European presence in Indonesia

This paper describes the European Union (EU) presence in Indonesia. It firstly discusses the reorientation of EU relations with Indonesia. It might be argued that the reorientation has been supported dominantly by economic and political motivations as consequences of the EU’s internal dynamics (such as single market; CFSP), the global dynamics and the rise of inter-regionalism. Secondly, current economic relationships show that the EU presence has been very significant for Indonesian economy, in term of international trade, investments, foreign exchange rate, debt, development assistance and business activities.

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EU-China relations: balancing political challenges with economic opportunities

During 2005, the European Union and China marked 30 years of diplomatic relations with much fanfare. Celebrations surrounding the anniversary however belied the fact that throughout most of this period the European Union and China remained largely aloof from one another. The strengthening of EU foreign policy over time, as well as the economic reforms and new outward orientation exhibited by China have changed the dynamics of the relationship. Both sides are increasingly recognizing the potential mutual benefits that can be accrued from a closer relationship. This paper assesses EU-China relations from both economic and political perspectives. In terms of economics, it is clear that the EU must build stronger relations with China if it is to accrue the benefits of access to an expanding market with over one billion people. To do so successfully however, the EU will have to reconcile the economic and political components of its foreign policy. The EU continues to challenge the Chinese government to reform its practices on a number of issues including human rights, democratic reform, and Tibet, all of which remain bones of contention. How the EU achieves the balance between political constraints and economic opportunities is the primary focus of this paper.

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Operational oceanography in Indonesia

In 2005 Indonesian and European institutes joined to start the first step for the implementation of an Ocean Operational System in the Indonesian archipelago. The system will support the decision making process for the sustainable use of marine resources, providing useful information and added value products as well as a service for an improved management of the sea with high business impact to targeted groups as public authorities and commercial operators (coastal managers, fishermen, shipping companies). In this paper the System is shortly described with its potential benefits and economic and social impacts.

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Public commitment strategies in intergovernmental negotiations on the EU Constitutional Treaty

We analyze the impact of public commitment strategies as bargaining tools in the negotiations on the EU Constitutional Treaty using a sequential-bargaining model with incomplete information. The analysis suggests selection bias in observable public commitments with respect to the kind of issues that are publicly challenged as well as the kind of governments that will ‘go public’. Public commitments are more likely under high uncertainty over audience costs. Further, the effect of public commitments on the duration and outcome of negotiation is conditional as well. In our empirical analysis, where we analyze the intergovernmental stage of the negotiations on the European Constitutional Treaty, we find strong empirical support for each of our theoretical predictions. Governments were most likely to commit publicly if they represented a domestic constituency that was negative about the EU Constitution and, at the same time, contained many undecided respondents. Moreover, these public commitments were generally quickly accommodated. In contrast, public commitments were less likely to lead to any changes if they were made by governments representing a domestic constituency that was relatively positive about the draft Constitution or negative and decided. In the latter case, however, public statements made bargaining deadlock more likely.

EU FTA negotiations with India, ASEAN and Korea: the question of fair labour standards

The EU sets considerable store by the need for its Free Trade Agreements (FTAs) now under negotiation with Asian countries to contain a sustainable development chapter with clear references to respect for the core ILO labour standards. While they reject the sanctions-based approach demanded by the European trade unions, they accept that some real enforcement mechanisms will be needed. Among Asian countries, Korea is most likely to accept some form of a social clause, while India and certainly some ASEAN countries strongly oppose it. This article explores the prospects for mutual agreement on this thorny issue at the bilateral level which, to date, has failed at the multilateral level.

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Explaining the European Parliament’s gains in the EU Constitution

The Constitutional Treaty, like each set of reforms since the Single European Act, would constitute another incremental increase in the European Parliament’s powers. But the Parliament did not get everything it wanted. What we do in this paper is investigate why the European Parliament tends to ‘win’ in some areas but not in others. We consider five possible explanations and test these theories by looking at the issues the Parliament promoted in the constitutional negotiations and the factors that determined whether the Parliament was successful or not in a particular area. We find that the Parliament gains power in areas where the governments delegate new powers to the EU and are uncertain about the consequences of this delegation. We also find that public support for the Parliament played a role in the extension of the Parliament’s powers in the Constitution.

The EU’s refusal to grant China ‘Market Economy Status’ (MES)

Although relations between the EU and China have considerably improved over recent years, Brussels and Beijing still disagree on a number of key issues. These include the EU embargo on arms sales to China, various bilateral trade disputes, problems of illegal migration and, last but not least, Brussels’ refusal to grant China MES. It is this last point that this essay will scrutinise. In doing so, it will firstly present the Chinese point of view on the question. The Chinese believe that, in view of all the efforts they have made in the course of their ongoing transition towards market economy, they deserve to be granted MES without delay. Indeed, Beijing has lately put this issue very high on its list of foreign policy priorities and, claiming that it is victim of discriminatory treatment, has been exerting ever stronger political pressure on the EU and its Member States. Yet Brussels, arguing that China does not yet fulfil the necessary requirements for being granted MES, has until now resisted this pressure.

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International institutions and market expectations: Stock price responses to the WTO ruling on the 2002 U.S. steel tariffs

Many scholars assert that international institutions have little power to enforce laws, punish offenders, or force compliance. Others stress that international institutions are important actors, specifically in the regulation of international trade. In this paper, I show that the recent trade dispute over U.S. steel protection provides us with a critical case to evaluate the role of the World Trade Organization in settling trade disputes and specifically stabilizing expectations of market actors over future steel policy. I argue that stock prices can serve as an important tool in answering these questions. In an empirical analysis using daily steel stock prices, I find that during the 2002 WTO steel case, the WTO dispute mechanism helped market actors stabilize expectations of future trade policy.

Politics of differentiation: enhanced cooperation in the EU and the pathfinder in APEC

A large majority of studies on differentiated integration focus their attention on closer or enhanced cooperation in the EU, neglecting similar developments in other regions, for example, the pathfinder in APEC. In comparing enhanced cooperation in the EU with the pathfinder in APEC, this article aims to discover conditions under which ideas of differentiation can emerge and then be transformed into common policies endorsed by all member states in regional integration. It shall also make clear the reasons why the pathfinder has been applied in APEC while enhanced cooperation has never been used in the EU. It will begin with a detailed categorization of sub-integrations. Then, the author comparatively analyzes the developments of enhanced cooperation in the EU and the pathfinder in APEC, and as a conclusion, evaluates the contribution of this analysis to better understanding of differentiation.

Knowledge hubs along the Straits of Malacca

World history has known areas of relative isolation and areas of high intensity of cultural interaction. The Mediterranean Sea, the Silk Road or the Straits of Malacca can be cited as such crucial contact zones. Within these areas, centres sprung up that served as interfaces between cultures and societies. These “hubs” as we would like to call them, emerged at various points throughout the contact zones, rose to prominence and submerged into oblivion due to a variety of natural calamities or political fortunes. This paper assesses the rise and fall of trade and knowledge hubs along the Straits of Malacca from before colonialisation until today. Historical hubs of maritime trade and religiosity today increasingly establish themselves as educational and knowledge hubs. This leads us to speak of the Straits of Malacca as a chain of—not pearls—but knowledge hubs with Singapore as the knowledge hub in the region shining the brightest of all, as the data suggest. We aim to conceptually grasp this development by suggesting a model or at least a hypothesis about the rise and movement of knowledge hubs in general.

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Environmental aspects in free trade agreements in the Asia-Pacific region

The trade and environment interface has become a topic of growing importance. Until the early 1990s, the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organisation (WTO), were the major forums to address the relationship between trade and the environment. Significant progress in this area has not yet been made. Since the 1990s, environmental issues have been addressed by the North American Free Trade Agreement (NAFTA) and in recent times by trans-regional and bilateral free trade agreements (FTAs) such as the Trans-Pacific Strategic Economic Partnership Agreement (SEP), the U.S.–Singapore FTA (USSFTA), the Canada–Chile FTA or the New Zealand–Thailand Closer Economic Partnership Agreement (CEP). Not only questions on the effectiveness of FTAs in global and regional environmental governance arise but also on the various actors involved in these negotiations. The question here is whether the integration of environmental issues in FTAs is a top-down approach, leaving the negotiations and implementation of environment cooperation frameworks in the hands of governments, or whether environmental arrangements are the result of a multi-stakeholder dialogue, consequently committing governments, the private sector and civil society to the objective of making trade and environmental policies mutually supportive. This article seeks to address these questions by analysing environmental issues and stakeholder participation in the Asia-Pacific Economic Cooperation (APEC), the Trans-Pacific SEP and the New Zealand–Thailand CEP.

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Visas and work permits: Possible global negotiating initiatives

We discuss global options for initiatives intended to ameliorate adverse impacts of visa and work permit systems used by national governments around the world. We first describe and document some of their effects, noting the relative lack of other research work on these issues. We then discuss proposals for a new and supplemental global visa structure which have been made as part of the Mode 4 GATS negotiations in the WTO, suggesting that the GATS/WTO may be an imperfect institutional location for negotiating on these matters. We then evaluate other approaches, including what realistically could be possible if a new body specifically created for global negotiation in the area were to be used.

Potential Benefits from a Deep EU–India Free Trade Agreement

Both parties to an eventual EU India FTA have agreed that it should not merely address tariff barriers but should also go further into what is known as deep integration, originally developed in the 1990s by R.Z. Lawrence. This relates to the removal of all obstacles to cross border business whether actual trade barriers or domestic regulations. We distinguish deep institutional integration from the deep integration of markets. We ask the question how one may support the other. There are potential market failures that can be addressed by trans-national rules on standards and technical regulations and services, but we conclude that the biggest impact of a deep RTA would be on the domestic economy of India if it provides an opportunity for reform. It should be noted that the paper draws on a study undertaken by the authors for DG Trade, but it represents only the views of the authors.

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Civil society perspectives on EU–ASIA free trade agreements

This paper focuses on the positions taken by civil society organisations that actively campaign on trade policies. Trade campaigners oppose the neo-liberal approach to trade and development and advocate a much more gradual and prudent approach to trade liberalisation. They stress that trade liberalisation will only lead to sustainable development if it respects environmental and social concerns, including the gender dimension of trade; if trade liberalisation is properly owned, prepared and sequenced; adapted to the institutional and economic needs and capacities of the countries and people involved, and accompanied by all necessary flanking measures. Trade campaigners stress the need to maintain policy space and the necessary governance instruments to react to changing circumstances and address social and environmental concerns. They denounce the lack of information, consultation and participation provided by governments in trade policy formulation and negotiations and they campaign to raise awareness and create more room for debate and participation. This article builds on a paper presented on 19-20 June 2008 at an UNU-CRIS Work Shop in Bruges on “Deep Integration and North-South Free Trade Agreements. EU Strategy for a Global Economy”.

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EU and Asian countries policies and programmes for the diffusion of sustainable energy technologies

The Asian region accounts for already over 40% of the global economy, and is becoming the world’s main manufacturing hub. Unprecedented changes in economic growth and trade in the last couple of decades have resulted in severe degradation of the regional, as well as the global environment that could offset the advantages that economic growth has brought to the countries and their populations. In this framework the need to deploy sustainable energy technologies is a key concern for the global community. This paper gives an overview of EU programmes and policies to develop sustainable energy technologies and the common barriers faced to technology implementation in EU and Asian countries. Following that, the approaches and mechanisms that are used internationally for overcoming the barriers to technology transfer and implementation are presented. After having assessed barriers to technology implementation and possible ways and programmes to help overcome them, the paper provides specific examples of success stories of how government policies and programmes, in combination with involvement of the private sector, can be effective in sustainable energy technology transfer and implementation in both EU and Asian countries. Finally, the opportunity that has recently arisen to enhance the introduction of sustainable energy technologies in developing countries through the development of programmes of related activities as CDM projects is presented and indicative mutual benefits for the strengthening of the EU Asian partnership are highlighted.

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Outside and inside competition for international organizations—from analysis to innovations

The analysis of the competitive environment of international organizations has been neglected in scholarly research. Both the external and the internal type of competition in international organizations are rather weak and their performance is far from ideal. To strengthen both types of competition, several tentative proposals are advanced. They range from the introduction of an international competition agency, competition rules, a monitoring institute, voucher systems, matching contributions, popular participation rights by citizens to the use of prediction markets and institutionalized devil’s advocates. These proposals are put forward to stimulate discussion and to advance new ideas about the design of international organizations.

The institutional failures of International Monetary Fund conditionality

The purpose of this paper is to propose an analytical framework integrating the diverse explanations of the failure of IMF conditionality. The IMF is a key player in the running of markets in a global economy. The institutional failures of IMF conditionality are appreciated at two complementary levels: (a) its intrinsic bureaucratic bias, and (b) the inability of the IMF to manage the institutional change required for the development of market processes. A new approach of conditionality suggests the separation of the role of the IMF as financial backer from its role as adviser to countries confronted by the globalization process.

The EU/China relationship: not seeing eye to eye?

I consider the endeavours exerted by the EU to develop the relationship with China which it formalised in its 1995 document ‘A Long Term Policy for China-Europe Relations’ (COM(1995) 279 final). I then examine China’s responses which culminated in 2003 when China produced its first ever ‘China’s EU Policy Paper.’ The reasons for this long gap between initiation and response are then explored. Since, obviously, the EU has been driving the relationship, the rationale for this is then looked into and detailed data is provided to support it. Finally, the nature of China’s reciprocation is entertained before the paper concludes that the relationship appears to mean more to the EU because China perceives the EU as only having a limited role within China’s overall global aspirations, of becoming a world power in economic terms, resulting from its impressive rate of economic growth, increasing R&D expenditure, and continually enhancing sophistication of its technology, and politically with its developing links and military prowess.

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The EU’s Korea relationship: enlargement effects

As the EU was expanding in 2004, a phase of new development between the EU and North Korea could have been expected. However, it was argued that the EU’s position towards North Korea is likely to remain unchanged. Most of the existing studies ascribed the reactive attitude of the EU to the distinctiveness of the recent enlargement. The accession of a large number of new members, which are considered to have diverse foreign policy interests and perception, is likely to add up to the already overwhelming number of problems in the governance of the EU. Thus, the EU’s policy towards North Korea would rather concentrate on a soft security approach. However, this paper contends that the existing explanation is not exhaustive, but that the implications relating to the conception of smallness, which is relevant to most of the new member states, should be included in the parameters of analysis in order to generate a more comprehensive and balanced view where the future relationship between the EU and North Korea is concerned. The preliminary draft of this paper was presented at the International Conference of the Korean Society of Contemporary European Studies, November, 25, 2005, at Seoul, South Korea. I appreciate all the comments and helpful advice made at the presentation.

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Referendums in the EU’s constitution building process

In ten member states of the European Union (EU) the new constitutional treaty was supposed to be ratified by referendum. A growing number of theoretical models predicts that such additional ratification hurdles result in an advantage for negotiators in the bargaining game. The impact such a referendum constraint can exert, however, depends on the timing of its announcement, the remaining ratification rules as well as the preference constellations. If parliament and voters are actually in favor of the new treaty, ratification constraints may cease to affect the bargaining outcome. After presenting the theoretical foundation of these arguments, we present empirical evidence much in line with the theoretical implications. More specifically, especially for the issues changed during the intergovernmental conference, those governments gained that had scheduled a referendum and voters had a stronger preference for the status quo.