Shifting Sands: Enhancing Democratic Oversight in the EU’s Unilateral Trade Policy

Abstract

This paper critically evaluates the European Union’s increased use of unilateral trade instruments within its broader trade policy, aiming to enhance ‘open strategic autonomy.’ It addresses the significant expansion of the EU’s trade policy toolbox with regulations like the Foreign Direct Investment Screening, the Anti-Coercion Instrument, the Foreign Subsidies Regulation and the Deforestation Regulation, which aim to restore a level playing field, bolster security, and sustainability. However, this shift raises concerns about democratic accountability, particularly in transparency and oversight mechanisms. The study presents a detailed analysis of the decision-making processes associated with these unilateral instruments, highlighting substantial accountability gaps in the face of growing EU institutional powers. Offering a taxonomy of these processes, the paper assesses their alignment with the EU’s constitutional principles of representative democracy. It concludes with proposals for reforms that increase both the legitimacy and accountability of these policies, enhancing democratic oversight without necessitating treaty changes.