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What to make of the 2025 US tariff policy?
When Donald Trump was elected President of the United States (US) for the second time in 2024, the world knew that tariffs would again be the US trade policy instrument of choice. Two months into his second term, the President announced universal tariffs on aluminium and steel; a month later, on cars and car parts; and on 2 April 2025, reciprocal tariffs ranging from 11 % to 50 % on imports from countries running a trade in goods deficit with the US, and universal tariffs of 10 % on imports from ...
Understanding import tariffs under WTO law
In 1947, drawing on the lessons learnt from the global economic damage caused by trade protectionism and tariff wars prior to World War II, 23 countries, including the United States, initiated the General Agreement on Tariffs and Trade (GATT) as a platform for multilateral negotiations aimed at liberalising and boosting global trade. To this end, GATT members - and since 1995 the members of the then newly created World Trade Organization (WTO) - gradually reduced their import tariffs and tariff quotas ...
International Agreements in Progress - EU-Mercosur Partnership Agreement: Trade pillar
On 6 December 2024, the European Union (EU) and the four founding members of Mercosur – Argentina, Brazil, Paraguay and Uruguay – reached a political agreement on a free trade agreement that would form part of a wider Partnership Agreement including political dialogue and cooperation. The 2024 text of the trade pillar seeks to adjust an earlier political agreement of 28 June 2019 to EU demands for Mercosur to make stronger sustainability commitments, notably in respect to the Paris Agreement, and ...
International Agreements in Progress: Modernisation of the trade pillar of the EU-Chile Association Agreement
On 9 December 2022, 20 years after the signature of the EU-Chile Association Agreement in 2002, the EU and Chile reached an agreement in principle on a new EU-Chile Advanced Framework Agreement, which comprises modernised trade and political and cooperation pillars. Negotiations were launched in November 2017, based on a Council negotiating mandate, which was the first-ever to have been published prior to the start of negotiations. Although the trade pillar had operated smoothly and led to an expansion ...
Ratification scenarios for the EU Mercosur agreement
On 6 December 2024, European Commission President Ursula von der Leyen and the four founding members of Mercosur – Argentina, Brazil, Paraguay and Uruguay – reached a political agreement on the trade pillar of the EU-Mercosur association agreement. Additional negotiations had taken place since March 2023 to address various concerns sparked by an earlier 2019 agreement in principle. While the legal basis of the text, now referred to as the EU-Mercosur Partnership Agreement, is still unknown, several ...
Confirmation hearings of the Commissioners-designate: Maroš Šefčovič – Trade and Economic Security; Interinstitutional Relations and Transparency
Maroš Šefčovič has served as the European Commission's Executive Vice-President for the European Green Deal, Interinstitutional Relations and Foresight since August 2023. This portfolio included overseeing the EU's relations with the United Kingdom, Andorra, Iceland, Monaco, Norway, Liechtenstein, San Marino and Switzerland. A long-serving member of the European Commission, from 2019 to 2023, Šefčovič was the Commission's Vice-President for Interinstitutional Relations and Foresight. From 2014 to ...
WTO agreement on electronic commerce
On 26 July 2024, after 5 years of negotiations, 82 members of the World Trade Organization (WTO) reached an agreement on the first-ever global rules on electronic commerce. The plurilateral talks were led by the co conveners Australia, Japan and Singapore, under a WTO joint statement initiative (JSI) that had attracted 91 participants, accounting for more than 90 % of global trade. While the deal is a sign that plurilateral talks have the potential to inject fresh momentum into the WTO's negotiating ...
EU-Mongolia relations: Possible critical raw materials partnership
Mongolia is a geographically remote and resource-rich country with a peculiar location in northeast Asia. An 'oasis of democracy', it is sandwiched between its two expansionist authoritarian neighbours, China and Russia. This has required it to walk a delicate geopolitical tightrope of non alignment and a 'third neighbour' foreign policy to preserve its sovereignty and independence. During the past 35 years of bilateral diplomatic relations Mongolia has not been particularly high on the EU's foreign ...
Screening of foreign investments in the Union
On 24 January 2024, the European Commission published a legislative proposal under the ordinary legislative procedure for a new regulation on the screening of foreign investments in the Union. It seeks to revise and repeal Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the Union. Ϸվ's committee on international trade is expected to be in the lead to draft a report with contributing opinions from other committees; once adopted by the ...
International trade dispute settlement: World Trade Organisation Appellate Body crisis and the multi-party interim appeal arbitration arrangement
The international trade dispute settlement system has seen sweeping changes in its working arrangements over time, having shifted from a single-tiered system established in 1947 under the General Agreement on Tariffs and Trade towards a two-tiered system under the World Trade Organization (WTO) in 1995. Both systems have generated a much higher dispute settlement output than other state-to-state dispute settlement systems, including the International Court of Justice. The United States' blockage ...