A neat bit of analysis here. How far do you imagine regulatory standardization will go?
With the world becoming more a more interdependent, the EU and US have agreed upon signing agreements that would connect the two economies. (Click Here to view article) The agreement was sign to boost air traffic as well as lower air fares. There has been agreements on creating a economic council to over see this agreement which also includes intellectual property, financial services, business takeovers, and the motor industry. The overall aim of this agreement is of course to increase trade but lower the cost of doing so. Another aim is to come to agreements on the changing climate do to human activity. Though the US rejects the EU’s proposition on imposing national emission limits which could cause negative effects on the international economy, the EU does have high hopes that with his agreement there will be a step closer towards emission regulation. This Open Skies agreement will open up US airports to all EU carriers and vice-versa. It will take effect on March 30, 2008. Another agreement, the Open Aviation, has been proposed which would guarantee the movement of investments between EU and US airlines, in which it will allow services without any restrictions.
From a liberal’s point of view this couldn’t have been better! Free trade and cooperation in tackling the climate changing problem shows how the world will unite and every benefiting from absolute gains. By having this agreement, the two economies are connected to one another even greater and promotes higher economic growth as the market for airlines will be able to have transaction was greater ease. But there can be some problem with this as we can see that if two economies are connected when one falls the other also falls. Because the EU and US are connected, it opens to the EU the ability to exploit the airline business and infringe upon local businesses in the US. Although the Open Aviation agreement hasn’t been passed, since foreign businesses have can greatly affect those domestic business, by giving the EU the ability, domestic airlines will be forced to compete internationally. Though globalization is good, if we look at it from a realist point of view things can go wrong.
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I agree that this does seem like a good thing for both countries. However, as far as the emmission regulations, I don’t think that there will be much headway with cooperation as much as I’d like to think otherwise. I recently read an article describing the language used recently between the U.S. and the EU which was intended to inflate the “progress” which was being made. Personally, I agree with that article, which expressed doubts about the actuality of any real progress. I think that the bigger problem (although one country failing is a concern) is about countries doing what benefits them the most and not cooperating to the utmost possible. Not only does this cause problems in the immediate issues, but it also cuases trust problems later on.
By: ccloud on May 7, 2007
at 6:38 pm
I agree with ccloud’s analysis which comes from critics of the liberal theory. Because relative gains will be an issue, states are reluctant to join international institutions. But I would like to add to Cloud’s comment of why the US and EU decided to joined. Based on the democratic peace theory, democratic states tend to not fight with one another. This theory also shows how democratic states tend to trust eachother, more so that other states. This is why the US did not oppose this agreement as much as it would if this was an agreement with a state such as China. This article shows how states with similar ideologies tend to cooperate better than those who have differing views and political systems.
By: youayang09 on May 7, 2007
at 8:45 pm
[…] Description: Here I briefly summarize an article on BBC news on an agreement made by the US and EU. I gave both the benefits and costs of this agreement. After it was released on the class blog, I also responded to a comment that was made on the blog. (Click Here) […]
By: 5 top posts « Who Cares About International Relations? on May 7, 2007
at 8:49 pm
I think this a great step for both countries. I think that throughout the process of globalization that we will increasingly see countries and groups of countries from different areas of the planet working together to increase the benefits of trade. While I think that there will be little progress made within the United States in the next year or so in terms of the environment, I also hope that perhaps a new president will put the environmental issue as one of the top items of their presidential agenda.
Not only do I think that this is great for the EU and the US, but also for the airline industry. This will really force the industry to become more efficient to compete on a much larger scale. The quality of the airline industry in the US has been dropping and there is nothing like a little competition to improve an industry.
By: Sarah on May 10, 2007
at 6:32 am
You have seen it in dozens of romantic comedies, the male or female character has been burned in the past, or has known someone who has, and because of that they do not want to open themselves up to a new relationship… because they just might get hurt again. In the end of all these stories we see the same thing, the character opens up, the relationship works out, and everyone lives happily ever after. Can you guess at the parallel drawn between my romantic comedy and the United States? Not clear yet? Well let me make it plain as day, the US is put in a position where it has a great deal to benefit from a merging with the EU in regard to transportation and airfare. However, the US, or the “conservative” body of the US is urging caution according to the author. So it comes down to the same problem, take the chance and live happily ever after (with maybe a few problems along the way) or stay alone and never experience what the other person [State] has to offer?
True there are problems with globalization, but not forming this type of merger making transit between the two world powers cheaper does not combat globalization; at most it makes something that is happening anyway slightly more of a pain in the neck for the economy class person/business. Companies who have a desire to trade across the Atlantic are going to with or without this, but those companies who are maybe not as well established, or well to do, are going to have a tougher time competing across the pond with the larger companies who are not effected by the higher prices. Overall using the argument that there just might be risks does not seem all that convincing for combating the issue at hand.
By: Eric Peterson on May 16, 2007
at 2:38 pm
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at 6:01 am
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at 11:29 am