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.
Sophie Meunier and Kalypso Nicolaïdis
This chapter examines the determinants of the European Union's trade power as well as the contribution of trade policy to the power of Europe in the international system. It first considers how the EU acquired and expanded competence to represent the member states in trade policy, from the Common Commercial Policy in the Treaty of Rome to trade policy after the Treaty of Lisbon. It then provides an overview of the EU trade policymaking process before discussing the exercise of the EU's trade power. In particular, it explores the European single market and world trade liberalization, settlement of disputes in the World Trade Organization, and the EU's retreat from multilateralism. The chapter also looks at preferential trade agreements, along with bilateral and regional agreements, and concludes with an analysis of how the EU is resolving the tensions inherent to being a world power in trade and through trade.
John Peterson and Alberta Sbragia
This chapter examines some of the most important areas of policy-making in the European Union. It first explains how EU policy-making differs from national policy-making before discussing the most important policies aimed at building the internal market and limiting its potentially negative impact on individuals, society, and the environment. The EU’s ‘market-building’ policies include competition policy, trade policy, and the Economic and Monetary Union (EMU), while ‘market-correcting’ and ‘cushioning’ policies include the common agricultural policy, the cohesion policy, and environmental and social regulation. The chapter shows how these policies are made and also why and how they matter. It also compares policy types in the EU.
John Peterson and Niklas Helwig
The European Union’s ambitions to be a global power are a surprising by-product of European integration. Students of European foreign policy mostly focus on EU trade, aid, and the Common Foreign and Security Policy (CFSP). But the national foreign policy activities of its member states cannot be neglected. On most economic issues, the EU is able to speak with a genuinely single voice. It has more difficulty showing solidarity on aid policy but is powerful when it does. The Union’s external policy aspirations now extend to traditional foreign and security policy. But distinct national policies persist, and the EU suffers from fragmented leadership. The chapter begins by considering the development of EU foreign policy and then considers how a national system of foreign policies exists alongside EU policies in the area of trade and international development. It then examines the EU’s CFSP and Common Security and Defence Policy (CSDP).
Christopher Hill, Michael Smith, and Sophie Vanhoonacker-Kormoss
International Relations and the European Union takes a unique approach by incorporating the study of the EU’s world role into the wider field of international relations. The text explains the EU’s role in the contemporary world. Beginning with an examination of theoretical frameworks and approaches, the text goes on to address the institutions and processes that surround the EU’s international relations. Key policy areas, such as security and trade, are outlined in detail, alongside the EU’s relations with specific countries, including the United States, China, India, and Russia. Updates for the fourth edition include chapters on the EU’s relationship with Africa and Asia, coverage of the implementation of the EU’s foreign policy, and exploration of how the EU’s international relations relate historically to the European integration process, and the contemporary issue of migration.
Making Policy in Turbulent Times
Alasdair R. Young
This chapter introduces the importance of EU trade policy both to the European integration project and to the EU’s role in the world. It explains how different aspects of trade policy are made. The chapter also charts how the emphasis of EU trade policy has shifted from prioritizing multilateral negotiations to pursuing bilateral agreements. It considers how the EU has responded to the apparent politicization of trade policy within Europe and to the United States’ more protectionist and unilateral trade policy. It also considers Brexit EU trade policy and how trade policy complicated Brexit. It argues that there has been considerable continuity in EU trade policy despite these challenges.
This chapter examines how policy towards the European Economic Community (EEC) fitted in with French leader Charles de Gaulle's broader European and international objectives and how the international constraints on his certain vision of France gave rise to his evolving, uncertain idea of Europe. Having denounced the Treaty of Rome before coming to power in 1958, de Gaulle ensured the EEC's survival by undertaking financial reforms in France and warding off Britain's effort to negotiate a wider free trade area. He linked these initiatives to implementation of the common agricultural policy (CAP). The chapter also considers de Gaulle's proposal for an independent and intergovernmental European Union and his role in the so-called Empty Chair Crisis of 1965–6. Finally, it discusses the impact of de Gaulle on the course of European integration.
Sophie Meunier and Kalypso Nicolaïdis
Internal and external trade liberalization have together constituted the essence of European integration since the Treaty of Rome. Successive enlargements, along with the constant deepening of the single market, have turned the European Union (EU) into one of the world’s largest trade powers. The EU forms trade policy through a complex decision-making process, often contested politically, which allows it to speak on behalf of its members in international trade, and now investment, negotiations. This chapter argues that not only does the EU derive some inherent power from trade, but it has also long used trade as the backbone of its normative power, using its market access in order to obtain political concessions from its commercial partners. However, this role has been increasingly challenged by recent changes in the relative power and behaviour of the EU’s main trade partners and competitors, which have forced Europe to refocus its trade policy towards more traditional commercial objectives and to create new unilateral trade defence instruments. Through its goal of what is terms open strategic autonomy, the EU is trying to strike a delicate balance between remaining a force for liberalism and openness in the world while not being naive and taken advantage of. This chapter explores the determinants of the EU’s trade power and examines the contribution of trade policy to the power of Europe in the international system, both in the context of international trade agreements and in the broader framework of international relations.
This chapter focuses on the external economic relations of the European Union—the longest-established area of collective European international policy-making and action—and specifically on trade and development policy. The chapter begins by examining institutions and policy-making for trade, in which the Commission plays a central role in initiating and conducting policy, and looks especially at the Common Commercial Policy (CCP). It goes on to examine development policy—an area of mixed competence, in which policy responsibility is shared between the EU institutions and national governments. The chapter then proceeds to explore the substance and impact of EU trade and development policies, and to assess the linkages between the two areas. The conclusions draw attention to a number of tensions and contradictions in EU trade and development policy, including those arising from the departure of the United Kingdom.
The EU’s ambitions to be a global power are a surprising by-product of European integration. Students of European foreign policy mostly focus on EU trade, aid, and the Common Foreign and Security Policy (CFSP). But the national foreign policy activities of its member states cannot be neglected. On most economic issues, the EU is able to speak with a single voice. It has more difficulty showing solidarity on aid policy but is powerful when it does. The Union’s external policy aspirations now extend to traditional foreign and security policy. But distinct national policies persist, and the EU suffers from fragmented leadership. The chapter begins by considering the development of EU foreign policy and then considers how a national system of foreign policies exists alongside EU policies in the area of trade and international development. It then examines the EU’s CFSP and Common Security and Defence Policy (CSDP).