The trade liberalisation process, which accelerated with the conclusion of the Uruguay Round, means that non-tariff barriers like quota will be abandoned, and that tariff barriers will be reduced. In other words, the traditional projectionist measures will diminish.
Although in the short-term, the relative advantage of developing countries, which accrues to them through the preferential trade schemes, is lowered due to the general lowering of trade barriers, in the long-term, developing countries will also benefit from a more liberalised global trade regime.
However, despite the trade liberalisation, access to the European market by exporters in developing countries and countries in transition may well become more difficult, due to the fast increasing regulations in the field of safety, health, quality and environment.
Image Source: councilforthenationalinterest.org
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The focus is on the well-being of the consumer, now and in the future. In the past, tariff and non-tariff barriers generally emerged as a concern for producers. Consumer and environment protection has replaced the producer and employment protection.
The new generation regulations bear a relevant significance to the marketability of goods, from developing countries and countries in transition, on the EU market. Generally, EU-wide minimum levels of requirements have been set or will be set in the years ahead. Individual member states are allowed to set additional requirements.
In practice, this means that any product that conforms to the minimum requirements is allowed free movement within the EU. If any national government sets higher requirements, the local producers will have to satisfy them. Imports which satisfy the minimum EU levels will not face the higher demands.
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Still, as consumer consciousness increases, quality becomes more important and consumers may prefer those products which satisfy the higher standards. Overall, it is advisable to fulfill the highest requirements.
In this respect, one also has to realise that it is not the only superimposed legislation by governments which determines the high standards for safety, health and the environment.
The consumer is becoming more and more critical towards products and their potential harmful effects. As referred to earlier, the ‘green’ and ‘healthy’ consumer, with an appeal to ‘light’; and responsible products constitutes an increasingly important market segment.