Economic Relationship among European Nations

Economic relationship among the European nations has developed significantly over the last few decades. Trade acted as an engine of growth for most of the European countries. If supported by favorable economic policies, cross border trading activities can bring about a host of opportunities for ensuring all-round development of the countries involved in international trade. The European Union (EU) plays a crucial role in the decision-making process of the World Trade Organization (WTO). All the 27 member countries the European Union follow a common policy for carrying our domestic and international trade. The European Commission looks after the economic interests of the EU members and presents the trade interests of Europe on the members’ behalf. The European Union played a pivotal role in the World Trade Organization for promoting the latest rounds of multilateral negotiations of trade.

Trade Policy of the European Union: An Overview

The trade policy of the European Union has been designed to ensure economic cooperation and integrity among the European nations. This in turn ensures equitable distribution of benefits derived from inter-state trading activities. The European Union trade policy attempts to promote economic relationship among the European nations based on multilateral and bilateral trade.

Trade Process of the European Union

The fourth ministerial conference of the WTO set in motion the Doha Development Agenda. This trade negotiation put stress on compliance with the WTO commitments, promotion of trade liberalization policy, and use of new trade rules. The Doha Development Agenda also tries to make sure that members of WTO are making the most of Trade Related Aspects of Intellectual Property Rights (TRIPS). The European Union attempts to promote exchange of non-agricultural products to involve more and more developing countries in cross border trade. It also tries to remove the trade barriers among the member nations. The European Union proposes that exchange of agro products will help in the long-term development of the developing economies. The policy measures initiated by the European Union have been quite helpful in strengthening the economic relations among the European countries.

Role of the EFTA at a Glance

The formation of the European Free Trade Association or EFTA on 3rd May, 1960 was crucial in the context of economic relationship among the European countries. It involved those states of Europe that were not members of the European Economic Community (Today’s the EU). The EFTA takes the initiative to deepen the economic relations among the members. At present it consists of only four European states namely Switzerland, Iceland, Liechtenstein, and Norway. The EFTA has helped its members to get involved in a number of bilateral and multilateral trade agreements with other countries, both within and outside the European territory.

The strong economic association among the European nations has turned out to be quite beneficial for socio-economic development of the continent.