Andrew DeCanniere Emilia Antezana Laura Armgardt Katie Lorge

October 28, 2008 BA 381

-What is a Trade Barrier

Types:
-Import duties -Import licenses -Export licenses -Non-tariff barriers to trade -Import quotas -Tariffs -Subsidies -Voluntary Export Restraints

-Economic Effect of Trade Barriers -Common Arguments

-Jobs Are Destroyed by Trade -Worker Wages Are Hurt by Trade. -National Security Is Threatened by Trade. -Special Industries with Unique and Substantial Economic Potential will not mature without Protection from Trade. -Unfair Competition Undermines the Benefits of Trade.

-Three Major International Trade Agreements

EU, NAFTA, ASEAN
http://www.youtube.com/watch?v=YVt36Q1xLNk

What is NAFTA?

Began on January 1, 1994

Between Canada the United States and Mexico

NAFTA pros and cons

What is ASEAN?

Established on August 8th, 1967

10 member countries -Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippians, Singapore, Thailand, and Vietnam

What is the EU?

27 member states

The Economic and Monetary Union (EMU): 15 member states, soon to be 16 on January 1, 2009 with the addition of Slovakia -10th Year of the Euro

German purity law In effect since 1516 Can only be called beer if ingredients are only water, barley, and hops Repealed in 1987, replaced with Protectionism against Belgium and Britain

Controversial monetary aid program Structural adjustment program Removal of all internal subsidies Jamaican milk subsidies

Common Agricultural Policy (CAP) Guaranteed minimum prices Import tariffs and quotas on products outside EU Conflict between US and EU Subsidies resulting from political/economic reasons rather than real demand from producers

Increasing demand for fuel-efficient, ecofriendly vehicles US automobile trade deficit for 2007 $97.51 billion Japanese automakers manufacturing in US factories

Honda, Toyota, and Mitsubishi all have US factories

European-style autos becoming popular Popular European vehicles not legal in US Differences in US and European safety regulations inhibiting trade

Smart

Ford

Introduced January 2008 by DaimlerChrysler Slightly longer than European vehicle 33mpg city, 41mpg highway

Fiesta Taurus Transit Connect

"The TIFA will be a platform to intensify our trade and investment relations with the ASEAN region, which collectively constitutes our fourth largest trading partner and represents one of the most rapidly growing and dynamic economies in the world." - Areas of mutual concern culminate in 3 Projects: - ASEAN Single Window - Plant health - Standardization

-Effects are more pronounced in developing economies. -Data is limited, but scope of products is broad and expanding. Industry Sectors Subject to Infringement: -Apparel - Electrical Components -Audio-visual - Personal accessories - Automotive - Pharmaceuticals - Consumer Electronics

http://www.cottingham.com.tw/c/en/news/latest-news/188.html http://www.assatashakur.org/forum/conscious-edutainment-videos-movies-tv/30335-life-debt-how-imfworld-bank-has-impoverished-jamaica-other-countries.html Trade Conflict and the US-European Union Economic Relationship, CRS Report for Congress, Raymond j. Ahearn http://www.msnbc.msn.com/id/26444467/ http://www.msnbc.msn.com/id/25811141/ http://www.msnbc.msn.com/id/13593486/ http://trade.gov/mas/manufacturing/OAAI/auto_stat_index.asp http://www.bls.gov/news.release/ximpim.htmhttp://library.thinkquest.org/06aug/00036/intltrade_barrier s.html http://www.itintl.com/ http://www.infoplease.com/cig/economics/barriers-international-trade.html http://en.wikipedia.org/wiki/Main_Page http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp http://www.aseansec.org/ http://europa.eu/index_en.htm http://news.thomasnet.com/IMT/archives/2004/01/the_pros_and_co_1.html http://www.youtube.com/watch?v=YVt36Q1xLNk