EU foreign policy
towards the BRICS
Dr. Marianne L. Wiesebron
Department of Latin America Studies
Leiden University
1
topics
✤
introduction
✤
strategic partnerships
✤
EU-BRICS
✤
conclusion
2
Introduction
✤
✤
European Union (EU) developed different relations with BRICS countries over time, as they are quite
different
EU formed strategic partnerships with BRIC(S)
concept BRIC from 2001
South Africa joined BRIC 14-4-2011: BRIC => BRICS
✤
EU started policies towards BRICS as group and individually
✤
2009: first EU study on BRIC
✤
EU wants to keep place in changing global order:
needs to cooperate with BRICS as group and/ or individually?
3
Introduction
✤
meanwhile BRICS
✤
1st BRIC summit in 2009 and since then: yearly summit and other specific meetings
✤
=> coordinating policies, for instance in Security Council (SC) UN [Libya]
✤
=> demanding changes in many institutions (IMF, UN, especially SC)
✤
=> preference for G-20 (finances) instead of G7/8….
make institutions more in agreement with actual reality
✤
=> want to avoid using the US$, would like to see stronger €
✤
=> are starting own development bank
4
EU-Brazil
✤
1973: 1st generation non preferential agreement: EEC-Brazil (BR)
✤
1980: 2d generation non preferential agreement: EEC-BR
✤
✤
✤
✤
1992: 3d generation: BR-UE Framework Agreement for Cooperation: trade, investments, finances and technology, etc.
=> European Investment Bank-BR agreement: finance development projects
2004: science and technology agreement; 2007 => into force
=> continuous coordination between EU-BR in areas of science, technology and innovation: prevention of natural
disasters and management of crisis, climate change and sustainable administration of natural resources, energy, food
security, biotechnologies, technologies of information and communication and nanotechnology.
4-7-2007: strategic partnership Brazil-EU
=> start of practically yearly summits BR-EU
over 30 sectoral dialogues EU-BR
: prevention of natural disasters and management of crisis, climate change and sustainable administration of natural
resources, energy, food security, biotechnologies, technologies of information and communication and nanotechnology.
5
brief overview of relations EU-Brazil
✤
✤
✤
✤
=> special attention for politics of education, culture; financial services
=> start of macro-economic and financial high level dialogue
=> Cooperation Agreement between EURATOM and Brazil on fusion energy research
agreement on aviation safety to facilitate trade in aircraft and aircraft parts and comprehensive air
services agreement that will open up EU and Brazilian aviation markets
Embraer / Airbus
=> Projects of triangular cooperation: BR, EU-Africa
more specifically in area of public health and nanotechnology.
=> Dialogue on Society of Information; Task Force on technologies of information and communication
already set up in 2009
Joint Programme BR-EU on Culture: 2011-2012:
=> to foster better mutual understanding of European and Brazilian culture,
=> to facilitate economic relationships between EU and Mercosur countries
=> BRICS interesting to EU for regional impact of each BRIC
6
EU - Russia
✤
✤
2003, St. Petersburg Summit: EU-Russia reinforce cooperation by creating 4 common spaces
+ instruments to put them into effect (2005): Partnership for Modernisation
1.Common Economic Space, covering economic issues and environment
=> 2012: Russia’s accession to WTO: very important
improving market access; anti-corruption project implemented by Council of Europe / OECD ?
✤
2. Common Space of Freedom [=> abolish visa for short stays] , Security and Justice
✤
3. Common Space of External Security, including crisis management and non-proliferation;
✤
4. Common Space of Research and Education, Including cultural aspects
=> main third-country partner in the EU Framework Programme for research
key areas: aeronautics, ICT, nanotechnologies, and research infrastructures
=> 2014: EU-Russia Year of Science, Technology and Innovation
7
EU - India
✤
✤
✤
✤
2004, India strategic partner EU
key areas of interest:
—developing cooperation in the security field (international terrorism)
—ongoing negotiations for a Free Trade Agreement:
=> last 5 years: trade *2;
investment * 10
—implementation joint work programme on climate change adopted at 2008 Summit
EU funds health, education and implementation of Joint Action Plan
—in particular secondary education and vocational training
—EU intends to fund fellowships for Indian students and professors (Erasmus Mundus)
—projects in fields of energy, environment and trade related technical assistance.
India strategic partner EU but not yet real strategic partnership
partly because of lack of coherent EU internal agreements for collective EU interests,
partly because of lack of interest India for EU, ≠ USA
8
EU -China
✤
✤
✤
✤
January 2007, China strategic partner EU
most complex relations between EU and BRICS country
EU is China’s biggest trading partner
China is EU’s largest source of imports and 2nd largest two way trading partner
many areas of joint interest, more than 50 sectoral dialogues, amongst them :
industrial policy, education, customs, social affairs, nuclear energy and consumer protection
2005: EU-China Civil Aviation Summit, Beijing
— Joint Statement on cooperation in space exploitation, science & technology development
since 1995: EU-China Human Rights Dialogue
9
EU -South Africa
✤
✤
✤
✤
2007, South Africa [SA] strategic partner EU
EU’s most important trading partner in Africa: EU largest trading partner SA
(i) enhanced political dialogue on issues like climate change, global economy, bilateral trade, and peace and
security matters
(ii) policy dialogues and sectoral cooperation on broad range of areas (environment, science and technology [SA, 5th
most active third-country partner in FP7, projects on aviation] , transport, space, etc.).
sectoral cooperation and development cooperation
growth and development: creation of decent jobs, skills development, public service delivery and public sector
reform.
—agreement for cooperation on peaceful uses of nuclear energy
—2012: new area of cooperation: European Global Navigation Overlay System, which supplements Galileo
positioning system
— regional issues: negotiations for economic partnership agreement between EU and countries of Southern
African Development Community (SADC).
Global issues: topics relating to G20, global economic governance as well as sustainable development
10
EU-BRICS
✤
✤
✤
✤
EU acutely aware of global power and loosing out to new players
=> 1st EU document : EU and BRICs: Challenges and opportunities
for European competitiveness and cooperation
[Industrial Policy and Economic Reform Papers No. 13 (2009)]
emergence BRICS as major exporters on international markets is one of driving forces behind
industrialised countries’ loss of global market shares.
China poses major threat for EU.
2004-2007 average: EU main investor in each of BRICs
—dominant in Brazil (53% FDI inflow) and Russia (57% FDI inflow);
—in China and India, share of EU firms rather low and not very dynamic.
EU interested in process of further mutual and balanced liberalisation in area of FDI to eliminate
obstacles on both sides
11
EU-BRICS
✤
✤
EU is loosing space in relation to BRIC / BRICS
=> BR-EU beginning 21st century: 31% of BR’s imports from EU
=> BR-EU 10 years later:
20% of BR’s imports from EU
—same true with India
✤
China wins bids in Africa instead of EU
✤
Russia is directing its pipelines towards Asia instead of Europe
✤
in 2012: BRIC trade with the EU represents
32,2 % of its imports and 20,5 % of its exports: => negative trade balance [except India]
31,1 % of its imports and 18,2 % of its exports in 2008
— excluding intra EU-27 trade; Eurostat 2013
[Eurostat gives statistics for BRIC not BRICS]
12
EU-BRICS
✤
2012, EU trade with main partners [excluding intra EU-27 trade; Eurostat 2013]
—major imports partners:
—major exports partners:
✤
China, 1 (16,2%); Russia, 2 (11,9%); India, 9 (2,1%);
Brazil 10, (2,1%); South Africa,19 (1,1%)
China, 2 (8,5%); Russia, 4 (7,3%); Brazil, 8 (2,3%);
India, 9 (2,3%); South Africa,18 (1,6%)
2011, BRIC trade with main partners [Eurostat 2013]
— major imports partners:
— major exports partners:
EU27, 1 (7,8%); China, 5 (2,5%); Brazil, 9 (1,1%),
Russia, 13 (0,9%); India, 17 (0,6%), South Africa, 23 (0,5)%
EU27, 1 (11,7%); China, 6 (1,6%); India, 8 (1,0%),
Russia, 10 (0,8%) Brazil, 11 (0,7%) ; South Africa, 24 (0,3)%
13
EU-BRICS
✤
✤
European Parliament (EP): Report on the European foreign policy towards the BRICS and other
emerging powers: objectives and strategies
presented by Committees on Foreign Affairs (EP, 10-1-2012)
need inclusive new global governance system based on close consultation and cooperation
with BRICS and other emerging powers (Indonesia, Mexico and Turkey) to avoid
=> political and economic fragmentation
=> disentanglement of global economic structures and investment flows
=> regional blocs of influence without any possible concerted solutions to transnational challenges
14
EU-BRICS
✤
✤
✤
European Parliament (EP): Report on the European foreign policy towards the BRICS and other
emerging powers: objectives and strategies
=> in view of current economic and financial crisis in EU and USA
=> urgent to pool resources between emerged and emerging powers
=> efficient global security and stability
EU must play major part in global power transition as promoter of partnership and inclusive governance,
and needs to act fast if it wants to maintain its leverage
=> otherwise sidelined
=> changes EU with regards to foreign policy and greater policy coherence
=> bring EU true weight to bear internationally
15
EU-BRICS
✤
✤
✤
✤
European Parliament (EP): Report on the European foreign policy towards the BRICS and other
emerging powers: objectives and strategies
EU has to work with BRICS
=> BRICS very divergent: in political, economic systems, demography,…
=> bilateral : deepen partnerships, especially with more democratic countries
=> multilaterally : G-20 a useful forum but G-7 could play key role
Link EU foreign and security policy to EU sectoral policies,
=> development, energy security, trade, access to raw materials and raw earths, climate change and
migration
=> BRICS considered opportunity not threat!
16
EU-BRICS
✤
✤
✤
✤
EU loosing space in relation to BRICS
=>2050 Emerging G-7 [BRICS + Indonesia, Mexico and Turkey]
bigger economies than emerged G-7
Big interdependence between emerging and emerged countries
=> create common platform in foreign policy
=> EU should streamline this new policy to play central role.
without dialogue, risk more and more pronounced fragmentation of global politics
=> emergence of several competing blocs of influence that post-Cold War Europe wanted to avoid
One common item: feeling of marginalisation at global level
=>BRICS' participation in key institutions of world economic and financial governance
17
EU-BRICS
✤
✤
✤
Also joint role EU-BRICS in Africa: development policy
=> scientific cooperation in mining sector
=> health sector (basis healthcare, infrastructure, AIDS) fight against poverty
=> climate change and rural development ….
BRICS countries are becoming significant investors in Africa, including in manufacturing and services.
Only 26% of the value of projects and 10% of the number of projects is in primary sector.
Europe must start talking to BRICS collectively.
EU must develop coordinated and coherent policy with regard to BRICS,
and discover their common points, common interests
=> BRICS emerged as collective and coordinated player on global stage
=> Europe must acknowledge this
18
EU-BRICS


BRICS transcontinental foreign-policy actor
=> started certain form of foreign policy-making, where foreign policy objectives of BRICS
converge [2011 statement to that effect]
=>abstention UN vote on Libya
=>deadlock resolution on Syria
=>blocking climate agreement in Durban
=>UN intervention in Sudan or Ivory Coast
=>long-lasting blockade of EU accession to UN General Assembly
problem because position EU ≠ BRICS,
politically often opposed positions
19
CONCLUSION
✤
✤
✤
✤
✤
EU recognises BRICS as new international reality and seeks strategy to prevent being marginalised
EU actions with all BRICS
=> specific diplomatic actions needed in areas of environment, finance and trade
— EU asked financial support from BRICS during euro-crisis: not too forthcoming
BRICS will no longer receive automatic funding for participation in EU research and innovation projects
(Horizon 2020)
=> possible decline BRICS participation
EU actions with each BRICS country
=> specific cooperation according to individual development each BRICS country and EU interest
EU must develop coordinated and coherent policy with regard to BRICS
=> BRICS are developing own cooperation and going own way
20
CONCLUSION
✤
✤
✤
✤
✤
But EU siding with USA on number financial issues
=> especially handing more voting shares to BRICS in IMF
although BRICS (Brazil, China) now lending to EU countries
=> BRICS promoting creation of joint development bank and foreign reserve fund
BRICS key players in G-20 => interested in developing some specific institutions or new ones
US incapable of leading, EU reluctant to push for substantial reforms
BRICS countries are free-riding on liberal system that provides them with great competitive advantages
without taking on major responsibilities.
EU-BRICS primarily on economic, monetary, technological and soft-power issues,
much less on increasing a military presence and forming security alliances
but includes defence-related elements, mainly in form of military dialogues, exchanges, joint exercises,
and arms sales
World is changing and EU has to take measures to keep up, not the case at moment
21