Download - Trade Agreements of The European Communities
![Page 1: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/1.jpg)
European Union
Trade Agreements
Karen BoniventoMohammed Hamdan
Laura RodríguezDaniel Salcedo
![Page 2: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/2.jpg)
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
![Page 3: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/3.jpg)
• 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
![Page 4: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/4.jpg)
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
![Page 5: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/5.jpg)
Source: European Comission
Member States
![Page 6: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/6.jpg)
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
![Page 7: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/7.jpg)
World trade: Main Players 2008
EU: 1/5 of world trade
![Page 8: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/8.jpg)
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
![Page 9: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/9.jpg)
Trade Partners: Extra 2009
![Page 10: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/10.jpg)
Trade Partners: Intra
![Page 11: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/11.jpg)
Level of Exports and Imports / Industries and Partners 2009
![Page 12: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/12.jpg)
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
![Page 13: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/13.jpg)
Countries
Bilateral Agreements
![Page 14: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/14.jpg)
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.
![Page 15: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/15.jpg)
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
![Page 16: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/16.jpg)
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
![Page 17: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/17.jpg)
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.
![Page 18: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/18.jpg)
EconomicBlocs
Bilateral Agreements
![Page 19: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/19.jpg)
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.
![Page 20: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/20.jpg)
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
![Page 21: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/21.jpg)
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
![Page 22: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/22.jpg)
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.
![Page 23: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/23.jpg)
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
![Page 24: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/24.jpg)
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).
![Page 25: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/25.jpg)
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.
![Page 26: Trade Agreements of The European Communities](https://reader033.vdocuments.site/reader033/viewer/2022061219/54b966114a79593c738b4648/html5/thumbnails/26.jpg)
- 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