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European Integration > European Integration Unit 1 > Flashcards

European Integration Unit 1 Flashcards

1
Q

Country

A

Same as a state, synonym.

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2
Q

State

A

The one which act as a part in relations in the international arena. Has a permanent population, government, sovereignity (controls the population), political independence, has borders etc.

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3
Q

What is UK?

A

It is a state with many regions that also are nations: England, Scotland, Wales and North Ireland.

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4
Q

Difference between US and UK:

A

The big difference is that the whole US is a state but also a nation - they all feel very american and are very national. But in the UK the scottish people feel scottish but still wants to be a part of UK (unlike catalans who want their own state).
So UK is a multinational state.

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5
Q

Nation & national identity:

A

Shared norms and values, culture, history, religion and language etc. It is almost all about feelings. Not connected to legality. It is subjective.

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6
Q

Nation-state:

A

A sovereign state inhabited by a homogeneous group of people who share a feeling of common nationality. So you are state with one nation - ex Sweden I would say, we are a state but also very swedish since we have not been to war for a long time and do not have strong different beliefs that are separating the people.

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7
Q

Region/municipality:

A

Parts of the state that have some level of administration and political power - decentralization. In UK, all the nations are actually regions. And all “states” in US are in fact regions too.

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8
Q

International organization:

A

Organizations dealing with issues that each state alone can’t solve - ex environmental problems. Things that goes beyond each country.
Ex IMF, WB, EU, WHO, WTO, NATO etc. Here, EU is a very special case since it has such a big power on the international arena - 28 states have gathered and have political elections, decisions, currency etc.
Is EU mowing towards becoming a state itself?

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9
Q

Is it always one nation within a state?

A

No, as I have explained these two concepts don’t go hand in hand. EIther you can have many nations within a country or maybe just one. Or maybe you can have many states within a nation like …?

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10
Q

Why is the number of states within the international arena around 190-200 right now?

A

Today’s borders are artificial and determined by the history. in earlier ages countries wanted to expand to receive more power, resources, population, taxes and last but not least a bigger trade area with no trade barriers within.

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11
Q

3 critera for being a state:

A
  1. Must be recognized by others, otherwise you can’t interact.
  2. Able to have relations with other states.
  3. Need to have sovereignity.
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12
Q

Example of market barriers:

A
  • Language
  • Government regulation
  • Tariffs & taxes
  • Finances
  • Transport
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13
Q

Why trade with China, a lot of barriers, right?

A

Yes, a lot of barriers has to be climbed over, but if you can come to an agreement (FTA ex) you have access to the biggest market in the world.

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14
Q

Treaty:

A

A written agreement between states and/or international organizations. Ex FTAs are treaties concerning the trade, but treaties are written in all type of societal sectors.

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15
Q

Is treaties enough for creating a sophisticated trade environment?

A

No, the institutional framework is at least as important. Must make it easy to create agreements over and over again, standards. Also the legal framework must contionuosly work for eliminating barriers.

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16
Q

FTA

A

Free Trade Agreements: an agreement between states in order to create a free trade area. The states are signing a contract that determines the conditions, ex how high tariffs etc there will be (but goal is eliminating them).

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17
Q

Custom union

A

A trade bloc where all internal states have a free trade area (this is like taking the next step further) and having the same tariffs and conditions to third countries outside the custom union. EU is a custom union where states outside must negotiate with EU as a united part, cannot sign FTAs with only Sweden for example. =Common external policy.
Purpose: increase economic efficiency.

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18
Q

Single/common market

A

EU as one territory with no internal borders or other regulatory obstacles to the free movement (4 freedoms). Stimulates competition and trade, improves efficiency.
So, here we take the free trade area even further by also eliminating non-tariff barriers, ex regulations, cultural barriers etc.

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19
Q

Economic union

A

A type of trade bloc where agreements of coordination of economic policies: monetary policy, common currency, fiscal policy, other economic/structural policies like labor market and welfare state policies.

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20
Q

EU

A

The most sophisticated supranationalisation cooperation in the world with 28 countries (maybe soon 27?). It has political elections, court of justice, a common currency (19), single market, custom union etc.

21
Q

WTO framework

A

World Trade Organization:
WTO provides framework for negotiating trade agreements. Global rules of trade. Intention to liberalize the trade over the world.

22
Q

EFTA

A

The European Free Trade Association. Is an intergovernmental (mellanstatlig) org. promoting free trade and economic integration for its member states (Norway, Iceland, Lichtenstein and Switzerland) within Europe and global.
The member states can sign own FTA contracts with other states outside EU.

23
Q

EEA

A

The European Economic Area: Objective to extend the internal market of EU to the three participating EFTA states (Switzerland is not in) with common rules and equal conditions of competition, equal rights and obligations.

24
Q

Globalist

A

A globalist is thinking that the world should be more integrated with a better global constitution.

25
Q

Opposite to globalist

A

A nationalist. This explains why Trump says that the world does not belong to globalists… He is a truly nationalist thinking that the nation must stay alive.

26
Q

Must you be either globalist or nationalist?

A

No, ex catalan nationalist want their nation to be recognized as a state with their own decision making. However, they do want to be a part of EU - which is a globalist way of thinking –> they are both nationalist and globalists. The global framework are making it easier for movements between states and nations, flexibility, not saying that they should not exist.

27
Q

Pros and cons of free movement of people:

A

+ Possibility to move - the borders are in fact just artificial and you don’t choose where you were born.
+ Smooth out the population - reduce overpopulated places
- Migration problems
- Welfare system at risk - people move to the good places

28
Q

Pros and cons of free movement of G&S:

company perspective

A
  • If no barriers at all the market would be the whole world –> crazy competition for the companies, only could if you are a competitive one.
    + reaching out to a broader scope
29
Q

What can complicate the competition in the world market?

A

Different monetary systems. With a FEX you can devalue your currency just to perform good in the international market (stimulating exports).

30
Q

What does Article 50.2 in the treaty of EU say?

A

It says that a state can leave EU but a region cannot leave a country. So this makes it legal for GB to withdraw from the EU.

31
Q

Types of barriers to trade (2)

A
  • Tariff barriers - ex tariffs and quotas

* Non-tariff barriers - ex regulatory, cultural and currency barriers.

32
Q

Why do we even have trade between countries?

A

Because countries have advantages in producing different things and also have abundance of different resources. So countries therefore specializes on different type of productions and then import/export the things that they are not suitable to produce themselves.

33
Q

Complications with custom unions due to different tariffs

A

Inequality if there are big dissimilarities between country A & B (which are in the custom union) or if they have different tariffs. Having a free trade area between diff financially developed countries will lead to a situation where country C (the third party) want to export to country A with low tariffs with the ultimate goal of selling in B where revenue is higher.

34
Q

Hardest part of going from a FTA to a single market:

A

That all non-tariff barriers must be eliminated through a long and demanding process which must be driven by supranational institutions and the legal framework requires a common court like the court of justice.

35
Q

Multilateral agreements

A

NAFTA is an example of a multilateral agreement since three countries are involved - Mexico, Canada and U.S. Free trade within this region, removed trade-barriers between them.

36
Q

Difference between EU and NAFTA

A

EU has taken oen step further and also eliminated the non-trade barriers like all regulations. The product standards are the same etc. So it requires a lot more than a free trade area does.

37
Q

What is the implications of being a part of EU?

A

That you lose political power and can not make decision that are best for your country. Leaving EU is about taking back control. After Brexit, UK can sign their own FTA’s with China etc.

38
Q

Why should you not leave EU?

A

Because this huge organization will probably have better negotiation power than a single country alone. What makes UK think that they can reach better agreements by themselves?
They need to make new agreements with each and every country which will take time and cost a lot. Every company will still need to produce goods that EU accept - two product lines instead.
Building upp all the barriers that was taken down.

39
Q

Why is EU working this well?

A

Because the 28 member states are very homogenous and at the end we all want the same - peace, efficiency, free movements etc. If you were a minority maybe you would gain by leaving, but if not - you should stay.

40
Q

What type of contracts are Norway signing with EU?

A

Since Norway are a part of EEA they sign EFTA’s with EU.

41
Q

Norway-ex Japan?

A

FTA’s! Since Norway is not a part of the custom union they can sign their own trade contracts with states outside of EU, but not within EU. Ex Norway-Spain would not be a legal contract.

42
Q

Why would Norway want to stay out of EU, already halfway in…? (2)

A
  1. They are a part of the single market but not custom union, so they have the power to sign FTA’s.
  2. They are also standing outside all the non-trade related policies and therefore keep the control of a lot of laws.
43
Q

Switzerland’s situation:

A

They are part of the single market (4 freedoms) but not a apart of EEA and are therefore not signing EFTA’s. Instead they sign FTA’s with EU which takes a lot more time and effort - EU not happy about it…

44
Q

Options for UK after brexit:

A

Lot of options like WTO that EU have with China, FTA like with Japan, like Switzerland (FTA but single market) or EEA like Norway.

45
Q

If hard brexit?

A

If no deal will be reached, UK will withdraw EU in a hard way - from being a part of the most integrated systems in the world to the least one with no integration at all…

46
Q

The 4 theoretical categories of economic integration:

A

Free trade area –> custom union –> single market –> economic union. These are the four stages from least integrated to most integrated. But not all economic integration relationship fits in here because relationships are more complex and depends on the trust and interests between the involved states. Ex EU-Canada FTA (aka CETA).

47
Q

Is a brexit enough for ‘brexiters’?

A

No, most of them are not fine by just leaving EU. As we have seen there are a lot of possible outcomes. Most of them want to ensure:

  • Control of borders (no free movement of people)
  • Control of regulations (no legislations from Brussels)
  • Control of the trade policy (no custom union)
  • Control of courts (no European Court of Justice rulings)

–> They want a hard brexit.

48
Q

How will UK be treated during the transition period?

When is this period?

A

As if it was still a member state.

  • EU law continues to apply but with the exception of participation in the EU institutions and governance.
  • Still part of custom union and single market.
  • UK still bounded to the agreements where EU has exclusive competence.

The transition period 30 mars 2019 - 31 december 2020 will give time for he society to adapt the new relationship.

49
Q

Withdrawal Agreement

A

The document ensuring that the brexit will happen in an orderly manner and a framework for the future relationship with EU.

  • Protecting citizens.
  • Respecting the financial obligations with EU
  • Ensure the goal of peace

European Integration (3 decks)

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