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81. Where next? The future of the UK-EU relationship

Author:
UK in a Changing Europe
Publication Date:
01-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
Six and a half years since the Brexit referendum, UK relations with the EU have still not settled into a coherent and consistent pattern. Partly, this is because the process of leaving itself took so long. Partly, too, because there is much still to resolve, not least whether the treaties signed will be fully applied. This report examines the contours of that relationship. It assesses both where we have got to and how the relationship might evolve. The reports sets out the state of play on trade, migration, public opinion, as well as the various party positions on the relationship. It also highlights the deadlines and decisions on the horizon in a number of areas, such as financial services, electric vehicles and fisheries. Finally, it examines the ways in which the TCA could be deepened, and steps that might be taken beyond the TCA – both unilaterally and through increased cooperation with the EU – concluding that changes to the relationship are likely to be slow and incremental.
Topic:
International Relations, Migration, Treaties and Agreements, Public Opinion, European Union, Economy, and Trade
Political Geography:
United Kingdom and Europe

82. Catastrophe: The Global Cost of the Ukraine War

Author:
Carl Conetta
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Project on Defense Alternatives
Abstract:
The war has been a disaster for Ukraine, but also a calamity for the world. This brief article provides a concise overview of the war’s profound global effects, beginning with the combatants’ cost in lives and treasure. Beyond this it assesses the war’s impact on global trade and economy; energy and food price inflation and their effects on poverty, hunger, and mortality; the redirection of humanitarian and official development assistance; the total sum of aid to the Ukrainian war effort, and the estimated cost of postwar reconstruction and recovery. Also examined is the war’s effect on global defense spending. The article also provides copious citations to support further inquiry.
Topic:
Economy, Trade, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

83. A Strategic Challenge: A Peddling Peril Index Analysis of Countries’ Restricted Russia Trade

Author:
David Albright, Sarah Burkhard, and Spencer Faragasso
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
National trade control systems and sanctions enforcement across the globe have been particularly challenged by Russia’s 2022 invasion of Ukraine, the unexpected types and number of goods to control, the need for rapid control of those items, and Russia’s determination to thwart others’ trade controls. The Russian situation demonstrates that even countries with strong strategic trade control systems have vulnerabilities. • In the aftermath of Russia’s invasion of Ukraine, the results of the Peddling Peril Index (PPI) for 2021/2022 provide a method to assess a total of 31 countries identified by their respective roles in the transshipment of restricted goods or the supply of dual-use goods used by the Russian military. • The purpose of this study is to identify patterns in these countries’ scores and lessons in finding ways of thwarting Russia’s success in violating sanctions and export controls.
Topic:
Sanctions, Exports, Trade, and Russia-Ukraine War
Political Geography:
Russia and Europe

84. The Lion, the Wolf Warrior and the Crossroads: UK-China Relations at a Turning Point

Author:
Matthew Brazil
Publication Date:
02-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In early 2018, UK Prime Minister Theresa May visited China with a British business delegation, seeking a free trade deal and expressing optimism over Beijing’s “one country, two systems” formula for governing Hong Kong (Global Times, January 31, 2018; Zaobao, January 31, 2018). In her first foreign trip since moving into 10 Downing Street, she promised that the “golden era of relations” between the UK and China would be even better after Brexit (Xinhua, February 1, 2018). Since May’s visit, however, a great deal has happened to move UK-China relations in the opposite direction, with the PRC’s suppression of mass demonstrations in Hong Kong (Global Times, July 29, 2020); the implementation of the 2020 Hong Kong National Security Law that London sees as a breach of “one country, two systems” (PRC Ministry of Foreign Affairs [FMPRC], June 12, 2020); the British riposte in offering a path to citizenship for Hong Kongers (Gov.cn, April 14, 2021); and the escalation of tensions between China and its trading partners, particularly the UK’s closest ally, America (FMPRC, September 24, 2021; Xinhua, October 5, 2021). The British establishment, like their American cousins, have changed tack on China of late. In June 2022, MI5 Director Ken McCallum and FBI Director Chris Wray gave a joint address warning business and academic leaders in Britain of the “massive shared challenge” posed by China (MI5, July 6, 2022). Two years earlier, McCallum said that if Russian behavior is like “bursts of bad weather,” then “China is changing the climate” (CIGI, June 2, 2022). Last November, Prime Minister Rishi Sunak, referring to UK-China relations, said that “the so-called ‘golden era’ is over, along with the naive idea that trade would lead to social and political reform” in the People’s Republic (ThePrint, November 29. 2022). Even the pro-engagement business weekly Beijing to Britain admits that no one in the UK Parliament “believes that an enriched Chinese middle class will steer the country towards democracy” (Beijing to Britain, January 24, 2021). Britain’s conundrum in stabilizing commercial relations with Beijing while heeding American sensibilities is as difficult as at any time since Nixon’s groundbreaking trip to China in 1972. Meanwhile in Beijing, the decades-old ordeal of striving to play the British off against the Americans has become an increasingly uphill battle. In fact, much of today’s menu of bilateral issues between London and Beijing, with the Washington factor always hovering in the background, might be familiar to Clement Atlee, Winston Churchill, Zhou Enlai and Mao Zedong. That brings some predictability to the rollercoaster ride of UK-China relations, but unsettling variables have changed the course of relations and pushed London, not to mention the rest of NATO, ever closer to Washington. Specific aspects of the PRC’s increasingly destabilizing and aggressive policies that have rankled London include the removal of Hong Kong as a centerpiece of the UK-China bilateral relationship; and Beijing’s announcement immediately prior to Russia’s full-scale invasion of Ukraine in February 2022, that “the Sino-Russian cooperation has no limits, no exclusion zone, no ceiling” (中俄合作没有止境 ,没有禁区,没有上限) (Global Times, December 24, 2021; Gov.cn, February 4, 2022).
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, and Trade
Political Geography:
China, United Kingdom, Europe, and Asia

85. Anti-fragmentation: an incomplete diagnosis and wrong solution

Author:
Marek Dąbrowski
Publication Date:
03-2023
Content Type:
Case Study
Institution:
Center for Social and Economic Research - CASE
Abstract:
A study by Marek Dąbrowski (CASE) entitled “Anti-fragmentation: an incomplete diagnosis and wrong solution”, requested by the European Parliament's Committee on Economic and Monetary Affairs (ECON), was published in the Monetary Dialogue Papers series in September 2022. Since the 1990s, the public debt-to-GDP ratio has gradually increased in almost all current euro area member countries. In most of them, it now exceeds the Maastricht reference value of 60%, in several of them – 100%, and in a few cases – even more. It creates a severe challenge to the stability of public finances, the entire financial system and monetary stability in the euro area being also the primary cause of the so-called fragmentation. The study begins with an analysis of the excessive public debt in the euro area. An overview of the fiscal stance in the euro area as a whole and, separately, in individual Member States from 1997 to 2021 is complemented with the analysis of mechanisms of fiscal discipline – again on the EU/euro area level and the national level separately. Three causes of the ineffectiveness of these mechanisms are then identified: (1) political economy factors at the national level; (2) political economy factors at the European level; and (3) fallacies of economic science. The next part concerns ECB involvement in the sovereign debt market in the euro area. A historical analysis is conducted starting from the period of the EFC (2010–2015) to quantitative easing of 2014-2022. Two important periods from recent history are detailed - additional quantitative easing of the pandemic era (2020–2022) and the turn towards monetary policy tightening in 2022. In the last part of the study, the author argues that the problem of “fragmentation” is wrongly formulated. It is a secondary symptom of the excessive sovereign indebtedness in some euro area economies. It should be remedied by fiscal policy measures (fiscal consolidation) rather than by the ECB’s quasi-fiscal activities. The latter is not consistent with its legal status, compromises its independence (and credibility of the euro), and undermines its ability to deliver on its price stability mandate. When a targeted market intervention is necessary, it should be provided by the European Stability Mechanism, the institution created for this purpose in 2012, instead of the ECB.
Topic:
Globalization, European Union, Finance, Trade, and Economic Integration
Political Geography:
Europe

86. Global value chains: Potential synergies between external trade policy and internal economic initiatives to address the strategic dependencies of the EU

Author:
Agnieszka Skowronek and Jan Hagemejer
Publication Date:
03-2023
Content Type:
Case Study
Institution:
Center for Social and Economic Research - CASE
Abstract:
Global value chains enable two-thirds of international trade, notably for the EU. The EU wants to preserve its commercial links with third countries and organisations to make up for trade disruptions. This study examines sustainable supply of raw materials, commodities, and critical goods using the EU's Open Strategic Autonomy concept. It examines which raw material are crucial for sustainable supply and necessary for the green transition. The paper examines EU internal legislation and international cooperation instruments to determine the EU's disruption risk. It evaluates the economic impact of EU preferential trade agreements on raw material availability. The study illustrates the political and economic relevance of raw material partnerships and plurilateral and bilateral trade agreements. It analyses the EU's toolbox for safeguarding its interests and making independent trade choices to counteract other actors' unfair practices and intervention. Finally, the paper examines regulatory frameworks, international alliances, and activities to find ways to strengthen global value chains in critical EU industries.
Topic:
Globalization, European Union, Trade, Global Value Chains, and Economic Integration
Political Geography:
Europe

87. Forests, foreign policy and trade

Author:
Johannes Weberling
Publication Date:
11-2023
Content Type:
Commentary and Analysis
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The EU’s Regulation for Deforestation-free Products (EUDR) marks an important milestone in addressing demand-side deforestation governance, being the first regulation targeting deforestation driven by agriculture. Yet it must be understood as more than an effort to protect the world’s forests – it showcases the European Commission unilaterally acting to promote values and policy ideas abroad. It displays issues of transnational social justice and power discrepancies, shedding light on shifting market power dynamics in global structures. And it questions the EU’s standing as a trustworthy partner on the international stage as well as its relationships with important producer countries. Analysing the EUDR from these angles offers valuable insights that can be transferred to other due diligence instruments that are currently being drafted or negotiated, such as the Corporate Sustainability Due Diligence Directive (CSDDD). Unilateral action may provide a semblance of control but is by nature limited in the depth of scope. As its market influence wanes, the need for the EU to position itself as a reliable partner becomes increasingly important. To prevent leakage, demand-side measures such as the EUDR must be paired with supply-side measures. The EUDR’s success will hinge on careful and efficient implementation, accompanied by meaningful consultations and engagements with producer countries. Overall, prioritising the external dimensions of such legislation must first and foremost uphold trust and strengthen collaborative relationships with partner countries.
Topic:
Foreign Policy, Regulation, Trade, Forest, and Deforestation
Political Geography:
Europe

88. EU's Trade Strategies and Korea-EU Cooperation Plans

Author:
Young-ook Jang
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Jang et al. (2022) investigate the recent shifts in the European Union's medium- to long-term trade strategies, which have evolved in response to a rapidly changing global trade landscape. We closely examine the policy domains currently in the EU's spotlight, including supply chain resilience, digitalization, tackling climate change, and public health crisis management. Another objective of this study is to identify opportunities for cooperation between Korea and the EU in the above-mentioned areas. Our recommendations include fostering partnerships in Net-zero technology development and multilateral climate discussions, modernizing digital trade agreements, and enhancing pharmaceutical cooperation.
Topic:
Economics, International Cooperation, Treaties and Agreements, European Union, Partnerships, and Trade
Political Geography:
Europe, Asia, and South Korea

89. Characteristics of calculating the power of states in Eastern Europe: a powermetric approach

Author:
Erwin Metera
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Nowa Polityka Wschodnia
Institution:
Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
Abstract:
The conducted research indicates the elements characteristic of power relations among states in Eastern Europe by describing them in mathematical terms. Using existing assumptions and resulting universal powermetric models, the study adapts them to the specifics of the region, enabling the implementation of the negative role of the imports of Russian energy resources in calculating the power of individual states. The role of trade links based on the two main energy resources – natural gas and crude oil – has been indicated. Imports of these raw materials from Russia, which constitute a significant part of the balance of resources used in the energy sectors of the importing countries, are the source of reduction of the geopolitical position of these states in the region, in relation to the position held by the Russian Federation. By taking into account the negative impact of trade in energy resources due to their use by the Russian Federation as a tool in achieving geostrategic goals, the conclusions obtained in the study allow for an increase in the accuracy of existing powermetric models in research on power distribution in Eastern Europe.
Topic:
International Relations, Geopolitics, Trade, Power, and Regional Politics
Political Geography:
Russia, Europe, and Eastern Europe

90. NERINT Strategic Analysis: The Brazilian Challenge of Reactivating UNASUR and Strengthening MERCOSUR

Author:
Leonardo Granato
Publication Date:
06-2023
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
In his third presidential term, President Lula has been devoting a large part of his government agenda to foreign policy, aimed at strengthening the country’s capacity to advance its interests and, within the aforementioned public policy, at rebuilding integration relations with neighboring countries. Faced with the spread of nationalism and protectionist postures in the midst of a complex international scene marked by the impacts of the Covid-19 pandemic, the war in Ukraine, and tensions between the United States and China, the Brazilian option is for the defense of peace, dialogue and cooperation, starting with its strategic environment represented by South America and Mercosur.With regard to the South American region, the Brazilian government’s ability to convene and unify perspectives was challenged by the heterogeneity of agendas and priorities of different countries, even among countries with progressive governments. In fact, the so-called “Consensus of Brasilia”, a joint declaration resulting from the presidential meeting of May 30, 2023, highlights the size of the aforementioned challenge, since there was no mention, in that declaration, of the Union of South American Nations (UNASUR) and its reactivation. Faced with its dismantling during the Bolsonaro government, carrying forward the Brazilian government’s priority objective of reactivating UNASUR will require, perhaps more than in the past, a broad effort to build consensus.With regard to Mercosur, also under a setback in recent years, Brazil will play, during the second half of 2023, the pro-tempore presidency of the bloc, which will represent the opportunity for the Brazilian state to project its foreign policy priorities, as well as the principles that guide its internal public policies. In President Lula’s own speech at the 62nd Mercosur Summit, which took place in Puerto Iguazú (Argentina) on July 4, 2023, the major issues to be privileged during his tenure at the head of the bloc were portrayed. Such matters refer, essentially, to the strengthening of Mercosur in its multiple dimensions, and to the conclusion of the bi-regional agreement with the European Union.
Topic:
Foreign Policy, Markets, Treaties and Agreements, Trade, and Lula da Silva
Political Geography:
Europe, Brazil, and South America