A Brief Note On The European Union ( Eu )

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1. Introduction Agriculture is one of the vital sectors in terms of economic development and a number of countries tend to rely on their agriculture business for national economies; thereby, it is also one of the most sensitive sectors in the world. Under this circumstance, the European Union (EU) is the biggest food supplier. Since the establishment of European trade bloc in the 1950s, the EU has been playing a significant role in international trade. Particularly, this on-going widened and deepened union has contributed to both internal and external development through trade liberalisation in international arena. Nevertheless, it has not fully opened the markets and severely protected the agricultural sector with the common agricultural…show more content…
These are objectives of this paper: the next section will provide a theoretical framework with examining trade liberalisation and protectionism, and agricultural liberalisation and food security at international trade; after that, it will examine the trend in agri-food trade and CAP reforms. 2. Lit./Policy Review 2-1. Trade liberalisation and protectionism In the capitalised world, the participants are likely to open their markets in order to potentially promotes consumption efficiency as well as productivity; particularly, under perfect competition, trade liberalisation may enable economic welfare to maximise (Balassa, 1962: 59). Due to open markets, reallocation may contribute to allow more people to access sufficient sources to live. Indeed, it is speculated that once poor countries assimilate trade liberalisation in appropriate conditions, they can enhance economic and social performances (Singh, 2013). Thus, trade liberalisation can contribute to comparative advantage and national industries tend to be specialised. This leads to a rise in average productivity through the reallocation of productive resources from less to more efficient firms; consequently, economic welfare can be increased through specialisation (Apolte and Möller, 2010: 2; Vancauteren and de Frahan, 2011: 484). In the long run, trade liberalisation can prosper national economy. Nonetheless, although trade liberalisation can have some positive
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