The best protection methods of the EU market

Essay by bagoUniversity, Bachelor'sA, May 2006

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Nowadays, the protection of the EU market represents a necessary step in order to maintain economic stability and prosperity of the citizens inside the European community. However, for the most economic sectors in the EU the future foreign trade policy should be oriented toward the free trade. The most important factor in this process will be the speed and the size of the consistent release of the trade barriers. At this point it is important to mention that the EU market will never reach an absolutely free trade environment because of its natural matter - struggle for a unified economy area. A typical characteristic of such an area is its economical and political control of everything. Liberal principles of the free trade can be applied to such environment just to a certain point but not absolutely. Before this paper will describe existing EU barriers in foreign trade and possible solutions another part of the problem will be described.

Thinking about protection methods and their importance in the EU market is connected to lots of sciences as for example economy, politics or philosophy. The second mentioned - politics often plays more important role than a logical opinion of skilled economists. The reason behind this conclusion is the EU decision making process itself. EU parliament and commissioners are trying to fulfill national interest and interest of various lobby groups (farmers, food producers, etc.) by a large amount of rules, directives, funds or subsidies that are very often inefficient or favorable just for one small group. A small example can be the subsidy allotment procedure for farmers. Those farmers who are running business in a very vegetable area get less financial resources (subsidies) from EU as those who undertake in a mountainous area with fewer outcomes (Wrok, 2004). Therefore, farmers who are able...