The aim of this thesis is to investigate and identify the issues of international trade on the EU. International trade is a tool used by the European Union to boost their economy, so it is a source of increasing productivity gains, knowledge and capital sharing between countries. The European Union first trade between themselves before trading with external market. So, the total EU trade is the sum of trade in the internal and external market. Intra EU-trade is more develop (2/3higher) than extra EU-trade which represents only 1/3. In fact, the EU has the largest economy in the world accounting for 20% of the GDP, it is the biggest player on the global trading scene and occupies the best position in the world trade.

However, for intensifying trade in Europe, the EU signs trade agreements with external markets in other to open each other economies and reduce or eliminate trade barriers. From trade agreements, the EU seeks to gain more benefits from international trade in the aim to boost their economy. For example: the trade agreement between the EU and USA or China, increases the number of jobs in Europe and promotes economic growth. Unfortunately, there cannot exists a cooperation without problems reason why resolving those problems will bring more opportunities in the European Union.

This paper contains four chapters. The first chapter is dedicated to provide a brief history of the EU. The detailed facts will help readers get necessary information about the cause of the idea of a Europe united and the constitution of the EU to become 28 member states. The second chapter talks about the European Union trade system, illustrating the trade policy that the 28members states should respect, the trade agreement with trading partners and the EU trade negotiation procedure. The third chapter examines the EU in the world trade by analyzing some trade statistics of the EU (imports, exports, and trade balance data): the mains goods and services trade, their mains trading partners and their position in the world trade. And the last chapter outlines the trade relation between the EU and others countries like USA and China by explaining their trade agreements, analyzing their trade statistics, examining the benefits, problems and solutions resulting from the trade agreement and at the end the FDI between them.