Relationships Between E.U. and Extra Union Countries

INTERNATIONAL TRADE

RELATIONSHIPS BETWEEN E.U. AND EXTRA UNION COUNTRIES

An important relationship is between E.U. and W.T.O.

W.T.O. was born soon after the Second World War. Nowadays it has about 150 members. The E.E.C. was born later.

The EU, in order to protect its market --- customs duties, mostly tariffs

The most important means the EU has to protect its market is applying customs duties. The most commonly used way is using TARIFFS.

Up to 1994 tariffs varied daily, according to the stock exchange.

For examples cereals (which are very important, as they are essential for both people and animals) were officially quoted on the Chicago Stock Exchange.

Grain 250 : 1 as cost of extra E.U. countries

It was really important to fix tariffs on grain as in the countries of the Union it cost 250 more than in extra European countries

1994 Marakesh agreement  tariffs fixed each year

In 1994 things changed. In fact a new agreement was set up in Marrakesh, which established that tariffs had to be fixed each year and no more daily.

Tariffs are obviously fixed when E.U. sees a possible treat to its market, as everything cannot be forseen.

Nowadays textiles and footwear conditions as for prices (coming from China, Vietnam, Thailand are worse) than the ones for grain, but it is important to know that there was an agreement on textile some years ago, which established the liberalization of these goods starting from 1st January 2005.

Extra E.U. countries are not treated the same way as for commerce. In fact there are different agreements:

-A.C.P. (AFRICA – South Africa and Northern African countries excluded), CARIBBEAN, PACIFIC)  poorest areas in the world

 privileged agreements: no tariffs as they are poor

advantages coffee, cacao, bananas

BUT they also ask to export rice, sugar (sugar cane – beet) if enter, they can causeeconomic damages to our market

AFRICAN PROBLEMS: FOOD, HEALTH, WAR

For many years: blackmail (ricatto): I buy your products, you buy our arms

2000 E.U. STOP THE GAME  EBA (EVERYTHING BUT ARMS)

ask the WTO members to do the same: USA said NO

- agreement with Latin American countries (paesi del patto Andino)

no tariffs if products are cultivated in lands in which coca was cultivated before, to fight coca cultivation

MEDA (MEDITERRANEAN COUNTRIES) ( Morocco, Algeria, Tunisia, Lebanon)

BARCELLONA PROCESS

Neighbourhood policy  from 1st January 2010 all products and services coming from this area

Will be able to circulate freely

Agreement on textile  liberalization from 1st January 2005

Are tariffs the only solution?

Quotas (on garlic from China)

QUALITY

-minimum in quality

-no children exploitation

-working condition

nike  products coming from usa have high tariffs

every country should aim (puntare) at quality, typical products