The European Union (EU) is increasingly acting as a global normative power, particularly in the context of Free Trade Agreements (FTAs) with Asian countries. This paper examines how trade and sustainable development provisions are applied within these agreements and what this means for global trade.

Introduction

The European Union (EU), born out of the ashes of World War II, has grown from a regional economic bloc into a global actor that exerts significant influence across the world. Initially formed to facilitate the economic recovery of Europe, the EU has evolved into a key player on the international stage, shaping norms, regulations, and trade practices. The EU’s power is not solely derived from its economic weight; it is also rooted in its role as a “normative power,” where it uses its influence to promote values such as democracy, human rights, environmental sustainability, and social justice.

The EU’s involvement in global trade has been particularly impactful through its participation in the World Trade Organization (WTO) and its creation of Free Trade Agreements (FTAs). These agreements go beyond traditional economic cooperation, addressing broader issues such as labor standards, environmental protection, and sustainable development. The EU has established itself as a leader in integrating these issues into trade agreements, promoting global norms that emphasize ethical and sustainable practices.

With growing global challenges like climate change, inequality, and social injustice, the EU’s normative power has become more relevant than ever. Through its FTAs, the EU seeks to not only promote economic growth but also to drive progress toward achieving sustainable and inclusive global development. This paper will examine the EU’s role in shaping global trade norms through its FTAs with Asian countries, specifically focusing on the Korea-EU FTA, the EU-Singapore FTA, and the EU-Vietnam FTA.

EU Normative Power and its Global Expansion

The concept of “normative power” was first introduced by Ian Manners to describe the EU’s unique role in shaping global standards without relying on traditional forms of power, such as military or economic dominance. Instead, the EU leverages its ability to set norms and standards that other countries follow, influencing international relations through the promotion of values like peace, human rights, democracy, and sustainability. Unlike more coercive forms of power, the EU’s normative power operates through persuasion and the diffusion of norms. This power is most visible in the EU’s external trade policies, where it uses its market access as leverage to promote broader goals. For instance, the EU has been a key advocate for linking trade with non-economic issues such as labor rights, environmental protection, and human rights, thus setting new precedents in international trade agreements.

The EU has institutionalized its normative power through its participation in various international organizations, including the WTO, the United Nations (UN), and the International Labour Organization (ILO). Through these platforms, the EU has promoted multilateral agreements on critical global issues like climate change, labor rights, and fair trade practices. The European Green Deal, for example, is a comprehensive initiative that aims to make Europe the first climate-neutral continent by 2050. This policy not only affects the EU’s domestic policies but also shapes its trade relations, as environmental standards and sustainability have become key components of its FTAs.

The EU’s focus on normative power is also evident in its approach to foreign aid and development cooperation. By tying development assistance to adherence to human rights, democratic governance, and environmental protection, the EU ensures that its values are reflected in the policies and practices of its partner countries. This approach has strengthened the EU’s global influence and has made it a key actor in shaping the global agenda on sustainable development.

In the context of trade, the EU’s normative power is most clearly demonstrated through its FTAs. These agreements not only open markets for trade but also set standards for labor rights, environmental protection, and corporate social responsibility. Through its FTAs with countries in Asia, the EU has been able to extend its influence and promote its values on a global scale.

Trade and Sustainable Development in FTAs

One of the key features of recent EU FTAs is their strong emphasis on sustainable development. Sustainable development provisions in FTAs ensure that trade and economic growth do not come at the expense of social and environmental well-being. This approach is in line with the United Nations’ Sustainable Development Goals (SDGs), which seek to promote inclusive and sustainable economic growth, employment, and decent work for all, while addressing environmental challenges such as climate change.

Chapter 13 of the Korea-EU FTA, for instance, is dedicated to “Trade and Sustainable Development.” This chapter outlines specific obligations related to the protection of labor rights and the environment. The provisions in this chapter emphasize the right to regulate, ensuring that both parties maintain their ability to set and enforce labor and environmental standards in accordance with international agreements, such as the ILO conventions and multilateral environmental agreements like the Paris Agreement.

The inclusion of these provisions marks a significant shift in the way trade agreements are structured. Traditionally, FTAs focused primarily on reducing tariffs and promoting economic integration. However, the EU’s approach introduces a broader perspective, linking trade with sustainability. This shift reflects the growing recognition that long-term economic growth must be balanced with the need to protect natural resources and ensure that all individuals benefit from trade.

The EU-Singapore FTA, which entered into force in 2019, also includes comprehensive sustainable development provisions. Chapter 12 of the agreement addresses both labor and environmental issues, with specific articles dedicated to promoting sustainable forest management, reducing illegal logging, and ensuring the responsible trade of timber and timber products. The agreement also contains provisions aimed at reducing greenhouse gas emissions and promoting the transition to a low-carbon economy.

Similarly, the EU-Vietnam FTA, which was finalized in 2019, goes even further in addressing sustainable development. Article 13.6 of the agreement explicitly mentions cooperation on climate change, referencing international agreements like the Paris Agreement. This provision is particularly significant given Vietnam’s vulnerability to climate change and its growing role in global supply chains. The agreement also includes detailed provisions on biodiversity protection, sustainable forest management, and the conservation of marine resources, marking a new standard for incorporating environmental sustainability into trade agreements.

Comparative Analysis of Key FTAs

A comparative analysis of the Korea-EU, EU-Singapore, and EU-Vietnam FTAs highlights the EU’s commitment to promoting sustainable development across different economic contexts. While all three agreements include sustainability provisions, they are tailored to the specific needs and conditions of each partner country.

The Korea-EU FTA, which was signed in 2011, was one of the first EU FTAs to include a dedicated chapter on sustainable development. This agreement set the precedent for future EU trade agreements by linking trade with labor and environmental standards. The provisions in the Korea-EU FTA focus on promoting fair trade practices, protecting workers’ rights, and ensuring environmental sustainability. The agreement also establishes a framework for ongoing cooperation and dialogue on these issues, allowing both parties to address emerging challenges and adapt to changing global conditions.

In contrast, the EU-Singapore FTA reflects the unique characteristics of Singapore’s economy. As one of the most developed and open economies in Southeast Asia, Singapore has a strong commitment to international trade and environmental protection. The sustainability provisions in the EU-Singapore FTA focus on promoting the responsible management of natural resources, particularly in the areas of forestry and timber trade. The agreement also emphasizes the importance of transitioning to a low-carbon economy, with provisions aimed at reducing greenhouse gas emissions and promoting renewable energy sources.

The EU-Vietnam FTA, on the other hand, addresses the specific challenges faced by Vietnam as a developing country. Vietnam has experienced rapid economic growth in recent years, becoming a key player in global supply chains. However, this growth has also brought environmental challenges, particularly in the areas of deforestation, biodiversity loss, and marine resource depletion. The EU-Vietnam FTA includes comprehensive provisions to address these issues, with a strong emphasis on climate change cooperation and biodiversity conservation. By incorporating these provisions, the EU is helping Vietnam to develop its economy in a sustainable manner, while also ensuring that environmental protection remains a priority.

Conclusion

The EU’s role as a normative power is clearly demonstrated through its FTAs with Asian countries. By linking trade with sustainable development, the EU is setting new standards for how trade agreements should be structured. The inclusion of labor and environmental provisions in these agreements reflects the EU’s broader commitment to promoting global public goods, such as social justice, environmental protection, and sustainable development.

As global challenges such as climate change and inequality become more pressing, the EU’s approach to trade will likely serve as a model for other countries and regions. By demonstrating that trade can be a tool for promoting sustainability and social progress, the EU is paving the way for a new era of international trade that prioritizes long-term economic, social, and environmental well-being.

Looking ahead, the EU’s influence on global trade norms is likely to continue to grow, particularly as discussions on the revision of existing FTAs, such as the Korea-EU FTA, move forward. The EU’s focus on sustainability will remain central to its trade policy, ensuring that its agreements not only promote economic growth but also contribute to solving the most pressing global challenges.

Bongchul KIM is a Professor at Hankuk University of Foreign Studies (HUFS), Korea. He completed his Ph.D in Law at King’s College London with the Overseas Research Scholarship from the UK government and his MA and BA in Law at HUFS with a full-time scholarship from the University. Prof. Kim is a Managing Director of HUFS Jean Monnet EU Centre after his work as a Director of HUFS EU Research Institute.