Trading patterns within the EU Trading patterns within the EU

Trading patterns between the EU and Trading patterns between the EU and

other markets other markets

Irish trading patterns and how joining the Irish trading patterns and how joining the

EU influenced the Irish economy EU influenced the Irish economy

How EU policy and funding impact the How EU policy and funding impact the

Irish economy Irish economy

44 Ireland and the European UnionIreland and the European Union44 Ireland and the European UnionIreland and the European Union

EU

One of the world’s largest trading blocs One of the three key global economic areas known as the global

triad Accounts for over 20 per cent of world trade Population: over 500 million Currently: 27 member states

A social, political and economic union of these 27 member states Originates from the ECSE and EEC

Aim: remove economic barrier, create free-trade zone Common market: capital and goods move freely Single market: customs duties abolished

Chapter 4: Ireland and the European Union

Growth in EU trade

The Treaty of Rome: 1957, established a common market The Common Transport Policy: transport and communication links The Single European Act: 1986, Maastricht Treaty, single EU market The common European currency: 2002, euro introduced

The EU and Trade Extra-EU trade: trade with non-member countries Intra-EU trade: trade between member states

Chapter 4: Ireland and the European Union

Extra-EU trade

EU accounts for about one-fifth of the world’s trade EU is the biggest importer and exporter in the world US is the EU’s main trading partner 20 per cent of EU exports to non-members go to US 13 per cent of imports from non-members come from US China and Russia: have become major trading partners

Chapter 4: Ireland and the European Union

Intra-EU trade

More important than extra-EU trade Accounts for more than two thirds of EU trade Some EU members: amounts to over 80 per cent of their total trade Germany: dominates EU trade Germany: 27 per cent of intra-EU exports and 20 per cent of intra-EU

imports

Chapter 4: Ireland and the European Union

Ireland’s trade with EU

Ireland joined the EU in 1973 EU has had a large impact on

Ireland’s trade Free trade policy: large factor in the

development of Ireland’s economy Steady growth in trade Increases in both imports and

exports Irish trade has become less

dependent on Britain

Chapter 4: Ireland and the European Union

Changes in Irish trade

Before EU: Economically dependent on Britain Neo-colonial relationship with Britain Exported raw materials and agricultural produce

to Britain Britain supplied the majority of Ireland’s imports

After EU: Trade with other EU members increased Economic reliance on Britain decreased

MNC investment: Growth in manufacturing since 1960s

Chapter 4: Ireland and the European Union

EU influence on Irish Economy – CAP

CAP: introduced 1962 to support the EU agricultural sector Objectives: control production, guarantee prices, improve farm

income Issues: food surpluses, propping up of food prices CAP reforms: decoupling, income supports, food safety, rural

development

Chapter 4: Ireland and the European Union

EU influence on Irish Economy – CFP

CFP: introduced in 1983 to manage the fishing industry Objectives: sustainable stocks, prevent overfishing, R&D TAC: quotas to conserve fish stock Regulations: quotas on vessels, regulation of equipment, control

of fleet sizes

Chapter 4: Ireland and the European Union

EU influence on Irish Economy – Structural funds ERDF

ERDF

Established 1975

To promote regional development

Supports investments: infrastructure, research and innovation,

environmental protection, job creation

Chapter 4: Ireland and the European Union

The Cohesion Fund

Cohesion Fund Established 1992 To provide additional funding to the poorest EU countries

Irish funds Development of roads, airports and seaports

Chapter 4: Ireland and the European Union

ESF

ESF

Established 1957

To improve social cohesion and economic well-being

Supports training, job creation and inclusion of minority groups

Chapter 4: Ireland and the European Union