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The EU as a Trading Partner
The EU as a Trade Partner
The EU in Retrospect
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Unique partnership between 28 European countries
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Created after WWII
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1958: creation of EEC
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1993: creation of EU
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Focus on improving human rights and increasing economy
The EU in Trade
- One single authority to handle matters dealing with trade
agreements.
- 2014 GDP totaled 13,920,541 EUR
- Member of the WTO since 1995
- Strives to reduce trade barriers and supports Trade for All
- Strong player that dominates as the largest exports of services and
manufactured goods around the world
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50% of the EU’s GDP
- Tries to trade with as many people as possible.
Advantages of the EU as a Trade Partner
Euro and Economic Integration
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Positive influence on the unification and cooperations between EU members.
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Creation of the Eurozone to facilitate interactions, further economic prosperity, allow
free movement of goods and services, stabilization of interest rates, and elimination
of exchange rates.
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Better trade relations with foreign investors and international corporations
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Allows Less developed countries to trade with more countries because they act as a
single market
Economic Growth
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Increased globalization means there is an increase in traded goods in the
interconnected global community.
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Focus on outward-oriented economy in hope sto become the biggest trading
partner in the world
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Advantage of lower prices and increased price diversity
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Single Market Act to standardized practices across the entire EU
Employment Opportunities
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EU export industry accounts for 31 million jobs for Europeans
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14% of jobs in EU
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EU services industry accounts for 36% of jobs in EU
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As trade increases, so does the need for jobs which means that
people from other EU countries can freely move to fill employment
gaps
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Equal opportunity for all europeans to move freely between borders
should they want work in another country and reside in another
country if they are employed there.
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Encouragement for citizens to enforce their rights o work in EU states.
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Reduction of discrimination and increase transparency
Securing Economic Ties Between Nations
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EU likes to increase the amount of trading partners it does business which
secures economic ties.
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Lowering/removing trade barriers, allows for more countries to have access to
the European market
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Strong alliance with the US means that many jobs are provided by US owned
companies
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Dedicated to developing nearly perfect trading relations
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EU and Canada trade agreement of 0 tariffs between countries
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Success of one country is the success or the other EU countries betcause they
act a sinlge market.
Reduces Poverty
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LDC’s can strengthen their economies through increased trade with the EU
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Reduced barriers between poorer countries to encourage investment in trading opportunities
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EU engages in a lot of initiatives to improve the conditions of trade with LDCs
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Online Helpdesks
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Education of rules and regulations of trade
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AID FOR TRADE
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Provides infrastructure to ameliorate trade conditions
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Improved ports
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Assistance reaching safety standards
Assisting LDC’s creates opportunities to grow
Disadvantages of the EU as a Trade Partner
Loss of Power
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EU judicial system overruling member state’s laws or legal decisions
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Loss of border control
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Loss of financial control
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No complete individual power anymore
Cost of the EU
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Members pay a percentage of yearly national income to EU
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In return, EU promises many advantages
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Richer countries turn out to pay a lot to save the poorer countries
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For richer countries, the EU membership costs more than it brings
International Flow of Workers
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Citizens have the right to work and travel in all of the member states
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Members are obliged to treat every guest from other country, the same
as they would treat their own citizens
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Too large difference between income in poorer and richer countries in
EU.
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Workers flow to richer countries for higher wages
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Employers only want cheaper workers
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Jobs are taken, many people jobless at home
Implementation of the Euro
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Implementation of Euro has cost a lot
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Prices have risen a lot since the Euro
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Due to bad exchange rates the population has become poorer
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Higher prices and less money → People cannot pay bills
anymore
Growth of the EU
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More and more countries entering EU
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EU focuses on growth
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First only stable and wealthy economies
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Later more unstable economies entered as well, dragging down the economy
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Rich countries need to pay in order to rise the bad economies
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Entering more unstable/unhealthy economies will only bring the EU economy
more down
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Also Majority Voting becomes harder with more members
EU as a Trade Bloc
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EU only stimulates trade between member countries, but forget about rest of
the world
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EU has created many non-tariff barriers in order to protect its own economy at
cost of other countries in the world
Current Situations
Europe: 2020 Strategy
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New economic strategy for the decade of 2010 - 2020 that will help the EU recover
after the failure of the Lisbon Treaty
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Originated after the 2008 economic crisis
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Priorities of the Strategy:
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Targets:
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Smart, Sustainable, Inclusive growth
Raise investments on R&D, Increase educational opportunities, Lower
greenhouse gases and increase energy efficiency, address current
employment struggles, reduce poverty
Flagship Initiatives:
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Digital agenda, innovation union, youth on the move, resource efficient
Europe, industrial policy for the globalisation era, agenda for new skills and
jobs, european platform against poverty
Trade for All - New EU Trade and Investment Strategy
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Make trade agreements more effective
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Create more opportunities and more jobs in Europe
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More transparency
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Agreement will generate benefits for:
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Workers in EU
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Citizens of the EU
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Small and Medium-sized enterprises
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And for people in developing countries
Conclusion
The EU is a very successful
trading partner, and
continuously trying to improve
itself