This paper presents a game-theoretical analysis of the Lisbon Treaty’s impact on EU trade policy. Specifically it focuses on the reforms that have increased the European Parliament’s involvement: the introduction of codecision for trade policy making, and the Parliamentary consent requirement for international trade agreements. We present spatial models of EU trade policy making and trade agreement negotiations, and analyze the impact of the Lisbon Treaty on EU policy and international agreements, the institutions’ powers and the extent of indecision. We conclude that the Parliament’s enhanced role limits the Commission’s ability to set policy and conclude negotiations. Even though it represents a domestic constraint for the Commission, the Parliament’s involvement does not reinforce the Commission’s bargaining position in international negotiations. We further find that the Council’s right to set a negotiating mandate in trade negotiations is equivalent to an ex-post amendment right.
