Common Trade Policy

A common trade policy is an agreed-upon set of rules and agreements that a group of countries, like members of the European Union, follow when buying and selling goods and services with each other and with other nations. It aims to facilitate smoother, fairer international trade by standardizing tariffs (taxes on imports), managing import restrictions, and promoting cooperation. This helps member countries benefit from better trade terms, reduce conflicts over trade practices, and strengthen their economic stability through unified policies.