Per-Åke Andersson 031-786 1353 per-ake.andersson@economics.gu.se Globalisering och utveckling Karlstad Universitet, HT2010 F7: Ekonomisk Integration Per-Åke Andersson 031-786 1353 per-ake.andersson@economics.gu.se 2017-09-27

THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) Table 9.3 GATT and WTO Multilateral Trade Negotiations Multilateral Trade Round Dates Tariff Cuts # of Countries Major Negotiations Pre-GATT 1934-1947 33.2% 23 Tariffs First Round 1947 21.1 Second Round 1949 1.9 13 Third Round 1950-1951 3.0 38 Fourth Round 1955-1956 3.5 26 Dillon Round 1961-1962 2.4 Kennedy Round 1964-1967 36.0 62 Tariffs, Agriculture, Dumping Tokyo Round 1974-1979 29.6 99 Tariffs, NTBs Uruguay Round 1987-1994 38.0 125 Tariffs, Services, Agriculture Millennium Round 1999 Aborted Doha Round 2001- 142 See Text for Details

THE FUTURE OF INTERNATIONAL TRADE NEGOTIATIONS The major issues are International Trade in Agricultural Products Market Access – The WTO describes tariff reduction as market access International Trade in Services covered in the General Agreement of Trade in Services (GATS) Trade-Related Intellectual Property (TRIPS) Trade-Related Investment Measures (TRIMS)

Regionala initiativ GATT introducerade MFN, men ett undantag var den regionala klausulen. Most favored nation => a trade concession to one country has to be given to all other countries as well. The regional clause = groups of countries willing to start trading arrangements may do so without MFN if they form a substantial free- trade zone within their bloc.

INTRODUCTION Figure 10.1 Number of Regional Trade Agreements 32 – 30 – 28 – 26 – 24 – 22 – 20 – 18 – 16 – 14 – 12 – 10 – 8 – 6 – 4 – 2 – 0 – 1959 Goods Services Accessions Cumulative 1965 1971 1975 1981 1985 1991 1995 2001 2005

DEGREES OF ECONOMIC INTEGRATION Figure 10.2 Levels of Economic Integration Common Economic Policies and Common Currency Intragroup Capital and Labor Mobility Common External Tariff Removal of Intragroup Tariffs Reduction of Some Intragroup Tariffs Preferential Trade Agreement Free-Trade Area Customs Union Common Market Economic Union

Ekonomisk integration Developed countries: EU, NAFTA, APEC Latin America: Andean Pact, CACM, MERCOSUR, Group of three, LAIA, CARICOM Africa: cross-border initiative, East African Cooperation, Economic and monetary community of Central Africa, ECOWAS, Common Market for eastern and Southern Africa, Indian Ocean Commission, SADC, Economic Community of West Africa. Economic Community of the Great Lakes. Asia: ASEAN, GCC, South Asian Association for regional cooperation, ANZCERTA

TRADE EFFECTS OF ECONOMIC INTEGRATION Figure 10.3 Price of Cars in Mexico $25,000 – 20,000 – 15,000 – 10,000 – 5,000 – 0 – Price of Car U.S. Car Non-U.S. Car Cost Tariff

THE STATIC EFFECTS OF A CUSTOMS UNION Figure 10.4 Static Welfare Effects of a Customs Union Price of Cars P4 P3 P2 P1 Q1 Q2 Q3 Q4 Quantity of Cars SM DM Sus + tariff Sj+ tariff Sus Sj a b c

Europeiska unionen: 500 miljoner människor – 27 länder EU-länder Kandidatländer

THE EUROPEAN UNION Table 10.1(a) Chronological Development of the European Union European Coal and Steel Community ECSC 1951 Belgium, France, Lux, the Netherlands, Italy, Germany European Atomic Energy Community EURATOM 1957 European Economic Community EEC Treaty of Rome provided elimination of tariffs and nontariff barriers and the institution of a common external tariff Received GATT waiver under the Lome Convention European Free Trade Area EFTA 1960 Most European countries not included in the EEC provided for free trade in nonagricultural products Common Agriculture Policy CAP 1962 European Community EC 1967 Combined EEC, ECSC, and EURATOM Added The UK, Ireland, and Denmark 1973

THE EUROPEAN UNION Table 10.1(b) Chronological Development of the European Union Added Greece 1981 Spain and Portugal 1986 East Germany 1990 European Union EU 1993 Finland, Austria and Sweden 1995 European Monetary Union EMU 1999 EU Cyprus, Estonia, Czech Rep, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia 2004 Bulgaria and Romania 2007

NAFTA AND OTHER U.S. TRADE AGREEMENTS In 1989 the U.S. and Canada signed a free-trade agreement that phased in tariff reductions over 10 years Covered trade in goods and services, investment and eliminated national preference on most government contracts Freed U.S. and Canada from the few remaining restrictions on trade In 1992 this was broadened to include Mexico

APEC Samarbetsorganisationen för Asien och Stillahavsregionen (Asia Pacific Economic Cooperation) har 21 medlemmar: Australien, Brunei, Chile, Filippinerna, Hongkong, Indonesien, Japan, Kanada, Kina, Malaysia, Mexiko, Nya Zeeland, Papua Nya Guinea, Peru, Ryssland, Singapore, Sydkorea, Taiwan, Thailand, USA och Vietnam. Apec-medlemmarna har tillsammans omkring 41 procent av världens befolkning och står för drygt hälften av världens bruttonationalprodukt och 44 procent av världens handel

APEC Apec enades vid sitt helgtoppmöte (13/11/2010) i Yokohama om att nu ta konkreta steg för att bygga vidare på det frihandelsembryo som än så länge kallas TPP (Trans-Pacific Partnership). Där är ännu bara Brunei, Chile, Singapore och Nya Zeeland med, men giganten USA och flera andra stormakter är uttalat intresserade. Det största frågetecknet är Kina, som tros vara tveksamt till förhandlingarna om en förvandling av TPP till FTAAP (Free Trade Area of the Asia-Pacific) eftersom USA i ett sådant forum kan sätta ytterligare tryck på Peking att låta valutan yuanen försvagas mot dollarn.