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The Pursuit of Non-Trade Policy Objectives in EU Trade Policy

Author

Listed:
  • Ingo Borchert
  • Paola Conconi
  • Mattia Di Ubaldo
  • Cristina Herghelegiu

Abstract

The European Union (EU) often conditions preferential access to its market upon compliance by its trading partners with Non-Trade Policy Objectives (NTPOs), including human rights and labor and environmental standards. We systematically document the coverage of NTPOs in EU trade agreements and in its Generalized System of Preferences (GSP). We then examine the extent to which trade agreements and GSP programs can be used to promote NTPOs. Preferential trade agreements are negotiated under multilateral rules, which require members to eliminate all tariffs reciprocally. As a result, once a trade agreement enters into force, the EU cannot easily restrict or extend access to its market so as to “punish bad behavior” or “reward good behavior” on NTPOs by its trading partners. By contrast, GSP preferences are granted on a unilateral basis, so they can be limited or extended, depending on compliance with NTPOs. EU GSP programs can thus provide a carrot-and-stick mechanism to promote NTPOs in partner countries.

Suggested Citation

  • Ingo Borchert & Paola Conconi & Mattia Di Ubaldo & Cristina Herghelegiu, 2020. "The Pursuit of Non-Trade Policy Objectives in EU Trade Policy," Working Papers ECARES 2020-09, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:eca:wpaper:2013/304060
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    Cited by:

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    3. Mattia Ubaldo & Steven McGuire & Vikrant Shirodkar, 2022. "Voluntary programs and emissions revisited: What is the effect of EU trade agreements with environmental provisions?," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 467-489, December.
    4. Di Ubaldo, Mattia & Gasiorek, Michael, 2022. "Non-trade provisions in trade agreements and FDI," European Journal of Political Economy, Elsevier, vol. 75(C).
    5. Khorana, Sangeeta & Caram, Santiago & Biagetti, Marco, 2021. "Developmental relevance of Everything but Arms: Implications for Bangladesh after LDC graduation," MPRA Paper 116258, University Library of Munich, Germany.
    6. Birgit Meyer & Isabel Pham, 2023. "Menschenrechte und Lieferketten. Ein Überblick über Sorgfaltspflichten entlang von Lieferketten in österreichischen Unternehmen," WIFO Studies, WIFO, number 71233, March.
    7. Di Ubaldo, Mattia & Gasiorek, Michael, 2022. "Non-trade provisions in trade agreements and FDI," European Journal of Political Economy, Elsevier, vol. 75(C).
    8. Suttner, Stefan, 2023. "Issue linkage and trade policy uncertainty: Evidence from trade preferences for developing countries," FAU Discussion Papers in Economics 07/2023, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    9. Ayele, Getaneh Mihret, 2021. "The Effect of Everything But Arms Trade Preference on the Exports of Ethiopia: Empirical Evidence Using Gravity Model," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 30(02), October.

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    More about this item

    Keywords

    Trade Agreements; GSP; Conditionality; Non-Trade Policy Objectives;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K38 - Law and Economics - - Other Substantive Areas of Law - - - Human Rights Law; Gender Law; Animal Rights Law

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