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GEE Assignment - Group 3
GEE Assignment - Group 3
GEE Assignment - Group 3
Introduction
The European Union is a unified trade and monetary body of 27 member countries. It eliminates
all border controls between members. That allows the free flow of goods and people, except for
random spot checks for crime and drugs. The EU transmits state-of-the-art technologies to its
members. The areas that benefit are environmental protection, research and development, and
energy.
Public contracts are open to bidders from any member country. Any product manufactured in
one country can be sold to any other member without tariffs or duties. Taxes are all standardized.
Practitioners of most services, such as law, medicine, tourism, banking, and insurance, can
operate in all member countries. As a result, the cost of airfares, the internet, and phone calls
have fallen dramatically
History
In the year of 1950, the concept of a European trade area was first established. The European
Coal and Steel Community had six founding members: Belgium, France, Germany, Italy,
Luxembourg, and the Netherlands. In 1957, the Treaty of Rome established a common market. It
eliminated customs duties in 1968. It put in place standard policies, particularly in trade and
agriculture.
Members of European union in the order of induction in eu
France
Germany
Italy
Luxembourg
Netherlands
01/01/1973 Denmark
Ireland
United Kingdom (left on 31 January 2020)
01/01/1981 Greece
01/01/1986 Portugal
Spain
01/01/1995 Austria
Finland
Sweden
01/05/2004 Cyprus
Czechia
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
01/01/2007 Bulgaria
Romania
01/07/2013 Croatia
One of the major advantage that EU countries enjoy because of EU is the Schengen Area is one
of the greatest achievements of the EU. It is an area without internal borders, an area within
which citizens, many non-EU nationals, business people and tourists can freely travel without
being subjected to border checks. Since 1985, it has gradually grown and today most of the EU
countries and a few associated non-EU countries are part of this Schengen area
Freedom of movement
No internal borders
Strengthening of the common judicial system
Police cooperation
Mercosur countries mostly export oils and petroleum to EU countries because brazil
Argentina,Paraguay and Uruguay because they are rich in minerals like petroleum
and oils which EU requires heavily as large companies in eu have higher
consumption of energy.
We are taking France as anchor and comparing its export to Germany which is another
EU country.
France export to Germany
From the above data we can see that France exports a huge amount of aeronautical products to
Germany which can be attributed to French companies like AIRBUS AND Avions Jean-Pierre
Marie.
France’s has had a foreign trade deficit since 2003 and the country’s share of the world export
market is continuing to drop.
The French aeronautical sector is an exception to this trend, the sector has prevented the balance
of trade deficit from plunging The aviation sector both civil and military and the space industry
have posted a foreign trade surplus in excess of €23 billion over the last few years, representing
the largest surpluses in the overall French balance of trade. France is the world’s second largest
exporter in the aeronautical field, with 22% of the worldwide market, after the United States (35
%). Germany is the third largest exporter with 14% of the worldwide market. France has seen its
market share increase by 8% in ten years, unlike the agri-food and automotive sectors.
France also imports a large amount of aeronautical parts from Germany because Germany also
has a presence of large amount of companies who are vested in making aeronautical products as
well as France imports motor parts from Germany who has major companies who are expert and
pioneers of automotive sector and manufacture products which are top notch in quality. Germany
also imports parts of tractors from india at a very cheap price which it exports to France and
derive profit from there.
EU trade agreements with the rest of the world
The European Union and Mercosur states - Argentina, Brazil Paraguay and Uruguay, reached on
June 28th a it is an ambitious, balanced and comprehensive trade agreement, this deal was being
negotiated for 20 years and they finally reached on an agreement.
The main reasons for this FTA are
MERCOSUR is a region of over 260 million consumers, The 5th largest economy outside the
EU with an annual GDP of $2.2 trillion. It can be a destination for EU goods worth €45 billion
(in 2018) and EU services worth €23 billion (2017). A market for 60,500 EU companies. It will
be a major destination for EU investments, with €381 billion in investment stocks
The benefits this deal will provide
Cutting tariffs
→ The agreement will eliminate high customs duties in key EU export sectors:
‣ Cars and parts
‣ Machinery
‣ Chemicals
‣ Pharmaceuticals
The two sides will work on simplifying their customs procedures and work together more closely
on regulations and standards, so that any differences that may exist do not stop EU companies
from exporting to Mercosur
Mercosur countries have thus far given limited access to services providers from other World
Trade Organization (WTO) countries but EU companies are already involved in providing
Mercosur with telecommunications, financial, business and transport services, among other
sectors. The agreement will address many significant barriers they face. It will also help other
companies seeking to provide services or set up a service or manufacturing business in a country
of Mercosur.
The EU-Mercosur trade agreement will allow EU firms to bid for public contracts on equal terms
with Mercosur companies. Till now this market was closed to EU companies.
The Comprehensive Economic And Trade Agreement (CETA) Implementation
CETA is a trade agreement between the EU and Canada. It cuts tariffs and makes it easier to
export goods and services, benefitting people and businesses in both the EU and Canada. CETA
entered into force provisionally on 21 September 2017, meaning most of the agreement now
applies. National parliaments in EU countries – and in some cases regional ones too – will then
need to approve CETA before it can take full effect
CETA provides various economic opportunities for Canadian and European businesses in the
following ways:
lowers prices and widens choice for Canadian and European consumers
The Economic Partnership Agreement (EPA) between the EU and Japan enters into force on 1
February 2019 this will help Businesses and consumers across Europe and in Japan to take
advantage of the largest open trade zone in the world. EU firms already export nearly €70bn in
goods and €28bn in services to Japan every year. In the past European firms faced trade barriers
when exporting to Japan, which makes it hard for them to compete and be competitive and
derive larger profits.
The deal between EU and JAPAN will help European companies to tap into Japan's large market.
It will help Europe in becoming a leader in setting global trade rules, and it would send a
powerful signal that cooperation, not protectionism, is the way to tackle global challenges.
The trade agreement with Japan removes tariffs and other trade barriers and creates a platform to
cooperate in order to prevent obstacles to trade helps us shape global trade rules
The deal will scrap duties on 97% and 99% of Japanese and European imports respectively.
Dairy products along with other food products are among the EU's biggest exports to Japan and
the progressive reduction of nearly €1bn ($1.1bn; £0.9bn) of tariffs - nearly 40% on beef, up to
30% on chocolate, 15% on wine and up to 40% on cheese - could boost exports and create jobs,
on the other side EU will reduce the 10% duties on car imports to zero by 2027. Japan's
government estimates it could increase GDP by 1%, however, the deal will also provide better
access to firms who are in services sector. It will allow them to bid for more public contracts.
European service exports to Japan are currently worth €28bn a year. The EU says firms selling
business, financial, telecoms, transport and distribution services stand to benefit most.
scrap Japanese duties on many cheeses such as Cheddar (which currently are at 29.8%)
as well as on wine exports (currently at 15% on average);
allow the EU to increase its beef exports to Japan substantially, while on pork there will
be duty-free trade in processed meat and almost duty-free trade for fresh meat;
the deal will ensure the protection in Japan of 200 high-quality European agricultural
products, so called Geographical Indications (GIs), and the protection of a selection of
Japanese GIs in the EU.
The agreement is also a major boost services markets, in particular financial services, e-
commerce, telecommunications and transport.
The deal will help both EU and JAPAN in a way that
Sanitary measures applied by the USA for imports of live bivalve molluscs.
It is applied in sector Agriculture and Fisheries. Negotiaton exercise between the US
(FDA) and the EU on each others food safety systems for the opening of trade of live
bivalve molluscs. For this exercise EU Member States and Federal States of the US are
involved. Both countries have different food safety approaches both EU and the USA are
going for same level of protection, and therefore should be regarded as equivalent, a
formal agreement on 'equivalence' is still pending. A constructive dialogue between the
EU and the USA is ongoing aiming at granting market access for the US Federal States
and EU Member States concerned.
It is a sps measure imposed by USA. US legislation requires formal import authorisation and pest
risk assessments for all food crops, including edible fruit and vegetables. For ornamental plants,
import may be allowed without pest risk assessment. However, so called NAPPRA products ('not
approved pending pest risk analysis') cannot be imported into USA before the phytosanitary
requirements are decided on by the USA plant health authorities and afterwards included in US
import legislation. The procedure may take several years. For some products the EU has been
confronted with procedures lasting more than 25 years before market access can be granted and
where there is no technical justification provided by the USA for not allowing access of the
products concerned to its market
CHINA
In 2015, following requests from Chinese companies who needed supplies from Europe,
China allowed imports of lumber up to 30 mm thickness. However, the furniture industry
needs lumber of 50 mm thickness. This ban by china is hurting its furniture industry who
aren’t able to import low cost ash wood products from EU.
Trade-restrictive food safety standards for soft cheeses
This barrier was imposed by China on EU on 13 Nov 2017. It is in the Sector of
Agriculture and Fisheries. According to Chinese Food Safety Standard GB 5420 for
cheese – except veined cheese – sets a limit value of ≤ 50 cfy/g for yeasts. This
parameter is too restrictive for certain soft cheeses (mostly for mozzarella and Taleggio)
because yeasts growth naturally in these cheeses. The EU microbial standards
(Regulation 2073/2005) do not consider this parameter because it poses no risk for
consumers’ health. This barrier impacts Germany and Netherlands as both export heavily
cheese to the the world 14% and 12% respectively.
INDIA
CHINA
This TBT is imposed by china on Germany. The state administrative organ in charge of
the import and export of endangered species shall perform the Convention on behalf of
the Chinese Government and shall produce, upon verification, a Certification on
Import/Export Permission for key wild fauna and flora as well as the products thereof
under state protection whose export has been approved by the administrative department
of endangered fauna and flora under the State Council as well as the endangered wild
fauna and flora as well as the products thereof whose import or export has been restricted
by the import/export convention yet approved by the administrative department of
endangered fauna and flora under the State Council. Article 6 It is prohibited to import or
export any endangered wild fauna and flora as well as the products thereof whose import
or export is prohibited by the Convention for any purpose of commercial trade. Where
any import or export is required for such special reasons as scientific research,
domestication and propagation, artificial cultivation and cultural exchange, it shall be
subject to the approval of the administrative department of endangered fauna and flora
under the State Council. Where any matter shall be subject to the approval of the State
Council according to the relevant provisions, it shall be reported to the State Council for
approval.
It is prohibited to export any wild fauna and flora or any product thereof whose name is
yet to be decided or which is newly found to be of important value or to export the
relevant wild fauna and flora whose export has been prohibited by the State Council or
the administrative department of endangered fauna and flora under the State Council.
The TBT code for this tariff is P33
USA
This TBT is imposed by USA on Germany, Italy, Netherlands and spain. It is imposed on
Asparagus in where If green is visible, PROHIBIT ENTRY. Its TBT code is B7. And it
was imposed on 2013-09-20.
This TBT is imposed by USA on France in where Only smooth-skinned lemon of
commerce are allowed otherwise all others variety are banned. It came into force on
2013-09-20.
TBT imposed by EU on different countries
This tbt is imposed by EU on China. It came into force on 01-01-2013. It is imposed Air
conditioners and comfort fans. Electric mains-operated air conditioners, with a rated
capacity of = 12 kW for cooling, or heating if the product has no cooling function. In here
Ecodesign requirements of Annex I to the Regulation sets out requirements on the
minimum energy efficiency, maximum sound power level and maximum power
consumption in standby and switched-off modes of the different categories of equipment
it leaves out air conditioners, except double duct and single duct air conditioners double
duct and single duct air conditioners comfort fans
References.
http://www.intracen.org/
http://www.intracen.org/
https://trains.unctad.org/
https://trains.unctad.org/
https://tradingeconomics.com/