The establishment and development of the European Union and its trade policy

The chapter begins with a brief historical overview of the principal catalysts, both economic and political for European economic integration, before moving on to discuss the theoretical foundations of economic integration and the economic and trade implications of the Treaty of Rome. The chapter then proceeds to outline the development of the EU’s trade policy and how this was affected by its deepening and widening, as well as the impact international factors had on that process. The principal areas of EU trade policy are also covered – in particular its multilateral aspects, its bilateral and plurilateral arrangements and its unilateral policy covering the Generalised Scheme of Preferences or GSP. The chapter concludes with a discussion of the future direction and re-calibration of the EU’s trade policy towards relationships with Far Eastern economies via its ‘Trade for All’ policy document.