G. Nausėda: EU should expand the geography of free trade agreements

The European Union (EU) should broaden the geography of free trade agreements and be more concerned about the continent's competitiveness, says Lithuanian President Gitanas Nausėda.

„It is very important to talk about the expansion of free trade regimes, to broaden the list of countries with which the EU has free trade agreements“, G. Nausėda told reporters at the European Council meeting in Belgium on Thursday.

The head of state called the agreement with Mercosur countries and India "very good solutions".

„Now we have to move on: Australia, the Philippines and other countries in that region should also be on that list. This expands the EU's opportunities, allowing it to diversify its export markets," he said.

„My country's experience shows that diversifying export markets is the best way to survive a downturn in economic activity. Lithuania's GDP (BNS) is now growing at 3%, which is quite a bit faster than in other countries," said Nausėda.

The Lithuanian president also explained that the EU's competitiveness is a matter of national security for the bloc, and that Europe is vulnerable because the continent is too dependent on the export of raw materials.

He also said he welcomed EU initiatives to introduce a level playing field for start-ups in the Community and hoped that the EU could benefit from Lithuania's successful experience in attracting financial technology companies, which were given more favourable regulation a few years ago.

„We can do the same at European level. We need less debate, more attitude and action, we have been debating for so long. I think it is time to take decisions, because time is precious, it is running out. It would be a great disappointment to lose the competitive battle," said Mr Nausėda.

On Wednesday, European Commission (EC) President Ursula von der Leyen said the EU must break down the economic barriers that prevent it from becoming a global giant, BNS reported.

Drawing attention to the importance of signing trade agreements, she said Europe should boost its competitiveness by "stimulating production" on the continent and "expanding its network of reliable partners".

A massive India-EU free trade agreement unveiled at the end of January will reduce or eliminate tariffs on almost 97% of European exports, saving up to €4 billion in customs duties each year.

The agreement between Mercosur – Brazil, Argentina, Uruguay and Paraguay – and the EU is set to create one of the world's largest free trade areas, eliminating tariffs on more than 90% of bilateral trade. However, the European Parliament voted in January to send the signed trade deal to the EU court for evaluation.

The EC leader said there would be more deals like this with Australia, Thailand, the Philippines and the United Arab Emirates (UAE).

The EU executive will also next month propose a "28th regime" initiative, also known as "EU inc.“, to help unify laws for businesses across the EU.