European Union

Prepared BY: Upendra Raj Dulal

 European Union?
• European Union is an international organization consisting
of European Countries, which was formed in 1993.
• It came into force after the signing of the Maastricht
Treaty by 28 countries.
• The Maastricht Treaty is also known as the Treaty of the
European Union (TEU).
• Maastricht is a city located in the Netherlands.
• The Maastricht Treaty was amended thrice. The
amendments are listed below.
1) Treaty of Amsterdam (1997)
2) Treaty of Nice (2001)
3) Treaty of Lisbon (2007)
 Fact?
Members of the EU 27;
UK made an exit from the EU on 31st January 2020

Current EU Parliament President Roberta Metsola [Her term will expire in 2.5 years from
18 January 2022]
Current European Council Charles Michel [Her term will expire in 2.5 years from
President 1st June 2022 i.e. 30 November 2024]
Current European Commission Ursula von der Leyen [Her term will expire in May
President 2024]
Official Language of EU European Union has 24 official languages
EU FLAG
 European Union – Origins

• Following the aftermath of World War II, European leaders

realised that only large-scale integration would be an antidote
to the extreme nationalism that was the cause of the global war.
• Winston Churchill went further and advocated the emergence
of the United States of Europe.
• The 1948 Hague Congress was a pivotal moment in European
federal history, as it led to the creation of the European
Movement International and of the College of Europe, where
Europe’s future leaders would live and study together.
• The founding of the following unions which eventually evolved
into the European Union:
a) European Coal and Steel Community (ECSC) – Treaty of Paris
1951
b) European Economic Community (EEC) – Treaty of Rome 1957
 European Union – Origins
• The original 6 members of European Communities were
1) France
2) Italy
3) Netherlands
4) Belgium
5) West Germany
6) Luxembourg
• European Union – Brexit
• On January 31, 2020, the United Kingdom (U.K) formally
left the European Union. U.K is the first country to leave
the E.U. The exit was in accordance with Article 50 of
the Treaty of the European Union.
 History of EU- Additional Info
• When French Foreign Minister Robert Schuman proposed integrating western
Europe’s coal and steel industries in 1950, his ideas were set out in the Treaty
of Paris the following year, and the precursor to the EU — the European Coal
and Steel Community — was born. Since then, the EU has regularly updated
and added to the treaties to ensure effective policy and decision-making.
• The Treaty of Paris, establishing the European Coal and Steel Community, was
signed in Paris on 18 April 1951 and entered into force in 1952. It expired in
2002.
• The Treaties of Rome, establishing the European Economic Community (EEC)
and the European Atomic Energy Community (Euratom), were signed in Rome
on 25 March 1957 and came into force in 1958.
• The Single European Act (SEA) was signed in February 1986 and came into
force in 1987. It amended the EEC Treaty and paved the way for completing
the single market.
• The Treaty on European Union (EU) — the Maastricht Treaty — was signed in
Maastricht on 7 February 1992 and came into force in 1993. It established the
European Union, gave the Parliament more say in decision-making and added
new policy areas of cooperation
 Objectives of EU?
The EU’s aims are laid out in article 3 of the Lisbon Treaty.
A. Within its Borders
• promote peace, its values and the well-being of its citizens
• offer freedom, security and justice without internal borders,
while also taking appropriate measures at its external borders
to regulate asylum and immigration and prevent and combat
crime
• establish an internal market
• achieve sustainable development based on balanced
economic growth and price stability and a highly competitive
market economy with full employment and social progress
• protect and improve the quality of the environment
• promote scientific and technological progress
• combat social exclusion and discrimination
• promote social justice and protection, equality between
women and men, and protection of the rights of the child
• enhance economic, social and territorial cohesion and
solidarity among EU countries
• respect its rich cultural and linguistic diversity
• establish an economic and monetary union whose currency is
the euro

B. Wider World
• uphold and promote its values and interests
• contribute to peace and security and the sustainable
development of the Earth
• contribute to solidarity and mutual respect among peoples,
free and fair trade, eradication of poverty and the protection
of human rights
• strict observance of international law
 Values?
• The EU’s values are laid out in article 2 of the Lisbon Treaty and the EU Charter
of Fundamental Rights which are as follows :

• Human dignity
Human dignity is inviolable. It must be respected, protected and constitutes
the real basis of fundamental rights.
• Freedom
Freedom of movement gives citizens the right to move and reside freely within
the Union. Individual freedoms such as respect for private life, freedom of
thought, religion, assembly, expression and information are protected by the
EU Charter of Fundamental Rights.

• Democracy
The functioning of the EU is founded on representative democracy. A European
citizen automatically enjoys political rights. Every adult EU citizen has the right
to stand as a candidate and to vote in elections to the European Parliament. EU
citizens have the right to stand as a candidate and to vote in their country of
residence, or in their country of origin.
• Equality
Equality is about equal rights for all citizens before the law. The principle of
equality between women and men underpins all European policies and is
the basis for European integration. It applies in all areas. The principle of
equal pay for equal work became part of the Treaty of Rome in 1957.

• Rule of law
The EU is based on the rule of law. Everything the EU does is founded on
treaties, voluntarily and democratically agreed by its EU countries. Law and
justice are upheld by an independent judiciary. The EU countries gave final
jurisdiction to the European Court of Justice - its judgments have to be
respected by all.

• Human rights
Human rights are protected by the EU Charter of Fundamental Rights.
These cover the right to be free from discrimination on the basis of sex,
racial or ethnic origin, religion or belief, disability, age or sexual orientation,
the right to the protection of your personal data, and the right to get
access to justice.
 STRUCTURE
• There are 7 European institutions, 7 EU bodies and over 30
decentralized agencies spread across the EU. They work
together to address the common interests of the EU and
European people.
• In terms of administration, there are further 20 EU agencies
and organizations which carry out specific legal functions and
4 inter-institutional services which support the institutions.
• All of these establishments have specific roles – from
developing EU laws and policy-making to implementing
policies and working on specialist areas, such as health,
medicine, transport and the environment.
• There are 4 main decision-making institutions which lead the
EU’s administration. These institutions collectively provide the
EU with policy direction and play different roles in the law-
making process:
a) the European Parliament (Brussels/Strasbourg/Luxembourg)
b) the European Council (Brussels)
c) the Council of the European Union (Brussels/Luxembourg)
d) the European Commission
(Brussels/Luxembourg/Representations across the EU)

• Their work is complemented by other institutions and bodies,

which include:
A. the Court of Justice of the European Union (Luxembourg)
B. the European Central Bank (Frankfurt)
C. the European Court of Auditors (Luxembourg)
 The European Parliament
• Members of the European Parliament (MEPs) are directly elected
by EU citizens to represent their interests.
• Elections are held every 5 years and all EU citizens over 18 years
old (16 in Austria) are entitled to vote.
• Last Elections was held in May 2019
• The Parliament has 705 MEPs from all 27 Member States.
• The official seat of the European Parliament is in Strasbourg
(France), although the institution has three places of work:
Strasbourg, Brussels (Belgium) and Luxembourg.
• The main meetings of the whole Parliament, known as ‘plenary
sessions’, take place in Strasbourg 12 times per year.
• Additional plenary sessions are held in Brussels. Committee
meetings are also held in Brussels.
What the European Parliament does?
• The Parliament has three main roles:
1. It shares with the Council the power to legislate — to
pass laws. The fact that it is a directly elected body helps
guarantee the democratic legitimacy of European law.
2. It exercises democratic supervision over all EU
institutions, and in particular the Commission. It has the
power to approve or reject the nomination of the
President of the Commission and Commissioners, and the
right to censure the Commission as a whole.
3. It shares authority with the Council over the EU budget
and can therefore influence EU spending. At the end of the
budget procedure, it adopts or rejects the budget in its
entirety.
• The Parliament’s work is divided into two main stages:
• Preparing for the plenary session: this is done by the MEPs in the
20 parliamentary committees that specialize in particular areas of
EU activity, for example the ECON Committee for Economic and
Monetary Affairs or the INTA Committee for International Trade.
The issues for debate are also discussed by the political groups.

• The plenary session itself: plenary sessions, attended by all

MEPs, are normally held in Strasbourg (1 week per month) and
sometimes additional sessions are held in Brussels. At plenary
sessions, the Parliament examines proposed legislation and votes
on amendments before coming to a decision on the text as a
whole. Other items on the agenda may include Council or
Commission ‘communications’ or questions about what is going
on in the EU or in the wider world.
• For Further reading (How MEPs are elected?)
https://www.electionseuropeennes.eu/en/meps/
 The European Council
• The European Council brings together the EU’s top
political leaders, i.e. Prime Ministers and Presidents
along with its President and the President of the
Commission.
• They meet at least four times a year to give the EU as
a whole general political direction and priorities.
• The High Representative of the Union for Foreign
Affairs and Security Policy also takes part in the work
of the European Council.

Secretariat
• The European Council is assisted by the General
Secretariat of the Council.
 How the European Council takes its
decisions?
• The European Council takes most of its decisions
by consensus.
• In a number of cases, however, qualified majority
applies, such as the election of its President, and
the appointment of the Commission and of the
High Representative of the Union for Foreign
Affairs and Security Policy.
• When the European Council decides by vote, only
the Heads of State or Government may cast a vote.
 What European Council Does?
• It represents the highest level of political cooperation
between the Member States. At their meetings, the
leaders decide by consensus on the overall direction and
priorities of the Union, and provide the necessary
impetus for its development.
• it issues ‘conclusions’, at the end of each meeting which
reflect the main messages resulting from the discussions
and also as regards their follow-up. The conclusions
identify major issues to be dealt with by the Council, i.e.
the meetings of ministers. They may also invite the
European Commission to come forward with proposals
addressing a particular challenge or opportunity facing
the Union.
 The Council
• In the Council, ministers of EU Member States meet to discuss
EU matters, take decisions and pass laws.
• The ministers who attend these meetings have the authority
to commit their government to the actions agreed in the
Council meetings.

• What the Council does ?

• The Council is an essential EU decision-maker.
• Its work is carried out in Council meetings that are attended
by one minister from each of the EU’s national governments.
• The purpose of these gatherings is to: discuss, agree, amend
and, finally, adopt legislation; coordinate the Member States’
policies; or define the EU’s foreign policy
• The Council has five key responsibilities:
1. to pass European laws — in most fields, it
legislates jointly with the European Parliament;
2. to coordinate the Member States’ policies, for
example, in the economic field;
3. to develop the EU’s common foreign and security
policy, based on guidelines set by the European
Council;
4. to conclude international agreements between
the EU and one or more states or international
organizations;
5. to adopt the EU’s budget, jointly with the
European Parliament.
 The European Commission
• The Commission is the politically independent institution that
represents and upholds the interests of the EU as a whole.
• In many areas it is the driving force within the EU’s institutional
system: it proposes legislation, policies and programs of action
and is responsible for implementing the decisions of the
European Parliament and the Council.
• It also represents the Union to the outside world with the
exception of the common foreign and security policy.
• The Commission remains politically answerable to the
Parliament, which has the power to dismiss it by adopting a
motion of censure.
• The Commission attends all the sessions of the Parliament,
where it must clarify and justify its policies.
• It also replies regularly to written and oral questions posed by
Members of Parliament.
• The day-to-day work of the Commission is done by
its administrative officials, experts, translators,
interpreters and secretarial staff. Commission
officials — like the staff of other EU bodies — are
recruited via the European Personnel Selection
Office (EPSO)
• The European Commission has four main roles:
1. to propose legislation to the Parliament and the
Council;
2. to manage and implement EU policies and the
budget;
3. to enforce European law (jointly with the Court of
Justice);
4. to represent the Union around the world.
 Others

a. The Court of Justice :

• Role: Ensuring EU law is interpreted and
applied the same in every EU country; ensuring
countries and EU institutions abide by EU law.
• Members:
– Court of Justice: 1 judge from each EU country, plus
11 advocates general
– General Court: 2 judges from each EU country
• Established in: 1952
• Location: Luxembourg
 Composition

• The CJEU is divided into 2 courts:

• Court of Justice – deals with requests for preliminary
rulings from national courts, certain actions for
annulment and appeals.
• General Court – rules on actions for annulment
brought by individuals, companies and, in some cases,
EU governments. In practice, this means that this
court deals mainly with competition law, State aid,
trade, agriculture, trade marks.
• Each judge and advocate general is appointed for a
renewable 6-year term, jointly by national
governments. In each Court, the judges select
a President who serves a renewable term of 3 years.
 How does the CJEU work?
• In the Court of Justice, each case is assigned 1 judge (the "judge-rapporteur") and 1
advocate general.
• Cases are processed in 2 stages:
• Written stage
– The parties give written statements to the Court - and observations can also be submitted
by national authorities, EU institutions and sometimes private individuals.
– All of this is summarized by the judge-rapporteur and then discussed at the Court's general
meeting, which decides:
• How many judges will deal with the case: 3, 5 or 15 judges (the whole Court), depending on the
importance and complexity of the case. Most cases are dealt with by 5 judges, and it is very rare for
the whole Court to hear the case.
• Whether a hearing (oral stage) needs to be held and whether an official opinion from the advocate
general is necessary.
• Oral stage – a public hearing
– Lawyers from both sides can put their case to the judges and advocate general, who can
question them.
– If the Court has decided an Opinion of the advocate general is necessary, this is given some
weeks after the hearing.
– The judges then deliberate and give their verdict.
• General Court procedure is similar, except that most cases are heard by 3 judges
and there are no advocates general.
 The CJEU and Private Individual
• If a private individual or as a company – have suffered
damage as a result of action or inaction by an
EU institution or its staff, you can take action against
them in the Court, in one of 2 ways:
• indirectly through national courts (which may decide
to refer the case to the Court of Justice)
• directly before the General Court – if a decision by an
EU institution has affected you directly and individually.
• If you feel that the authorities in any country
have infringed EU law, you must follow the official
complaints procedure.
 What does the CJEU do?
• The CJEU gives rulings on cases brought before it. The most common types of case are:
• interpreting the law (preliminary rulings) – national courts of EU countries are required to
ensure EU law is properly applied, but courts in different countries might interpret it
differently. If a national court is in doubt about the interpretation or validity of an EU law, it
can ask the Court for clarification. The same mechanism can be used to determine whether
a national law or practice is compatible with EU law.
• enforcing the law (infringement proceedings) – this type of case is taken against a national
government for failing to comply with EU law. Can be started by the European
Commission or another EU country. If the country is found to be at fault, it must put things
right at once, or risk a second case being brought, which may result in a fine.
• annulling EU legal acts (actions for annulment) – if an EU act is believed to violate EU
treaties or fundamental rights, the Court can be asked to annul it – by an EU government,
the Council of the EU, the European Commission or (in some cases) the European
Parliament.
Private individuals can also ask the Court to annul an EU act that directly concerns them.
• ensuring the EU takes action (actions for failure to act) – the Parliament, Council and
Commission must make certain decisions under certain circumstances. If they don't, EU
governments, other EU institutions or (under certain conditions) individuals or companies
can complain to the Court.
• sanctioning EU institutions (actions for damages) – any person or company who has had
their interests harmed as a result of the action or inaction of the EU or its staff can take
action against them through the Court.
b. The European Central Bank (ECB) :
• The ECB was created in June 1998, following the Treaty of
Amsterdam that amended the Treaty on the European Union.
• Role: To manage the euro, keep prices stable and conduct EU
economic & monetary policy
• President: Christine Lagarde
• Members: ECB President and Vice-President and governors of
national central banks from all EU countries
• Established in: 1998
• Location: Frankfurt (Germany
• The European Central Bank (ECB) manages the euro and frames and
implements EU economic & monetary policy. Its main aim is to keep
prices stable, thereby supporting economic growth and job creation.

Source:
https://european-union.europa.eu/institutions-law-budget/institutio
ns-and-bodies/search-all-eu-institutions-and-bodies/european-centr
al-bank-ecb_en#:~:text=Consists%20of%20the%20ECB%20President,
 What does the ECB do?
• sets the interest rates at which it lends to commercial
banks in the eurozone (also known as the euro area), thus
controlling money supply and inflation
• manages the eurozone's foreign currency reserves and the
buying or selling of currencies to balance exchange rates
• ensures that financial markets & institutions are well
supervised by national authorities, and that payment
systems work well
• ensures the safety and soundness of the European banking
system
• authorises production of euro banknotes by eurozone
countries
• monitors price trends and assesses risks to price stability.
 Composition

• The ECB President represents the Bank at high-level EU and

international meetings. The ECB has the 3 following decision-
making bodies:
• Governing Council – the main decision-making body.
Consists of the Executive Board (see below) plus the governors
of the national central banks from eurozone countries.
• Executive Board – handles the day-to-day running of the ECB.
Consists of the ECB President and Vice-President and 4 other
members appointed for 8-year terms by the leaders of the
eurozone countries.
• General Council – has more of an advisory & coordination role.
Consists of the ECB President and Vice-President and the
governors of the central banks from all EU countries.
 How does the ECB work?

• The ECB works with the national central banks of all EU countries.
Together they form the European System of Central Banks.
• It leads cooperation between central banks in the eurozone. This
is referred to as the Eurosystem.
• The work of the governing bodies
• Governing Council – assesses economic and monetary
developments, defines eurozone monetary policy and fixes the
interest rates at which commercial banks can borrow from the
ECB.
• Executive Board – implements monetary policy, manages day-to-
day operations, prepares Governing Council meetings and
exercises powers delegated to it by the Governing Council.
• General Council – contributes to advisory and coordination work
and helps to prepare for new countries joining the euro
c. The Court of Auditors:
• Role: To check EU funds are collected and used correctly,
and help improve EU financial management.
• President: Tony Murphy
• Members: 1 from each EU country
• Established in: 1977
• Location: Luxembourg

• As the EU's independent external auditor, the European

Court of Auditors (ECA) looks after the interests of EU
taxpayers. It does not have legal powers, but works to
improve the European Commission's management of
the EU budget and reports on EU finances
 What does the ECA do?

• audits EU revenue & expenditure, to check EU funds are correctly raised,

spent, achieve value for money and accounted for
• checks any person or organisation handling EU funds – including spot
checks in EU institutions (especially the Commission), EU countries and
countries receiving EU aid
• writes up findings and recommendations in audit reports, for the European
Commission and national governments
• reports suspected fraud, corruption or other illegal activity to the European
Anti-Fraud Office (OLAF)
• produces an annual report for the European Parliament and Council of the
EU, which the Parliament examines before deciding whether to approve the
Commission's handling of the EU budget
• gives its expert opinion to EU policymakers on how EU finances could be
better managed and made more accountable to citizens
• Also publishes opinions on preparatory legislation that will impact EU
financial management, as well as position papers, reviews and ad hoc
publications on EU public finance issues.
• To be effective, the Court must be independent of the
institutions and bodies it audits. To this end, it is free to decide
on:
• what it will audit
• how to do this
• how & when to present its findings
• The Court's audit work focuses mainly on the European
Commission – the main body responsible for implementing the
EU budget. But it also works closely with national authorities,
because the Commission manages most EU funds (around
80%) jointly with them.

Composition
• Court members are appointed by the Council, after consulting
the Parliament, for renewable 6-year terms. They choose one
of their number as President for a 3-year term (also
renewable).
 How does the ECA work?

• It carries out 3 types of audit:

• Financial audits – checking that accounts accurately
present the financial position, results and cash flow
for the year.
• Compliance audits – checking that financial
transactions follow the rules.
• Performance audits – checking that the EU funds
achieve its goals with the fewest possible resources
and in the most economical manner.
• The Court is divided into audit groups called
'chambers'. They prepare reports & opinions for the
Court members to adopt, thus making them official.
 EU and International Trade
• The European Union is one of the most outward-oriented
economies in the world.
• It is also the world’s largest single market area.
• Free trade among its members is one of the EU's founding
principles, and it is committed to opening up world trade as well.
• The EU is responsible for the trade policy of the member
countries and negotiates agreements for them.
• The EU actively engages with countries or regional groupings to
negotiate trade agreements.
• These agreements grant mutually-beneficial access to the
markets of both the EU and the countries concerned.
• EU companies can grow their business, and can also more easily
import the raw materials they use to make their products.
• Each agreement is unique and can include tariff
reductions, rules on matters such as intellectual
property or sustainable development, or clauses on
human rights.
• The EU supports and defends EU industry and business
by working to remove trade barriers so that European
exporters gain fair conditions and access to other
markets.
• At the same time, the EU supports foreign companies
with practical information on how to access the EU
market.
• The EU also works with the World Trade Organization
(WTO) to help set global trade rules and remove
obstacles to trade between WTO members.
• The EU manages trade and investment relations with non-
EU countries through the EU's trade and investment
policy.
• EU's exclusive powers covers not just trade in goods, but
also:
- services
- commercial aspects of intellectual property
- foreign direct investment
• Formation of the European Economic Community (EEC) in
1957 and European Free Trade Association (EFTA) in 1960:
the first remarkable examples of regional trade
agreements.
• EEC trade policy priority in the 1970s and 1980s was
preferential trade agreements mainly with neighboring
countries
Global Europe
• “rejection of protectionism at home,
accompanied by activism in creating open
markets and fair conditions for trade abroad”
• focuses on the need to identify and remove tariff
and non-tariff barriers (NTBs) to market access for
goods and services that are important for the
European exporters.
• influence the forces driving change, to seize the
opportunities of globalization and to manage the
risks and challenges posed by the emerging
economies especially in Asia and South America.
• Economic criteria: market potential and the level of
protection (tariffs and NTBs) against EU export interests
• Target countries: Prior FTA partners: ASEAN, Korea and
Mercosur
• Countries of direct interest: India, Russia and the Gulf
Cooperation Council
• Country of special attention: China
• Coverage: the highest possible degree of trade,
investment, and services liberalization, in addition to a
ban on export taxes and quantitative import
restrictions. regulatory convergence, non-tariff barriers
and stronger provisions on intellectual property rights
and competition
• EU’s FTAs Agreements with neighbors: (EFTA, Turkey, Central
and Western European countries and West Balkans -
Association Agreements for potential future EU countries)
• Agreements designed primarily to foster stability around
the EU borders: (Mediterranean countries, Gulf States,
Ukraine)
• Agreements with a historical and development focus: (EPAs
with African, Caribbean and Pacific (ACP) regions)
• FTAs with strategic partners: countries and regions where
EU’s objective is to neutralize potential discrimination
against EU exports and investments resulting from FTAs
between third countries or to secure commercial benefits
via increased market access (e.g Korea, Chile, South Africa,
Singapore etc.)
 Trade Agreements in Europe
• Norway - 01 July 1973 (EEA)
• Iceland - 01 April 1973 (EEA)
• Switzerland - 01 January 1973
• Faroe Islands - 01 January 1997
• Macedonia - Stabilisation and Association Agreement, 01 May
2004
• Albania - Stabilisation and Association Agreement, 01 April
2009
• Montenegro - Stabilisation and Association Agreement, 01 May
2010
• Bosnia and Herzegovina - Interim Agreement on trade and
trade related matters, 01 July 2008
• Serbia - Interim Agreement on trade and trade related matters,
01 February 2010
 Trade Agreements in the Mediterranean Region
• Palestinian Authority - Association Agreement, 01
July 1997
• Syria - Co-operation Agreement, 01 July 1977
• Tunisia - Association Agreement, 01 March 1998
• Morocco - Association Agreement, 01 March 2000
• Israel - Association Agreement, 01 June 2000
• Jordan - Association Agreement, 01 May 2002
• Lebanon - Interim Agreement, 01 March 2003
• Egypt - Association Agreement, 01 June 2004
• Algeria - Association Agreement, 01 September 2005
 Trade Agreements in Other Countries
• Mexico - Economic Partnership, Political Coordination and Cooperation
Agreement, 01 July 2000
• South Africa - Trade, Development and Co-operation Agreement, 01 January
2000
• CARIFORUM States - Economic Partnership Agreement, Provisionally applied
• Chile - Association Agreement and Additional Protocol, 01 February 2003
(trade) / 01 March 2005 (full agreement)
• Madagascar, Mauritius, the Seychelles, and Zimbabwe Interim Partnership
Agreement signed in August 2009
• Korea - New Generation Free Trade Agreement, signed 06 October 2010
• Papua New Guinea and Fiji - Interim Partnership Agreement ratified by Papua
New Guinea in May 2011
• EU-Iraq - Partnership and Cooperation Agreement, signed on 11 May 2012
• Colombia and Peru - Trade Agreement, signed 26 July 2012
• Central America - Association Agreement with a strong trade component,
signed 29 June 2012
 Generalised System of Preferences (GSP)

• allows exporters from developing countries and LDCs to

pay lower duties on their exports to the EU
• Standard GSP scheme: tariff reductions to developing
countries. partial or entire removal of tariffs on 2/3 of
all product categories.
• GSP+: full removal of tariffs to countries which ratify
and implement international conventions relating to
human and labour rights, environment and good
governance
• Everything but Arms (EBA): scheme for LDCs, duty-free
quota-free access to all products, except for arms and
ammunitions
• The European Union​​(EU) is the world’s largest exporter.
• With over 446 million consumers, this single market with
common rules also represents an attractive export market for
non-EU countries.
• The EU has exclusive power to legislate on trade matters and
to conclude international trade agreements, based on World
Trade Organization​​rules, on behalf of its 27 Member States​​.
• Its policy covers trade in goods and services but also matters
such as the commercial aspects of intellectual property​​and
foreign direct investment.
• It has enacted trade defense and market access instruments,
with the main purpose of protecting EU businesses from
obstacles to trade.
• Lastly, it helps developing countries participate in trade by
means of lower duties and support programs
THINGS TO KNOW
• Q 1) Why is the United Kingdom (U.K) leaving the European
Union?
• As per some reports, some of the main reasons for the U.K leaving
the E.U are mentioned below.
• To regain control over immigration and its borders.
• The Brexit vote was larger in areas that saw a huge rise in the
proportion of immigrants between 2004 and 2011.
• English national identity.
• Citizens taking back power from the elite and big merchant banks
• The 2008 financial crisis and Euro-zone crisis may have encouraged
the separation to protect the UK’s economy.

• Q 2) Is Switzerland a member of the European Union?

• Switzerland is not a member of the European Union. However, it
has signed a number of treaties with the European Union. E.U is
the largest trading partner of Switzerland.