Question

With which countries does Germany have a trade agreement. I need help identify a regional integration bloc (or trade agreement) that they are currently a member. Do a bit of quick research to find out the goals of the agreement, the date established, the countries participating, and summarize principal points of the agreement regarding such things as tariffs, intellectual property, foreign direct investment, and rules regulating environmental, health and safety, minimum wages, and child labor. IN a few sentences, discuss how your country benefits from this regional integration bloc.

Answer 1

Germany is part of the trade bloc known as European Union or EU. It is one of the largest common market in the world.

The other member of the EU are

Austria, Belgium, Bulgaria, Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Spain, Slovenia, Slovakia, and Sweden

The main goal of the agreement was to promote free trade between the members and this means free flow of goods, products, services and eventually create a barrier for entry for products from other countries. The challenge these countries were facing was that the goods from Asian countries like Japan and China were overwhelmingly affordable compared the goods and services created in Europe. As a result the firms were struggling and this common market/integration bloc was supposed to put a barrier to these outsider firms.

The initial agreement was formed in 1 November 1993 in Netherlands and the original members were Germany, Italy, France, Netherlands, Luxembourg and Belgium.

EU has a single trade policy and single tariff system for the member nations. This makes sure that the playing field is levelled between their member nations. However, the tariffs imposed are high for external countries (non-members).

The flow of intellectual property and foreign direct investment are also regulated by the commission and various regulatory framework are dictated to the member nations to follow. However, in terms of minimum wage, the countries have their own system in place and the minimum wages, child labor laws, etc. varies from countries to countries.

The overall objective of the EU was to create a common market. This was made to ensure that the neighboring countries can support one another and help boost each other’s economy. By joining this bloc, my country can open free trade with the neighboring and member countries and thus boost export and create a specialization for our own nation.