Foriegn Trade

By Robin Kapoor Deepak Kumar Sourabh Garg Vikas Sharma Tushar Garg

About American economy Currency – GDPGDP growth – Inflation –

Dollar 13.81 trillion (2007) 2.1 % 5.6% (June 2007 to

June 208) Population below poverty line – 12.5% Unemployment – 6.1% ( august 2008) Exports $1.149 trillion f.o.b. (2007 est.) Imports $1.985 trillion c.i.f. (2007 est.) Largest economy in the world Stable overall GDP growth rate History

European Union The European Union (abbreviation: EU) is an

economic and political union of 27 member countries in Europe, started in 1957 as the European Economic Community (EEC). It has created a common economic area with Europe-wide laws allowing people to move and trade in other EU countries almost like it was their own. Fifteen of these countries also share the same money: the euro.

European Union Population: GDP (PPP):

710,000,000 US$ $12.82 trillion

(2006) GDP/capita (PPP) : $18,056 GDP /capita (Currency) : $18,935 Annual growth of per capita GDP: 2.8% (2006) Income of top 10%: 27.5% Millionaires: 2.6 million (0.3%) Unemployment: 8.8% (2006) Estimated female income: 56.7% of male

What has Europe done? Safer and Cheaper Flights Student Exchange Programs The Single Market Protection of Intellectual Property Peace Regional Funds The Euro Cheaper and Better Phone calls Consumer Protection A Healthier Europe Environmental Protection Equal Opportunities - Against Discrimination External Trade Click or details

NAFTA • no internal tariffs among members, but each

country imposes its own external tariffs to the third country. • The largest trading bloc in terms of GNP • A good example of trade diversion (production shifted from Asia to Mexico)

Provisions of NAFTA Elimination of tariffs Harmonization of trade rules (subsidies,

antidumping, safety standards) Liberalization of capital movement (FDI) Protection of intellectual properties Dispute settlement Provisions on labor and environmental standards

Economic Effects of NAFTA Trade Trade among members increased faster than

trade with the rest of world

Investment Mexico is the main beneficiary (FDI not only

from the U.S. and Canada, but also from other countries)

Employment Difficult to measure because of too many

confounding variables Overall employment effect in the area including the U.S. has been positive

NAU The North American Union (NAU) is a

theoretical continental union of Canada, Mexico and the United States similar in structure to the European Union, sometimes including a common currency called the Amero. Its true aim was to expand the North American Free Trade Agreement (NAFTA) into a North American Union analogous to the European Union (EU), with open borders and a common currency among other features, was being made by the fall of 2006,

Comparing both There are substantial similarities between the

US Guidelines and the EU's TTBE and Guidelines. Both approaches create safeharbors and both identify naked price fixing, output restraints, and market division among horizontal competitors as per se unlawful or hardcore restrictions. Both weigh the procompetitive benefits and the anticompetitive effects when evaluating most licensing restrictions. And under both regimes, responsibility for assessing the legality of contractual agreements will rest in the first instance with the licensing parties

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