EU
The external policy of the EU is generally considered to consist largely of trade negotiations on various bilateral and multilateral stages. There is much debate over the effectiveness of policy with respect to the developing world; in the context of this discussion I have used the term 'developing world' in its widest sense, although I will most commonly focus on the Mediterranean counties, ACP, and Latin America. It should also be made clear that for these purposes I will not be drawing too much on historical background, rather examining the issue over the last fifteen to twenty years, and how the changes in political climate within Europe may be affecting the developing world in the future.It is interesting to note that this essay comes at a time when increasing pressure from the USA and other member of the WTO to liberalise trade are in direct opposition to the talks currently being held on the successor to the Fourth Lome Convention. This in turn comes into some conflict with the Union's own goals of increasing its scope as a Single Market, and makes for an apparently unyielding division of loyaltyThis essay falls naturally into two main sections; I shall concentrate first on External and then Intern
ACP exporters feared this represented 'the beginning of the end' for their traditional relationship with the EU, and the increasing pressure of the WTO suggests that liberalisation is going to become increasingly important in EU external relations, reducing the strength of existing preferences. However it is accepted that diversion will occur in markets for low-value, non-differentiated, price-elastic goods which indicates that the average developing economy will lose out on trade in manufactures to EU counties . In recent years ACP importance has declined relative to others (although only slightly) and South Asians have lost out to Latin Americans (mostly as a result of the accession of Spain and Portugal into the Community in 1986) . The second section covers the far-reaching effects of internal EU policy on the developing world, touching briefly on the implications of the Common Agricultural Policy before analysing the effects (both realised and potential) of widening and deepening the Union in terms of the developing countries. Tsoukalis rightly points out that free access for industrial exports means very little if there is "little to export" . Africa will be focused on political and bureaucratic reform, Latin America and Asia on strengthening the private sector, Euro-Med on population and immigration issues. Benefit or otherwise to a third party as a direct result of external policy are difficult to gauge empirically; the result is a wealth of conflicting information. On the implementation of the Single European Act of 1987, many countries raised fears of the EC (as was) becoming 'Fortress Europe', that is to say, a more protectionist Europe. This could seem to make the gesture of trading preferences seem rather more hollow; nevertheless, the EU remains the most important source of foreign capital for many third world countries . Hallett points out that this surely must mean a reduction in aid to developing countries . There is no firm conclusion over whether trade creation as a result of EU preference policy is outweighed by trade diversion; the EC's own figures suggest that the one will cancel the other. The European Directive EC-92 is predicted to dampen trade in manufactured goods in all developing countries, making diversification difficult and reinforcing dependence on one or two unstable goods, as well as trade and investment creation and diversion effects which will have worrying long-term implications for growth and trade . The accession of Spain Greece and Portugal meant the export possibilities of Euro-Med countries were significantly reduced as the EU became increasingly self-sufficient in Mediterranean products (fruit, olive oil etc. The EU has fostered preferential trade agreements with all Mediterranean countries except Albania and Libya; examples of asymmetrical benefit are plentiful.
Common topics in this essay:
Furthermore EU,
Preferences EU,
Greece Portugal,
Agricultural Policy,
Lome Convention,
Conventions ACP,
America Asia,
Single Market,
Rights Conditions,
POLICIES EU,
developing countries,
developing world,
eu policy,
lome convention,
trade creation,
preferential trade,
external policy,
trade diversion,
trade agreements,
developing nations,
welfare gain developing,
preferential trade agreements,
common agricultural policy,
lome iii iv,
gain developing country,
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Acceptance Essays
