International Economic Agreements and Organizations
European Coal and Steel Community (ECSC)
Members: France, Germany, Belgium, Netherlands, Luxembourg, Italy
Purpose: Created a common market for coal and steel to foster economic cooperation and prevent future wars.
Objectives: Economic expansion, job growth, higher living standards, secure market supply, community pricing, equal access to production, modernized production, improved quality.
European Economic Community (EEC)
Purpose: Expanded the ECSC’s principles to a broader range of goods and services.
Key Features: Elimination of customs duties and trade restrictions, common external tariffs, free movement of goods, services, capital, and people, common agricultural and transport policies, protection against unfair competition, establishment of a European Social Fund.
European Common Market (ECM)
Purpose: Established an area with no internal borders, ensuring free movement of goods, services, capital, and people.
Key Features: Treaty revisions focused on institutional and policy objectives.
European Union (EU)
Purpose: Further integration and expansion of the European project, established by the Maastricht Treaty.
Key Features: Created a legal framework and institutions like the Parliament, Council, Commission, Court of Justice, and Court of Auditors. Established European citizenship. Expanded membership to include more countries.
Economic and Monetary Union (EMU) / Eurozone
Purpose: Introduced a single currency (Euro) managed by an independent central bank.
Key Features: Convergence criteria for member states, European Central Bank (ECB) with legal personality, responsible for monetary policy, foreign exchange operations, and reserves management. European System of Central Banks (ESCB) composed of the ECB and national central banks.
European Constitution
Purpose: Proposed a single European representation in international affairs, with a president and foreign ministry. (Not fully ratified)
EU Policies
- Common External Tariff: Uniform tariffs on goods imported from outside the EU.
- Trade Defense Instruments: Anti-dumping measures and other policies to protect EU industries.
- Market Access Instruments: Support for EU exporters in accessing third-country markets.
- Preferential Agreements and Multilateral Negotiations: Reducing trade barriers in international markets.
- Competition Policy: Preventing monopolies and promoting fair competition.
- Agreements and Concerted Practices: Prohibiting anti-competitive agreements.
- Abuse of Dominant Position: Addressing abuses by dominant firms.
- Mergers and Acquisitions: Reviewing and regulating mergers to prevent excessive market concentration.
- State Aid: Controlling government subsidies to avoid unfair competition.
- Agricultural Policy: Increasing productivity, ensuring fair living standards for farmers, guaranteeing food security, and providing reasonable prices for consumers.
- Consumer Protection Policy: Protecting consumer health, safety, economic interests, and rights to redress, education, and representation.
Free Trade Area of the Americas (FTAA)
Purpose: Proposed a free trade zone across the Americas, from Alaska to Tierra del Fuego, by reducing trade and investment barriers.
Objectives: Regional integration, free trade, maximizing market openness, integrating environmental policies with trade liberalization, protecting labor rights.
Principles: Strengthening the community of democracies, promoting economic integration and free trade, eradicating poverty, conserving the environment.
MERCOSUR
Members: Argentina, Brazil, Paraguay, Uruguay, and Venezuela
Purpose: Economic integration and political understanding.
Relations between MERCOSUR and the EU
Purpose: Interregional Framework Cooperation Agreement to strengthen trade, investment, and integration.
Latin American Free Trade Association (LAFTA)
Purpose: Economic integration of Latin America and the Caribbean.
Latin American Integration Association (ALADI)
Purpose: Regional and partial trade agreements among member countries.
Integration and Economic Cooperation Program (PICE)
Purpose: Increased negotiation with countries outside the region.
Treaty of Integration, Cooperation, and Development (Argentina & Brazil)
Purpose: Eliminating tariff and non-tariff barriers and creating a common economic space.
Treaty of Asunción (Creation of MERCOSUR)
Purpose: Establishing a common market with free movement of goods, services, capital, and people, a common external trade policy, and macroeconomic coordination.
North American Free Trade Agreement (NAFTA)
Members: United States, Mexico, and Canada
Purpose: Created a free trade zone to stimulate job creation, trade growth, and economic development.
Changes in the Global Economy from the 1970s
- Shift in global economic power, with rising influence of developing countries.
- Oil crises and rising international prices.
International Monetary Fund (IMF)
Purpose: Created to promote international monetary cooperation and exchange rate stability.
Bretton Woods Crisis and Oil Crises
Key Events: Increased economic activity (1968-1973), end of dollar convertibility to gold (1971), oil price shocks (1973 and 1979), inflationary pressures, and economic recessions.