The normative dimension of the EU’s trade policy: High expectations, questionable outcomes?

In recent years, the European Commission’s trade policy strategy shifted from the multilateral system towards a more bilateral approach with the new generation FTAs. Furthermore, the strategy shifted the underlying incentives for trade from solely economic interests towards an approach that embraced more normative goals, for example standards for environmental and labor market issues. Within the literature, the debate regarding the nature of the EU’s trade policy contemplates this dilemma and seeks to clarify how Trade and Sustainable Development chapters function within trade policy. The dilemma is what has been described within the literature as the norms versus interests debate. Within this debate, the concepts of Normative Power Europe and Market Power Europe play a central role in defining the identity of the EU’s power. Both concepts have been incorporated within studies into the role of norms and economic incentives within the EU’s foreign policy. A large share of these...Show moreIn recent years, the European Commission’s trade policy strategy shifted from the multilateral system towards a more bilateral approach with the new generation FTAs. Furthermore, the strategy shifted the underlying incentives for trade from solely economic interests towards an approach that embraced more normative goals, for example standards for environmental and labor market issues. Within the literature, the debate regarding the nature of the EU’s trade policy contemplates this dilemma and seeks to clarify how Trade and Sustainable Development chapters function within trade policy. The dilemma is what has been described within the literature as the norms versus interests debate. Within this debate, the concepts of Normative Power Europe and Market Power Europe play a central role in defining the identity of the EU’s power. Both concepts have been incorporated within studies into the role of norms and economic incentives within the EU’s foreign policy. A large share of these studies agrees that within trade policy, norms are subordinate to economic incentives. The push for a more normative agenda, however, is gaining traction within the EU and has led to more attention from various actors for normative arguments. In recent years, the mobilization of actors and institutional changes in the process have given more weight to the normative argument. This thesis is thus researching how a more recent agreement has been influenced by this process: the EU-Vietnam free trade agreement. In this case study, it will become evident that the extent to which norms are being incorporated in FTAs and the degree of effectiveness of their enforcement is rather absent. The EP and NGOs voiced concerns regarding human and labor rights at various stages during the process. This led to the Commission developing alternate initiatives to address human rights issues within Vietnam, such as a roadmap within which the Vietnamese committed to ratify conventions of the International Labour Organisation. However, the roadmap is not enforceable through the FTA and other enforcement tools remain relatively weak within the eventual agreement. The conclusion can be drawn that there have been attempts to influence the Commission’s normative agenda through various institutional channels. These attempts at influencing the process might have set a precedent for future FTAs that might become more effective compared to this case.Show less

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The normative dimension of the EU’s trade policy: High expectations, questionable outcomes?