Are preferential trade deals with the EU good for developing countries?

Yes, because they create trade with the EU.
94% (34 votes)
No, because they divert trade from third countries.
6% (2 votes)
No, because free trade in general is bad for developing countries.
0% (0 votes)
Total votes: 36

Comments

A major achievement for Ukraine is the signing of the Association Agreement with the European Union and the implementation of a visa-free regime. The European and Euro-Atlantic development course of Ukraine is enshrined in law. But do we need it? I think we need it. This is not going to happen as quickly as we would like, my generation won't feel the full benefits of EU membership. Being a part of EU will have more advantages for trade development, for example: macroeconomic stability, technological modernization, free access to new technologies, subsidies, new jobs, common customs tariffs, protectionism. The negative aspects can be attributed to the non-competitiveness of certain types of products, the transition to the European level of prices, the outflow of labor, the use of the resource base and cheap labor force of Ukraine. There are more opportunities than threats. If we talk about trade with other countries, including Russia, we reduce our trade now because of the war. As for the destruction of the Donbas economy, it has already been destroyed, and it is not entirely true that the Donbas was the basis of the Ukrainian economy, it is imposed by Russian propaganda and separatism. Some industries will be uncompetitive, but it may be better to import the products if it is more profitable. It is important to concentrate on areas where Ukraine is truly competitive in the European and world markets. We definitely need to meet EU standards in all spheres of life, we have a long way to go for reform and changes. But whether to be a member of EU will be obvious later, because due to current conditions in Ukraine it is not clear yet.
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Total votes: 29
Peer vote
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Total votes: 1
Expert vote

A negative effect of trading policy is called trade diversion and it takes place only in case of increasing number of countries your country is trading with (trade creation). Talking about the situation in Ukraine and its relations with Russia, it turns to be obvious that trade diversion occurs. I'm not really into this question but from the point of view of this course participant, I'll say that improving conditions of trading with EU is more profitable than to remain and even establish trading with countries such as Russia. At least it requires to improve quality of goods that are purporting to be included in countries’ export because EU standards are pretty higher than Ukrainian ones and it will also make these goods more competitive on other countries’ markets. I completely understand how complex this question is and how hard it is to forecast every little outcome of making the decision in particular direction.
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Total votes: 22
Peer vote
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Total votes: 1
Expert vote

In my opinion, preferential trade agreements between the EU and developing countries are useful and important, but only in the biginning stages of developing trade cooperation. In the future, such benefits will only have negative effects and impede the development of efficient trade and related production in developing countries. That is why the initial trade benefits should be reduced over time as trade relationships develop.
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Total votes: 16
Peer vote
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Total votes: 1
Expert vote

In my opinion, preferential trade agreements between EU and developing countries are beneficial for both parts. First, for the developing countries, these preferential arrangements create an advantage for selling their goods ( increase the export level of goods) which means that this transactions bring an income for the country and the products are sold ( thinking at the possibility of deteriorate them eg. food or any product with an expiration date). Secondly, this agreements allow the extra EU countries to access an different market than their own at some different standard levels which can force them, in a good way, to improve their way of producing good ( technological improvement). On the other hand, the EU members can benefit due to this agreement of some products/ services that aren't available in the EU market ( diversity as an benefit of the interconnections between states). Also, the taxes for importing the goods can be lower, an advantage for the EU market. The example with Ukraine I think it should be seen from the level of transaction on the market: the benefits of transactions with the EU market or with the Russia. And beside the example with Ukraine, I believe that we should look at this agreements in perspective and to see that EU has a lot of bilateral agreements with a lot of states that export goods which is an opportunity for the EU citizens to access an market with diverse products, not only with an european origin.
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Total votes: 15
Peer vote
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Total votes: 1
Expert vote

Preferential trade agreements can be beneficial for developing countries by stimulating commerce and economic growth with the condition that the clauses in the agreements do not put constraints on future economic development. For developing countries regional and global trade is a key mean of promoting economic growth and fighting poverty. It starts with growth in the markets of goods and services which leads to growth through improvements in productivity brought about by the transfer of improved technology, specialization, and increased competition.
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Total votes: 12
Peer vote
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Total votes: 1
Expert vote

In my opinion, preferential trade deal with the EU goods are beneficial and not only for all the countries that shaked their hands with the EU for a better future. On one hand, this deal comes with an increase for the export of goods which means that it’s a good thing for the GDP. On the other hand, it’s a door opened to develop a country that it might suffer of poverty and fight against it. For citizens, the diversity that they can choice from it’s one of the highest point why this deal is a succesful one for everyone.
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Total votes: 9
Peer vote
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Total votes: 1
Expert vote

Yes, I think that preferential trade deals with the EU are good for developing countries, because it exapands their market and it helps them grow economically.
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Total votes: 4
Peer vote
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Total votes: 1
Expert vote

The EU applies preferential regimes that apply to most trading partners on the basis of preferential agreements and arrangements. Duty-free regimes or reduced tariffs for the import of certain goods are used. A characteristic trend in the development of trade relations between countries is that a significant number of these countries are reluctant to open their markets within the framework of multilateral agreements under the WTO line and at the same time are rapidly increasing the number of bilateral and regional trade agreements. The popularity of South-South agreements is primarily related to the desire of developing countries to create a basis for further participation in the competition on the world market.
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Total votes: 4
Peer vote
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Total votes: 1
Expert vote

UE is applying measures to discriminate against or prevent access and development of exports of Community goods and services to third markets. The basic principle that governs the common commercial policy of the European Union stems from Article 3a of the Treaty on European Union, which states that the purpose of this policy is achieving an open market economy, in which competition is free. Interpretation given to this principle is that overall the degree of protectionism of the single internal market should be continuously reduced. Another provision of the Treaty is that trade policy is built on uniform principles in the field of tariffs, trade agreements, trade liberalisation, what supposes that in terms of international trade agreements or trade measures towards third parties a centralisation of decisions at community level must be achieved. However, having regard to and the existence of the principle of subsidiarity, the European Court of Justice emphasized that between the institutions Community and national states must cooperate closely in negotiating and signing agreements for international trade and, moreover, established that certain services are not covered by the policy common commercial areas, and in the field of intellectual property rights the competences are shared between the two sides. It should be mentioned that the European Union's common commercial policy has three dimensions: a) the multilateral dimension, achieved mostly within the World Organization a Trade (former GATT), which aims to promote market access rules in the context of ensuring effective global governance; b) The bilateral / regional dimension, which is reflected by the negotiated bilateral agreements and concluded by the European Union outside the WTO multilateral negotiations and through adoption specific measures with third countries or regional associations; c) the unilateral dimension, which consists in the adoption and implementation by the Union European unilateral measures as additional commercial policy instruments for the purpose ensuring political development and / or stability in line with the Union's political priorities. The most frequently encountered form of these measures is that of trade concessions granted by the European Union to third countries on the basis of an economic interest in accelerating trade with a particular region and increasing economic benefits for both sides.
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Total votes: 1
Peer vote
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Total votes: 1
Expert vote