Foreign Policies

Chapter 12 of The Political System of European Union Hix, S. and Hoyland, B.

The European and International dimension of policy-making Ricardo Abreu 14707, PDPP

Resume of chapter
A.Theories of International Relations and Political Economy B. External Economic Policies: Free Trade,Not Fortress Europe C. External Political Relation: an EU foreign policy D.Explaining the Foreign Policies of EU E. A Soft Superpower

Theories of international Relations and Political Economy

Realism Liberalism Constructivism

Theories of international Relations and Political Economy

Realism The State are unitary actor. Politics and
citizens have a same perception of national interest 2 Economic

The interest are: 1 geopolitical/security; The State is rational. Maximize its security

Theories of international Relations and Political Economy

Liberalism The State are not a unitary actor. the preferences
are formed by a social construction. Competition between groups (social groups and elites).

The competition are driven bye economic interest rather geopolitical. International systems the states pursue their economic preferences shaped by state interdependence and behaviour of international institutions.

Theories of international Relations and Political Economy

Constructivism The preferences of actors are based in
ideological and/or cultural norms

Actors are not strictly rational, their are

bound by psicological or normative constraints socialization

The preferences and behaviour is result of

Two faces of a coin

Economic policy
Trade Agreements

Foreign and Security Policy

Common Foreign and Security Policy

Development and humanitarian aid

European Security and Defence Policy

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy 1. A single set of rules on importation of goods (CCP) 2. Bilateral and multilateral trade agreements between the EU and other states or blocs 3. Trade, aid and cooperation policies with developing countries

External Economic Policies. Free Trade, Not Fortress Europe

The pattern of EU trade EU Major trade countries in 2011

% Trade

External Economic Policies. Free Trade, Not Fortress Europe

The pattern of EU trade
EU Major trade regions in 2011
5%1%5%
(imports+exports)

Regions

17%
3% 5% 6%

28%

11%

13%

4%

0%

ACP Andean Community ASEAN BRIC CACM Candidate Countries CIS EFTA Latin American Countries MEDA (excl EU&Turk) Mercosur NAFTA

External Economic Policies. Free Trade, Not Fortress Europe

The pattern of EU trade
EU trade in 2011
EU exports to World
0% 2% 3% 3% 4% 6% 10% 11% 13% 17%
Machinery and transport equipment Chemicals and related prod, n.e.s. Manufactured goods classied chiey by material Miscellaneous manufactured articles Mineral fuels, lubricants and related materials Food and live animals Commodities and transactions n.c.e. Crude materials, inedible, except fuels Beverages and tobacco Animal and vegetable oils, fats and waxes

EU imports from World

5% 42% 9%

0% 2% 5% 1%

29%

13%

26%
Mineral fuels, lubricants and related materials Machinery and transport equipment Miscellaneous manufactured articles Manufactured goods classied chiey by material Chemicals and related prod, n.e.s. Food and live animals Crude materials, inedible, except fuels Commodities and transactions n.c.e. Animal and vegetable oils, fats and waxes Beverages and tobacco

External Economic Policies. Free Trade, Not Fortress Europe

The pattern of EU trade
EU Trade in 2011-2012
EU merchandise trade with non-EU countries: monthly growth
20,00%

15,00%

10,00%

5,00%

0%

Nov. 2011

Dec. 2011

Jan. 2012

Feb. 2012

Mar. 2012

Apr. 2012

May. 2012

Jun. 2012

Jul. 2012

Aug. 2012

Sep. 2012

Oct. 2012

Imports

Exports

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

1. Common Commercial Policy Articles 131-4 of EU treaty set out that the EU has a single external trade policy, know as the Common Commercial Policy (CCP)

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

1. Common Commercial Policy Instruments

The Common External Tariff Import quotas Anti-dumping measures Voluntary Export Restraint

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

1. Common Commercial Policy Actors

EC monopoly of legislative initiative EC negotiates all external trade agreements Council act by qualied-majority given mandates to EC or approve agreements negotiated by EC EP has no formal role in CCP

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

2. Multilateral Trade Agreements GATT

Annecy Round 1949 Torquay Round 1951 Geneva Round 1955/6 Dillon Round 1960/2 Kennedy Round 1962/7 Tokyo Round 1973/9 Uruguay Round 1986/94

WTO

(Doha Round 2001)

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

2. Bilateral preferential trade agreements

EU and Customs union European Economic Area Concluded preferencial agreements Currently negotiation preferencial trade agreements Considering opening preferencial agreements

Source: EC

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

3. Development Policies: aid and trade everthing but arms Aid for Trade (SfT) is develoment assistence provided in support of partner countries

Aid for Trade categories (WTO) a) Trade policy and Regulations b) Trade development c) Trade-related infraestruture d) Building productive capacity e) Trade-related adjustment f) Other trade-related needs

Source: EC

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

3. Development Policies: aid and trade everthing but arms Total AfT commitments of the EU haveonstantly increased over the period 2004-2007, to reach 7,2 bilion in 2007

Financial instruments (incl. AfT)

EDF the European Development Fund (African, Caribbean and Pacific countries): 2008
2013

Value in Million

22682 16897 11181 11468 4500

DCI - the Development Cooperation Instrument (Latin America and Asia including Central
Asia): 2007 2013

ENPI the European Neighbourhood Policy Instrument (Neighbourhood countries and

Russia): 2007 2013

IPA - Pre-accession instrument (the Balkans and Turkey). 2007 2013

Special budget line for multilateral initiatives

Source: EC factsheet on Aid for Trade

External Economic Policies. Free Trade, Not Fortress Europe

3 types of External Economic Policy

3. Development Policies: aid and trade everthing but arms The European Union as a whole is the world's biggest donors of humanitarian aid.Together, Member States and European Institutions contribute more than half of ofcial global humanitarian aid
Commissions European Community
Humanitarian Ofce (ECHO) was created in 1992 (Regulation (CE) n1257/96) In 20 years provided 14 billion in Humanitarian assistence in 140 countries. Anual budged has averaged 1 billion. In 2011 the funds reached nearly 150 million

4 principles European Consensus on humanitarian Aid: Humanity, Neutrality, Impartiality and Independence

Source: ECHO

External political relations: towards an EU Foreign policy

1.Development of foreign policy cooperation and decision-making 2.Policy success and failure: hunted by capability-expectations gap

External political relations: towards an EU Foreign policy

1. Development of foreign policy cooperation and decision-making

1948 West European Union founded OTAN 1952 European Defence Community (EDC) 1969 European Political Cooperation (EPC) 1987 Single European Act (SEA) 1990 Intergovernamental Conference (IGC) 1991 Common Foreign and Security Policy (CFSP)

External political relations: towards an EU Foreign policy

1. Development of foreign policy cooperation and decision-making to assert its identity on the international scene, in particular through the implementation of a common foreign and security policy including the eventual framing of a common defence policy, which might in time lead to a common defence Art. 2 Maastricht Treaty

External political relations: towards an EU Foreign policy

1. Development of foreign policy cooperation and decision-making Actors and decision-making

EPC ministers > General Affairs Council EC > associate of CFSP (Common Foreign and Security Policy) EC > implement Council Foreign decisions (DGEPA) EP > have no role in CFSP decision-making

External political relations: towards an EU Foreign policy

1. Development of foreign policy cooperation and decision-making Instruments under MT

Common positions Joint actions

External political relations: towards an EU Foreign policy

1. Development of foreign policy cooperation and decision-making The Union shall dene and implement a common foreign and security policy civering all areas of foreign and security policy! Art. J.1 Amsterdam Treaty

External political relations: towards an EU Foreign policy

1. Development of foreign policy cooperation and decision-making Instruments under AT

Common strategies Distinction betweeen common position and joint actions Constructive abtention Qualied-majority voting High representative for CFSP Enhanced strategic planning European Security and Defense policy (ESDP)

External political relations: towards an EU Foreign policy

2. Policy success and failure: hunted by the capability-expectation gap Criticism

Despist this institutional integration, the record of EU action in the area of foreign and security policy is far from consistent EU public and the EUs partners are demanding that EU take more active role in world affairs The EU does not have the institutional resources or political legitimacy to take on these roles

Explaining the foreign Policies of the EU

1. Global economic and geopolitical (inter)dependence 2. Intransigent national security identities and interests 3. Domestic economic interests: EU governments and multinational rms 4. Institutional rules: decision-making procedures and Commission agendasetting

Explaining the foreign Policies of the EU

1. Global economic and geopolitical (inter)dependence Economic globalization 1. Price of goods, services and capital > reform of internal policies 2. Beneted some domestic interests but disadvantaged others The end of Cold War the new global political and security challenges that were suppressed by the previous balance of power relations

Explaining the foreign Policies of the EU

1. Global economic and geopolitical (inter)dependence EU foreign policies are essentially reactive rather than proactive: responding to global events rather than shaping them

Explaining the foreign Policies of the EU

2. Intransigent national security identities and interests

High politics (fundamental denition, identity, security and sovereignty of nation-state) Low politics (issues about European economic integration and regulatory policies)

Explaining the foreign Policies of the EU

2. Intransigent national security identities and interests Because foreign and security policies are central to concept of national identity and security, the EU member states have been less willing to agree to supranational forms of decicion-making in this area than in the less politically sensitive area of external economic and trade policies

Explaining the foreign Policies of the EU

3. Domestic economic interst: EU governments and multinational rms From liberal perspective, the determination of policy preferences is the other way round: security interest are derived from economic interests. Economic interests have played a vital part in shaping the external economic policies of EU Economic interests are also a key factor in explaining the EUs external political and security policies

Explaining the foreign Policies of the EU

4. Institutional rules: decision-making procedures and Commission agenda From a liberal-institutionalists point of view the suprenational institutional framework shapes EU global policies in three ways:

Through the existence of a supranational actor EC with a

certain agenda-setting powers.

Through the institutional design of trade policy-making Through the decision-making rules and institutional norms in
the CFSP

Soft Superpower
The EU has a great potential to be a major player in shaping global events, but this potential has exploited more in the economic than in political and security context. Why? The answer lies in the mix of liberal, realist and constructivist theories of international relations!

Soft Superpower
The liberal theory appears to explain EU global economic policies. The realist theory is more helpful in explaining EU foreign and security policies The constructivist theory helps explain why, even when they are deeply divided over a key issue, the member states endeavour to reconcile their national interests with the collective intersts of the EU as a whole

Obrigado