EU Trade Research Articles

Evaluating Trade Policy - The Practice of the European Commission

This paper provides an overview of the European Commission’s evaluation of EU trade policy. It discusses the importance of transparent policy evaluation for improving the functioning of trade policy, informing EU co-legislators and the general public to ensure accountability. It discusses specificities of evaluations in the field of trade policy, the evaluation cycle, and the types of impacts studied. The methodology used in evaluations is outlined and discussed. Overall, the paper provides insights into how the European Commission uses evaluation tools to inform EU trade policy decision making.

How TTIP split the social-democrats: reacting to the politicisation of EU trade policy in the European parliament

ABSTRACT This article undertakes an actor-centred case study of the European Parliament’s (EP) reaction to the politicisation of the Transatlantic Trade and Investment Partnership (TTIP), the most controversial EU trade negotiations in history, as structured by the behaviour of its political groups. Specifically, the article traces why and how the EP updated its position on TTIP at the height of politicisation through a new resolution adopted in the summer of 2015. We focus on the role played by the then swing group in the EP, the Socialist and Democrats (S&D), which was a key target of TTIP contestants. Building on the literature on EP politics, we explain how the S&D balanced responsiveness to outside contestants with the responsibility as a group that was required to maintain a stable majority within the EP. We demonstrate how the S&D position was steered by its largest delegations and MEPs with responsible roles. In addition, we show that S&D delegations which faced high levels of domestic politicisation and whose parties hold trade sceptic views defected from the compromise resolution. Our article contributes to the literatures on politicisation of trade, the role of the EP in trade policy, and politics in the European Parliament.

Regional involvement in EU trade policy: what remains after politicization?

ABSTRACT Wallonia demonstrated the importance of regional actors for EU trade policy. What remains, however, of regional involvement when politicization subsides, as after CETA and TTIP? Our paper provides a framework that allows a prediction of involvement after politicization. It posits that the interaction of three factors is decisive: politicization (short-term), preferences (medium-term), institutions (long-term). The more regional actors dispose of institutionalised channels of voice and the more they develop endogenous preferences, the less impact for politicization. We demonstrate this interplay in the cases of Austria, Germany, Belgium, Spain, and Italy. Whereas regional involvement in Spain and Italy is driven near-exclusively by politicization, the German and Austrian Länder will remain cooperatively involved even in its absence. The Belgian regions, in turn, are in a process of gradual institutionalization. Our study demonstrates that regional actors remain a force to be reckoned with in EU trade policy, but some more so than others.

The Legality of EU Sanctions Under International Investment Agreements

The ‘unilateral turn’ in EU trade and investment policy is also reflected in the EU’s adoption of restrictive measures or sanctions following the Russian invasion of Ukraine. EU sanctions do not only target the Russian government but also Russian individuals and companies with investments in the EU. They can also indirectly affect the economic activities of other foreign investors running businesses in the territory of Member States. This raises unexplored questions about the interaction between EU sanctions and certain disciplines of international economic law, such as international investment protection law. Member States have undertaken obligations under international investment agreements (IIAs) signed with Russia and other states in respect of investments made in their territory by Russian and non-Russian investors. This article examines whether, and if so to what extent, the EU’s unilateral turn in the form of sanctions can fall within the scope of international investment law. It shows that this policy can trigger claims against Member States under a different set of IIAs. This article also examines potential defences that Member States can invoke against investment treaty claims resulting from the implementation of sanctions. Sanctions, Russia-Ukraine conflict, international law, international investment agreements, ISDS, nationality, third-party countermeasures, essential security interests

Foreign Trade Between Ukraine and the EU

Abstract The article examines the trends in the development of trade relations between Ukraine and the EU. The positive changes that have taken place in European-Ukrainian relations in recent years are outlined. The dynamics and structure of exports and imports of goods and services are analysed, and the trends that have occurred over the past five years are identified. The place of Ukraine in the structure of EU foreign trade is considered. It is revealed that the foreign trade turnover between Ukraine and the EU is affected by the war. The main problems that hinder Ukraine‘s integration into the EU trade system are summarised and recommendations for their solution are provided.

Europe and Russia's Energy Problems in the Context of the Russian-Ukrainian War

Russia and Europe have very close economic relations. In 2020, Russia was the fifth largest trading partner of the EU, with the EU's trade with Russia accounting for 4.8% of its total foreign trade. Following the outbreak of the Russia-Ukraine conflict, political and economic relations between Europe and Russia have deteriorated significantly, and both economies have suffered as a result. International energy prices have risen sharply due to the uncertainty surrounding global energy supply, trade and transport. Here, using Nord Stream as an analytical example, we looked in depth at the Russian-Ukrainian conflict in the energy sector and the prospects for the development of the energy sector in the aftermath of the conflict, as well as the potential implications for other countries, such as Western Europe and the United States. We concluded that the Russian-European game reflects the power differential resulting from their unequal and compounded interdependence structure, which has been affected to some extent by the outbreak of the Russia-Ukraine conflict. As the implementation of alternatives between Russia and Europe accelerates, the interdependence between the two will tend to decline in the future. However, the Russian-Ukrainian conflict will hardly fundamentally change the mutual benefits of the Russian-European gas relationship, which will remain competitive and uncertain due to the security crisis, differences in energy security concepts between the two sides and interference from the US.

Brands in the Metaverse: The Concept of ‘Interdimensional Confusion’ Between the Physical and the Virtual Space under EU Trade Mark Law

Abstract Brands have identified the metaverse, Web3 and NFTs as new means of engaging with their consumer base. Digital fashion, in particular, seems to have a bright future ahead. However, novel forms of virtual counterfeits are also on the rise. Brand owners are concerned that their existing trade mark registrations might not provide sufficient protection against infringements in the virtual space. The present article examines whether a likelihood of confusion within the meaning of Art. 9(2)(b) EUTMR can exist where a trade mark registered for physical goods is used almost identically in respect of their virtual counterparts.

The Role of EU Trade Secrets Law in the Data Economy: An Empirical Analysis

This article draws on a recently completed study for the European Commission on trade secrets in the data economy. It distils the main findings of that Study and advances it by reflecting on and analyzing these findings in the context of existing legal, management and economics literature, as well as their implications for EU legal policymaking when it comes to trade secrets law. In order to facilitate data sharing, the article argues for a cautious approach, with very modest legislative reforms to the EU Trade Secrets Directive, instead preferring soft law and practical steps to be taken. There is, however, greater scope to reform legal regimes that are complementary to EU trade secrets law, such as the sui generis database right.

El bilateralismo en las relaciones comerciales de la Unión Europea

Bilateral and regional cooperation has become the prime instrument for regulating world trade in the 21st century, as opposed to the multilateral forum of the World Trade Organisations (WTO) and the increasingly prominent protectionist attitudes of major economic powers. Considering the above, this contribution aims to facilitate the understanding of the new generation trade and investment agreements in the overall context of EU trade policy. We will start with an outline of the concept of new generation agreements and continue with an analysis of their regulatory heterogeneity, where we provide some considerations regarding EU’s competence in the areas concerned. The study will conclude with a revision of the growing predominance of competitiveness, reciprocity, and differentiation, as both the drivers and inspiration in the restructuring of the EU’s trade agenda, to further stress the relevance of transparency and democracy principles for the governance of the EU’s external action.

EU Case Laws on Trade Defence Instruments (TDI) in 2022

This article provides an overview of the judgments of the Court of Justice of the European Union (CJEU) regarding EU’s trade defence instruments (TDI) in the year 2022, in particular, with respect to admissibility, dumping, injury and procedural aspects. EU trade defence instruments (TDI), anti-dumping, anti-subsidy, safeguards, Court of Justice of the European Union (CJEU)

How does politicisation affect the ratification of mixed EU trade agreements? The case of CETA

ABSTRACT This article examines how politicization has affected the ratification of the EU–Canada Comprehensive Economic and Trade Agreement (CETA) in EU member states. The study is based on the conceptual framework of discursive postfunctionalism. This approach builds on postfunctionalist arguments about the constraining impact of politicization on national governments’ EU-related policy making, but seeks to specify them further by examining mediating factors between political contestation and decisions of national policy makers. We test the explanatory power of discursive postfunctionalism by combining a comparative overview of CETA-related politicization and ratification patterns in all EU member states with in-depth case studies of five states that have seen particularly intense public contestation. Our research shows that politicization does not necessarily prevent the ratification of CETA; rather, its effects on policy making are mitigated by institutional provisions on the involvement of domestic institutions, the composition of government coalitions, and the discursive strategies of national governments.

How did Brexit impact EU trade? Evidence from real data

AbstractAt the time it voted to exit in 2016, the UK was a leading economy within the EU. It contributed about 16 percent of the EU GDP, while the other EU countries accounted for almost half of UK's total trade. This study attempts to answer two research questions: First, how Brexit affected the EU–UK trade and second, how it affected the trade between remaining 27 EU members. To answer these questions, quarterly data are exploited for the period from 2005Q1 to 2022Q3 covering a total of 53 trading partners including the EU members. A gravity model that controls for unobserved bilateral heterogeneity and multilateral resistance is estimated by PPML. Three phases of Brexit (the referendum, transition, and post transition [under the TCA]) are analysed. The results indicate that the Brexit referendum phase depressed UK–EU trade by around 10.5%, and transition phase by around 15%. In both cases, particularly for the transition phase, the effect is greater on the UK imports from EU than the UK exports to EU. We do not find a significant effect due to the post transition (TCA) phase. Estimates show some mild but positive effect on intra‐EU trade of about 1.5% and 4.6% due to Brexit referendum and post Brexit respectively, but no significant effect from the transition phase. This suggests that some EU trade with the UK was redirected to other EU members. Hence UK should aggressively seek out new trade agreements with other countries and trade blocs as well as refine the workings of the trade and cooperation agreement signed with the EU to minimise the loss.

United we stood, divided we transform? Exploring coalition transformation divergence in the EU trade policy field

ABSTRACT During the EU-US (TTIP) and EU–Canada (CETA) free trade negotiations, large coalitions of civil society organisations were active not only across borders but also within European member states. In several countries, coalitions saw the opportunity to transform their issue-specific group into a general coalition on EU trade policy in order to achieve more sustained engagement. However, in hindsight, only some of the transformed coalitions remained active and visible with the same organisations, while others experienced a decline in visibility, activities, and membership. This study aims to explore the factors contributing to this divergence in coalition transformation, drawing on the literature from social movement and interest group studies. Based on interviews with trade activists in Belgium and the Netherlands, the analysis points to differences in perception of political and discursive opportunities, resource mobilisation, the degree of ideological and cultural overlap between the coalition’s actors, and organisational structure as important factors.

Round-up of non-traditional EU trade mark decisions in 2022

... This article provides an analysis of the following trade mark decisions issued in 2022. ... The decisions concern substantive and procedural aspects relating to the application of Article 7 of the EU Trade Mark Regulation (EUTMR) 2017/1001:1 ... ... ... The analysis of each decision is presented in accordance with the following template: (1) Summary (2) Background (3) Analysis (4) Practical and broader significance The European Union Intellectual Property Office’s (EUIPO’s) decision to reject a request for a declaration of revocation filed by Agrarfrost GmbH (the Cancellation Applicant), based on a lack of genuine use and alteration of distinctive character in respect of a three-dimensional EUTM in the form of a smiley face for ‘prefried potato croquettes and mashed potato products, deep-frozen’ in Class 29, owned by the McCain company (the Proprietor), was upheld by the General Court (GC).

The European Commission and the “Europeanisation” of EU trade diplomacy: the case of EU-China relations, 1999–2021

In recent times, the European Commission has shown to have increasing difficulty keeping up its central position in trade diplomacy towards China, in the face of a growing wariness and assertiveness of the member states. In this article, we observe a changing balance, a development from EU diplomacy towards European diplomacy, meaning a growing influence of EU member states in the process. We call this the “Europeanisation” of EU economic diplomacy. This is not limited to China and reflects a broader development, as is visible in the politicisation of the negotiation processes towards the (failed) Transatlantic Trade and Investment Partnership (TTIP) and the (provisionally applied) Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, and also in the trend towards mixed agreements that require member state ratification. However, it was particularly in the relations with China that such trends became visible for the first time and have continued to manifest themselves throughout the years. Apart from the member states assembled in the Council, also the European Parliament has strengthened its position in the process at the expense of the Commission.

Varieties of EU trade politicisation in EU public debates

AbstractThis paper examines the politicisation of EU trade policy at the level of the EU's Member States. In an effort to study the variation of politicisation across the EU, going beyond the degree to which an issue is politicised, we map out the debates surrounding EU free trade agreements (TTIP and CETA) in the media of Denmark, France, Germany, Italy, Spain and Poland, based on a novel representative claims analysis dataset. We ask whether and how claimants from different EUMS attempt to politicise FTAs in distinct ways. The expectation, based on Castles and Obinger' families of nations, is that the behaviour of claimants belonging to the same family of nations displays overarching features, which sets them apart from other claimants. By way of an actor‐level regression analysis, this study identifies possible correlations between claimant nationalities and types of politicisation. The findings suggest, on the one hand, that there is a link between families of nations, the socio‐economic and institutional trajectories they capture, and types of politicisation. On the other hand, the variation in how issues are politicised is not random but, just like policy outcomes, it appears to ‘cluster’ following a territoriality logic.

The Energy Transition, Protectionism and Transatlantic Relations

US President Joe Biden has worked to repair the damage done to the transatlantic relationship by his predecessor, quickly realigning the United States with Europe on issues of energy and climate change. However, the US Inflation Reduction Act (IRA) of 2022 introduced a raft of protectionist subsidies for US clean-energy industries and reignited tensions between the US and the European Union. The EU has warned that the IRA could damage the bloc’s industry and American critics suggest the act may trigger a new US–EU trade war. The Biden administration’s geopolitical internationalism is at odds with its geo-economic nationalism. The fact remains, however, that Europe is unlikely to be severely affected by the IRA. Moreover, European political leaders have threatened more aggressive responses to the IRA than they can deliver. A trade war is unlikely. It is more likely that booming green industries in the EU and US will open new avenues to cooperation between them.

The EU's strategic autonomy in times of politicisation of international trade: The future of commission accountability

AbstractTrade relations face unprecedented challenges, which has led to an increased politicisation and contestation of trade rules. In response, the EU has changed its trade policy under the motto ‘Open Strategic Autonomy’ towards a more assertive policy. The EU seeks to significantly expand its room of manoeuvre and to gain more autonomy by strengthening the enforcement of its trade rights and by ensuring more effectively, including unilaterally, a level playing field. This reorientation engenders several new or amended trade policy instruments, but meets with reservations as the renewed politicisation of EU trade policy will have internal consequences and raise demands for more democratic accountability of the European Commission. The new policy instruments will enlarge its leeway in trade policy. The future of the EU's multilateral, rule‐ instead of power‐oriented political stance becomes unclear, which might undermine its negotiation position in WTO reform and collide with the EU's respect for international law. The tensions of the EU's new hybrid approach with its international commitments even more fuel demands for increased accountability of the Commission as a safeguard against employing the new powers for protectionism and disrespect to international law. The contribution analyses the need for increased Commission accountability in the redirected trade policy.

Comparing Chinese and EU trade agreement strategies: lessons for normative power Europe?

This article compares the EU and China’s approaches to negotiating free trade agreements (FTAs). We show how China’s approach is more gradualist with regards to coverage of issues, and argue that this gives China advantages, which it leverages in later deals. While there are important differences in the scope and approach of EU trade negotiations, we argue that the EU could gain similar advantages by incorporating more Chinese-style gradualism to how it negotiates FTAs. Paradoxically, we argue that mirroring Chinese strategy in this regard could be used by the EU to secure very different ends from China’s such as normative reforms in the areas of human rights, the rule of law, and democratic government. More gradualism would allow the EU to scale up trade cooperation and regulatory convergence in an incremental manner while autocratic partner countries make democratic reforms, and would also enlarge the scope of more coherent positive conditionality.

The ‘Level Playing Field’ Metaphor: Revealing a Competitive Move in EU Free Trade Agreements

The European Union’s (EU’s) ‘New Generation’ Free Trade Agreements (FTAs) often contain ‘level playing field’ obligations. ‘Level playing field’ obligations, in this context, are minimum, reciprocal obligations usually with respect to taxation, state-aid, and both labour and environmental standards. This short article is not so much concerned with these obligations or their effect, as it is with the use of the ‘level playing field’ metaphor to describe them, specifically in the context of labour and environmental standards. Through an examination of the actual usage, meaning and context of the level playing field metaphor, the article analyses and rejects arguments that a commitment to a level playing field in fact indicates a change on the part of states away from ‘free’ trade to ‘fair’. Rather, it demonstrates that the level playing field metaphor, at least in the context of EU FTAs, in fact functions as a kind of linguistic disguise for a competitive move in trade agreements. Level Playing Field, EU Trade, Free Trade Agreements, Free Trade, Fair Trade, Sustainabilty, Labour, Environment, Metaphor, Cognitive Metaphor Theory