A Free-Trade Agreement Between the US and Europe

1517 WordsJul 11, 20187 Pages
Global Perspectives a) Sino-Russian China and Russia are major trading partners specifically in areas like capital, resources, technology and manpower.They are aiming to increase bilateral trade between them; however with the economic downturn they might face some challenges in doing so. b) Chile and Argentina Argentina is one of the top vegetable oil producers in the world-due to low domestic consumption and high productivity- with Chile as a main buyer. After a tariff reclassification in 1999, the Chilean price band system (PBS) resulted in higher customs duties of up to 64.41%, thus violating the limit set at 31.5%. As a result, this issue was submitted to the WTO . c) U.S and Europe A free-trade agreement between the United…show more content…
Unfortunately, several factories in Argentina had to close down due to the collapse of prices. Concerning the third case,numerous food and agricultural groups in the U.S were concerned that a free-trade agreement would not include their industry . Moreover, a free trade agreement would reduce/eliminate already low tariffs and synchronize regulations governing industries like pharmaceuticals and auto parts. National Perspectives Causes The main cause for a decrease in trade, a hike in prices for imported goods like rice and pulses (due to shortages) and for Dubai increasing air transport availability to other countries like Texas is due to the Great Recession that hit the world in 2008. Although Dubai wasn’t part of the crisis directly, we were affected by the repercussions of the international economic system as U.A.E plays an active and influential role in international economic relations. Consequences There is low confidence in the consumer market, which has led to a decrease in investment and therefore a decrease in trade. Moreover, India and Pakistan would seek to minimize the deficit in their country; therefore by banning exports in their country, they would reduce the amount of money leaving their country. However, for U.A.E, it would mean a shortage in supply for rice and pulses, which would ultimately lead to a hike in price. Therefore in order to be able to afford these imports, U.A.E would
Open Document