Recently, the international legality of the EU’s economic activity in unlawfully acquired territories has gained much salience. Claims are increasingly heard that the duty of non-recognition requires the inapplicability of trade agreements to unlawfully acquired territories. In this light, this article attempts a survey of the relevant EU practice by focusing on the case-studies of Palestine and Western Sahara. The main question examined here is whether the EU has acted in breach of its obligation of non-recognition by concluding agreements with third States that extend to unlawfully acquired territories. Overall, this article argues that there is a growing gap between EU identity rhetoric as a promoter of international law and its actual practice on the ground.