
example, Generalised System of Preferences
(GSP), provides preferential market access to
`developing´ States, including duty-free and quo-
ta-free entry benefits for many of their exports.
GSP plus extends this market access even further
for vulnerable developing countries that have
ratified and introduced critical international
conventions on issues such as good governance,
human rights, environmental protection and
labour rights.
Arguably the greatest attraction the EU has
for other States is the prospect of preferential
access to what is the largest single global mar-
ket. The EU has thus made use of trade agree-
ments to promote its foreign policy objectives.
The EU enjoys trade agreements with virtually
every State worldwide and they acquire consid-
erable persuasive power when carrots such as
preferential access to the EU market, inclusion
in a free trade area or even potential member-
ship of the EU are dangled at the negotiating
table. These trade agreements have therefore
become a formidable weapon in the EU´s for-
eign policy armoury.
The efficacy of this approach, in promot-
ing EU policy goals, is clear from even a cursory
examination of the Stabilisation and Association
Agreements that were entered into with coun-
tries in South-Eastern Europe (SEE). By insert-
ing a range of conditions in these agreements in
return for certain economic inducements, the
EU was in a position to exercise influence over
the policy-making processes of SEE States.
The Cotonou Agreement between the
EU and the African, Caribbean and Pacific (ACP)
State countries is illuminating. Set up to replace
the Lomé Agreements, which had been in force
since , Cotonou now includes ACP
countries and the EU Member States.
Under the four Lomé Agreements, the
ACP were granted trading preferences with
the EU that they did not have to reciprocate.
However, the establishment of the World Trade
Organisation (WTO) in led to calls for the
Lomé Agreement to be revised to conform with
WTO policies, primarily driven by the principle
of reciprocity.
At the same time, the demand to remove
non-reciprocal preferential EU market access
from the ACP coincided with the EU´s own for-
eign policy objectives, in particular the promo-
tion of free trade and greater market access. In
effect, the EU has used Cotonou to introduce
trade liberalisation amongst the ACP faster and
deeper than that required by the WTO. For the
ACP, whose economies are comparatively fragile
and therefore less able to compete on the inter-
national stage, the introduction of Cotonou has
been far less favourably received.
Under Cotonou, the ACP States’ non-re-
ciprocal trade preferences are to be replaced
by Economic Partnership Agreements (EPAs).
These EPAs will introduce reciprocal trade
arrangements whereby ACP countries would no
longer benefit from duty-free entry to EU mar-
kets for their products and services without simi-
lar access being provided to the EU.
Although the EU holds that these EPAs are
being negotiated in equal partnership with ACP
members, this is not so. Firstly, in contrast to
the EU, the ACP countries’ negotiating capa-
bilities are extremely weak. Several ACP States
are heavily dependent on EU aid and this under-
mines their bargaining position. Moreover, the
EU funds many of the negotiators representing
African States; and its officials frequently attend
regional African meetings and national negoti-
ating preparatory meetings. Finally, the EU has
refused to enter into EPAs with ACP members
until they break up into smaller regional groups,
so decreasing their overall negotiating weight.
While the EU has consistently promoted
Cotonou as a partnership with the ACP States,
commentators such as Robert Cox characterise
this as a mixture of coercion and consent, that
is soft power backed by hard power:
“...(t)he language of the Cotonou Agreement
cleverly blends ideas of consent and coercion...
Consent is achieved through notions of ‘dia-
logue’, ‘partnership’ and of ACP States ‘owning’
their own development strategies. Coercion is
present in the EU’s presentation of Economic
Partnership Agreements (EPAs) as the only
viable alternative and also through the imple-
mentation of frequent reviews of aid provision
that have conditionalities attached. Hence we
see consent in the first instance with the coer-
cion coming later”.
While they may facilitate the EU´s policy
objectives, Cotonou and the EPA could seriously
hinder the economic development of many of
these ACP countries. Whereas today´s wealth-
ier nations applied a range of protectionist and
interventionist instruments and measures to nur-
ture strategic infant industries and develop their
economies, these options have now effectively
been eliminated. According to the Cambridge
economist Ha-Joon Chang, `developed´ States
are now preventing `developing´ nations from
availing of measures similar to those they them-
selves used to foster economic growth.
As the President of Botswana, Festus G.
Mogae, stated at the ACP-European
Commission Meeting of Ministers:
“You will understand, therefore, if we are
apprehensive about the proposed Economic
Partnership Agreements (EPAs), which are
currently being negotiated... We fear that our
economies will not be able to withstand the
pressures associated with liberalization”.
It is hard to see how EU foreign policy of this
sort can in any way be held up as an exercise of
soft power, or one whereby consensual agree-
ment on issues of importance are arrived at
through genuine partnership with interlocutor
states. In reality, the EU´s approach is an amal-
gam of soft and hard power. As Robert Cooper
the current Director-General for External
and Politico-Military Affairs at the General
Secretariat of the Council of the European Union
candidly writes:
“Hard power and soft power are two sides
of the same coin... Soft power is the velvet glove,
but behind it there is always the iron fist”.
Instead of relying on the soft power `attrac-
tiveness´ of its culture, political values and poli-
cies in order to obtain sufficient legitimacy and
morally authority to convince others of the
desirability of its foreign policies, the EU has
proved only too willing to apply hard power
economic coercion, particularly in the case of
weaker `partner States´.
“developed
States are now
preventing
developing
nations from
availing of
measures similar
to those they
themselves used
to foster economic
growth”