CM 4 Flashcards

1
Q

what is the European union

A

an embryonic political union since 2009

advanced budgetary union project

monetary union of 20 countries - euro

above all, the single market : primary objective of founding treaties

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2
Q

European Union identity card

A

27 European states

4.2 M km²

447 million inhabitants

governed by The Treaty of the European Union (Dec. 2009)

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3
Q

main institutions of EU

A

European Parliament
European Council
Council of Ministers
European Commission
Court of Justice

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4
Q

EU today

A

6% of world’s population

generates 18.6% of global GDP (2nd largest)

generates 16% of global GDP at power purchase agreements

1nd of 15 main protagonists in merchandise trade

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5
Q

the United States of Europe

A

Renaissance : 1st pro-European ideas appear

1756 : Rousseau proposes an association of states

1795 : Kant advocates a federation of free states

1876 : Victor Hugo appealed to the construction of a pan-European state

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6
Q

20th C. march towards Europe

A

after WW1 : Treaty of Versailles imposes humiliating regulation on Germany and pushes the project away

1929 : Briand at League of Nations favours a federal European bond

after WW2 : emergence of Europe

1946 : Churchill “stand up Europe”

1947 : Orwell favours socialist united states of Europe

1949 : 10 states sign statutes at Council of Europe (47 members today)

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7
Q

common commercial policy (PCC)

A

manifestation of desire for European economic cooperation

creation of first & main common policy

1951, Rome : European Coal & Steel Community treaty signed by 6 countries

1957 : these countries sign 2 treaties creating European Economic Community & European Atomic Energy Community

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8
Q

PCC : first common policy

A

‘common market’ project of acceptance of abolition of obstacles to trade between members

direct result of Treaty of Rome

liberalisation of goods the first step to future ‘common market’

Commission can take initiatives to negotiate & sign trade agreements

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9
Q

article XXIV - customs unions (UD)

A

GATT tolerance to customs unions (UD)

facilitates trade & bans obstacles to trade

prohibits over protective blocs

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10
Q

principles of PCC : internal level

A

negotiating mandates adopted by majority with unanimity in 3 areas

  1. trade in services, commercial aspects of intellectual property & FDI
  2. trade in cultural & audiovisual services, when agreements risk undermining ‘cultural exception’
  3. trade in social services, education & health if agreements risks undermine competence of members
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11
Q

principles of PCC : external level

A

problem of consistency between European rules & WTO principles

‘community preference’ considered it in contradiction to WTO doctrine

ECJ ruled it a political, not legal principle

preferential trade regimes granted by EU to developing countries denounced by 3rd countries.

support for export of agri prodcuts considered obstacle to world treade by some WTO members

62% of internal trade is EU trade

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12
Q

the Commission

A

technical body

foundation of PCC

propose positions to be adopted

leads discussions with partners

made of of Commissioners

Trade Commissioner : voice of EU within WTO

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13
Q

the Council of Ministers

A

political body

what supplies the Commission with projects & proposals

meets once a month

rare for states to challenge them

approves or disapproves agreements

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14
Q

the Trade Policy Committee

A

advisory

created with the Lisbon Treaty in 2009

originates from ‘133 Committee’ of Treaty of Amsterdam (1997)

special committee designated by the Council to assist the Commission

an essential cog in relations between Commission & Council

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15
Q

elimination of non-tariff barriers to trade

A

removal of quantitative restrictions on trade

initially, combated by GATT doctrine as infringement of trade freedom

European states use health & safety arguments to protect themselves

ECJ reduced these restrictions

harmonisation of competition rules still thwarted

comes up against national imperatives

lots of public public aid requires prior European authorisations

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16
Q

Common Customs Tariff (TEC)

A

EU constitutes a Customs Union with Article XXIC.8 of GATT

Treaty of Rome allowed 12-15 year customs disarmament transition period

harmonisation of TEC implies participation is trade negotiations as single group

within WTO, the Commission negotiates on behalf of members

TEC adopted in 1968 as a simple average of current rates

since ‘68 : takes into account third party price negotiations

replaces community competence with that of member state in tariff negotiations with 3rd countries

17
Q

anti-dumping & anti-subsidy measures

A

regulation of 1988

complaints can come from professional branch or member state

Commission decides whether to open a case

anti-dumping applies to parts imported to ‘screwdriver’ factories

safeguard measures applied in event common economic hardship

self-restraint agreements with 3rd parties to protect sensitive sectors

18
Q

difficulties in international context

A

trade liberalisation has increased constraints on European economy

TEC below economic efficiency threshold - too weak to influence import prices in EU

African-Caribbean-Pacific agreements attacked by 3rd parties who want exceptions to WTO regime dismantled

19
Q

The euro

A

strong euro reinforce credibility & influence of Europe, but penalises EU27 Extra trade

restrictive monetary policy of European Central Bank (BCE) is detrimental to individual growth/competitiveness

20 countries in euro zone

some chose not to participate (Denmark/Sweden)

some do not meet economic criteria to join

newest member is Croatia

20
Q

diversity of ideological & political horizons & their effects on CCP

A

arrival of new members weighs on harmonisation of trade policies

inequalities between countries due to rapid/chaotic enlargement

liberal Germany, Holland, Denmark attached to openness

protective countries in southern Europe

France, Ireland, & Belgium
defend common agricultural policy

UK hostile to integration & alignment with US positions

Central & Eastern Europe campaign to maintain financial solidarity of Western Europe & protection of their interests in negotiations for successful transition (latecomers)

21
Q

trade policy condemned to conservatism

A

cannot afford asset of secrecy of international competition : must resolve internal conflicts

PCC must compromise : proposals scrutinised by states stunts innovation

PCC waits to know partner’s position in order to adjust & avoid internal tensions over third party conflicts