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External Policies. Hiroaki Goto Takayuki Kato. External policies. Trade policies Foreign and Defence policies Development policies The External Dimension of Internal policy The Consistency and Representational problems. Trade policy. Economic and Trading strengths of the EU

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External policies

External Policies

Hiroaki Goto

Takayuki Kato

External policies1

External policies

  • Trade policies

  • Foreign and Defence policies

  • Development policies

  • The External Dimension of Internal policy

  • The Consistency and Representational problems

Trade policy


  • Economic and Trading strengths of the EU

  • Basic principle of trading policy

  • Three types of agreements

  • Policy processes and difficulties for CCP

Introduction for eu trade affairs

Introduction for EU trade affairs

  • The member states act in common by CCT, CET, CCP for trading matters.

  • In trading forums the EU acts on most matters as a single bloc, which means that the EU is an extremely powerful world trading policy

  • CCT=Common Custom Tariffs

  • CET=Common External Tariff

  • CCP=Common Commercial Policy

Economic and trading strengths of the eu

Economic and trading strengths of the EU

  • 1, The combined GDP of the EU-27 in 2009 was about 13,000 billion euros, as compared with around 10,500 billion euros for the US.

  • 2, EU accounts for around one-fifth of world exports and imports (excluding internal EU trade), which is slightly more than the USA and much larger than Japan (which accounts for about 7 percent).

Economic and trading strengths of the eu1

Economic and trading strengths of the EU

  • 3, The EU market, with almost 500 million people (about one –seventh of the world’s population), is much larger than both the US market , which numbers just over 290 million people, and the Japanese market, which numbers around 127 million.

  • 4, Many of the countries and groupings with which the EU negotiations on trade matters are heavily reliant on the EU market for their exports due to the geographical or historical linkage such as former colonies.

Basic principle of trading policy

Basic Principle of Trading Policy

Liberal trading policy

=promoting the general liberalization of trade

1, the lowering of international customs duties

2, the removal of non-tariff barriers (非関税障壁) to trade.

Basic principle of trading policy1

Basic Principle of TradingPolicy

  • Case Study1: EPA negotiations between Japan and EU (Cited from 日経新聞)

    Japanese argument: wants EU to abolish 10% customs against cars from Japan or 14% customs against Televisions. In contrast, customs against Korean cars are being decreased gradually due to the FTA.( namely complaint against CET).

    EU argument:There are too many non-tariff barriers in Japan, which require European companies complicated procedures (namely Japan should deregulate its standard because the norms are much stricter than International ones.

Basic principle of trading policy2

Basic Principle of Trading Policy

  • However, opinions or profits relating with actions are not always consistent in EU

  • →another (behind liberal ideas) principle is ensuring that the consequences of this are not damaging for its member states.

  • Quiz1: Why is not the EU proactive for reducing the tariffs against Japanese cars despite the idea of liberal trading?

Basic principle of trading policy3

Basic Principle of Trading Policy

  • Case Study2:the battle between China and EU about anti-dumping duties. (Cited from Reuters 6/4, 2013)

  • Content:Solar Panels made in China is sold at radically cheap prices In the regions of EU. And EU decided to impose anti-dumping duties around 47% on Chinese Solar panels (It is as good as expeling this product from EU market).

  • Germany was against this decision→not all member states have same ideas on trading matters in many cases.

Three types of agreements

Three types of agreements

  • 1, Tradeagreements

  • 2, Trade and economic cooperation agreements

  • 3,Association agreements

Trade agreements

Trade agreements

  • These are based on Article 207 TFEU (may be preferential or non-preferential in kind)which obliges the EU member states to operate a common commercial policy(CCP)

  • But, they are all subject to the framework of trading rules within WTO, which prohibits preferential agreements unless waivers(giving up rights) are negotiated.

  • Lisbon Treaty strengthened the EU’s position in respect of negotiating trade agreements by explicitly listing services, intellectual property and foreign direct investment in Article 207 and giving them treaty status as exclusive Union competences (Liberal side)

Trading agreements

Trading Agreements

  • ~Reaction to trading agreements from member states

    From the early 1990s in particular the commission campaigned for the rapidly expanding trade areas of services and intellectual property to be located within the framework of Article 133.

    →But, due to the sensitivity of many matters in these areas , the member states preferred to interpret Article 133 narrowly and edged towards a broader approach only slowly.

Trading agreements1

Trading Agreements

  • ~As the result of this gap among the EU~

  • ☆Lisbon Treaty (protection side)

    so as to provide a measure of continuing national protection, unanimity (rather than the normal Article 207 provision of QMV was retained in the Council for the taking of decisions in especially sensitive areas.

Trade and economic cooperation agreements

Trade and economic cooperation agreements

  • The Treaty base of these agreements depends on their precise nature, but there is usually some combination of Article 207 and at least one other article.

  • The number of trade and cooperation agreements has increased enormously over the years and their scope has steadily expanded.

  • At their core are trade preferences of various kinds and usually also assistance of some sort from the EU to the other signatories.

Trade and economic cooperation agreements1

Trade and EconomicCooperation Agreements

  • In some cases, as with partnership agreements with states such as Georgia, Moldova and Ukraine free trade is an eventual objective

  • Political conditions (usually concerning human rights and democratic processes) have routinely been part of cooperation agreements.

Association agreements

Association agreements

  • These are based on Article 217 TFEU, which states that “The Union may conclude with one or more third countries or international organizations agreements establishing an association involving reciprocal rights and obligations, common action and special procedure”.

    →typically, association agreements include highly preferential access to EU markets, the prospect of a free trade are eventually being formed between signatories, economic and technical cooperation of various sorts, financial aid from the EU, political dialogue (in some cases) the prospect of the associated countries eventually becoming the member of EU

Association agreements1

Association agreements

  • There are currently three broad categories of negotiating association agreements with the EU.

  • 1, Countries that are seeking and have realistic prospects of EU membership.

  • 2, Mediterranean states that constitute part of the EU’s Mediterranean policy

  • 3, non-EU members of the European Economic Area(EEA)

Association agreements2

Association agreements

Countries seeking EU membership:

Turkey ,Western Balkans such as Albania, Bosnia-Herzegovina, Croatia, Macedonia, Montenegro and Serbia.

These western Balkan states are part of the EU’s Stability programme which includes association agreements for supporting internal reforms and development.

The agreements explicitly hold out the prospect of future EU membership and very much part of a pre-accession strategy that is designed to assist economic liberalization, market adjustment and political democratization.



  • Croatia will be a 28th EU member from 7/1

Association agreements3

Association agreements

  • Mediterranean States:

  • Mashreq and Maghreb countries are also included.

    These countries are part of the EU’s Mediterranean policy.

    The prospect of EU membership is not part of these association agreements

Association agreements4

Association agreements

  • Non-EUmembers of EEA

  • Iceland, Norway and Liechtenstein

  • The EEA is the deepest of the EU’s trading agreements in that it involves not only free trade in goods but also extends the EU’s other so-called freedoms (of services, capital, and people) to the three EEA states . =the removal of non-tariff barriers


Policy process and difficulties for ccp

Policy process and difficulties for CCP

  • Trade agreements used to be the responsibility of the Commission and the Council, but Lisbon Treaty brought the EP very much onto the decision making stage.t

  • 1, the adoption of legislative measures defining the framework for implementing the CCP were subject to the ordinary legislative procedure under which the EP is a co-decision maker with the Council.

  • 2,the EP was given significantly greater powers in respect of the negotiation and contraction of trade agreements , including needing to give its consent before agreements can be ratified

Policy process and difficulties for ccp1

Policy process and difficulties for CCP

  • The powers of and the relations between and within the EU institutions in connection with the making of trade agreements are such that tensions of various sorts by no means uncommon. Four areas cause particular difficulties.

  • 1, the power balance between the Council and the Commission can be very delicate, with the Council trying to ensure that the commission remains under its control and the commission wanting and needing enough manoeuvrability to enable it to be an effective negotiator.

Policy process and difficulties for ccp2

Policy process and difficulties for CCP

  • 2, the different national interests and preferences of the member states can create difficulties in the Council.

    →France, Italy, Spain and Greece tending to favour a measure of protectionism

    →Germany and the UK tending more towards trade liberalization

Policy process and difficulties for ccp3

Policy process and difficulties for CCP

  • 3, problems can arise within the Commission with disputes between Commissioners and between DGs about where policy responsibilities lie and who has a legitimate interest in particular external trade policies and agreements.

  • 4, until the Lisbon Treaty MEPs were dissatisfied that the Parliament had no automatic right to be consulted, let alone to insist that its views be considered, in connection with trade agreements.

Policy process and difficulties for ccp4

Policy process and difficulties for CCP

  • As for the making of cooperation and association agreements, there are three ways in which their decision-making processes differ from trade agreement decision-making processes.

  • 1, unanimity in the Council is more common, with it being a requirement for all association agreements and also for cooperation agreements that cover areas for which unanimity is required for the adoption of internal rules.

Policy process and difficulties for ccp5

Policy process and difficulties for CCP

  • 2, Because cooperation and association agreements have a broader coverage than trade agreements, more policy actors(in the commission, Council and EP) are necessarily involved.

  • For example, if a CFSP element is in an agreement the High Representative and the Commission’s External Relations DG are amongst those with an involvement , as is the EP’s Foreign Affairs Committee.

Policy process and difficulties for ccp6

Policy process and difficulties for CCP

  • 3, the wider range of policy issues included in cooperation and association agreements means there is more room for cross-policy ‘trading’ and haggling between EU actors

  • For example, the EP has long pressed the importance of the political dimensions of association and cooperation agreements and has often sought to pressurize the Commission and the Council to give these dimensions greater attention.

    (to be continued)

Policy process and difficulties for ccp7

Policy process and difficulties for CCP

  • Where it has been available, the EP’s power to block agreements has sometimes been threatened, and occasionally has been imposed, as a protest against insufficient attention being given to lack of democracy and/or abuse of human rights in states with which agreements are proposed.

  • So, the EP withheld its assets from the proposed EU-Turkey customs union which was framed within the association agreement due to concerns about the human rights situation in Turkey

Summary of trade policy

Summary of Trade policy

  • Trading policy is highly affected by the principle idea of liberalization (including political conditions such as democracy, human rights etc).

  • EU members take common actions for trade areas.

  • There are also conflicts between the EU institutions or member states because of differences of profits or values. (for example, liberalization vs protectionism)

  • Trade is a measure of exporting not only products but also EU’s ideal concepts.

Development policies

Development Policies

  • Policy Content

  • Policy Process

Introduction for development policy

Introduction for development Policy

  • The EU and its member states are major actors in international development policy.

  • Evidence1: the EU’s member states provide 45% of all international development aid while EU itself provides another 10%.

  • Evidence2: in the related area of international humanitarian aid, the EU’s member states provide about 25% of the total and the EU provides around 30%.

Policy content

Policy Content

  • EU development Policyhas ‘as its primary objective the reduction and, in the long term, the eradication of poverty’ (Article 208 TFEU). →please check the blue part of p394

  • Goals and principles underlying EU development policy should be based on respect for human rights, fundamental freedoms, democracy, and the rule of law.

Policy content1

Policy Content

  • Why is the EU proactive for assisting undeveloped countries?

  • Reason 1: historical in that some EU countries, notably France and UK, have long established ties with parts of the developing world as a result of their colonial past.

  • Reason2: moral in that EU governments believe something should be done about world poverty and hunger.

  • Reason3: economic in that developing countries account for 30 % of EU exports, and the EU is highly dependent on the developing world for products such as rubber, copper and uranium.

Policy content2

Policy Content

  • How does the EU assist developing countries?

    1, Generalized Preferences: 176 developing and vulnerable countries are given preferential trading access to the EU market in the form of the reduction and removal of tariffs.

    2, Food aid: Foodstuffs are sent to countries with serious food shortage.

    3, Emergency aid: Aid of an appropriate sort is made available to countries stricken by natural disasters and other crises.

    4, Aid to non-governmental organizations: The EU makes available aid to projects sponsored by non-governmental organizations in a number of developing world countries.

Policy content3

Policy Content

  • In addition to four general forms, EU provide assistance and aid to countries with which it has special relationships by contracting economic, trading, technical and financial cooperation agreements.

  • Cotonou Partnership Agreement , which links the EU with 79 African, Caribbean and Pacific(ACP) countries (most of which are countries with which at least one member state has historical links, most commonly as colonial power).

Policy content4

Policy Content

The Cotonou Agreement coutries with many of Lome’s core features , including: duty-free access to the market for virtually all ACP export; schemes to stabilize export earnings ; and the European Development Fund(EDF),which provides financial assistance for development projects in ACP countries.

So, do you prize the activity of the EU?

Policy content5

Policy Content

  • The issue of the change the Cotonon agreement involved: (the main changes are referred p395)

    1, many ACP states have not improved their economic independence and are not becoming properly integrated into the world economy.

    2, WTO pressures arising from the fact that the non-reciprocal and preferential nature of the trade aspects of Lome/Cotonou are incompatible with WTO rules.

Policy content6

Policy Content

  • Where is the Development aid financed from?

    1, EDF is financed by the EU budget (around 4% of budget). Half of this aid is used to provide financial assistance to non-ACP countries and about half is used for food aid purposes.

    2, EDF is funded by special contributions from the member states.

    What do you think about the financial source and the capacity of EU for Development Policy?

Policy content7

Policy Content

  • The issue of Development Policy:

    1, Strains have sometimes arisen between member states and between member states and EU institutions because there are different priorities and interests between the states.

    →French: neo-colonial. Italy: more commercial approach. UK: stresses good governance Nordic states: focus principally on the alleviation of poverty.

Policy processes

Policy processes

  • The most important players are the Foreign Affairs Council, the Commissioner for Development ,the Development DG, the EP Committee on Development .

  • Decision-making procedures→depends on the type of decision(so complicated).

    1, When the Council simply intending to issue a declaration or a resolution on a matter, it is not obliged to consult EP and can move at its own pace

    2, If a trade-only agreement is expected, Article 207 applies=QMV can be used in the Council and the EP has the power of consent.

    (There are much more cases)

Summary of development policies

Summary of Development Policies

  • The EU contributes to the matter of development (though there are many issues to improve).

  • EU development policy is conducted alongside national policies (Unlike with trade policy, EU does not have exclusive competence in the area of development policy)=the states are much more prominent in respect of financial assistance.

  • Development Policy is based on liberal principle of EU

Foreign and defence policies

Foreign and Defence Policies

  • Objections

    According to the Treaty on EU (TEU), “The Member States”shall

    ・support the Union‘s external and security policy actively

    ・work together to enhance and develop their mutual solidarity

Foreign and defence policies1

Foreign and Defence Policies

  • Resources

    ・The EU has 27 member states, including major powers (the U.K., France, Germany and Italy)

    ・The U.K. and France have nuclear weapons

    ・Two of the five permanent members of the UNSC (UK and France)

Foreign and defence policies2

Foreign and Defence Policies

  • Military Expenditures in 2010

Foreign and defence policies3

Foreign and Defence Policies

  • Problems

    1. EU ≠ a state

    2. Unwillingness to lose power

    3. Different views on Foreign issues

Foreign and defence policies4

Foreign and Defence Policies

  • Foreign Policy

    ・the EU was not so much influencial on political and security matters.

    →Unlike other policy areas, the member states were reluctant to adopt the normal decision-making process on foreign policy.

    ・However, this situation has been changing since the early 1990s.

Foreign and defence policies5

Foreign and Defence Policies

  • Foreign Policy

    1. The end of the Cold War

    International relations became highly fluid (not simply divided into two powers, East or West).

    →Increase of the significance of the EU to manage issues on European countries

Foreign and defence policies6

Foreign and Defence Policies

  • Foreign Policy

    2. German Unification

    Increased the significance of Germany and other East European countries

    →Not only economic but also foreign policy became needed

Foreign and defence policies7

Foreign and Defence Policies

  • Foreign Policy

    3. the Gulf Crisis

    Iraq invaded Kuwait in 1990 and a Coalition force led by the US was organized.

    But the EU member states reacted separately

    →Security and defence policies were kept away from foreign policy

Foreign and defence policies8

Foreign and Defence Policies

  • Foreign Policy

    4. The break-up of Yugoslavia

    The former Yugoslavia was divided and severe civil war happened.

    However, there was no clear, consistent or coordinated actions by the EU.

Foreign and defence policies9

Foreign and Defence Policies

  • Foreign Policy

    Former Yugoslavia

Foreign and defence policies10

Foreign and Defence Policies

  • Foreign Policy

    5. Treaties

    There are some treaties which made progresses in foreign security policies.

    e.g. The Amsterdam treaty made QMV available for some policy decision-making.

Foreign and defence policies11

Foreign and Defence Policies

  • Foreign Policy

    Problem→Foreign policy is sometimes viewed and used as an additional mechanism for seeking more national interests.

Foreign and defence policies12

Foreign and Defence Policies

  • Defence Policy

    Inter-state cooperation is difficult in security and defence area.

    1. Security and defence are closely related to national sovereignty.

    2.The difference of security and defence capabilities of the member states

Foreign and defence policies13

Foreign and Defence Policies

  • Defence Policy

    3. The varying willingness to use armed force

    4. Different attitudes toward commitment between member states

    5. The relationships with NATO and the U.S. vary from country to country

Foreign and defence policies14

Foreign and Defence Policies

  • Defence Policy

    Therefore, the United States (and NATO) took the policy lead in dealing with conflicts in the break-up Yugoslavia and Balkans.

Foreign and defence policies15

Foreign and Defence Policies

  • Defence Policy

    In December 1998, at a Franco-British summit the two countries called for a clearer and stronger security capability within the NATO framework.

    →Since this summit, EU security and defence policies advanced rapidly.

Foreign and defence policies16

Foreign and Defence Policies

  • Common Security and Defence Policy

    1.It is limited to “the Petersberg tasks”, which are focused on crisis management, peace-keeping and humanitarian tasks.

    2.It is located within NATO and committed to transatlantic alliance.

    3.It is a clear intergovernmental based policy.

Foreign and defence policies17

Foreign and Defence Policies

  • EU Security and Defence Policies

    1. Defence Policy → ×

    2.Soft security policy →focuses on the promotion of peace and security, uses no military power e.g. political cooperation

    3.Hard security policy → uses military capability for conflict resolution e.g. the Petersberg tasks

Foreign and defence policies18

Foreign and Defence Policies

  • Policy aims

    Goals…Promoting peace, democracy, liberty, and human rights

    A particular focus…Building cooperative and stable relations with neighboring states

Foreign and defence policies19

Foreign and Defence Policies

  • The European Neighborhood Policy

    ・Launched in March 2003

    ・Aim→Develop the EU’s bilateral relations with former Soviet states and north African states

    BUT…The ENP focus is too broad to be effecticve.

Foreign and defence policies20

Foreign and Defence Policies

  • Obstacles

    ・Reluctance to over-develop security and defence policies

    ・Member states divided

    →e.g. 2003 US invasion of Iraq

Foreign and defence policies21

Foreign and Defence Policies

  • Obstacles

    ・The EU is heavily dependent on US/NATO assistance to deal with conflicts.

    ・Without high expenditure on security and defence, the major military resources will be more reliant on them.

    ・However, member states cut off their military budget.

Foreign and defence policies22

Foreign and Defence Policies

  • Examples of Actions Adopted

    ・Appointment of the European Union special representative in Kosovo

    ・The launching of the EU military operation in Somalia to protect ships from pirates

    ・A further contribution to the conflict settlement in Georgia/South Ossetia

Foreign and defence policies23

Foreign and Defence Policies

  • Georgia/South Ossetia

Foreign and defence policies24

Foreign and Defence Policies

  • Policy processes

    ・The European Council

    →Responsible for the overall direction of the Common Foreign and Security Policy (CFSP)

    →Advocates current concerns about foreign policy

Foreign and defence policies25

Foreign and Defence Policies

  • Policy processes

    ・The Council of Ministers (The Foreign Affairs Council)

    →The main decision-making body of the CFSP

    →Unanimity mostly required, but QMV available for operational matters

Foreign and defence policies26

Foreign and Defence Policies

  • Policy processes

    ・The High Representative of the Union for Foreign Affairs and Security Policy

    →Complicated position (belonging to both the Commission and the Council)

    →Serve as a proposer, promoter, facilitater and implementer, but not an independent decision-maker

Foreign and defence policies27

Foreign and Defence Policies

  • Policy processes

    ・The Commission

    →The intergovernmental nature

    →Much weaker in foreign policy area than other policies

Foreign and defence policies28

Foreign and Defence Policies

  • Policy processes

    ・The European Parliament

    →Limited to advisory, monitoring foreign policy

    →Serving as a consultant

Foreign and defence policies29

Foreign and Defence Policies

  • Policy processes

    ・Embassies, delegations and missions

    →The EU has few external delegations (only 5 delegates to international organization).

    →The CFSP wants them to play more significant roles on the world stage.

Foreign and defence policies30

Foreign and Defence Policies

  • Summary

    ・Because the EU is not a state, it is difficult to play an important role on security and defence policy.

    ・Also, policy processes of foreign policy is not well-organized.

    ・But EU has been making progress.

The consistency and representational problem

The Consistency and Representational Problem

  • Examples

    1.The EU’s inability to give a decisive reaction to Kosovo’s declaration of independence from Serbia in mid-2008

    2.The lack of a concerted EU position on how to react to Israel’s invasion of Gaza in December 2008

The consistency and representational problem1

The Consistency and Representational Problem

  • Reasons

    1.The great spread of the EU external relation’s interests and activities

    2.The conflicting orientations and preferences of member states on many policy issues

The consistency and representational problem2

The Consistency and Representational Problem

  • Therefore…

    The convening at different levels and inter-institution meetings are essential.

The consistency and representational problem3

The Consistency and Representational Problem

  • Representational problem

    The EU’s representation can vary according to circumstances

    Political issues→No one wants to be the representative of the European Union

    Financial issues→Everybodywants to

The external dimension of internal policies

The External Dimension of Internal Policies

  • Many of the EU’s internal policies have significant external dimensions


    Transport, energy, and environmental policy

    ・Fully coordination among member states is required.

The external dimension of internal policies1

The External Dimension of Internal Policies

  • The EU’s success

    ・In environmental policy areas, the EU is influential.

    →The EU is well prepared for external negotiationsby EU coordination meetings when necessary.

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