EU Trade Agreements: To Mix or Not to Mix, That Is the Question

Abstract

The European Union (EU) can only act internationally on competences that have been transferred to it by its Member States. Trade agreements negotiated by the EU that include provisions outside its exclusive competences should be concluded as ‘mixed’. Mixed trade agreements must be ratified following not only the procedures set out in the EU treaties, but also the national ratification procedures of the Member States. As a result, national or even regional parliaments may block trade deals agreed between the EU and its trading partners after years of negotiations. Should the EU then avoid negotiating mixed trade agreements? We argue that the answer to this question depends crucially on the objectives of the EU when negotiating with its trading partners. If the EU is mostly driven by market-access motives, it should restrict the agreement to policy areas under its exclusive competence, thus insulating the trade deal from the legal and political risks of mixity. When instead its motives are mostly political, mixity is a ‘necessary evil’ to achieve non-trade objectives. Trade Agreements, European Unity, Competences, Ratification Procedures

Potential of EU Draft Directive on Corporate Sustainability Due Diligence to Contribute to a Coherent Framework of Corporate Accountability for Human Rights Violations

“…In such cases, the EU has 'implied exclusive external competences'. 8 Shared competence, on the other hand, means that when the Treaties confer on the EU a competence shared with the Member States in a specific area, the EU and the Member States may legislate and adopt legally binding acts in that area. The Member States exercise their competence to the extent that the EU has not exercised its competence or has decided to cease exercising its competence (Article 2(2) of the TFEU).…”

Non-trade Objectives and EU External Policy: Survey Responses on RESPECT Research Findings

“…RESPECT research (Conconi, Herghelegiu and Puccio, 2021) suggests that so-called mixed agreements, that is, agreements that include regulatory areas in which the Member States retain competences, may be appropriate to achieve non-trade objectives. Experience reveals that mixed trade negotiations with large countries are difficult to conclude successfully.…”

An analysis of the trade policy review of the European Union

“…would likely have required ratification at Member State level. For a detailed discussion regarding mixed agreements see Puccio and Conconi (2021). Furthermore, as the new generation FTAs encompass a broader range of issues, including areas such as labour rights and environmental protection, trade agreements are difficult to conclude if the EU and third country do not share the same 'values' (Mckenzie & Meissner, 2017).…”

“…However, such a proposal would likely have required ratification at Member State level. For a detailed discussion regarding mixed agreements see Puccio and Conconi (2021).…”