Trading With European Union

Disadvantages of trading with the European Union

• “The Parties recognize the importance of co-operation in the promotion of competition, economic efficiency, consumer welfare and the curtailment of anti-competitive practices.

• The Parties recognize the significant differences in capacity between The European Union Member States, and México in the area of competition policy.

• They also have complicated policies which have been put in place with the aim of blocking the third world countries from bringing their products either directly or indirectly through other parties

• The transaction costs are very high so that they will not see the need to engage in the business as the high tariffs will have contributed to very low profits besides the time and energy consumed.

• The European Union reduces tariffs in the goods they intend to trade and those that affect them both.

• They have also ensured that politics have no hand in what they do to ensure that their decisions are not affected by the political moves this have ensured stability for the two organizations

• The organizations are set to benefit the powerful nations of the world and taking advantage of the third world nations since they get raw materials from them but they do not want to accept their products.

References

http://www.usmcoc.org/b-nafta5.php

http://www.lawteacher.net/international-law/essays/advantages-disadvantages-and-comparisons-eu-and-nafta-international-law-essay.php

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