia’s export ban on nickel ore and other foreign restrictions. China recently imposed export restrictions on gallium, germanium and other key minerals (see 2408150022).
“2023 again highlighted the importance of addressing and navigating trade barriers and protectionist measures, which remained a significant concern,” the report said. “Countries and trade blocs grappled with finding the balance between protecting domestic industries and fostering a free and fair-trading system.”
The EU also highlighted the importance of the World Trade Organization, saying that even though "most barriers continue to be tackled” through one-on-one talks, “it continues to be necessary in some cases to move to formal dispute procedures, either under a bilateral agreement or in the WTO.” The body’s dispute settlement procedure, “albeit taking its time,” is “an important avenue for the EU’s enforcement action,” the report said. “It is a well-established and rule-oriented way to resolve disputes away from unnecessary politicisation. By reinforcing the rule of law, the dispute settlement system also makes the trading system more secure and predictable.”