1 st Global Youth Forum 31 July 2009

1. 1st Global Youth Forum 31 July 2009 The European Union’s External Relations – EU in the world By Dr Yeo Lay Hwee, Director, EU Centre

2. Contrasting views of the EU “Global governance relies heavily on regional governance and the European Union (EU) is the most successful model in that respect, contributing significantly to the world’s stability and direction.” - - - - - Pierre Buhler (French Ambassador to Singapore) in “European Union: a force for good in a troubled world” (ST 18 Dec 08) “Weak, divided, incoherent, hypocritical and infuriating – that’s how you hear the EU described privately in Beijing and Washington. The events of this first week of 2009 suggest that the critics are entirely right.” ------ Timothy G Ash (Professor of European Studies, Oxford University) in “Time to shape up” (ST 9 Jan 09)

3. The European Union: 497 million people – 27 countries Member states of the European Union Candidate countries

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

5. The EU of Three pillars The European Union Police and judicial cooperation in criminal matters Common foreign and security policy European Community domain (most of common policies) The Treaties

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

7. The EU as an economic power (cont.) • Because the EU was originally built around economics and trade, sovereignty was pooled and exercised in common in these areas. The Community method prevails in these areas and most decisions are taken by QMV. The Union as a whole (represented by the EU Commissioner for Trade) acts on behalf of the member states when it comes to trade issues. The EU also acts as a gatekeeper to the Single Market. In the area of external economic relations, the EU controls trade matters and market access. • In external economic relations, the goals of objectives of the EU are: • Eliminate barriers and restrictions to free trade; • Ensure a free and fair global trading regime; • Contribute to development of world trade.

8. EU in Development Aid and Humanitarian Assistance • The EU (ie the Community with the 27 member states) is the world’s largest donor of both development aid and humanitarian assistance. • The Community itself is the 5th largest aid donor. • EU has developed a distinctive approach to development cooperation – a value-based approach associated with increasingly pro-active attempts to promote democracy, rule of law and human rights, through a range of conditionalities applying both to trade and aid. • In its development cooperation goals and objectives, the EU aimed to foster: • Sustainable economic and social development of developing countries and their integration into the world economy; • Campaign against poverty; • Development and consolidation of democracy, rule of law and respect for human rights.

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

10. From EPC to CFSP • EUROPEAN POLITICAL COOPERATION: Policy coordination / cooperation in the political, security and diplomatic arena has been one of the most difficult – WHY? • Issues of national sovereignty; • Has to accommodate different historical traditions and collective consciousness • Development of EPC (from 1970-1992) • Strictly inter-governmental • Grew in slow, pragmatic way rather than in a formal manner • Two events in the 1980s (Falklands War and Martial law in Poland) provided an opportunity for some sort of political visibility to EPC • Intensification of debates on future direction of European integration • Events in Central and Eastern Europe and Soviet Union in late 1980s served as a catalyst for the establishment of a common foreign policy

11. From EPC to CFSP (Cont.) • From EPC to CFSP: • Because of the momentous changes taking place in Europe with the end of Cold War and the completion of Single Market in 1992, the TEU (Maastricht Treaty) turned the European Community into European Union with three pillars, of which CFSP is one of them. • Though still inter-governmental, the CFSP does represent a further step toward making foreign policy a genuine common endeavour TheTEU (Maastricht treaty) defines the goals of CFSP as follows – • To safeguard the common values, fundamental interests and independence of the Union; • To strengthen the security of the Union and its member states in all ways; • To preserve peace and strengthen international security • To promote international cooperation • To develop & consolidate democracy and the rule of law, respect for human rights

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

13. Idea of EU as a normative power • Setting norms and ethical standards: The EU sees itself as a model of regional integration and democratic peace; It promotes in its foreign policy a particular perspective of values such as democracy and human rights, multilateralism and free trade. Human rights in EU foreign policy is pursued through conditionalities in Trade and Cooperation agreements and other diplomatic and economic instruments

14. Group to Group dialogue • Relations between regional groupings (eg EU-ASEAN; EU-SAARC) Group-to-group dialogue began to take shape in the 1970s in response to the enlargement of the European Community and the institutionalisation of EPC EC-ACP dialogue in 1975 (Lome Convention) But group-to-group dialogue really took off in the 1980s.

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

16. Regional Cooperation Instruments The following types of regional cooperation instruments used by the EU: • Association Agreements (first type is association leading to the establishment of a customs union; second type is represented by the Lome Convention – a preferential trade agreement with a strong development component) • Cooperation Agreements (usually more loose, but also more comprehensive – trade, development cooperation, scientific, political)

17. References / Suggested readings Communication from the Commission: A new partnership with Southeast Asia (http://europa.eu.int/comm/external_relations/asia/news/ip03_961.htm) Report by Miguel Santos Neves “Changes in Southeast Asia and its impact on EU-ASEAN relations” (http://infoeuropa.eurocid.pt/opac/?func=direct&1_base=CIE01&doc_number=000020839) A World Player: The EU’s external relations http://europa.eu.int/comm/publications Useful websites: European Council on Foreign Relations (www.ecfr.eu) Europe’s world (www.europesworld.org) www.EurActiv.com ASEAN Secretariat (www.aseansec.org)