Part 4: EU and disintegration Flashcards
What is the Single Market?
What are the four freedoms?
It is a common market of four freedoms: people goods, services and capital
What does SM in goods mean?
Tariffs, quotas etc are removed (traditional barriers to trade), And especially important is that technical barriens to trade are removed.
-» harmonizing regulation
What does SM in capital mean?
less regulations regarding movement of capital, this makes it easier to have FDI flows
What does SM in people mean?
EU citizens are free to travel, work and live in any EU country (withput applying for visa etc)
this can benefit freedom to travel.
Can benefit both short-term movements (ex exchange, Öresund) and also long term migration
What is the diffrence between the SM- people and the Schengen agreement?
Within the Schengen area, the freedom of SM is enhanced by being able to travel across border without a passport (without being checkes).
These are not the same thing
Schengen: more short term
SM: long term migraton
What does the SM in services mean?
This one is more vague than other freedoms
Overall harmonization of regulations.
Still alot that can be done to further integrate freedom of services
How does the 4 freedoms connect to the 4 modes of supply:
4 modes of supply:
- Cross border trade (ex online learing at forgeign un)
- Consumption abroad
3: Commercial presence (FDI)
4: Presence of natural persons ex guest proffesor comes to your country to teach.
Modes 2 and 4 are about people crossing border
Mode 3 is about FDI
-> Movement of capital and people ables movement in services.
What does the EU Customs Union serve for a purpose?
The EU (not individual countries) that decides trade policy with third nations. It includes, services, FDI and intellectual property rights
What are some main points in the EUs Customs union and their trade agreements with the rest of the worlds?
- It is very comples, and the EU has alot of agreement with a lot of diffrent countries.
- For countries who are WTO members but don’t have a PTA with EU face MFN tariff
- Many EU trade agreements don’t follow WTO rules
What kind of trade situation does the UK have with the EU after Brexit (and efter transition)
How could this be viewed in a Large coutnry PTA analysis?
How can this be applied in BE-COMP diagram.
It is a very basic free trade agreement -> tariff free goods trade, but not much else in other areas
We can view the effects of going from being Partner (in the EU) and the effects of leaving the EU (and then facing MFN tariff)
= the UK will be worse off
BE-COMP diagram: The UKs brexit BE-curve will steeper than the free trade BE-curve
-> higher prices, less firms surviving, smaller marker
What are the implications of leaving the CU? (Brexit)
- Raise tariffs
- Customs border checks (trade facilitation costs)
- Frictional costs (redistribution, EU firms now avoid UK suppliers)
- Rules of origin apply
- EU can target UK with Antidumping and CVDs
- Lose all trade agreement that the EU have with RoW, costs to negotiate new ones
- implications for FDI, ex financial services.
What are the implications of leaving the single market (Brexit)?
Goods trade: No regulatory harmonization, more costs at borders to see that EU regualtions are met
Services: Since GATS is not as developed, the UK has very little Multilateral integration to lean on. The FTA between UK and EU barely mentions services
People: example with lorry drivers, lack of workers
