The New Europe

EU External Economic Relations

Based on Chpt 14 in Cini by Michael Smith

External Economic Relations

Longest area of joint action among EU members

e.g. Common Commercial Policy

also, development assistance and international monetary policy

EU as Global Economic Power

Tensions and contradictions in External Economic Policies

Institutionally

The Commission plays central role

Initiates, conducts policy in Common Commercial Policy

e.g. “Welch’s Waterloo”

in the WTO

Microsoft Competition Case

Development Assistance

An area of “mixed competence,”

i.e., powers shared by EU and national governments

so some aid is bi-lateral, some from EU

3 Major Agreements on

Yaounde Agreement (1963, 1969)

Reciprocal trade preferences between EEC states and former colonies

European Development Fund

Joint Council of Ministers, Parliamentary Assembly, Committee of Ambassadors

Lome Agreement (1975, 1979, 1984, 1990, 1995)

Added former British colonies

Africa, Caribbean, Pacific (ACP) Group formed at Secretariat

1974: 46 ACP countries

1995: 68 ACP countries

Non-reciprocal trade preferences

Price supports for agricultural (1979) and mineral (1984) exports

Cotonou Agreement (2000 for 20 years)

ACP Countries: 78 (as of 2006)

Multi-lateral agreemnts supplemented by bilateral or minilateral Economic Partnership Agreements

**Conditionality: aid linked to democratic governance and protection of human rights

EU Donor Atlas

Countries where EU supplies 75% or more of development aid:

Argentina

Barbados

Chile

Costa Rica

Equatorial Guinea

Gabon

Guinea Bissau

Jamaica

Mayotte

Montserrat

St. Helena

Suriname

Swaziland

Tunisia

Turkey

Uruguay

Wallis & Futuna

The Role of EU as a Global Economic Power

Is the EU an Economic Super Power?

Give some examples of EU Economic Power

Why is it often not recognized as such?

Global Economic Superpower: YES!

Examples: GDP

Chapter from Reid “L’Europe Qui Gagne”

Development Assistance (Smith, 231)

Bi-lateral and multi-lateral

EU 27 Total (2007) 68.1 bln

US 22.1 bln

Japan 11.9 bln

Why not recognized as economic power?

Nature of MNCs, global economy

Quiet, don’t advertise it

EU amalgamates power, disguises it

Tensions/contradictions?

Between the economic interests of “Europe,” European based MNCs

And promoting the interests/development of the developing world

Prosperity “for all” or for Europe

Does Europe have to choose? Can it pursue both goals? Has it? How?