The Expansion of the EU and International Trade

Bilateral Trade Agreements: China and Korea

Bilateral trade agreements occur as significant initiatives for the growth of economies in various nations. The China-South Korean trade pact has endeavored to deepen the strategic and cooperative partnership between the two nations. Today, China is South Korea's largest trading partner. Bilateral pacts established the U.S. in China, and South Korea has enabled the U.S. to deepen its trading ties with these Asian countries leading to an increase in trade deficits (White House, 2015). These trade pacts have established a platform for economic progress of these nations leading to increased cooperation and collaboration.

Advantages

Bilateral trade pacts are easier to negotiate based on the aspect that they only involve two nations. As a result, they can materialize quick enough to enable both the nations to benefit economically. The U.S.-China bilateral agreement has enabled the two nations to benefit economically on a large scale. U.S. exports to China, especially in the service industry accounts for the widening trade deficit in the U.S. Currently, the trade deficit of the U.S. stands at $48.3 billion, a 15.6% increase from the previous year. On the other hand, China benefits from the inflows of manufactured products such as cell phones, PCs, and other electronics amounting to $480 billion (White House, 2015).

II. Creation of jobs and opportunities for citizens with the trading pacts. Expansion of the manufacturing and service industry leads to an expanded scope of job opportunities available for individuals within the trading countries.

Disadvantages

I. Bilateral trading pacts trigger competition from bilateral agreements established between other nations. For example, the China-Russia bilateral trade has depicted some form of competition between U.S. and Russia for China's goodies. In this case, heightened political ideologies may come into play leading to competing nations for a particular nation's goodies.

II. Competition depicted between the existing countries may overshadow the gains realized between the two nations. In 2009, for example, President Obama announced the introduction of tariffs on tire imports to the U.S. of up to 35%. Later, China announced its commencement of antidumping investigations against some of U.S.'s auto parts and chicken products. In this case, elements of internal competition arise that may jeopardize some of the gains realized in trade between the two nations.

Pending Applications, Candidate Countries, or Associate Members

Kosovo is a probable candidate to join the EU as its application is still pending. Turkey completed negotiations on joining the EU. However, the EU nations are still divided on whether Turkey should join the union. Candidate nations whose applications are still pending include Iceland, Macedonia, and Montenegro. Bosnia-Hercegovina has failed to apply formally for EU membership (BBC News, 2014). Nations in line for future membership of WTO include Samoa, Montenegro, Vanuatu, and Russia. Additionally, there currently exists 26 nations that are negotiation their WTO membership and include Seychelles, Algeria, Yemen, and Ethiopia amongst others. MERCOSUR has ensued signing of agreements amongst nations that include Paraguay, Argentina, Venezuela, and Brazil in the promotion of free trade fluid movement of people, currency, and goods across nations. Current associates of MERCOSUR include Peru, Bolivia, Ecuador, Chile, and Colombia.

Advantages/Implications for trade within the EU and the United States

Today, the partnership between the U.S. and the EU occurs as the largest partnership in the world. The two economies generate over $15.6 trillion in GDP. EU's economy is slightly stronger than that of the U.S. The combination of these two economies contributes to half of the world's output. There are significant benefits emanating from the agreement established between EU and the U.S. The partnership fosters sharing of common goals, especially those endeavored to address the global challenges we face. It facilitates the realization of benefits realized from the respect for the rule of law, regulation of open markets, and respect for individuals and nations.

The immense trade ties between the U.S. and EU generates jobs for citizens of both the two trading partners. Through globalization, individuals have managed to work in different nations. Expansion of trade and investments within these blocks contributes to boosting global competitiveness and boosting market confidence. Elimination of tariffs and other trade restrictions opens ways for the flow of goods and services within and out of these trading partners.

GDP and GNP of Those Pending Countries in Joining the EU

As of 2014, Kosovo's GDP stood at $7.274 billion. Its GNP was measured at $7.4 billion in the same year. Turkey's GDP stands at $799.5 billion as of 2014 whereas its GNP stands at about $1.409 trillion (World Bank, 2014).