Trade Agreements of The European Communities

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Universidad del Norte. Negocios Internacionales. Asignatura: Integración Económica

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Trade Agreements of The European Communities

  1. 1. European Union<br />Trade Agreements<br />Karen Bonivento<br />Mohammed Hamdan<br />Laura Rodríguez<br />Daniel Salcedo<br />
  2. 2. Agenda<br />History<br />Members<br />Level of integration<br />Role in World Trade<br />Trade goods<br />Level of exports and imports: industries and partners<br />Agreements with countries and blocs<br />Future<br />
  3. 3. Introduction<br />What is the European Union?<br />A unique economic and political partnership between 27 democratic European countries.<br />What are its aims?<br />Peace, prosperity and freedom for its 498 million citizens — in a fairer, safer world.<br />
  4. 4. History<br />
  5. 5. Member States<br />Source: EuropeanComission<br />
  6. 6. Level of Integration<br />Single Market: The EU economy consists of a single/common market and is represented as a unified entity in the WTO.<br /><ul><li>Free circulation of production factors
  7. 7. Abolishment of Customs duties internally
  8. 8. Uniform system for taxing imports.</li></ul>SingleMarket<br />EconomicUnion<br /><ul><li>Euro
  9. 9. European Central Bank
  10. 10. Government and Monetary Policies</li></li></ul><li>World trade: Main Players 2008<br />EU: 1/5 of world trade<br />
  11. 11. Trade goods<br />Source: CIA<br />
  12. 12. Trade Partners: Extra 2009<br />
  13. 13. Trade Partners: Intra<br />
  14. 14. Level of Exports and Imports / Industries and Partners 2009<br />
  15. 15. Bilateral Agreements<br />Agreements between two political entities, thus legally binding these two territories only<br /><ul><li>Customs unions, free-trade, association, co-operation and partnerships
  16. 16. These preferential trade agreements are notified under either Article XXIV of the GATT or Article V of the GATS.</li></li></ul><li>Bilateral Agreements<br />Countries<br />
  17. 17. United States<br />"Framework for Advancing Transatlantic Economic Integration between the USA and the EU" <br /><ul><li>Transatlantic Economic Council (TEC) : guides and accelerates the implementation of work designed to closer integrate economies.</li></ul>Impact on economy of Non-Tariff Measures (NTMs) between the EU and the US:<br />For the EU, no NTMs will increase the GDP (€122 billion per year) and exports (+2.1%).<br /><ul><li>Gains: motor vehicles, chemicals, pharmaceuticals, food and electrical machinery.  </li></ul>For the US, no NTMs are estimated at €41 billion per year for GDP and 6.1% for exports. <br /><ul><li>Gain: electrical machinery, chemicals, pharmaceuticals, financial services and insurance sectors.
  18. 18. The US gains more in exports and the EU more in income. </li></li></ul><li>China<br /><ul><li>The EU's open market has been a large contributor to China's export-led growth.
  19. 19. EU is committed to open trading relations with China.
  20. 20. Issues to be seen in detail:
  21. 21. trades fairly, respects intellectual property rights and meet its WTO obligations.</li></ul>EU goods exports to China 2009: €81.6 billion <br />Machinery and transport equipment, miscellaneous manufactured articles, chemicals<br />EU goods imports from China 2009: €214.7 billion<br />The same but NO chemicals<br />
  22. 22. India<br />Free Trade Agreement (FTA)(2007): beginning of negotiations between EU and India to increase their trade in both goods and services <br /><ul><li>Six negotiating rounds have been held(2009)
  23. 23. EU goods exports to India 2007: €26.2 billion
  24. 24. EU goods imports from India 2007: €29.4 billion</li></li></ul><li>Russia<br /><ul><li>Russia: 52.3% of its overall trade with EU
  25. 25. EU-Russia relations: ongoing WTO negotiations on a new agreement to replace the current Partnership and Co-operation Agreement(PCA)
  26. 26. PCA:
  27. 27. EU imports from Russia mostly not subject to any restrictions.
  28. 28. EU restrictions, in the steel sector, are addressed under a bilateral agreement (steel quotas )
  29. 29. Imports from Russia: energy and mineral fuels products, manufactured goods chemicals and raw materials.
  30. 30. Exports to Russia: all categories of machinery and transport equipment, manufactured goods, food and live animals.</li></li></ul><li>Bilateral Agreements<br />Economic<br />Blocs<br />
  31. 31. Mercosur<br /><ul><li>In 2008, the EU is Mercosur's first largest trading partner
  32. 32. 20.7% of total Mercosur trade
  33. 33. In 2009, Mercosur ranks 8th among EU trading partners
  34. 34. 2.7% of total EU trade.
  35. 35. EU market for agricultural exports (19.8% of total EU agricultural imports)
  36. 36. Mercosur market for industrial products:
  37. 37. machinery, transport equipment and chemicals.</li></li></ul><li>Andean <br />Countries<br /><ul><li>Second largest trading partner after the US.  </li></ul>EU imports primary products: agricultural products (47.5%); fuels and mining products (41.1%). <br />EU exports manufactured goods: (89.6%) notably machinery and transport equipment (47.4%) and chemical products (18.4%). <br /><ul><li>The EU grants the Andean countries preferential access to its market under the EU's General System of Preferences</li></li></ul><li>ASEM (Asia-Europe Meeting) <br />ASEM<br />(Asia-Europe Meeting) <br /><ul><li>Informal process of dialogue and co-operation established in 1996
  38. 38. non-binding dialogue forum based on equality and consensus
  39. 39. three pillars: addresses political, economic and cultural issues
  40. 40. Objective: make relationships between the two regions stronger </li></li></ul><li>ASEAN <br />Association of South <br />East Nations<br /><ul><li>In 2006, EU-ASEAN trade represented 5% of total world trade. </li></ul>average annual growth rate of 4% <br />exports to ASEAN: chemical products, machinery and transport equipment <br />imports from ASEAN: machinery and transport equipment, as well as chemicals, textiles and clothing. <br />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.<br />
  41. 41. Africa, <br />Caribbean, <br />Pacific<br />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. <br />CotonouAgreement <br /><ul><li>Reduction and eventual eradication of poverty
  42. 42. Contribute to sustainable development
  43. 43. Integrate the ACP countries into the world economy</li></li></ul><li>Central Asia<br /><ul><li> Geostrategic importance to the EU: A bridge to China as well as to Afghanistan and the Middle East
  44. 44. Source of significant energy imports for the EU
  45. 45. EU imports: crude oil, gas, metals and cotton fiber
  46. 46. EU exports: machinery and transport equipment.
  47. 47. All five Central Asian countries are beneficiaries of the EU's Generalized System of Preferences (GSP). </li></li></ul><li>Central <br />America <br /><ul><li>Trade remained largely stable at around 10% (last decade)
  48. 48. This region has actively sought to widen its export markets in Europe
  49. 49. Export to the EU: agricultural products (coffee, bananas and other fruits, together= 36% of exports to the EU in 2007)
  50. 50. Exports from the EU: machinery, chemicals, ships, boats, vehicles and fuels. </li></li></ul><li>Future<br /><ul><li>Major challenges to the future of Europe lie ahead
  51. 51. Institutional process of updating the rules governing the relations between the member countries
  52. 52. More members joining the Eurozone</li>

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