2.3 Trading relationships Flashcards
Who are the worlds main trading entities
NAFTA
EU
APEC
Why is the US so far behind in trade
They are a protectionist economy
What are 2 new trade unions being formed by the US
TPP (trans pacific partnership)
TTIP (trans Atlantic trade and investment partnership)
What does the TPP partnership involve
12 countries in NA, SA and Sasia agreeing on trade and environmental standards
What does the TTIPP partnership involve
The EU and USA aiming to reduce trade barriers of big business
Why do people (NGO’s) opposite TTIPP
Giving more power to TNC’s (they could sue the EU government)
Threatens workers unions
Threatens public services (NHS)
Shared legislation (fracking environmental concerns)
Give an example of a country which has had rapid growth in trade
China
Give some trading context about china
1964 was one of the poorest members of Group 77
1999 member of G20
What is the G20 group
international forum for government/banks of 20 major economies.
What is the Group 77 and their aims
group of 77 developing nations with aims of
1. representing worlds poorest economies
2. increasing influence in world affairs
Why has china had phenomenal growth and where are they investing
Manufacturing
They invest lots of money into Africa
Why don’t people invest in Africa
Wars
Lack of development
What have China done in Africa
Extracted resources
Developed infrastructure
Produced food
Developed tourism
Grown trade and investment
Give an example of a region which has had rapid growth in trade
Latin America
What are the 2 distinct trading blocs of latin America
Pacific allience
Mercosur
What is Mercosur
Formed in 1991 allowing free labour movement between the 5 countries.
“the common market of the south”
NA and EU as main targets
What is the pacific alliance
Formed In 2011 featuring 4 countries.
NA and Asia as main targets
Why is the pacific alliance better than Mercosur and what will happen to them soon
More open to agreements with other nations
They are merging to form a Latin American Union
How can developing countries strengthen their trading relationships
Being given SDT’s (Special differential treatment)
When was SDT created
Made in 1910 following the decolonisation of ACA countries as protectionist policies were excluding them
What are the aims of SDT
Speed up development
Help engage in world trade
Tackle structural difficulties
What are the laws of SDT
- Privileged market access
- Flexibility with WTO rules
- The right to restrict imports
- The right to subsidise exports
Give an example of an SDT agreement
The EU’s 2001 “everything but arms agreement” accepted all LDC products
What are the advantages of SDT
Lift population out of poverty
Promote development in all s,e,e,p factors
What are the disadvantages of SDT
Not all poor countries are WTO members and therefore don’t qualify and instead make their own better agreements
Most countries aren’t aware of all the perks available to them
Cheaper imports flood foreign markets
