Barriers of trade

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  • 27 member states: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
    EMU: Economic and Monetary Union-First Adopted on January 1, 1999. The euro is not the currency of all EU Member States. Many of the newest EU members plus Sweden have yet to meet the conditions for adopting the single currency. Once they do so, they will replace their national currency with the euro.
    15 states: Belgium, Germany, Ireland, Spain, France, Italy, Luxemburg, Netherlands, Austria, Portugal, Finland, Greece, Slovenia, Cyprus, and Malta
    16th: Slovakia
  • There is a problem: Even before the US economy started its downturn, American automobile manufacturers have been struggling to survive for years
    With the boom in oil prices and increased awareness of the environment and global warming, consumers all over the world have turned to more fuel-efficient, eco-friendly vehicles.
    Because of this new demand for a different type of vehicle, many car manufacturers all over the world have adapted to produce more smaller, fuel-efficient vehicles.
    However, US automakers have been slow to respond to the demand for these fuel-friendly vehicles, which has in part led to their downfall.
    Therefore, American consumers have taken to purchasing vehicles non-US automakers such as Toyota, Honda, and Nissan.
    This trend has resulted in a massive trade deficit in the category of automobiles
    In 2007 the United States imported 154.104 billion dollars of foreign automobiles, and exported only 56.596 billion dollars of US cars
    This resulted in a trade deficit of 97.508 billion dollars
    So far this year the US as imported 87.264 billion dollars of foreign automobiles and exported 35.811 billion dollars of US cars, resulting in a deficit of 51.454 as of July. (http://trade.gov/mas/manufacturing/OAAI/auto_stat_index.asp)
    In 1983, the US government issued a 25% tariff on trucks entering the United States from Japan.
    In 1984, the cap on Japanese automobiles being allowed to enter the United States was set at 1.68 million, and then raised to 2.3 million in 1983,
    This only applied to sales from Japan, not the Japanese cars manufactured in the US
    Since then, foreign tariffs have decreased and there has been a large number of Japanese automakers, including Toyota, Honda, and Mitsubishi, building factories and manufacturing in the United States
    This has proven well for them, allowing them to reach American consumers and their increasing demand for Japanese autos faster
  • A large barrier that still exists today among automobile manufactures is that of Safety Standards
    Living with extremely high gasoline prices for many years, citizens of the EU countries have adapted their lifestyles to compensate for the amount of money spent on gasoline
    European cars have consistently been smaller and more efficient than US gas-guzzlers, and with higher gasoline prices and the economic problem facing our nation, many Americans have demanded European-style efficiency and style
    This is not as easy as it seems however. Due to the United States strict safety and emissions standards, many gas-friendly vehicles popular in Europe are not available in the US.
    Safety regulations as simple as the color of turning signals and crash-dummy test positioning have hindered the importation of many vehicles
    This problem has consistently been evident, where Automakers, governments, and the insurance industry have each been vying for better and different safety standards, which has been hampering the goal of an internationally accepted standard.
    Out of 43 regulations in Europe and the US, only 11 are equivalent and 14 had major differences.
    For example, in the United states, protection for passengers NOT wearing seatbelts is a safety standard, while in Europe it is not
    Also, Side turn signals are required in the US but not in Europe.
  • This year marked the beginning of a new era for gas-efficient compacts in the United States. In 2006, DaimlerChrysler announced that Smart would be officially launched in the first quarter of 2008. (http://www.msnbc.msn.com/id/13593486/)
    Before then, Smart cars were only available as a “grey market” import. That is, legally imported, but without the agreement of the manufacturer
    However, the Smart car before had to be modified to comply to the strict safety regulations of the US
    To make the Smart car meet U.S. Crash standards, DaimlerChrysler had to lengthen the body, thus increasing the size of the car
    A Smart ForTwo coupe with and estimated 33mpg city and 41mpg highway goes for about $12,000
    With the introduction of Smart in the US, other American automakers have decided to enter this market with styles of their own
    Ford Motor Company, which has consistently been posting massive losses, has decided to introduce some of their European models into the sea of enormous American SUVs
    However, this is not as easy as simply shipping the cars across the Atlantic and emptying them onto the lots (http://www.msnbc.msn.com/id/25811141/),(http://www.msnbc.msn.com/id/26444467/)
    Because of American auto safety regulations, these Ford automobiles, such as the European version of the focus, are illegal to import into the United States
    With these problems, Ford hopes to introduce 3 smaller fuel-efficient models adapted to US standards, these include the Fiesta, European-style Taurus, and Transit Connect small van.
    Ford hopes to start manufacturing these and 3 more models in the US by 2010
    Stuck in a position with too many SUVs and other gas-guzzlers not being sold in the US and worldwide, American automakers have a difficult road ahead of them
  • With the quote, show that they are the 4th largest b/c of the great support to intra-trade within the ASEAN countries which makes them such a great manufacturing power, I WILL EXPLAIN TIFA AND THE 3 PROJECTS THE US AND ASEAN
    ARE WORKING ON. And that generally US/ASEAN trade is good
  • Barriers of trade

    1. 1. www.StudsPlanet.com International Trade Barriers
    2. 2. www.StudsPlanet.com -WHAT IS A TRADE BARRIER TYPES: -IMPORT DUTIES -IMPORT QUOTAS -IMPORT LICENSES -TARIFFS -EXPORT LICENSES -SUBSIDIES -NON-TARIFF BARRIERS TO TRADE -VOLUNTARY EXPORT RESTRAINTS -ECONOMIC EFFECT OF TRADE BARRIERS -COMMON ARGUMENTS -JOBS ARE DESTROYED BY TRADE -WORKER WAGES ARE HURT BY TRADE. -NATIONAL SECURITY IS THREATENED BY TRADE. -SPECIAL INDUSTRIES WITH UNIQUE AND SUBSTANTIAL ECONOMIC POTENTIAL WILL NOT MATURE WITHOUT PROTECTION FROM TRADE. -UNFAIR COMPETITION UNDERMINES THE BENEFITS OF TRADE. -THREE MAJOR INTERNATIONAL TRADE AGREEMENTS EU, NAFTA, ASEAN HTTP://WWW.YOUTUBE.COM/WATCH?V=YVT36Q1XLNK INTERNATIONAL TRADE BARRIERS
    3. 3. • What is NAFTA? • Began on January 1, 1994 • Between Canada the United States and Mexico • NAFTA pros and cons www.StudsPlanet.com
    4. 4. • What is ASEAN? • Established on August 8th , 1967 • 10 member countries -Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippians, Singapore, Thailand, and Vietnam www.StudsPlanet.com
    5. 5. • What is the EU? • 27 member states • The Economic and Monetary Union (EMU): 15 member states, soon to be 16 on January 1, 2009 with the addition of Slovakia -10th Year of the Euro www.StudsPlanet.com
    6. 6. • German purity law • In effect since 1516 • Can only be called “beer” if ingredients are only water, barley, and hops • Repealed in 1987, replaced with • Protectionism against Belgium and Britain www.StudsPlanet.com
    7. 7. • Controversial monetary aid program • Structural adjustment program • Removal of all internal subsidies • Jamaican milk subsidies www.StudsPlanet.com
    8. 8. • Common Agricultural Policy (CAP) • Guaranteed minimum prices • Import tariffs and quotas on products outside EU • Conflict between US and EU • Subsidies resulting from political/economic reasons rather than real demand from producers www.StudsPlanet.com
    9. 9. • Increasing demand for fuel-efficient, eco-friendly vehicles • US automobile trade deficit for 2007 $97.51 billion • Japanese automakers manufacturing in US factories • Honda, Toyota, and Mitsubishi all have US factories www.StudsPlanet.com
    10. 10. • European-style autos becoming popular • Popular European vehicles not legal in US • Differences in US and European safety regulations inhibiting trade www.StudsPlanet.com
    11. 11. • Smart • Introduced January 2008 by DaimlerChrysler • Slightly longer than European vehicle • 33mpg city, 41mpg highway • Ford • Fiesta • Taurus • Transit Connect www.StudsPlanet.com
    12. 12. www.StudsPlanet.com
    13. 13. "The TIFA will be a platform to intensify our  trade and investment relations with the ASEAN  region, which collectively constitutes our fourth  largest trading partner and represents one of the  most rapidly growing and dynamic economies in  the world." - Areas of mutual concern culminate in 3 Projects: - ASEAN Single Window - Plant health - Standardization www.StudsPlanet.com
    14. 14. -Effects are more pronounced in developing economies. -Data is limited, but scope of products is broad and expanding. Industry Sectors Subject to Infringement: -Apparel - Electrical Components -Audio-visual - Personal accessories - Automotive - Pharmaceuticals - Consumer Electronics www.StudsPlanet.com
    15. 15. • http://www.cottingham.com.tw/c/en/news/latest-news/188.html • http://www.assatashakur.org/forum/conscious-edutainment-videos-movies-tv/30335-life-debt-how-imf-world-ban • “Trade Conflict and the US-European Union Economic Relationship”, CRS Report for Congress, Raymond j. Ahearn • http://www.msnbc.msn.com/id/26444467/ • http://www.msnbc.msn.com/id/25811141/ • http://www.msnbc.msn.com/id/13593486/ • http://trade.gov/mas/manufacturing/OAAI/auto_stat_index.asp • http://www.bls.gov/news.release/ximpim.htmhttp://library.thinkquest.org/06aug/00036/intltrade_barriers .html • http://www.itintl.com/ • http://www.infoplease.com/cig/economics/barriers-international-trade.html • http://en.wikipedia.org/wiki/Main_Page • http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp • http://www.aseansec.org/ • http://europa.eu/index_en.htm • http://news.thomasnet.com/IMT/archives/2004/01/the_pros_and_co_1.html • http://www.youtube.com/watch?v=YVt36Q1xLNk www.StudsPlanet.com

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