Efficient Multilateralism or Bilateralism? The TTIP from an EU Trade Policy Perspective

Abstract

Abstract:The EU bilateral trade strategy since 2006, including the TTIP, has been justified by the European Commission on the bases that deep and comprehensive trade agreements are compatible with efficient multilateralism. The Commission argument is the following: in a context marked by international supply-chains, preferential agreements that allow for progress on what has been achieved at the multilateral level (topics WTO +) and in areas not already covered by the WTO (items WTO-X) may be considered as a stepping stone, not a stumbling block for multilateral liberalization. In other words, EU recent bilateral negotiations and agreements should be seen at worst as complementary to multilateral negotiations and at best as promoters. This paper challenges this argument by pointing out that the multilateralization potential of a bilateral agreement may not be a sufficient condition for compatibility between the bilateral and multilateral approaches. Their complementarity may also be influenced by what is happening at the multilateral level. Content analysis of a primary source of information -the Bridges Weekly reports -shows that there has been a change in EU actions in the Doha Round towards Brazil, India and China since 2009. Though the EU did not preclude the inclusion of these emerging powers in the high table of negotiations at any time and was in favour of the Bali agreement of 2013, its willingness to respond to their demands reached a plateau in 2008. That may signal a change in the nature of its bilateral strategy. Indeed, from 2006 until 2009 the EU may have sought bilateral partners among new important trade players (India, ASEAN and South Korea) to complement or even facilitate a multilateral agreement. Since then, however, the EU may have focused on reaching agreements with even more important trade partners: the old Quad members (Canada, Japan and the USA) as a way to ensure the market access opportunities that it cannot longer expect to obtain from the Doha Round. Following this analysis, the TTIP should be read, at least in the short time, as an example of efficient bilateralism.. JEL Codes: F13, F53, N44.