The foreign policy behaviour of the European Union towards the Latin American Southern Cone States (1980 - 2000) [Elektronische Ressource] : has it become more cooperative? ; the cases of foreign direct investment and agricultural trade / Andrea Ribeiro Hoffmann

Andrea Ribeiro Hoffmann









The foreign policy behaviour of the European Union towards the Latin
American Southern Cone States (1980-2000): has it become more cooperative?
The cases of foreign direct investment and agricultural trade.











Dissertation
zur
Erlangung des akademischen Grades
Doktor der Sozialwissenschaften
in der Fakultät
für Sozial- und Verhaltenswissenschaften
der Eberhard-Karls-Universität Tübingen






2003





Contents


Chapter 1 - Introduction ......................................................................................... 4

Chapter 2 – The Southern Cone States in the foreign policy of the European
Union: a historical background............................................................................... 7
2.1) EU foreign policy towards Latin America....................................................... 7
2.2) The creation of the Southern Cone Common Market (Mercosur) .................. 16
2.3) The EU foreign policy towards Mercosur...................................................... 19

Chapter 3 - The dependent variable: the level of cooperation of EU Foreign
policy behaviour towards the Southern Cone States............................................ 25
3.1) Foreign policy............................................................................................... 25
3.2) International actorness of the EU .................................................................. 27
3.3) EU foreign policy ......................................................................................... 32
3.4) Cooperative behaviour.................................................................................. 33
3.5) Indicators...................................................................................................... 33

Chapter 4 - Research Design ................................................................................. 36
4.1) Methodology ................................................................................................ 36
4.2) Hypotheses ................................................................................................... 41
4.2.1) Neorealism............................................................................................. 41
4.2.2) Identity Constructivism .......................................................................... 48
4.2.3) Utilitarian Liberalism............................................................................. 54

Chapter 5 - Case Study 1: Foreign Direct Investment ......................................... 73
5.1) Case description and dependent variable....................................................... 73
5.1.1) The role of FDI in economic development ............................................. 73
5.1.2) FDI flows and trends.............................................................................. 80
5.1.3) International cooperation regarding FDI................................................. 84
5.1.4) FDI in EU foreign policy, or the non-existent FDI policy....................... 98
5.1.4.1) Bilateral agreements...................................................................... 100
5.1.4.2) EU development policy ................................................................. 103
5.1.4.2.1) General features...................................................................... 103
5.1.4.2.2) FDI policy instruments ........................................................... 113
5.1.5) The level of cooperation of EU foreign policy behaviour ..................... 121
5.2) Independent variables and test of predictions .............................................. 124
5.2.1) Neorealism........................................................................................... 124
5.2.2) Identity Constructivism ........................................................................ 125
5.2.3) Utilitarian Liberalism........................................................................... 126
5.2.3.1) Organised actors............................................................................ 127
5.2.3.2) Most assertive actors and strength of the dependent variable ......... 142
5.3) Further observations and explanation of the level of cooperation of EU foreign
policy behaviour towards the Southern Cone States ........................................... 144


2
Chapter 6 - Case Study 2: Agricultural Trade ................................................... 146
6.1) Case description and dependent variable..................................................... 146
6.1.1) The role of agricultural trade for economic development...................... 147
6.1.2) Flows and trends of agricultural trade................................................... 149
6.1.3) International cooperation regarding agricultural trade........................... 151
6.1.4) Agricultural trade in the EU foreign policy........................................... 161
6.1.4.1) Common commercial policy (CCP)............................................... 161
6.1.4.2) Common agricultural policy (CAP) ............................................... 178
6.1.4.3) Development policy ...................................................................... 181
6.1.5) The level of cooperation of EU foreign policy behaviour ..................... 183
6.2) Independent variables and test of predictions .............................................. 187
6.2.1) Neorealism........................................................................................... 188
6.2.2) Identity Constructivism........................................................................ 188
6.2.3) Utilitarian Liberalism........................................................................... 189
6.2.3.1) Organised actors............................................................................ 189
6.2.3.2) Most assertive actors and strength of the dependent variable ......... 203
6.3) Further observations and explanation of the level of cooperation of the EU
foreign policy behaviour towards the Southern Cone States ............................... 205

Conclusion............................................................................................................ 207

Bibliography ........................................................................................................ 210

Annex: database of primary sources................................................................... 241



3

Chapter 1 - Introduction

An analysis of the recent literature about the relationship between the European
1 2Union and the Latin American Southern Cone States suggests that a rapprochement
3between these two regions has been taking place since the mid-to-end 1980’s.
Several cooperation agreements were signed on a bilateral basis, as with Argentina in
1990, Uruguay in 1991, and Brazil and Paraguay in 1992, and two on a bi-regional
basis with Mercosur, the Inter-Institutional Cooperation Agreement, in 1992, and the
Inter-Regional Cooperation Agreement, in 1995. A process of negotiation for the
conclusion of a third agreement with Mercosur, the Inter-Regional Association
Agreement, started in 1999. The declared EU intention is to build up a ‘special
relationship’ characterized by a ‘partnership’, in which the main objectives are to
promote democracy, respect for human rights, the rule of law, regional integration as
a way to achieve peaceful relations between neighbours, sustainable development, and
to increase trade and economic relations with attention to the importance of social
4solidarity.

Historically, the First World War interrupted the evolution of the relations between
today’s European Union and the Southern Cone States. Before 1914, the relationship
between these regions had a broad character with Latin American countries taking
Europe as its ideological and cultural model, and as its main economic partner. The
thUnited States attempted to eliminate this influence in the course of the 19 century,

1 For the period before the Treaty of Maastricht which created the European Union, the term EU refers
to the three European Communities (the European Economic Community (EEC), renamed European
Community (EC) by the Treaty of Maastricht; the European Coal and Steel Community (ECSC) and
the European Atomic Energy Community (EURATOM)), and its member-states within the framework
of the European Political Cooperation (EPC).
2The term Latin American Southern Cone States (from here on Southern Cone States - SCSs) refers to
the countries which became members of the Southern Cone Common Market (Mercosur) created in
1991, i.e. Argentina, Brazil, Paraguay and Uruguay. The definition excludes therefore Chile and
Bolivia, despite the fact that these countries are included in the geographical definition of Latin
America’s southern cone, and are associated members of Mercosur.
3 See for instance: Dias, 1999; CEPAL 1999; IRELA 199