International economic policy

The Directorate of European Affairs and International Economic Relations (Directorate 2) defines and represents international economic policy in multilateral organisations such as the European Union, the World Trade Organisation (WTO), the Organisation for Economic Cooperation and Development (OECD), the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Commission on International Trade Law (UNCITRAL).

The Directorate represents Luxembourg in the European forums in charge of the common trade policy, which deal in particular with anti-dumping, anti-subsidy and market access issues. Trade policy, an exclusive competence of the European Union, is conducted by the European Commission on behalf of the 27 Member States of the Union. The Commission represents the European Union in international forums devoted to trade policy, particularly at the World Trade Organisation, and negotiates trade agreements with one or more States or with global organisations based on mandates given to it by the Member States. By the provisions of the Treaty on the Functioning of the European Union (Article 207), the Commission regularly reports to the committees responsible for trade policy and the European Parliament on the progress of negotiations.

The Directorate represents Luxembourg in the committees which assist the Commission in these tasks. In this context, Luxembourg advocates for an open, balanced, and responsible trade policy, ensuring that markets are opened up in full compliance with the objectives of sustainable development and the fight against climate change. Hence, Luxembourg is committed to establishing genuine, fair trade within the single market, notably by promoting the implementation of due diligence for companies at the European level. A first step in this direction has been taken with the entry into force on 1 January 2021 of all provisions of Regulation (EU) 2017/821 laying down supply chain due diligence obligations for EU importers importing tin, tantalum and tungsten, their ores and gold from conflict or high-risk areas. Their implementation is coordinated by the Directorate 2. It also takes part in the implementation of Regulation (EU) 2019/452, which establishes a framework for screening foreign direct investment in the Union.

The Directorate ensures that Luxembourg companies' interests are safeguarded in the context of implementing the European Union's trade defence instruments, the latter of which allows, in particular, countering the effects of import dumping.

The Directorate coordinates the implementation of restrictive measures decided in international forums (UN, EU).

Within the framework of its attributions relating to investment protection, the Directorate monitors the investment protection agreements negotiated by the European Union. It is directly involved in negotiating bilateral agreements between the Belgian-Luxembourg Economic Union and third countries. In this context, it ensures the protection of Luxembourg investments abroad against real and proven discrimination while ensuring that these agreements do not undermine the right of States to legislate in the interest of their citizens.