The EU is working on a system of supranational independent institutions and intergovernmental decisions negotiated by member states. The important institutions of the EU are the European Commission, the Council of the European Union, the European Council, the European Court of Justice and the European Central Bank. The European Parliament is elected every five years by EU citizens. The EU has developed an internal market through a standardised legal system that applies to all Member States. Passport controls have been abolished within the Schengen area (which includes EU and third country member states). EU policy aims to ensure the free movement of people, goods, services and capital, to legislate in the areas of justice and home affairs and to maintain common policies in the areas of trade, agriculture, fisheries and regional development. The monetary union, the euro area, was created in 1999 and has been made up of 17 Member States since January 2012. Thanks to the common foreign and security policy, the EU has developed a limited role in external relations and defence. Permanent diplomatic representations have been established around the world.

The EU is represented at the United Nations, the WTO, the G8 and the G20. There were three political institutions exercising the executive and legislative branches of the EEC, as well as a judicial institution and a fifth institution established in 1975. These institutions (with the exception of auditors) were established by the EEC in 1957, but were applicable to the three Communities from 1967. The Council represents governments, Parliament represents citizens and the Commission represents European interests. A deal can be easier to get through compromise – somewhere in the package, there should be something for everyone. The GATT was established in 1948 to regulate world trade. It was created as a means of stimulating economic recovery after the Second World War by reducing or eliminating tariffs, quotas and subsidies. The assertion that Article 24 could be used in this way has been criticized as unrealistic by Mark Carney, Liam Fox and others, as point 5c of the contract requires an agreement between the parties so that Article 5b can be useful, since there would be no agreement in the case of a non-agreement scenario. In addition, critics of the GATT 24 approach point out that services would not fall under such regulation. [28] [29] One of GATT`s major achievements has been indiscriminate trade.