Trade and peace: the EU and Gaddafi’s final decade

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Non-Chatham House members can subscribe via Wiley-Blackwell. Electronic access to the full text of the article via the source url above is only available if you (or the network by which you access ESO) already subscribes to Wiley-Blackwell and your network uses a link resolver.This article examines the effectiveness of the EU's use of trade to induce peace in Libya during Gaddafi's final ten years in power, between 2001 and 2011. During this period, the EU implored and reiterated through rhetoric, policy and the exchange of goods and services that trade was to be used as a tool to maintain peace and prevent conflict. Indeed, this peace-through-trade assumption is at the heart of the EU, which was founded on the notion that economic interdependence ameliorates potential causes of conflict.

Initially, this article embeds its argument in the theory concerned with the relationship between trade and peace, followed by tracking the development of the EU's policy. The main body of the article then provides evidence which goes against the assumption that the trade–peace relationship is positively correlated. Specifically, it is argued that the EU's peace-through-trade policy failed in this instance due to the fact that it failed to take into account the Libyan context: namely, the Middle Eastern state's ethnographic and historical makeup; the weapons of mass-destruction programme and the subsequently induced sanctions; Gaddafi's rule and attempts at reform; as well as the 2011 conflict. All these factors amalgamated to ongoing conflict in Libya during Gaddafi's final decade in power despite EU–Libyan trade continuing to take place during this timeframe.