EU enlargement and the rise of Asian FTAs: Implications for Asia-Europe relations

  Over the past few years, there has been resurgence in regionalism and preferential trade across the global economic system. The European Union has taken steps at enlargement of their economic community to include countries in Central and Eastern Europe. Bilateral trade arrangements are proliferating in Asia involving the region's largest economies Japan and China. These arrangements mirror similar initiatives in the Americas. These developments have profound implications on the world trading system, in general, and to Asia-Europe relations in particular. The rise of preferentialism runs the risk of heightened discrimination, trade diversion and the fragmentation of the multilateral trade order. This prospect will have a direct impact on the future relations between Asia and Europe. Both Europe and Asia should remain outward oriented, open to reciprocal arrangements with non-member economies, and supportive of the multilateral trading system.     

The US–Russian security ‘reset’: implications for Central-Eastern Europe and Germany

Abstract

The article examines the reactions of selected European states to the US-performed ‘reset’ in relations with Russia and explores the ways in which they have been adapting to the new set-up. The article is divided into three parts: after the discussion of the substantive continuity and limited change in US foreign and security policy (USFSP), the multilateral and bilateral dimensions of USFSP procedure are examined through John Ruggie's theoretical observations. The second part of the article deals with implications of the USFSP for Central-Eastern European countries. This part begins with a discussion of Russian attempts to wheedle Europe into embracing its plans for new European security architecture. The next section sheds light on the unexpected process of strategic realignment of the region (USA/NATO/EU/CSDP) and simultaneous transformation of the special relationship with the USA into ‘normal life’. The third part of the article tackles the implications of heightened US–Russian bilateralism for Germany. Authors' findings, many of them based on conducted elite interviews, suggest the contrary process, namely Germany's strengthened multilateral commitment to the EU and specifically to European Security and Defence Policy, limiting the bilateral option to energy trade with Russia. What follows are concluding remarks.     

The evolution of the European Union’s failed approach to Afghanistan

ABSTRACT

This article provides a genealogical account of European actorness in Afghanistan. It argues that European agreement towards facilitating modernisation and development in Afghanistan was initiated with aid and trade, evolving into humanitarianism in the 1990s, and reconstruction and democratisation in the 2000s. The European Union has had a positive impact on Afghanistan, focusing on humanitarianism, but its multilateral and programme level approach to reconstruction and democratisation has failed to meet the EU’s stated objectives. By promoting the flawed “Bonn Model”, the EU is proportionally culpable for failed international attempts to reconstruct Afghanistan; even though the United States has been the primary international actor. Drawing a series of broader lessons, such as tensions between Atlantic solidarity and European integration, and the limitations of the European crisis management, the article demonstrates how European policy has been shaped by crises inside Afghanistan and the larger geopolitical crises these have generated. These have contemporary importance as history suggests that as the US withdraws its commitment to Afghanistan, the EU will have a very significant role in attempting to fill a humanitarian vacuum.     

The European Union’s trade and investment policy in Asia: new challenges and opportunities in a changing global environment – or: following individual roadmaps

Asia is Europe’s largest trading partner and EU-Asia trade relations have undergone a rapid change since the global financial crisis. On a global scale, the new multilateral trade agreements such as the now stalled Trans-Pacific Partnership (TPP) involving European Unions’ (EU) major trading partners such as Japan, Singapore and Vietnam also have the potential to change the trade equations. In this paper, we evaluate the new EU trade policy which has been designed to ensure that the EU benefits from the changing global trade scenario and also look at the steps which have been taken by the EU to promote trade relations with its major trading partners in Asia in the predicted ‘Asian century’. We look into the Free Trade Agreements, which are being negotiated with its Asian partners and seek to understand the reasons which have resulted in delays in their signing and negotiations. We evaluate new policies pushed forward by its Asian partners such as the One Belt One Road policy by China and Japan’s policy of securing a large number of trading agreements in the America. Moving ahead, we also shed light on the indirect factors that may influence the success of EU trade negotiations in Asia such as the EU policy on granting China market economy status and the commencement of the ‘Brexit’ process. Lastly, we try to present a list of immediate priorities for EU in Asia, which will ensure that it secures a toehold in trade with the region. All in all, it is shown that the EU has not one and the same approach for all Asian countries but it negotiates flexibly and individually country by country. Because of this “country by country approach” the EU is also not ready to enter into general EU-ASEAN trade negotiations again.     

美国TPP战略的动机及其对东北亚经济一体化的影响研究

美国TPP战略既是美国外贸政策的重大调整,也是对WTO全球多边贸易秩序的系统性突破。它不仅反映了美国政府试图重振其国内脆弱经济的努力,同时也标志着美国亚太经济合作战略的重大转变。本文运用一般均衡模型,模拟了不同情境下美国TPP战略对不同地区产生的各种经济影响。模拟结果显示:TPP加入国家福利增加,而非加入国将受损,一个不包括中国的TPP将使得中国福利受损,贸易条件恶化。中国需要迅速建立包含中日韩三国的东北亚自由贸易区,同时应根据自己的长远利益构建针对美国TPP战略的其他对冲性政策。     

European experience for East Asian integration: ideas, national interests, and the international circumstance

This paper traces the possibility of East Asian integration through comparison with the early stage of European integration on three different levels: ideas, national interests, and international circumstance. Judging from the European experience, ideas always come first, then national interest contests, and eventually the international circumstance conditions the context. I compare the multilateral approach in Europe with the imperial hegemony competition in East Asia, Adenauer’s regionalization policy in Europe with the Yoshida line of Westernization detouring from Asia, and the US and Russia’s different roles in the two regions as external forces constraining the international order. My conclusion for the future of East Asia is located somewhere between views of procedural divergence and fundamental skepticism. I worry about integration for the sake of integration in which regional integration is presupposed as inherently good. Such discourse will easily be deteriorated and such a blind community simply collapses when circumstances change. For these reasons, there needs to be an adequate discussion regarding for what, by whom, and through which method integration is achieved.     

The Japan-EU Economic Partnership Agreement—economic potentials and policy perspectives

After more than 4 years of negotiations, Japan and the EU have reached an agreement for bilateral free trade. The intended liberalization of trade in goods, agriculture, and services would create the world’s largest free trade area. Japan and Europe are sending a strong signal against protectionism and in favor of free trade and modernizing global trade rules. While free trade in the transatlantic and the transpacific context will remain an illusion for some time to come, the Japan-EU Economic Partnership Agreement (JEEPA) is a realistic option for trade partners at the western and eastern side of the Eurasian continent. The expected overall positive effects of JEEPA should not obscure the limitations and risks of the intended trade integration. There will be economic losers of the agreement both in Europe and in Japan. There is plenty of fuel for political and social conflict. And in light of the many informal barriers, market access to Japan will remain extremely difficult for European companies. Beyond trade policy, JEEPA has a political dimension, too. It shows the political will to counteract economic disintegration and the loss of political substance in the bilateral relationship. The aim is to intensify cooperation, which would benefit both sides economically and politically.     

Alliances,Trade Discrimination,and the Global Trade Regime

Although nondiscrimination is a central tenet of the global trade regime, discrimination was in fact common under the General Agreement on Tariffs and Trade, particularly against developing countries. The latter have recently sought to end such discrimination through World Trade Organization rules: for example, the Agreement on Textiles and Clothing (ATC) prohibited quota discrimination in this sector. I examine the ATC's impact on US discrimination, asking whether the ATC ended the US policy of favoring allies with generous textile and clothing quotas. I find that, while the United States favored allies before the ATC, this favoritism vanished in the post-ATC period. The ATC thus accomplished its goal of ending explicit textile and clothing discrimination. This result underscores the potential for multilateral rules to control trade discrimination and implies that popular theories of trade policy may be contingent on such rules.     

伪满洲国初期的对外贸易

20世纪初至1930年,中国东北地区的对外贸易规模不断扩大。伪满洲国成立后,伪满政府倚仗日本关东军,强行侵占了我国东北各地海关。中国东北地区长期出超的局面在1933年反转,并且入超额出现扩大趋势。伪满政权极力促进所谓的"日满一体化",使得东北地区的对外贸易更加向对日贸易集中。随着列强的经济利益争夺日趋白热化,伪满洲国逐渐步入统制贸易之途。     

China’s Rebalancing towards Europe

Chinese leaders tend to think strategically about Europe. By following the process of European integration closely in the last decades, they have succeeded in identifying at different historical junctures those European integration initiatives that would serve China’s national security and foreign policy objectives. EU policymakers, instead, appear unable to think strategically about China as EU member states tend to focus on bilateral relations with Beijing, thus undermining Brussels’ capacity to fashion a clear and coherent China policy. There is thus a glaring disparity between Beijing and Brussels when it comes to strategic thinking. With China’s economic and political rebalancing towards Europe underway, there has never been more need for an adequate response from the Union.     

Flexible modes of governance: Making CFSP and ESDP work

The European Union and the United States are on the verge of agreeing to a transatlantic free trade agreement. The proposed Transatlantic Trade and Investment Partnership is aimed at boosting EU and US economic growth, but the negotiating partners have not excluded the defence sector from negotiations. Europe is at a tipping point regarding the rationale for its defence-industrial integration efforts. Any TTIP extending to the defence sector will raise questions about the nature of the European Defence Technological and Industrial Base, and, crucially, how it impacts the North Atlantic Treaty Organisation and the Common Security and Defence Policy.     

Salvaging the Trans-Pacific Partnership: building blocks for regional and multilateral trade opening?

The high hopes that the Trans-Pacific Partnership (TPP) would open up trade across the Pacific were dashed by the decision of the new US Government under President Trump to withdraw from the agreement in January 2017. Despite being controversial, the TPP had been recognized as an agreement that substantially updates and extends international trade rules responding to new technological developments and economic realities. It was thus lauded by some as the first true twenty-first century trade agreement. The United States’ withdrawal from TPP gives the agreement an uncertain future. Yet, we argue in this paper that some achievements of the TPP might not be lost. The TPP offers important lessons for other ambitious regional trade deals both in terms of process and content. Furthermore, several chapters of the TPP can become blueprints for ongoing and upcoming negotiations at the multilateral level. A one-to-one transposition of TPP provisions into the multilateral trade agreement is unlikely, yet certain provisions could serve as valuable inspiration for future multilateral trade talks.     

Forms of state and European energy security: diplomacy and pipelines in Southeastern Europe

Focusing on natural gas and pipeline infrastructures, and adopting the concept of “forms of state”, the article examines the transformation of energy security politics in Europe. Three state models, with their related pattern of energy diplomacy, are sketched: the partner state, which describes the original politics of the European gas market; and the provider state and catalytic state, which describe two alternative possibilities of the emerging politics in the new institutional and ideational context promoted with the establishment of the internal energy market and the development of the EU’s external energy policy. By analysing the politics of pipeline in Southeastern Europe, the article argues that the catalytic state model with its related pattern of network energy diplomacy is more appropriate than the provider state model, supported by the market approach and its related pattern of multilateral diplomacy, to conceptualise the equilibrium emerging from the transformation of the previous system.     

From the Outside Looking In: The Effect of Trading Blocs on Trade Disputes in the GATT/WTO

The increasing number and expansion of trading blocs is an important dimension of the contemporary international economy. This study examines the effects of such trading blocs on third parties and on the multilateral trading system. It is argued that trading blocs have negative economic effects on economic sectors in non-members' states. These sectors urge their governments to take political action vis-à-vis the trading bloc. Governments have several policy choices on their menu, and the attractiveness of these policies is determined by domestic and international incentives and constraints. I argue that filing a complaint in the GATT/WTO is an attractive and effective policy tool in the hands of third parties' governments. Thus, I hypothesize that the existence, deepening, and widening of trading blocs result in an increase in the number of complaints filed against their members in the multilateral trading system. I examine these propositions in the context of three important trading blocs—namely, the EU, NAFTA, and Mercosur—in the period 1948–2000. To test these hypotheses a time-series cross-section count model is performed. Controlling for conventional alternative explanations, the empirical analysis supports the theoretical framework.     

Regional Integration and Democratic Consolidation in the Southern Cone of Latin America

Regional integration has been a significant factor shaping the consolidation processes of southern cone democratizing states. Regional integration strategies have allowed transitional regimes across the southern cone to neutralize threats of democratic reversals by military leaders, effectively undermining the long-standing geostrategic rationales used by foreign policy and military elites to justify military intervention in domestic politics. The dramatic rise of interstate co-operation has accelerated and ensured the consolidation of democracy across the region through regional trade blocs, the development of an embedded regional commitment to democracy, and a 'defence of democracy' regime. At the same time, democratization has enhanced regional economic and security integration strategies, through increased domestic transparency, the impact of pro-democratic ideational forces and the externalization of democratic principles. 'Structurational' analysis of the processes of democratic consolidation in Brazil and Argentina is used to demonstrate the influence of economic integration and the emergent regional security regime on democratic consolidation, as well as the role democratization played in facilitating these developments in regional integration.     

Europe’s triple by-pass

Periodic contestations over gas transit from Russia westwards to Europe, as in January 2009, have demonstrated the fractured nature of relations among states that each on their own plays a vital role in the maintenance of the European energy sector. More importantly, the January crisis has reinforced the concept that energy security goes beyond existing conceptions of access to upstream supply balanced by consumer demand. Up to now, the track record along the European energy value chain has prioritised short-term macro-solutions over longer term, step by step confidence building micro approaches. What becomes of energy trade in Europe may depend upon a fundamental re-thinking of energy based both on the understanding of the good as a purely economic commodity and on our institutional ability to coordinate the energy trade as a collective across a vast landscape of divergent economic and political interests. Subsequently, this article seeks to identify the sources of inaccurate structural interpretations of the policy environment, the unintended consequences derived from sub-optimal policy choices and to present workable solutions to existing risks to the stability of EU/Russia energy trade.     

Regional institutions: State withering or consolidation. the case of the Arab summits

The European Commission has spelled out its policy ambition for EU energy cooperation with the southern neighbourhood with plans for the establishment of an ‘Energy Community’. Its communications make clear that an Energy Community should be based on regulatory convergence with the EU acquis communautaire, much in the same vein as the existing institution carrying the same name; the Energy Community with Southeast Europe. It is puzzling that the Commission insists on repackaging this enlargement concept in a region with very different types of relationships vis-à-vis the EU, especially when considering the lukewarm position of key stakeholders in the field. According to them, any attempt to introduce a political integration model in this highly sensitive issue area in the politically fragmented MENA region might run the risk of hurting the incremental technical integration process that has slowly emerged over the past few years.     

Bracing for Cold Peace. US-Russia Relations after Ukraine

Despite rising back to prominence during the global economic turmoil, the International Monetary Fund remains under severe pressure over its lack of legitimacy and effectiveness. It is surrounded by increasingly vibrant and potentially competing systems of regional financial arrangements. But while it is feared that regional arrangements can undermine the global financial order, they can also help buttress the multilateral institutions that are struggling to manage an increasingly complex global economy. The purpose of this article is to draw on trade, exploring the decades-long efforts to ensure compatibilities between regional trade agreements and the multilateral trading system, to offer lessons to financial policymakers.     

后金融危机时期中日韩货币合作研究

后金融危机时期,基于共同利益的需求,东亚货币一体化成为一个不可逆转的发展趋势。中日韩3国货币合作在东亚区域货币一体化过程中起着至关重要的作用。3国货币合作具有经济基础:3国经济力量雄厚,产业结构和资源互补性强,贸易增长迅速,汇率波动差异趋小,货币政策方向也渐趋一致。计算3国货币合作的OCA指数表明,与危机前相比,3国进行货币合作的成本已经有了明显改善,3国2011年的OCA指数与1995年欧洲各国与德国间的OCA指数相近,这表明与当初的欧盟相似,3国已具备进行深入货币合作的条件。人民币和日元的协调与合作对3国货币合作具有重要意义和现实基础,中国应谨慎而积极地分阶段推进人民币国际化进程。     

Global interactions of China and India: Divergent paths of trade?

This article explores the global positions of China and India in merchandise trade. It first compares the integration models of China and India and, thereafter, examines the core factors that drive their trading relationships. With respect to their global trading partners, there are considerable differences in the influence of economic drivers of trade for China and India. Combined larger markets, similar consumer preferences, similar factor endowments and linguistic links enhance global exports from China. Alternatively, smaller market size, discrepancy in consumer demands, dissimilar factor endowments and combined stocks of foreign direct investments drive India’s global trade. The findings suggest that differences in the structure and demand of China vis-a-vis India dictate the divergence in the profile of their trade determinants. Such divergence in trade drivers, however, dissipates when taking into account Chinese and Indian partnerships on a regional basis – with East Asia, Middle East and North Africa (MENA), Latin America, European Union (EU), and Africa.