Its common commercial Policy of European Union

1. Common Commercial Policy
Presented by: Ayesha Qadeer

2. Historical Background
• First stage was Benelux Union, 1944
• Custom trade association between Belgium,
Netherland and Luxembourg
• Six states called inner six i.e. Belgium, France,
Italy, Luxembourg, Netherland, West Germany
were founding members
• 1957 Treaty of Rome
• Established “European Economic Community”
• European Economic Committee is also known as
“Common Market”

3. • 12 year transnational period up to 1969 was
introduced
• Upto 1970, member states coordinated their
trade relations with non-community countries

4. Aims and objectives
• Establishment of Common Market.
• facilitating members for greater investments among
themselves
• Strengthen bargaining power outside the states
• Free movement of Goods, services, people and capital
• To create closer political unification of Europe
• To initiate closer economic alignment for signatory
countries.
• It was also accompanied by common trade policy.
• Common external tariff for trade were also introduced.
• the EEC aimed to reduce tensions in the aftermath of World
War II.

5. Joint Policies
• The treaty established certain policies from
the start as joint policies among the member
countries, including:
• Common agricultural policy (Articles 38 to 47)
• Common trade policy (Articles 110 to 116)
• Transport policy (Articles 74 to 84).

6. Joint Policies
• It allowed for the creation of other joint policies,
should the need arise. After 1972, the EEC
established joint action in the fields
of environmental, regional, social and industrial
policy.
• These policies were accompanied by the creation
of:
– a European Social Fund, to improve job opportunities
for workers and to raise their standard of living
– a European Investment Bank (EIB), to facilitate the
EEC’s economic expansion by creating investment
funding.

7. Further Development
• On July 1, 1967, the governing bodies of the EEC, ECSC, and
Euratom were merged. Through the Merger Treaty, which
entered into force in 1987.
• EEC members committed themselves to remove all
remaining barriers to a common market by 1992
• The Maastricht Treaty (formally known as the Treaty on
European Union; 1991), which went into force on
November 1, 1993, the European Economic Community
was renamed the European Community
• It was implanted into European Union as first of 3 pillars
• Second was common foreign and security policy
• Third was police and judicial cooperation in criminal
matters

8. Further Development
• The treaty also provided the foundation for an
economic and monetary union, which included
the creation of a single currency, the euro..
• The Lisbon treaty was signed and later ratified in
2009
• Under the amendments of the Lisbon Treaty:
the European Community—which had
provided the economic framework upon
which the EU was built—disappeared, and its
powers and structure were incorporated into
the EU

9. Current Economic Policy
• As we all know, European Union started as
Economic Community so economic policy is still
an important area in the EU.
• The European Union seeks to engage in
cooperation to protect the environment
• It seeks to promote the protection of natural
assets and stop climate change.
• The Union wishes to keep the EU economy stable
and competitive compared to the other countries
in the world.

10. Current Economic Policy
• Efforts are made to prevent internal disagreements.
• The objective of the European Union’s economic policy
is to create a stable and prosperous euro zone.
• A common currency improves companies’
competitiveness and increases economic stability.
• The European Central Bank regulates the interest rates
and is able to control inflation and exchange rates
• The European Union pays members states various
subsidies, for example for development projects.
• The subsidies are designed to improve the local
standard of living and distribute wealth to the poorest
areas in Europe.

11. Trade Policy
• There are no customs duties between EU member
states.
• This is one way in which the EU tries to eliminate
poverty.
• The European Union holds an important position in the
World Trade Organization (WTO).
• Trade relations are maintained, in particular, with the
Mediterranean countries, Russia, the United States and
China.
• Member states may also sign bilateral trade
agreements with other countries as long as they are
not in conflict with the EU laws and agreements.

12. Thank You