Definition of ‘European Union – EU’ A group of European countries that participates in the world economy as one economic unit and operates under one official currency, the euro. The EU’s goal is to create a barrier-free trade zone and to enhance economic wealth by creating more efficiency within its marketplace. Read more: http://www. investopedia. com/terms/e/europeanunion. asp#ixzz2KxZDOcXv Map of area Barriers overcome: (a) Physical barriers All border controls within the EU on goods have been abolished, together with customs controls on people, but the police still carry out random spot checks as part of the fight against crime and drugs.
Technical barriers any product legally manufactured and sold in one member state must be allowed to be placed on the market in all others. Where services are concerned, EU countries mutually recognise or coordinate their national rules allowing people to practise professions such as law, medicine, tourism, banking or insurance. (c) Tax barriers Tax barriers have been reduced by partially aligning national VAT rates, which must be agreed by the EU member states (d) Public contracts Regardless of who awards them, public contracts in any EU country are now open to bidders from anywhere in the EU.
Ten ways in which Europeans have benefited from the Single Market 1. Increased prosperity: over the last 15 years the Single Market has increased the EU’s prosperity by 2. 15% of GDP. In 2006 alone this meant an overall increase of EUR 240 billion – or EUR 518 for every EU citizen – compared to a situation without the Single Market. 2. More jobs: 2. 75 million extra jobs have been created over the period 1992-2006 as a result of the Single Market. 3. Easier to travel and shop: EU citizens can travel across most of the EU without carrying a passport and without being stopped for checks at borders.
Shoppers have full consumer rights when shopping outside their country and there are no limits on what they can buy and take with them for personal use. 4. More opportunities to live, work and study abroad: more than 15 million EU citizens have moved to other EU countries to work or to enjoy their retirement, benefiting from the transferability of social benefit, while 1. 5 million young people have completed part of their studies in another Member State with the help of the Erasmus programme. 5.
Wider choice of products and services: 73% of EU citizens think the Single Market has contributed positively to the range of products on offer, while the establishment of common standards has led to safer and environmentally friendlier products, such as food, cars and medicines. 6. Lower prices: the opening up of national markets and the resultant increase in competition has driven down prices of, for example, internet access, air travel and telephone calls (the latter having been reduced on average by 40% over the period 2000-2006). 7.
Less red tape: rather than adding to red tape, Single Market rules often replace a large number of complex and different national laws with a single framework, reducing bureaucracy for citizens, and compliance costs for businesses, who pass those savings on to consumers. It has also become easier to start or buy a business: the average cost for setting up a new company in the former EU-15 has fallen from EUR 813 in 2002 to EUR 554 in 2007, and the time needed to register a company administratively was reduced from 24 days in 2002 to about 12 days today.
But more progress is needed. 8. Huge potential market: any business in the EU automatically has close to 500 million potential customers on its doorstep. This allows larger businesses to benefit from enormous economies of scale, while new markets have been opened up to small- and medium-sized businesses which previously would have been dissuaded from exporting by the cost and hassle. 9. Much easier to do business: trade within the EU has risen by 30% since 1992. The absence of border bureaucracy has cut delivery times and reduced costs.
Before the frontiers came down, the tax system alone required 60 million customs clearance documents annually: these are no longer needed. 10. Better value for taxpayers: as a result of more open and competitive public procurement rules, governments have more money to spend on priorities such as health and education. For example, the price of railway rolling stock has dropped, with studies pointing at savings from 10% to 30%. Source: European Commission THE WTO It is an organization for trade opening.
It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other. CEPA CEPA is a win-win agreement, bringing new business opportunities to the Mainland, Hong Kong and all foreign investors. For Hong Kong, CEPA provides a window of opportunity for Hong Kong businesses to gain greater access to the Mainland market.
CEPA also benefits the Mainland as Hong Kong serves as a perfect “springboard” for Mainland enterprises to reach out to the global market and accelerating the Mainland’s full integration with the world economy. * Zero tariffs on 90% of Hong Kong exports to China * Lower entry thresholds for smaller players (capital/trading history requirements) * What does it mean? * Preferential access to Mainland China’s market from Hong Kong * Makes Hong Kong the simplest, most profitable route into/out of Mainland China.