european union: foreign trade policy

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Foreign and Foreign Trade Policy of European Union

FOREIGN AND FOREIGN TRADEA C Ramana ReddyM Siddhardha1FOREIGN POLICY-CFSPOrganised and agreed foreign policy of EU

EUs defence agreed as responsibility of NATO according to CFSP

CFSP deals with international issues of political or diplomatic nature, including issues with a security or military orientation

CFSP-GENERAL STRUCTURECommon Foreign And Security Policy

Institutions involved and acting bodies

Common Security and Defence Policy(CSDP)

Common Commercial Policy

Humanitarian aid and Development assistance

Neighbourhood policy

Relations with US, NATO etc.

DEVELOPMENT THROUGH TREATIES1970 European Political Cooperation1992 Maastricht TreatyCommon Foreign and Security Policy1997 Amsterdam TreatyHigh Representative for CFSP2000 Nice Treaty2009 Lisbon Treaty

EUROPEAN POLITICAL CO-OPERATION(EPC)Established in 1970 through Luxembourg Report

Intergovernmental forum, outside European community

Copenhagen Summit in 1973, London report in 1981 strengthened the EPC

The Single European Act (SEA) of February 1986 institutionalised the EPC and established a small permanent secretariat in Brussels to assist the PresidencyMAASTRICHT TREATYMaastricht Treaty replaced EPC with the Common Foreign and Security Policy. The Treaty introduced the three-pillar system, with the CFSP as the second pillar which involves an intergovernmental decision-making process which largely relies on unanimity. The Council of foreign ministers will decide Common Positions and Joint Actions, and QMV can be used to implement the latter. The Commission can initiate proposals and the Court of Justice has no say in this area. AMSTERDAM TREATYA security and defence policy dimension was added to the second pillar.A new foreign policy instrument namely common strategies was added to the existing ones.Petersburg tasks of the WEU were integrated into the Treaty on European Union .The position of a High Representative for CFSP and Secretary General of the Council was established; to contribute to the formulation, preparation, and implementation of foreign policy decisions as well as to act on behalf of the Council in the international affairs.The High Representative also heads a new Policy Planning and Early Warning Unit.

7TREATY OF NICEsecurity and defence policy provisions were transformed into an independent policy, the so-called European Security and Defence Policy (ESDP).The EU thus fulfilled the institutional prerequisites to execute the Petersburg tasks on its own and conduct both civil and military crisis management. Political and Security Committee (PSC), the Military Committee (EUMC) and the Military Staff (EUMS), and the Politico-Military Group (PMG), the Committee for Civilian Aspects of Crisis Management (CIVCOM).introduced the possibility of establishing enhanced cooperation LISBON TREATYTwo major innovations:the creation of the High Representative of the Union for Foreign Affairs and Security Policy and the European External Action Service;the development of the Common Security and Defence Policy.Abolition of the 2nd pillar of the old EU StructureInstruments of the CFSP replacedRole of the court of justiceFinancing the CFSPCFSP-CURRENT SCENARIO

CFSP CURRENT OBJECTIVESSafeguard the common values, fundamental interests, independence and integrity of theEUin conformity with the principles of theCharter of UN

Strengthen the security of the Union in all ways

Preserve peace and strengthen international security, in accordance with the principles of the Charter of UN, as well as the principles of theHelsinki Final Actand the objectives of theParis Charter including those on external borders

Promote international co-operation

Develop and consolidate Democracy and Nomocracy and respect for human rights and fundamental freedoms11CFSP-MAIN ELEMENTSHigh Representative

European External Affairs Service(EEAS)

Common Security and Defence policy(CSDP)

Policies like ENP, EuropeAid etc.

Other entities like FAC,PSC,EUMC etc.CFSP-POLICY TYPESPrinciples, general guidelines and common strategies of CFSP defined by the European Council

Joint actions and Common positions taken by Council of Ministers

Joint actions are situation specific and address circumstances where EU actions are obligatory

Common positions define the approach of EU in matters of thematic nature and define general guidelines to which national policies ought to comply with in the abstract of CFSP

HIGH REPRESENTATIVEAuthority additional to the President of European Council

Made distinct from the Secretary General of COM from Lisbon Treaty

Addresses on behalf of EU in agreed foreign policy matters of EU with other countries


Holds various responsibilities within EU

- Head of EEAS and delegations - President of FAC and EDA - Responsible for European Union Special Representatives - Chairperson of board of EUISS

Reporting authority of bodies related to CFSP and also articulates ambiguous policy positions created by disagreements among member states

Catherine Ashton, HR-EUEUROPEAN EXTERNAL ACTION SERVICE(EEAS)Also established following the Lisbon Treaty and formally launched after one year(2010)

Serves as foreign ministry and corps diplomatique for EU aiding to implement CFSP and EUs external representation

Under the authority of HR for assistance

EEAS-STRUCTUREFunctionally autonomous from other EU bodies but is responsible for consistency of its policies with those of other EU bodies in merging areas

Staff include members from Council and Commission and diplomatic services of member states taken directly by the HR



Domain of EUs policies covering defence and military aspects and civilian crisis management

Formed and developed by the European Council formally

Currently handled by the High Representative and EEAS with inputs from others

CSDP-ACTIONSOperations carried out by organisations such as EDA, PSC,EUMS and CMPD etc.

Several ongoing civilian missions and military operations in various parts of world curbing threat to EU and its interests.


EUROPEAN SECURITY STRATERGYProvides conceptual framework for enaction of CSDP

Titled A secure Europe in a better world, ESS was adopted to enunciate five key challenges faced by EU viz. Terrorism, Proliferation of Weapons of Mass Destruction, Regional conflicts, State failure and organised crime

Several strategies formed and adopted for taking measures against the challengesOTHER BODIES INVOLVEDThe Foreign Affairs Council(FAC) Advisive body for policy proposal for enaction by the HR and EEAS

The Political and Security Committee(PSC) Monitory of international situation in the areas covered by the CFSP and implementation of agreed policies Also contributes in delivering opinions to the COM, either at its request or its own initiative

European Defence Agency(EDA) Takes care of military research, international market for military and weapons technology and encourages the defence capabilities

23OTHER BODIES INVOLVEDEuropean Union Military Service(EUMC) Highest military body within the council comprising of Chiefs of Defence of each member state acting as advisory on all military matters within the EU

Crisis Management & Planning Directorate(CMPD) Political-strategic planner of CSDP civilian missions and military operationsOTHER BODIES INVOLVEDEuropean Union Institute of Security Studies(EUISS) and European Union Satellite Centre(EUSC) are institutions of research and development with a mission to find common security culture of EU

The former researches security issues of relevance to EU and provides a form of debate and the latter provides input in the form of satellite imagery and collateral data


Development and Co-operation-EuropeAid

Human Rights and Humanitarian Aid

Conflict Prevention, Peace building and Mediation

Non-proliferation, disarmament and export control

Global ChallengesEuropeAidDirectorate-General in the Commission, unified in 2011, aimed for extending development and co-operation to countries in need

Thematic classification of areas to offer support using several financial and assistive instruments

INTERNATIONAL ACTIONSHuman rights are treated universal and indivisible. Efforts are made to promote and defend them both internally as well as while engaging in treaties

Conflict prevention and mediation by the efforts of EEAS and following the ideology of promoting peace

INVOLVEMENT IN GLOBAL CHALLENGESIncreasing efforts are made in tackling the global challenges such as Sustainable energy, Global warming, Environment conservation etc.


INTRODUCTION in World TradeEU constitutes the largest trading bloc in the world accounting for more than a fifth of global imports and exports. World largest exporter and the second largest importer of goods.The EU is the largest economy in the world with a GDPper head of 25 000 for its 500 million consumers.The EU ranks first in both inbound and outbound international investments.The EU is the top trading partner for 80 countries.

10 major EU export partners (2012)

10 major EU import partners (2012)

EU's investments in the world

Sources: Eu


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