DP14835 EU Trade and Non-Trade Objectives: New Survey Evidence on Policy Design and Effectiveness

Author(s): Robert Basedow, Matteo Fiorini, Bernard Hoekman, Aydin Yildirim
Publication Date: May 2020
Keyword(s): European Union, issue linkage, nontrade issues, Trade agreements
JEL(s): F13
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=14835

EU trade policy increasingly focuses on the achievement of so-called non-trade policy objectives (NTPOs) such as the promotion of human rights or environmental protection, motivating research on the political economy determinants and effectiveness of linking of trade policy and NTPOs. This research note reports selected findings from a new expert survey of stakeholder perceptions on trade-NTPO linkage. These suggest that EU institutions' views align more with those of civil society organizations than business, but also reveal significant differences in the perceived effectiveness of trade-NTPO linkage strategies. Many stakeholder groups believe that policy instruments other than trade agreements are better tools to pursue NTPOs. These findings suggest that further research on EU trade policy and nontrade issues should consider the broader range of external policy tools available to the EU in pursuit of NTPOs and the determinants of differences in preferences for alternative policy instruments.