The Common Commercial Policy began with the 1944 Benelux Union and 1957 Treaty of Rome establishing the European Economic Community (EEC) or Common Market among Belgium, France, Italy, Luxembourg, Netherlands, and West Germany. The EEC aimed to facilitate greater investment and trade among members through the free movement of goods, services, people, and capital. It established common agricultural, trade, and transport policies and allowed for future joint policies. Through various treaties, the EEC evolved into the European Union with its three pillars of economic cooperation, foreign policy, and judicial matters. The EU now seeks to maintain a stable and competitive euro zone economy through its economic and trade policies.

1. Common Commercial Policy
Presented by: Ayesha Qadeer

2. Historical Background
• First stage was Benelux Union, 1944
• Custom trade association between Belgium,
Netherland and Luxembourg
• Six states called inner six i.e. Belgium, France,
Italy, Luxembourg, Netherland, West Germany
were founding members
• 1957 Treaty of Rome
• Established “European Economic Community”
• European Economic Committee is also known as
“Common Market”

3. • 12 year transnational period up to 1969 was
introduced
• Upto 1970, member states coordinated their
trade relations with non-community countries

4. Aims and objectives
• Establishment of Common Market.
• facilitating members for greater investments among
themselves
• Strengthen bargaining power outside the states
• Free movement of Goods, services, people and capital
• To create closer political unification of Europe
• To initiate closer economic alignment for signatory
countries.
• It was also accompanied by common trade policy.
• Common external tariff for trade were also introduced.
• the EEC aimed to reduce tensions in the aftermath of World
War II.

5. Joint Policies
• The treaty established certain policies from
the start as joint policies among the member
countries, including:
• Common agricultural policy (Articles 38 to 47)
• Common trade policy (Articles 110 to 116)
• Transport policy (Articles 74 to 84).

6. Joint Policies
• It allowed for the creation of other joint policies,
should the need arise. After 1972, the EEC
established joint action in the fields
of environmental, regional, social and industrial
policy.
• These policies were accompanied by the creation
of:
– a European Social Fund, to improve job opportunities
for workers and to raise their standard of living
– a European Investment Bank (EIB), to facilitate the
EEC’s economic expansion by creating investment
funding.

7. Further Development
• On July 1, 1967, the governing bodies of the EEC, ECSC, and
Euratom were merged. Through the Merger Treaty, which
entered into force in 1987.
• EEC members committed themselves to remove all
remaining barriers to a common market by 1992
• The Maastricht Treaty (formally known as the Treaty on
European Union; 1991), which went into force on
November 1, 1993, the European Economic Community
was renamed the European Community
• It was implanted into European Union as first of 3 pillars
• Second was common foreign and security policy
• Third was police and judicial cooperation in criminal
matters

8. Further Development
• The treaty also provided the foundation for an
economic and monetary union, which included
the creation of a single currency, the euro..
• The Lisbon treaty was signed and later ratified in
2009
• Under the amendments of the Lisbon Treaty:
the European Community—which had
provided the economic framework upon
which the EU was built—disappeared, and its
powers and structure were incorporated into
the EU

9. Current Economic Policy
• As we all know, European Union started as
Economic Community so economic policy is still
an important area in the EU.
• The European Union seeks to engage in
cooperation to protect the environment
• It seeks to promote the protection of natural
assets and stop climate change.
• The Union wishes to keep the EU economy stable
and competitive compared to the other countries
in the world.

10. Current Economic Policy
• Efforts are made to prevent internal disagreements.
• The objective of the European Union’s economic policy
is to create a stable and prosperous euro zone.
• A common currency improves companies’
competitiveness and increases economic stability.
• The European Central Bank regulates the interest rates
and is able to control inflation and exchange rates
• The European Union pays members states various
subsidies, for example for development projects.
• The subsidies are designed to improve the local
standard of living and distribute wealth to the poorest
areas in Europe.

11. Trade Policy
• There are no customs duties between EU member
states.
• This is one way in which the EU tries to eliminate
poverty.
• The European Union holds an important position in the
World Trade Organization (WTO).
• Trade relations are maintained, in particular, with the
Mediterranean countries, Russia, the United States and
China.
• Member states may also sign bilateral trade
agreements with other countries as long as they are
not in conflict with the EU laws and agreements.

12. Thank You