Scientific Advisor: Kozmenko A.V., Language Advisor: Burbak O.F., Chernivtsi Trade and Economics Institute KNTEU
Sectoral features of trade policy of the European Union
The European Union is a unique entitle that has no analogues in history and is the result of evolution of international politics. Due to the efforts of the EU member-countries their mutual economy is growing thus increasing the volume of foreign trade. The EU is perceived as the zone of political stability and supremacy of law ensuring the exchange of human capital, ideas, knowledge and cultural values. The EU is among the leaders in international trade, providing the products that are concentrated increasingly in high value segments of the economy such as automotive industry, shipbuilding, textiles and clothing industry, agriculture and some others. It is common knowledge that trade policy is a complex of measures( instruments) that are accepted by the leading bodies of certain politically integral economic entities for adjusting mutual relation between economic subjects in the field of trade [1]. In its general sense trade policy covers not just trade in goods, but also services, commercial aspects of intellectual property and foreign direct investment. The EU trade policy is set down in Article 207 of the Treaty on the Functioning of the European Union. The trade policy of the EU is characterized by specific features on the level of the country, region and economic sector. The objective necessity for sectorial differentiation of trade policy is stipulated by the system of internal and external factors of economic, political and historic nature. Such approach cause the division of definite commodities and their groups into sensitive, semi- sensitive and non-sensitive. The most vulnerable forget for criticism is agricultural policy that bears a distinct protectionist characters. The four basic mechanisms of its realization that directly influence the interests of exporters of agricultural produce from other countries are: 1) the system of favorable support; 2) protection against agricultural imports; 3) export subsidies; 4) systems of profit guarantee [3]. In 2010 the EU exported € 91 billion worth of agricultural products ( second in the world after the USA) and imported € 89 billion worth of foodstuffs (the world leader). The analysis of the structure of the EU agricultural export reveal the predominance of processed agricultural products with high added value that account for 60% of the overall export of agricultural products. The leading position of the EU in agricultural production and trade in agricultural produce is largely due to the special terms for the developments of agriculture envisaged by the Common Agricultural Policy of EU [3]. Adjustment of foreign trade rules in textiles and clothing industry both at the level of the GATT/ the WTO and the EU serves an example of transformation of sensitive group into non-sensitive group of commodities through expanding the WTO general rules to still another group of products. The EU Commission worked out a set of measures aimed at adapting the European producers to the new conditions of competition in the internal market. They envisage gradual reduction in the member of quotas and increase in their volume, more effective protection of intellectual property rights in industries, improvements in education, training and employment, wider access of small and midsize business to crediting, further development of scientific researches and introduction of innovations, etc. The European shipbuilding industry is the global leader in the production of cruise ships. It is a very important and strategic industry for a number of member-countries of the EU and for the EU of the whole. In 2009 the EU exported € 11,9 million worth of shipbuilding products while import in this segment reached the amount of € 14,7 million. The shipbuilding sectors is strongly cyclical and directly affected by economic and financial fluctuations [3]. Shipbuilding industry is practically the only economic sectors with insignificant protection against dumping. The EU Commission has developed anti-dumping instruments to shield EU shipbuilding producers from unfair pricing practices of foreign firms: shipbuilders receive additional financing that accounts for the level of unfair pricing. The evolution of trade policy in the sector of passenger cars during the last 25 years serves an example of establishing a specific international market with voluntary export limitation set up at its very start. Thus, the EU’s trade policy is focused on liberalization of the terms of export/imports, fair and equal treatment for all the participants, gradual tariff reduction, and removal of barriers that restrain international exchange. At the same time the European Commission proposes to modernize the EU’s trade defense instruments to tackle unfair competition from dumped and subsidized import and to protect particular sensitive sectors and spheres of internal market through customs and non-tariff limitations. Selected bibliography: 1. Гусєв А.А. Політика Європейського Союзу // Інститут порівняльної політології РАНЕЙ. – М., 2004. 2. Рут Франклін Р., Філіпенко А. Міжнародна торгівля та інвестиції. – К.: Основи, 2008. – 750 с. 3. Шнирков О. Політика Європейського Союзу у сфері міжнородної торгівля: Особливості сучасного етапу[Електронний ресурс]. – Режим доступу: http://soskin.info/ea/2004/5/20040502.html
