Europe’s market liberalization is a bad model for a global trade agenda

Article is part of a special issue, ‘The European Union and the new trade politics’.

Abstract:

European Union (EU) policy-makers use the single European market as a model for extending the global trade liberalization agenda, specifically to encompass flanking issues ranging from environmental sustainability to labour market regulation to social protection. They thus seek to transform the traditional multilateral trade liberalization agenda into a more comprehensive framework for global economic integration. The problem is that the single market has succeeded primarily insofar as it is European and not global in scope. Although multilateral negotiations have reduced tariffs and quotas, they are much less successful at embracing a wider agenda. Three conclusions are suggested: global trade liberalization should focus on a shallow agenda of economic issues; any ‘deeper’ pattern encompassing labour market, social, and environmental concerns is more likely to succeed at the regional level (or in bilateral agreements); and the challenge for the future is to resolve disputes between national, bilateral, and regional institutions – perhaps best through the World Trade Organization (WTO).