From bottom of the pyramid to top priority: Explaining Asia in the EU’s Free Trade Agreement (FTA) Strategy

Abstract

Over the past two decades the economic relations between the European Union and Asia have increased exponentially, yet policy responses have lagged behind. Tracing EU official documents since the mid-1990s, this paper shows how the EU continues to perceive its position in Asia as weak, and how it has been shaped by USA actions in the region, and competitiveness concerns. The paper focuses on current trends in free trade agreement negotiations and argues that the EU’s policy has been guided by fear of competition with the USA, and to a lesser extent with Japan and China. A short case study section compares the EU and USA FTAs with South Korea (the only ones finalized thus far) and shows how their similar content reveals a game of competition and of preventing future discrimination. A final section draws some implications from this case study for ongoing negotiations in the region.

Keywords

• competition
• eu-asia
• eu external relations
• free trade agreements
• negotiations
• trade policy