Europe and the European Union
The European Union (EU) consists of 27 countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, the United Kingdom and new members Hungary, Poland, Estonia, Lithuania, Latvia, the Czech Republic, Slovakia, Slovenia, the Mediterranean Island of Malta and Cyprus, Bulgaria and Romania.
The EU Presidency rotates between each member country, taking turns for six months at a time as chair of EU meetings and representing the European Union at international events.
On October 29, 2004, 25 European government leaders signed the European Union's first constitution. The measure was written to establish a process to select a continent wide president and foreign minister, as well as increase the European Parliament's power and influence on issues like agriculture and foreign trade.
In November 2004, European nations began the process of voting for the constitutional treaty. Twelve countries approved the constitution (Austria, Cyprus, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Slovakia, Slovenia, and Spain), but France and the Netherlands both rejected the treaty in national referendums. In response to these “no” votes, EU leaders have put the constitution on hold and are currently considering potential changes to the treaty. All 27 EU member states must approve the measure for it to go into effect.
In December 2007, the Treaty of Lisbon was signed during the European Parliament. Because the "treaty establishing a constitution for Europe" was never ratified, the Treaty of Lisbon was necessary. This treaty's objectives are to make the European Union more democratic by increasing accountability, openness, transparency and participation. The Treaty of Lisbon must be ratified by all 27 members, a process they hope to accomplish by the next European Parliament in 2009.
Negotiations to discuss Turkey's membership in the European Union began in October 2005. The decision held several conditions, including the cessation of talks if Turkey does not continue to improve their record on human rights and democracy, as well as an agreement to curb a potential surge in labor migration out of Turkey upon joining. If the negotiations are successful, Turkey will be the first Muslim member of the European Union, and one of the largest. The accession process is due to end in 2014. Those who support Turkey's membership status believe it can serve as a bridge between cultures, encouraging peace and stability in the region.
Croatia was granted EU candidate status in 2003, and began official accession talks in October 2005 after EU members dropped their concerns regarding the nation's pursuit of war criminals. Officials project negotiations to continue through 2009, with an accession date of 2010.
Beginning with the Treaty of Rome in 1957, the European Economic Community began a process that led to the adoption of standards designed to implement freedom of labor, capital, goods and services. This continues as the cornerstone of the development of the ‘single European market’ instituted on January 1, 1993.
The November 1, 1993, Maastricht Treaty took the European Community even further, creating European citizenship and a three-part framework:
- a detailed plan for economic and monetary union;
- authority for a common foreign and security policy; and
- policies for justice and domestic affairs.
Membership in the single currency, known as the euro, includes Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Britain, Sweden and Denmark have chosen to remain out. On January 1, 1999 governments, businesses and banks started using the euro in their accounting. On January 1, 2002, national currencies were discontinued and euro bills are being used for day-to-day commerce. On March 1, 2002, domestic currencies within the euro zone lost their legal status.
On May 17, 2002 in Madrid, President Ricardo Lagos President of Chile, Spanish Head of Government, José María Aznar, and the President of the European Commission, Romano Prodi, signed a historical agreement between Chile and the European Union. After three years of talks, a pact was struck which frees most of the $7.2 billion of trade between Chile and Europe, including contentious areas like fish and wine.
A proposed Euro-Mediterranean Free Trade Agreement between nations of the European Union and countries of the South Mediterranean is due to be established by 2010. Together with the European Free Trade Association (made up of non-EU member states Switzerland, Iceland, Liechtenstein, and Norway), the Euro-Mediterranean Free Trade Zone will include 600-800 million consumers.
In December 2006, Balkan leaders signed a free trade agreement (the Central Europe Free Trade Agreement, or CEFTA) including Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Moldova, Montenegro, Romania and Serbia (including the UN administered area of Kosovo). Romania and Bulgaria left CEFTA when they became members of the European Union in January 2007. CEFTA consolidates 32 bilateral free trade agreements into one regional agreement. EU Trade Commissioner Peter Mandelson commented that, "CEFTA will replace the spaghetti bowl of regional FTAs in South Eastern Europe with a single agreement that will boost trade and attract investment. The expanded CEFTA will offer real economic benefits to all sides. But it also sends an important political signal. Closer trade relations in South Eastern Europe are a foundation for stability and growing prosperity."
In November 2005, U.S. Secretary of Commerce Carlos Gutierrez headed a U.S. delegation to the first informal EU-U.S. economic ministerial meeting in Brussels, where transatlantic economic integration and shared economic challenges were discussed. Business and government leaders from the United States and the European Union regularly participate in the Transatlantic Business Dialogue (TABD) to discuss priorities for eliminating trade and investment barriers across the Atlantic. The TABD includes senior representatives from companies from the European Union and United States who meet on a regular basis to discuss ways to ease the flow of bilateral trade. Representatives also gather for ‘early warning system’ meetings when potential trade disputes arise.
The EU market represents nearly 490 million people, and has a total GDP of $12.8 trillion. The United States has nearly 300 million people and a Gross Domestic Product of $12.98 trillion.
Total bilateral trade between the European Union and United States was nearly $600 billion in 2007, with the United States exporting $246 billion worth of goods to EU member nations.
California exports to the European Union in 2007 totaled $26.8 billion. California is the top exporting state to Europe, with computers, electronic products and chemical manufactures as our leading export sectors to the region. European Union countries purchase nearly 20 percent of all California exports. For California companies, the single market presents a stable market with huge opportunity.
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