REGIONAL COOPERATION AND ECONOMIC INTEGRATION

REGIONAL TRADE AGREEMENTS AND REGIONAL COOPERATION
distribution of the achieved liberalized trade benefits then it might be understandable the
following facts.
1. The reasons for slow progress in Doha agenda implementation – the problem is in
different size of expected benefits for more and less developed nations, based on
differences of GDP levels and productions structure causing internal distribution
of trade benefits.
2. Interest for trade liberalization expectedly could be stronger in nations where
majority of population might expect free trade benefits – normally that would be
expected to be countries with relative abundant labour force.
3. In case of countries with similar levels of GDP free trade positive effect are not
so much uneven, causing that interest to liberalize trade is generally supported.
Especial in the case of similar production structure presuming similarities in
abundance of production factors.
The reasoning in the point 1 seems well supported by arguments and problems accompanying
efforts to finalize the Doha agenda liberalization program (Doha...). Conclusions suggested
in point 2 are a bit confusing. In fact the most populated nation’s which no doubt have relative
abundance of labour are not front runners in the efforts for multilateral trade liberalization.
Why so might have a few different explanations. On is that real impact of labour masses
in labour reach countries (BRIC for instance) on political agendas of the governments is
not really strong due to political tradition - specific and new democratic structures in such
societies. Countries with relative abundance of capital in opposite are not showing strong
labour/workers opposition to trade liberalization. In present crises we see same reservation
as explained above when national government are not willing to help transitional countries
although hey are part of EU. In many cases in more developed nation labour force is not
openly against trade liberalization although it threatens their relative incomes and in longer
run as well their employment. Incomes are already proportionately high and will be with
more trade additionally increased although less that incomes of the owners of the capital.
In longer run they will have to seek new employment due to economy restructuring. In
many countries – especially EU social support programs offer help during employment
restructuring. Till recently in developed economies the labour force has not seen effects of
trade opening as substantial problem and danger to their incomes and employment.
Conclusions suggested in point 3 above are consistent with the findings of different
analyses searching for the answers when or at what conditions regional trade cooperation
– concluding of EIAs – might be more beneficial in increasing GDP (El-Agraa, 2004).
More developed countries – countries with higher GDP – and well developed production
structure are potentially partner who can benefit more in case of EIAs introduction. EU in
practice intends to implement such theoretical concept. The Copenhagen European Council
of 21 and 22 June 1993 defines the economic and political conditions for accession to the
European Union. Within the Copenhagen enlargement criteria one is related to specific
market development level of candidate countries. It demands functional market economy,
which among other requires certain level of economic development. Often this criterion
within last enlargements was not really applied in practice. If this criteria in the future will
play its role than for candidate and accessing countries to the EU the success in developing
their economies and markets as the bases for EU joining is extremely important.
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