The European Single MarketA single market isa type of trade union, where most trade barriers have been removed with some sharedpolicies on product regulation and production of enterprise and services. Thismarket refers to the EU as one territory to supply goods and services. TheEuropean single market stimulates a lot of competition and trade due to itsgrowing economy improving efficiency and cutting prices. The single market isone of the EU’s biggest accomplishments.
It powers economic growth. The European Union’s singlemarket is possibly the most determined type of trade co-operation. Thereason being is it only does not remove costs and taxes on trade; it also containsthe free movement of goods, services, capital and labour and the ideas are widenedto include economic policymanagement for example in the areas of health and safety legislation andmonopoly & competition policy.
Each year The Court of Auditors writes thefinancial report of the EU. It examines the expenditure and revenue of the EUto ensure its transparency. The EU have created a global system for fair and open tradeand opening markets with partners by working with the World Trade Organizationto keep the global economy open and based on fair rules. Insert table from thislink – http://ec.europa.eu/trade/policy/eu-position-in-world-trade/The EU has 28 members including the UK. There are fourmembers of the European Free Trade Association (ETFA) – Norway, Iceland,Switzerland, and Liechtenstein which also participate in the single market ondifferent levels.
The development of the digital single market by 2020 couldpossibly result in a 4% increase in GDP in the EU. This means it will changethe EU’s single market rules by increasing the music download business, formingonline payments effortlessly in order to protect EU consumers purchasing goodsand services online. The Single MarketStrategy Tradein the UK and EU is now being taken over by the single market which hasincreased availability of foreign products within the member countries.
The European project is at the heart of the single market; howeverits benefits don’t always emerge due to implemented guidelines or otherbarriers. The single market is being given a boost by increasing flexibilityfor service providers, providing easy access for retailers to trade across borders,helping innovative business models succeed, and improve access to goods andservices throughout the EU in order to boost the single market. Oil and gas companiessuch as Shell and Bp are the largest European companies taking in over40million US Dollars. It is one of the leading trade institutions in the SingleMarket. A well-known gas company abroad named Chevronmerged with Texaco in 2011; however Shell took over re branding the fuelstations in 2002 which was told to be one of the biggest take overs in history. Globalization Globalization isa big issue to tackle around the world. Companies have been taking advantage ofthe differences between member states to enter the single market where theyhave few restrictions to access the EU freely. Technology is developing so much over the years and countries like Chinaand the U.
S are leading the market, encouraging new products. This has led theEU to expand and develop products outside the EU to produce a valuable productand get ahead of the current market. Single Market rules apply compliance withglobal trade rules and investment, however overseas competition does not havethe same restrictions.
Some flaws are now beingidentified from diverse national policies of EU rules in areas such as energyor data protection which is leading to division within the Single Market makingfirm’s reconsider their location. This has disadvantaged the EU as a globalindustrial competitor; however the EU industry will rely on development indigitalisation and becoming eco-friendly in order to create global value chainsand innovative new business models. The new industrial policy should aim toincrease Europe’s competitiveness and boost the renovation of industries.http://www.
epc.eu/pub_details.php?cat_id=4&pub_id=7851Single Market forGoods This market trades withapproximately 21 million small and medium-sized enterprises (SMEs) and 500million consumers.
The main priority is to trade freely and set safetystandards in order to protect the environment and consumers under one Act. https://www.ft.com/content/1688d0e4-15ef-11e6-b197-a4af20d5575e One way to do this is tofollow legal metrology.
This is the science of measurement which is importantfor trade and our everyday lives. Without correct measuring it is impossiblefor a market to function. This is also one of the pillars of the single marketfor products. https://ec.europa.eu/growth/single-market/goods/building-blocks/legal-metrology_en Looking at theinternational point of view the single market expansion over the years and theEU’s regulatory model are important factors shaping the EU’s relationship withnon EU countries and enabling good conditions for international trade inregulated products. By keeping a good business relationship it makes it simplerto trade and expand to different markets. In order to keep excellent relationsthe EU Commission follows a strict guideline to trade.
They keep regulationsand standards up to date; use the appropriate regulations and keeping rules assimple as possible to follow. They also hope to keep trade fair and followguidelines for returns and warranties etc. The global environment is changingdue to rise of protectionism and the U.S no longer being a stable guarantor ofan open global economic system. There is a lot of competition on loweringtaxation and environmental standards. Thesingle market has also increased competition in the manufacturing sector, whichhas led to lower prices for consumers. There are anumber of international legal instruments which improve cooperation andmanagement of legalisation which simplify the free movement of goods andservices. They include the following; Appendix 1.
International Legal Instruments 1. full integration of the EEA and EFTA countries in the internal market through the EEA agreement 2. alignment of the legislative system and infrastructure of EU candidate countries with the EU; 3.
similar alignment of neighboring countries through bilateral Agreements on conformity assessment and acceptance of industrial products (ACAAs); 4. Conclusion of inter-governmental Mutual recognition agreements (MRAs) for conformity assessment, certificates, and marking. These are intended to reduce the costs of testing and certification on other markets; 5. Reliance on the WTO Agreement on Technical Barriers to Trade. https://ec.europa.eu/growth/single-market/goods/international-aspects_en Single Market forServices The service sectorcontributes a huge amount to the single market including economic andemployment in the EU accounting for 70% activity.
This is the growth ofservices and establishment in countries other than the one they trade infreely. The EU economy relies onretail and wholesale services as they help boost the economy. They account for 11.1% ofthe EU’s GDP and provide around 33 million jobs. E-commerce has improved themarket for retailers and the amount of products available to customers.
TheEuropean commission aims to ensure a joint market is available for wholesalers,retailers and consumers. Specialist in the EUare able to move across the borders and follow their occupation through weatherits buying and sell products and providing individual services to clients attheir own comfort.Digital Single MarketThe world has developed its trading over theyears as the internet and digital technology has transformed the economy.Trading of goods and services can be limited due to online barriers and theestablished online companies and start-ups have their opportunities limited. Byoperating the EU’s single market using the new digital technology, removingregulations and moving from 28 national markets to a single one. A digital single marketbenefits the European business and customers in a number of ways. Every yearinnovation funds billions to the EU economy.
The online digital market isspreading; online marketplaces are still mainly domestic in terms of onlineservices. Some research shows only 7% ofsmall and medium-sized businesses in the EU sell cross-border. This can changeby putting the single market online, as it can help Europe hold its position as a world leader in the digitaleconomy. This market creates a large amount of jobs which help with industrygrowth. Standardisation All products need aguideline as to how they should be produced and finished.
Standards need to be metthat are voluntary which apply to products and services.Companies need to abideby this specification in order to trade and gain repeat custom. Without theseguidelines trading would be very difficult as consumers need peace of mind forwhat they are investing in or buying.
Also the companies need to be equal inpractice to produce something worth selling or providing. Depending on thelevel of standards met products and services can enhance competition by usingit as USP and making themselves stand out. It also helps reduce costs andimprove the level of safety measures which need to be met. http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1496330315823&uri=CELEX:52017DC0228 Barriers to trade There are barriers which can stop orslow down trading.
The Commission works to overcome these and make it simplefor organisations to trade freely in the EU and around the world. Technical barriers to trade follow acontract eliminating limitations on imports and exports and managingregulations In 1999 a mutual recognition of higher-educationprofessional qualifications was embraced to promote the ability for citizens(e.g. doctors) of a member state to offer services in other member states.
Thefree movement of capital has substantially contributed to facilitate FDIactivity within, to and from the single market.CE markingThe CE trade mark notifies theseller in regards to the product meeting health and safety regulations. Thisenables the product to be sold throughout the EU. Public procurementPublic findings are the purchaseof goods and services by public authorities such as national, regional, or publicgovernments. One of the EU policies is to trade fairly so the publicProcurement confirms this and makes sure guidelines are met. EuropeanIndustrial Policy A European industrialpolicy helps with maintaining a framework for all policies to preserve andprotect openness and competition. Some member states will have an upper handwith financial and institutional capacity to do more than others, resulting inan increase of inequalities.
Some may protect other uncompetitive industriesbut this will weaken the EU in the long run which results in reducingcompetitiveness instead of enhancing it. New policies need to be developed inorder to support Europe’s industrial developments and improve competitiveness. https://www.interregeurope.eu/s34growth/ Governance andmonitoring of the Single MarketThe Commission monitors the application of EU law and can launch infringement proceedingsagainst EU countries that do not comply. This helps to create economic reportsand use stakeholders to evaluate the position of The Single Market and how muchit contributes and implements The Single Market Act. Between 1978and 1995, Shell Oil produced polybutylene pipes,which corrode when exposed to chlorine.
A classaction lawsuit was filed in 1995 against Shell Oil when thepolybutylene pipes caused flooding in many households in the U.S. and Canada.18 Thesettlement required Shell Oil to pay for the re-installation of piping formillions of houses for claims filed through May 2009.19Summary EUrequirements aim to promote technological innovation, protection of health,public safety, protection of the environment and fair trade.