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European Commission - External Trade - Trade Issues European Commission > EU and the world > External Trade

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Overview - DDA - EU Submissions - Legislation, reports and texts

EU & WTO

EU AND GLOBAL TRADE

SECTORAL ISSUES

BILATERAL TRADE RELATIONS

RESPECTING THE RULES

The EU and the WTO

The EU is one of the key players in the World Trade Organisation (WTO). This is because the EU has a common trade policy, where the European Commission negotiates on behalf of the Union's 27 Member States. As such, the EU is one of the driving forces behind the current round of multilateral trade negotiations in the WTO, the Doha Development Agenda (DDA). The DDA comprises both further market opening and additional rule making, underpinned by commitments to take measures necessary to integrate developing countries into the world trading system, notably by strengthening assistance to build capacity. The main objective of the New Round is to put development at the heart of the world trade system in a way that will help them combat poverty. In July 2004 the WTO Members adopted a Framework Agreement on the DDA that sets out the modalities for the further negotiations. The WTO The WTO was established in 1995 as a result of the Uruguay Round of multilateral trade negotiations (1986-1994). It is an international organization that sets global rules of trade between nations. The core of the WTO system, referred to as the multilateral trading system, are the WTO agreements which lay down the legal ground rules for international trade as well as the market-opening commitments taken up by its Members. These agreements are negotiated and signed by all Members of the WTO, and ratified in their parliaments. The WTO is composed of governments and political entities (such as the EU) and is a member-driven organisation with decisions mainly taken on a consensus basis. Membership implies a balance of rights and obligations. By October 2004, 149 countries had joined the WTO, with around 25 negotiating to sign up. A vast majority of Members are developing countries. The largest and most comprehensive entity is the European Union with its 27 Member States. Indeed, while the Member States co-ordinate their positions in Brussels and Geneva, the European Commission alone speaks for the EU at almost all WTO meetings. The WTO's top level decision-making body is the Ministerial Conference, which meets at least once every two years. The latest conferences were Seattle (1999), Doha (2001 - which launched the DDA), Cancun (2003) and Hong Kong (2005). Below this, the General Council meets several times a year in the Geneva headquarters. Both are composed of representatives of all Member States. At the next level, the Goods Council, Services Council and Intellectual Property Council as well as numerous specialised committees, working groups and working parties deal with the individual agreements and other areas such as the environment, development, membership applications and trade agreements. Finally, the WTO Secretariat located in Geneva supplies technical support for various councils and committees and the ministerial conferences, analyses world trade and explains WTO affairs to the public and media. See more info on the WTO. Currently, the WTO Members are engaged in a broad round of multilateral trade negotiations, called "the Doha Development Agenda" (DDA). In July 2004, Members agreed on a Framework Agreement that sets a clear agenda for the formulation of a new set of trade rules by the end of the DDA. EU Trade Policy and the WTO The EU has a common trade policy ("Common Commercial Policy"). In other words, where trade, including WTO matters, are concerned, the EU acts as one single actor, where the European Commission negotiates trade agreements and represents the European interests on behalf of the Union's 27 Member States. The legal basis for the EU’s trade policy is Article 133 of the European Community Treaty. On this basis, the Commission negotiates on behalf of the Member States, in consultation with a special committee, "the Article 133 Committee". The 133 Committee is composed of representatives from the 27 Member States and the European Commission. Its main function is to coordinate EU trade policy. The Committee meets on a weekly basis, usually on a Friday in Brussels at the headquarters of the Council of Ministers. It discusses the full range of trade policy issues affecting the Community, from the strategic issues surrounding the launch of rounds of trade negotiations at the WTO to specific difficulties with the export of individual products, and considers the trade aspects of wider Community policies in order to ensure consistency of policy. In this Committee, the Commission presents and secures endorsement of the Member States on all trade policy issues. The major formal decisions (for example agreement to launch or conclude negotiations) are then confirmed by the Council of Ministers. The European Community Treaty grants a more limited role to the European Parliament (EP) in terms of trade policy: according to the current treaty, the "assent" of the EP may be required for major treaty ratifications, when covering more than trade. However, the Commission favours greater Parliamentary involvement in Trade Policy and hence consults and informs the Parliament as systematically as possible. It supports a more formal extension of the Parliament’s powers over trade policy. The draft Constitutional Treaty of the EU provides for a major extension of the EP’s power over trade policy. The current WTO trade round, the Doha Development Agenda, provides a good example of how trade policy is coordinated in practice. The Commission sets and carries forward the priorities and aims of the EU as laid down in guidelines given by the Council of Ministers. Officials from the Commission's Directorate General for Trade, under the authority of the Commissioner are charged with actually conducting the negotiations, and speak on behalf of the EU as a whole. Coordination with Member States is assured at all times through the 133 Committee, while the Commission regularly informs the Parliament. At the end of the Round, the Council has to agree formally the outcome.

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News	and	information	includes
EU	submissions,	legislation,	reports,	texts
and	official	statements.	Sections	on
harnessing	globalisation,	sectoral	issues,	bilateral
trade	relations	and	respecting	the
r

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EUROPA - External Trade: The EU and the WTO 2008 October

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News and information includes EU submissions, legislation, reports, texts and official statements. Sections on harnessing globalisation, sectoral issues, bilateral trade relations and respecting the r

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