Negotiating European Trade Policy: Industrial Influence, Diplomatic Constraints and Bureaucratic Behaviour in the 1995 EU-Israel Association Agreement
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Negotiating European Trade Policy: Industrial Influence, Diplomatic Constraints and Bureaucratic Behaviour in the 1995 EU-Israel Association Agreement by Yvette Camilla Alt London School of Economics and Political Science Ph.D., International Relations UMI Number: U183312 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Disscrrlation Publishing UMI U183312 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 T f 2139 o^oiz Table of Contents 1. Introduction Forms of International Influence Multi-Level Negotiating Models Thesis Structure and Methodology Evolution of Community-Israd Relations 2. Community-Israel Trade Agreemaits 1958-1995 Introduction 1964 Trade Agreement 1970 Agreement 1975 FT A Effects of the 1975 Agreement Conclusions 3. EU-Israd Diplomatic Relations 1958-1995 Introduction EPC Community Meditaranean Policy Israel’s Diplomatic Positions EU and the Peace Process Conclusions Developmaits in the Community’s and Israel’s Abilities to N ^otiate a New Trade Agreement 4. The EU’s Ability to Negotiate and Ratify Extanal Trade Agreements 1984-1995 Introduction Changes in Negotiation betweai the EC and Third Parties 1984-1995 The Community’s Ethnic “Level Two” Changes in Ratification in the EC 1984-1995 Conclusions 5. The Israeli Political Economy in Negotiation and Ratification of Foreign Trade Agreements Introduction Israd’s Economic Institutions Israd’s Changing Econony Trade Factors and Patterns Policy-Making in Israd Conclusions Negotiating Towards the EU-Israd Association Agreement 6. Negotiating Dynamics 1993-1996 Introduction Motivations to Negotiate the 1995 EU-Israd Association Agreement Level-Two Unity and Win-Set Formulation Character of Negotiations Negotiations on Specific Issues Ratification Conclusions 7. The Formal Negotiations Introduction Pre- Pre-Negotiation Pre-Negotiation I: 16 December 1992 - Fd>ruary 1993 Pre-Negotiation H: March 1993 - October 1993 Pre-Negotiation III: November 1993 - Decanber 1993 First Phase of N%otiations: 20 December 1993 - July 1994 Reaching the Preliminary Conclusions: August - Decanber 1994 Crisis of Conclusion: December 1994 Second Phase of Negotiations I: January - March 1995 Second Phase of N^otiations H: March - May 1995 Last Minute Adjustments: June - July 1995 Concluding the Agreements: August - Decanber 1995 EU Ratification: Decemba 1995 - June 2000 Conclusions 8. Commercial Influences on the Negotiations Introduction Formal Industrial Input in the N%otiations Israeli Industry Lobbying in Europe European Firms Lobbying the Agreement Israeli Firms Lobbying in Israel Public Procuremait Conclusions Conclusions 9. Conclusion Using Trade Policy to Achieve Foreign Policy Goals The European Commission’s Relative Autonoiny in Shaping Trade Policy The Role of Member-States in Commission-Driven Negotiations Decision-Making in a Bureaucratic System Israd’s Transformation in the early 1990s The EU and Isradi Particularity Political Pressure and the 1995 EU-Israd Association Agreemait 10. Bibliography and List of Interviews A bstract This thesis explores the role of Government negotiations, industrial pressure and private interests in the development of European Union (EU) trade relations with Israd, focusing on the 1995 EU-Israel Association Agreement. Enploying a two-level metaphor, it discusses the evolution of the EU’s ability to n^otiate and ratify trade agreemaits, the history of European-Israeli political and commercial relations, and Israd’s political economy. This thesis posits that trade policy can be used to further ideological foreign-policy goals, but that the contait of trade policy is ultimately shaped less by “high political” considaations than by developing linkages at the domestic levels. In evaluating the ability of commacial and scientific communities to sway the progress of the Association Agreemait negotiations, this thesis finds that the existaice of some types of links between Israel and EU member states allowed Isradi interests to gain domestic “allies” in Europe, and thus to secure additional trade concessions. A further consideration developed in this paper is the existaice of at least two “domestic” arenas within the Community; at the transnational EU level, within the member states, and increasingly at the regional level. This thesis discusses the way in whidi both negotiators and private interests recognised these tensions and exploited traditional political relations at the national and occasionally the regional levels in order to further affect negotiation and ratification capabilities of the Community. The thesis thus argues for a more corrplex rendering of the traditional multi-levd analytical model, which assumes a discrete “level one”. Instead, it puts forward a multi level model, in which the ability of domestic communities to constrain negotiators is applied not only to the Community’s own procedures, but also to its sub-units. Acronyms used in this Thesis ACP African-Caribbean-Padfic (states) AIPAC American-Israd Public Affairs Committee ARC Academic Research Collaboration Programme BIP AC British-Israel Public Information Centre BIRD (US) Bilateral Industrial Research and Developmait Foundation Caobisco Association of Chocolate, Biscuit and Confectionary Industries of the EU CAP Common Agricultural Policy CCP Common Commercial Policy CEJI Centre Européene Juive pour Information CEMB Consorzio Export Monza & Brianza CET Common External Tariff CERN Centre Européen pour la Recherche Nucléaire CFI Conservative Friends of Israel CFO Commonwealth and Foreign Office CFSP Common Foreign and Security Policy COLA Cost of Living Allowance Coreper Committee of Permanent Representatives Cost European Co-operation in the Field of Scientific and Technical Research CRIF Council Représentatif des Institutions Juives de France CSCE Conference on Security and Cooperation in Europe DCS IBM Data Center Services DFG Deitsche Forschungsgemeinschaft DG Directorate General DM Deutsch Mark DMC Democratic Movement for Change DTI Departmait of Trade and Industry EBU European Broadcasting Union EC European Community ECJ European Court of Justice ECSC European Coal and Steel Community EE A European Economic Area EEC European Economic Community EFT A European Free Trade Association EEB European Investment Bank EMBO European Molecular Biology Association EMBL European Molecular Biology Laboratory EP European Parliament ESA European Space Agency ESC Economic and Social Committee ESF European Social Fund Esprit European Strategic Programme of Research and Development in Information Technology EU European Union Euratom European Atomic Energy Committee FDI Foreign Direct Investment FICC Federation of Israeli Chambers of Commerce FRG Federal Republic of Germany FT A Free T rade Agreement GATT General Agreemait on Tariffs and Trade GDP Gross Domestic Product GMP CHobal Mediterranean Policy GNP Gross National Product GPA Government Purchasing Agreement GSP Generalised System of Preferences H -0 Heckscher-Ohlin-Samuelsen (Model) IMPs Integrated Mediterranean Programmes JET Joint European Torus JRC Joint Research Centre LFI Labour Friends of Israel MAI Manufacturers Association of Israel MEP Memba" of the European Parliament MFN Most Favoured Nation (trading status) MNC Multinational Corporation MK Memba of the Knesset MP Memba of Parliament NAFTA North-American Free Trade Agreement NGO Non-Govemmental Organisation NIS New Israeli Shekel NMP New Mediterranean Policy NTB Non-tariff Barrier OECD Organisation for Economic Cooperation and Developmait OJ Official Journal (of the European Union) OPEC Organisation of Petroleum Exporting Countries OPT Outward Processing Traffic PABX Private Automatic Branch Exchange PAC Political Action Committee PHARE Pologne, Hongrie, Assistance à la Réstructuration Economique PLO Palestinian Liberation Organisation QMV Qualified Majority Voting R&D Research and Development RMP Renovated Mediterranean Policy SEA Single European Act SG Secretariat General SrVMO Steuncomité Israelische Vredesgroepen en Mensenrechtenorganisaties TABD Trans-Atlantic Business Dialogue TEU Treaty of European Union UNESCO United Nations Education, Scientific and Cultural Organisation UNIFIL United Nations Interim Force in Lebanon UP A Universal Provision Act WTO World Trade Organisation WZO World Zionist Organisation Chapter One Introduction: Explaining EU Israel Trade Relations Forms of International Influence Multi-Level Negotiating Models Two-Level Games Multi-Level Negotiating Models Multi-Level Negotiating Rules Thesis Structure and Methodology Chapter One Introduction: Explaining EU-Israel Trade Relations This thesis seeks to explain the central paradox of the European Union’s (EU’s) attitude toward Israel. * Imbued with potent expectations and symbolism, and constituting a prominent part of the evolution of European Political Cooperation (EPC), the Community’s diplomatic relations with Israel have for many years been complex and sometimes difiScult. Community positions on the Arab-Israeli conflict have frequently differed from Israel’s positions,