Home Search Sitemap Contact Bookmark

Free Dissertations - Economics Dissertations

They Have Traded With Each Other For Several Years, And This Has Led To ...

They have traded with each other for several years, and this has led to agreements being signed between them. This has meant that trading between the two regions has become more practical, as trading obstacles were removed significantly. When trading obstacles are mentioned here it means that tariffs are removed. Precisely, this is why quotas should not be applied to any trade relationships as it introduces tariffs on trade. When tariffs are introduced, trade is less convenient, and this may even be a sign of deliberate attempts to reduce trade between two regions. In the case of China and the European Union, since the European Union has imposed licensing quotas on exports from China, it is apparent that the EU wants to mitigate textiles coming from China. This is because the EU had signed agreements that reduced tariffs and trade barriers when they traded with China (Ma, & Wang, 2001, 22-5).
The Function of WTO Law and the Reasons for the European Union Imposing Quotas on China Implications for the UK:
Over the years, when the EU has traded with China there has been a change in the quality of exports coming from China. Previously, China had been known for its low quality products (Dong et al, 1998, 19-27). However, it can be asserted that there has been a change in the quality that China produces for the EU market. China has become increasingly aware of the fact that the EU market is quality conscious. This is because they understand that the market in several EU members is affluent. Particularly, Germany is a market that goes for high quality goods. China has therefore understood the need to develop an identity that may not have been before. Since European consumers now demonstrate a shift in their attitudes, there is more scope for China and other Asian countries to cater to these attitudes. A significant segment of consumers in the EU are ready to explore new brands (Lee, 2003, 20-2}. With their high expectations of new products and brands, these consumers present tremendous scope for China and other Asian countries to produce quality goods and services. Particularly in the case of China, it can be asserted that with their low cost quality goods, they can capture a great deal of the market (Fuchs, 2003). In accordance with surveys, it is thought that China indeed has good chances of capturing a significant part of the European market as compared to other Asian countries like India. What goes in China's favor is the fact that they have had had a long relationship with the European Union, and consumers have taken to their products. In addition to this, China's prices have been more affordable than other Asian countries, considering the quantity they produce as well. It is because of this that China has managed to maintain an image as a supplier to major markets (Fuchs, 2003). This has also helped its reputation as it has managed to align itself along side other members of the WTO.


Thanks