European Union and Free Trade, Essay Example

Trade agreements between countries are designed to remove some or all of the barriers and restrictions that can make trade difficult.  Every country has its own sets of laws and regulations related to doing business, so any business from a different country must understand those laws in order to do business there. Most nations also have their own forms of currency, so doing business internationally often requires currency exchanges and other things to consider. Another consideration is that most countries have some forms of taxes or tariffs on imported goods and products, and this can affect the costs of doing business internationally and provide barriers to free trade. Many nations have formed trade agreements and political agreements that are designed to eliminate trade barriers. One significant example of this kind of agreement is the European Union.

The EU is not really just a trade agreement between the member countries, it is also a complex political agreement(Eeas.europa.eu, 2014) . But one of the primary purposes of the EU is to eliminate trade barriers between the members (Eubusiness.com, 2014). Before the EU was formed, most of the nations of Europe had their own individual currencies, trade laws, tariffs, and other laws that restricted or slowed down trade between those countries. One of the most important changes that came from the formation of th4 EU was the establishment of a single currency, the euro, which most of the EU member nations now use (Eubusiness.com, 2014). Having a unified currency means that currency exchanges between nations are not necessary when shipping goods across national borders. This makes trade faster and helps establish standard prices for goods and materials. The EU also establishes uniform trade laws for the member nations which also make free trade between member nations possible (Ec.europa.eu, 2014). The EU is also a political organization which establishes legal standards for other areas, but its primary purpose is to make trade between European nations faster and easier.

References

Ec.europa.eu,. (2014). Commission at Work – Commission’s role in EU lawmaking – European Commission. Retrieved 24 July 2014, from http://ec.europa.eu/atwork/index_en.htm

Eeas.europa.eu,. (2014). European Union – EEAS (European External Action Service) | The EU’s many international roles. Retrieved 24 July 2014, from http://eeas.europa.eu/what_we_do/index_en.htm

Eubusiness.com,. (2014). EU – European Union and Eurozone business news | EUbusiness.com. Retrieved 24 July 2014, from http://www.eubusiness.com/