ABSTRACT
This chapter examines the implications of Europe's regional trade strategy with developing countries. It identifies the underlying objectives of Europe's regional trade strategy and to assess the extent to which these objectives are complementary to the development goals of partner countries. The chapter suggests that Europe's trade negotiation objectives not always be compatible with the long term sustainable development goals of the regional partners. The chapter summarizes the findings of the Sustainability Impact Assessment (SIA) studies for the Euro-Mediterranean FTA and the EU-Mersocur trade negotiations, highlighting the trade-offs between the economic efficiency and growth gains and environmental and social losses resulting from trade liberalizaton. It assesses the influence that the SIA analyses have had on policy and decision making processes. The focus in the EC's new trade strategy on "competitiveness-driven' free trade areas (FTAs) can be compared with the stated goals of EU trade policy during the first half of the decade when Pascal Lamy was Trade Commissioner.
