europe and the world. topics external trade relations foreign policy preferential relations special...
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Europe and the World
Topics
External Trade Relations Foreign Policy Preferential Relations Special Matters
External Trade Relations The concept of “civilian power” The record of external trade Focal points
Common external tariff (CET) Other measures for liberalization of
commerce Negotiations in international trade
organizations (GATT, WTO since 1995)
External Trade Relations (cont’d-1)
The special issue of agriculture Institutional aspects
External Trade – RecordEU Trade by Trading Partners
1970% Imports
1970% Exports
1994% Imports
1994% Exports
Non-EU Western Industrialized 54.6 59.3 58.1 53.3Central-Eastern Eur and former USSR
8.4 7.3 9.1 8.1Developing Countries 38.0 31.0 29.7 34.2
ACP 8.9 7.6 3.4 2.8
Mediterr
9.4 10.3 7.9 10.2
Asian nic’s
1.5 2.1 5.5 5.2
China 0.5 0.9 4.2 2.3
External Trade – Record (1)
As % of GDP, EC/EU external trade has not changed much (about 10%)
Strong regional concentration EFTA trade largest component before
accession of former EFTA members ¾ of total trade of average EU member
consists of intra-European trade
External Trade – Record (2) Trade with Developing Countries
Big decline since early 1970’s oil crisis Biggest decline for ACP countries Noteworthy increase for Asian NIC’s and
China Import penetration into EC/EU
Machinery and transport equipment Dynamic high technology sectors
(telecommunications, data processing, etc.)
External Trade – Record (3) Strong EU export presence in:
Chemicals and steel High-end textiles and clothing
Self-sufficiency in food – role of CAP Growth areas
Services Financial markets Internationalized production (intra-industry
and intra-firm trade)
External Trade – CET and Other Measures Foundation for EC/EU commercial
policy and “international actor” role The central role of the Commission
as the “one voice” in external commercial activity
Limited to trade in goods Other measures: quotas, export
policy, anti-dumping, anti-subsidies
External Trade – International Organizations and Forums (1) GATT and its “Rounds” (eg
Kennedy, Tokyo, Uruguay- 1986-94) The Commission as single voice for
EC/EU countries Items of GATT trade liberalization
% reduction in tariffs: 6% CET for manufactured goods in Tokyo Round
Elimination of quantitative restrictions (QR)
External Trade – International Organizations and Forums (2)
Growing attention to NTB’s (Tokyo, Uruguay)
The thorny problem of agriculture Left outside of original GATT
framework at USA insistence Bone of contention between USA and
EU in the 1990’s
External Trade – International Organizations and Forums (3) World Trade Organization (WTO)
Successor to GATT, founded in 1995 as a result of the Uruguay Round
Strong EU commitment to WTO agenda and methods
Strong multilateral emphasis Ongoing negotiating forum Code of conduct Strengthened dispute-settlement and surveillance
mechanisms
External Trade - Agriculture CAP as centerpiece of both internal
market integration and external trade policy
The technical components of CAP 3 core elements: levy, price, financing “Guarantee” (price support) and “Guidance”
(structural funds) Politically expedient high price (for wheat
especially) caused huge surpluses and very expensive price support
External Trade–Agriculture (2) External implications of CAP
Heavily subsidized agricultural exports from EC/EU countries
1975-1984 exports grow 256%, imports only 14%
Developing countries plus: USA, Canada, Australia, New Zealand hit hardest
Need for reform of CAP – both internal and external imperative
External Trade–Agriculture (3)
“The 1992 reform of the CAP, leading to a substantial reduction in intervention prices, opened the way for an EU-US agreement which in turn eliminated one of the main stumbling blocks of the Uruguay Round.” (Tsoukalis, p. 235)
External Trade - Institutions
DG’s
European Foreign Policy (1) Historical Precedents
The failed initiative of the European Defense Community (EDC) 1952-54
A French initiative (Pleven Plan) motivated by the issue of West German re-armament
Military integration: common army, budget, and institutions
Idealized as a rapid move towards political union (European Political Community)
Dramatic rejection by French National Assembly
European Foreign Policy (2)
West European Union (WEU) 1955 Weak (loose intergovernmental) structure Includes Britain Redundant with NATO, which overshadows it Nonetheless serves to coordinate or
synchronize European cooperation within NATO
A way for France to “stay connected” after withdrawing from NATO military command
Over time, especially in the 1990’s, emerges as a new possibility for coordinated defense
European Foreign Policy (3)
European Political Cooperation (EPC) Cooperation among Member States on
foreign policy through increasing mutual consultation and selective identification of common positions
Operates outside of EC structure Intergovernmental and voluntary A “club” of foreign policy experts in EC
governments who readily achieve a union of views and perspectives where crucial national interests do not clash
European Foreign Policy (4)
Highlights of common positions Soviet invasion of Afghanistan 1979 Polish Solidarity movement in 1981 Falklands War and Argentina 1982 South Africa in 1986 “Clout” in two major global contexts
Middle East Conference on Security and Cooperation in
Europe (CSCE) – Helsinki 1975 (includes USSR)
Assessment: not insignificant, but uneven and with limited results
European Foreign Policy (5)
The Big Innovation: Common Foreign and Security Policy (CFSP) An outgrowth of concern for “consistency”
in external policy actions of EC and EPC First steps towards institutional
congruence taken in SEA CFSP as “within the framework” - an
outgrowth of IGC on Political Union in 1990
European Foreign Policy (6) CFSP (cont’d)
CFSP as a “late addition” to Political Union (focus of latter is institutional reform, especially the role of Parliament)
CFSP as an outcome of Mitterrand-Kohl collaboration: global vision of European foreign policy, without clear details
CFSP as shaped by the Gulf War, with a priority on security and defense
European Foreign Policy (7) Maastricht creates CFSP, as CFSP
shapes the EU The “pillar idea” as a result of CFSP CFSP becomes “part of” (integral to,
within the framework of) EU CFSP structure
European Council as the key body – determines foreign and security policy and general guidelines
European Foreign Policy (8) CFSP structure (cont’d)
Council of European Union (Council of Ministers) takes necessary decisions to implement common policy and guidelines
Political Committee, Political and Security Committee, Military Committee
Secretary General of the Council = High Representative for the CFSP assists Council and acts on its behalf
European Union Military Staff (military experts) attached to High Representative
Presidency of the EU: represents EU in CFSP externally
European Foreign Policy (9)
CFSP Procedure Initiative belongs to: Presidency, Member State,
High Representative Policy instruments: common position, joint
action, decision, conclusion of international agreements, declaration
Example: joint action on Union Monitoring Mission in the Federal Republic of Yugoslavia (adopted 2000)
Decision-making Unanimity as norm, and obligatory for military or
defense matters “Constructive abstention” allowed Qualified majority voting (with a higher majority
threshold than in EC decisions) for implementation by Council of Ministers
European Foreign Policy (10) Relationship to EC (“economic” pillar of
EU) Commission participates as integral member
of CFSP bodies, but without special powers as in the EC. However, like any Member State, it can submit initiatives to CFSP
Directorate-General for External Relations of the Commission has specialized role in preparing work of the Council, in follow-up to its actions, and especially in coordinating relationship to international organizations
European Foreign Policy
CFSP