The EU has evolved from an economic union to now a large single market. Its organization covers wide policy areas such as those on economic and political development and the environment. EU has been part of many trade arrangements or Preferential Trade Areas (PTAs) across the world. …
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. There is also the Mediterranean partnership where EU relates with several associates in the southern and Eastern Mediterranean. This particular trade arrangement aims to achieve FTA in line with provisions of the WTO through entering into various bilateral agreements starting with a series of association agreements. It also aimed at the expansion of the EU financial assistance to USD 4.7 billion over a period of 5 years from 1995 within EU-Mediterranean partnership. The ACP (Africa, Caribbean and Pacific) preference is another set of trade arrangements by the EU where it provides one way trade preferences for more than seventy countries in Africa, Caribbean and Pacific. These preferences are, however, not available to all developed countries in these regions and do not also apply to only least developed economies, for example. Thus, contravene the provision of the WTO regarding discriminatory practices, equity and fairness (Devisscher, 2011, p. 60). As per the United Nations rankings, 39 of the ACP economies are under the least developed category. Finally, GSP preferences by EU to a number of least developed countries exist as stipulated under the GSP provisions of the WTO. The EU’s GSP arrangement contains the ‘Everything but Arms’ (EBA) initiative for the least developed economies as well as general arrangements that are available to all developing countries and apply to non-sensitive products that come duty free. There are also the special arrangements under the Environmental and Social clauses, which apply to sensitive products only. Special incentives under the environmental clause apply to developing countr ...
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ade preferential schemes imposed by the EU for many years in a variety of circumstances. For instance, in the year 2003, it was argued by the researchers Brenton and Manchin2 that EU preferential treatments for developing nations in the field of trade by EU have not succeeded in providing better entrance to the market of EU due to extremely stringent rules of source.
These issues were discussed in consideration to the specific aspects of liberalization and development such as removing tariff and nontariff trade, agriculture, manufacturing, and services. While this paper examines in bold strokes the liberalization thrust in North African countries, it also took time to highlight some pressing issues such as free trades effect on the capacity of North African countries for economic growth and providing its citizen higher level of social services such as Health, Education among others.
The magnitude and number of these settlements are growing drastically (Nilsson & Matsson 2009). The failure of another Doha Round ministerial convention in Geneva in 2008 will reinforce the movement toward preferential agreements (McQueen 2007). Furthermore, the international financial and economic instability has additionally lessened the eagerness of legislators to advocate trade liberalisation.
In fact, it was likewise argued that globalization and the liberalization of trade has been likewise creating not only opportunities but other consequences as well in the less developed countries. Apparently, because of the popularity of trade, much has to be done with the developing countries (Ferrer 2008).
A more interesting aspect of these debates, however, is the arguments that concern ‘developing’ countries in particular (as opposed to their developed counterparts). The paper explains both sides of the argument, with the balance tilting in favor of free trade as has been witnessed by economists over the years.
However, since the inception of free trade, the world has experienced widespread increase in economic inequality. Poverty, especially in some developing countries is increasing at an alarming rate, while developed countries are experiencing improved living standards and economic development.
Chinese companies are mining and processing raw materials at the expense of Europe. The stability of world economy is going to play an important role in the Sino-EU economic relations. Pressure from EU and United States should cause the Chinese government to act upon fiscal and structural international policies responsibly.
According to the report industrialised nations like America or the majority of the nations comprising the EU have gotten used to a certain level of quality production which developing nations may not be able to create in certain specialised products. The populace has a higher standard of living than those in the developing nations.
lso in easing the transformation of a largely rural society to an economy of manufacturing and services, limiting the human and economic cost of transition. However, the CAP has subsequently been the victim of its own success. The CAP arrangements resulted in large surpluses and