CH.9 - EU
European Commission represents
the interests of the community as a whole
Trans-Pacific Trade Accord
a revision of the proposed Trans-Pacific Partnership without the United States. The new agreement drops tariffs and establishes sweeping new trade rules
Common Market of the South (Mercado Común del Sur) or Mercosur
founded in 1991 by Brazil, Argentina, Uruguay, and Paraguay, with Venezuela joining in 2012.
the Amsterdam Treaty
made some changes to the previous treaties, including granting more power to the European Parliament
European economic integration was predicated on the notion that a larger market, along with the free movement of goods and services, would permit ... (2)
(1) economies of scale (providing goods for a larger market would lower the fixed cost per unit) (2) specialization to stimulate growth, competition, and innovation
Why was CAP controversial? (2)
1. A major issue for states seeking membership and wanting their share of the agricultural budget 2. A critical issue in multilateral negotiations because nonmembers pay more for EU agricultural products than members do.
Why did the EU decide to adopt the Common Agricultural Policy (CAP)?
1. Agricultural prices dramatically fluctuate with weather and disease, so there has long been a strong incentive to moderate the price fluctuations caused by supply volatility 2. Foodstuffs are viewed as vital for national security; in emergencies, no state wants its population to depend on others for food 3. In many countries, the well- organized farm sector enjoys disproportionate political power.
The framework articulated in the 2015 European Agenda on Migration in response to the crisis had bad consequences for nations (3)?
1. Germany and Sweden, two of the most generous countries toward the influx, want burden sharing, with other countries taking in a "fair share" of refugees 2. Central European members have refused to accept refugee quotas 3. Terrorists attacks connected to Islam has made each state more conscious about accepting large numbers of refugees without better security cooperation
US NAFTA cons (2)
1. Labor unions in the United States estimate that hundreds of thousands of workers have lost their jobs to Mexico 2. Environmental groups point to firms in the United States that have relocated to Mexico to take advantage of weak environmental regulations
The phasing out of many restrictions on foreign investment and most tariff and nontariff barriers, as well as the many restrictions on foreign investment, has allowed what (2)?
1. MNCs to shift production to low- wage labor centers in Mexico 2. to gain economically by creating bigger companies through mergers and acquisitions
US NAFTA Pros (3)
1. Tariffs on manufactured goods have also been almost entirely eliminated. 2. Positive impact U.S. GDP, adding $80 billion to the U.S. economy, with much of that concentrated in auto manufacturing. 3. An estimated 14 million U.S. jobs now rely on trade with Mexico and Canada, paying up to 20 percent more than the jobs lost
European Parliament membership and voting
751 members, elected for five years by voters in member states; allocated by size of population; organized around political parties
2 arguments for Brexit
1. The EU had provided the false promise of increasing wealth, but the electorate was not seeing the anticipated economic or political rewards. 2. Advocates for Brexit wanted a return to complete sovereignty, in which the British Parliament controlled trade relationships and established rules for control of the borders.
Treaty of Lisbon is another attempt to enhance the efficacy of the EU by doing what? (3)
1. creating the offices of president of the European Council and High Representative for Foreign Affairs (who leads a more united policy) 2. increasing the use of qualified majority voting in place of unanimity. 3. improving the democratic legitimacy of the EU by increasing the authority of the European Parliament
The General Court's wide-ranging responsibilities for interpreting and enforcing EU law include
1. ruling on the constitutionality of all EU law 2. interpreting treaties 3. pro- viding advisory opinions to national courts 4. and settling disputes among member states, EU institutions, corporations, and individuals.
The power increased of the Court of Justice of the European Union (CJEU), an institution that includes three courts
1. the European Court of Justice (ECJ) 2. the General Court 3. the Civil Service Tribunal
ASEAN Free Trade Area (AFTA) goals
1. to attract foreign investment to the region, 2. to increase members' competitive edge in the global market by eliminating tariff and nontariff barriers within ASEAN.
European Commission membership and voting
28 members; four-year terms, approved by member states; plus 23,000 support staff (Eurocrats)
Council positive vote requires ...
55 percent of the member states, representing 65 percent of the EU's total population
Court of Justice of the European Union Responsibilities
Adjudicates disputes over EU treaties; ensures uniform interpretation of EU laws; renders preliminary opinions to states
The G7 major economic powers are faced by both the BRICS and Group of 20 collective emerging powers, which includes..
Brazil, Russia, India, China, and South Africa; the G7, the BRICS, and Australia, Mexico, South Korea, Turkey, Argentina, Indonesia, and Saudi Arabia
Canada Pro and Con
Canada has had a threefold surge in cross- border investment and is a leading importer of U.S. agricultural products. But Canadian labor contends that the country is becoming too dependent on natural resource exports.
European Council Responsibilities
Defines policy agenda and priorities
Directorate-general (European Commission)
Each is responsible for a particular policy area that is divided into directorates that cover specific parts of that policy area
Council qualified voting system
Each member is given a certain number of votes, weighted by size and population
The need to expand the European economy was because of what? (2)
Europe's sluggish economy in the 1970s and 1980s and when US and Japan's economy was competitive
European Council membership and voting
Heads of government; Commission president; High Representative for Foreign Affairs; summit meetings quarterly; elects president to represent EU to world
Association of Southeast Asian Nations (ASEAN)
In 1992, the Association of Southeast Asian Nations (ASEAN) established the ASEAN Free Trade Area (AFTA)
Court of Justice of the European Union membership and voting
Includes European Court of Justice (judges) appointed by states for six-year terms; General Court; Civil Service Tribunal
European Commission Responsibilities
Initiates proposals; guards treaties; executes policies; responsible for common policies
What did the Maastricht Treaty call for?
It called for the establishment of a single currency, the euro
European Parliament Responsibilities
Legislates; approves budget and the laws with the Council of Ministers
Council of Ministers Responsibilities
Legislates; sets political objectives; coordinates; resolves differences
Mercosur has _________ and ________ and products made there are treated __________ in _______________.
Mercosur is a trading bloc with designated free- trade zones. Products made in those zones are treated more favorably in interstate commerce than those made in the states' own territories.
Council of Ministers membership and voting
Ministers of member states; unanimity or qualified majority voting depending on issue
How to unite Europe Functionalists (2)
Proposed by Jean Monnet Believed that the forces of nationalism ultimately could be undermined by the logic of economic integration He proposed cooperative ventures, beginning with the European Coal and Steel community in nonpolitical issue areas
Mexico pro (1)
Some major increases in jobs, including a fourfold increase in the number of Mexican autoworkers
Trans- Pacific Partnership (TPP) goal
The agreement, touted as a global trendsetter for commerce, included a phasing out of import tariffs on 18,000 U.S. products, like automobiles, machinery, technology, and agricultural products
What was an effect of the euro on the 17 members of the Eurozone?
The individual 17 members of the Eurozone could no longer use monetary policy like exchange rates or interest rates as instruments of economic policy
Mexico cons (4)
The slide in real manufacturing wages due to the movement of lower- skilled jobs to China Mexico has failed to develop backward linkages in its export sector; ancillary services and other manufacturing facilities have not developed, in part because of foreigners' unwillingness to invest in Mexico Foreign investment in Mexico has increased from $4.4 billion in 1993 before NAFTA to about $22 billion annually, it is below foreign investment in Brazil, Chile, and Colombia, non- NAFTA countries Wages have been relatively stagnant in Mexico, with poverty remaining at about the same level as in 1994
How to unite Europe Federalists (2)
They believed that because sovereign states started wars, peace was only possible if states gave up their some part of their sovereignty and invested in a higher federal body States could eliminate military competition, the root cause of war
Why was creating the euro important?
because with monetary stability and a single currency, the union would grow and prosper even more.
Reason for NAFTA
business interests seeking larger market shares than their Japanese and European competition, and free- trade advocates in all countries
Treaties of Rome, signed in 1957
committed the six states to create a common market;
The phased elimination of tariff and nontariff barriers in NAFTA has resulted in what?
expansion of trade; Trade among the three partners has tripled since 1994
Commission members must be _______ because they are not _
impartial; are not national representatives
Trans- Pacific Partnership (TPP) 2015
in late 2015 among the United States, Japan, and ten Pacific Rim countries (including Canada, Chile, and Mexico)
The European Monetary Union, set forth the what?
in the Maastricht Treaty in 1992
The General Court considers ______while the ECJ acts as ______
new cases, especially on issues regarding the single market; a court of appeals
The Amsterdam Treaty put more of an emphasis on what?
on the rights of individuals, citizenship, justice, and home affairs.
The framework articulated in the 2015 European Agenda on Migration in response to the crisis had good consequences?
provided for more funding for rescuing refugees at sea, relocating refugees, and aiding refugee- swamped Italy and Greece, member states are divided
The Council of Ministers duties
ratifying, modifying, or vetoing proposals, even though the Commission formally reports to the Council
Treaties of Rome goals (4)
removing restrictions on internal trade imposing a common external tariff reducing barriers to the movement of people, services, and capital establishing a common agricultural and transport policy
How could the Single European Act be achieved?
removing the remaining physical, fiscal, and technical barriers to trade harmonizing national standards of health varying levels of taxation eliminating the barriers to movement of peoples
AFTA reduction exceptions
rice and other highly sensitive products
To stimulate Europe's growth and its international competitiveness, what as created and what was its goals?
the Single European Act of 1987 accelerated the integration process, setting the goal of achieving a single market by 1992
To achieve the goal of reducing the trade deficit, the United States seeks changes in the rules of origin— the product- specific rules that stipulate ....
what must happen to inputs from non- NAFTA countries for the final exported product to qualify for NAFTA benefits
Single Payment Scheme
wherein each country chooses whether the EU payment goes to the farm or the region
Single European Act (SEA)
which established the goal of completing a single market by the end of 1992
