By 2002, EC was already in more than 50 out of about 172 such arrangements around the globe thus maintain economic and trade relations with a myriad of economies in the developed, developing and even less developed economies. The EU has been keen as a positive force to generate economic prosperity for its member states.
To the developing economies, EC has maintained preferential trade arrangements under the Generalized System of Preferences (GSP) while to most less developed countries, trade arrangements have largely been guided by the Cotonou Agreement, which succeeded the Lome’ Convention (Bhagwati, Greenaway, & Panagariya, 1998, p.1128-1148). EU’s trade arrangement within the Euro zone encompasses a common currency, common external tariff, common agricultural and competition policies as well as common rules on freedom of goods and services, capital and people. EU has entered into other trade agreements with countries and regions in other continents of the world.
Among these is the European Economic Area (EEA) that extends the EU market to three countries, which are members of the EFTA . Another arrangement is the Customs Unions with countries such as Malta, Cyprus and Turkey. EU has also got several Free Trade Area (FTA) arrangements with a number of countries and regions around the world, but these are at different implementation levels. These include countries such as Tunisia, Egypt, Israel, and Morocco under the Euro-Mediterranean Association, while Denmark, Switzerland, Iceland, Mexico and Chile are under the FTA arrangement among others. ...Show more