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Advantages And Disadvantages Of Economic Partnership Agreement

Advantages And Disadvantages Of Economic Partnership Agreement

In his presentation, Sir Ronald stated that he understood Nigeria`s reluctance to sign the EPA in its current form. He stressed that although EPAs are presented as “regional,” they are in fact between the EU of 28 nations and each of the states of Africa, the Caribbean and the Pacific. “This means,” Sanders said, “that the idea of reciprocity entrenched in the agreements gives the EU an unfair advantage. The European Union (EU) implemented economic partnership agreements in January 2008. The agreements aim to gradually reduce tariffs and other barriers to trade between the EU and african, Caribbean and Pacific (ACP) countries. Supporters of the Economic Partnership Agreements say the pacts will help boost economic growth in ACP countries and increase the competitiveness of African countries as well as Caribbean and Pacific island states. Just as the benefits of an economic partnership are distributed among the various partners, they are also their losses. No partner will bear the primary burden of financial risk. Knowing this fact can help the first partners you want to recruit on board and join the partnership. The financial capacity of a partnership becomes clear when each partner draws resources to secure funding. As an entity, a partnership may hold two or three times the guarantees necessary to secure loans or to acquire equipment and services that benefit the entity as a whole.

The Economic Partnership Agreements are a liberalised trade between the EU and the ACP countries, which allows ACP countries to export more goods to European consumer markets and opens up ACP countries to more goods imported from the EU. Proponents of the agreements, such as the European Commission`s Directorate General of Trade, argue that increased imports will provide cheaper raw materials from Europe and promote economic diversification in ACP countries. Many ACP countries are too dependent on a limited number of raw materials and lack diversified economies. If each partner`s input is given before making important decisions, many financial and business mistakes can be avoided. In addition, the stability of the Economic Partnership Agreement may be compromised if each partner does not rule on trade issues. The partnership will weaken a little each time management fails to agree on important issues that affect it. To clarify how the business works, you add instructions on how business decisions are made to the partnership agreement.

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