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Trade and Economic Security

Libya

EU trade relations with Libya. Facts, figures and latest developments.

Country or region
  • Libya
Trade topics
  • Negotiations and agreements
  • Trade policy

Trade relations between the European Union and Libya have been marked by the country’s long-lasting crisis, instability and lack of political settlement. Alongside Syria, Libya is the only partner among the Southern Neighbourhood (Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine*, Syria and Tunisia) not to have an Association Agreement with the EU.

Trade picture

  • The EU is Libya’s largest trading partner, accounting for 42.5% of Libya’s total trade in goods. The EU is also the main destination for Libyan exports (75.9% of the total) and the main origin of Libyan imports (62.9% of the total). 
  • Libya is the EU’s 32nd largest trading partner and the 23rd largest importer to the EU. 
  • Total trade in goods between the EU and Libya amounted to €28.3 billion in 2024, decreasing by 5.4% compared to €29.9 billion in 2023. 
  • The value of Libyan goods imported by the EU decreased from €23.1 billion in 2023 to €21.1 billion in 2024 (-8.7%). EU goods imports from Libya are dominated by mineral products (€20.6 billion), which account for 98% of total imports. 
  • EU goods exports to Libya have increased by 5.7%, from €6.8 billion in 2023 to €7.2 billion in 2024. The main goods exported are mineral products (€3.6 billion, 49.9% of total exports), followed by machinery and appliances (€0.9 billion, 12.4% of total exports) and foodstuffs (€0.7 billion, 9.4% of total exports).
  • In 2024, the EU registered a goods trade deficit of €13.9 billion with Libya. 
  • Total trade in services between the EU and Libya reached €1.6 billion in 2023, with the EU exporting €745 million worth of services to Libya and importing €884 million worth of services from Libya.  
  • The total foreign direct investment (FDI) stock between the EU and Libya totalled €8.8 billion in 2023, with EU inward FDI stock accounting for €0.8 billion and outward FDI stock amounting to €8.0 billion. 

The EU and Libya

The EU has no trade arrangements with Libya. In 2008, the EU and Libya started negotiations for a Framework Agreement on trade. However, these negotiations were suspended in February 2011 due to the ongoing political crisis. Even though the EU assists Libya with its political transition to a stable and prosperous country, with the resumption of bilateral trade negotiations remaining an option in the future, the current lack of a political settlement prevents any trade discussions from taking place at the moment.

Libya is not a WTO member. Libya’s accession negotiations to the organisation started in July 2004 with the establishment of a Working Party. However, the negotiation process remains stalled.

Financial support

  • The European Neighbourhood Instrument (ENI) was the key EU financing instrument for bilateral cooperation in Libya for the period 2014-2020. During this period, the EU’s financial assistance to Libya was worth €98 million and focused on the following priority sectors: governance, economic development, health, and support for civil society and young people.
  • Under the EU’s Multiannual Financial Framework for the period 2021-2027, the EU will adopt a broad new financial cooperation instrument: the Neighbourhood, Development and International Cooperation Instrument (NDICI), which will replace the ENI. Due to the unstable political situation in Libya, since 2017 the EU has planned its financial assistance through yearly ‘Special Measures’, rather than through a multiannual programming process. This allows the EU to respond optimally to the rapidly changing environment.
  • More information on EU support is available from the Directorate-General for Neighbourhood and Enlargement Negotiations.

Libya in the Southern Neighbourhood

The EU established its privileged partnership with the Eastern and Southern shores of the Mediterranean back in 1995 with the launch of the Euro-Mediterranean Partnership at the Barcelona Conference, aiming to establish an area of peace, stability and economic prosperity that upholds democratic values and human rights.

The 25th anniversary of the Barcelona Process in November 2020 was an opportunity to reflect on the strategic partnership with the region in light of the political, socioeconomic, financial and environmental challenges exacerbated by the Covid-19 pandemic, and to reassess the EU’s partnership with Libya and the other Southern Neighbourhood partner countries. Following consultations with partners, this reflection resulted in a Joint Communication by the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy on ‘A renewed partnership with the Southern Neighbourhood – A new Agenda for the Mediterranean’ and the annexed ‘Economic and Investment Plan for the Southern Neighbours’ in February 2021.

While the European Neighbourhood Policy also covers Libya, due to the lack of an Association Agreement, there are no shared Partnership Priorities between the EU and Libya.

More information on the Southern Neighbourhood

Trading with Libya

* This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue.

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