Host: Good day, everyone! Welcome to the most awaited segment of all times!

We are going to talk

about international trade laws, agreements, and its policies. But before that, I would like to introduce
you our guests for today! Ladies and gentlemen, presenting, Ms. ______, Ms. ______, Ms. ______, and
Ms. ______. A big round of applause, everyone!

Host: These gorgeous ladies in front of us are here to help us understand what is beneath trade laws.
First, I would like to ask Ms. ______. Would it be alright if you will be the first to answer this question?

G1: Yes, it’s alright!

Host: Let’s proceed then. Can you tell us something about international trade?

G1: Well, international trade is the sale and purchase of goods and services by companies in different
countries.

Host: If that’s the case, do you mean that international trade can be done easily?

G1: That’s an interesting question! We have this something called International Trade Laws. And these
are the rules and customs that governs trading between countries. And no, it cannot be done easily for
it goes through a process.

Host: For now, let us ask Ms. ______. Ms. ______ have said earlier the trading between countries. Am I
right?

G2: Yes. What about it?

Host: Can you identify those countries who are included in trade unions and the rules that they are
complying with?

G2: There are lots of countries who are included in the trade unions but the countries that has the
highest trade union density rate are Iceland, Cuba, Denmark, Sweden, Finland, Norway, Vietnam,
Belgium, Kazakhstan, and China. All these countries have their own trading agreements, and I would like
to ask for help of the other guests here to explain these countries trading agreements. Would you mind
helping me, girls?

Host: Oh! Our guest number 2 is calling for a friend’s help.

G1, G3 and G4: We don’t mind at all.

G2: Thank you so much. So now, I’ll start with the trading agreements with Iceland. Iceland has a
bilateral agreement with the European Union dating back to 1972 with reduced or zero tariffs on
Icelandic seafood exported to the European Union. In 2018, an agreement came into force between
Iceland and the European Union concerning reduced or eliminated tariffs, and increased tariff quotas on
unprocessed agricultural products. As part of this agreement, Iceland dropped tariffs of more than 340
categories of unprocessed agricultural products, and reduced tariffs of more than 20 categories. U.S.
agricultural products exported to Iceland face tariffs of up to 30 percent higher than products from the
European Union.

Next is Cuba. Did you know that the Government of the Republic of Cuba signed the Trade and
Economic Cooperation Agreement (TECA) with the Caribbean Community (CARICOM). The Agreement
was inspired by the need to promote an expanded economic space for regional trade and investment, as
well as to foster economic integration.

Next is Denmark. Denmark’s international trade policy is conducted in close co-operation with the other
European Union Member States. It aims at promoting free trade on a global basis and securing market
openings with key trade partners. The Danish economy can be characterized as a small open economy
highly dependent on the ability to freely exchange goods, commodities, and services with other nations.
Denmark fundamentally believes the global economy including the developing countries stands to
benefit from an increase in international trade.

Host: Wow! That was informative. What about the other countries?

G3: Let me tell you about the trade agreements of Sweden, Finland, Norway, and Vietnam.

Sweden is a member of the European Union and does not conclude any free trade agreements on its
own. However, Sweden takes an active part in the preparations and in the work during the ongoing
negotiations lead by the European Union.

Next is Finland which has been a member of the World Trade Organization (WTO) since its foundation in
1995. The WTO creates binding agreements that set a regulatory basis for international trade. Finland’s
membership in the WTO enables them to make use of the multilateral trade system. Finland is a
member of the Preferential Trade Agreements (PTAS) and Regional Trade Agreements (RTAS).
Additionally, Finland is a member of the Agreement on Government Procurement (GPA) and the
Informational Technology Agreement (ITA).

Next is Norway. Norway voted against joining the European Union (EU) in a 1994 referendum. Except
for the agricultural and fisheries sectors, however, Norway enjoys free trade with the European Union
under the framework of the European Economic Area (EEA). This agreement aims to apply the four
freedoms of the European Union’s internal market (goods, persons, services, and capital) to Norway. As
a result, Norway normally adopts and implements most European Union directives. Norway is not a
member of the European Union’s Economic and Monetary Union and does not have a fixed exchange
rate.

On the other hand, Vietnam is a member of the Association of South East Asian Nations (ASEAN) and
subsequently, a member of ASEAN Free Trade Area (AFTA). As part of AFTA, ASEAN members (including
Brunei, Philippines, Indonesia, Laos, Myanmar, Malaysia, Singapore, Thailand, and Cambodia) are
committed to making this region a competitive trading area. Together with the ASEAN countries,
Vietnam has also signed trade pacts with PRC, the Republic of Korea, Australia and New Zealand, India,
Chile, and Japan. It signed a bilateral trade agreement with Korea in 2015, as well as a trade agreement
with the Russian-led Customs Union block. In 2019, Vietnam signed a free trade agreement with the
European Union. This agreement came into effect in August 2020. Vietnam is currently negotiating a
free trade agreement with the European Free Trade Association countries (Norway, Iceland,
Liechtenstein, and Switzerland).

Host: We’re done with the 7 countries. And now, we have 3 countries left.

G1: The last 3 countries are Belgium, Kazakhstan, and China. First is Belgium. It has been a World Trade
Organization member since January 1, 1995 and a member of the General Agreement on Tariffs and
Trade 1994 since January 1, 1948. In addition, Belgium is a founding member state of the European
Union, which is a WTO member. Belgium is also a party to numerous bilateral trade agreements
concluded by the European Union and its member states with third countries, such as the
Comprehensive and Economic Trade Agreement (CETA) between the European Union and its member
states and Canada. As of October 2019, 13 European Union member states (not including Belgium) had
notified the European Council of completion of national ratification procedures for CETA. As a European
Union member state, Belgium also gave a mandate to the European Commission to negotiate free trade
agreements (FTAs) on its behalf.

Next is Kazakhstan. Kazakhstan became a World Trade Organization member on November 30, 2015. In
addition, Kazakhstan officially entered a Customs Union with Russia and Belarus on July 1, 2010,
eventually becoming a founding member of the Eurasian Economic Union (EAEU), which was created on
May 29, 2014, between Kazakhstan, Belarus, and Russia. Since that time, EAEU regulations have heavily
influenced Kazakhstan’s trade policy. For example, while Kazakhstan asserts that EAEU agreements
comply with WTO standards, since joining the Customs Union Kazakhstan has doubled its average
import tariff and introduced annual tariff-rate quotas (TRQs) on poultry and beef.

And lastly is China. China has bilateral investment agreements with over 100 countries and economies,
including Austria, the Belgium-Luxembourg Economic Union, Canada, France, Germany, Italy, Japan,
South Korea, Spain, Thailand, and the United Kingdom. China’s bilateral investment agreements cover
expropriation, arbitration, most-favored-nation treatment, and repatriation of investment proceeds.
They are generally regarded as weaker than the investment treaties the United States seeks to
negotiate.

China maintains 17 Free Trade Agreements (FTAs) with its trade and investment partners and is
negotiating or implementing an additional eight FTAs. China’s FTA partners are ASEAN, Singapore,
Pakistan, New Zealand, Chile, Peru, Costa Rica, Iceland, Switzerland, Maldives, Mauritius, Georgia,
Korea, Australia, Cambodia, Hong Kong, and Macao. In addition, in November 2020, China and 14 other
countries signed the Regional Comprehensive Economic Partnership. China announced the ratification of
the agreement in early 2021.

Host: Wow! Information overload! Moving on, I have another question here. What are the benefits or
advantages of those trading agreements to each of the countries? Anyone of you can answer.

G1: Trade agreements are treaties between two or more countries designed to reduce or eliminate
certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between
participating countries. Moreover, trade agreements regulate the tariffs, taxes, and duties that countries
impose on their imports and exports. Specifically, trade agreements increase economic growth, it
creates a more dynamic business climate, it contributes to a lower government spending, and it enables
global companies to foster industry expertise.

Host: With all these advantages, do you think trade agreement still have its disadvantages?

G2: Of course, disadvantages are always present. Trade agreements only confer advantages when they
are negotiated with countries which are significant trading partners. Trade agreements increases the
complexity of the international trading system and can raise transaction costs for business. For example,
complicated rules of origin are required to prevent third country product entering via the other party.
With different rules negotiated under different agreements, enforcement of these rules and compliance
with them by business can be a complicated task. Moreover, trade agreements increase job outsourcing,
and are prone to theft of intellectual property.

Host: Finally! All questions are answered by our dear guests. Thank you for watching. We hope you
gained new knowledge about international trade.