The EU's trade policy consists partly of the rules for trade within the EU - the internal market - and partly of joint action taken by the EU in creating global and regional rules for imports and exports, for example in the World Trade Organisation (WTO).
In 2008, the other EU countries accounted for 60 per cent of Sweden's exports and 70 per cent of Sweden's imports. The EU internal market is thus Sweden's most important market, and its significance was further increased with the EU enlargement of 1 May 2004.
The EU is Sweden's most important market both in terms of imports and exports. The enlargement of 1 May 2004 that included 10 new countries further increased the significance of the EU. In 2008, the EU accounted for 70 per cent (country of dispatch) of Sweden's imports and 60 per cent (country of destination) of Sweden's exports.
The EU plays an important role in the development of international trade policy. One of the primary advantages of membership of the EU is that today, Sweden can actively influence the common trade policy. The strength that a common action provides is in the interest of the EU, Sweden and the individual Member States.
However, membership of the EU also entails certain costs in the form of a more restrictive trade policy towards some countries outside the Community. This is primarily noticeable in trade in textiles and shoes, and the opportunities for imposing protective measures against dumped, or underpriced, imports - measures that were not applied as strictly by Sweden before becoming a member.
Common trade policy in the EU
In the area of trade policy, membership of the EU means that Sweden is included in a common trade policy. It is the Commission, after consultation with the Member States, that represents the EU both in the WTO and in other trade policy contexts. Consultation takes place in the Trade Policy Committee, which meets once a week.
Background
Sweden was one of the initiators behind the creation of the European Free Trade Association (ETFA), which was founded in 1960. The aim of EFTA was partly to achieve a reciprocal free trade area for the European countries that did not want, or were unable, to join the EC, and partly to create a platform for future discussions with the EC. In 1995, Sweden left EFTA to become a member of the EC/EU.
Membership of the EU meant that Sweden became integrated into the EU internal market and at the same time part of the Union's common trade policy regarding countries outside the EU.
