Integrating the Least Developed Countries into the World Trading Essay

Integrating the Least Developed Countries into the World Trading System - Essay Example The European Community has developed numerous economic and trading layers through which the bloc manages and deals with the economic and trade affairs with other countries of the world. The European Union consists of 27 members (Jacoby 2004; Kelley 2004; Vachudova 2005). This expansion enables EU as a unitary actor to exercise considerable geo-regulatory and geo-economic power (Damro 2006; Young and Peterson 2006). The other instruments employed by the EU to enhance its influence beyond Europe borders include conditionality (Lister and Carbone 2006) and development aid (Holland 2008). The members of EU have developed an integrated policy including agriculture policy, common competition policy, and common external tariff policy. The members have also observed the uniform application of four basic components of freedom such as capital, movement of persons, goods, and services. The entire bloc has allowed the citizens of member countries to enjoy free cross-border mobility without using or facing any visa restrictions. The members also use Euro as a single currency to exchange goods and services. South Africa in 1999 (Dur 2007; Frennhoff-Larsen 2007; Sanabuja 2000; Szymanski and Smith 2005).The first generation association agreements in the period of 1970s observed the establishment of customs unions with the states of Malta and Cyprus. The European Economic Area (EEA) represents a single market of the European Union. The major function of EEA is to work as a free trade area along with maintaining its own distinct and separate tariff level. Free Trade Areas (FTA) are the regulatory framework underway between various developing and developed countries of the world. The FTAs with other countries including Slovenia, Estonia, Bulgaria and Lithuania and other central and eastern states have been concluded. In addition to that, the Mediterranean Partnerships encompass economic and trade relationships between various countries from the Middle East and other parts of the world. The focus is to increase and strengthen the economic ties and relationships. In this regard, Africa, Caribbean, and Pacific (ACP) preferences are also another mechanism put in place to develop and maintain economic and trade relations with a number of developing countries. The framework of Generalized System of Preferences (GSP) is increased when the inclusion of the recent ‘Everything But Arms’ initiative took place in which economic and trade framework was further analyzed and developed a workable framework with the developing countries with an aim of strengthen economic and trade relationships. However, there are various experts who do not agree with the notion that EU trade policy extends the share of benefits that it has given to the EU farmers. And they also contend that one way or other, the EU trade policy works at the cost of the developing countries.