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The pursuit of non-trade policy objectives in EU trade policy

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journal contribution
posted on 2023-06-09, 23:56 authored by Ingo BorchertIngo Borchert, Paola Conconi, Mattia Di UbaldoMattia Di Ubaldo, Cristina Herghelegiu
The European Union (EU) often conditions preferential access to its market on compliance with Non-Trade Policy Objectives (NTPOs), including human rights and labor and environmental standards. In this paper, we first systematically document the coverage of NTPOs across the main tools of EU trade policy: its (association and non-association) trade agreements and Generalized System of Preferences (GSP) programs. We then discuss the extent to which the EU can use these tools as a ‘carrot-and-stick’ mechanism to promote NTPOs in trading partners. We argue that, within trade agreements, the EU has limited scope to extend or restrict tariff preferences to ‘reward good behavior’ or ‘punish bad behavior’ on NTPOs, partly because multilateral rules require members to eliminate tariffs on substantially all trade. By contrast, GSP preferences are granted on a unilateral basis, and can thus more easily be extended or limited, depending on compliance with NTPOs. Our analysis also suggests that the commercial interests of the EU inhibit the full pursuit of NTPOs in its trade agreements and GSP programs.

Funding

RESPECT- Realizing Europe's Soft Power in External Cooperation and Trade; G2321; EUROPEAN UNION; 770680

History

Publication status

  • Published

File Version

  • Accepted version

Journal

World Trade Review

ISSN

1474-7456

Publisher

Cambridge University Press

Page range

1-25

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2021-05-26

First Open Access (FOA) Date

2021-06-17

First Compliant Deposit (FCD) Date

2021-05-26

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