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Trading Bloc (EU) (Trade Barriers (Duty Levies (restrictions on quality),…
Trading Bloc (EU)
Trade Barriers
Tariffs (taxes)
Quotas
Duty Levies
restrictions on quality
Trade agreements
Multi-lateral agreement Cotonou (2000) replaced Lome trade convention (1975) between EU and ACP: African, Caribbean and pacific nations, reduced import duties
e.g. Feta Cheese, French champagne
It is suspected by Trumps administration that by adopting a more protectionist policy the GDP would increase by $1.6 billion . Economists argue that GDP will actually decrease by 0.5 %. China’s exports to the US account for approximately 20% of China's total exports . Which is equivalent to 3.7% of Chinese GDP. However restriction will mean that consumers will lose by $800,000 due to 45% tariffs on Chinese goods. and overall tax will increase by $1.2 trillion. Therefore American GDP will actually decrease by 0.5 %. Trump’s America will risk retaliation from other countries, meaning that USA’s exports will also be hit with tariffs. Meaning the purpose of the WTO will be undermined.
Subsidies
e.g. common agricultural policy (CAP) 1962
'Low price' exports
increased production
food waste
milk lakes
butter mountains
food dumping on LIC markets - undermines local farmers
TNC's - out competes local production e.g. Walmart in China, Mexico, Costa Rica, however, some countries choose to ban TNC's e.g. McDonalds in Bolivia, Iceland, Kenya, Barbados to protect local production
Nigeria, Ghana
Trans - Atlantic trad treaty (EU & USA)
in future - exports from the EU are more than imports from USA due to EU restrictions (GM)
Bilateral - St Lucia and Sainsburys fairtrade bananas