EU's Influence On Trade - Essay Example

HOW DOES JOINING THE EUROPEAN UNION AFFECTS A COUNTRY’S RIGHT TO TRADE Introduction Countries that join the European Union expect to benefit from a number of policies, wider markets and other opportunities. With membership totaling up to 27 countries there are apparent benefits to be in the union. These include increased trading among member states, less bureaucracy and red tape. The tariff barriers among member countries have also been lifted thus allowing for more free flow of goods and services (Uk Department of business Innovation and Skills). There is little if any restriction at the borders among member states. Further the infrastructure, production and manufacturing industries in some of the member countries have been able to improve tremendously. Citizens of these countries are allowed to move freely hence able to provide there services in any of the member states without much restrictions. However, there are a number of legislations which impede trading between European Union members and non member states (Federation of American Scientists). There are requirements provided by EU which affects rights to trade for member states. For instance democracy should be upheld, stable institutions, respect for human rights and rule of law. The country must be able to cope with market forces and competition existing within the union. The union members are also to observe environmental issues before trading. Furthermore as a contribution to a sustainable environment, EU members have to observe certain guidelines before trading with other non member countries. If these countries do not meet the requirements then there will be no trading between the countries. In support of reduction in greenhouse gas emission EU ensures special tariff rates for countries that have ratified global environmental agreements (Europa). In addition there are a number of criteria which have to be observed by EU countries before issuing trading licenses to non member countries. These criteria to a greater extend impede trading. They include abiding by international commitments such as sanctions, respect for human rights and national security of nations etc. European Union External Relation There have been efforts by the European Union to ensure that third countries develop democratic parliamentary institutions. Respect for fundamental rights and democratic principles are laid down as “essential element to all the agreements reached upon by the respective governments (European Commission). As much as these principles are essential in addressing pertinent issues in the society it hinders trade between nations. Member states from EU may shun from trading with certain third countries due to violations of human rights. However, this will not stop other countries from exploiting the situation. For instance China has been known trade with countries such as Zimbabwe. This government of this African country has been perceived to oppressive to the people. Though this may alienate EU member countries from trading, other non member countries will not fail take advantage. Again, by joining the EU countries have no autonomy to negotiate on their own terms regarding business. There are codes of conduct and criteria to be followed before carryout international trade (Topidi Kyriaki). It is easier for member countries to trade together but difficulties crop up once non member countries are interested in trade. One of the impediments is higher tariffs that may discourage trade. There are also other requirements such as having ratified and implemented a number of international agreements. Since there are many countries willing to trade but may not have ratified these treaties, trade is hindered. There is also the tendency by member countries to show solidarity in issues that may seem controversial. This means even when a country does not agree with the rest it must still have to back up the opinion of other union members. For instance when Turkey applied to be a member of the Union there was much objection from a number of countries. Most of these countries thought that Turkey being a predominantly Muslim country will not cooperate well the rest of the countries. Again, Turkey was seen as an Asian country and may not fit with the tradition and practices of European countries. There were also fears from Germany that Turkey being with a dense population will dominate the Union. In this way it will be able to influence the decisions made by the Union. This is an interesting idea as it points out to the way decision making is made in the Union (European Commission). The most dominant country tends to be having much influence compared to the other countries that lack influence. Furthermore countries such as Turkey have a number of domestic issues that may hinder trade within the Union. Some of the allies for instance are known to violate human rights. This means that in order for Turkey to benefit from the Union then most of the legislation have to be revised. There are also fears that countries such as Turkey may trade with other countries posing a threat to global security. It is inevitable that being a predominately Muslim country then it will have to allow for investors from other Muslim nations in the country. These investors may be sponsors to terrorist. Such a scenario can only be suspected but there are possibilities of occurrence. Nevertheless there are those that argue that the European Union is meant to grow across borderlines. This means that more countries should join the Union without necessarily having to compromise with its stand on a number of issues. The benefits of EU are felt across the borders of member countries. This is not only the expanded market but also citizens are well able to move across borders without impediment. This movement is essential for trade since different cultures and lifestyles come to meet and exchange information and ideas (Uk Department of business Innovation and Skills). There is greater awareness of demand for a particular good and service in areas that were initially not accessed by traders. Furthermore with globalization formation of more unions will be encouraged. Trading blocks are able to recognize the values that appeal to all parties hence the unions are able to merge. Economy and Trade A number of new entries in the EU are noted to have benefited tremendously from the union. This is not only as a result of expanded markets for goods and services but improvement in infrastructure. These factors have attracted foreign investors who eye the wide market. On the other hand citizens are able to benefits from improved services and a great variety of high quality goods. On the contrary there are some negative effects of union membership. There are countries which are adversely affected by the European custom union. According to estimates from the government of Turkey, import duty rate from EFTA countries and the European Union has dropped from 10% to zero (European Commission, 2009). On the other hand duty charged on imports has decreased from approximately 10% to 5%. This exemption from duty also includes products from the United States. However, the government of Turkey has maintained tariffs on a number of sensitive products. Agricultural products for instance will continue to be protected by sharp tariffs till further negotiations and made. In addition countries can exceed the limits for export subsidy. In the past Turkey has been victim of exceeding the limits for wheat and sugar. Sometimes the country fails to notify the WTO whenever the requirements for export change. Further it is problematic for the country once non-tariff barriers are applied to the agricultural products. The country also violates the obligations of WTO by failing to come up with a protocol for all meat products imported in the country. As much as it may seem as a country’s right, it is still a violation of the agreement. As a predominantly Muslim country, Turkey is faced with a number of challenges. Nevertheless it is these challenges that will see to the growth of the union. There is expected to be more countries joining the union with complications. Code of Conduct of EU Members The code of conduct established within the region is meant to guide members in exportation of arms (Federation of American Scientists). The code is useful in creating standard for all members of the union and at the same time allows for transparency among member states. Arms cannot be sold to a country where the risk of political repression is high. Moreover, if the weapons are likely to be used against an ally or against another country then such a deal is cancelled (Federation of American Scientists). The question however remains to what extent can a country be considered oppressive to its people. Who is to decide whether a certain country is an ally or not? All these factors play a role is hindering trade between countries. In most cases weapons have to be sold whether or not EU members to decide not to sell them. Therefore a country interested in selling weapons to another will find this code to be repressive. Trade and Environment There is a close linkage between trade and environment. This is not better illustrated as in the case of the European Union. Trade policies have been instrumental in ensuring environmental goals are supported. Again, trade policies must see to the possible effects that trade impacts on the environment. These challenges can only be managed if all nations are to cooperate effectively. The trading partners as well as various ministries within the government have to work hand in hand to see to the fulfillment of this goal. In the European Union this objective is emphasized. International trade agreements are not to be undermined by open trade. This is despite the fact that European Union puts special emphasis on free trade (Uk Department of business Innovation and Skills). There are some countries where the governments have not ratified legislation on environmental issues. These third countries comprise of strategic business partners to some of the European Union members. In this case trade with such countries is curtailed. Climate change has also been an issue of great concern to the European Union. Trade policy by the EU emphasizes on the need to reduce on greenhouse gas emissions. According to EU terms special tariffs are awarded to countries that have not only ratified but gone an extra mile to implement environmental agreement. Since this issue is of a global concern all countries must show solidarity (Federation of American Scientists). The EU has advocated for environmental services and goods such as waste paper management, renewable energy products and construction services that are energy efficient. These technologies are spread to all parts of the worlds so all to be beneficial to everyone. For the EU to see to a global concern about the environment and acceptance by other countries then members must be in agreement. The policies should therefore appeal to the entire globe as opposed to having the interests of a few countries in mind. It is probably for these reasons that other countries that wish to trade in the union have to abide by some legislation. There are also those who are affected directly by the policies. Conclusion There are a number of benefits that come with joining the European Union. Most of the countries that joined earlier were aware of this fact and applied faster to join the union. These advantages are not confined to the members alone. There is growth in infrastructure, the customers also benefit from variety of goods and services. Furthermore countries such as Romania, Turkey, and Ireland were able to benefit other partners once they joined the union. The other countries are well able to invest in these member countries such that they are able to take advantage of the large market. Investment is also boosted in these member countries. In addition the global environment has become a great concern to the European Union. Despite the lack of enthusiasm among some developing countries to ratify some of the global environmental treaties, still the EU through its policies encourages greater concern. The special tariffs for countries that have ratified global environmental policies persuade more countries to participate. It might be a small step by the Union nevertheless it serves well the preservation of the environment. On the other hand there are some impediments to the member countries. In some cases trade with other developing countries is curtailed as a consequence of the code of conduct. There are some countries which cannot be allowed to trade with others due to internal political factors. In some cases for instance in regard to the sell of arms the regulation are not well cut and may seem not realistic enough. It is not clear who is to determine the use and the intended purpose of ammunition. There are times when revealing such information may expose the security of a nation. It is for this reason that it remains datable whether or not the regulation on the selling of arms is effective in combating evils such as terrorism. Work Cited Europa, 2008. Summaries of EU Legislations. Promoting Human Rights and Democratization in Third Countries. Retrieved on 13 December 2009 from http://europa.eu/legislation_summaries/human_rights/human_rights_in_third_countries/r10101_en.htm European Commission, 2009. The EU in Ireland. Effects of the EU in Ireland. Retrieved on 13 December 2009 from http://ec.europa.eu/ireland/ireland_in_the_eu/impact/effects/index_en.htm Federation of American Scientists, 2008. European Union Code of Conduct. Retrieved on 13 December 2009 from http://www.fas.org/asmp/campaigns/code/eucode.html Topidi Kyriaki. Minority Rights Protection & the Challenge of EU membership: The Case of Romania, 2006 Romanian Journal of Society&Politics. Retrieved on 13 December 2009 from http://www.britannica.com/bps/additionalcontent/18/24365075/MINORITY-RIGHTS-PROTECTION-ampTHE-CHALLENGE-OF-EU-MEMBERSHIP-THE-CASE-OF-ROMANIA Uk Department of business Innovation and Skills, 2009. European Union Membership - The Benefits. Retrieved on 13 December 2009 from http://www.berr.gov.uk/whatwedo/europeandtrade/europe/benefits-eu-membership/page22676.html Read More