extra-EU Trade Research Articles

The EU’s pesticides MRLs harmonization: effect on trade, prices and quality

In September 2008, the European Commission harmonized Maximum Residue Levels (MRLs) in pesticides across EU Member States. We examine the effect of this policy change on trade, prices and quality via two alternative channels — the relative restrictiveness of a food standard imposed by an EU importer vis-a-vis trading partners from both within and outside the Common Market; and regulatory heterogeneity across EU Member States. We find strong evidence for adverse effects of both dyadic restrictiveness and within-EU regulatory heterogeneity on intra- and extra-EU trade at the extensive and intensive margins in the pre-harmonization period. Our findings further suggest that the EU’s MRL harmonization increased intra-EU trade; the probability and value of exports of its non-EU (both OECD and developing country) partners; and led to quality upgrading and lower prices of the traded products. The harmonization-induced rise in non-EU OECD exports to the EU also underlines the need for UK product standards to be closely aligned with those of EU27 post-Brexit.

Trade impacts of external border measures under the European Union's plant health legislation.

This article assesses whether the European Union's (EU's) plant health regulations have had an impact on imports. A dynamic modelling approach was applied, using a two-step generalized method of moments estimator for panel data, and covering an 8-year period (2013-2020). The estimated equation includes volumes of trade, economic drivers, the trading partner, and variables capturing categories of import requirements (phytosanitary certificates, exemptions, restrictions) with regards to external border measures for enhanced biosecurity. From the analysis we can conclude that the import regime and its recent changes have had a limited impact, if any, on trade flows of the affected products. The most significant impact is found for products classified as high-risk plants, while the extension of the phytosanitary certificate requirement to new products seems to have had negligible effects on trade. Therefore, the plant protection regime for extra-EU trade seems to be not trade distorting while supplying a framework to enhance plant health in the EU. © 2023 The Authors. Pest Management Science published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.

Comparative Analysis between Intel Corporation and AMD in the Context of the IT Industry in Romania

This scientific work delves into the remarkable surge of international trade in high-tech products observed globally over the past decade. Emphasizing their pivotal role in European Commission policies, particularly in environmental and climate-related discussions concerning our digital future and economic stability, the study provides key insights from Eurostat's analysis of extra-EU high-tech product trade. Noteworthy points include a steady 4.9% average annual increase in total trade outside the EU from 2011 to 2021, with high-tech products' share in total trade growing from 14.7% to 18.1% over the same period. China emerges as the principal partner for imports into the EU, while the United States takes the lead in exports from the EU. Eurostat's data further reveals a substantial rise in total extra-EU trade (imports + exports) in high-tech products, surging from €482 billion EUR to €777 billion EUR between 2011 and 2021, indicating an average annual growth rate of 4.9%. Imports escalated from €248 billion to €392 billion, experiencing an average annual growth rate of 4.7%, whereas exports showed slightly stronger growth, increasing from €234 billion to €385 billion, with an average annual growth rate of 5.1%. This led to a reduction in the European Union's trade deficit, plummeting from €14 billion EUR to €7 billion EUR. Additionally, the study examines the IT industry in Romania, characterized by steady and sustainable growth according to the Employers' Association of the Software and Services Industry (ANIS). The industry's value soared from 4.6 billion euros in 2015 to over 9 billion euros in 2022, signifying a substantial impact on the country's gross domestic product (GDP), reaching 7%. Bucharest holds the largest market share at 60%, followed by Cluj at 18%. To provide comprehensive insights into the Romanian microprocessor market, the study employed an online questionnaire from December 3, 2022, to January 3, 2023. Participants were invited to respond to 22 questions, 16 of which were closed-ended, while 6 were open-ended. The questionnaire primarily focuses on gathering objective data related to the microprocessor market in Romania, particularly from the perspectives of industry leaders INTEL and AMD. Following the administration of the aforementioned questionnaire, a total of 485 responses were gathered from individuals aged between 18 and 70 years old. The aggregation of the received responses yielded valuable information on various aspects including gender distribution, age demographics, professional fields, budget allocation for processors, annual spending on IT components, and preferences for processor manufacturers, among others. These insights provide a comprehensive overview of the Romanian microprocessor market, offering crucial data for companies operating in this industry to make informed decisions and develop effective strategies.

German Firms in International Trade: Evidence from Recent Microdata

Abstract In this paper, we zoom in on the firm level of German merchandise foreign trade, using a novel data base with information on the export and import value by firm, country, product and year for the period 2011–2019. Problems arising from the consolidated reporting of taxable entities and the reporting thresholds present in intra-EU trade have been largely eliminated through redistributions conducted by DESTATIS. Using the data, we examine how global German firms are by looking at the joint distribution of the number of products they trade and the number of countries they trade with. Moreover, we examine the importance of firms mainly engaged in trade intermediation, as opposed to production. Most importantly, we provide a rich description of heterogeneity among German firms by decomposing their trade relationships into intensive margins (value of trade) and extensive margins (number of firms, products and countries). We describe the distributions for each margin, distinguishing intra-EU and extra-EU trade as well as different firm types (producers, wholesalers, retailers). Finally, we reveal strong positive correlations between and within importing and exporting margins, supporting the presence of firm-level complementarities implied by recent theory.

Economic growth, trade, and greenhouse gas emissions in the european union - investigating pollution leakage

Methods. This research employs econometric modeling and panel data analysis to investigate the intricate relationship between economic growth, environmental policies, and greenhouse gas (GHG) emissions within the European Union (EU). Panel data from 27 EU countries during the period from 2008 to 2021 is used to assess the impact of various factors on GHG emissions, including per capita GDP, primary energy consumption, renewable energy share, technological development, and extra-EU trade. Results. The study reveals that there is a positive correlation between GDP per capita and emissions, suggesting that the EU has not yet reached full decoupling of GDP growth and growth in GHG emissions. Increased primary energy consumption is associated with higher emissions, while a greater proportion of renewable energy sources is linked to reduced emissions. Technological advancements are found to mitigate GHG emissions. Importantly, the research uncovers a positive relationship between extra-EU trade and emissions, indicating the pollution leakage through trade. Novelty. This study contributes to the literature by offering a comprehensive examination of the dynamics between economic growth, changes in energy consumption, technological advancement, trade patterns, and GHG emissions within the EU. A more specific international trade variable is introduced into the model – the trade balance of EU countries with the outside EU countries. It explores the concept of pollution leakage, shedding light on how changes in foreign trade may impact emissions levels. Practical Value. The findings have significant policy implications, highlighting the need for a holistic approach to environmental policymaking within the EU. The study emphasizes that while progress has been made in adopting cleaner technologies and supporting renewable energy, challenges remain, including the potential for pollution leakage through international trade. This insight underscores the importance of globally impactful environmental policies and international cooperation to address GHG emissions effectively.

РОССИЙСКИЙ ЭКСПОРТ И ИМПОРТ: ДВУСТОРОННЯЯ АСИММЕТРИЯ В СТАТИСТИКЕ ТОРГОВЫХ ПАРТНЕРОВ

The study was conducted to assess the discrepancies in the statistical accounting of Russian exports and imports of 50 partner countries in terms of trade relations for the period from 2012 to 2019. The work is based on the statistical data of Federal Customs Service of Russia, the database of the International Monetary Fund “Direction of Trade Statistics”, the data of Eurostat “Intra-and Extra-EU Trade” and the CIS Statistical Committee. Statistical methods of analysis were used: calculation of indicators of variation, dynamics, structure, correlation analysis, nonparametric tests for assessing differences between groups. The novelty of the study lies in the use of the indicator of relative export asymmetry to assess discrepancies in the reflection of export and import operations, which is calculated on the basis of the average value between Russian exports and imports of the partner country. This indicator does not give preference to either Russian or partner country accounting. The hypothesis put forward about the dependence of the magnitude of relative asymmetry on the volume of transactions with goods was not confirmed. Discrepancies in the statistical reporting of countries participating in foreign economic activity determine the factors associated with the peculiarities of accounting for foreign trade transactions. Differences in relative asymmetry depend on the country's membership in a particular group. It was most pronounced in the reflection of export operations in non-CIS countries, least of all - in the CIS countries. The level of relative export asymmetry in the period from 2012 to 2019 changed statistically significantly for all groups of countries: in the EU countries and other far-abroad countries it decreased, in the CIS countries it increased.

The circular economy in Romania and in the EU Member States

Abstract The transition to a circular economy could bring many benefits, such as: Reducing the pressure on the environment, improving the security of supply of raw materials, increasing the competitiveness of businesses, stimulating innovation, boosting economic growth and not least creating new jobs. The aim of the work is to highlight the situation of Romania compared to the Member States of the European Union as regards indicators specific to the circular economy. To achieve this aim, the following indicators have been analyzed: Trade in recyclable raw materials, circular use rate of material, municipal recycling rate, and private investment in circular economy sectors, both at Romanian level and across all EU Member States, in the period 2010-2020. The countries with the largest amounts of recycled raw materials are Germany and the Netherlands with more than 1,5 million tons in 2020 and the country-wide extra-EU trade in recyclable raw materials was 25,2 thousand. The Netherlands, Belgium and France are the leading figures for the use rate of recyclable metals. However, the highest recycling rate was registered by Germany with 67%, with Romania among the last countries.

Poland’s Extra-EU Trade After the EU Accession

When Poland joined the European Union (EU) on May 1, 2004, it transferred its national competences in the field of external trade policy to the EU institutions. As a result, on the one hand, as of that date Poland may neither change duties on goods imported from outside of the EU, nor may it conclude trade agreements with third countries. Nowadays, Poland’s intra-EU trade has reached ca. 65-75% of its total foreign trade at the expense of the exchange with the rest of the world. Although the aforementioned numbers are high, they have not changed substantially since Poland’s accession to the EU. However, due to the legal circumstances and limited national competences in the shaping of external trade relations, one could expect that geographic and product structure of Polish foreign trade havr changed and reshuffled over the last few years. Therefore, the article aims to identify changes in both directions and products in Poland’s extra-EU imports and exports since the EU accession. To this end, we analysed changes in the value of Poland’s foreign trade with partners from outside of the EU as well as some indices that show the concentration of Poland’s trade and similarities or differences to the EU average. In order to get a closer look at Poland’s position, we compared the aforementioned indices to those reported for other Visegrád Group (V4) countries. We examined changes that took place in the period of 2004-2019 and have identified trends in Poland’s extra-EU trade that provide evidence of its greater similarity to the EU average, an effect of EU integration and higher diversification in the mix of partners from outside the EU. 

The Disruptive Effects of COVID-19 Pandemic on the Dynamics of EU Macroeconomic Indicators and on Essential Supply Chains

As evidence shows, in the early stages of the pandemic, medical services were overwhelmed by the large number of COVID-19 cases that far exceeded both initial predictions and logistic capacity. To decelerate and contain the spread of the virus, the European Union, like all other great economic powers, attempted to provide a symmetrical response. Thus, curfew measures were imposed in order to restrict mobility and isolate the population from the COVID-19 hotspots. These measures could be associated to widespread contagion effects in the economy, a deterioration of the public finances and a distortion of many supply chains, some of them critical for the EU. The main aim of this paper is to provide a more objective and comprehensive picture of how the European Union economic landscape has been affected by the coronavirus pandemic. In this regard, the author analyses, using some of the most relevant databases, the manner in which the COVID-19 pandemic has influenced, at a macroeconomic level, the dynamics of production, public spending, private investment, consumption and intra- and extra-EU trade. Further, the second aim was to analyse the directions proposed by the European Union for the post-pandemic economic recovery. Finally, the author underlines the need to focus more on the security of supply for essential materials in dealing with future crises, such as climate change. The research is mainly phenomenological in nature and, with the help of the positivist dimension, the author captured the most representative and useful correlations and causal relationships resulting from the analytical approach used in this paper.

Does the European Single Market Exist in the Era of a Coronavirus Pandemic? The Case of Intra and Extra-EU Trade in COVID-19-related Products

The COVID-19 pandemic has been an extraordinary event for the EU Member States and a period wherein EU legislation and the efficiency of EU institutions have been put to the test. The crisis triggered by the decisions made by governments in Europe (which were motivated by their wishes to protect the health and lives of their peoples and to satisfy the rapid demand for drugs, personal protective equipment, and medical devices) disrupted market forces. Although most of these measures were based on both domestic and EU legislation, they seriously hindered the smooth functioning of the EU Single Market, including the free movement of goods. This paper aims to find out whether EU legislation succeeded in coping with the challenges triggered by COVID-19 in the field of international trade and whether measures taken by the European Commission with a view to complying with the rules of the EU Single Market adequately took care of the needs stemming from the COVID-19 outbreak and whether it properly tackled protectionist instruments adopted by the Member States. We have focused on international trade and the free movement of goods within the EU as they both constitute the cornerstone of EU economic integration. We found that although EU legislation was not tailored specifically for the times of a COVID-19 pandemic, in the area of international trade (including intra-EU trade), as well as in the field of placing goods on the market, it provided extraordinary solutions. Apparently, the explanations and guidelines provided by the Commission have limited the scope of individual protectionist and interventionist actions of the Member States.

Intra-EU vs. extra-EU trade in ICT services

Abstract The position of information and communication technology (ICT) services is growing in the European Union (EU) trade, however to different extend in different EU countries. The article aims to identify trade positions of the EU Member States in intra-EU trade and extra-EU trade in ICT services and to assess changes that have taken place in the years 2013–2018. The importance of the EU Member States in trade in ICT services is assessed, followed by the analysis of their trade positions in terms of selected indices. We discovered that countries of the highest importance for the intra-EU and extra-EU trade in ICT services are not holding the best positions in trade in this area, except for Ireland. Additionally, leaders in ICT services trade do better in extra-EU trade rankings than in the EU Internal Market, since the distance does not matter to business operations consequent to the digitalization of economic activities.

Impact of New Member Accession to the European Union on Food Trade

Purpose: The main focus is on the export and import of agricultural products in the EU in the years 2002-2017 outside the EU (extra-EU). Design/Methodology/Approach: This paper investigates the impact of EU (European Union) enlargement on food trade using descriptive statistics. First, EU-28 exports, imports, and trade balance of agricultural products outside the EU (extra-EU) are presented for 2002-2017. Findings: The trade balance between EU countries for food, beverages, and tobacco are also presented. Accession has led to the elimination of trade tariffs and accelerated improvements in trade. The most exported products by EU countries were alcoholic beverages (spirits and liquors, wine, and vermouth), bakery products, and wheat. Most of the export of agri-food products is directed to other EU countries, Russia, China, and various countries in South America, Africa, and Asia. Imports to EU countries comprised mostly of vegetables and fruits, coffee, tea, cocoa, and various fish products. Practical implications: The results will fill in the gap concerning the food trade of agricultural products in the EU. Originality/Value: The new information about extra EU trade of agricultural products and a GARCH (Generalized Autoregressive Conditionally Heteroscedastic) model was presented.

Europeanization vs. globalization? A deeper look into income and employment embodied in intra-european trade

Production processes are nowadays increasingly global, implying interdependent structures linking goods, processes and countries. Traditional economic blocks and sectoral intra-country linkages coexist with increasing worldwide dependencies. Recent literature supports the hypothesis of a new globalization process taking place in the late 1990s and the 21st century, centred on the consolidation of increasingly competitive macro-regions at a global level, with a growing specialization of countries within them. We propose a multiregional input-output (MRIO) model of the European Union (EU) to analyse whether the generation of employment and income in Europe in recent decades can be defined as a process that is mainly regional or global (involving countries within the region versus countries outside Europe). Our results show that intra-EU trade is an important factor contributing to income and employment growth, more oriented to intermediate inputs in the same way as extra-EU trade, despite the fact that some European countries are more specialized in final goods, mainly driven by high-income EU countries.

Correction to: Services versus goods trade: a firm-level comparison

In the original publication of the paper, the below lines were wrongly publishes on page 22 as: Over that period Belgian firms were obliged to declare to the NBB any service transaction above 12,500 euros (9000 euros from 1995 to 2001) in which the counterpart was a foreign entity, without any difference between intra-EU and extra-EU trade.

L’internationalisation des marchés en productions animales

Les productions animales représentent 16 % du commerce agroalimentaire international. Le déséquilibre croissant entre l’offre et la demande de produits animaux dans les pays asiatiques où la consommation progresse, surtout en Chine, stimule les échanges au bénéfice des grands pays exportateurs que sont l’Union européenne (UE), les États-Unis, la Nouvelle-Zélande, le Brésil et l’Australie. Si cette évolution offre des opportunités commerciales pour les pays structurellement excédentaires, les achats ne sont pas toujours réguliers d’une année à l’autre et la concurrence par les prix est très forte, même si certains pays ont des exigences qualitatives. L’UE, qui est excédentaire en produits laitiers et en viande porcine, mais déficitaire (en valeur) en viande bovine et en viande de volailles, est le premier exportateur mondial de productions animales (avec 22 % du total, hors commerce intra-UE en 2016). En utilisant les données statistiques des douanes (BACI et COMEXT) de 2000 à 2016, cet article traite de l’évolution du commerce en productions animales. Il présente l’évolution du commerce international pour différents types de biens (produits laitiers, viande bovine, viande porcine, viande de volailles) et met en évidence les trajectoires commerciales des principaux pays déficitaires (Chine, Japon et Russie) et excédentaires (Inde, Australie, Nouvelle-Zélande, Brésil, États-Unis et UE).

The Water Footprint of Wood for Energy Consumed in the European Union

The European Union (EU) aims at increasing the share of renewable energy use, of which nearly half originates from wood sources currently. An energy supply from wood sources strongly relies on green water resources, which are limited and also essential for food security and terrestrial biodiversity. We have estimated the water footprint (WF) of wood for energy consumed in the EU-28 (WFwec) by combining data on energy produced from wood sources in the EU per member state for the year 2015 from the EU energy reference scenario 2016, extra-EU trade in fuelwood and charcoal, and country-specific estimates of the water footprint per unit of wood. We find that the WFwec is large (156 × 109 m3/y), 94% of this footprint is situated within the EU, and it is almost exclusively related to green water (99%). Adding WFwec to the WF related to the EU’s consumption of agricultural and industrial products as well as domestic water use (702 × 109 m3/y) signifies an increase of 22% to 858 × 109 m3/y. We show that over half of the internal WFwec is in member states that have a high degree of green water scarcity and hence very limited potential left to sustainably allocate more green water flows to biomass production. The results of this study feed into the debate on how the EU can achieve a sustainable and reliable energy supply. Policies on energy security should consider that increased use of wood or other biomass for energy increases the already significant pressure on limited green water resources.

THE EU FOREIGN TRADE IN GOODS AND SERVICES AND THE NEW PROTECTIONIST POLICY OF THE US

About 2/3 of the EU trade is the intra-EU trade, but the extra-EU trade pro­vides additional demand for the European products and is a source of necessary supplies. It is especially important for some products and services. Despite a de­creasing trend, the US continues to be an important trade partner for the EU. But prospects for transatlantic integration turned into rise of protectionism, which wor­ries the EU politicians. In the paper we assess the fiscal and protectionist role of tariffs for the EU-US bilateral trade and the determinants of the US imports.

Assessing the Role of Latvia's Participation in Indo-EU Value Chains

The global trade scenario is fast changing with complexities involving multi-nationals and value chains. Likewise, EU Member States trade has been more intra-EU than extra-EU; however, the Member States have now started looking at extra-EU trade partners.A study of assessment of Latvia's trade potential with EU Member States shows that it has reached high levels of trade with its neighbouring countries and needs to look beyond its present trade partners.Utilising basic gravity theory this article tries to explain the possibility of creation of trade by Latvia as a Member State of the EU, with special focus on the participation of Latvia in Indo-EU Value Chains ( Indo -EUVCs) and the possible role Latvia can play in future.

Does Antidumping Address 'Unfair' Trade? The European Union's Experience

While antidumping laws were originally developed as the international trade analogue of domestic competition or antitrust policies, most vestiges of competition policy disappeared early in their evolution. Nonetheless, the formal justification for modern antidumping practice remains founded on the bedrock of countering “unfair” trading practices and preserving competitive markets. Consistent with this formal rationale, antidumping law has been replaced by competition policy mechanisms in some instances, such as in the European Union’s internal market and in a number of bilateral free trade agreements. We update and consolidate a relatively thin literature that has examined this issue formally. Adapting the established methodology, we develop a “likelihood of predatory practice” index which categorizes antidumping cases in line with the probability that they indeed constitute cases of predatory behavior which might legitimately have triggered competition policy actions had they occurred in a domestic market context. We apply this index to the European Union’s use of antidumping proceedings in its extra-EU trade over the period 2001 to 2010. Overall, we find more instances than previous studies where the EU antidumping measures address cases which would attract competition policy actions, although these are still a minority.

The EU-Korea Free Trade Agreement: Making of a "Deep" Free Trade Agreement

Korea a dynamic newly-industrialized economy, and the EU, the largest economic block have negotiated an FTA. It came in force on July 1, 2011. Before the FTA was formed, the two were important trading partners of each other. Korea has enjoyed a trade surplus in merchandise trade vis-à-vis the EU. An overwhelmingly large proportion of EU-Korea trade is in manufacturing products. The EU took has had a surplus in trade in services vis-à-vis Korea. The FTA protocol has specified lowering of tariffs and NTBs in a phased manner over a transition period. The FTA had sector-focused negations. Technological standards and environmental considerations are a part of the FTA protocol. It has a comprehensive coverage and in trade economics parlance known as a “deep” regional integration arrangement. The impact of the FTA on the two partner economies would be positive but small. The empirical analyses predictably concluded that of the two, the FTA will benefit Korean economy relatively more in terms of welfare gains, while the EU economy will only gain modestly. An important fact that will influence the welfare gains is that the magnitude of the EU trade with Korea; it is only 2 percent to 2.5 percent of total extra-EU trade. Sectoral impact of the FTA will be important for both the EU and Korea and this article elucidates which sectors will benefit more than others. To protect domestic producers and markets from sudden surge in imports, there is a provision of a bilateral safeguard clause in the FTA.