Benefits of EU Membership

The presence of the Single Market is of crucial importance when negotiating trade agreements with third countries. Arguably, Member States alone would not have the same success as EU trade policy does in signing trade agreements. Firstly, third countries are interested in accessing one of the world's largest export markets. Secondly, the EU has the critical mass to have a power position in trade negotiations, which single Member States would lack. This power allows the EU to set high standards with trade partners in strategic, non-economic areas, such as the protection of human rights and the environment (to be discussed further). The EU currently has 42 trade agreements in place with 73 third countries.

Trade agreements are central to the EU's economy. Countries with whom the EU has preferential agreements account for the largest share of EU exports and imports of goods (33% and 29% in 2018 respectively). Trade agreements are expected to have a positive, longterm impact on EU employment and growth. The opportunity to export more easily to larger markets increases the demand for goods and services of EU exporting firms, as well as others that belong to their supply chains within the Single Market, leading to more employment opportunities in the EU. It is estimated that 36 million jobs in 2017 were dependent on extra-EU exports.

Thanks to the Single Market, the EU can attract large amounts of foreign direct investment. Foreign companies operating in the EU bring positive spillovers, including employment creation, transfer of technology, new skills and know-how. Similarly, through trade agreements, EU firms have access to additional markets for investing and setting up operations abroad.