eu—a major trading bloc

EU—A MAJOR TRADING BLOC• 27 Countries• 500m people (USA—293m;Japan—127m)• The Single European Act created a uniform internal

market• The establishment of the single currency helps

internal and external trade• A common transport policy is pursued:-Channel

Tunnel;High speed rail connections is planned• A motorway network runs through the EU for trucks

etc.• A uniform set of standards exists for manufactured

goods.—increased internal EU trade• Internal+External EU trade=c.45%of all world trade

by value

IRISH TRADE IN THE EU

• Neocolonialism----Ireland continued trading with GB(96%--raw materials and unprocessed goods e.g. cattle on the hoof)

• Economic relationship with GB was one of dominance and dependence

• 1973:-Ireland joined the EU Ended the pattern of dependence on

the British market(1998---imported31%and exported 20%)

PRODUCTS EXPORTED

IRISH EXPORTS

IRISH EXPORTS

EU INFLUENCES ON IRELAND--Positive1. Ireland became economically independent of GB

(e.g. single currency)2. Ireland gained access to a very large market3. IDA was able to represent Ireland as an attractive

location for foreign MNC’s—access to EU market4. EU Funds5. CAP6. Pensions for farmers7. Consumer law and health and safety measures8. €37b transferred in total---70% was directed to

agriculture

EU INFLUENCES ON IRELAND-Negative

1. Indigenous industries collapsed2. Unemployment 3. Loss of sovereignty in the Fishing industry?4. Many small farmers went out of business

TRADE—1971--2005

(CAP) COMMON AGRICULTURE POLICY

• 1962• Raise farm incomes• Increase farm output• Guaranteed Prices• Very costly---In the 1990’s the CAP was costing 65%

of the total EU budget• Overproduction• Food Mountains• Storage Costs• High food prices

REFORM OF CAP

• 1992• Price supports were reduced• Direct income support was given• Milk Quotas (1984)• Set Aside• Decoupling

REPS

Rural Environmental Protection Scheme Financial incentives to protect the flora

and fauna of the countryside Over 50,000 farmers receive payments

IRELAND’S TERRITORIAL WATER’S

IRISH FISHING INDUSTRY1. Ireland has 11% of EU waters.2. The shallow, warm waters of the continental shelf

and NAD encourage plankton growth3. The plankton is the food for fish 4. The coastline is a sheltered indented coastline 5. The government was slow over the years to invest

in the fishing industry6. The access to some of the ports is not good.7. The modernisation process has resulted in the

concentration of the industry in 5 ports—Killybegs;Castletownbere;;Rossaveal;Dingle; Dunmore East

IRISH CONSERVATION BOX

• ICB replaced the Irish Box—(a larger 80- km zone and included Ireland’s northerly waters)

• The ICB comprises an area of 100,000 sq.Km--⅓ of the original Irish Box

• It stretches from Waterford Hbe to Slyne Hd.• It follows the 200m undersea contour on its

western side• It came into force in 2004

ICB

COMMON FISHERIES POLICY(CFP)

• Common Fisheries Policy agreed in 1983(CFP)• Ireland was given 5.8% of the EU total annual

catch(TAC)• EU countries have access to the Exclusive

Economic Zone (320km)• Quotas are agreed in Brussels• In 2003 EU agreed that fishermen could only

trawl for cod on 12 days each month in the Irish Sea

CFP• Structural Reform

1. Grants are provided to help skippers buy larger boats2. Compensation is given to skippers agreeing to have their boats scrapped3. Funds are made available to modernise fishing ports(examples) and transport links to market4. Grants are given to communities to help to develop processing facilities5. The EU negotiated an agreement with Norway—reciprocal rights6. African countries are paid to allow long distance EU boats to fish in their waters

CFP 2

Conservation 1.Herring fishing is prohibited in the Celtic Sea2.Minimum fishing nets are set to allow

smaller/younger fish to escape3.A TAC is set each year by Fisheries Ministers4.Monitoring by aircraft and protection vessels

AQUACULTURE

• Aquaculture has developed as an alternative to sea fishing

• Salmon,trout and shell fish are farmed in inlets along the west coast.Killary,Bantry Bay,Clew Bay

• 2003—the numbers employed was almost equal to the total of full time jobs in sea fishing

• The output is worth almost 50% of the total income from the fishing industry

EU REGIONAL POLICY

• GDP-Portugal-----------73% of the EU average

Luxembourg----123% of the EU average

Poland---------47% of the EU average

In 1975 the Common Regional Policy was adapted to reduce ‘ the disparities ‘ between the various regions

COMMON REGIONAL POLICYStructural Funds

1. European Regional Development Fund(ERDF) –aiding industrial development and upgrading infrastructure

2. European Social Fund(ESF)—supports the training of workers, addressing the problems of minorities and marginal communities

3. Guidance Section of the Agricultural Fund—farm improvement

4. Financial Instrument of Fisheries Guidance—supporting fishing communities

5. 94% of structural funding is concentrated on 3 priority objectives

COMMON REGIONAL POLICY 2

3 Priority Objectives Objective 1. –A per Capita GDP of less than

75%.e.g. Mezzogiorno, West of Ireland. Objective 2– Regions of industrial decline.

e.g Nord Objective 3—Deprived areas of cities. Long

term unemployment

COHESION FUND• This fund was set up in 1993• Its aim was to help the 4 least prosperous

member states—Greece;Ireland;Spain and Portugal

• Leader Programme:-A self help scheme fro rural communities. It provides finance for projects developed by local people.

• Partner Programme:-This is aimed at urban populations—to tackle long term unemployment

IRELAND & AN ENLARGED EU

• The enlarged EU is poorer per head of population

• Ireland will contribute rather than a be a recipient of funds

• The population/market /labour market has increased

• Free movement of people and goods