Press release - EU will have stronger powers in trade disputes

Published By Europa [English], Tue, Jan 19, 2021 12:20 PM


The strengthening of the so-called enforcement regulation allows the EU to protect its trade interests against partners acting illegally. From now on, the EU can introduce countermeasures when it obtains a favourable ruling from a dispute settlement panel of the World Trade Organisation (WTO) or in bilateral and regional agreements, when the other party fails to cooperate on the adjudication of the dispute.

Parliament succeeded in widening the scope of the regulation from disputes on goods to those involving services and certain intellectual property rights, including European trademarks, designs and geographical indications. MEPs stress that these account for a large and growing share of world trade and are covered by international trade agreements.

Parliament also ensured that the Commission would examine breaches that negatively affect workers or the environment in a trade context with the same attention as breaches of market access. Enforcement measures will apply in this field as soon as trade agreements permit.

Parliament also insisted on an instrument to allow the EU to deter and counteract other countries trying to force policy choices on the EU. The Commission agreed to present legislation no later than the end of 2021, and member states committed to take up the issue.

“This regulation makes it clear that international trade is founded on rules that everybody needs to respect. No one is exempt from these rules.

“Europe continues to stand by the multilateral system and WTO rules. Yet the international dispute settlement mechanism is still blocked. The EU now has another credible, efficient and ambitious tool at its disposal to bolster its trade policies and ensure its strategic autonomy. We now expect the Commission to swiftly introduce a measure to counteract and deter coercive attempts by third countries.”

As the WTO Appellate Body is no longer able to fulfil its function as last-instance dispute arbiter due to excess vacancies, the EU has been left without the means to enforce trade rules when cases are blocked in the WTO process. The new rules are part of efforts to have better EU tools to promote compliance and enforce EU trade agreements in an altered geopolitical context.

The full house backed the political agreement between Parliament and Council with 653 votes, with ten against and 30 abstentions.

After Parliament, Council will now formally adopt the revised regulation, which will then be published in the Official Journal and enter into force 20 days later.

Press release distributed by Media Pigeon on behalf of Europa, on Jan 19, 2021. For more information subscribe and follow


Eric Mamer

Chief Spokesperson
[email protected]
+32 2 299 40 73

Dana Spinant

Deputy Chief Spokesperson
[email protected]
+32 2 299 01 50

Elisaveta Dimitrova

Head of Unit
[email protected]
+32 2 295 88 38

Johannes Bahrke

Coordinating Spokesperson
[email protected]
+32 2 295 86 15

Vivian Loonela

Coordinating Spokesperson
[email protected]
+32 2 296 67 12