During the last two decades, regional trading blocs and intra-regional trade have been gradually built up. Moves towards a liberalisation of international trade have led to the formation of large and increasingly regional trading blocks. Advantages deriving from international trade include political stability and overall growth. The three largest and best-established trading regions worldwide are NAFTA, EU and Asia-Pacific (ASEAN and APEC).
Without being a member or contracting party, the European Union already participated in trade negotiations of GATT, OECD and UN and has also favoured Mercosur’s process of regional integration from its very conception in 1991. Today Mercosur is the world’s fourth largest single market, after the EU, the USA and Japan. Mercosur’s aim to become a real common market forms the main element in the creation of an association between both regions.
This book mainly concentrates on the bilateral negotiations on trade issues between the European Union and Mercosur.
Table of Contents
1. Introduction
2. Brief comparison between the European Union and Mercosur
3. EU-Mercosur Trade Relations
3.1. The Interregional Framework Cooperation Agreement
3.2. Negotiations on Trade Issues
3.3. Trade in goods
3.4. Trade in services
4. Conclusion and outlook
Research Objectives and Key Themes
The primary objective of this essay is to analyze the bilateral trade negotiations between the European Union and Mercosur. The paper examines the institutional frameworks, historical development, and structural challenges of these two trading blocs, focusing specifically on how trade relations in goods and services are being negotiated to foster closer economic integration.
- Institutional comparison of the EU and Mercosur
- Mechanisms and progress of EU-Mercosur trade negotiations
- Analysis of trade in goods and sectoral exports
- Evaluation of trade in services and regulatory frameworks
Excerpt from the Book
3.3. Trade in goods
Total foreign trade in goods within a certain trading bloc is divided into extra- community trade (with the outside world) and intra-community trade (with other member States). The trade structure per sector between the EU and Mercosur differs considerably. Whereas the EU focuses on industrial production and capital goods, Mercosur mainly exports agricultural products and foodstuffs.
Between 1990 and 1996, the EU’s extra-community trade rose by 37% and Mercosur’s by 89%, what reflects the ongoing opening up of their economies. Whereas the EU’s main surpluses are reached through trade with Eastern Europe, the Mediterranean Basin, the United States, Japan and ASEAN, the EU is Mercosur’s main trading partner before the US, ALADI and Japan.
EU imports and exports are structured similarly. Exports consist to a large degree of high technology such as motor vehicles (4.2% of all exports), aircraft (2.3%) and pharmaceuticals (1.3%). Capital goods account for 30%, semi-manufactures for 25% and consumer goods for 19% of the total. Only imported commodities (4%) and energy account for a relatively larger proportion compared with exports. Contrarily, Mercosur’s exports mainly concentrate on agricultural products with 36%, capital goods and computer equipment (11%), chemicals and petrochemicals (8%), automobiles (5%) and textiles (5%). Further importance is attached to iron and steel products, non-electrical machinery, agricultural by-products and oils and fats. As for Mercosur imports, capital goods amount to 34% and chemicals and petrochemicals to 16% of the total.
Summary of Chapters
1. Introduction: This chapter provides an overview of the rise of regional trading blocs and outlines the scope of the study regarding the EU-Mercosur relationship.
2. Brief comparison between the European Union and Mercosur: This section compares the developmental history and institutional structures of the European Union and Mercosur.
3. EU-Mercosur Trade Relations: This chapter details the foundational agreements and the ongoing formal negotiation processes between the two regions.
3.1. The Interregional Framework Cooperation Agreement: This subchapter examines the 1995 Madrid agreement which set the objectives for intensifying trade relations.
3.2. Negotiations on Trade Issues: This section outlines the structure of the Biregional Negotiations Committee and summarizes the rounds of negotiations held since 2000.
3.3. Trade in goods: This chapter analyzes the trade structure, highlighting the divergence between EU industrial exports and Mercosur agricultural exports.
3.4. Trade in services: This section covers the service sector contributions to GDP and the commitment to GATS methodology in trade negotiations.
4. Conclusion and outlook: This chapter summarizes the existing trade asymmetries and provides a final assessment of the prospects for future cooperation.
Keywords
European Union, Mercosur, trade negotiations, regional integration, customs unions, interregional framework, WTO, trade in goods, trade in services, bilateral agreements, economic development, trade liberalization, market access, GATS, industrial exports.
Frequently Asked Questions
What is the core focus of this research paper?
The paper explores the bilateral trade negotiations and economic relations between the European Union and the Mercosur trade bloc.
What are the primary themes discussed in the work?
The work covers institutional comparisons, trade negotiation structures, sectoral trade patterns (goods and services), and existing trade barriers.
What is the main goal or research objective of the study?
The objective is to analyze the efforts of both regions to foster closer economic integration and to understand the dynamics of their ongoing formal trade negotiations.
Which research methodology is employed?
The research uses a descriptive analytical approach, synthesizing trade statistics and legal framework documents from official EU and Mercosur sources.
What topics are covered in the main section of the paper?
The main section covers the Interregional Framework Cooperation Agreement, the Biregional Negotiations Committee, and detailed analyses of trade in goods and services.
Which keywords best characterize this work?
Key terms include European Union, Mercosur, trade negotiations, regional integration, customs unions, and international trade policy.
How does the EU trade structure differ from that of Mercosur?
The EU primarily exports high-tech industrial goods and capital products, while Mercosur's exports are largely concentrated on agricultural products and raw materials.
What is the significance of the Biregional Negotiations Committee (BNC)?
The BNC serves as the central forum for formal negotiations, overseeing technical groups and subcommittees to ensure comprehensive trade liberalization between the two regions.
- Quote paper
- Catharina Lang (Author), 2002, The Trade Negotiations between the EU and Mercosur, Munich, GRIN Verlag, https://www.grin.com/document/18601
