Re: Still not going well for Brexit is it???
Originally Posted by
itsme
->
Where is the evidence that France and Germany are advantaged in EU trade deals.
Sorry, there isn't, itsme. First of all the EU thinks and functions in terms of EU citizens, not french, german, dutch. But I've found a text that reflect the current standard.
Benefits of EU trade to consumers
The academic literature highlights three main benefits from trade, of which two directly and one
indirectly contribute to benefit European consumers and their welfare:
1. Decrease in prices for the same range of goods (direct);
2. Increase in the variety of products (direct);
3. Increase in the growth rate (indirect).
The increased competition engendered by FTAs decreases the price of goods, as new and larger imports
incentivise EU firms to adjust their price policy and make their production more efficient and thus less
costly. For example, they can invest more in research and development (R&D). Therefore, the creation
of FTAs could in certain cases raise consumer purchasing power.8 Furthermore, FTAs can help to break
monopolies, also leading to a decrease in product prices. The larger variety of products available in the EU is due to increased trade flows. This benefit of trade
gives consumers the opportunity to choose from a larger pool of quantitative and qualitative factors for
the same sort of goods. On these grounds, the economic gain for the average EU consumer is in the
range of €600 per year in the EU.
The FTAs that are currently under negotiation can, according the European Commission's estimates,
increase EU GDP by more than 2 %, a sum equivalent to €250 billion annually.9 This represents the size
of the Danish economy. Such a boost in growth is mainly driven through an increased search for
innovation because of greater economic competition. The innovation process is accelerated, with higher
investments in capital and in R&D, and also increased diffusion of technology. Resting on the
endogenous growth theory, which proposesthat investment in capital, knowledge and innovation foster
growth with significant positive side effects, higher trade flows due to FTAs foster not only growth but,
as a consequence of growth, lead to an increased level in living standards for EU citizens.
http://www.europarl.europa.eu/thinkt...RI(2017)603269