This article was the Topic of the Week in the May 2025 newsletter (KW 19).

As part of its "Clean Industrial Deal" , the European Union presented a new trade instrument in February: Clean Trade and Investment Partnerships, or CTIPs. Like all measures under the Clean Industrial Deal, CTIPs aim to make the EU both environmentally sustainable and competitive. However, it remains unclear how the described partnerships will look in practice, how the negotiation processes will be structured, and what specific added value they can provide to European companies.

A More Flexible Form of Trade Agreement

CTIPs are often informally referred to as "mini" or "soft" trade agreements. The European Commission defines them as "alternative forms of engagement." Unlike traditional, mostly bilateral trade agreements, Clean Trade and Investment Partnerships are not legally binding and allow for more flexibility thanks to faster negotiations. Examples include partnerships in raw materials, energy, or technology.

CTIPs are assigned to the "Global Gateway" strategy, which bundles EU activities outside the internal market—particularly infrastructure projects in developing countries. This creates opportunities for the European economy: market development, access to raw materials, and supply chain diversification.

Making Cooperation More Effective

In terms of content, the EU plans to define different cooperation priorities for CTIPs from partner country to partner country. In practice, South Africa and the EU have been negotiating a CTIP since March 2025, which is expected to be completed by the end of the year. The focus is on transitioning to more environmentally sustainable energy, qualifications and technology, the development of strategic industries along entire supply chains, and raw materials.

Similar efforts have already been made in the form of EU raw material partnerships, which were also initiated under Global Gateway. These additionally refer to the Critical Raw Materials Act—an EU law aimed at securing the supply of essential raw materials by reducing dependencies and promoting domestic production. Since 2021, the EU has established such raw material partnerships with 13 third countries, including Argentina, Uzbekistan, and Chile. However, these are declarations of intent; concrete measures are still pending.

Turning Measures into Action

The example of raw material partnerships shows that CTIPs need to be strategically designed and implemented more purposefully. To be effective, it is essential to reduce trade barriers in target sectors. It would also be beneficial to have concrete Global Gateway projects where European companies support the transition to more environmentally sustainable energy. Furthermore, involving the business community in the negotiation process would ensure that CTIPs also benefit the private sector in practice. The network of German Chambers of Commerce Abroad (AHK) and the worldwide German Mining & Resources Network can provide crucial support with their expertise in target markets. Additionally, transparent reporting on CTIPs is necessary to measure successes and make necessary adjustments. This is particularly important because there is currently no systematized procedure.

Given increasing protectionist tendencies, declining EU competitiveness, and lengthy negotiations for comprehensive trade agreements, action is needed. Targeted and effective instruments must contribute to improving mutual market access and diversifying supply chains.