Essay: Trade Agreements

Pages: 3 (991 words)  ·  Bibliography Sources: 3  ·  Topic: History - Asian  ·  Buy This Paper

International Trade

Pacific Alliance captures zeitgeist in era of 'mega' trade agreements

This article discusses a recent agreement between four Latin American countries (Chile, Columbia, Peru and Mexico) to lower tariff and non-tariff barriers and create a commercial framework that can increase and substantiate the connections and economic links between these countries. The overall objective of such an agreement is to make all four economies more competitive in the international arena, more able to compete with rising Asian economies.

The article looks in detail at the premises of such a deal, pointing out correctly that most of the large commercial blocks (the EU, the U.S., Japan etc.) have grown tired of the inconsistency of negotiations and, particularly, of the results of the latest Doha Round within the WTO. As a consequence, many of them are looking at bypassing the WTO by working out big, strategic, regional deals. Examples in this sense include the Transatlantic Trade and Investment Partnership (TTIP), between the EU and the U.S., or the Trans-Pacific Partnership.

Within that context and against this background, the article aims to place the Pacific Alliance, between the four states previously mentioned. On one hand, these countries are not isolated: they are part of the Trans-Pacific Partnership negotiations and many, if not all, have separate free trade agreement with either the U.S. Or the EU or both. So, their own commercial partnership is formed on the background of a larger, more ample context of commercial cooperation.

Second, initiatives such as the Pacific Alliance are an intelligent way of building small in order to get bigger. Rather than reaching the large multilateral trade agreements previously discussed in single-handed negotiations, another way to get there is to have smaller agreements, such as this, that could eventually be linked with others to build the whole.

Obama Highlights Need for U.S.-EU Energy Cooperation

This article focuses on a particular area of interest for the commercial relationship between the U.S. And the EU, namely the energy sector. This is a timely discussion, in the context in which Europe is depending on Russian gas for a large part of its energy needs and in which the Russians are playing a strong political hand in Ukraine and the region.

President Obama declared that including energy into the trans-Atlantic free trade deal would be a most important step in solving the energy dependency problem that the European Union has. The president emphasized that it is necessary to place this in a free trade agreement framework, because this would allow facilities in terms of export licenses for energy such as liquefied gas.

The article shows that the fact that the Europeans could change their primary source of energy (Russia supplies about 33% of the total energy needs in Europe) would make sanctions such as the ones that Europe has applied due to Russia's policy in Ukraine, more efficient.

An interesting fact that the article reveals is that, while this appears to be a helpful, outstretched hand… [END OF PREVIEW]

Free Trade Agreements Research Paper


Fair Trade Reaction Paper


Trade Issues in Economic Development Term Paper


Trade Barriers Term Paper


Trade Blocs in the Global Economy Term Paper


View 1,000+ other related papers  >>

Cite This Essay:

APA Format

Trade Agreements.  (2014, April 2).  Retrieved September 20, 2019, from https://www.essaytown.com/subjects/paper/trade-agreements/8689409

MLA Format

"Trade Agreements."  2 April 2014.  Web.  20 September 2019. <https://www.essaytown.com/subjects/paper/trade-agreements/8689409>.

Chicago Format

"Trade Agreements."  Essaytown.com.  April 2, 2014.  Accessed September 20, 2019.
https://www.essaytown.com/subjects/paper/trade-agreements/8689409.