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The EU has become one of the most powerful trading bloc in the world with a GDP nearly as large as that of the United States. the largest importer of agricultural products from developing countries, and maintains close links to its former colonies in the ACP group through trade preferences and aid deals. The EU has a single trade policy
45
40 35
totals: NAFTA 18.7% APEC 45% Mercosur 1.5% EU 37.4% ASEAN 6.8%
30
25 20 15 10 5 0 EU NAFTA APEC ASEAN Mercosur % of total world trading
Members
Austria Belgium Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Slovakia Slovenia Spain Sweden United Kingdom
Membership Criteria
Membership criteria require that the candidate country must have achieved; stability of specific organisations guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities the existence of a functioning market economy as well as the ability to cope with competitive pressure and market forces within the Union the ability to take on the obligations of membership including the loyalty to the aims of political, economic & monetary union (Same currency in two or more countries).
Membership Changes
To create and improve economy and jobs while using trade as a tool for improvement and development. To support the fight to protect the environment. To reverse Global Warming. Improve working conditions in developing countries. Ensure the highest standards in health and safety policies in buying and selling products.
The EU is the worlds largest trading bloc and accounts for 20% of global trade. Globally the EU has the largest exports in the agricultural sector.
Tariffs
High for importation of agricultural goods. Making it impossible for developing countries to compete in the agricultural sector. Although the EU has offered to halve the previous arrangements tariff, this is unhelpful as the EU tariffs at present are halve of the previous arrangement already so in fact they are offering nothing. Exporting ACP countries into the EU have fallen from 6.7% in 1976 to 2.8% in 1999.
173% tariff on lamb, 150% on garlic, 149% on beef, 134% on mushrooms, 118% on bananas, 114% on sugar, 103% on milk and 101% on rice.
Tariffs continued...
Less Developed Country (LDC) list are granted (supposedly) full tariff-free access. But this list does not cover some of the worlds poorest countries, and excludes large poor countries. For example Kenya, India, Pakistan and Nigeria are not included. Furthermore, the list is perversely designed so that if countries make progress, they automatically lose market access.
Taxes
On average Europe's taxes on food imports are five times higher than the US rate. Basic necessities like food and clothing have high taxes.