The free trade agreements (FTAs) of the European Union (EU) aim at protecting transnational public goods (PGs) – such as a rules-based, transatlantic market – that could be progressively extended to other European and North-American FTA members and serve as a model for reforming worldwide trade rules and governance institutions. International law and governance can protect PGs more effectively if citizens are empowered as ‘democratic principals’ to hold multilevel governance institutions legally, democratically and judicially accountable for governance failures. The Lisbon Treaty established a ‘cosmopolitan foreign policy constitution’ requiring ‘protection of its citizens’, ‘strict observance of international law’ and rights-based market regulations also in the EU’s external relations. This contribution criticizes EU policies of disempowering citizens in FTAs and undermining their fundamental rights. Without respect for rule of law, the EU cannot overcome its crises of legitimacy and the distrust of citizens vis-a-vis intergovernmental EU regulations.