Šefčovič's historic breakthrough: Europe is heading towards a trade agreement unlike any before

Brussels has set off in the opposite direction to the USA, which is introducing numerous restrictions within international trade. From the huge market of India through the South American Mercosur to the exotic Pacific – Europe wants to tear down tariffs within two years and open the doors to thousands of exporters. Will we gain exclusive access to raw materials, or sacrifice our own farmers and industry in the name of geopolitics? We asked experts what this breakthrough will bring to the Slovak economy.

Source: aktuality.sk

The European Union, under the leadership of European Commissioner Maroš Šefčovič, has launched a massive offensive aimed at redrawing the map of world trade. The year 2026 begins with an ambitious goal: to sign the historically largest agreement with the Mercosur countries (Brazil, Argentina, Paraguay, Uruguay), conclude a strategic partnership with India and launch groundbreaking cooperation with the United Arab Emirates, which is to open the doors to the entire Persian Gulf.

The list, however, does not end there. Brussels plans to seal agreements with the Philippines, Thailand and Malaysia in the near future, thereby covering most of the ASEAN member countries, and to establish a strategic partnership with 12 Pacific countries. Part of the changes is also the largest reform of the customs union since 1969.

But does the fall of barriers with these giants mean prosperity for Slovak companies, or will it expose them to crippling competition? And is it appropriate to conclude pacts with countries that maintain close relations with Russia?

In a survey we asked leading Slovak analysts and representatives of employers how these steps will affect our economy. The experts answered the following questions:

1. Do you consider such a policy of opening up to other countries beneficial for the European economy? If yes/no, then why?
2. Can some sectors or companies in the EU suffer from these free trade agreements? If yes, then which companies could be affected?
3. Among other things, Brussels wants a free trade agreement with India as well. Do you think it is appropriate to conclude a free trade agreement with a country that is close to the current leadership of Russia?
4. Should the EU possibly use the free trade negotiations to put pressure on China to distance itself more from Russia?

Andrej Lasz, Secretary General of the Association of Industrial Unions and Transport:

1. – 4. For industry, opening up further markets through free trade agreements is important, because it gives companies more options as to where to export and where to do business. Reducing barriers to export and business means that European producers, including Slovak companies, are not disadvantaged on foreign markets compared to domestic producers. The fewer barriers, the easier the market entry and the fairer the conditions for our exporters.

For Slovak companies, it is equally important that this spreads the export risk and they can diversify markets. They are not dependent on a single country or a single region and are less vulnerable when a problem or turbulence arises in a particular country or economy. We saw this also in the recent period, for example with developments in America.

For these agreements to be fully translated into practice, they should also be complemented by a second wave of support through economic diplomats directly in the given territory. They know both Slovak conditions and the local environment and can genuinely help companies open doors, connect contacts and manage the necessary administrative steps, such as registrations or required permits.

From our perspective, we therefore assess the European Commission's efforts to conclude free trade agreements positively. The Commissioner for Trade and Economic Security, Maroš Šefčovič, leads this agenda with a clear understanding of what exporters need.

Continuation of the article on aktuality.sk.

SOURCE: APZD