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µÚÈý¿Î µØÇø¾¼ÃÒ»Ì廯REGIONAL ECONOMIC INTEGRATION
The past decades witnessed growing importance of regional economic integration. To better enjoy the benefit of tree flow of goods, services, capital, labour and other resources, countries have signed various agreements to liberalize trade among themselves while possibly putting up barriers to economic activities with non-members.
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Regional economic integration falls under four types given below in the order from least to most integrative:°´ÕÕÒ»Ì廯³Ì¶ÈµÄ¸ßµÍ£¬µØÇø¾¼ÃÒ»Ì廯ÓÐÒÔÏÂËÄÖÖÐÎʽ
The first and loosest form is the free trade area. Members of a free trade area removes barriers to the flow of goods and services among themselves while each member still adopts its own policy as regards to trade with outsiders (non-members). In other words different members may have different tariff rates or quota restrictions. Consequently, non-member countries may take advantage of this situation and try to enter the market of the area from the member country with the lowest barrier before selling the goods to a member with a higher barrier. The most notable free trade area is the North American Free Trade Agreement (NAFTA), the largest free market formed by the United States, Canada and Mexico in 1991 with over 360 million consumers and a total GDP of more than 6 trillion US dollars.
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The second form is the Customs Union that goes a step further by adopting the same trade policy for all the members toward countries outside their organization in addition to abolishing (removing) trade barriers among themselves. Since imports from other countries are subject to the same tariff no matter which member they export to, it is impossible for non-members to get into the market of the customs union in a detour as they possibly do in the case of trade with a free trade area. Such an example is Mercosur formed by Argentina, Brazil, Paraguay and Uruguay in 1991.
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The common market is further up the scale of regional economic integration. Besides free movement of goods and services and adoption of common external trade policy, factors of production such as labour, capital and technology are free to move among members so that they can be utilized in a more efficient and productive way. The overall benefit enjoyed by all the members as a whole is quite obvious, but it is hard to say individual members will always benefit, still less to expect them to enjoy the advantage of factor mobility (movement; flow) to the same degree. In the past, the European Community remained a common market for some years.
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The highest form of economic integration is called the economic union which is characterized by integration of the domestic policies of its members in respect of economy, finance etc. in addition to absence of trade barriers, practice of common external policy and free production factor mobility. The members of an Economic Union are required not only to harmonize their taxation, government expenditure, industry policies, etc, but also use the same currency. With the adoption of the single European currency euro by most members of the EU, we can say it is well on its way towards the realization of an economic union.
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It can be seen that the member countries of an economic union are required to surrender some of their national sovereignty, which is eroding the tradition of the world political system based on the autonomy and supreme power of sovereign states. So people begin to talk about a still higher form of integration ¡ª¡ª the political union, members of which will not only be integrated economically, but also harmonize their foreign policy and national defence. With that realized, the members would more or less come together and form a new political entity.
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The European Union is so far the most prominent (outstanding) example of regional economic integration in the world. Its history dates back to the early post-war years. The first community, the European Coal and Steel Community (ECSC) was established in 1952, which set the stage for more ambitious integration efforts. The signing of the monumental Treaty of Rome in 1957 marks the establishment of the European Economic Community with the aim of gradually realizing the free movement of goods, services, labor and capital as well as the integration of economic policies of the member countries. Ten years later in 1967, the European Community was formed by merging EEC, ECSC and the European Atomic Energy Community (EURATOM). 1992 was a landmark year in the development of the EC when it became a true common market as envisaged by the Single European Act. Then on January 1, 1994 the European Union (EU) came into being on the strength of the Maastricht Treaty. By then EU had 12 members including the six signatories of the Treaty of Rome. France, Germany, Italy, the Benelux countries and six other countries that joined later. (Britain, Ireland and Denmark in 1973, Greece in 1981, Spain and Portugal in 1986). The membership increased to 15 with the participation of Austria, Finland and Sweden in 1995. From the beginning of 1999 most of the members began to use the common European currency for accounting and settlement and in 2002, euro banknotes and coins were put into circulation.
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The European Union is a full-fledged entity. Its executive body is the European Commission composed of 20 commissioners overseeing (supervise) 23 departments in charge of different affairs. Though appointed by member governments, the commissioners are responsible to the Union instead of their home country.
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The most powerful institution (body) of the EU is the Council of Ministers. It has the final say on all important matters. Decisions of the council are made by votes allocated to member countries on the basis of their size. Different ministers attend the council meetings depending on the matters discussed. The council even has the power to pass legislation, which is quite different from the case of all the major countries of the world. Å·ÃËÖÐȨÁ¦×î´óµÄ»ú¹¹ÊDz¿³¤ÀíÊ»ᣬËü¶ÔËùÓÐÖØ´óÊÂÇéÓÐ×îÖÕ¾ö¶¨È¨¡£²¿³¤ÀíÊ»áµÄ¾ö¶¨ÓÉͶƱ²úÉú£¬°´ÕÕ³ÉÔ±¹ú´óС·ÖÅäͶƱÊý¶î¡£¸ù¾Ý»áÒéÌÖÂÛµÄÎÊÌ⣬²»Í¬µÄ²¿³¤³öϯ²»Í¬µÄ»áÒé¡£²¿³¤ÀíÊ»áÉõÖÁ»¹ÓÐȨͨ¹ýÁ¢·¨£¬ÕâºÍÊÀ½çÉÏÖ÷Òª¹ú¼ÒµÄÇé¿ö²»Í¬¡£
The European Parliament, despite the title, is but an advisory body with limited power. However, it is empowered to veto EU membership application and trade agreements with non-members. And it is believed the European Parliament will be more powerful in the
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