1. Trading patterns within the EU Trading patterns between the EU and other markets Irish trading patterns and how joining the EU influenced the Irish economy How EU policy and funding impact the Irish economy 4 Ireland and the European Union

2. EU  One of the world’s largest trading blocs  One of the three key global economic areas known as the global triad  Accounts for over 20 per cent of world trade  Population: over 500 million  Currently: 27 member states  A social, political and economic union of these 27 member states  Originates from the ECSE and EEC  Aim: remove economic barrier, create free-trade zone  Common market: capital and goods move freely  Single market: customs duties abolished Chapter 4: Ireland and the European Union

3. Growth in EU trade  The Treaty of Rome: 1957, established a common market  The Common Transport Policy: transport and communication links  The Single European Act: 1986, Maastricht Treaty, single EU market  The common European currency: 2002, euro introduced The EU and Trade  Extra-EU trade: trade with non-member countries  Intra-EU trade: trade between member states Chapter 4: Ireland and the European Union

4. Extra-EU trade  EU accounts for about one-fifth of the world’s trade  EU is the biggest importer and exporter in the world  US is the EU’s main trading partner  20 per cent of EU exports to non-members go to US  13 per cent of imports from non-members come from US  China and Russia: have become major trading partners Chapter 4: Ireland and the European Union

5. Intra-EU trade  More important than extra-EU trade  Accounts for more than two thirds of EU trade  Some EU members: amounts to over 80 per cent of their total trade  Germany: dominates EU trade  Germany: 27 per cent of intra-EU exports and 20 per cent of intra-EU imports Chapter 4: Ireland and the European Union

6. Ireland’s trade with EU  Ireland joined the EU in 1973  EU has had a large impact on Ireland’s trade  Free trade policy: large factor in the development of Ireland’s economy  Steady growth in trade  Increases in both imports and exports  Irish trade has become less dependent on Britain Chapter 4: Ireland and the European Union

7. Changes in Irish trade  Before EU:  Economically dependent on Britain  Neo-colonial relationship with Britain  Exported raw materials and agricultural produce to Britain  Britain supplied the majority of Ireland’s imports  After EU:  Trade with other EU members increased  Economic reliance on Britain decreased  MNC investment:  Growth in manufacturing since 1960s Chapter 4: Ireland and the European Union

8. EU influence on Irish Economy – CAP  CAP: introduced 1962 to support the EU agricultural sector  Objectives: control production, guarantee prices, improve farm income  Issues: food surpluses, propping up of food prices  CAP reforms: decoupling, income supports, food safety, rural development Chapter 4: Ireland and the European Union

9. EU influence on Irish Economy – CFP  CFP: introduced in 1983 to manage the fishing industry  Objectives: sustainable stocks, prevent overfishing, R&D  TAC: quotas to conserve fish stock  Regulations: quotas on vessels, regulation of equipment, control of fleet sizes Chapter 4: Ireland and the European Union

10. EU influence on Irish Economy – Structural funds ERDF  ERDF  Established 1975  To promote regional development  Supports investments: infrastructure, research and innovation, environmental protection, job creation Chapter 4: Ireland and the European Union

11. The Cohesion Fund  Cohesion Fund  Established 1992  To provide additional funding to the poorest EU countries  Irish funds  Development of roads, airports and seaports Chapter 4: Ireland and the European Union

12. ESF  ESF  Established 1957  To improve social cohesion and economic well-being  Supports training, job creation and inclusion of minority groups Chapter 4: Ireland and the European Union