A new paradigm in trade policy making of the European Union

Abstract

The article examines practical changes in the approaches of the EU to the formation of its’ trade policy between 2004 and 2024. The author formulates a hypothesis about a paradigm shift in the formation of the EU’s foreign economic policy. Testing of this hypothesis is carried out on the basis of four criteria established by J. Orbie and F. De Ville: 1) emergence of a catalyst for such a change; 2) delegitimization of the existing paradigm by government officials; 3) availability of an alternative concept; 4) its support from influential circles. Based on the analysis, it is concluded that a paradigm shift has occurred — from the neoliberal economic, which prevailed in the EU in the early 2000s, towards “strategic autonomy”, which was formalized in 2019 by the new head of the European Commission Ursula von der Leyen. A long-term absence of positive dynamics in the development of the bloc’s international competitiveness relative to its’ key trading partners — the US and China — was determined as the main prerequisite
for such a transformation. A general trend towards increased promotion of the new concept by the EU officials after 2019 and, especially, after the start of a special military operation in Ukraine in 2022, has been identified. In conclusion, the author identifies areas for future research, including the study of the impact of the EU’s strategic autonomy paradigm on international trade processes and the development of multilateral trade regulation, in order to ensure a more effective Russia’s response to the ongoing changes.

Keywords:

European Union, foreign economic activity, trade policy, international competitiveness, strategic autonomy, protectionism