Trade policy

Question 1

What is Strategic trade?

Answer 1

Using specific tactics, like subsidies or tariffs, to give a competitive edge to certain industries. In other words when the government intervenes. fx. sas

Question 2

What is meant by Securitization?

Answer 2

• More trade - is better

Question 3

What is meant by Deglobalization?

Answer 3

• Less trade - is better because to protect the environment and for equality.
• Instead countries prioritize local or regional economic relationships instead of global trade.

Question 4

What is the Free Trade Paradigm?

Answer 4

Minimal government interference in international trade. It promotes the reduction of barriers such as tariffs and quotas.

Question 5

What is Reshoring?

Answer 5

The process of returning the production and manufacturing of goods back to the company’s original country

Question 6

What is meant by Most favored nation principle?

Answer 6

Treating all trading partners equally. If the EU grants a particular advantage or lowers tariffs for one nation, it must do the same for all other members

Question 7

What is Trade policy?

Answer 7

Involves rules and agreements that dictate how the member countries engage in international trade. It includes decisions on tariffs, quotas, and trade relationships with other nations.

Question 8

What is Labour Market Policies?

Answer 8

Involve rules about jobs, wages, and working conditions. The EU aims to harmonize some of these policies to create fairness and consistency for workers across member countries.

Question 9

What could be a tariff?

Answer 9

Taxes which are imposed on imports

Question 10

What could be a non-tariff barrier to trade?

Answer 10

Quotas, Subsidies, Anti-dumping, Licensing.
This could be:
- Technical standards,
- Government procurement, —Health and safety standards,
- environmental and labour standards,
- restrictions.

Question 11

What is meant by Dumping

Answer 11

When products are sold under the cost price in different countries

Question 12

What are some arguments “for” free trade?

Answer 12

• removal of trade
  barriers will maximize trade between nations - and thereby wealth creation
• increases incomes, as resources are reallocated from low to high productivity
  uses relative to trade partners e.g. from labour to capital intensive activities
• Efficiency gains due to cost-cutting and improved productivity
• Overall will benefit the consumer, as a result in price cuts

Question 13

What are some arguments “against” free trade?

Answer 13

• Does not allow for limits on
  economic growth resulting from finite resources and environmental strains
• Tradecauses ‘externalities’, due to energy intensive production and transportation
• environmental costs are not accounted for
• Loss of economic independence by nations
• Lack of diversification in production

Question 14

When was the General Agreement on Tariffs and
Trade (GATT) and what was it later called and what year?

Answer 14

Created in 1948 and later called WTO in 1994.

Question 15

What was the “GATT”

Answer 15

Was an international agreement that aimed to reduce barriers to international trade - later called WTO

Question 16

What is Organisation for Economic Co-operation and Development (OECD) and what is its goal?

Answer 16

Was formed in 1961 with the goal to promote economic growth and employment in member countries, and education is a significant policy area in this effort

Question 17

What are some trade agreements the EU have done with other countries?

Answer 17

• Korea 2011
• Peru 2013
• Canada 2016
• UK 2021
• India 2020
• Japan 2018
• USA (on hold) 2017
• Mercosur (Brazil, Paraguay, Argentina, Urugay) 2019
• China (on-going) 2011

Question 18

Trade Policy has exclusive QMV in which institution?

Answer 18

Council of Ministers

Question 19

What does Autonomy mean?

Answer 19

having the freedom and independence to make your own decisions and choices.

Question 20

What needs for a trade agreement to be approved?

Answer 20

QMV in the Council + a vote in the EP
But also:
The Commission needs a mandate from the Council, representing national governments, who must obtain sufficient domestic support..

Question 21

How is a Trade agreement reached?

Answer 21

1. Commission ask the Council for approval
2. Commission starts to negotiate, and while doing so:
   - Commission fully informs the Parliament
   - works with Trade Policy committee
   - published; Reports of negotions, Background papers ,EU posetions papers
3. Commission published the agreement and presents for Parliament and Council
4. Wait for approval by the two, if accepted EU can conclude the agreement.

Question 22

What was the main goal of the EU to create an external trade policy?

Answer 22

To rebuild former European colonies south and west of the EU to keep good relations and aid economic development

Question 23

What happened at The Lomé Convention Agreement?

Answer 23

European Common Market enlarged overseas countries and that were old EU-member territories. This ensured that goods could be admitted duty-free in unlimited quantities

Question 24

What are Protectionist?

Answer 24

Oppsite of free trade, and argues domestic trade Is better.

Question 25

What is Multilateralism?

Answer 25

Definition: Many countries work together to negotiate and set common trade rules.
Example in the EU: EU trade policies involving multiple member countries and agreements with organizations like the Mercosur.

Question 26

What is Bilateralism?

Answer 26

Definition: Two countries negotiate trade agreements directly between themselves.
Example in the EU: Trade deals between the EU and a specific non-EU country, involving only those two parties.