How Do Free Trade Agreements Contribute To Globalisation

In the past, the EU was able to negotiate and/or conclude trade agreements without generating much public interest or resistance despite protests against globalisation. However, this has not been the case for the Transatlantic Trade and Investment Partnership between the EU and the United States (TTIP) and CETA. These global agreements have crystallized people`s concern about the impact of globalization on society and the environment, Moreover, the reaction to globalisation has been directed against the European Union, which is seen as an economic priority, rather than ensuring that these objectives are compatible with social and environmental concerns.6 With the proliferation of trade agreements leading to the creation of competing trading blocs, companies are striving to securely access foreign markets and in turn achieve a higher level of economic security and competitiveness. Since the implementation of the agreement, there has been an increase in joint ventures and strategic alliances between U.S. and Mexican companies. Close ties with Canada are also flourishing. The benefits of this teamwork will make the United States, Canada and Mexico more globally competitive at a time when regional trade alliances are becoming increasingly important in the global economy. Finally, we focus on the largest sample of country-specific data available for parts and component trading, in order to empirically examine whether the effects of the different provisions are heterogeneous in countries with different levels of development. We decouple the ptA provisions into two categories based on their relationship to WTO rules (Horn et al.

2010). The Commission defends global trade agreements as an instrument to promote global trade, in line with EU values and standards. It called CETA the most advanced trade agreement24. It is therefore mysterious that it would allow the European model to impose imported values and standards that do not correspond to the preferences of EU citizens. Concerns about the oil sands, most of which are operated in Alberta, Canada, are an example of a possible conflict between high EU environmental standards and trade. European standards for oil sands oil (more polluting than traditional hydrocarbons and, therefore, higher carbon content) were lowered during the CETA negotiations, in contradiction to the EU`s ambitious sustainable development targets25. The theory of fiscal federalism and the principle of subsidiarity tell us that decisions should not be centralized at the supranational level, which are better taken at the national or regional level when there are different preferences between countries or regions. The European model, which aims to make competitiveness and economic growth compatible with social and environmental protection, is essential to the EU`s identity. Global trade agreements have an impact on the shape and sustainability of the European model, at a time when this model is not yet fully consolidated.