The European Union (EU) and its Relationship with developing countries; what are the impacts on trade agreements?

Brief history on the formation of the European Union …The recommendation to form the European Union was made by the then Foreign Minister of France, Robert Schuman in a speech made on May 9, 1950. And since then, May 9 is celebrated as the EU’s birthday.

Presently there are 27 EU member countries and their motto is “United in diversity”.

EU Member Countries and Candidates for Membership

This posting is focused on one of EU member countries, Germany and its involvement with developing countries with regards to Corporate Social Responsibility and developed countries support on free trade policies.  Germany has few raw materials of its own but owes much of its present prosperity to trade. About third of Germany’s GDP is dependent on exports and on average; one job in every four depends on trade.

Over the past five decades the increase in trade flows from Germany has been disproportionately high, and world trade has increased by a factor of seventeen. The current volume of trade in goods and services amounts to over US$ 1 billion per hour. Nevertheless, Germany has a particular interest in changing this situation and enabling developing countries to play a greater part in international trade.  As the second largest trading nation in the world, Germany feels she has a responsibility in this area.  At the same time she realizes that substantial concessions will be required on the part of the industrialized countries.  Presently, there are still far too many trade barriers, either confronting developing countries or in the developing countries themselves, and these barriers need to be removed. Germany managed to ensure that the “Everything but Arms” initiative was successfully adopted as part of EU policy in February 2001. It gives the poorest developing countries completely free market access in the EU for all but a few sensitive products, for which there are interim regulations. As part of the trade round it is also necessary to introduce measures to facilitate trade for the other developing countries, notably trade in textiles and agricultural produce, in which developing countries are particularly competitive. 

http://europa.eu/about-eu/facts-figures/index_en.htm

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Developing countries faced greatest threat of marginalization but not globalization. With such obstacle, developing countries are in urgent need of a trade round that will enable them to further their interests and benefit from the multilateral system.  Associated with a comprehensive development strategy, free trade is an indispensable precondition for prosperity. In addition to the negotiations over agriculture and services, already underway, the traditional trade themes belong on the agenda, particularly the lowering of customs tariffs, the elimination of quotas, the removal of non-tariff obstacles to trade, and anti-dumping.  The successful conclusion of the Doha negotiations confirmed the central role of multilateral liberalizations and rule-making WTO as a powerful shield against protectionist backsliding.