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Chapter

Cover Origins and Evolution of the European Union

4. Liberalization, Convertibility, and the Common Market  

Wendy Asbeek Brusse

This chapter examines how the European Payments Union resolved the problem of currency convertibility and unlocked the potential of trade liberalization, thereby paving the way for the European Economic Community (EEC), which in turn spurred further intra-European trade. It first provides an overview of trade and payments before and immediately after World War II and goes on to discuss postwar approaches to convertibility and liberalization. It then considers the degree, speed, and commitment with which countries opened up their domestic markets to each other's exports under the Trade Liberalization Programme. It concludes with an assessment of Britain's efforts to join a wider free trade area with the members of the Organization for European Economic Cooperation.

Chapter

Cover International Relations and the European Union

10. The European Union as a Trade Power  

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.

Chapter

Cover Politics in the European Union

24. Trade and Development Aid  

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.

Book

Cover International Relations and the European Union

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.

Chapter

Cover Origins and Evolution of the European Union

12. The Enlarging European Union  

Anna Michalski

This chapter examines the pervasiveness and importance of enlargement in the history of European integration. It first considers the principles, conditions, and instruments of enlargement before discussing the roles of various institutional actors and the candidate states. It then shows how, faced with the likelihood of large-scale Central and Eastern European accession, the European Union extended the requirements for membership to include the candidate countries' democratic credentials and economic competitiveness. The first enlargement included Britain, Denmark, and Ireland, followed by Greece, Spain, and Portugal, the European Free Trade Association, the Central and Eastern European countries, Cyprus, and Malta. The chapter also explains how the EU has developed a variety of strategies to deal with growing differences among the member states' socio-economic situations and policy needs without formally resorting to a division of its membership in concentric circles, core and peripheral groups, or alternative frameworks.

Chapter

Cover Origins and Evolution of the European Union

6. Charles de Gaulle’s Uncertain Idea of Europe  

Jeffrey Vanke

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.

Chapter

Cover International Relations and the European Union

8. The European Union as a Trade Power  

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.

Chapter

Cover Policy-Making in the European Union

16. Trade Policy  

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.

Chapter

Cover The European Union

8. The EU as a Global Actor  

Niklas Helwig

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).

Book

Cover International Relations and the European Union

Christopher Hill, Michael Smith, and Sophie Vanhoonacker

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 third edition include expanded discussions of three key perspectives to provide a rounded picture of the EU's place in the international system: as a sub-system of international relations, as part of the process of international relations, and as a power in its own right.

Chapter

Cover Democratization

12. Social Movements and Contention in Democratization Processes  

Federico M. Rossi and Donatella della Porta

This chapter explores the relationship between social movements, trade unions, and transnational advocacy networks of resistance to non-democratic regimes in the global wave of democratization. It considers views from social movement studies within the democratization literature as well as views of democratization within the social movement literature. It also examines the diverse roles played by movements, depending on the type of democratization process and the stage in which mobilizations emerge (resistance, liberalization, transition to procedural democracy, consolidation, expansion). The chapter identifies a host of factors that produce the most favourable setting for democratization, including a non-syndical strike wave and/or a pro-democracy cycle of protest; increased political organization in urban areas, and a relatively dense resistance network; and the existence of pro-democratic elites able to integrate the demands for democracy coming from below (at least until transition is well initiated).

Chapter

Cover Policy-Making in the European Union

18. International Development  

A Distinct and Challenged Policy Domain

Jan Orbie

The European Union (EU) is widely recognized to be a major actor in international development cooperation. First, this chapter discusses key issues and debates in EU development policy. These relate to the importance of the EU in this field, the different objectives that it pursues, the aid budgets at its disposal, and the legal competences vis-à-vis the member states. Secondly, the uniqueness of this policy domain, compared to other EU policies in this volume, is addressed. Specifically, it highlights three distinctive features: the availability of budgetary power outside the EU, the long historical legacy dating back to member states’ colonial past, and the key role of trade as the preferred tool for development. Thirdly, the chapter elaborates two main policy-making domains: the EU as a donor itself and as a coordinator of member states’ policies. Overall, the EU follows the regulatory and distributional modes in its role as a donor, and when it seeks to coordinate member-state policy, the policy coordination mode is to the fore. Moreover, intensive transgovernmentalist features appear in both domains. The conclusion summarizes the main trends and future challenges including the implications of Brexit, the rise of China, and the increasing politicization of aid.

Chapter

Cover European Union Politics

17. Trade and Development Policies  

Michael Smith

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.

Chapter

Cover European Union Politics

27. Brexit  

Nieves Pérez-Solórzano Borragán and Michelle Cini

This chapter analyses the United Kingdom’s departure from the European Union (EU), commonly known as Brexit. The chapter examines the historical context that shaped the UK’s decision to join the European Economic Community (EEC) and its subsequent relationship with the EU. It charts the events leading to the 2016 EU referendum, including the campaign and explains the reasons for the narrow Leave vote. The Withdrawal Agreement (WA) negotiations under Article 50 are discussed by focusing on process, actors, and outcomes. This is followed by an evaluation of the negotiations leading to the signing of the Trade and Cooperation Agreement (TCA) and its implications. The chapter ends by discussing the impact and implications of the UK’s departure from the EU.