1 From Conflict to Cooperation: The Transformation of Australian Foreign Policy Towards the European Union Edward William Yencken BA (Hons) Supervisors: Professor Philomena Murray Associate Professor Timothy Lynch Submitted in total fulfilment of the requirements of the degree of Doctor of Philosophy School of Social and Political Sciences Faculty of Arts The University of Melbourne 2 Abstract Given the emphasis placed on the US alliance and engagement with the Asia-Pacific region, Australian foreign policy can appear restricted in its focus. Australia’s approach to relations with the European Union (EU) reflects this situation, as they attracted limited attention and were centred on a number of bilateral disputes up until the early 1990s. This thesis, which examines the period up until the announcement of the opening of free trade agreement (FTA) negotiations in 2017, argues, however, that Australia over the past two decades has forged an increasingly close relationship with the EU. This development has involved an emphasis on substantive cooperation in areas such as foreign and security policy, aid delivery, economic and trade matters, and climate change. Two case studies, the Common Agricultural Policy (CAP) and the Eurozone crisis, are used to demonstrate the transformation of Australian perceptions of the EU. This has seen the EU transitions from an actor behaving in a manner contrary to Australian interests to now being a politico-economic ally. These case studies also demonstrate how Australia’s past emphasis on bilateral disputes has been largely overcome with the signing of substantive bilateral agreements predicated on shared interests. 3 Declaration i. The thesis comprises only my own work towards the degree of PhD except where indicated in the Acknowledgements. ii. Due acknowledgement has been made in the text to all other material used. iii. This thesis is fewer than 100,000 words in length, exclusive of tables, maps, bibliographies and appendices. Signature Date 4/9/2017 4 Acknowledgments As part of the process of writing my thesis there have been many people who have been of great assistance but Professor Philomena Murray, as my principal supervisor, deserves particular thanks. I would not have been able to complete such a thesis without Philo’s intellectual guidance and encouragement. I thank Philo for all her comprehensive feedback and her patience particularly in the latter stages. I would also like to thank Associate Professor Timothy Lynch for his support and direction. Tim has played an important role in sharpening my analysis and argument throughout the thesis. The first substantiative part of the research component of this PhD was conducted at Universität Trier. I would like to thank particularly Dr Manuel Schmitz for his expertise and for agreeing to host me in such an intellectually stimulating department. The second major component research component of this thesis was conducted at the Freie Universität Berlin, Germany as part of the Nachwuchsforschergruppe (NFG) Research Project “Asian Perceptions of the EU: External views on the EU as a Civilian Power”. I would like to thank Dr May-Britt Stumbaum for hosting me at the university and for her expertise. I would also like to thank Dr Olivia Gippner and Dr Garima Mohan for their support and friendship while in Berlin. I acknowledge the help of the Melbourne Travelling Abroad Scholarship (MATS), Graduate Research in Arts Travel Scheme (GRATS) and the Overseas Research Experience Scholarships (ORES) for contributing towards my research overseas. I would also like to thank all the officials in Brussels and Canberra who took time out of their busy schedules to be interviewed. Their perspectives have been invaluable in shaping the core original research component of this thesis. For his help I would like to acknowledge and thank Professional editor Neil Conning who provided copyediting and proofreading services, according to the guidelines laid out in the university-endorsed national ‘Guidelines for editing research theses’. I would like to thank my office mates and friends, Dr Sandra Silfvast and Dr Lachlan McKenzie who were sources of support and good humour throughout much of the PhD journey. I would also like to thank other friends in and around the department 5 such as Hamza, Bibiana, Sophie, Dave and Tamara. I have been very lucky to have been surrounded by such kind and compassionate people. Finally, I would like to thank my housemates and family for their support throughout the duration of my thesis. To Lach Mason and Tom Statham I have been very lucky to have such good friends not only as housemates but as sources of humour and scientific assistance. To my family Mandy, Edward, Kate and Bunty, I could not have completed this entire process without your support in all meanings of the word. I cannot thank you enough for your good humour, compassion and for simply being there for the entire journey. 6 Table of Contents Abstract ....................................................................................................... 2 Declaration .................................................................................................. 3 Acknowledgments ...................................................................................... 4 Abbreviations .............................................................................................. 9 List of Figures and Tables ........................................................................ 11 Chapter 1: Introduction ............................................................................. 13 Problem Statement ................................................................................................... 14 Hypothesis................................................................................................................ 17 Methodology ............................................................................................................ 21 Thesis Outline .......................................................................................................... 24 Chapter 2: Examining the Evolution of Australian Foreign Policy and Relations with the EU ............................................................................... 29 Introduction .............................................................................................................. 29 A Framework for Understanding Australian Foreign Policy Priorities: Wesley’s characterisations of realism...................................................................................... 31 The Australian Context: The dominant conceptualisations and political party association ................................................................................................................ 35 Australian Foreign Policy and Relations with the EU ............................................. 41 Conclusion ............................................................................................................... 47 Chapter 3: Australia as a Foreign Policy Actor ........................................ 49 Introduction .............................................................................................................. 49 The US Alliance ....................................................................................................... 50 Asia-Pacific Engagement ......................................................................................... 58 Current Foreign Policy Concerns............................................................................. 67 Conclusion ............................................................................................................... 72 Chapter 4: The EU-Australia Relationship: From bilateral disputes to substantive cooperation ............................................................................. 74 7 Introduction .............................................................................................................. 74 The Dominant Influence of the CAP and UK on Relations with the EU ................ 76 Europe’s Declining Relevance to Australian Interests? ........................................... 84 Trade and Investment as the Impetus for Closer Cooperation ................................. 87 The Broadening Relationship .................................................................................. 93 The ‘Intensification’ of Relations ............................................................................ 98 Conclusion ............................................................................................................. 103 Chapter 5: Competitors or Partners? Australia and the EU in the Asia- Pacific region .......................................................................................... 106 Introduction ............................................................................................................ 106 Reengaging with Asia: The EU’s approach to Asia-Pacific engagement .............. 107 Australia and the EU: Competitors or partners for markets in the Asia-Pacific region?.................................................................................................................... 115 The Growing Recognition of Shared Security Interests ........................................ 122 Aid and Development Cooperation ....................................................................... 129 Conclusion ............................................................................................................