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

Ingo Borchert, Paola Conconi, Mattia Di Ubaldo and Cristina Herghelegiu

No 2020-09, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

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.

Keywords: Trade Agreements; GSP; Conditionality; Non-Trade Policy Objectives (search for similar items in EconPapers)
JEL-codes: F13 F50 J80 K32 K38 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2020-04
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Pursuit of Non-Trade Policy Objectives in EU Trade Policy (2021)
Working Paper: The Pursuit of Non-Trade Policy Objectives in EU Trade Policy (2020)
Working Paper: The Pursuit of Non-Trade Policy Objectives in EU Trade Policy (2020)
Working Paper: The Pursuit of Non-Trade Policy Objectives in EU Trade Policy (2020)
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