Andrew DeCanniere

Emilia Antezana
Laura Armgardt
Katie Lorge

October 28, 2008

BA 381
-What is a Trade Barrier
Types:
-Import duties -Import quotas
-Import licenses -Tariffs
-Export licenses -Subsidies
-Non-tariff barriers to trade -Voluntary Export Restraints

-Economic Effect of Trade Barriers

-Common Arguments
-Jobs Are Destroyed by Trade
-Worker Wages Are Hurt by Trade.
-National Security Is Threatened by Trade.
-Special Industries with Unique and Substantial Economic Potential will not
mature without Protection from Trade.
-Unfair Competition Undermines the Benefits of Trade.

-Three Major International Trade Agreements

EU, NAFTA, ASEAN

http://www.youtube.com/watch?v=YVt36Q1xLNk
 What is NAFTA?

 Began on January 1, 1994

 Between Canada the United

States and Mexico

 NAFTA pros and cons

 What is ASEAN?

 Established on August 8th,

1967

 10 member countries
-Brunei Darussalam,
Cambodia, Indonesia, Laos,
Malaysia, Myanmar,
Philippians, Singapore,
Thailand, and Vietnam
 What is the EU?

 27 member states

 The Economic and

Monetary Union (EMU):
15 member states, soon to
be 16 on January 1, 2009
with the addition of
Slovakia
-10th Year of the Euro
 German purity law
 In effect since 1516
 Can only be called “beer” if ingredients are
only water, barley, and hops
 Repealed in 1987, replaced with
 Protectionism against Belgium and Britain
 Controversial monetary aid program
 Structural adjustment program
 Removal of all internal subsidies
 Jamaican milk subsidies
 Common Agricultural Policy (CAP)
 Guaranteed minimum prices
 Import tariffs and quotas on products outside
EU
 Conflict between US and EU
 Subsidies resulting from political/economic
reasons rather than real demand from
producers
 Increasing demand  Honda, Toyota, and
for fuel-efficient, eco- Mitsubishi all have US
friendly vehicles factories
 US automobile trade
deficit for 2007 $97.51
billion
 Japanese automakers
manufacturing in US
factories
 European-style autos
becoming popular
 Popular European
vehicles not legal in
US
 Differences in US and
European safety
regulations inhibiting
trade
 Smart  Ford
 Introduced January  Fiesta
2008 by  Taurus
DaimlerChrysler  Transit Connect
 Slightly longer than
European vehicle
 33mpg city, 41mpg
highway
 "The TIFA will be a platform to
intensify our trade and investment
relations with the ASEAN region,
which collectively constitutes our
fourth largest trading partner and
represents one of the most rapidly
growing and dynamic economies in
- Areas of mutualthe world."
concern culminate in 3 Projects:
- ASEAN Single Window
- Plant health
- Standardization
-Effects are more pronounced
in developing economies.

-Data is limited, but scope of

products is broad and expanding.

Industry Sectors Subject to Infringement:

-Apparel - Electrical Components
-Audio-visual - Personal accessories
- Automotive - Pharmaceuticals
- Consumer Electronics
 http://www.cottingham.com.tw/c/en/news/latest-news/188.html
 http://www.assatashakur.org/forum/conscious-edutainment-videos-movies-tv/30335-life-debt-how-imf-wor
ld-bank-has-impoverished-jamaica-other-countries.html
 “Trade Conflict and the US-European Union Economic Relationship”, CRS Report for Congress, Raymond j.
Ahearn
 http://www.msnbc.msn.com/id/26444467/
 http://www.msnbc.msn.com/id/25811141/
 http://www.msnbc.msn.com/id/13593486/
 http://trade.gov/mas/manufacturing/OAAI/auto_stat_index.asp
 http://www.bls.gov/news.release/ximpim.htmhttp://library.thinkquest.org/06aug/00036/intltrade_barrier
s.html
 http://www.itintl.com/
 http://www.infoplease.com/cig/economics/barriers-international-trade.html
 http://en.wikipedia.org/wiki/Main_Page
 http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp
 http://www.aseansec.org/
 http://europa.eu/index_en.htm
 http://news.thomasnet.com/IMT/archives/2004/01/the_pros_and_co_1.html
 http://www.youtube.com/watch?v=YVt36Q1xLNk