Free Trade EU | Economics Dissertations

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Free trade and competition for the EU

Is it fair and in the interests of free trade and competition for the EU to impose quotas on the Chinese textile industry or is the EU guilty of protectionism?

The trade relationship between the European Union and China is one that has existed for several years now. However, this relationship is one that has had its share of conflicts over the past 15 years or so, with regard to the volumes traded between the two regions. Since China entered the WTO in December 2001, trade barriers between China and the European were removed in order to ameliorate trade between the two. However, the textile and clothing product volumes that were exported from China to the EU began hurting the domestic markets in the EU.

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It was due to this occurrence that the EU decided to re-apply quotas on China. In accordance with WTO principles, this is apparent violation of a developing country’s products. However, when China entered the WTO, the agreement asserted that a member may re-impose quotas on China for one year if that member’s markets were being hurt through China’s export volumes of textile and clothing products.


If one looks back around a hundred or more years ago, life was certainly simpler than it is today. This refers to the fact that there have been a plethora of developments that have impacted everyone. The developments that one may consider in particular are technological ones as well as intellectual ones. Some may even go as far as asserting that each of these drives the other. However, because of more awareness and technological development, life today is more complex than it was before. In every field one considers today, things are generally more complex. The business environment is a good example, as it is one that is influenced by an array of newer ideas as well as new technology.

The technology mentioned here refers to the inventions or innovations that have made globalization possible. Business in today’s world has to consider this macro economical phenomenon, as it is a major part of the business today. Globalization does not only affect international trade, but also has its impact on trade within each country. In addition totalling about the unavoidable globalization aspect of business today, it is important to focus on business ideas and relationships that forma major part of them. An example of trade relations is the trade relationship between Chin and the European Union.


The trade relationship between the European Union and China is an interesting and important relationship to study because of the fact that it has a long history behind it. In addition to this, it is an important relationship to study because it helps to expose aspects of competition,

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