11stst Global Youth Forum 31 July 2009 Global Youth Forum 31 July 2009

The European Union’s External The European Union’s External Relations – EU in the worldRelations – EU in the world

By Dr Yeo Lay Hwee,By Dr Yeo Lay Hwee,Director, EU CentreDirector, EU Centre

Contrasting views of the EUContrasting views of the EU

““Global governance relies heavily on regional Global governance relies heavily on regional governance and the European Union (EU) is the governance and the European Union (EU) is the most successful model in that respect, contributing most successful model in that respect, contributing significantly to the world’s stability and directionsignificantly to the world’s stability and direction .” - - - .” - - - - - - - Pierre Buhler (French Ambassador to Singapore)Pierre Buhler (French Ambassador to Singapore) in “ in “European European Union: a force for good in a troubled world” (ST 18 Dec 08)Union: a force for good in a troubled world” (ST 18 Dec 08)

““Weak, divided, incoherent, hypocritical and infuriating Weak, divided, incoherent, hypocritical and infuriating – that’s how you hear the EU described privately in – that’s how you hear the EU described privately in Beijing and Washington. The events of this first Beijing and Washington. The events of this first week of 2009 suggest that the critics are entirely week of 2009 suggest that the critics are entirely right.”right.” ------ ------ Timothy G Ash (Professor of European Studies, Timothy G Ash (Professor of European Studies, Oxford University)Oxford University) in “ in “Time to shape up” (ST 9 Jan 09)Time to shape up” (ST 9 Jan 09)

The European Union: 497 million people The European Union: 497 million people –– 27 countries 27 countries

Member states of the European Union

Candidate countries

Reality check – Facts & FiguresReality check – Facts & Figures

27 member states27 member statesPopulation of 497 million (cf: US – 301 m; Japan Population of 497 million (cf: US – 301 m; Japan – 128 m– 128 mGDP of the EU (2006) – 10.793 trillion € (cf: US GDP of the EU (2006) – 10.793 trillion € (cf: US – 10.035; Japan – 3.676)– 10.035; Japan – 3.676)30% of world GDP30% of world GDPPer capita GDP (2007) – 24,700 €Per capita GDP (2007) – 24,700 €EU (Community & its member states) – provides EU (Community & its member states) – provides 60% of all development aid, 93 € per citizen (cf: 60% of all development aid, 93 € per citizen (cf: Japan – 44 €; US – 53 €Japan – 44 €; US – 53 €EU’s trade with the world accounts for a fifth of EU’s trade with the world accounts for a fifth of global trade (close to 20%)global trade (close to 20%)

The EU of Three pillarsThe EU of Three pillars

The European Union

The Treaties

European Community

domain (most of common policies)

Common foreign and

security policy

Police and judicial

cooperation in criminal

matters

The EU as an economic powerThe EU as an economic power

The EU is above all an economic power The EU is above all an economic power and trade provides the foundation of its and trade provides the foundation of its actorness. Underlying this presence is the actorness. Underlying this presence is the Single Market of 497 million consumers Single Market of 497 million consumers with an aggregate GDP of close to 11 with an aggregate GDP of close to 11 trillion €. Also the world’s biggest trading trillion €. Also the world’s biggest trading power. Despite all the shifts in the volume power. Despite all the shifts in the volume and composition of merchandise trade, its and composition of merchandise trade, its share of global imports and exports has share of global imports and exports has remained relatively stable at around 20%.remained relatively stable at around 20%.

The EU as an economic power (cont.)The EU as an economic power (cont.)

Because the EU was originally built around economics Because the EU was originally built around economics and trade, sovereignty was pooled and exercised in and trade, sovereignty was pooled and exercised in common in these areas. The Community method common in these areas. The Community method prevails in these areas and most decisions are taken by prevails in these areas and most decisions are taken by QMV. The Union as a whole (represented by the EU QMV. The Union as a whole (represented by the EU Commissioner for Trade) acts on behalf of the member Commissioner for Trade) acts on behalf of the member states when it comes to trade issues. The EU also acts states when it comes to trade issues. The EU also acts as a gatekeeper to the Single Market. In the area of as a gatekeeper to the Single Market. In the area of external economic relations, the EU controls trade external economic relations, the EU controls trade matters and market access.matters and market access.In external economic relations, the goals of objectives of In external economic relations, the goals of objectives of the EU are:the EU are:

- Eliminate barriers and restrictions to free trade;Eliminate barriers and restrictions to free trade;- Ensure a free and fair global trading regime;Ensure a free and fair global trading regime;- Contribute to development of world trade.Contribute to development of world trade.

EU in Development Aid and Humanitarian AssistanceEU in Development Aid and Humanitarian Assistance

The EU (ie the Community with the 27 member states) is The EU (ie the Community with the 27 member states) is the world’s largest donor of both development aid and the world’s largest donor of both development aid and humanitarian assistance.humanitarian assistance.The Community itself is the 5The Community itself is the 5thth largest aid donor. largest aid donor.EU has developed a distinctive approach to development EU has developed a distinctive approach to development cooperation – a value-based approach associated with cooperation – a value-based approach associated with increasingly pro-active attempts to promote democracy, increasingly pro-active attempts to promote democracy, rule of law and human rights, through a range of rule of law and human rights, through a range of conditionalities applying both to trade and aid.conditionalities applying both to trade and aid.In its development cooperation goals and objectives, the In its development cooperation goals and objectives, the EU aimed to foster:EU aimed to foster:

- Sustainable economic and social development of Sustainable economic and social development of developing countries and their integration into the world developing countries and their integration into the world economy;economy;

- Campaign against poverty;Campaign against poverty;- Development and consolidation of democracy, rule of Development and consolidation of democracy, rule of

law and respect for human rightslaw and respect for human rights..

External Economic Relations / Development CooperationExternal Economic Relations / Development Cooperation

Community method prevailsCommunity method prevailsMost decisions by QMVMost decisions by QMVCouncil and Commission works in tandem in formulation Council and Commission works in tandem in formulation and implementation of common external commercial and implementation of common external commercial policy. Commission initiates and Council decides. All policy. Commission initiates and Council decides. All decisions are usually based on recommendations made decisions are usually based on recommendations made by Commission to the Council.by Commission to the Council.Day to day management of external economic policy / Day to day management of external economic policy / development cooperation entrusted to the Commission development cooperation entrusted to the Commission (different DGs – Trade / External Relations / (different DGs – Trade / External Relations / Development)Development)Institutional influences from the Parliament limited – Institutional influences from the Parliament limited – approval needed on some of the external agreements, approval needed on some of the external agreements, budget.budget.

From EPC to CFSPFrom EPC to CFSP

EUROPEAN POLITICAL COOPERATIONEUROPEAN POLITICAL COOPERATION::Policy coordination / cooperation in the political, security and diplomatic Policy coordination / cooperation in the political, security and diplomatic

arena has been one of the most difficult – WHY?arena has been one of the most difficult – WHY?(1)(1) Issues of national sovereignty;Issues of national sovereignty;(2)(2) Has to accommodate different historical traditions and collective Has to accommodate different historical traditions and collective

consciousnessconsciousness

Development of EPC (from 1970-1992)Development of EPC (from 1970-1992)- Strictly inter-governmentalStrictly inter-governmental- Grew in slow, pragmatic way rather than in a formal mannerGrew in slow, pragmatic way rather than in a formal manner- Two events in the 1980s (Falklands War and Martial law in Poland) Two events in the 1980s (Falklands War and Martial law in Poland)

provided an opportunity for some sort of political visibility to EPCprovided an opportunity for some sort of political visibility to EPC- Intensification of debates on future direction of European integrationIntensification of debates on future direction of European integration- Events in Central and Eastern Europe and Soviet Union in late Events in Central and Eastern Europe and Soviet Union in late

1980s served as a catalyst for the establishment of a common 1980s served as a catalyst for the establishment of a common foreign policyforeign policy

From EPC to CFSP (Cont.)From EPC to CFSP (Cont.)

From EPC to CFSPFrom EPC to CFSP::- Because of the momentous changes taking place in Europe with Because of the momentous changes taking place in Europe with

the end of Cold War and the completion of Single Market in 1992, the end of Cold War and the completion of Single Market in 1992, the TEU (Maastricht Treaty) turned the European Community into the TEU (Maastricht Treaty) turned the European Community into European Union with three pillars, of which CFSP is one of them.European Union with three pillars, of which CFSP is one of them.

- Though still inter-governmental, the CFSP does represent a Though still inter-governmental, the CFSP does represent a further step toward making foreign policy a genuine common further step toward making foreign policy a genuine common endeavourendeavour

TheTEU (Maastricht treaty) defines the goals of CFSP as follows –TheTEU (Maastricht treaty) defines the goals of CFSP as follows –(1)(1) To safeguard the common values, fundamental interests and To safeguard the common values, fundamental interests and

independence of the Union;independence of the Union;(2)(2) To strengthen the security of the Union and its member states in To strengthen the security of the Union and its member states in

all ways;all ways;(3)(3) To preserve peace and strengthen international securityTo preserve peace and strengthen international security(4)(4) To promote international cooperationTo promote international cooperation(5)(5) To develop & consolidate democracy and the rule of law, respect To develop & consolidate democracy and the rule of law, respect

for human rightsfor human rights

Supra-nationalism versus Inter-governmentalismSupra-nationalism versus Inter-governmentalism

Supranationalism is a method of decision-making in Supranationalism is a method of decision-making in international organisations where power is held by international organisations where power is held by independent appointed officials / representatives elected independent appointed officials / representatives elected by the legislature or people of the member states. by the legislature or people of the member states. Member states still have power and a say over Member states still have power and a say over decisions, but they must share this power with other decisions, but they must share this power with other actors. Decisions are usually made by majority votes.actors. Decisions are usually made by majority votes.Inter-governmentalism – two step bargaining process – Inter-governmentalism – two step bargaining process – first, national interests and preferences are determined first, national interests and preferences are determined through the domestic process; then states bargain within through the domestic process; then states bargain within the EU to try to realise these preferences. Outcome the EU to try to realise these preferences. Outcome reflects the relative power of the member states. States reflects the relative power of the member states. States will cooperate with each other to pursue their own will cooperate with each other to pursue their own interests and will reach agreement only if they are interests and will reach agreement only if they are beneficial and in conformance to its interests.beneficial and in conformance to its interests.

Idea of EU as a normative powerIdea of EU as a normative power

Setting norms and ethical standards:Setting norms and ethical standards:

The EU sees itself as a model of regional The EU sees itself as a model of regional integration and democratic peace;integration and democratic peace;

It promotes in its foreign policy a particular It promotes in its foreign policy a particular perspective of values such as democracy and perspective of values such as democracy and human rights, multilateralism and free trade.human rights, multilateralism and free trade.

Human rights in EU foreign policy is pursued Human rights in EU foreign policy is pursued through conditionalities in Trade and through conditionalities in Trade and Cooperation agreements and other diplomatic Cooperation agreements and other diplomatic and economic instrumentsand economic instruments

Group to Group dialogueGroup to Group dialogue

Relations between regional groupings Relations between regional groupings (eg EU-ASEAN; EU-SAARC)(eg EU-ASEAN; EU-SAARC)

Group-to-group dialogue began to take Group-to-group dialogue began to take shape in the 1970s in response to the shape in the 1970s in response to the enlargement of the European Community enlargement of the European Community and the institutionalisation of EPC and the institutionalisation of EPC

EC-ACP dialogue in 1975 (Lome EC-ACP dialogue in 1975 (Lome Convention)Convention)

But group-to-group dialogue really took off in But group-to-group dialogue really took off in the 1980s.the 1980s.

Why EC/EU pursue Group to Group dialogue?Why EC/EU pursue Group to Group dialogue?

Group to group relations are a promising strategy to Group to group relations are a promising strategy to bring about “consistency” in EU’s international profile?bring about “consistency” in EU’s international profile?Group to group relations are the natural answer to Group to group relations are the natural answer to managing global inter-dependence?managing global inter-dependence?Group to group relations are the result of the internal Group to group relations are the result of the internal logic of the EU (the dialogue of the EU with other groups logic of the EU (the dialogue of the EU with other groups of states confirms the general trend towards constantly of states confirms the general trend towards constantly enlarging the scope of activities carrying the European enlarging the scope of activities carrying the European label) ?label) ?Group to group dialogue a practical way to cope with Group to group dialogue a practical way to cope with increasing numbers of dialogue.increasing numbers of dialogue.EU encourages regional cooperation. Group to group EU encourages regional cooperation. Group to group dialogues are seen as appropriate means to encourage dialogues are seen as appropriate means to encourage such developments. ---- such developments. ---- Elfriede RegelsbergerElfriede Regelsberger

Regional Cooperation InstrumentsRegional Cooperation Instruments

The following types of regional cooperation The following types of regional cooperation instruments used by the EU:instruments used by the EU:

- Association Agreements (first type is association Association Agreements (first type is association leading to the establishment of a customs union; leading to the establishment of a customs union; second type is represented by the Lome second type is represented by the Lome Convention – a preferential trade agreement Convention – a preferential trade agreement with a strong development component)with a strong development component)

- Cooperation Agreements (usually more loose, Cooperation Agreements (usually more loose, but also more comprehensive – trade, but also more comprehensive – trade, development cooperation, scientific, political)development cooperation, scientific, political)

References / Suggested readingsReferences / Suggested readings

Communication from the Commission: A new partnership Communication from the Commission: A new partnership with Southeast Asiawith Southeast Asia

(http://europa.eu.int/comm/external_relations/asia/news/ip03_961.htm)(http://europa.eu.int/comm/external_relations/asia/news/ip03_961.htm)

Report by Miguel Santos Neves “Changes in Southeast Report by Miguel Santos Neves “Changes in Southeast Asia and its impact on EU-ASEAN relations”Asia and its impact on EU-ASEAN relations”

(http://infoeuropa.eurocid.pt/opac/?func=direct&1_base=CIE01&doc_number=000020839)(http://infoeuropa.eurocid.pt/opac/?func=direct&1_base=CIE01&doc_number=000020839)

A World Player: The EU’s external relationsA World Player: The EU’s external relationshttp://europa.eu.int/comm/publicationshttp://europa.eu.int/comm/publications

Useful websites:Useful websites:

European Council on Foreign Relations (www.ecfr.eu)European Council on Foreign Relations (www.ecfr.eu)

Europe’s world (www.europesworld.org)Europe’s world (www.europesworld.org)

www.EurActiv.comwww.EurActiv.com

ASEAN Secretariat (www.aseansec.org)ASEAN Secretariat (www.aseansec.org)