ABSTRACT
The EU's external action strategy, launching institutional isomorphism in the common neighborhood, is determined by the essence of the Union as a political entity. The global dimension of the EU's trade power is arranged by means of specific and diffuse reciprocity, the EU contributes to gradually shaping the multilateral world system by transforming the trade agenda on a deep level. This chapter focuses on the multilevel governance system that allows the EU to act unconventionally not only within its borders, but also externally. It also shows how the multilevel governance system influences the EU's power relations, and analyzes how the authority-type approach is manifested in the Europeanization policy and in conditionality tactics. The chapter explores the fruitfulness of the EU's use of the 'golden membership carrot'. It then explains the coercive instruments used by the Union (namely, economic sanctions) as well as the constraints that multilevel governance places on their use.
