The Unilateral Turn in EU Trade Policy? The Origins and Characteristics of the EU’s New Trade Instruments

Abstract

The introduction of over half a dozen unilateral European Union (EU) trade policy instruments in the past few years seems to represent a major shift to the EU’s previous focus on bilateral and multilateral avenues. This article investigates the origins of the recent unilateralization of EU trade policy and the main characteristics of the new instruments. What are the new instruments’ goals and why does the EU introduce them now? We identify six key determinants of this trend: the rise of state interventions, increasing sustainability ambitions, a more adverse geopolitical context, the paralysis of the multilateral trading system, the resistance to bilateral trade agreements and changing preferences within key Member States. The instruments can be divided in three clusters focused on competitiveness, sustainability, and security. They share to a larger or lesser degree five key features: reciprocity, deterrence, built-in engagement, extension of internal policies, and the pursuit of international public goods. Our analysis points at a unilateral turn with EU characteristics, offering a framework for studying trade unilateralization in comparative perspective. EU, Trade Policy, Unilateralization, Geopoliticization, Bilateralism, Multilateralism, Sustainability