The European Union as an Actor in International Trade and Sample Clauses

The European Union as an Actor in International Trade and. Development Assistance Talking about trade relationships between the EU and third countries, it is important to understand some basic preconditions. As fixed in Articles 3(b) and 131 ff of the EC-Treaty, the EU follows a so- called Common Commercial Policy which includes a common external trade policy. In addition to the Customs Union, these principles provide the legal and institutional basis for the European Community (EC) as a whole to engage in common trade relationships with (groups of) third countries such as the ACP preferences. Basically the Common Commercial Policy refers to foreign economic policy (cp. Xxxxxxxx, 2004; p. 371) as can be seen in Article 131: “By establishing a customs union between them, Member States aim to contribute, in the common interest, to the harmonious development of world trade, the progressive abolition of restrictions on international trade and the lowering of customs barriers. The Common Commercial Policy shall take into account the favourable effect with the abolition of customs duties between Member States may have on the increase in the competitive strength of undertakings in those States [Europe: EC Treaty]”. The EU is a Customs Union as provided in the Articles 23 and 25-31 of the EC-Treaty. In a Customs Union goods can move freely without any barriers. The differentiation of a Customs Union from a Free Trade Area is that goods imported from outside the Union into member state X can move into member state Y on the same basis as goods produced in member state X. Hence a Customs Union makes sense only if all the member states agree on a common external tariff. Imports from outside must receive the same treatment irrespective of the state through which they enter the union (cp. Xxxxxxx, 2004; 394). The European Union has established a Common Custom Tariff (CCT) on goods coming from outside into the Union. The CCT applies to all nations importing into the EU, exceptions for lower duties are to be found in Preferential Trade Arrangements (PTAs) which are described below. Summarizing, it can be stated that, the Common Commercial Policy, the common external trade policy as well as the Customs Union as fixed in the EC-Treaty provide the basis for common trade relationships such as a common external tariff or the provision of PTAs. Following, a short introduction to provisions of the World Trade Organisation (WTO) will be given and an overview about the multiple PTAs which the EU offers will be provided. Thereafter I will ...
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