Do EU trade policies help or hurt developing countries - Essay Example

Comments (1) Cite this document
Summary
The EU has evolved from an economic union to now a large single market. Its organization covers wide policy areas such as those on economic and political development and the environment. EU has been part of many trade arrangements or Preferential Trade Areas (PTAs) across the world. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Do EU trade policies help or hurt developing countries
Read TextPreview

Extract of sample "Do EU trade policies help or hurt developing countries"

Download file to see previous pages By 2002, EC was already in more than 50 out of about 172 such arrangements around the globe thus maintain economic and trade relations with a myriad of economies in the developed, developing and even less developed economies. The EU has been keen as a positive force to generate economic prosperity for its member states.
To the developing economies, EC has maintained preferential trade arrangements under the Generalized System of Preferences (GSP) while to most less developed countries, trade arrangements have largely been guided by the Cotonou Agreement, which succeeded the Lome’ Convention (Bhagwati, Greenaway, & Panagariya, 1998, p.1128-1148). EU’s trade arrangement within the Euro zone encompasses a common currency, common external tariff, common agricultural and competition policies as well as common rules on freedom of goods and services, capital and people. EU has entered into other trade agreements with countries and regions in other continents of the world.

Among these is the European Economic Area (EEA) that extends the EU market to three countries, which are members of the EFTA . Another arrangement is the Customs Unions with countries such as Malta, Cyprus and Turkey. EU has also got several Free Trade Area (FTA) arrangements with a number of countries and regions around the world, but these are at different implementation levels. These include countries such as Tunisia, Egypt, Israel, and Morocco under the Euro-Mediterranean Association, while Denmark, Switzerland, Iceland, Mexico and Chile are under the FTA arrangement among others. There is also the Mediterranean partnership where EU relates with several associates in the southern and Eastern Mediterranean. This particular trade arrangement aims to achieve FTA in line with provisions of the WTO through entering into various bilateral agreements starting with a series of association agreements. It also aimed at the expansion of the EU financial assistance to USD 4.7 billion over a period of 5 years from 1995 within EU-Mediterranean partnership. The ACP (Africa, Caribbean and Pacific) preference is another set of trade arrangements by the EU where it provides one way trade preferences for more than seventy countries in Africa, Caribbean and Pacific. These preferences are, however, not available to all developed countries in these regions and do not also apply to only least developed economies, for example. Thus, contravene the provision of the WTO regarding discriminatory practices, equity and fairness (Devisscher, 2011, p. 60). As per the United Nations rankings, 39 of the ACP economies are under the least developed category. Finally, GSP preferences by EU to a number of least developed countries exist as stipulated under the GSP provisions of the WTO. The EU’s GSP arrangement contains the ‘Everything but Arms’ (EBA) initiative for the least developed economies as well as general arrangements that are available to all developing countries and apply to non-sensitive products that come duty free. There are also the special arrangements under the Environmental and Social clauses, which apply to sensitive products only. Special incentives under the environmental clause apply to developing countr ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Do EU trade policies help or hurt developing countries Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1398893-do-eu-trade-policies-help-or-hurt-developing
(Do EU Trade Policies Help or Hurt Developing Countries Essay)
https://studentshare.org/macro-microeconomics/1398893-do-eu-trade-policies-help-or-hurt-developing.
“Do EU Trade Policies Help or Hurt Developing Countries Essay”, n.d. https://studentshare.org/macro-microeconomics/1398893-do-eu-trade-policies-help-or-hurt-developing.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ka
katherinereilly added comment 1 year ago
Student rated this paper as
I never thought 4000 words essay could be written in such a free manner. I loved the style of this essay. Will definitely use it for my own work!

CHECK THESE SAMPLES OF Do EU trade policies help or hurt developing countries

Trade preferences for developing countries

...-designed. Business policy works as a solution in the EU’s bonds with the other nations and the EU is among the significant actors in global business, that accounts for as big as a fifth of entire world trade volume. The EU battles to take into account growing nations much more fully into the system world trade for sharing every possible advantage.35 Trade is an important factor for development. Trade with the developing countries ensures the increment in their earnings from export and the promotion of industrialization. Trade also...
27 Pages(6750 words)Essay

TRADE LIBERALIZATION IN DEVELOPING COUNTRIES

...to the dynamics of the economic spectrum. How do the political systems, however profoundly diverse, affect the thrust of the North Africa Region for development? Were the conflicting social structures of North Africa contributed to the realization or hinder development in the region? Are these social structures prohibit or allow trade liberalization? In addition, this paper will also examine delivery of basic social services to the people of North Africa countries in relation to trade liberalization. Is the moral obligation of the governments to provide the people basic social services like education and health affected by the North...
26 Pages(6500 words)Essay

Do EU Trade Policies Help or Hurt Developing Countries

...) “The utilisation rate of preferences in the EU,” Paper presented at the 7th Global Economic Analysis Conference, Washington D.C. Candau, F. and Jean, S. (2006) “What are EU Trade Preferences Worth for Sub-Saharan Africa and Other Developing Countries?,” prepared for the International Symposium on “Preference Erosion: Impacts and Policy Responses.” Geneva, June 13-14, 2005, processed. Cipollina, M. & Salvatici, L. (2008) “EU and developing countries: what is the impact of agricultural preferences?” Paper presented at the 10th European Trade Study Group Conference,...
16 Pages(4000 words)Essay

Developing Countries

...on the cultural aspects of the country. If a developing country is able to come out from the constraints of cultural or ethnic traits, it can develop properly which is understood from the examples of Pakistan and India. Pakistan is under the control of religious fundamentalists whereas India is capable of maintaining a healthy secular democracy. The strength of democracy and lack of influence of religion on politics helped India to concentrate more on productive sectors whereas Pakistan struggling to do so because of the constraints from religion. In short, the administrations in developing countries...
5 Pages(1250 words)Research Paper

Do Sweatshops Help or Hurt the Economy

...?Do Sweatshops Help or Hurt the Economy? The debate about sweat shops is still in progress. A sweatshop is a negative term for a working environment;a work place where working conditions are unacceptable or dangerous for any human by any standards (Sweatshop). But are they good or bad for the Economy? It depends on their use. Looking at a poor third world country makes it quite clear that they are in dire need of assistance in terms economic assistance (Kristoff). And what better way to elevate financials by employing them. Sweatshops help their country’s economy. The problem is in the perception of multinational corporates (Kristoff). When companies outsource only to maximize profits, brings in the problem. There are very loose... ...
2 Pages(500 words)Research Paper

Fair Trade and developing countries

...mentioned that the producers in the developing countries do not profit a lot from trade because they have to split profits and royalties with the governments. At times, they even have to pay those who are in charge of granting licenses thereby going through a number of red tapes within a the bureaucratic structure (Jaffee 2008). Fair trade is defined as that organized social movement which is regarded as a market-based approach aim towards helping producers from developing countries in ensuring the development of better trading conditions and also to ensure...
8 Pages(2000 words)Research Paper

Free Trade For Developing Countries

..., 2002). Perhaps, the most significant line of argument against free trade in developing countries pertains to the notion of infant industries. Developing countries are often characterized according to their ‘stage’ of development. It is argued that those countries that are in their early stages of development contain what are known as infant industries and that these industries may periodically require help from the government in the form of subsidies or tax rebates etc (Baumol & Blinder, 2010). It is believed that infant industries in certain sectors of the economy ought to be protected...
8 Pages(2000 words)Essay

Free Trade and Developing Countries

... of developing countries with rich mineral deposits including Sierra Leone, Democratic Republic of Congo, Angola and Sudan among other nations in African continent. Some of the major environmental impacts of overexploitation of natural resources have become apparent in developing countries. These effects include wide spread desertification, drought, soil erosion and pollution of the environment. These effects do not only decelerate economic development but also contribute to widespread poverty levels in developing countries in spite of the availability of natural resources. Free trade encourages the inflow of goods from other developed economies into the developing countries. However, the industrial development of these two types... to free...
8 Pages(2000 words)Essay

Developing Countries

...". (Abdur R. Chowdhury) also gives his finding on the problems of debts in developing nations, and why these debts always on the increase. He said; "the factors behind the increase in the external debt burden in the developing countries are varied and interrelated. However, a number of studies in the literature have summarized these factors to include, but not limited to, (1) exogenous factors, such as adverse terms of trade shocks; (2) the absence of sustained adjustment policies, particularly when facing exogenous shocks, which gave rise to sizeable financing needs and failed to strengthen the capacity to service debt; this includes inadequate...
9 Pages(2250 words)Essay

Fair trade for the developing countries

... s Micro Economics 3 May 2009 The developed countries have seen unprecedented growth over the past few years butthe opportunities for developing countries have been limited. Considering the same, the introduction of fair trade has been a welcome change for the developing countries. Fair trade provides a very good opportunity for the developing countries to progress and there are several developing countries that are making the most of this opportunity. This paper will throw light upon fair trade and how effective it is for the developing countries. Introduction Fair trade is a practice which is predominant in developing countries; developing countries make the most of fair trade. It is very fair to say that Fair trade is more... of a...
6 Pages(1500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Do EU trade policies help or hurt developing countries for FREE!

Contact Us