International Trade Barriers

1
International Trade Barriers

• Andrew DeCanniere
• Emilia Antezana
• Laura Armgardt
• Katie Lorge

October 28, 2008 BA 381
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International Trade Barriers

• -What is a Trade Barrier
• Types
• -Import duties -Import quotas
• -Import licenses -Tariffs
• -Export licenses -Subsidies
• -Non-tariff barriers to trade -Voluntary Export
  Restraints
• -Economic Effect of Trade Barriers
• -Common Arguments
• -Jobs Are Destroyed by Trade
• -Worker Wages Are Hurt by Trade.
• -National Security Is Threatened by Trade.
• -Special Industries with Unique and Substantial
  Economic Potential will not mature without
  Protection from Trade.
• -Unfair Competition Undermines the Benefits of
  Trade.
• -Three Major International Trade Agreements
• EU, NAFTA, ASEAN

3
North American Free Trade Agreement

• What is NAFTA?
• Began on January 1, 1994
• Between Canada the United States and Mexico
• NAFTA pros and cons

4
Association of Southeast Asian Nations

• What is ASEAN?
• Established on August 8th, 1967
• 10 member countries
• -Brunei Darussalam, Cambodia, Indonesia, Laos,
  Malaysia, Myanmar, Philippians, Singapore,
  Thailand, and Vietnam

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European Union

• What is the EU?
• 27 member states
• The Economic and Monetary Union (EMU)
• 15 member states, soon to be 16 on January 1,
  2009 with the addition of Slovakia
• -10th Year of the Euro

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Reinheitsgebot

• German purity law
• In effect since 1516
• Can only be called beer if ingredients are only
  water, barley, and hops
• Repealed in 1987, replaced with
• Protectionism against Belgium and Britain

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The IMF and Trade Barriers

• Controversial monetary aid program
• Structural adjustment program
• Removal of all internal subsidies
• Jamaican milk subsidies

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The EU and Agricultural Trade Barriers

• Common Agricultural Policy (CAP)
• Guaranteed minimum prices
• Import tariffs and quotas on products outside EU
• Conflict between US and EU
• Subsidies resulting from political/economic
  reasons rather than real demand from producers

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Automotive Industry

• Increasing demand for fuel-efficient,
  eco-friendly vehicles
• US automobile trade deficit for 2007 97.51
  billion
• Japanese automakers manufacturing in US factories

• Honda, Toyota, and Mitsubishi all have US
  factories

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Safety Barriers

• European-style autos becoming popular
• Popular European vehicles not legal in US
• Differences in US and European safety regulations
  inhibiting trade

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Smart and Ford

• Smart
• Introduced January 2008 by DaimlerChrysler
• Slightly longer than European vehicle
• 33mpg city, 41mpg highway

• Ford
• Fiesta
• Taurus
• Transit Connect

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The Thai Textile Clothing Export
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US-ASEAN Trade Relations
"The TIFA will be a platform to intensify our
trade and investment relations with the ASEAN
region, which collectively constitutes our fourth
largest trading partner and represents one of the
most rapidly growing and dynamic economies in the
world."
- Areas of mutual concern culminate in 3
Projects - ASEAN Single Window - Plant
health - Standardization
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Piracy as a Barrier on Global Trade

• -Effects are more pronounced
• in developing economies.
• Data is limited, but scope of
• products is broad and expanding.

• Industry Sectors Subject to Infringement
• Apparel - Electrical Components
• Audio-visual - Personal accessories
• Automotive - Pharmaceuticals
• - Consumer Electronics

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References

• http//www.cottingham.com.tw/c/en/news/latest-news
  /188.html
• http//www.assatashakur.org/forum/conscious-edutai
  nment-videos-movies-tv/30335-life-debt-how-imf-wor
  ld-bank-has-impoverished-jamaica-other-countries.h
  tml
• Trade Conflict and the US-European Union
  Economic Relationship, CRS Report for Congress,
  Raymond j. Ahearn
• http//www.msnbc.msn.com/id/26444467/
• http//www.msnbc.msn.com/id/25811141/
• http//www.msnbc.msn.com/id/13593486/
• http//trade.gov/mas/manufacturing/OAAI/auto_stat_
  index.asp
• http//www.bls.gov/news.release/ximpim.htmhttp//l
  ibrary.thinkquest.org/06aug/00036/intltrade_barrie
  rs.html
• http//www.itintl.com/
• http//www.infoplease.com/cig/economics/barriers-i
  nternational-trade.html
• http//en.wikipedia.org/wiki/Main_Page
• http//www.fas.usda.gov/itp/Policy/nafta/nafta.asp
  
• http//www.aseansec.org/
• http//europa.eu/index_en.htm
• http//news.thomasnet.com/IMT/archives/2004/01/the
  _pros_and_co_1.html
• http//www.youtube.com/watch?vYVt36Q1xLNk