11. Vicard V. Determinants of successful regional trade agreements. Econ Lett. (2011) 111:188-90. doi: 10.1016/j.econlet.2011.02.010 The EU Free Trade Agreement with South Korea came into force on 1 July 2011 and EU Trade Commissioner De Gucht called it ”the most ambitious trade agreement ever concluded by the EU”. The agreement is the EU`s first trade pact with an Asian country and will largely eliminate tariffs between South Korea and its European partners. EU exports are expected to increase by 19 billion euros per year. However, while the agreement underlines the signatories` commitment to labour and environmental standards, concerns have emerged about the real potential for sustainable development under the pact. Japanese and German car companies are concerned about maintaining competitiveness with cheaper South Korean cars and South Korea is open to the growing influence of multinationals. (International Centre for Trade and Sustainable Development) With the enlargement of the EU, it will continue to gain economic and political strength, in addition to increased global competitiveness. If it looks inside and takes protectionist measures, American companies could be at a disadvantage. IT is possible that EU Member States will buy more products from each other at the expense of non-member companies.
On the other hand, an economically viable Europe can mean more imports. And further integration of EU Member States, which creates a number of standards and rules, can make the export process less complex. Government trade policy can influence your business by facilitating or making cross-border trade easier. 4. Baier SL, JH Mountain Beach. Do free trade agreements really increase international trade among members? J Int Econ. (2007) 71:72-95. doi: 10.1016/j.j.j.j.j.2006.02.005 Foreign bureaucracy or non-tariff barriers, such as import licensing requirement.B s, have also prevented small businesses from exporting. Large companies often have either the resources to recruit consultants or the internal know-how available to overcome these sometimes hidden barriers. Not small businesses. Eliminating the confusing bureaucracy through trade agreements puts small businesses on a level playing field and is better positioned to develop internationally.