Openness And T he EU

Openness And The EU

Does Candidacy to the EU Increase a Nation’s Trade Openness?By: Constantine Petallides

What is Trade Openness?

• (Imports + Exports)/GDP

• More Business = Stronger and More Stable Economy

Why Does the EU Care?

• Copenhagen Criteria: Existence of a functioning market economy and the capacity to cope with competitive pressure and market forces within the Union.1

• $$$$$$$$ $$$$$$$$ $$$$$$$$– Fewer tariff walls and “Four Freedoms”

• Everyone Wins!

1Europa – Glossary – Accession Criteria (Copenhagen Criteria), http://europa.eu/scadplus/glossary/accession_criteria_copenhague_en.htm

Openness in the EU

Low Openness High OpenessCandidate Turkey (1999) Croatia (2004)Non-Candidate Bulgaria (1997) Malta (1996)

Conclusion

• Members with High Trade Openness– Boost EU Economy– Reduce Costs– Makes EU Goods More Competitive

• Increase Openness to be More Desirable Member.

Thank You