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The European Union in United Nations Economic Governance Fora

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European Yearbook of International Economic Law 2017

Part of the book series: European Yearbook of International Economic Law ((EUROYEAR,volume 8))

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Abstract

Despite being one of the “heavyweights” in international trade, finance and development, the European Union’s (EU) presence in the economic governance fora of the United Nations (UN) continues to be fraught with difficulties. Faced with the legal and political hurdles of multilateral diplomacy in a state-centric environment, the EU has had to deal with a lack of status and participation rights, the complexities of an internal coordination process involving 28 Member States, and the challenges of ensuring a cohesive external representation. This contribution provides a brief overview of the legal basis for EU engagement in the UN, the Union’s internal coordination process, as well as the framework governing its external representation. To highlight the patchwork of legal statuses and modes of engagement, we subsequently take a closer look at the EU’s relations with a select number of UN bodies in the area of economic governance. This allows us to illustrate the respective challenges in three scenarios: UN fora where the EU and the EU Member States hold membership rights, where we look at FAO; UN fora where the EU holds an observer or full participant status while its Member States have membership rights, where we look at ECOSOC, its subsidiary bodies, and UNCTAD; and UN fora where the EU Member States are members but where the EU has no formal status: here we look at the World Bank.

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Notes

  1. 1.

    World Bank, data of 2015, http://data.worldbank.org/indicator/NY.GDP.MKTP.CD (last accessed 1 March 2017).

  2. 2.

    European Commission, EU position in world trade, http://ec.europa.eu/trade/policy/eu-position-in-world-trade/ (last accessed 1 March 2017).

  3. 3.

    Hervé (2012), p. 143.

  4. 4.

    OECD, Development aid in 2015 continues to grow despite costs for in-donor refugees, 13 April 2016, www.oecd.org/dac/stats/ODA-2015-detailed-summary.pdf (last accessed 1 March 2017).

  5. 5.

    Hervé (2012), p. 143. This assessment is not unique to the EU’s engagement with economic governance institutions, see e.g. Thomas (2012) on the EU and the International Criminal Court; and Smith (2010) on the EU at the UN Human Rights Council.

  6. 6.

    For earlier writings on the EU-IMF relationship, see Wouters and Ramopoulos (2016), pp. 21–37; Wouters et al. (2013a), pp. 306–327; Wouters and Van Kerckhoven (2012), pp. 221–233. On the EU-WTO relationship, see Wouters (2013), pp. 373–383.

  7. 7.

    On the EU-G20 relationship, see inter alia Wouters et al. (2013b), pp. 259–271.

  8. 8.

    Charter of the United Nations (UN Charter), fourth and eighth recital of the preamble.

  9. 9.

    Article 1(3) UN Charter. Article 55 UN Charter develops this objective further: “With a view to the creation of conditions of stability and well-being which are necessary for peaceful and friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, the United Nations shall promote: (a) higher standards of living, full employment, and conditions of economic and social progress and development; (b) solutions of international economic […] problems […].”

  10. 10.

    Kirton J, The United Nations, Global Economic Governance and the G20. Lecture given at the University of Leuven, 10 December 2015, www.g20.utoronto.ca/biblio/kirton-un-g20-151210.html (last accessed 1 March 2017).

  11. 11.

    Article 13(1)(b) UN Charter.

  12. 12.

    Article 60 UN Charter.

  13. 13.

    Article 60 UN Charter.

  14. 14.

    See inter alia UN General Assembly, The United Nations in global economic governance, Resolution 67/289, 9 July 2013; UN General Assembly, The United Nations in global governance, Resolution 66/256, 16 March 2012; UN General Assembly, The United Nations in global governance, Resolution 65/94, 8 December 2010; UN Secretary General Report, The United Nations in global economic governance, A/71/378, 16 September 2016.

  15. 15.

    See for more details Wouters and Chané (2016), pp. 299–323.

  16. 16.

    European Council, European Security Strategy: A Secure Europe in a Better World, Brussels, 12 December 2003, p. 9.

  17. 17.

    Consolidated Version of the Treaty on European Union, OJ 2016 C 202/13.

  18. 18.

    See e.g. Articles 208(2), 214(7), 220(1) TFEU.

  19. 19.

    Shared Vision, Common Action: A Stronger Europe. A Global Strategy for the European Union’s Foreign and Security Policy, June 2016, http://eeas.europa.eu/archives/docs/top_stories/pdf/eugs_review_web.pdf (last accessed 1 March 2017).

  20. 20.

    Consolidated Version of the Treaty on the Functioning of the European Union, OJ 2016 C 202/47.

  21. 21.

    Geiger (2015), para. 4.

  22. 22.

    CJEU, opinion 1/03, Lugano Convention, ECLI:EU:C:2006:81; CJEU, opinion 1/76, European laying-up fund for inland waterway vessels, ECLI:EU:C:1977:63; CJEU, opinion 1/94, WTO, ECLI:EU:C:1994:384. See Kuijper et al. (2015), pp. 1–11.

  23. 23.

    Hoffmeister (2007), p. 41.

  24. 24.

    Article II(3) FAO Constitution.

  25. 25.

    European Commission, The European Union and the United Nations: The choice of multilateralism, COM (2003) 526 final, 10 September 2003, p. 23.

  26. 26.

    President and Vice-President of the European Commission, Strategy for the progressive improvement of the EU status in international organisations and other fora in line with the objectives of the Treaty of Lisbon, C(2012) 9420 final, 20 December 2012, on file with the authors.

  27. 27.

    See for a detailed analysis of the Barroso-Ashton Strategy, Wouters et al. (2015), pp. 45–74.

  28. 28.

    In 2011 the EU’s was granted additional participation rights in the UN General Assembly, UN Doc A/RES/65/276, 3 May 2011. For a detailed analysis see inter alia Brewer (2012), pp. 181–225; Wouters et al. (2011), pp. 166–170; Wouters et al. (2013c), pp. 211–223.

  29. 29.

    In case of “mixity”, membership rights can only be exercised on an alternative basis by either the EU or its Member States, see e.g. Article II(8) FAO Constitution.

  30. 30.

    Treaty establishing the European Economic Community, 25 March 1957, 298 U.N.T.S. 11.

  31. 31.

    Cloos et al. (1993), p. 345 et seq.

  32. 32.

    Article 24(3) TEU provides: “The Member States shall support the Union’s external and security policy actively and unreservedly in a spirit of loyalty and mutual solidarity and shall comply with the Union’s action in this area. The Member States shall work together to enhance and develop their mutual political solidarity. They shall refrain from any action which is contrary to the interests of the Union or likely to impair its effectiveness as a cohesive force in international relations.” This provision aims at ensuring the effectiveness of the EU at the international stage by obliging the EU Member States to ensure a cohesive external façade through cooperation and coordination. It consequently limits, in the area of CFSP, the Member States’ freedom to take unilateral action in UN fora. This duty to cooperate and coordinate in the framework of international organisations, as far as CFSP is concerned, is enshrined in Article 34(1) TEU. It provides that “Member States shall coordinate their action in international organisations and at international conferences” and that they “shall uphold the Union’s positions in such forums”. Article 34(1), second paragraph and 34(2), first paragraph, TEU also makes special provisions for those international fora where not all EU Member States are represented. The rules on the UN Security Council in Article 34(2), second paragraph, constitute a remarkable derogation from these principles.

  33. 33.

    This could be regarded as a form of “intergovernmentalisation” of the external dimension of EU integrated policy areas.

  34. 34.

    Council of the European Union, Presidency report to the European Council on the European External Action Service, 14,930/09, 23 October 2009, para. 31.

  35. 35.

    Cf. Arrangement concerning preparation for the meetings of the FAO as well as interventions and voting, 18 December 1991, unpublished, reproduced in Frid (1995), Annex VI, Article 2.3. The 1991 Arrangement was updated in 1992 and 1995.

  36. 36.

    FAO, About FAO, www.fao.org/about/en/ (last accessed 1 March 2017).

  37. 37.

    Agriculture has been one of the core competences of the EU since the Treaty establishing the European Economic Community tasked the EEC with the creation of a common agricultural policy (“CAP”), Articles 3(d), 38–47 EEC Treaty.

  38. 38.

    Schild (2013), p. 225.

  39. 39.

    Exchange of letters between the Director-General of the FAO, Sen, and the President of the European Commission, Hallstein, 25 October 1962 and 11 December 1962, reprinted in Commission of the European Communities, The European Community, international organizations and multilateral agreements, 3rd edn. January 1983, pp. 97–99.

  40. 40.

    Frid (1993), p. 241.

  41. 41.

    See Commission of the European Communities, Proposal for a Council decision on the access of the European Community to the FAO at the 26th session of the FAO Conference, COM (91) 387 final, 18 October 1991; Frid (1993), p. 246.

  42. 42.

    Article II(3) FAO Constitution.

  43. 43.

    Article II(4) FAO Constitution.

  44. 44.

    Frid (1993), p. 246.

  45. 45.

    Programme Committee, Finance Committee, Committee on Constitutional and Legal Matters, see Article II(9) FAO Constitution and Rule XLVI FAO General Rules.

  46. 46.

    Article XVIII(6) FAO Constitution.

  47. 47.

    Article II(9) FAO Constitution; Rules XLIII(3) and XLIV FAO General Rules.

  48. 48.

    Arrangement concerning preparation for the meetings of the FAO as well as interventions and voting, 18 December 1991, unpublished, reproduced in Frid (1995), Annex VI, Article 2.1–2.2.

  49. 49.

    Frid (1995), Annex VI, Article 2.3; Schild (2013), p. 228.

  50. 50.

    Frid (1995), Annex VI, Article 1.12.

  51. 51.

    European Commission, The role of the European Union in the Food and Agriculture Organisation (FAO) after the Treaty of Lisbon: Updated Declaration of Competences and new arrangements between the Council and the Commission for the exercise of membership rights of the EU and its Member States, COM (2013) 333 final, 29 May 2013.

  52. 52.

    COM (2013) 333 final, Annex 2, chapter 2.3.

  53. 53.

    Article II(5) FAO Constitution.

  54. 54.

    Article II(7) FAO Constitution. See Council Decision of 25 November 1991, Declaration of Competence by the European Union in respect of matters covered by the constitution of the Food and Agriculture Organization of the United Nations (Pursuant to the General Rules of the Organization); updated by a letter sent on 4 October 1994 from the President of the Council to the Director-General of the FAO, cf. European Commission, Notification of a change in the distribution of competence between the EC and its Member States pursuant to Article II(7) of the FAO Constitution, SEC 94 (437) final; Schild (2013), p. 226, note 35.

  55. 55.

    Rule XLII(2) General Rules of the FAO.

  56. 56.

    Rule XLII(1) General Rules of the FAO.

  57. 57.

    Draft Declaration of competences by the European Union in respect of matters covered by the Constitution of the Food and Agriculture Organisation of the United Nations (FAO), see European Commission, The role of the European Union in the Food and Agriculture Organisation (FAO) after the Treaty of Lisbon: Updated Declaration of Competences and new arrangements between the Council and the Commission for the exercise of membership rights of the EU and its Member States, COM (2013) 333 final, 29 May 2013, Annex 1.

  58. 58.

    Winkelmann (2000), p. 425 et seq.

  59. 59.

    ECOSOC Resolution 1267 (XLIII), Relations with non-United Nations intergovernmental organisations in the economic and social field, 3 August 1967.

  60. 60.

    Decision reprinted in Commission of the European Communities, The European Community, international organisations and multilateral agreements, 3rd edn. January 1983, p. 35.

  61. 61.

    Statistical Commission, Commission on Population and Development, Commission for Social Development, Commission on the Status of Women, Commission on Narcotic Drugs, Commission on Crime Prevention and Criminal Justice, Commission on Science and Technology for Development, United Nations Forum on Forests, see ECOSOC, Subsidiary bodies of ECOSOC, www.un.org/en/ecosoc/about/subsidiary.shtml (last accessed 1 March 2017).

  62. 62.

    Rules of Procedure of the Functional Commissions of the Economic and Social Council, Rule 74: “Representatives of intergovernmental organisations accorded permanent observer status by the General Assembly and of other intergovernmental organisations designated on a continuing basis by the Council or invited by the commission may participate, without the right to vote, in the deliberations of the commission on questions within the scope of the activities of the organisations”.

  63. 63.

    ECOSOC Decision, UN Doc E/1993/207, 12 February 1993.

  64. 64.

    Sack (1995), p. 1249.

  65. 65.

    ECOSOC Decision, UN Doc E/1995/201, 8 February 1995.

  66. 66.

    ECOSOC Decision, UN Doc E/1995/201, 8 February 1995.

  67. 67.

    Sack (1995), p. 1250.

  68. 68.

    UN General Assembly Ressolution, UN Doc A/RES/66/288, 27 July 2012, para. 84.

  69. 69.

    UN General Assembly Resolution, UN Doc A/RES/67/290, 9 July 2013, para. 10.

  70. 70.

    For a more detailed analysis of the Union’s role in UNECE see Schmidt (2015), pp. 40–43.

  71. 71.

    Exchange of letters between the Executive Secretary of the UNECE, Tuomioj, and the European Commissioner for External Relations, Rey, 30 September and 7 October 1958, reprinted in Commission of the European Communities, The European Community, international organisations and multilateral agreements, 3rd edn. January 1983, pp. 44–46.

  72. 72.

    Scheffler (2011), p. 360, note 210.

  73. 73.

    UNECE Decision L (XXX), 15 April 1975, reprinted in Commission of the European Communities, The European Community, international organisations and multilateral agreements, 3rd edn. January 1983, p. 43.

  74. 74.

    Convention on Long-Range Transboundary Air Pollution, 13 November 1979, entry into force 16 March 1983, 18 ILM 1442 (1979). See the REIO clause in Article 14 of the Convention which provides: “The present Convention shall be open for signature […] by regional economic integration organisations, constituted by sovereign States members of the Economic Commission for Europe, which have competence in respect of the negotiation, conclusion and application of international agreements in matters covered by the present Convention”. See also Council Decision on the conclusion of the Convention on long-range transboundary air pollution, 81/462/EEC, 11 June 1981.

  75. 75.

    Rules of procedure for sessions of the Executive Body for the Convention on Long-range Transboundary Air Pollution as adopted by decision 2010/9 and amended by decision 2013/1, https://www.unece.org/fileadmin/DAM/env/documents/2016/AIR/Decision2010_9and2013_1.pdf (last accessed 1 March 2017).

  76. 76.

    Emerson et al. (2011), p. 78.

  77. 77.

    UN General Assembly Resolution, UN Doc A/RES/1995(XIX), 30 December 1964, Article II(3).

  78. 78.

    UN General Assembly Resolution, UN Doc A/RES/1995(XIX), 30 December 1964, Article II(18) and (19).

  79. 79.

    UN General Assembly Resolution, UN Doc A/RES/1995(XIX), 30 December 1964, Article II(11). See also UNCTAD, Rules of Procedure, rule 80: “Representatives of […] the intergovernmental bodies referred to in paragraphs 18 and 19 of General Assembly resolution 1995 (XIX) which are designated for this purpose by the Conference or the Board may participate, without the right to vote, in the deliberations of the Conference, its main committees and other sessional bodies upon the invitation of the President or Chairman, as the case may be, on questions within the scope of their activities.” See also the similar wording in UNCTAD, Rules of Procedure of the Trade and Development Board, rule 76 and UNCTAD, Rules of Procedure of the Main Committees of the Trade and Development Board, rule 74.

  80. 80.

    See UNCTAD, List of intergovernmental organisations participating in the activities of UNCTAD, TD/B/IGO/LIST/11, 27 October 2014, p. 4.

  81. 81.

    Emerson et al. (2011), p. 78; Scheffler (2011), pp. 446 and 619.

  82. 82.

    Barone B, The United Nations and the EU Trade Policy: the case of UNCTAD, DGEXPO/B/PolDep/Note/2016_34, January 2016, p. 6. See also Permanent Delegation of the European Union to the UN office and other international organisations in Geneva, Working with UNCTAD, http://collections.internetmemory.org/haeu/content/20160313172652/http://eeas.europa.eu/delegations/un_geneva/eu_un_geneva/economic_social/unctad/index_unctad_en.htm (last accessed 1 March 2017).

  83. 83.

    See for the internal division of competences in the EU Delegation to the UN and other international organisations in Geneva, About the EU Delegation in Geneva, 12 May 2016, https://eeas.europa.eu/delegations/un-geneva/659/about-eu-delegation-geneva_en (last accessed 1 March 2017).

  84. 84.

    Scheffler (2011), p. 341 et seq.

  85. 85.

    See e.g. Schermers and Blokker (2011), para. 1773; Scheffler (2011), pp. 340–350.

  86. 86.

    For example in the International Coffee Organization, the International Cocoa Organization and the International Olive Council. In the International Organisation of Vine and Wine (OIV), on the other hand, only (some) EU Member States are represented. However, as the Court of Justice of the EU held, the fact that the EU is not itself a member of the OIV does not preclude it from establishing a position to be adopted on its behalf by the EU Member States with regard to OIV recommendations, if these recommendations are “capable of decisively influencing the content of the legislation adopted by the EU legislature in the area of the common organisation of the wine markets”, see CJEU. Case C-399/12, Germany v Council, ECLI:EU:C:2014:2258, para. 63.

  87. 87.

    European Commission, Strategy for the progressive improvement of the EU status in international organisations and other fora in line with the objectives of the Treaty of Lisbon, 20 December 2012, C(2012) 9420 final, on file with the authors, p. 1.

  88. 88.

    President and Vice-President of the European Commission, Strategy for the progressive improvement of the EU status in international organisations and other fora in line with the objectives of the Treaty of Lisbon, 20 December 2012, C(2012) 9420 final, on file with the authors, p. 4.

  89. 89.

    Viilup E, The role of the World Bank in international trade policy, DGEXPO/B/PolDep/Note/2016_29, January 2016, p. 3.

  90. 90.

    Wouters et al. (2006), p. 403. Here, the EU is represented by its Development Commissioner, see Baroncelli (2011), p. 641.

  91. 91.

    See for more details World Bank, Organization, www.worldbank.org/en/about/leadership (last accessed 1 March 2017).

  92. 92.

    See International Bank for Reconstruction and Development, International Finance Corporation, International Development Association, Executive Directors and Alternatives, 26 January 2017, http://siteresources.worldbank.org/BODINT/Resources/278027-1215526322295/BankExecutiveDirectors.pdf, and Multilateral Investment Guarantee Agency, Directors and Alternates, 26 January 2017, http://siteresources.worldbank.org/BODINT/Resources/278027-1215526322295/MIGADirectors.pdf (both last accessed 1 March 2017).

  93. 93.

    See International Bank for Reconstruction and Development, International Finance Corporation, International Development Association, Executive Directors and Alternatives, 26 January 2017, http://siteresources.worldbank.org/BODINT/Resources/278027-1215526322295/BankExecutiveDirectors.pdf, and Multilateral Investment Guarantee Agency, Directors and Alternates, 26 January 2017, http://siteresources.worldbank.org/BODINT/Resources/278027-1215526322295/MIGADirectors.pdf (both last accessed 1 March 2017).

  94. 94.

    See Sect. 3.

  95. 95.

    Baroncelli (2013), p. 209.

  96. 96.

    Eurodad, European Coordination at the World Bank and International Monetary Fund: A Question of Harmony?, 2016, p. 13.

  97. 97.

    Baroncelli (2013), p. 205; Baroncelli (2011), note 6.

  98. 98.

    Eurodad, European Coordination at the World Bank and International Monetary Fund: A Question of Harmony?, 2016, p. 13.

  99. 99.

    Eurodad, European Coordination at the World Bank and International Monetary Fund: A Question of Harmony?, 2016, p. 14.

  100. 100.

    Trust Funds and Cofinancing Framework Agreement between the European Community, represented by the Commission of the European Communities, and the International Bank for Reconstruction and Development, the International Development Association and the International Finance Corporation, Brussels, 20 March 2009, http://ec.europa.eu/europeaid/sites/devco/files/agreement-cofinancing-ec-wb-2009bis_en.pdf (last accessed 1 March 2017).

  101. 101.

    Framework Agreement between the European Commission on behalf of the European Union and the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation and the Multilateral Investment Guarantee Agency, signed in Brussels on 30 July and in Washington on 15 August 2014.

  102. 102.

    World Bank, European Commission and World Bank sign agreement to boost development cooperation, Press release, 15 April 2016, www.worldbank.org/en/news/press-release/2016/04/15/european-commission-and-world-bank-sign-agreement-to-boost-development-cooperation (last accessed 1 March 2017).

  103. 103.

    Viilup E, The role of the World Bank in international trade policy, DGEXPO/B/PolDep/Note/2016_29, January 2016, p. 4.

  104. 104.

    Wouters and Chané (2016), p. 322.

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Chané, AL., Wouters, J. (2017). The European Union in United Nations Economic Governance Fora. In: Bungenberg, M., Krajewski, M., Tams, C., Terhechte, J., Ziegler, A. (eds) European Yearbook of International Economic Law 2017. European Yearbook of International Economic Law, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-319-58832-2_19

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