trade agreements of the european communities
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Universidad del Norte. Negocios Internacionales. Asignatura: Integración EconómicaTRANSCRIPT
European Union
Trade Agreements
Karen BoniventoMohammed Hamdan
Laura RodríguezDaniel Salcedo
1. History2. Members3. Level of integration4. Role in World Trade5. Trade goods6. Level of exports and imports: industries and
partners7. Agreements with countries and blocs8. Future
Agenda
• What is the European Union?A unique economic and political partnership
between 27 democratic European countries.• What are its aims?Peace, prosperity and freedom for its 498 million
citizens — in a fairer, safer world.
Introduction
History
45-
59
• A peaceful Europe – the beginnings of cooperation
60’s
• The ‘Swinging Sixties’ – a period of economic growth
70’s
• A growing Community – 1st enlargement: 6 to 9 members
80’s
• The changing face of Europe - the fall of the Berlin Wall
90’s
• A Europe without frontiers: Treaty of Maastricht 93’
00’s
• A decade of further expansion: Euro
Source: European Comission
Member States
Level of Integration
• Single Market: The EU economy consists of a single/common market and is represented as a unified entity in the WTO.
- Free circulation of production factors- Abolishment of Customs duties internally- Uniform system for taxing imports.
Single Market Economic Union
- Euro- European Central Bank- Government and Monetary Policies
World trade: Main Players 2008
EU: 1/5 of world trade
Export Commodities:Machinery, motor vehicles, aircraft, plastics, pharmaceuticals and other chemicals, fuels, iron and steel, nonferrous metals, wood pulp and paper products, textiles, meat, dairy products, fish, alcoholic beverages.
Import Commodities:Machinery, vehicles, aircraft, plastics, crude oil, chemicals, textiles, metals, foodstuffs, clothing.
Trade goods
Source: CIA
Trade Partners: Extra 2009
Trade Partners: Intra
Level of Exports and Imports / Industries and Partners 2009
Agreements between two political entities, thus legally binding these two territories only
• Customs unions, free-trade, association, co-operation and partnerships
• These preferential trade agreements are notified under either Article XXIV of the GATT or Article V of the GATS.
Bilateral Agreements
Countries
Bilateral Agreements
United States"Framework for Advancing
Transatlantic Economic Integration between the USA and the EU"
• Transatlantic Economic Council (TEC) : guides and accelerates the implementation of work designed to closer integrate economies.
Impact on economy of Non-Tariff Measures (NTMs) between the EU and the US:
1. For the EU, no NTMs will increase the GDP (€122 billion per year) and exports (+2.1%).
• Gains: motor vehicles, chemicals, pharmaceuticals, food and electrical machinery.
2. For the US, no NTMs are estimated at €41 billion per year for GDP and 6.1% for exports.
• Gain: electrical machinery, chemicals, pharmaceuticals, financial services and insurance sectors.
The US gains more in exports and the EU more in income.
China
• The EU's open market has been a large contributor to China's export-led growth.
• EU is committed to open trading relations with China. • Issues to be seen in detail:
• trades fairly, respects intellectual property rights and meet its WTO obligations.
1. EU goods exports to China 2009: €81.6 billion 1. Machinery and transport equipment, miscellaneous
manufactured articles, chemicals2. EU goods imports from China 2009: €214.7 billion
1. The same but NO chemicals
Free Trade Agreement (FTA)(2007): beginning of negotiations between EU and India to increase their trade in both goods and services
• Six negotiating rounds have been held(2009)
• EU goods exports to India 2007: €26.2 billion• EU goods imports from India 2007: €29.4
billion
India
Russia
• Russia: 52.3% of its overall trade with EU
• EU-Russia relations: ongoing WTO negotiations on a new agreement to replace the current Partnership and Co-operation Agreement(PCA)• PCA:
• EU imports from Russia mostly not subject to any restrictions.• EU restrictions, in the steel sector, are addressed under a bilateral
agreement (steel quotas )
• Imports from Russia: energy and mineral fuels products, manufactured goods chemicals and raw materials.
• Exports to Russia: all categories of machinery and transport equipment, manufactured goods, food and live animals.
EconomicBlocs
Bilateral Agreements
Mercosur
• In 2008, the EU is Mercosur's first largest trading partner• 20.7% of total Mercosur trade
• In 2009, Mercosur ranks 8th among EU trading partners• 2.7% of total EU trade.
• EU market for agricultural exports (19.8% of total EU agricultural imports)
• Mercosur market for industrial products:• machinery, transport equipment and chemicals.
Andean Countries
• Second largest trading partner after the US.
1. EU imports primary products: agricultural products (47.5%); fuels and mining products (41.1%).
2. EU exports manufactured goods: (89.6%) notably machinery and transport equipment (47.4%) and chemical products (18.4%).
• The EU grants the Andean countries preferential access to its market under the EU's General System of Preferences
ASEM (Asia-Europe Meeting)
ASEM(Asia-
Europe Meeting)
• Informal process of dialogue and co-operation established in 1996• non-binding dialogue forum based on equality
and consensus• three pillars: addresses political, economic and
cultural issues
• Objective: make relationships between the two regions stronger
ASEAN Association of South
East Nations
• In 2006, EU-ASEAN trade represented 5% of total world trade. average annual growth rate of 4% 1. exports to ASEAN: chemical products, machinery and
transport equipment 2. imports from ASEAN: machinery and transport equipment,
as well as chemicals, textiles and clothing.
The Trans-Regional EU-ASEAN Trade Initiative (TREATI): promote region-to-region economic relations, particularly by addressing non-tariff barriers through regulatory co-operation and ultimately to lay the foundations for a preferential regional trade agreement in the future.
Africa, Caribbean,
Pacific
Up to 2007, ACP countries enjoyed preferential access to the EC market. ACP countries could apply barriers on imports from the EC, whereas they had almost duty free-quota free access to EC market.
Cotonou Agreement • Reduction and eventual eradication of poverty • Contribute to sustainable development• Integrate the ACP countries into the world
economy
Central Asia
• Geostrategic importance to the EU: A bridge to China as well as to Afghanistan and the Middle East
• Source of significant energy imports for the EU• EU imports: crude oil, gas, metals and cotton
fiber• EU exports: machinery and transport equipment.
• All five Central Asian countries are beneficiaries of the EU's Generalized System of Preferences (GSP).
Central America
• Trade remained largely stable at around 10% (last decade)
• This region has actively sought to widen its export markets in Europe
• Export to the EU: agricultural products (coffee, bananas and other fruits, together= 36% of exports to the EU in 2007)
• Exports from the EU: machinery, chemicals, ships, boats, vehicles and fuels.
- Major challenges to the future of Europe lie ahead
- Institutional process of updating the rules governing the relations between the member countries
- More members joining the Eurozone
Future