Foreign commercial policy represents a major domain of European integration and an exclusive policy competence for the European Union. The strategy, focus and practical approach of this EU trade policy has been continuously adapted to the new circumstances in an ever more globalised world economy. Thus, the EU uses its foreign trade policy not just for mere economic ends but also as a tool to strengthen its global political influence.
Having been a champion of multilateral trade negotiations in the framework of the World Trade Organisation (WTO) throughout the 1990s, the has EU changed this strategic orientation by the mid-2000s shifting its trade policy focus from a multilateral to a bilateral strategy and initiated preferential free trade agreements (FTA) with countries and regions all over the world. Among them, the one with the largest size was the Transatlantic Trade and Investment Partnership (TTIP) with the United States of America, launched in 2013.
Given the huge importance of the EU as a player in global trade, it seems relevant to examine from a political scientific perspective what have been the main reasons, drivers and motivations behind this enormous policy shift. I argue that external factors, domestic interests and institutional dynamics have collectively contributed to the reorientation of EU trade policy from multi- to bilateralism.
I will test this hypothesis by means of three theoretical approaches: neorealism as a systemic theory, liberalism as a theory with a domestic focus and institutionalism to examine the role of the most important EU institution in trade policy, the European Commission.
In order to get a more profound analysis of the main actors and motivations as driving forces of EU trade policy, I will furthermore use a case study on the, both in ambition and size, unrivalled bilateral Transatlantic Trade and Investment Partnership as it, due to its sheer economic and political impact on the both partners involved but also on the rest of the world, provides best significant insights of processes on all three levels of analysis of this paper.
In a nutshell, the global power shift for the benefit of emerging powers and to the detriment of Europe in combination with strong economic interest groups within the EU seeking for market access all over the world as well as self-interests, norms and processes within the European Commission have altogether contributed to the change of course in EU trade policy towards bilateralism.
Table of Contents
1. The bilateral shift in EU trade policy, TTIP and its scientific relevance
1.1 Research topic, relevance and methodology
1.2 EU trade strategy: from bilateralism to multilateralism and back
1.3 TTIP: the climax of EU trade bilateralism?
2. Neorealism – a structural approach to international relations with states as unitary actors
2.1 Terms, assumptions and key actors of neorealism
2.2 A neorealist approach to the bilateral shift of EU trade policy
2.3 A neorealist explanation of TTIP
3. Commercial Liberalism – Economic interests and preferences as the main driver of international politics
3.1 Terms, assumptions and key actors of liberalism
3.2 A liberal approach to the bilateral shift of EU trade policy
3.3 A liberal explanation of TTIP
4. Institutionalism – Institutions as key actors with self-interest and ‘path-dependency’
4.1 Terms, assumptions and key actors of Institutionalism
4.2 An institutionalist approach to the bilateral shift of EU trade policy
4.3 An institutionalist explanation of TTIP
5. Conclusion
5.1 Theoretical Conclusions
5.2 Empirical Conclusions
5.3 Broader theoretical implications and policy recommendations
Research Objectives and Themes
This thesis examines the fundamental reorientation of European Union trade strategy, specifically the transition from a long-standing commitment to multilateralism within the WTO framework to a more aggressive pursuit of bilateral preferential trade agreements, exemplified by the Transatlantic Trade and Investment Partnership (TTIP). By employing a multi-theoretical framework, the research seeks to identify the drivers of this shift, evaluating the explanatory power of neorealist, liberal, and institutionalist approaches.
- The influence of global power shifts and emerging economies on EU trade strategy.
- The impact of domestic economic interest groups and lobbying on foreign trade policy.
- The institutional autonomy and self-interest of the European Commission in trade negotiations.
- The role of TTIP as a defensive and offensive geopolitical instrument for the EU.
Excerpt from the Book
1.1 Research topic, relevance and methodology
Commercial policy has been an important element of European external action since the end of the establishment of the European Economic Community in the 1950ies. Trade policy therefore also represents a major domain of European integration, some call it its “raison d’être”, after the Second World War and is today one of the rare political fields where the European Union exerts treaty-based exclusive competence. The way EU trade policy is shaped has oscillated significantly during the last decades but in an ever more globalised and interconnected world economy where Europe seeks to play a key role, it has become a vital question that will partly define Europe’s future place in the world.
During the 2000s, the EU “diametrically” changed its strategic orientation by shifting its trade policy from a multilateral focus in the framework of the so-called Doha Round embedded in the World Trade Organisation (WTO) to a bilateral focus by initiating preferential free trade agreements (FTA) with countries and regional blocks all over the world.
Given the huge importance of the EU as both a “power in trade” but also a “power through trade”, it seems relevant to examine from a political scientific perspective what have been the main reasons, drivers and motivations behind this enormous policy shift. I argue that external factors (the power shift in the international system of states away from previously dominant ‘Western’ powers to emerging countries, especially China), domestic interests (in particular expected welfare gains of economic interest groups in the EU) and institutional dynamics (the EU Commission as the most important institution of European trade policy) have collectively contributed to the reorientation of EU trade policy from multi- to bilateralism.
Summary of Chapters
1. The bilateral shift in EU trade policy, TTIP and its scientific relevance: Introduces the shift from multilateralism to bilateralism in EU trade and outlines the methodology for analyzing this trend through three theoretical lenses.
2. Neorealism – a structural approach to international relations with states as unitary actors: Analyzes the policy shift as a reaction to global power transitions and the need for the EU to rebalance its position in an anarchic system.
3. Commercial Liberalism – Economic interests and preferences as the main driver of international politics: Explores how domestic business interest groups successfully lobbied the European Commission to abandon blocked multilateralism in favor of bilateral market access.
4. Institutionalism – Institutions as key actors with self-interest and ‘path-dependency’: Examines the role of the European Commission as an autonomous actor that utilizes trade policy to strengthen its institutional position and leadership.
5. Conclusion: Synthesizes findings by arguing that the bilateral shift is a complex result of systemic pressures, domestic interest-group influence, and institutional self-interest, all of which are mutually intertwined.
Keywords
Trade Policy, European Union, Bilateralism, Multilateralism, Neorealism, Liberalism, Institutionalism, Transatlantic Trade and Investment Partnership, Global Governance, European Commission, Economic Interests, International Relations, Lobbying, Market Access, Commercial Policy.
Frequently Asked Questions
What is the core subject of this research paper?
The paper investigates why the European Union shifted its trade policy strategy from a primary focus on multilateral agreements to a more aggressive pursuit of bilateral free trade agreements since the mid-2000s.
What are the primary theoretical frameworks used?
The author uses neorealism to analyze systemic power shifts, commercial liberalism to understand the influence of domestic interest groups, and historical institutionalism to examine the role of the European Commission.
What is the main objective of the thesis?
The objective is to determine the main drivers and motivations behind the EU's trade strategy shift by testing how external factors, domestic interests, and institutional dynamics contributed to the initiation of the Transatlantic Trade and Investment Partnership (TTIP).
What research methodology is employed?
The study uses a qualitative, multi-theoretical approach combined with a single case study of the TTIP negotiations to draw conclusions about the broader strategic shift of the European Union.
What does the main body of the work cover?
The chapters are divided into theoretical analysis sections, followed by the application of those theories to both general EU trade policy and the specific case of TTIP, concluding with a theoretical and empirical assessment.
Which keywords best characterize this work?
Key terms include Trade Policy, European Union, Bilateralism, Multilateralism, Neorealism, Liberalism, Institutionalism, and the Transatlantic Trade and Investment Partnership (TTIP).
How does neorealism explain the shift toward bilateralism?
Neorealism interprets the shift as a necessary reaction to the relative decline of Western economic power and the emergence of other powers, forcing the EU to secure its influence through strategic bilateral alliances.
What role does the European Commission play in this shift according to institutionalism?
Institutionalism portrays the Commission as an autonomous actor with its own bureaucratic self-interests, using its exclusive competence in trade policy to establish leadership and strengthen its position within the EU governance framework.
- Quote paper
- Benedikt Weingärtner (Author), 2017, The EU's trade strategy shift from multilateralism to bilateralism. A case study on TTIP, Munich, GRIN Verlag, https://www.grin.com/document/369434
