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

This resolution fits into a wider EU effort to protect its economy, jobs and standards while still staying open to global trade. Over the past years the EU has seen large volumes of imports, especially from countries such as China, that are often sold at very low prices, sometimes because of state subsidies, lower environmental rules or weaker labour protections. EU companies that follow strict safety, climate and workers‑rights rules can then find it hard to compete, which has already led to factory closures, job losses and even applications for EU support for displaced workers. europarl.europa

At the same time, online shopping has exploded, with many small parcels coming straight to private addresses from outside the EU, often bypassing normal checks. Existing customs and market‑surveillance rules, especially for low‑value goods, have not kept up, so more unsafe, counterfeit or non‑compliant products can reach consumers. The EU has already developed tools such as trade‑defence instruments (anti‑dumping, anti‑subsidy) and new product‑safety rules, but this resolution pushes for their faster, broader and more systematic use. academic.oup

Impact on people living in the EU

For people living in the EU, the main effects will be felt in jobs, prices, safety and information around the products they buy. europarl.europa

• Jobs and local businesses: The aim is to better protect EU companies, especially small and medium‑sized firms, so they are less likely to close or cut jobs due to unfair outside competition. This can help keep more factories, shops and services running in EU regions, including in places like Poland where many family‑run businesses operate. europarl.europa
• Product safety and quality: By tightening customs checks, e‑commerce rules and product‑safety enforcement, the EU wants to reduce the number of unsafe or plainly illegal goods in the market, especially things like toys, electronics and children’s products. This means consumers should feel more confident that the products they buy are checked and safe. academic.oup
• Prices and consumer choice: Some types of cheap imports may become slightly more expensive or harder to sell (for example, if customs duties change or more controls are added). At the same time, the EU wants to make it easier for EU‑made goods that meet high standards to reach consumers, so people can choose options that are safer, more sustainable and fairer for workers. europarl.europa
• Information and complaints: Consumers should get clearer country‑of‑origin labels on non‑food goods and more traceable information using tools such as the Digital Product Passport. An EU‑wide complaint platform could make it easier to report problems with products or online sellers, with better follow‑up by authorities. europarl.europa

Impact on people living outside the EU

For people living in countries outside the EU, the main short‑term effects are likely linked to exports to the EU market. Companies that rely heavily on selling goods to the EU may face tighter checks, clearer rules and fewer loopholes (for example, changes to the €150‑value customs exemption and more digital tracking). Firms that already meet solid environmental, safety and labour standards can benefit from clearer rules and fairer competition, whereas those that count on very low prices due to subsidies or weak regulation may see smaller margins or reduced access to the EU market. policy.trade.ec.europa

At the same time, if the EU’s new rules push more companies abroad to raise their standards (for example safety, transparency or workers’ conditions) in order to keep selling into the EU, that can lead to better‑quality jobs and safer products even in non‑EU countries. policy.trade.ec.europa