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European Union

 

Tatevik Zohrabyan

 

Agribusiness Teaching Center

 

International Trade

 

Fall 2002

 

European Union (EU)

 

Abstract

 

This paper is about the EU, its major policies, the key objectives,

legislations, instruments for implementing those policies, who the

members are, and the institutions involved in the implementation of the

trade goals.

 

Key word: European Union; Mission of the EU.

 

Introduction

 

The establishment of the EU intended to work toward common goals of

European countries. This free trade zone or economic community was and

is very successful which seeks special purposes such as political

dialogue, free trade and freedom of movement, economic, financial, and

cultural cooperation. Special attention was focused on the trade laws,

regulations, and other issues (Kotler, 1999, p. 371).

 

The key objectives are to keep market open, ensure fair trade, enforce

the legislation objectively and transparently, ensure trade partners

respect WTO legislation, and promote improvements to the system

(European Union). The EU provides sovereignty to its Members to act as

independent ones on behalf of the EU or in other words to welfare and

interest of the Union as a whole (European Union).

 

The integration of the EU after 2nd World War enabled the EU is to raise

standards of living, build an internal market, launch the common

currency - euro, strengthen the Union’s voice in the world. To realize

these goals the EU has been implementing several trade defense

instruments:

 

Anti – dumping policy

 

Anti – subsidy policy

 

Regulation on trade barriers

 

Protective measures.

 

The EU even uses a common currency, the euro monetary system which tend

to make the trade zone more effective and compatible in the

international market (European Union). The EU has such a structure that

there are 5 institutions and each of them is responsible for a

respective objective (European Union).

 

Today the EU is one of the influential and largest trade blocs or single

markets that includes 15 member countries. Those 15 member countries

totally have more than 370 million consumers and account for 20% of the

world’s exports. The EU is going to enlarge and accept 13 European

countries. The EU also intended to improve the relations with non-member

countries and for this purpose it planed to develop special policies on

trade with nonmember countries (Kotler, 1999, p. 371).

 

Nowadays, the EU is on the 5th place ahead of the US and Japan. The EU

is the leading player in international market (European Union).

 

European Union

 

The European Union (EU) was established after 2nd World War. France

officially undertook the establishment of the EU proposing to create

“the first concrete foundation of a European federation”. On May 9, 1950

the EU was created and initially six European countries joint to the EU:

Belgium, Germany, France, Italy, Luxemburg, and the Netherlands. Then 9

countries joint to the EU and today the number of the member countries

is 15 (later joint Denmark, Ireland, the United Kingdom, Greece, Spain,

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