The Pros And Cons Of International Trade

830 Words4 Pages
Most economists find common ground for agreement when the subject comes to the value of international trade. Yet, the specifics of the actual policies and trade barriers have been an issue long debated domestically and between governments. Trade barriers are policies and legislation adopted by a nation’s government to restrict the flow of trade with other nations and protect its domestic industries and companies from foreign competition. Trade Barriers can take the form of tariffs (taxes) or be of the non-tariff type. Ever since the period following the Second World War, the world has made an attempt to lower tariffs and import restrictions and to liberalize international trade. The General Agreement on Tariffs and Trade (GATT) was implemented…show more content…
Germany has long been a supporter of low trade barriers and consequent free trade. The high levels of growth and employment in Germany are largely dependent on globalization. The European Commission has positioned its common economic goal at Trade for All. It wishes to further open up markets and assist European Countries as they enter foreign markets. Being a member of the WTO, the EU has always tried to reduce trade barriers and encourage free and fair global trade through multilateral negotiations. The EU has a large number of free trade agreements with a host of different countries (in Eastern and Central Europe, the Mediterranean region, Turkey, Mexico). It also has Economic Partnership Agreements (EPAs) with a wide range of countries in Africa, the Caribbean and the Pacific region (ACP countries) that are geared towards sustainable development and regional integration. All of these agreements are completely in line with the aims and regulations of the World Trade Organization and have been designed to be region…show more content…
The TTIP is expected to increase employment as well as development for both the parties. TTIP will be especially beneficial for Germany as 99% of its companies and small and medium enterprises and can almost never afford a second standard certification from the USA. The TTIP will also set the standards for future trade agreements between other nations as future agreements are expected to be focused on standards and regulations. Once implemented, the TTIP will boost up the world economy as both the EU and US rely on intermediate and raw products from third
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