The pact was signed with Toy Traders of Europe, EuroCommerce, the European Retail Round Table and the European Promotional Products Association.
Those signing the document have agreed to improve toy safety using a number of methods including providing education and training on standards and focusing on the lower end of the market, where the majority of non-compliant toys are found.
EU consumer affairs commissioner Meglena Kuneva said "The agreement with toy importers and retailers is a very positive sign of the industry's commitment to toy safety, and should help to further reinforce the system that has been put in place to ensure the safety of all toys sold in the EU.
"Clear safety guidelines will be developed for use throughout the industry, to outline the systems and procedures that can be put in place to ensure that products meet the required standards."
A similar agreement was signed earlier this year with Toy Industries of Europe, the EU executive said.