1. Free trade agreements : the EU
Anne-Sophie
Yaya
Peter
Yoshi

2. OVERVIEW
• History
• EU free trade agreement
• The EU is threat to the US?
• The EU v.s NAFTA
• The latest news
• Conclusion

3. HISTORY
• Construction of the EU
–1950: Foundation of the European
Coal and Steel Community.
–1957: Creation of the
European Economic
Community (EEC)

4. HISTORY
–1985: Signing of the Schengen
agreement = elimination of border
controls.
–February 7, 1992:
The « European Community »
became the
« European Union ».

5. HISTORY
–January 1, 1993: The single market and
its four freedom are established.

6. HISTORY
• Expansion of the EU

7. HISTORY
• The euro
–January 1, 1999: Introduction of the
euro in 11 countries  commercial
and financial transactions
–January 1, 2002: Euro notes and coins
arrive in 12 countries

8. HISTORY
• Other relevant information
–2004: The 25 EU countries signed a
Treaty establishing a European
Constitution
–2005: Citizens in both France and the
Netherlands voted « No » to the
Constitution in referendums

9. Q: Do you know anything about the
EU free trade agreement?
• Interviewer: 10 people (Pass by & Depth)
• Date: 2/9-2/11

10. Free Trade Agreement
• Economic Union
• Customs unions
• Single market
• Currency Union

11. Common Agricultural Policy (CAP)
• System
– European Union agricultural subsides and program.
– 1957, Treaty of Rome (Common Market)
• Purpose
– Price support mechanisms
• guaranteed minimum prices
• import tariffs
• quotas on certain goods from outside the EU.

12. • Aim
– provide farmers with a reasonable standard of
living.
– consumers with quality food at fair prices.
– to preserve rural heritage.
• Objectives

13. • Criticism
– Anti-development
– Oversupply and redistribution
– Artificially high food prices
– Environmental problems

14. Common Fisheries Policy
• Fisheries policy .
• Allow to catch what amounts of each type of f
ish.
• Encourage the fishing industry by various mar
ket interventions.

15. Euro
• Official Currency of the euro zone.
• 17 countries use.

16. Q:Does the EU pose a threat to the US?
2
8
EU Threat to US?
YES
Yes
YES NO
-Strong and competitive companies
-Fast innovation
-Materials, industries
-Different policies
-EU and US are partners
-Not one nation

17. Q:Does the EU pose a threat to the US?
27 Nations 1 Nation
310 Million
People
512 Million
People
30% of
World GDP
GDP No.1
EU US

18. NAFTA
North American Free Trade Agreement
So Cheap
Gene Modify Cone
・ Mexico can’t develop
agriculture & industry
because of over-import.
Also, car & electric

19. Mostly EURO
US $, Peso
CAD $
Help
poor country
Don’t have to
So UP So UP
UP UP
Spread
Different
Among 3 countries

20. Latest Movement
7 / 1 / 2011 Start
Coming soon
1.2 billion
population
market

21. Korea’s Decreased Export Items in Free Trading Lists
Division
(Base Rate%)
Export (%, Million Dollar) Variation(%, Million Dollar)
Jul – Dec, 2010 Jul – Dec, 2011 Percentage
change
Amount of
DecreaseResult Rate Result Rate
Ship(0) 6,077 24.2% 3,181 12.7% 47.6% 2,895
Wireless Telephone(0) 1,499 6.0% 629 2.5% 58.1% 870
Flat-Panel Display(0) 2,779 11.1% 2,011 8.0% 27.6% 768
Total 12,323 49.1% 6,835 27.2% 44.5% 5,448
Korea’s Increased Import Items in Free Trading Lists
Division
(Base Rate%)
Import (%, Million Dollar) Variation(%, Million Dollar)
Jul – Dec, 2010 Jul – Dec, 2011 Percentage
change
Amount of
IncreaseResult Rate Result Rate
Airplane(0) 12 0.1% 974 4.0% 8,328.2% 963
Naphtha(0) 60 0.3% 253 1.0% 325.6% 194
Scrap Metal(0) 188 0.9% 352 1.4% 87.6% 165
Total 391 1.9% 1,928 7.9% 393.1% 1,539
European Union – South Korea Free
Trade Agreement

22. Korea’s Increased Import Items in in Preferential duty Lists
Division
(Base Rate%)
Import (%, Million Dollar) Variation(%, Million Dollar)
Jul – Dec, 2010 Jul – Dec, 2011 Percentage
change
Amount of
IncreaseResult Rate Result Rate
Crude Oil(3) 0 0.0% 337 1.4% % 337
Automobile(8.0) 1,093 5.4% 1,359 5.6% 24.3% 266
Parts of an auto(8.0) 745 3.7% 881 3.6% 18.3% 136
Total 2,598 12.8% 3,559 14.6% 37.0% 961
Korea’s Increased Export Items in Preferential duty Lists
Division
(Base Rate%)
Export (%, Million Dollar) Variation(%, Million Dollar)
Jul – Dec, 2010 Jul – Dec, 2011 Percentage
change
Amount of
IncreaseResult Rate Result Rate
Automobile(5~10) 1,520 6.1% 2,935 11.7% 93.1% 1,415
JetFuelandKerosene(4.7) 155 0.6% 774 3.1% 339.0% 619
Partsofanauto(1.7~19) 1,740 6.9% 1,981 7.9% 13.8% 241
Total 4,191 16.7% 6,834 27.1% 63.1% 2,613
European Union – South Korea Free
Trade Agreement

23. European Union – India Free Trade
Agreement

24. Anti-FTA Protesters

25. ・ Being good for economic activity
is…
・ Expanding employment opportunities
・ Decreasing domestic products
・ Causing deflation → deterioration
FTA
・ Losing job of some parts of people in domestic
・ Keeping peace among countries
・ Can’t be self-sufficiency in some field
merit
demerit
Conclusion (From interview)

26. ・ Continue to increase FTA
・ Regulate amount of import in chief industries
・ Make the penalty for the country like Greece
for example : Withdraw from EURO
Give EU the political initiative until recovered
・ Help poor countries by rich countries
Conclusion (including suggestion…)

27. Thank you for your kind attention.