EU Policy

Published on 09/10/2026 – 15:51 GMT+2•Updated
16:54

EU Trade Commissioner Maroš Šefčovič announced a deal with China on Friday to curb imports of Chinese hybrid vehicles into the EU and facilitate access to rare earths.

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While the understanding signals a preference for a diplomatic resolution to the growing trade imbalance, European leaders are pushing for stronger measures to level the playing field. They are expected to review the details at a summit in Brussels next week.

The EU has also floated retaliatory measures if the outcome falls short of expectations.

Šefčovič travelled to Beijing on Wednesday for two days of intensive talks with his Chinese counterpart, Wang Wentao, in a bid to rebalance EU-China trade relations.

The EU is facing a record trade deficit with China of €1 billion a day, as a surge in low-cost Chinese imports threatens entire sectors of European industry.

“We have reached a shared understanding to moderate China’s export of hybrids and plug-in hybrids to the European Union,” Šefčovič said. “This opens up the prospect of cutting China’s exports by more than half.”

The commissioner said the deal would also improve access to the Chinese market for a range of EU products, from “car parts to olive oil and footwear”, representing almost €4 billion in current export value. It should generate at least €225 million in duty savings, he added.

Market access has been at the heart of EU-China discussions since negotiations began last June. Beijing has been reluctant to relinquish access to the EU’s 450-million-consumer market, which provides an outlet for its excess production.

Meanwhile, Brussels has proposed several legislative measures aimed at restricting Chinese companies’ access to the European market, while pressing Beijing to open up its own market to EU businesses.

Šefčovič also said China had agreed to facilitate exports of rare earths, which are essential to Europe’s green technology, defence and automotive industries.

“We have reached a shared understanding to further facilitate China’s export licensing for rare earths and permanent magnets,” he said.

The EU has accused China of “weaponising” its dependence on Chinese rare earths after Beijing restricted exports in 2025 amid a trade war with the US.

Šefčovič described the agreement as the conclusion of a “first phase of negotiations”.

The deal comes ahead of a meeting of EU leaders in Brussels next week, with expectations running high for concrete results from negotiations led by the European Commission on their behalf since last June.

A consensus on China has been emerging across the EU this week.

All EU countries now run trade deficits with China. On Monday, Germany and France urged the European Commission to take strong action against unfair Chinese trade practices that cause severe market distortions.

In a joint document, Paris and Berlin called for measures that could include “an immediate cut-off from the internal market if needed”.

On Wednesday, MEPs overwhelmingly adopted a resolution calling for resolute measures against Beijing.

Meanwhile, 44 EU industries, including chemicals, machinery, metals, solar, glass and cement, issued a joint statement on Friday warning that “Europe cannot maintain and grow its industrial base, quality jobs, and attract investment without the ability to respond effectively to unfair trade practices and distortions”.

Published on
07/10/2026 – 17:07 GMT+2

The European Parliament has called for tougher action against China’s economic coercion and support for Russia, warning that relations with Beijing have reached a “critical point”.

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MEPs backed the resolution by a landslide on Wednesday, urging the EU to consider deploying its powerful Anti-Coercion Instrument if Beijing weaponises Europe’s dependence on critical raw materials.

The vote came as EU Trade Chief Maroš Šefčovič was flying to Beijing for crunch talks aimed at rebalancing the increasingly strained trade relationship.

October is shaping up to be a crucial month for EU-China relations. EU leaders, whose countries now all run trade deficits with China, are pressing the European Commission to deliver concrete results from negotiations with Beijing.

Tensions also extend well beyond trade. The EU has become increasingly alarmed by Beijing’s close relationship with Moscow and its role in sustaining Russia’s full-scale invasion of Ukraine.

“The relations have now reached a critical point, mostly due to China’s unfair economic practices such as dumping and spying and its position on Russia’s war of aggression against Ukraine,” the resolution adopted by EU lawmakers reads.

The text was backed by 454 MEPs, with 86 voting against and 110 abstaining.

Lawmakers described China’s role in the Ukraine war as that of “a decisive enabler”, pointing to “Chinese diplomatic backing and material assistance that sustains the Russian military-industrial complex”.

Pressure to use anti-coercion tool

They also call on EU countries and the Commission to “urgently” take action on “the weaponisation of critical dependencies by China.”

Europe felt the vulnerability of those dependencies in 2025, when China restricted exports of rare earths, which are vital to the EU’s automotive, defence and clean-tech industries, amid its escalating trade war with the United States.

The MEPs said the EU should consider using the Anti-Coercion Instrument (ACI) when China instrumentalises such EU dependencies.

The ACI is an EU mechanism that allows the bloc to adopt radical measures – up to restrictions on licences and intellectual property rights – against a third country that uses economic coercion against the EU.

China’s dominance of the production and processing of strategic raw materials has become a major sticking point in trade negotiations, giving Beijing considerable leverage as Brussels seeks to curb its dependence on Chinese imports.

A Commission proposal pushing companies to diversify their suppliers in strategic sectors is in the making and should be presented by the end of the year.

The resolution comes two days after Germany and France harden their stancetowards Beijing, calling for a new trade tool that could allow the Commission to impose measures leading to “an immediate cut-off from the internal market if needed”.

Published on
28/09/2026 – 12:25 GMT+2

Brussels and Beijing are fighting over quotas that would limit Chinese imports to the EU market, as the Europeans seek to rebalance their trade relationship with China, Euronews has learned.

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Both started intense negotiations last June over EU and Chinese access to each other’s markets, with an October deadline set by the European Commission to reach “tanglible” results. However, China is pushing hard against the EU’s attempts to protect its market.

According to one person familiar with the matter, the Commission, which is negotiating on behalf of the 27 EU countries on trade issues, wants China to accept quotas on specific products.

However, it is unclear how China would accept and respect such quotas.

Trade defence mechanisms delayed

According to media reports, so-called “voluntary export restrictions” have been pushed by the Commission for electric vehicles. But Beijing’s trade minister rejected them in a statement earlier this month.

If China accepted such a system of restrictions, it would mean that it voluntarily limits its exports to the EU on the basis of a deal negotiated with the Commission, sparing the EU from adopting defensive trade measures that might be seen as an aggressive move by China.

Technical negotiations are in their final stretch as the October deadline is approaching.

Director General of DG Trade at the Commission, Ditte Juul Jørgensen, travelled to China last week for two days of heated discussions, and EU Trade Commissioner Maroš Šefčovič is due to be in Beijing on 8 and 9 October for political talks, ahead of a key meeting of EU leaders in Brussels.

To give negotiations a chance, the Commission has delayed the adoption of trade defence mechanisms aiming to protect the EU chemical industry, according to another person familiar with the matter. The chemical industry is one of the sectors most threatened by Chinese competition in the EU.

However, the threat also targets other sectors, making the rebalancing of the trade relationship “existential” for the Europeans, EU Industry and Trade Commissioner Stéphane Séjourné told Euronews last week.

According to the Commission, the EU already lost 250,000 industrial jobs last year, particularly concentrated in energy-intensive sectors and automotive supply chains.

Published on 22/09/2026 – 11:54 GMT+2•Updated
12:00

The European Commission struck a trade agreement with the Philippines on Tuesday, stepping up its diversification strategy across the Indo-Pacific region.

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The deal comes more than a year after the US introduced sweeping new tariffs on many of its trading partners, prompting retaliatory measures and adding to global trade tensions.

Since then, the EU has been seeking new trade ties, recently concluding major deals with India, Australia and Indonesia.

“This agreement sends a clear signal that the EU is reinforcing its engagement with the Indo-Pacific,” EU Trade Commissioner Maroš Šefčovič said on Tuesday.

“Half of global consumers are covered by European Free trade agreements. Nobody else has this advantage.”

“Squeeze on supply chains”

The new agreement will give EU businesses access to a market of 113 million people, and remove over 94% of customs duties. It will cover more than 97% of bilateral trade, including EU exports of machinery, medicines and medical appliances, as well as agri-products such as meat, pork, poultry and spirits.

Exports from the Philippines are dominated by semiconductors, integrated circuits and industrial machinery.

The deal should also facilitate EU investment in raw materials in the Philippines, as the EU seeks to move away from China, which holds a monopoly on key raw materials.

Bilateral trade in goods between the EU and the Philippines was €17.6 billion in 2025, while trade in services reached €10.3 billion in 2024. The stock of EU foreign direct investment in the Philippines amounted to €15.4 billion.

Šefčovič also said there was a “mutual interest” with countries in the wider Indo-Pacific area “to address the current global turbulence” and “the squeeze on the supply chains.”

Brussels says China has weaponised critical products for EU industry such as chips and rare earths in 2025, jeopardising whole sectors such as the car industry.

The Commissioner added that trade deals with Thailand and Malaysia were next on the EU agenda, with an agreement with Bangkok foreseen by the end of the year.

The European Union and Canada last week unveiled plans for an ambitious new partnership that could eventually give Canada a form of associate EU membership. Yet their existing landmark agreement remains unfinished business.

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The Comprehensive Economic and Trade Agreement (CETA) was signed in 2016 and has applied provisionally since 2017, removing almost all tariffs and helping drive a sharp increase in transatlantic trade. But ten EU countries – Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland and Slovenia – have still not ratified it.

The contrast was underlined last week when European Commission President Ursula von der Leyen invited Canada to deepen its economic and security ties with the bloc.

“We will move from CETA to an Alliance for the Future to create a common prosperity and economic security space,” von der Leyen told MEPs and Canadian Prime Minister Mark Carney in Strasbourg.

Despite not being fully ratified, the deal provisionally entered into force in 2017.

But what is CETA and why is its ratification blocked?

What is in the EU-Canada trade agreement?

CETA was concluded in 2016 after seven years of negotiations and often heated debate across EU member states.

The agreement removed tariffs on 98% of goods traded between the EU and Canada, covering products ranging from wine and cars to chemicals. It also opened up more of the Canadian market to European companies in sectors including financial services, telecommunications and transport.

The Commission says the agreement boosted EU-Canada bilateral trade in goods and services by 80% in 2025 compared to 2016, when CETA was signed, reaching €130 billion, up from €72.1 billion recorded nine years before. The EU has a trade surplus of €16 billion in goods and €9,7 billion in services.

For agricultural products, it allows 143 European products with the status of geographical indications (GIs) to be sold in Canada, protecting them from imitation. The deal also includes quotas for EU cheese exported to Canada (32,000 tonnes per year), Canadian beef (50,000 tonnes) and pork (80,000 tonnes) to the EU. It also bans imports of Canadian products containing prohibited substances, such as growth hormones.

Only 3% of the beef quotas were filled between 2021 and 2023, due to the EU’s Sanitary and Phytosanitary (SPS) rules, which make it costly for Canadian beef producers to export, according to a Commission assessment.

Why is the ratification blocked?

Concerns over food safety and environmental standards are among the reasons CETA has faced resistance in EU countries. European farmers have also raised concerns about unfair competition from Canadian products, arguing that some of Canada’s production rules are less stringent than those in the EU.

CETA opponents also criticised the deal’s Investor-State Dispute Settlement provisions. Those let companies bring a claim against the state before an arbitration tribunal if its government adopts a law that discriminates against a company and harms its profits. The tribunals were ad hoc, composed of private arbitrators.

However, controversies around a system that might favour business lobbies led the Commission to include safeguards and replace the Investor-State Dispute Settlement mechanism with an Investment Court System with permanent judges and an appeal mechanism. The EU and Canada have also introduced provisions to safeguard their right to regulate policies aiming to protect public health and safety, the environment or social protection. But opponents say that the safeguards won’t be enough to protect such policies. It is planned that the courts will only come into force once the deal is ratified by all 27 member states.

When will the EU fully ratify the deal?

There is no clear timetable, not least because the ratification process is effectively blocked in several member states.

For instance, in France, the Senate rejected the deal in 2024, and the government then blocked its submission to the National Assembly, fearing a full rejection.

In Poland, the ratification process is also frozen, as well as in Italy, where it has been blocked since the government rejected it in 2018, considering Italian GIs were not given enough protection. Italian MEP Carlo Fidanza, from the Brothers of Italy party, recently said that there were few chances the deal would be submitted to parliament before the December 2027 elections.

Published on
17/09/2026 – 17:24 GMT+2

The European Commission stepped up pressure on China on Thursday, calling for tangible results with Beijing following a one-hour video call between Trade Commissioner Maroš Šefčovič and his Chinese counterpart, Wang Wentao.

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The EU executive hopes to secure commitments from Beijing to rebalance the trade relationship, as the bloc’s trade deficit with China has been widening by €1 billion a day.

However, Beijing wants to secure access to the EU’s market of 450 million consumers, resisting calls from the Europeans to reduce its exports.

“While genuine engagement remains a priority, it is equally important that first concrete outcomes are delivered at the second session of the Trade and Investment Council in Beijing in October, which the Commissioner will co-chair – a signal that we are moving from rhetoric to results,” the Commission said in a statement after the call.

“That outcome needs to be credible,” the statement added.

The EU-China Trade and Investment Council was launched in June as a dialogue between the two sides, with the Commission setting October as a deadline to reach tangible results.

During the call on Thursday, Šefčovič and Wentao discussed market access on both sides and Chinese export controls on rare earths.

China has a near-monopoly over the production and processing of these strategic materials, which are essential to the EU’s green technology, defence and automotive industries, giving Beijing significant leverage in the negotiations.

The EU is seeking assurances that China will not halt its exports of rare earths again, a year after blocking them amid a trade war with the US. Securing the necessary export licences is essential for EU businesses.

EU leaders expect results

The coming weeks will be crucial for the negotiations, with EU officials expected to make another trip to China for technical discussions before Šefčovič himself travels to Beijing on 8–9 October.

In her State of the Union address to MEPs on Wednesday, European Commission President Ursula von der Leyen also pushed for concrete results in the EU-China talks.

“Words are good. But deeds are better,” she said, making clear that the EU was ready to use all its trade defence instruments to rebalance the trade relationship.

China is also expected to feature prominently on the agenda when EU leaders meet in October. They have tasked the Commission with securing tangible results from its dialogue with Beijing.

In an interview with Euronews, Šefčovič also made clear that, without a “deliverable” to present to EU leaders,“the political interest would be to look for the solution through other instruments.”

The EU has several trade defence instruments such as anti-dumping duties or tariffs against unfair subsidies.

A diversification tool is also in the pipeline, aimed at reducing EU firms’ reliance on Chinese critical minerals for strategic technologies by helping them diversify their sources of supply.

Such a move would come as relations between Beijing and Brussels remain strained, following the Commission’s introduction of several legislative proposals aimed at protecting the EU market. One of them would introduce a European preference for products made in Europe, prompting China to threaten retaliatory measures.

Last summer, China also urged its companies to stop cooperating with the Commission in antitrust investigations, after the EU executive opened a probe in May into e-commerce giant JD.com over concerns about subsidies.

European Commission President Ursula von der Leyen announced on Wednesday that Canada has been invited to become the first “associate member” of the EU.

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She announced the move during her 2026 State of the Union address in Strasbourg, to an audience including not only MEPs but also Canadian Prime Minister Mark Carney, who attended her speech in the midst of a trade war with the US.

Since late August, the Canadians have been pushing hard for the Europeans to build a closer relationship with them, though full EU membership is not an option as Canada is not a European state.

During her speech before the MEPs on Wednesday, von der Leyen invited the country to become “the first associate member of the European Union”.

“We share one ocean, one set of values, one way of seeing the world. And we will now build our shared future as well,” she added.

A new status

Expectations had been high over the last week after Carney spoke about building a “unique alliance” with the EU.

Canada is not a European state geographically, but it shares the same values as the EU – human rights, democracy, rule of law – which are necessary criteria for becoming a member state.

Several options already exist for countries that don’t have full membership. Norway, for instance, is part of the single market, the EU’s borderless area of free movement of goods, persons, services and capital. Oslo and Brussels also collaborate on joint defence initiatives.

Switzerland also has access to the single market through several agreements – and in the years since Brexit, the United Kingdom and the EU have secured the largest and broadest trade and cooperation deal in the bloc’s history, coverering a wide range of sectors. The UK is now taking part in several EU programmes such as Horizon Europe, the EU’s research and innovation programme.

Euronews has learned that Ottawa is already in talks with Brussels to join the Erasmus+ exchange program, Horizon Europe research grants, and mutual recognition of workers’ qualifications.

However, “associate member” is a completely new status, and key questions have not yet been answered – chief among them, whether Canada will have voting rights in EU institutions. Despite their regulatory harmonisation with the bloc, Norway and Switzerland have no say on EU legislation.

A new alliance with Ottawa

German Chancellor Friedrich Merz floated the idea last May of an “associate membership” for Ukraine, which is urgently seeking to enter the EU. In a letter sent to EU leaders, he argued that this status would grant Ukraine access to the decision-making bodies – the European Council, the European Commission and the European Parliament – without voting rights or a dedicated portfolio.

It would also allow the country to tap into certain EU-funded programmes on a “step-by-step” basis.

It’s hard to see Canada in the same category as Ukraine, a country which is at war, but von der Leyen’s announcement on Wednesday nonetheless sent a strong political signal in a volatile world where historical alliances are shifting.

“Europe and Canada believe in democracy. That power does not belong to the strongest, the richest, or the loudest – but to all of us,” she said. “Democracies have the freedom to choose with whom to work.”

She also called for a new alliance with Ottawa, which could include tech, defence, Arctic joint projects, but also energy, critical minerals and artificial intelligence.

“We will move from CETA to an Alliance for the Future to create a common prosperity and economic security space,” she said, referring to the 2016 EU-Canada trade agreement that removed tariff barriers between both sides and has been provisionally applied.

The economic and security cooperation between both partners is set to be pushed further during a summit in Montreal in October.

Published on 15/09/2026 – 17:02 GMT+2•Updated
17:53

In a document sent to EU legislators and seen by Euronews, the US has threatened the EU with retaliation if it does not scrap European preference provisions in its multiannual budget.

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EU member states are currently discussing the EU’s long-term budget (2028-2034), which includes a €402 billion fund dedicated to competitiveness that favours the production of key goods within the EU, including in defence.

The measure would potentially exclude foreign firms from EU financing to protect strategic and economic security interests.

“With further expansion of European preference measures in EU defence funds, the United States will review all potential response measures, including a rollback of the existing ‘Buy American’ blanket waivers and exceptions associated with the RDPAs [Reciprocal Defence Procurement Agreements] with 19 of the 27 member states,” the non-paper reads.

The Buy American Act requires the US government, including the US Department of Defence, to give preference to products manufactured in the US for certain public procurements, with some exceptions being granted in defence for some EU countries.

The non-paper adds that the European preference would impede “partnership” and “collaboration” with the US, and calls on the EU to introduce a “made with Europe” system – or, in the specific area of defence, a “made in NATO”.

Trade tensions

The US’s latest warning comes after the creation of the Security Action for Europe programme in 2025, already sparked trade tensions between Washington and Brussels over a European preference for joint purchases of arms and military equipment.

The “made in Europe” approach is also pushed by France and the European Commission in several pieces of legislation over the last year designed to boost EU industry, with foreign countries lobbying hard against being excluded from the EU market.

The US and EU have been at loggerheads over trade since the start of the second Trump administration, amid repeated tariff threats and disputes over environmental and digital regulations which the White House deems to be non-tariff barriers.

The Commission hoped that the conclusion of a trade agreement in July 2025 would be a step towards a more stable transatlantic relationship.

Published on
14/09/2026 – 16:42 GMT+2

EU Trade Commissioner Maroš Šefčovič will visit Manila next week to finalise a trade agreement with the Philippines, the European Commission confirmed to Euronews on Monday.

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The agreement is nearing conclusion as Brussels has increasingly looked to the Asia-Pacific over the past year to diversify its trade ties.

Since the return to power of US President Donald Trump, the global trade order has been shifting, with the EU seeking new markets for its exports.

The latest round of EU-Philippines trade talks took place in May, with access to public procurement emerging as the final sticking point. An agreement would mark a shift for the Philippines, which has so far kept public contracts closed to foreign bidders.

The Commission told MEPs earlier this month that the rest of the agreement was ready. The aim is to lift trade barriers between both partners in most sectors.

An official from the EU executive also told MEPs that sanitary and phytosanitary rules for food products were “ambitious”, alongside automotive standards that would improve EU manufacturers’ access to the Philippine market. The official added that the EU and the Philippines were “complementary” in both industrial goods and agriculture.

The deal is an important one for Manila, which has been hit by US tariffs in 2025 and by the war in Iran, which heavily impacted energy prices in the country.

However, the Philippines also reached “upper-middle-income country” status in August, granted by the World Bank, which makes it a promising market — “One of the most dynamic economies in the East Asia Pacific region since 2010,” the World Bank said.

Bilateral trade in goods between the EU and the Philippines amounted to €16.8 billion in 2024. That same year, the EU was the Philippines’ fourth-largest trading partner, accounting for 7% of the country’s total trade in goods, while the Philippines was the EU’s 39th-largest trading partner, accounting for 0.3% of the EU’s total trade in goods.

After the Philippines, the Commission aims to conclude talks with Thailand, making 2026 a strong year for EU trade deals across Asia and the Pacific, with agreements already reached with Australia and India.

Published on 07/03/2026 – 8:00 GMT+1•Updated
11/09/2026 – 22:42 GMT+2

France will push back against a European Commission plan to fast-track ratification of trade agreements by circulating only English-language versions during talks with EU governments and lawmakers, skipping translation into the bloc’s 24 official languages, according to several sources.

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The slow ratification of the contentious EU–Mercosur trade deal has frustrated the Commission, which wants to accelerate negotiations and bring deals into force more quickly as it seeks new markets amid rising geopolitical tensions.

Translating the agreements into every official EU language can take months due to the legal scrubbing required before the ratification process begins.

The EU executive has confirmed to Euronews that trade chief Maroš Šefčovič told EU trade ministers in February that the trade deal with India concluded on 27 January could serve as a test case for using English as the main language during ratification.

“We lost almost €300 billion by not having the Mercosur agreement in place since 2021, if it comes to the GDP, and more than €200 billion in export opportunities,” Šefčovič told journalists after meeting ministers on 20 February, adding that once negotiations end it can take up to 2.5 years before businesses can operate in partner countries.

“In today’s world, we cannot simply lose the time,” he said.

Šefčovič said the Commission would ensure the agreements are translated into all 24 official EU languages once published in the Official Journal, i.e. after ratification. He added the proposal was backed by at least seven member states at the meeting, though not all countries had time to speak.

French sources who spoke to Euronews were insistent that Paris would vigorously oppose the move to English-only agreements if necessary.

“As a matter of principle, we defend the use of all the languages of the Union, and in particular French, which is one of the EU’s working languages,” one official told Euronews.

‘Transparency, precision and understanding’

Language policy in the bloc’s institutions remains politically sensitive for countries such as France, whose language has declined sharply over the past decades as English massively dominates daily work in the European Union institutions – despite French, German and English being the three official working languages.

“Switching entirely to English raises a legal and democratic issue, and the Commission is well aware of it,” another French official told Euronews.

On its website, the European Commission says linguistic diversity is essential and that the EU promotes multilingualism in its institutional work.

The bloc once even had a commissioner dedicated to multilingualism, though the portfolio was gradually merged with others and eventually disappeared.

“I have the impression that in some cases the Commission seizes the opportunity to push the idea that English has a superior status, and that the other official languages are translation languages that can come later,” Michele Gazzola, expert in language policy, said.

He added that relying only on English during ratification could pose problems for members of the European Parliament, and even more so if national parliaments are involved.

“It’s a matter of transparency, precision and understanding.”