EU foreign economic relations The EU has been promoting a liberal global economic order free flows of trade and capital The EU and its countries are members of World Trade Organization and many other free trade agreements But has been accused of protectionism Especially in agriculture and some manufacturing sectors Complaints by less economically developed countries Development policies Providing economic aid to third countries EU world s biggest aid contributor but variations among members states Countries targeted former colonies esp in Africa and the Caribbean European development fund financial aid to third countries National policies member states provide additional financial aid to individual third countries Agreements between EU and third world countries Focus Cotonou Agreement Preferential access to EU markets cid 127 Goal to spark economic activity Conditionality trade liberalization respect for human rights rule of law democracy and good governance EU environmental policy The EU has played a leading role in international environment negotiations Leader in international climate change agreements Kyoto protocol 1997 EU member states agreed to reduce greenhouse emissions by 8 below 1990 levels European Emissions Trading Scheme Ambitions future agenda 20 20 20 plan Two goals to be accomplished by the year 2020 Reduce emissions by 20 below 1990 levels Increase energy from renewable sources to 20 of total EU US Relations Transatlantic relations Strong security and economic cooperation NATO partnership during Cold War and until today The EU and the US are each other s biggest trade partners The EU and the US are each other s biggest source of Foreign Direct Investment Transatlantic trade and investment partnership currently under negotiation EU China relations China is at the EU s second largest trade partner The EU is China s biggest trade partner But large EU deficit with China EU complains about access to Chinese markets EU complains about human rights in China EU Russia relations Russia is the EU s third largest trade partner Russia is the top energy supplier to EU member states Common approaches to human trafficking energy security the environment etc EU concerns about authoritarianism in Russia EU and Russia compete for political influence in Eastern Europe and Caucasus region Neighborhood Policy Ian Manners EU policy for relations with countries in Mediterranean E EUrope and Caucasus Funding provided by EU to beneficiary countries in exchange for economic and political reform cid 127 military power military capabilities ability to deploy military internationally civilian power economic capabilities important role in international economy normative power projecting normative values setting international standards of appropriateness it is unfair to judge EU as a civilian or military power because it is not a nation state EU is a normative power cid 127 main EU norms peace liberty democracy rule of law cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 human rights secondary EU norms social solidarity anti discrimination sustainable development good governance cid 127 method of norm diffusion contagion lead by example informational diffusion result of strategic communications declarations statements etc transference offering economic carrots and sticks to third countries in exchange for reform overt diffusion physical presence in third states cultural filter EU creates cultural expectations cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127