Agri-food exports reach record €235 billion, driven by FTAs

The European Union's extensive network of trade agreements has significantly contributed to the growth of its exports, as outlined in the latest Annual Report on Implementation and Enforcement of EU Trade Policy. The report highlights how these agreements have enabled EU companies to access new markets and reduce dependencies, particularly in a challenging geopolitical climate.

Trade Agreement Impact

In 2024, the EU's trade agreements with 76 preferential partners facilitated a notable increase in goods exports, which grew at twice the rate compared to non-FTA countries. Specifically, exports to these partners rose by 1.4%, compared to a 0.7% increase to non-FTA countries. A standout example is the EU's trade with Canada, which has surged by 51% since 2017, far outpacing the 20% growth in exports to other global markets.

Record Agri-Food Exports

The EU's agri-food sector also saw remarkable growth, with exports reaching a record EUR 235 billion in 2024, marking a 2.8% increase from the previous year. Exports to countries with preferential trade agreements accounted for EUR 138 billion of this total, reflecting a 3.6% increase, compared to a modest 1.6% rise with non-FTA partners. This growth underscores the importance of trade agreements in enhancing the EU's competitive edge in the global agri-food market.

Diversification and Stability

Beyond boosting exports, EU trade agreements have played a crucial role in diversifying markets and stabilising supply chains. For instance, increased trade with partners like Mexico, Norway, Switzerland, and the UK has offset declines in vehicle and machinery sales due to sanctions on Russia. Additionally, the EU has compensated for reduced Russian imports by increasing its imports of gas and copper from countries such as Algeria, Kazakhstan, Norway, and Chile.

Expanding Trade Network

The EU continues to expand its trade network, with new agreements with New Zealand and Kenya coming into force recently. Negotiations are ongoing with several countries, including Indonesia and India, further solidifying the EU's position as a key player in global trade.

The report underscores the EU's commitment to removing trade barriers and enhancing market access, with 44 barriers eliminated in 2024 alone. This proactive approach ensures the continued growth and resilience of EU exports in a dynamic global market.

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