European business in a global context – the developed world

The EU and the ‘Triad’ EU is part of triad that dominates global trade EU external trade is mainly with US and East Asia But increased diversity since 1990s Trade is key to EU growth strategy EU has to trade its way to growth

Global crisis and the ‘Triad’ Rising protectionism and trade fell Main forms of protection: o sector subsidies o government procurement and ‘buy national’ strategies

EU and Free Trade Agreements EU signed series of bilateral agreements Driven by failure of multi-lateral agreements These FTAs focus on developed states Despite rhetoric are limits to free trade within them

EU and East Asian FTAs Japan, Korea, Australia and Singapore – main focus Superseded by rise of China in the region Japan – most important of FTA deals Focus on intra-industry trade esp. Japan and Korea Australia – trade dominated by commodities

EU and Western Economy FTA The focus on North America and non-EU European states Largely intra-industry in nature US is EU largest trading partner Most non-EU states covered by European Economic Agreement Canada also negotiating an FTA

Trans-Atlantic trade and investment partnership (TTIP) TTIP is proposed FTA between EU and US The TTIP has three main elements: o improving market access through the removal of customs duties and other non-tariff barriers o enhancing regulatory coherence and co-operation o improving co-operation in the setting of international standards

TTIP Expect big gains from TTIP 0.5% of EU GDP But fears: o deregulation could create a race to the bottom o TTIP could result in a loss of a regulatory sovereignty o investment protection could lead to the EU being sued by US MNCs over legitimate regulation