Abstract

This chapter examines the European Union’s (EU’s) external trade relations in the context of the wider framework of global trade agreements, along with its related policies on development aid, particularly with the African, Caribbean, and Pacific (ACP) states. It first looks at the history of the EU’s trade and development aid, before discussing its contemporary external trade and development policies. It explains the workings of the common commercial policy, considers disputes within the World Trade Organization (WTO), especially with the United States, and explores the EU’s trading relationship with developing countries and near neighbours in the context of the European Neighbourhood Policy (ENP). It then considers theoretical explanations of the EU’s external trade and development aid policies, as well as criticisms of such policies. Analysis of the EU’s external economic relations brings to the fore a number of theoretical themes, such as the tension between nationalism and supranationalism, the complexities of bargaining within multiple international forums, and the dominance of particular ideas across different forums.