Introduction
Earlier this year, the United Kingdom voted to leave the European Union (Hunt & Wheeler, 2016). The camp that pushed the call for the country to exit the union argued that the UK had not obtained the benefits that its citizens had hoped for. It was argued further that by belonging to the EU, the UK opened its doors to migrants who robbed UK citizens of opportunities and demanded benefits without contributing to the UK economy. The exit of the UK from the EU has raised concerns that this union is on the verge of collapse (Otaola, 2016). It is feared that other countries will also hold referenda to determine if they will continue to be members of the union. Should the citizens of these countries choose to leave the union, the union will lose the solid foundation that has ensured its survival. Despite the threat of exits by other members, the EU remains one of the strongest unions among nations that wish to enjoy the benefits of common markets and currency. The future of the European Union remains promising. The trade policies that bring the members together have a future that is particularly bright. In this paper, an examination of the future of the trade policies adopted by the European Union is offered.
EU trade policies
Before delving into the discussion on the future of the EU trade policies, it is important to set the stage by exploring these policies. The policies are explored in great detail in the discussion below.
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Fair and open trade
One of the policies that the EU has established and requires all its members to adopt regard the creation of an environment where trade can occur in a fair and open fashion (European Union, n.d). To ensure fairness and openness, the union calls on all its members to withdraw the barriers that are erected to discourage the entry of foreign products. These barriers include import tariffs that are imposed on imports. These tariffs are intended to make imports more expensive and therefore less attractive. The main objective that governments seek to achieve through the imposition of these tariffs is to protect the domestic markets from the fierce competition that imports could pose. EU member countries are required to exempt products from other EU members from the tariffs (Hanson, 2010). This requirement makes products from the EU countries cheaper compared to imports from non-EU markets. Essentially, the withdrawal of the tariffs creates an environment where the EU member countries enjoy benefits that are not made available to non members. In addition to setting up internal mechanisms that apply to members, the EU has also reached out to non-members in an effort to promote open and free trade. The union mainly does this through partnerships with such organizations as the World Trade Organization (WTO) (European Union, n.d). The main mandate of the WTO is to enhance global trade. The EU shares this mandate and this allows it to collaborate with the WTO.
Opening up markets
The EU understands that the benefits that its members enjoy from one another are not sustainable. This is evidenced by the EU’s mission to identify opportunities in new markets. This union seeks to enter into agreements with countries that are not necessarily members European Union, n.d). These agreements ensure that the citizens of all the EU member countries enjoy access to such opportunities as employment. The agreements also deliver trade benefits for the members. For example, there are trade deals that the EU has entered into that provide the products from member countries with special privileges. The union has entered into a number of trade deals with different countries. For example, the EU initiated talks with countries such as Canada and China that it hopes will culminate in an agreement (European Union b, n.d). Apart from entering into deals with individual countries, the EU also partners with other common markets. For example, the EU is in talks with the Association of Southeast Asian Nations (ASEAN) (European Union, n.d). The union hopes to secure better terms for EU products through a trade agreement with ASEAN.
Ensuring compliance
Unfair competition is one of the factors that pose a threat to global trade. There are countries which engage in unfair practices such as currency devaluations in an effort to boost their exports. Countries such as China have been accused of engaging in devaluation in a bid to make its products more attractive (Whitesides, 2015). The EU has made it clear that it is opposed to unfair trading practices. The union demands that all its members comply with the laid down procedures and regulations. For instance, no member may impose unfair tariffs on the products of another member country. In addition to demanding compliance from its members, the EU also works with other countries and common markets to ensure that all countries observe the rules of fair play. One of the initiatives that the EU has sponsored seeks to remove the barriers that hinder exportation (European Union, n.d). The EU also advocates for businesses in member countries so that they are provided with access to markets. Additionally, the union is committed to tackling piracy and counterfeiting (European Union, n.d). These are some of the challenges that hinder free and fair trade. The other approach that the union has adopted to ensure compliance is securing agreements and commitments that provide the member countries with opportunities for investment.
Sustainable development through trade
One of the agendas that the European Union continues to pursue is the eradication of poverty (European Union, n.d). The union seeks to employ trade in its efforts to redeem those living in poverty across the globe. The union ensures that poor nations are not subjected to restrictions that hamper their efforts to end poverty. The EU member countries make sure that their doors are widened to allow unrestricted entry for products from poor countries (European Union, n.d). Apart from its commitment to poverty eradication, environmental conservation is another element of the trade policy that the EU has adopted. The member countries pledge to combat global warming through responsible and environmentally-conscious trade practices (European Union, n.d). Campaigning for the rights of employees and safeguarding human health are other policies that the EU countries have adopted. The EU ensures that the products that its members trade in do not violate health standards and do not pose a risk to the safety of consumers. Given the elaborate policies that the EU has established, it is fairly easy to understand why this union is regarded as the model for best practices.
The future of the EU trade policies
In an earlier discussion, it was mentioned that the future of the EU trade policies is promising and bright. There are a number of factors that are responsible for this reality. In the discussion below, the factors that provide the future of the trade policies with promise are explored.
Factors enhancing future
Support from members
It is usually said that there is strength in numbers. This applies to the European Union. The strength that the union has enjoyed can be attributed, at least in part, to the support that it receives from its members. Most members of the EU are committed to the values and policies that the union stands for. Germany is one of the staunchest and most committed members of the union (Goulard, 2016). At a time when confidence in the union is declining, Germany has come out to express strong support for the EU. German Chancellor responded to the decision by the UK to leave the union by assuring the remaining members and the world at large that the union remains steady and strong. Germany is not isolated in its strong support and commitment to the European Union. Given the strong support and confidence that the union receives from its members, it can be expected that the union will survive the challenges that it faces today and that it will have a promising future.
Desire for membership
There is no stronger indication of the promise that the future holds for the members of the European Union than the interest that it has received from countries that wish to join the union. Turkey is one of the countries that are involved in talks that could see it become a member of the union. In addition to Turkey, Macedonia, Serbia, Montenegro and Albania are other countries that have began ascension talks (BBC, 2014). It is hoped that these countries will offer the EU even greater strength. When these members finally join the union, they will be required to uphold the values and adopt the practices that the EU continues to stand for. For example, the prospective members will be required to spare the products from other EU members of the tariffs that are levied on imports. That the EU’s future is secure is difficult to refute given the desire by the countries mentioned above to become members. This desire is a resounding vote of confidence in the capacity of the union to deliver immense benefits for all of its members.
Model for other unions
“ Imitation is the best form of flattery.” This saying applies perfectly to the European Union. This union is regarded as the best model. Economic integration is one of the phenomena that have revolutionized global trade. More and more nations are joining forces with their neighbors for the purposes of boosting trade and enjoying the benefits that economic integration delivers (Fry, 2011). While the different unions and common markets truly desire to deliver benefits for member countries, there are many that have been ineffective. The EU stands apart from other unions as it has managed to weather challenges and remain effective and relevant. The EU has become a model for other nations that desire to form a union with other countries (Cameron, 2010). There are several values, philosophies and practices that have allowed the EU to achieve the admiration of the world. The strong political leadership that the union enjoys is one of the factors that have provided it with strength (Cameron, 2010). Such nations as France have provided stable leadership that have enabled the union to remain strong. The respect for the sovereignty of individual member countries is another factor that has contributed to the strength of the EU. Each of the members recognizes the independence of other members (Cameron, 2010). No nation meddles in the internal affairs of other members. This ensures that the members relate in a harmonious and mutually-beneficial manner. All these factors have worked together to elevate the EU to the position of strength that it occupies today. The fact that the rest of the world looks to the EU for guidance on economic integration is clear indication that the trade policies that the union has adopted are secure. In the future, the trade policies promise to remain relevant and effective.
Extent and scale of trade
The European Union is recognized as the world’s largest trading block. The union is responsible for 20% of all trade that occurs in the globe (European Union, n.d). This amount of trade is indeed massive and it highlights the important role that the union and its members play in defining the direction that the globe takes as regards trade. This union brings together over 20 countries which trade huge volumes of products (European Union, n.d). The member countries also trade in a wide range of products. These products include agricultural goods, fuels and products that have been manufactured. The EU countries account for a significant portion of global trade (European Union, n.d). The strength of the EU on the global stage can be attributed to the policies that it has adopted. This union is simply too big and too important to fail. It can therefore be argued that the union will continue to gain strength. The position of the union will remain uncompromised and the policies that its members have adopted will continue to define the direction of global trade as the world moves into the future.
Global influence
In an earlier discussion, it was mentioned that the European Union supports the efforts of the World Trade Organization. This organization is charged with the mandate of directing global trade (Narlikar, Daunton & Stern, 2012). It sets out guidelines and rules that are intended to ensure that all members trade fairly. The EU is one of the most influential members of the WTO. The union exploits its influence to drive an agenda that delivers benefits to its members. For example, the EU is a staunch opponent of counterfeiting (European Union, n.d). The WTO is also committed to combating counterfeiting. Given that these two strong organizations pursue common agendas, it can be expected that the trade policies adopted by the EU member countries will remain alive in the future. Apart from the WTO, the EU has also partnered with such organizations as ASEAN which pursue economic benefits for their members. The EU has essentially extended its presence beyond Europe. It exerts influence that presents implications for the entire globe. It can be argued that the EU has become too important to be dispensed with. Assuming that this argument holds true, the world should expect to see a stronger and more powerful force in the global economy.
Nature of policies
The very nature of the policies that the EU has embraced ensures that they will remain relevant and effective. The policies that the union has adopted have been explored in an earlier discussion. These policies are extremely popular among the citizens of the member countries. One of the policies that the union has adopted regards the movement of labor. The citizens of member countries are free to visit other member countries without necessarily requiring a visa (European Union, n.d). The visa-free travel has allowed members from different countries to access opportunities for such issues as study, residency and employment. Poorer nations have especially benefited from the withdrawal of the travel restrictions that were in place in previous years. Such countries as Romania send thousands of their citizens to work in countries like Britain (Parfitt, 2015). The quality of life and the standards of living in the poorer nations have improved significantly. The benefits that the trade policies have delivered have allowed the EU to win the hearts of its people. Since the EU policies are popular and supported by the masses, it is reasonable to expect that these policies do not face any formidable threat and are therefore likely to survive into the future.
Threats to the future of the policies
While it is true that the EU is solid, there are some factors that threaten its stability and future. These factors are examined in the discussion below.
Discontent from some member countries
It has been mentioned in the discussion above that the European Union receives strong support from its members. This is still true but there have been murmurs and complaints from some members who believe that they shoulder a disproportionate burden. Before it exited the union, the UK lamented that it was receiving too many migrants from other EU countries (Lee, 2015). The camp that urged UK residents to vote for the country to leave the union complained that the EU had failed to deliver any real benefits for the country. The UK is not alone. There are members who have raised concerns about the direction that the union is taking. Turkey has been identified in an earlier discussion as one of the countries that are in ascension talks. The members have protested that the admission of Turkey would amount to a violation of the principles and the values that guide the practices of the union (“Turkey and the European”, 2016) . Turkey has faced accusations that it muzzles the press and that its government has carried out human rights abuses. The EU has historically championed for human rights and press freedom. This means that the protests by EU members against Turkish membership are valid. If the EU admits Turkey into the union, it runs the risk of losing the support of its existing members. This would erode the strength and effectiveness of the trading policies as the union heads into the future.
The threat of mass exit
The United Kingdom is the first member of the European Union to vote to leave the union. The departure of the UK has raised fears that other nations could hold referenda to determine their future with the EU. The Netherlands is one of the countries that may leave the union (Owen, 2016). The country has witnessed the emergence of anti-immigrant sentiment that could force it out of the union. Such politicians as Geert Wilders who supports an anti-immigrant agenda have promised to call for a vote that would allow the Dutch people to sever ties with the EU. France, Italy and Austria are other countries which could opt out of the union (Owen, 2016). The desire for an exit from the EU in these countries has been fuelled by a political movement that is opposed to immigration. It is highly unlikely that the political forces push for the countries mentioned above to leave the EU will be successful. However, it must be recognized that these forces pose a real threat to the EU. The policies that the EU has adopted to improve trade could lose their effectiveness and relevance in the future if the member countries decide to withdraw from the union.
In summary, the European Union is one of the strongest trading blocs in the globe. This union has advocated for trade practices that present benefits for its members. These policies include fair trade, free movement of labor, compliance with regulations and sustainable trade practices. These policies promise to remain relevant and effective as the union moves into tomorrow. The factors that offer the policies increased strength include the strong support that the union enjoys from its members and the immense influence that the union wields. Additionally, the nature of the policies and the and the extent of the trade that EU member countries are involved in serve to provide strength to the policies. To conclude, it is important to offer a definitive position on the future of the EU trade policies. It is true that these policies face threats that could compromise the trade policies that have been adopted. The discontent from some members and the possibility of members exiting en mass are among the threats that the EU needs to address to guarantee the survival of its trade policies. While the threats that the policies face are real, it must be noted that there are many factors that enhance these policies. Therefore, it can be confidently expected that the EU trade policies have a bright future. To safeguard this future, the EU member countries need to renew their commitment to the values that the union stands for.
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