Contemporary trade policy is increasingly framed in geo-strategic terms. But how much of that rhetoric is reflected in actual policy choices by the EU or its trading partners? This book provides a first systematic study of the broader international context in which EU trade agreements are conceived, negotiated, and designed. Building on a refined conceptualisation of geo-economics, the book develops a cogent framework that combines insights from scholarship on the design of free trade agreements with ideas from foreign policy analysis. Empirically, the analysis focuses on the relations between the EU and the Asia-Pacific. Following the United States’ pivot to Asia and the EU’s Global Europe strategy, China’s backyard has become the main arena in which global powers’ geo-economic strategies overlap. Building on a series of case-studies, combining the perspectives from the EU and its trading partners, the book shows that the rhetoric of geo-economic competition is yet to catch up with the actual negotiation and design of free trade agreements. This volume will be of great interest to scholars, students and practitioners who want to gain a holistic understanding of contemporary trade negotiations.
Author(s): Johan Adriaensen, Evgeny Postnikov
Series: The European Union in International Affairs
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 385
City: Cham
Preface
Contents
List of Contributors
List of Figures
List of Tables
Part I Introduction
1 Geo-economic Motives and the Negotiation of Free Trade Agreements: Introduction
Introduction
Geo-economics and the IPE of Trade
Systemic Approaches
Power in Trade Negotiations
Analyzing the Geo-economic Dimension in FTA Negotiations
Selecting a Negotiating Partner
Bargaining Power During Negotiations
Harnessing Externalities in the Design of FTAs
Research Design and Structure of the Book
References
Part II A Geo-Economic Trade Environment
2 The Politics of FTAs in Asia: The Role of China and Implications for EU Trade Policy
Introduction
The Strategic Context
An ‘Assertive’ China
China’s Conflict Behavior
The Belt and Road Initiative
EU Trade Policy Toward Asia
Trade Interdependence Between the EU and China
EU Trade Agreements with Asian Countries
China’s FTAs with Asian Countries
Comparing EU and China’s Trade Agreements
Challenges and Opportunities for EU Trade Policy
The EU–China Comprehensive Agreement on Investment
Conclusion
References
3 US Trade Policy: Japan vs. China, from Politically Economic to Existential
Introduction
US Response to Japan’s Economic Ascent
Continuity in the US’ Trade Policy Toward Japan and Toward China
Dissimilarities in US Trade Policy Toward China as Compared with Japan
The United States as a Geostrategic Trade Power
Conclusion
References
4 Global Value Chains and EU–East Asia Trade: An Antidote for Geo-Economic Competition?
Introduction
The Liberal Thesis
Two Alternative Perspectives: Geo-Economics and Fair-Trade
Geo-Economics and Global Value Chains
Fair Trade and Global Value Chains
EU–East Asia Trade Agreements as Tests for These Perspectives
EU Discourse on Global Value Chains and Trade Agreements with East Asia
Key Revealed Preferences in EU–East Asia Trade Agreements
Conclusions
References
Part III Designing Geo-Economic Trade Agreements
5 Intellectual Property Rights. EU and US Initiatives in the Asia–Pacific: Competition, Coordination or Duplication?
Introduction
Treaty Making
The Use of Treaty Making: Countries
The Use of Treaty Making: IPR Issues
Coercion
The Use of Coercion: Countries
The Use of Coercion: IPR Issues
Socialization
The Use of Socialization: Countries
The Use of Socialization: IPR Issues
Conclusion
References
6 Most-Favoured Nation Clauses: A Double-Edged Sword in a Geo-Economic Era
Introduction
The Origins and Changing Motives Behind MFN
MFN as Shaped by Mercantilist and Free Trade Ideas
The Multilateral High Water Mark of MFN
The Return of Geo-economic Motives: Contemporary Use of MFN in FTAs
Regional and Issue-Specific Variants of MFN-Design and Their Strategic Potential
Increasing Use of MFN Clauses
Uneven Regional Distribution
Variants of MFN in EU-Asia Trade Relations and Strategic Implications
The Implications of MFN Clauses: Not so Strategic After All?
Conclusion
References
7 Product Regulations: You Can Drive My Car, Otherwise Let It Be
Introduction
Regulations, Trade, and the Potential for Regulatory Competition and Conflict
The EU’s Practice of Regulatory Cooperation
Not Exporting Rules, Except…
Power or Preferences: Explaining the EU’s Approach to Regulatory Cooperation
The Implications for Others: Very Little Prospect for Agreement Clash
Conclusions
References
8 Rules of Origin: Bridging Regions to Withstand Turbulent Times
Introduction
Overview of ROOs
Role of ROOs
Main Criteria for ROOs
Different ROOs Templates
Effects of ROOs on Third Parties
Non-Restrictive ROOs
Restrictive ROOs
NAFTA ROO for Ketchup
Product-Specific ROOs in the PEM Convention
USMCA ROOs for Passenger Vehicles
Bridging Regions with ROOs
Conclusion
References
9 Sustainable Development in EU–Asia Trade Relations
Introduction
The Design of Sustainable Development Chapters in FTAs
Explaining the Soft Approach: Irrelevance of International (F)actors (I)
Explaining Variation in EU–Asia Agreements: Irrelevance of International (F)actors (II)
Conclusion
Annex
References
Part IV Case Studies
10 EU and South Korea: A Model Example for Foreign Trade Policy Relations?
Introduction
Negotiations in the Shadow of KORUS
EU Perspectives
Korean Perspectives
KOREU: The Negotiation and Agreement Design
The Negotiation Process
The Agreement Design
Assessment
Effects on Trade and Investment
Economic and Political Assessment
Conclusion
References
11 Australia and the EU: From Trade Tensions to FTA Negotiations
Introduction
The Current EU–Australia Trade Relationship
Geo-economic Influences on Trade Partner Selection
FTA Negotiations and the Design of the FTA
Conclusion
References
12 EU–Singapore Negotiations: Overlapping Negotiations, Conflicting Interests?
Introduction
Conditionality and EU Trade Policy
EU–Singapore Negotiations in an International Context of Parallel and Overlapping Negotiations
Negotiation Dynamics: Trading off Values for Commercial Interests
Negotiated Outcomes: Results and Comparison
Conclusion
References
13 The Vietnam-European Union Free Trade Agreement: Victim of Changing Times?
Introduction
Geo-Strategic Motives for Launching and Concluding the EVFTA
Vietnam’s Motivations
EU’s Motivations
Negotiation Challenges and Their Impact on Agreement Design
Government Procurement
Human Rights
Sustainable Development
Challenges in the Ratification Process
Conclusion
References
14 EU-Indonesia Trade Relations
Introduction
Geopolitical Considerations
Commercial Interests (EU)
Commercial Interests (Indonesia)
Regulatory Issues
Palm Oil and EU Environmental Regulations
Indonesia’s Reaction to the RED II
Conclusion
References
Part V Conclusion
15 Geo-Economic Motives in EU FTA’s with the Asia–Pacific: More Discourse Than Design?
Introduction
Beyond Rhetoric? Assessing the Policy Impact of Geo-Economic Motives
Setting the Scene
Designing Trade Agreements to Meet a Geo-Economic Purpose
Tracing Geo-Economic Motives in Bilateral Trade Relations
Contributions to the Literature
Emerging Research Agenda
References
Index
