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131. The Good, the Bad and the Ugly: Taking Stock of Europe’s New Trade Policy Strategy

Author:
Fredrik Erixon
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This Policy Brief takes stock of the EU Trade Policy Review – the Commission’s proposed strategy for trade. Despite appearances, the Review doesn’t come close to its billing as a strategy for the new geopolitics of trade. In fact, the Review is weak on key geopolitical developments and rather gives the impression that the EU doesn’t have an ambition to shape outcomes. Obviously, the Review is anchored in Europe’s general economic climate: defensiveness on globalization, competition and digitalization. It follows that Europe is getting increasingly detached from world developments. There are several good parts in the Review. The Commission wants to revive and reform the World Trade Organisation, and it’s clear about what factors that have made the Geneva-based trade body dysfunctional. The Review also acknowledges that the EU will seek a closer alliance with the United States and use that for constructive purposes. Finally, it is welcome that the Commission proposes some new instruments for dealing with market distortions caused by foreign subsidies and protectionism in government procurement. All these initiatives can achieve good outcomes. However, they all require that Europe makes changes in its own policies and positions. The bad parts in the Review are Europe’s weak agenda for getting better market access in the growth regions in the world and its continued passivity on matters related to China. Europe’s main trade-policy challenge in the next decade is to ensure that businesses and consumers in Europe get better integrated with a world-market dynamism that predominantly will come from the Asian region. Absent a realistic and medium-term strategy for dealing with challenges connected to the rise of China, Europe will have difficulties getting the EU-China Comprehensive Agreement on Investment approved. Europe needs an actionable agenda for addressing bilateral frictions with China and problems that occur outside bilateral trade. Finally, the ugly part of the trade strategy are all the commercial policies in the EU – with strong effects on trade – that aren’t recognized or only casually mentioned in the Review. The latter category includes the ambition to introduce an autonomous carbon border tax on imports. Such a policy comes at a high political and economic cost, and the measure’s effect on reducing global carbon emissions is at best very negligible.
Topic:
Globalization, International Political Economy, International Trade and Finance, Treaties and Agreements, European Union, Geopolitics, Digital Economy, and Trade
Political Geography:
Europe

132. How Russia Does Foresight: Where is the world going?

Author:
Andrew Monaghan
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Thinking about the long-term future is a prominent feature of the Russian official strategic planning and public policy debate. Speaking in 2008, for instance, President Putin indicated the horizons of strategic planning when he stated that a concrete development plan for the period through to 2010 had been elaborated, and “now we need to look beyond this horizon – look at least 10 years ahead”. “Today we are deciding one of the most important issues for Russia’s future – defining its development strategy through to 2020”, he stated, and in setting out Russia's long-term vision for the future, "our long-term references must be clear to everyone”, and “must have the support of our citizens.” By the mid-2010s, policy-oriented public organisations were looking even further ahead. The Valdai Club, for instance, was conducting a project entitled Club 2035, to “look beyond the horizon” at a number of themes, including technological and socio-cultural trends, and the Russian International Affairs Council (RIAC) was running a “World in 100 Years” project, including the series “On the eve of 2037”. Other major institutes, such as the Institute of World Economics and International Affairs (IMEMO) and the Moscow State Institute of International Affairs (MGIMO), also hold regular major events and publish substantial volumes reflecting on twenty-first century megatrends and strategic forecasting up to 2030 and beyond.
Topic:
Defense Policy, Energy Policy, European Union, and Geopolitics
Political Geography:
Russia, Europe, and Eurasia

133. Fish and ships: Chinese fishing and Europe’s Indo-Pacific strategy

Author:
Frédéric Grare
Publication Date:
08-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
The fisheries sector has become a central geopolitical issue in the Indo-Pacific. China is a major cause of the problems in the industry, thanks to the size of its fleet and the tonnage of its captures. China also contributes to the erosion of ocean governance through its participation in illegal, unreported, and unregulated fishing. Beijing instrumentalises its fishing fleet for geopolitical gain, as evidenced by its policy on the South China Sea. These predatory fishing activities threaten Europe’s geopolitical and geo-economic interests, as well as its attempts to protect marine biodiversity. Europe cannot be a bystander on the issue; it should develop a more proactive policy on fisheries.
Topic:
Geopolitics, Fishing, Strategic Interests, and Biodiversity
Political Geography:
China, Europe, Asia, and Indo-Pacific

134. Power play: Europe’s climate diplomacy in the Gulf

Author:
Cinzia Bianco
Publication Date:
10-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Gulf monarchies believe hydrocarbons will continue to be a fundamental – albeit shrinking – source of revenues for decades. But, as shown by Saudi Arabia’s net-zero pledge, they now see economic and political opportunities in embracing the green energy transition. If the EU is to achieve its climate and geopolitical goals, it will need to substantially increase its engagement with Gulf states on the European Green Deal. Electricity interconnection and green hydrogen are the two most promising fields of clean energy cooperation between the sides. Europeans should not cave to international pressure to lower their ambitions on carbon taxation, including the carbon border adjustment mechanism, as this remains a powerful incentive for hydrocarbons producers to make the transition to cleaner energy.
Topic:
Climate Change, Energy Policy, European Union, Geopolitics, Engagement, Carbon Tax, and Carbon Emissions
Political Geography:
Europe, Middle East, and Gulf Nations

135. Geo-tech politics: Why technology shapes European power

Author:
Ulrike Franke and José I. Torreblanca
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
New technologies are a major redistributor of power among states and a significant force shaping international relations. The European Union has for too long seen technology primarily through an economic lens, disregarding its implications for its partnerships and for its own geopolitical influence. If the EU wants to be more than a mediator between the two real technological powers, the United States and China, it will need to change its mindset. For the EU and its partners, the vulnerabilities created by battles over technology divide into two types: new dependencies and openness to foreign interference. The EU and its member states need deeper engagement with the geopolitical implications and geopolitical power elements of technology. This engagement has an external element of reaching out to partners and an internal element of ensuring close cooperation between the EU and its member states.
Topic:
Science and Technology, European Union, and Geopolitics
Political Geography:
China, Europe, and United States of America

136. Europe’s green moment: How to meet the climate challenge

Author:
Susi Dennison, Rafael Loss, and Jenny Söderström
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
EU member states are publicly committed to the European Green Deal, but are divided over the details of its implementation. They have different views on issues such as the proposed carbon border adjustment mechanism, the role of nuclear energy in Europe’s future energy mix, bridging technologies in the transition to net zero, and the socio-economic consequences of closing down carbon-intensive industries. Member states are not divided into two diametrically opposed camps but rather agree or disagree with one another in varying constellations. This makes the implementation of the European Green Deal an intricate puzzle – yet achievable if coalitions of states push one another to implement its constituent parts. The EU needs a strong foreign policy strategy to manage the geopolitical dimension of the deal and to generate the political resolve to drive climate action. The bloc also needs to mitigate the socio-economic challenges of implementing the European Green Deal if the effort is to succeed.
Topic:
Climate Change, European Union, Geopolitics, and Green Deal
Political Geography:
Europe

137. Network effects: Europe’s digital sovereignty in the Mediterranean

Author:
Matteo Colombo, Federico Solfrini, and Arturo Varvelli
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Undersea internet cables are critical infrastructure as important as gas and oil pipelines, and are becoming a focus of growing geopolitical competition. Throughout the EU’s wider neighbourhood, geopolitics influences states’ decisions about who is allowed to build internet infrastructure and where they can do so. China and the US differ in their approaches, but both are racing ahead of the EU in their influence over internet infrastructure and the states that depend on it. The EU has the ambition and potential to become a sovereign digital power, but it lacks an all-encompassing strategy for the sector, in which individual governments are still the key players. The EU should set industry standards, help European telecommunications companies win business abroad, and protect internet infrastructure against hostile powers.
Topic:
Infrastructure, European Union, Geopolitics, Internet, and Digital Sovereignty
Political Geography:
China, Europe, United States of America, and Mediterranean

138. Spoiler alert: How Europe can save diplomacy in Libya

Author:
Tarek Megerisi
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Key European states need to make Libya a shared foreign policy priority, and to overcome their competing approaches to the country. Europeans must reinvigorate the UN political track and use it to reinforce a unified national structure rather than entrench competing administrations. They should focus on protecting Europe’s core interests in Libya: sustainably ending the conflict, creating a reliable local partner, and preserving European influence. To make the UN process work, Europeans should take a more hands-on approach to blocking and isolating domestic and international spoilers, refocusing the political track on unifying objectives, and supporting security sector reform. Europeans should also provide stabilisation, technical, and diplomatic support to strengthen Libya’s governance and accountability mechanisms, which are needed to ensure a new government can successfully hold elections in December 2021.
Topic:
Foreign Policy, Diplomacy, United Nations, European Union, and Geopolitics
Political Geography:
Europe and Libya

139. The geopolitics of the European Green Deal

Author:
Mark Leonard, Jean Pisani-Ferry, Jeremy Shapiro, Simone Tagliapietra, and Guntram Wolff
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
The European Green Deal will have profound geopolitical repercussions, some of which are likely to have an adverse impact on the European Union’s partners. The EU should prepare to manage these repercussions in its relationships with important countries in its neighbourhood such as Russia and Algeria, and with global players such as the United States, China, and Saudi Arabia. The bloc should engage with oil- and gas-exporting countries to foster their economic diversification, including into renewable energy and green hydrogen that could be exported to Europe. The EU should improve the supply security of critical raw materials and limit its dependence on other countries – primarily on China – for these materials. It should work with the US and other partners to establish a ‘climate club’ whose members would apply similar carbon border adjustment measures. The EU should become a global standard-setter for the energy transition, particularly in hydrogen and green bonds. It should internationalise the European Green Deal by mobilising the EU budget, the EU recovery fund, and EU development policy. The EU should promote global coalitions for climate change mitigation, such as one to protect the permafrost. The bloc should promote a global platform on the new economics of climate action, to share lessons learned and best practice.
Topic:
Foreign Policy, Climate Change, European Union, Geopolitics, and Green Deal
Political Geography:
Europe

140. Useful enemies: How the Turkey-UAE rivalry is remaking the Middle East

Author:
Asli Aydıntaşbaş and Cinzia Bianco
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Turkey and the United Arab Emirates are engaged in a decade-long feud that is reshuffling the geopolitical order in the Middle East and North Africa. They see each other as existential rivals and are waging a series of proxy wars between the Horn of Africa and the eastern Mediterranean. Their rivalry also plays out in the halls of Washington and Brussels, the global media discourse, the energy industry, and, lately, ports and the high seas. Europe should avoid being sucked into this power struggle to redefine the Middle East and North Africa. Instead of using the UAE to push back against Turkey or vice versa, Europe should develop its own strategy on their rivalry. Europe should establish a NATO deconfliction mechanism, push ahead with the political process in Libya, and design a constructive new framework to insulate European-Turkey relations from the rivalry.
Topic:
International Relations, Foreign Policy, Power Politics, Geopolitics, Strategic Competition, and Rivalry
Political Geography:
Europe, Turkey, Middle East, and United Arab Emirates