Keeping EU Companies, Jobs and Products Safe from Unfair Foreign Competition

What the resolution is about
The European Parliament says the EU needs stronger rules to stop unfair competition from non‑EU companies. Unfair competition can happen when foreign firms:

• sell goods at very low prices because of state subsidies or cheaper production costs (e.g., in China).
• use lower environmental, safety or labour standards.
• sell products that do not meet EU safety or quality rules.
• use online platforms that let them bypass EU regulations.

The result is that EU businesses—especially small and medium‑sized enterprises (SMEs)—lose sales, jobs are lost, and consumers may buy unsafe or counterfeit goods.

Why it matters

• Dumping & subsidies – foreign firms can undercut EU prices, hurting EU companies.
• Lower standards – products that ignore EU safety, environmental or labour rules can harm consumers and give unfair price advantages.
• E‑commerce growth – cheap online imports flood the market, many of which are non‑compliant. Customs and market‑surveillance authorities are overwhelmed.
• Regulatory gaps – EU rules are not always applied to online sellers, creating an uneven playing field.
• Consumer risk – unlabelled or mislabelled products can be unsafe, especially for children and vulnerable buyers.
• Agricultural competition – EU farmers face imports that lack the same environmental or health safeguards, threatening rural jobs and food security.

What the Parliament wants to achieve

1. Protect EU jobs and businesses, especially SMEs that follow EU rules.
2. Level the playing field so foreign sellers face the same rules as EU sellers.
3. Improve consumer safety and information.
4. Strengthen enforcement by giving customs, market‑surveillance and competition authorities more power and resources.
5. Use trade‑defence tools such as anti‑dumping and anti‑subsidy measures.
6. Reform customs to close loopholes that let low‑value parcels slip through unchecked.
7. Promote digital tools like the Digital Product Passport (DPP) to track product compliance.
8. Support EU industry through funding, innovation programmes and skills development.
9. Help consumers by creating an EU‑wide complaint platform and better redress mechanisms.

Key recommendations

• Unfair competition – use trade‑defence instruments quickly and support small producers who complain.
• E‑commerce – require online platforms to verify seller identity, provide CE‑marking and origin information, and cooperate with authorities.
• Product safety – enforce CE‑marking, define “manufacturer” and “importer” clearly, and remove non‑compliant goods fast.
• Customs – remove the €150 duty exemption, introduce small handling fees, and use AI/blockchain to spot high‑risk shipments.
• Digital Product Passport – adopt the DPP for key product groups (textiles, footwear, electronics, cosmetics, children’s products).
• Consumer information – make country‑of‑origin labelling mandatory for non‑food goods and create an EU‑wide complaint portal.
• Support for SMEs – reduce administrative burdens, speed up clearance for compliant EU goods, and provide targeted funding for affected sectors.
• Enforcement – increase staff, training and tools for customs and market‑surveillance authorities; coordinate sanctions across Member States.
• Agriculture – strengthen traceability and safety checks for imported agricultural products.
• Public awareness – run EU‑wide campaigns that highlight the safety, sustainability and social benefits of EU‑made products.

What will happen next

• The resolution will be sent to the European Commission, the Council and national governments.
• The Commission is expected to act on the recommendations, especially by tightening customs rules, speeding up the DPP, improving enforcement tools, and supporting SMEs and consumers.

Bottom line

The Parliament calls for a stronger, fairer and safer EU market. It wants to stop foreign companies from undercutting EU firms with cheap, low‑standard products—especially through online sales—and to give consumers reliable information and protection. The resolution urges the EU to use trade‑defence tools, improve customs and market‑surveillance, and support EU businesses and workers hurt by unfair competition.

Broader context

The resolution is part of a global trend where regions like the EU are responding to rising economic competition from countries with different regulatory and economic systems. The EU is not alone in addressing these issues—similar concerns have led to trade disputes, tariffs, and regulatory adjustments in other major economies, such as the US and Canada.

The focus on unfair competition reflects broader geopolitical tensions, particularly with countries like China, where state-backed industries, lower production costs, and different standards can create imbalances in global trade. The EU’s approach aligns with its long-standing commitment to fair trade, sustainability, and consumer protection, which are central to its economic and social policies.

The resolution also fits into the EU’s Green Deal and Digital Strategy, which aim to make Europe the first climate-neutral continent and a leader in digital innovation. By addressing unfair competition, the EU seeks to ensure that its environmental, labour, and safety standards are not undermined by imports that do not meet these criteria.

Impact on people living in the EU

For consumers, the resolution means:

• Safer products: Stricter enforcement of CE-marking and origin labelling will reduce the risk of buying unsafe or non-compliant goods, especially online.
• Better information: Mandatory country-of-origin labelling and the Digital Product Passport (DPP) will help consumers make informed choices about the products they buy.
• Stronger protections: An EU-wide complaint platform will make it easier to report issues with products or sellers, leading to faster resolutions.

For workers and businesses, especially SMEs:

• Fair competition: Stronger trade-defence tools (like anti-dumping and anti-subsidy measures) will help level the playing field, protecting EU jobs and industries.
• Support for SMEs: Reduced administrative burdens, faster clearance for compliant goods, and targeted funding will help small businesses compete more effectively.
• Job security: By addressing unfair competition, the resolution aims to protect jobs in sectors like manufacturing, agriculture, and retail.

For farmers and rural communities:

• Fair agricultural competition: Stricter traceability and safety checks for imported agricultural products will help ensure that EU farmers are not disadvantaged by imports that lack the same environmental or health safeguards.

For online shoppers:

• Fewer loopholes: Removing the €150 duty exemption and introducing small handling fees for low-value parcels will reduce the flood of unchecked, non-compliant goods entering the EU market.