Governance of Trade and Regional Integration CTD Flashcards
What was the early EU?
- Founded 1957
- Schengen border controls - FTA set up 1985
- 26 members (22 EU and 4 non EU)
- UK and Ireland opted out
When was the single European market founded and when was the single currency established?
- 1992,
- 1991 Maastricht treaty established single currency and European Monetary Union (eurozone) which took effect in 1999
- 19 members adopted euro
What is the European Central Bank?
Responsible for setting fiscal and monetary policy.
Still variations in taxation regimes of member countries - fiscal policies not 100% harmonised
What does the single currency represent?
Effort to liberalise a range of sectors i.e financial services market, comparison of prices much easier for consumers, companies under greater pressure to make themselves more competitive, deeper liquidity at European level
When did the EU significantly enlarge?
- 6 countries in 1992
- UK in 1973
- Eastern European countries joined in 2000s
How has the political structure of the EU changed?
- Lisbon treaty in 2009 strengthened the role of the European Parliament
- EU court of justice is the ultimate arbitrator for EU countries
- EU agencies such as medicines and environment agencies maintain EU as a legal order
What is NAFTA (1992/1994)?
FTA between Canada, Mexico and the US, not as integrated as the EU
Successor to Canada-US FTA (1980s)
First trade agreement between developed and developing countries
How is NAFTA beneficial for Mexico?
- Lower inflation
- Lower debt
- Inward investment from the US, Canada and other markets
- Job creation
- Decrease illegal labour migration to the US
- Secure access to the US and Canadian markets
How is NAFTA beneficial for Canada and the US?
- Enhance trade relationship
- Continue a shift in Latin America towards free markets
- Access to Mexican raw materials (oil) and low labour cost
- Enhanced competitiveness
- Lower prices for consumers
- Access to large markets for US and Canadian exporters
- Job creation
How is NAFTA bad for Mexico?
- Loss of sovereignty
- Competition from US and Canadian firms leading to firm closes and economic restructuring
- Mexican emigration towards the north negatively impacting local communities
- Pollution increase
How is NAFTA bad for the US?
- Job loss
- Wage levels decline
What are the outcomes of NAFTA?
- Increased trade and integration
- Increased productivity
- Loss of jobs in the US
- Increased economic and political stability in Mexico
- Increased interdependence
How have renegotiations changed NAFTA?
- New United States-Mexico-Canada Agreement (USMCA) signed 1 Oct 2018
- USMCA local content restrictions on automobile production increased to 75%
- Reduction of trade barriers in Canadian dairy sector
- US have better access to Canadian and Mexican financial markets
What is ASEAN?
Association of Southeast Asian Nations (1967) initially as a group of 4 and increased to 10
Aims to promote peace, stability and economic growth, limited success in promoting economic activity
ASEAN FTA (AFTA) initiated in 1992
Which countries are involved in ASEAN?
1) Indonesia
2) Brunei
3) Thailand
4) Malaysia
5) Cambodia
6) Laos
7) Vietnam
8) Singapore
9) Philippines
10) Myanmar (Burma)
