The Core of Trade Policies of the European Union – Freedom

这篇essay讲诉的是建立自由市场的贸易商品和服务人民，是欧盟的原始目的，如今,欧盟,28个州的经济联盟,是世界上最大的政治和经济组织。欧元区(正式名称为欧元区,是19个欧盟成员国的联盟采用欧元作为通用货币),是最大的出口国和进口国使用欧元作为通用货币和唯一的法定货币。自由贸易在欧盟已经显示其强大的力量来刺激经济和它带来的好处。这是倾向于建立一个大型自由贸易区包括世界上所有国家和地区,但过程和成本将是非常困难的。

Building the free market with the trade of goods, services, and people is the original aim of the EU, and freedom brings the energy to the EU economy. Nowadays, the European Union, a politico-economic union of 28 states, is one of the biggest political groups and economies in the world. The famous economic part of EU, the Euro zone (officially called the euro area, is a union of 19 European Union member states adopted the euro as their common currency), is the largest exporter and importer which use the Euro as their common currency and sole legal tender.

“With just 7% of the world's population, it(EU) accounts for over one quarter of the world's wealth as measured by gross domestic product (GDP) – the total value of goods and services produced.” (The European Union explained: Trade, 3)

With the process of globalization, the pattern of industry is changing significantly. So the trade policy needs to be changed with the times changing.  Today, the parts of products are produced in different parts of the world, and they are assembled in certain place in the last proceed. It is necessary to clear the trade limits such as taxes and other barriers for the economic development in current circumstance for the economy. The European Union has proposed many policies to accelerate the trade. The core and key of these trade policies is free trade.

EU has so many complex national borders. To build a free trade market, the EU tries to liberalize its member states markets (allowing imports to compete with domestic products freely). And meanwhile its trade policy is decided by the Treaty on European Union as amended by Lisbon. (Bomberg, 122-123) Overtime, the member states of European Union have become more interdependent, and the EU seems becoming a big state. Free trade means trade of goods, services with little taxes or without taxes and unregulated accessing to markets and markets information. The member states of the EU encourage free trade, which stimulates the economy strongly. Besides, “In line with WTO rules, the EU has its own range of trade defense tools to guarantee fair play in a competitive world.” (The European Union explained: Trade,14) So EU trade policy seems more preponderant compared to some other countries’. For instance, unlike the US policy, the content of the EU agreements varies considerably from case to case. “EU–Chile is seen as something of a model as it represents the most recent and advanced FTA, but it is only likely to be a model when the EU negotiates with countries at a similar level of development.” (Woolcock, 5)

According to an economic theory called comparative advantage, one has a comparative advantage over another in producing a certain product if they can yield the good costing lower. An agent who has a comparative advantage can increase the number of products and decrease the consumption of the product under free trade. “I argue that European integration has played a considerable role in the liberalization of European external trade policy by changing the institutional context in which trade policy is made.”(Hanson, 56)

There is no doubt that the EU has become the world's biggest single market zone. Not only European but also international investors enjoy the benefits of the Eurozone, where the movement of goods, services, and people is free. Through free trade agreements, the EU engages with a large number of partners, which seek to create jobs for EU by opening other country's markets. The EU has been more aggressive and competitive under the free trade. And meanwhile “Preferential trade policy agreements also vary widely across products and exporters.” (Cipollina, 42) So the total trade in the EU accounted for 66 percent of the overall exports created by the member states and 64 percent of their imports in the year 2009.

Apart from free trade to increase the economy, it is hard to ignore the humanitarian policies. The EU helps to decrease child labors and environmental destruction and emphasizes the combination of trade and development for many developing countries. It also allows the developing countries paying lower duties and supports the increase of exports of the developing counties in order to support them.

Free trade applied in the European Union has showed its strong power to stimulate the economy and the benefits it brings. It is the tendency to build a big free trade zone including all the countries and regions in the world, but the process will be hard and cost long time.

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