Trade policy Flashcards
What is Strategic trade?
Using specific tactics, like subsidies or tariffs, to give a competitive edge to certain industries. In other words when the government intervenes. fx. sas
What is meant by Securitization?
- More trade - is better
What is meant by Deglobalization?
- Less trade - is better because to protect the environment and for equality.
- Instead countries prioritize local or regional economic relationships instead of global trade.
What is the Free Trade Paradigm?
Minimal government interference in international trade. It promotes the reduction of barriers such as tariffs and quotas.
What is Reshoring?
The process of returning the production and manufacturing of goods back to the company’s original country
What is meant by Most favored nation principle?
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
What is Trade policy?
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.
What is Labour Market Policies?
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.
What could be a tariff?
Taxes which are imposed on imports
What could be a non-tariff barrier to trade?
Quotas, Subsidies, Anti-dumping, Licensing.
This could be:
- Technical standards,
- Government procurement, —Health and safety standards,
- environmental and labour standards,
- restrictions.
What is meant by Dumping
When products are sold under the cost price in different countries
What are some arguments “for” free trade?
- 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
What are some arguments “against” free trade?
- 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
When was the General Agreement on Tariffs and
Trade (GATT) and what was it later called and what year?
Created in 1948 and later called WTO in 1994.
What was the “GATT”
Was an international agreement that aimed to reduce barriers to international trade - later called WTO
What is Organisation for Economic Co-operation and Development (OECD) and what is its goal?
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
What are some trade agreements the EU have done with other countries?
- 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
Trade Policy has exclusive QMV in which institution?
Council of Ministers
What does Autonomy mean?
having the freedom and independence to make your own decisions and choices.
What needs for a trade agreement to be approved?
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..
How is a Trade agreement reached?
- Commission ask the Council for approval
- 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 - Commission published the agreement and presents for Parliament and Council
- Wait for approval by the two, if accepted EU can conclude the agreement.
What was the main goal of the EU to create an external trade policy?
To rebuild former European colonies south and west of the EU to keep good relations and aid economic development
What happened at The Lomé Convention Agreement?
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
What are Protectionist?
Oppsite of free trade, and argues domestic trade Is better.
What is Multilateralism?
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.
What is Bilateralism?
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.
