EU Common Commercial Policy One

¶ … EU Common Commercial Policy

One of the major aims of the European Union was the creation of a single market by amalgamating all the members of the European Union into a single entity. In attempting to reach this objective, the European Union has resorted to three approaches. The first was the defining of a common commercial policy, the next was the attempt to reduce the economic difference between the rich and poor members of the European Union and finally to stabilize the currencies of the members of the European Union. The Rome treaties of 1957 made it necessary for the European Union to have a Common Commercial Policy and a Common Agricultural Policy. Towards 1968 the European Union had brought the elimination of all tariffs and duties between the members of the European Union through a customs union. Then the members of the European Union agreed to the terms that defined uniform commercial practices in the case of trade with countries who were not members of the European Union. The Common Fisheries Policy became a reality in the 1980's. (European Union: Important Features and Policies of the EU)

Since the days of the European Common Market the European Community has had a commercial policy, which made it more than just a free trade area. The GATT trade negations gave backing to the European Commercial Policy thereby strengthening it as well as supporting the role of the European Union in making a set of rules that provided for a balanced system of international trade. The European Union happens to be the world's largest exporter $546 billion without taking account of the trade within the European Union. This makes the European Union the leader in exports in the world with a contribution of 18.8% and thereby exceeds the United States and Japan both of whom contribute to the exports of the world to the tune of 16%. The European Union intends to take the maximum advantage of growing trade especially with its largest trading areas of the world such as North America, Latin America and Asia. (Europe's Trade Policy)

The European Union has been a Community having a customs union and a common customs tariff across all the members of the European Union. The European Union took a decision to utilize trade as the means to support its close partners and in keeping with these signed preferential agreements chiefly with the Mediterranean, Central and East European and EFTA countries. This gave advantages to those countries where there was a surplus in the balance of payments. The European Union in addition provided countries in difficulty with benefits to assist development. A system of generalized preferences in the form of suspension of customs duties was established. Countries in Africa, the Caribbean and the Pacific have been the main beneficiaries of this system. Yet the European Union has made the instruments of trade protection stronger to protect the industries within the European Union from unfair trade practices by their competitors by using anti-dumping and anti-subsidy duties and safeguard clauses. (Europe's Trade Policy)

In addition the framework of the World Trade Organization with its trade barrier regulations gives the facility to challenge any steps taken by the third world countries that run contrary to the spirit of the rules of balanced trade. The European Union has taken steps to make these measures more effective by reducing the time limit for taking such decisions and also reforming the decision making process in such a manner that makes it no longer possible for a few countries to stand against the will of the majority by blocking the implementation of retaliatory measures. Instruments for countering counterfeiting permit the stoppage of copied or pirated goods to be stopped at the border. In addition the European Union has made arrangements and negotiated agreements whereby the import of some sensitive items is restricted. The basis of the Common Agricultural Policy forms part of the European trade policy. In the event of public procurement contracts as an example bids by companies within the European Union are to be given preference. Thus all trade policy measures, along with the all the other common policies help in strengthening the identity of Europe. (Europe's Trade Policy)

The GATT negotiations permitted the European Union to retain its agricultural and audiovisual policies and assisted in getting form its partners a reduction in customs duty larger than what was given to them. The World Trade Organization a part of the initiative of the members of the European Union made it possible for making sure that the quickly developing countries follow all the rules of balanced trade in all areas including intellectual property rights or the fight against dumping. The European Union and its member countries have played an important part in the World Trade Organization including the concern for environment and workers basic rights. (Europe's Trade Policy)

The Trade policy of the European Union was created with respect to the provisions in the Treaty of Rome. As a sequence to this treaty an institutional framework in the form of the common commercial policy was created to make the trade policy. Few changes have been seen in the common commercial policy since its inception, but it has evolved in scope to keep pace with the changes required as to what constitutes trade policy. The process of evolvement of the trade policy of the European Union is watched with keen interest by the United States and other major trading powers of the world, as the role of the European Union gets bigger and more assertive with regard to trade around the world. (Trade Policymaking in the European Union: Institutional Framework)

The European Union formed a customs union through the common commercial policy with regard to countries outside the European Union. This customs union meant that any and all customs duties between the members of the European Union stood abolished and that uniform customs duties would come into play for goods coming in from countries that were not members of the European Union. More importantly the European Union follows a common policy or trade policy in all its dealings with countries that are not members of the European Union. Thus the common commercial policy requires that no single European Union member enter into any kind of trade agreements with another country. In effect this means that the European Union as a whole that enters into any kind of trade agreements on behalf of any member of the European Union. The common commercial policy acts within the framework of the World Trade Organization and as such must comply with all the World Trade Organization regulations always. (a common market)

The European Union has the exclusive charge of the common commercial policy in the form of Article 133 of the EC Treaty, which was formerly known as Article 113. Based on this is the policy of customs union that have been established among the members of the European Union, with the a set of standard norms that govern any changes in tariff, the conclusion of tariff and any trade agreements with countries who are not members of the European Community and policies on import and export. The majority of the members take the decision on these matters. The Treaty of Amsterdam made changes in Article 113 whereby the Council was allowed on the basis of unanimous vote to widen the scope of the common commercial policy to international negotiations and any agreements on services and intellectual property. The Treaty of Nice further Amended Article 113 to permit any agreements to be concluded on the basis of qualified majority voting removing the requirement for unanimity. Certain exceptions were made with regard to agreements in some sectors where the responsibility would be shared between the different member states and the European Union and remain subject to unanimity in the European Union. These exceptions include trade in cultural, audiovisual and educational services. (Glossary: Common commercial policy)

The terms under Title VII that deals with the Common commercial policy Article 111 was and replaced with Article 113. Article 113 states that the common commercial policy shall be based on uniform principles especially with regard to changes in tariff duties, the conclusion of tariff and trade agreements, the reaching of uniform measures to promote liberalization, export policy and steps to protect trade by those necessary in the face of dumping or subsidies. The Commission was to submit the ways and means to the council to affect the common commercial policy. In the event of agreements with one or more states or international organizations that have to be negotiated, the Commission will make the necessary recommendations to the Council and these will authorize the Commission to begin the necessary negotiations. The Commission would then conduct these negotiations in consultation with a committee specifically set up for this purpose and appointed by the Council to help the Commission in this work and within the framework of any directives as the Council may choose to issue to it. The relevant provisions of Article 228 would come into play. (TITLE VII Common Commercial Policy)