BILATERAL TRADE RELATIONS OF THE EU WITH THE US RUSSIA AND CHINA.docx
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BILATERAL TRADE RELATIONS OF THE EU WITH THE US RUSSIA AND CHINA.docx
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BILATERALTRADERELATIONSOFTHEEUWITHTHEUSRUSSIAANDCHINA
FacultyofEconomics
UniveristyofLjubljana
EconomicpoliciesoftheEU
Wintersemester2010/11
BILATERALTRADERELATIONSOFTHEEUWITHTHEU.S.,RUSSIAANDCHINA
PeterMarinšek
HelenaPotokar
DavorVogrinčič
JureKimovec
ShijunWang
JieHu
Ljubljana,5.12.2010
Indexofcontent
1.Introduction3
2.EconomicrelationshipwiththeUnitedStatesofAmerica4
2.1.2005EU-USSummit4
2.2.FrameworkforAdvancingTransatlanticEconomicIntegrationbetweentheEUandtheUS5
2.3.Tradedisputes7
2.4.ThethreemostimportantDialoguesbetweentheEUandUS7
2.5.EU-UStradeinfactsandfigures8
2.6.WhataboutthefutureinEU-UStrade?
11
3.EconomicrelationshipwithRussia12
3.1.RussiaandtheFTA?
13
3.2.Russiatoday14
3.3.Tradeinservices16
3.4.Tradedisputes17
3.5.EU-Russiatradeinthefuture18
4.EconomicrelationshipwithChina18
4.1.TheGeneralIntroductionofEU-ChinaTradeBilateralRelationships18
4.2.TheMainTradeTypesbetweentheEUandChina20
4.3.TheMainObstaclesintheBilateralTradeRelationshipsbetweentheEUandChina22
5.Conclusion25
Sourcesandliterature:
26
APPENDIX30
Indexoftables
Table1:
EUimportsfromUS,shareoftotalEUimports10
Table2:
EUexportstoUSandshareoftotalEUexports10
Table3:
ImportsfromRussiatotheEU15
Table4:
EUtradeinserviceswithRussia,inmillionseuros17
Indexofgraphs
Graph1:
TotalEUexports/imports9
Graph2:
ImportsandexportsoftheUStoEU9
1.Introduction
Thereisnosuchcountryintheworldwhichcanmeetitsownneedstoprovideenoughresourcestosatisfythewholedemandofsomespecificgoods,servicesorinvestments.Alsoalmosteverycountryhasitsownsurplusinproductionofspecificresourceandintheotherhanditislackingofsomeothers.Europeisagreatexampleofatradingcontinent.Itseconomicstrengthisbuiltontradeandatthesametimeitalsostrivesforbiggeropennessofthemarketsitistryingtosellto.Openingamarkettotradeisaboutcreatingmarketsinwhichforeigncompaniesgetafairdeal,withfreedomtocompeteandwiththelegalprotection.Toprovidesuchconditionscountriessigndifferentagreementswhichcanbebetweentwo(bilateral)ormore(multilateral)countries.Bilateralagreementswithcarefullychosenpartnerscancreatenewtrade,improvethecompetitivenessofcountriesanditscompaniesandpreparethegroundforfutureliberalizationoftrade.Tradeagreementsareusuallysignedinthoseareaswheresomerules(WTOrules)donotyetfullyapply.
Everytradebetweencountrieshasitsprosandcons.Tradecanincreaseeconomicgrowth,consumercangainwiderrangeofdifferentproductsandalsothereisbenefitincreatingnewjobs.
InourassignmentwewilltrytofindthemostimportanttradeagreementsEuropeanUnionhassignedwithsomethirdcountries–inourcasewithUS,RussiaandChina.InthebeginningwewillstartwithsomebasicsandthenwewillcontinuewithtradeagreementsEUhaswitheachcountry.Wewilldefinehowthebilateraltradeagreementsinvolveduringthepast,showsomecurrentconditionsandalsotrytodefinesomeimportantstepsthatareproposedforfuture.
2.EconomicrelationshipwiththeUnitedStatesofAmerica
NoothereconomicrelationshipintheworldisasintegratedasthetransatlanticeconomyastheEUandtheUSeconomiesaccounttogetherforabouthalftheentireworldGDP.
ThetransatlanticrelationshipalsodefinestheshapeoftheglobaleconomyasawholeaseithertheEUortheUSisalsothelargesttradeandinvestmentpartnerforalmostallothercountriesintheglobaleconomy.ThefirstbigmeetingforEUUSintegrationwasintheyear2005inBrussels.
2.1.2005EU-USSummit
The2005EU-USsummithadthemainobjectiveofenhancingtransatlanticintegrationandgrowth.WiththeBelgianssittingatthepresidentstablethesummittookplaceinBrusselsandwasasortofsuccessionoftheEU-USdeclarationonstrengtheningeconomicpartnershipwhichtookplaceinIrelandoneyearbefore.Theretheydiscussedhowtheycouldfurthertransatlanticeconomicintegration,spurinnovationandjobcreationandrealizethecompetitivepotentialofbotheconomies.Withthatinmindtheyproceededwithaforwardlookingagendainwhichtheywantedtoremovetheimpedimentstotradeandinvestment,increaseintegrationofmarkets,andenablemoredynamicprivatecommercialactivity.
The2005summitwasalsokeentosupporttheWTODohaDevelopmentAgendainwhichtheWTOwantedtolowertradebarriersaroundtheworld,whichwouldallowcountriestoincreasetradeglobally(Asof2008,talkshavestalledoveradivideonmajorissues,suchasagriculture,industrialtariffsandnon-tariffbarriers,services,andtraderemedies).
TheEuropeanUnionandtheUnitedStateswantedtoremoveoromitbarriersondifferentlevels.Thisrangedfromregulatoryframeworktocapitalandlaborflowandultimatelytoinformationexchangeondifferentthings.Themostimportantobjectivesare(Europa,2005):
∙promoteregulatorycooperationandestablishahigh-levelRegulatoryCooperationForum;
∙stimulateopenandcompetitivecapitalmarkets;
∙reinforcecooperationonservices(mutualrecognitionofprofessionalqualificationsandaviation).
∙improvetransatlanticprocurementopportunities;
∙enhancetradeandtransportsecuritywhilefacilitatingthemovementofpeopleandgoods;
∙developandhelpdisseminateenergyefficiencytechnologies;
∙supporteffectiveprotectionandenforcementofintellectualpropertyrights,athomeand
∙abroad,inlinewiththehighestinternationalstandards;
∙takemeasurestofacilitateinvestmentflowsthatcontributetosustainedeconomicgrowth;
∙explorewaystoexchangecertainconfidentialinformationininternationalcompetitioncases;and
∙spurinnovationandtechnologicaldevelopmentbypromotingcooperationinawiderangeofareas,includingresearchanddevelopment,space,educationandexchanges,informationandcommunicationstechnologies,andhealthandmedicaltechnologies;
SincetheoutlineoftheobjectivestherewereEU-USministersmeetingsinwhichtheyoversawtherealizationoftheobjectivessetatthe2005summit.Fortherealizationoftheregulatoryframeworktheydevelopedtheso-called2005RoadmapforEU-USRegulatoryCooperation(Europa,2005)inwhichtheyendorsedconcreteobjectivestoimproveregulatorycooperation.TostimulateeconomicmarketstheycontinuedtousetheEU-USFinancialmarketsregulatorydialogue(Europa,2004),wheretheyanticipatedandidentifiedfinancialregulatoryissuesandpromotedprogressoncertainissues.Theyalsoliberalizedinformationmakingitavailablenotonlytogovernmentsandmultinationalcorporationsbuttosmallandmediumenterprises.
2.2.FrameworkforAdvancingTransatlanticEconomicIntegrationbetweentheEUandtheUS
OnApril30,2007therewasameetinginWashingtoninfavouroftheTransatlanticEconomicIntegrationbetweentheEUandUSAandcreationoftheTransatlanticEconomicCouncil(TEC).ThemeetingoftheEuropeanUnionandtheUnitedStatesofAmericaleaders,triedtoidentifyexistingbarrierstotradeandinvestmentandtoestimatethebenefitsofremovingsuchbarriers.Bothsidesbelievethatstrengtheningthetransatlanticeconomicintegrationwillbenefitthelivesoftheircitizensandwillimprovecompetitivenessforbotheconomies.Furthermoreitwillhaveglobalbenefits,facilitatemarketaccessforthirdcountries,encourageothercountriestoadoptthetransatlanticeconomicmodelofrespectforpropertyrights,provideopennesstoinvestment,transparencyandpredictabilityinregulationandthevalueoffreemarkets(Framework,2007,p.1).Tothatend,thisFrameworkreaffirmsamultiyearprogramofcooperationthatemphasizesresultsandprovidesaccountability.
Inlightofsharedcommitmenttoremovebarriersfortransatlanticcommerce,torationalize,reformandwhereappropriate,reduceregulationstoempowertheprivatesector,toachievemoreeffective,systematicandtransparentregulatorycooperationtoreducecostsassociatedwithregulationtoconsumersandproducers,toremoveunnecessarydifferencesbetweentheirregulationstofostereconomicintegration,toreinforceexistingtransatlanticdialoguestructuresinregulatorycooperationbothbyintensifyingtheirsector-by-sectorEU-USregulatorycooperationandtheirdialoguebetweentheEuropeanCommission(EC)servicesandtheU.S.OfficeofManagementandBudget(OMB)onmethodologicalissues(Framework,2007,p.2,4):
∙toreducebarrierstotransatlanticeconomicintegrationposedbynewregulationsbyreinforcingtheexistingtransatlanticdialoguestructuresand
∙takethefollowingstepstoreducebarrierstotransatlanticeconomicintegrationposedbyregulationsinspecificsectorsbyintensifyingsector-by-sectorregulatorycooperation,includingthroughenhancedEC-OMBcooperation.
In2007establishedTransatlanticEconomicCouncil,co-chairedontheUSandEUside,issupposedto(Framework,2007):
∙overseetheeffortsoutlinedintheFramework,withthegoalofacceleratingprogress;
∙guideworkbetweenbothcountriesandhavingsummitswithafocusonachievingresults,includingsettinggoalsforachievingthepurposesoftheFramework,developingmetrics,settingdeadlinesandtargets,andmonitoringprogress;
∙adoptaworkprogram,drawninitiallyfromtheexistingworkprogramunderthe2005US-ECEconomicInitiative,withthegoalofachievingtheobjectivesofFramework,andshalladaptthisworkprogramandotherwiseorganizeitsactivitiesinthemannerbestsuitedtoachievingthoseobjectives:
∙
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