The European Union has agreements with Eastern European countries that allow for free trade, but some products are still protected. The EU benefits from this trade by accessing new markets, helping Eastern European countries grow economically, and promoting democracy. Some EU countries worry about competition and investment diversion. This study looks at the advantages of Eastern European countries, the impact on specific EU countries, and the effects on industries like steel and textiles. The research shows how trade and investment flows are changing in Europe due to these agreements.