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1. Forms of economic integration and
cooperation
Prof. Dr. Andreas Kellerhals, LL.M.

2. Goals
> Know other concepts of european integration.
> Know the concept of Multi-Speed Europe.
214. April 2017

3. Program
314. April 2017
> Other options for economic integration
1. EFTA/EEA
2. Bilateral agreements
3. Free-trade agreements
4. Association agreements
5. Partnership agreements
> Multi-Speed Europe
1. What does that mean?
2. Examples

4. Other options for economic integration
1. EFTA / EEA
> The EFTA was founded in 1960 with the goal of establishing a free trade area,
without political means.
> Founded as an alternative trade bloc to the EEC (which subsequently
became the EU).
> Members were: Austria, Denmark, Portugal, Sweden, the United Kingdom,
Iceland, Liechtenstein, Norway and Switzerland.
> Only Iceland, Liechtenstein, Norway and Switzerland remain as members
nowadays. The other states joined the EU.
> Iceland, Liechtenstein and Norway are also members of the EEA, which
enables free movement of persons, capital, goods and services with EU states.
> EFTA is no a customs union. However, member states follow a coordinated
foreign trade policy.
414. April 2017

5. Other options for economic integration
2. Bilateral Agreements
> As Switzerland is not a member of the EEA, it chose to regulate its relationship
with the EU on a bilateral basis.
> Network of more than 100 agreements covering the most important areas of
free movement of persons, goods, services and capital.
> In some areas, these agreements go further than the EEA:
> Research cooperation
> Access to public procurement markets
> Fight against fraud
> On the basis of bilateral agreement and memoranda of understanding,
Switzerland can participate in different organizations and agencies, such as
Eurojust, Europol and others.
5April 14, 2017

6. Other options for economic integration
3. Free-trade Agreements (Art. 207 TFEU)
6April 14, 2017
EU member states, FTA in force or provisionally applied, FTA signed but not
applied, agreement initialed but not signed, agreement being negotiated.
EU has a comprhensive network of FTAs:

7. Other options for economic integration
3. Free-trade Agreements (Art. 207 TFEU)
> The most prominent agreements are the Comprehensive Economic and Trade
Agreement with Canada CETA (signed, not yet applied) and the Transatlantic
Trade and Investment Partnership TTIP with the USA (being negotiated).
> Bot agreements cover much more topics than free trade, such as:
> investment regulation;
> social, sanitary and environmental standards;
> Standards for the financial industry
> access to public procurement markets
> general industry standards
> Both agreements are being heavily critisized by the public society in the EU
and the USA.
714. April 2017

8. Other options for economic integration
4. Association Agreements (Art. 207 TFEU)
> The EU has concluded Association Agreement with Turkey, Ukraine, Moldova
and Georgia.
> A tool of the EU’s neighborhood policy.
> The following can be regulated in an Association Agreement
> Foreign Direct investment
> Trade in services
> including social sector, education and health services
> trade with cultural / audiovisual goods
> Regulation of intellectual property
814. April 2017

9. Other options for economic integration
5. Economic partnership agreements
> Preferential trade agreements of the EU with developing countries
> Currently EU has established such agreements with African countries and
countries in the Caribbean.
> All goods can be covered by such agreements, except arms.
> Special safeguards in order to minimize impact on economies of Least
developed countries (LDC).
> Open to all developing countries.
914. April 2017

10. Multi-Speed Europe
What does it mean?
> Idea that different states of the EU should integrate at different levels and pace
depending on the political situation of the countries.
> Also called «variable geometry Europe or Core Europe, depending on the
perspective.
> Multi-Speed Europe has always been a reality, with only a subset of EU
countries being members of the eurozone and of the Schengen area.
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11. Multi-Speed Europe
Examples
1114. April 2017

12. Thank you!
Prof. Dr. Andreas Kellerhals, LL.M.