How Does Trade Agreements Help The Countries Involved
Between 1959 and 1969, trade within the European Community (EC), the forerunner of the European Union (EU), increased by 347%. On the other hand, trade outside the COMMUNITY increased by only 130%. Over the same period, U.S. world trade grew by 124 per cent, while Canadian world trade increased by 130 per cent. The value of Spain`s bilateral trade with Portugal increased by more than 79% in the first year of spain`s accession to the EC (1986). In the first ten years of Britain`s accession to the EC (1973-1983), the United Kingdom`s exports to the other Member States increased by 28% per year, while its imports increased by 24%. Trade with the rest of the world grew by 19 percent per year during this period. Non-traditional trade barrier measures are more difficult to quantify and assess, but they are gaining in importance due to the decline in traditional customs protection and barriers such as import quotas. Anti-dumping measures are on the rise in both developed and developing countries, but are disproportionately affected by developing countries. Another major obstacle is the requirement to comply with the technical and hygienic standards applicable to imports. They entail costs for exporters that may outweigh the benefits to consumers. Eu rules on aflotoxins, for example, cost Africa $1.3 billion in grain, dried fruit and nut exports per European life saved9 Is this a fair balance between costs and benefits? In developed countries, production protection is generally low, but it remains high for many labour-intensive products manufactured by developing countries. Thus, the United States, which has an average import tariff of only 5%, has peaks of nearly 300 individual products.
These mainly concern textiles and clothing, which account for 90% of the $1 billion annually in the United States. Imports from the poorest countries – a figure held by both import quotas and tariffs. Other labour-intensive producers are also disproportionately exposed to tariff spikes and tariff escalations that hinder the diversification of exports towards higher value-added products. At that time, u.S. . .