The new trade and development agenda of the European Union

The European Union has always used trade policy measures for development objectives. But the design and content of the EU's ‘trade and development’ relations have changed considerably during the past five decades. This paper focuses on the most recent changes in the Union's common commercial policy vis-à-vis the South, looking at three levels: The EU role in the multilateral negotiations of the WTO Doha Development Agenda, Europe's bilateral trade agreements with third countries and regions and its unilateral market access schemes through the Generalised System of Preferences. Although historical factors continue to determine the EU's position in these areas, a relatively new European trade and development agenda can be discerned. More specifically, it is argued that two trends have underlined recent changes in this area. First, there is a drive towards reciprocal trade relations, in line with the WTO regime. Even Europe's unilateral and bilateral trade relations are increasingly streamlined with the multilateral trade rules. Second, there is a growing emphasis on regulatory issues, capacity building and aid for trade. This new and broad trade agenda illustrates the European position that promoting free trade is not sufficient for economic development of the South. However, the paper concludes that the EU's new commercial policies are not consistently development oriented, and that more coherence between trade and aid policies would be needed.