Trade and Migration : How the EU Can Influence Migration Through Trade

In the EU, migration is one of the most politically reactive topics since the end of the Cold War. The great increase of asylum seekers in the EU during the years 2015-16 has led to a surge of right-wing political parties across the continent. For most migrants, the reasons to migrate to the EU include security, demography and human rights as well as poverty and climate change, but another important factor are the rationales embedded in the theory of international trade. The aim of this paper is to assess the current state of migration policy in connection with international trade and to provide policy suggestions to enhance trade and migration flows.By assessing relevant literature, this study found a strong correlation between the development of trade and the development of migration. Yet, whether the correlation is positive or negative cannot be said with absolute certainty. While neo-classical models of international trade suggest that trade reduces migration, new international trade theory appears to show the opposite. No matter which correlation proves to be true, it must not mean that the other one is false, since it has also been observed that trade may boost migration in the short term but lead to a decrease in the long run due to overall economic growth and the establishment of other trade relationships. Even though the topic of migration is actively being avoided in modern instruments of international trade in order to circumvent social and political difficulties, it can still be found in disguise within WTO agreements such as GATS. Since there are international trade instruments that can address and potentially shape migration, the EU can make use of its liberal trade policy to manipulate the influx of migrants in order to strike a balance between trade liberalization and immigration. The most important tool to do this is to actively support trade partners within the framework of trade agreements to eliminate the reasons for migration, such as poverty and environmental destruction. The EU is currently working on the stronger inclusion of the topic of migration into its international trade policy