invasion of Iraq in Kuwait and Yugoslavia crises demonstrated Europe s weakness in FP institutionalized procedure for coordination of notional foreign policies of EU member states History of EU foreign policy 1950s no provision for ECC foreign policy 1970 European Political Cooperation lome conventions conference for security and cooperation in EUrope sanctions against South Africa and Argentina 1990s Common Foreign and Security POlicy CFSP established in 1992 by Maastricht Treaty the foreign policy of the EU intergovernmental policy IE not supranational common representation of entire EU by common institutions the European Council sets overall foreign policy priorities the council of the EU makes common foreign policy decisions the high representative of the Union EU Foreign minister represents the Union to the world cid 127 makes foreign policy proposals to council of the EU the external action service is the EU s diplomatic service EU d l gations around the world instruments European Security and Defense Policy ESDP the defense component of CFSP EU military capabilities Rapid Reaction Force 60 000 troops Battle groups 1 500 troops civilian missions administrators judges police officers etc economic importance of the EU 28 member states combined the world second largest economy largest exporter of goods second largest importer of goods largest exporter and importer of services the world s largest FDI inflows and outflows declaration a non binding statement by EU member states common position common statement by which member states are obliged to comply ex EU on US invasion of Iraq common action taking action to implement a common position EU acts invest in the other parts of the world more than anyone else and other world actors invest their money mostly in the EU yet EU members are each other s most significant trading partners 65 of European exports and imports involve other European countries EU important global economic player both external economic relations and internal economic policies affect world economy EU foreign economic relations EU has been promoting a liberal global economic order free flows of trade and capital EU and its countries are members of World Trade Organization and many other free trade agreement but has been accused of protectionism especially in agriculture and some manufacturing sectors complaints by less economically developed countries 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 cid 127