Can border carbon taxes fit into the global trade regime? Bruegel Policy Brief 2013/06, 9 December 2013

One complement to domestic climate policies could be the regulation of carbon dioxide emissions arising during the production of imported products. Such ‘border carbon adjustments’ (BCAs) are said to have several benefits, but are also severely criticised. This Policy Brief highlights some weaknesses in the standard argumentation for BCAs. But there is an alternative argument for border carbon measures, based on the fact that countries expose each other to climate externalities. The reformulated argument is economically more convincing, and provides a more convincing justification for the extraterritorial feature of border carbon measures. However, there are also several important factors mitigating against the implementation of such measures, including the risk that these measures will be used for protectionism. One complement to domestic climate policies could be the regulation of carbon dioxide emissions arising during the production of imported products. Such ‘border carbon adjustments’ (BCAs) are said to have several benefits, but are also severely criticised. This Policy Brief highlights some weaknesses in the standard argumentation for BCAs. But there is an alternative argument for border carbon measures, based on the fact that countries expose each other to climate externalities. The reformulated argument is economically more convincing, and provides a more convincing justification for the extraterritorial feature of border carbon measures. However, there are also several important factors mitigating against the implementation of such measures, including the risk that these measures will be used for protectionism.

The Shaping of EU-Mercosur Relations: From Altruism to Pragmatism and Liberalism to Illiberalism. Pittsburgh Papers on the European Union Vol. 1, (2012)

Deeply-embedded norms of liberalism and protectionism alongside EU policies focusing on promoting development and regional integration have shaped EU-Mercosur relations. These stand in stark contrast to the policies of the US, the historic hegemon in the region. This paper utilizes historical institutionalism to understand how the liberal tenets of EU competition policy and the protectionism of Common Agricultural Policy (CAP) have affected EU-Mercosur relations. Particular foci include Spain’s role in spearheading efforts to promote EU-Latin American relations and the way EU competition policies directed against monopolies in Europe spurred increased investment in Latin America, especially the Southern Cone. The latter prompted the EU to forge closer ties with Mercosur, encouraged cooperation and development programs and spurred regional integration and liberal trade regimes in Latin America.

The EU-Turkey Customs Union: A model for Future Euro-Med Integration. MEDPRO Technical Report No. 9/March 2012

This paper studying the 1995 EU-Turkey Customs Union (CU) reveals that the CU has been a major instrument of integration of the Turkish economy into the EU and global markets, offering powerful tools to reform the Turkish economy. Turkish producers of industrial goods are protected by tariffs from external competition to exactly the same extent as EU producers, and they face competition from duty-free imports of industrial goods from world-class pan-European firms. In return, Turkish industrial producers have duty-free market access to the European Economic Area, which was recently extended to certain Mediterranean countries. Trade liberalisation achieved through the CU has thus successfully moved the Turkish economy from a government-controlled regime to a market-based one, and Turkish producers of industrial goods have performed remarkably well. The paper further shows that market access conditions for Turkish producers are determined, in addition to tariffs, by standards, conformity assessment procedures, competition policy, industrial property rights and contingent protectionism measures. The CU also offered Turkey the opportunity to establish new institutions, and modernise and upgrade rules and disciplines required for the elimination of technical barriers to trade, and for the implementation of the EU’s competition, industrial property rights, and contingent protectionism policies.

The European and Southeast Asian Single Aviation Markets. EU Centre, Background Brief No. 15, July 2015

Civil aviation in Europe is one major area where landmark changes have taken place since the late 1980s – the liberalization and deregulation of the sector by member states in three “packages” in the 1980s has transformed an economic sector historically characterized by heavy protectionism, collusion and strong state intervention. Today, the European Union’s (EU) aviation sector contributes to 2.4% of European GDP and supports 5.1 million jobs. The Association of Southeast Asian Nations (ASEAN) has also eagerly taken steps to integrate its aviation markets as part of the ASEAN Economic Community (AEC) in 2015. This background brief chronicles the changes made in the aviation sector in Europe through regional integration and examines how these changes have affected policymaking in member states, the airline industry and consumers. The brief also examines ASEAN’s own effort in the integration of its own aviation sector and, taking into account the EU’s strong interest in cooperating with ASEAN on transport and civil aviation policy, whether the changes in the EU are applicable in the ASEAN context.