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External Trade and Development Policy

Explore the European Union's external trade and development policies, including key elements, legal frameworks, policy instruments, and the EU's role in world trade dynamics.

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External Trade and Development Policy

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  1. External Trade and Development Policy “Fortress Europe” or “Partner Europe”?

  2. External Trade Policy and Development Policy: introduction • Context of the External Trade Policy (and Development policy): European Union as an international player • What are the most important elements? • Origin, treaty basis, and decision-making • Policy instruments: autonomous actions and trade agreements • Position of the EU in WTO-negotiations • Development Policy

  3. Share of trading blocs in World Trade (Exports and Imports)

  4. Origin, legal basis and decision-making • “external” dimension of customs union • Legal basis: art. 133 TEC (1st pillar) • Changes in the “Constitution” • Implementation of art.133 TEC: 2 main problems: • The scope of EU competence in international trade policy • Relation between Commission, Council, art 133 Committee: power game

  5. The scope of EU competence in international trade policy making • Extension trade agenda and constant legal basis • Competence EU in trade in services, intellectual property rights, investment rules? • Decision Court of Justice (1994): distinction between “exclusive” and “shared” competences

  6. Commission-Council relation • Community method of decision-making (1st pillar) • Role of art 133 Committee • Decision-making in 3 stages: Mandate, Negotiations, Adoption of Agreement • Limited role of other institutions

  7. Policy instruments • Instruments of Commercial defense (e.g. anti-dumping measures): art. 133 TEC • International Trade Agreements: legal basis: art .300 and 310 TEC • Most important part of EU’s foreign trade policy: “partner” Europe vs. “fortress” Europe • Importance of political and development-policy related objectives of these trade agreements

  8. International Trade Agreements • Europe-Agreements and Association Agreements • EG+EFTA: European Economic Area • Euro-med Agreements • Free Trade Agreements (Mexico, Israel, South Africa, ASEAN) • Transatlantic relation: no trade liberalisation agreement as such but very important trade relations

  9. The EU and the Least Developing Countries (LDCs) • The Generalized System of Preferences: - all developing countries (not only LDCs) - WTO-framework • ACP-agreements (Lomé Conventions, Cotonou and Economic Partnership Agreements) • Everything But Arms Initiative (2001)

  10. Position of the EU in WTO-negotiations • Multilateral trade liberalisation: a long and difficult road <-> need for “globalisation maîtrisée” • The Uruguay-round (1983-1993): achievements and concessions for the EU • Doha round (2001- never ending story?) • Launched by the EU • Difficult evolution: Doha-declaration (2001)- Cancun (2003)- Geneva (2004)

  11. Development Policy of the EU • Use of policy instruments external trade policy (ACP-agreements, GSP, etc.) • Origin, Treaty Basis • Complementary character: “national” policy • Objectives, Principles of Action, Policy Instruments • Actors (ECHO, DG Development, Europeaid, Other DGs, international cooperation)

  12. Some conclusions • Leading role of European Commission in trade liberalisation initiatives and reserves of the Member States • The EU as an “economic” power: can it be translated into more “political” power? • Development Policy: use of EU trade policy instruments, however still an overall national policy

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