ABSTRACT

Europe has always played an important role in international economic negotiations. In the period after 1945 when the United States provided leadership, European countries were important partners in establishing the Bretton Woods system and in the early development of the international trading system. From 1958 and the establishment of the European Economic Community (EEC) Europe's role became more complex. It was no longer the national governments alone that played a role but also the EEC and subsequently the European Community (EC) and European Union (EU). As European integration widened and deepened the role of the EU, as opposed to that of individual countries, progressively increased. But it is important to remember that the member states of the EU still shape Europe's economic diplomacy. Even when there is exclusive EU competence for an issue, it is the member states and to a limited but increasing extent the European Parliament that are the principals. This chapter draws widely on Woolcock 2012 (forthcoming).