© 2005 west legal studies in business/thomson learning 1 european union and other regional trade...
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© 2005 West Legal Studies in Business/Thomson Learning1
European Union and other Regional Trade Areas
European Union and other Regional Trade Areas
Chapter 14
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The Philosophy of Economic Integration
The Philosophy of Economic Integration
• Political union Economic union
• Economic union Political union
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ModelsModels
• Federal
• Free trade area
• Customs Union
• Common Market
• Conflict with GATT?
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European UnionEuropean Union
• Treaty of Rome (1957) creates European Community
• Single European Act (1987) set 1992 deadline of achieving single market
• Maastricht Treaty (1993) created European Union and set path for monetary union
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European UnionEuropean Union
• Treaty of Amsterdam: 1999 (incorporated the principle of freedom of movement from the Schengen Agreement)
• Treaty of Nice: 2000, voting rights for new members; 10 members to join May 2004, (Poland, Lithuania, Estonia, Latvia, Hungary, Czech republic, Slovenia, Slovakia, Malta and Cyprus). Population of 440 million eclipsing NAFTA
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European UnionEuropean Union
• Constitution for Europe? What are the issues? What is its status?
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Monetary Union CriteriaMonetary Union Criteria
• Budget deficit no greater than 3% of GDP
• Public debt no greater than 60% GDP
• Price stability (inflation controlled)
• Long term interest rates within 2% of the best 3 countries
• Exchange rate stability
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TimetableTimetable
• January 1, 1999- Euro single currency is born
• 1999-2002 National currencies continue to exist and work in parallel
• 2002- switched to single currency
• Not all countries have joined? Why?
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EU MembersEU Members
• Belgium, Germany, France, Luxembourg, Netherlands, Italy
• (1973) Denmark, Ireland, United Kingdom
• (1981) Greece
• (1986) Portugal, Spain
• (1995) Austria, Finland
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EU OrganizationEU Organization
• Council
• Commission
• Parliament
• Court of Justice
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Law-Making Within the EULaw-Making Within the EU
• Regulations vs. directives
• Role of Council, Commission and Parliament
• Court of Justice review
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Privacy in the EU: A Different Approach from the U.S.
Privacy in the EU: A Different Approach from the U.S.
• What is the philosophical difference?
• How is it reflected in the law?
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Common Agricultural Policy (CAP)Common Agricultural Policy (CAP)
• What is it?• What conflicts have occurred?• How are the goals described now?
“transparency, quality and safety and a farm sector in tune with the environment and animal welfare.. A sustainable farm and food sector for the future”
• How does the expansion of the EU affect this?
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National Farmer’s Union (France)National Farmer’s Union (France)
• The Commission adopted emergency measures to protect against BSE ( Bovine spongiform encephalopathy) or mad cow disease. The UK was temporarily prohibited from exporting beef to the Continent.
• The Court found that since there was a procedure in place to protect the public upon the resumption of exports, France
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National Farmer’s Union (France)National Farmer’s Union (France)
• Could not invoke Article 30 to block imports.
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Business Implications of the EUBusiness Implications of the EU
• What are the ramification for business of the expansion of the EU?
• What impact does the trade friction between the U.S. and the EU have on business ventures?
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Cotonou AgreementCotonou Agreement
• 2000
• EU, African, Caribbean and Pacific countries
• EU had GSP program since 1971 and in effect until 2007
• 2007 new “partnerships” will begin
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Other Economically Integrated Trade Areas
Other Economically Integrated Trade Areas
• Mercosur: Argentina, Brazil, Paraguay, Uruguay
• Andean Common Market: Bolivia, Venezuela, Colombia, Ecuador, Peru
• ASEAN: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Myanmar, Laos, Cambodia, Vietnam
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• African trade areas( AEC, COMESA, SADC)
• Caricom
• Arab League
• Gulf Cooperation Council
• NAFTA
• FTA ( Free Trade in the Americas)
Trade AreasTrade Areas
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Trade AreasTrade Areas
• APEC
• Others?
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How are these groups different from the EU and the US?
• Scope of agreement
• Court
• Currency
• Army
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Free Trade and Protectionism Debate
Free Trade and Protectionism Debate
• Winners and losers?
• Compatibility with GATT and WTO?
• Role of trade areas
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Current IssuesCurrent Issues
• EU: adherence to the criteria for monetary union, price of unification, expansion, “wider and deeper,” CAP, labor, two tiered Europe?, subsidiarity (let the decision be made at the lowest level possible- a hedge against over-reaching by the EU), foreign policy
• expansion of NAFTA- connection to US politics and national elections?