What is the key difference between early and later integration stages?
Early stages REMOVE BARRIERS, later stages CREATE INTEGRATION STRUCTURES.
Does the EU remove national cultures? if not what does it create
it creates an additional layer of integration on top of them.
What does the EU do instead of removing culture?
It combines elements and creates new forms of cooperation.
Why is monetary integration easier than other forms?
Because it is more technical and less linked to culture.
GATS
transborder services modes
difference between mode 2 and mode 4
mode 2 is consumer crosses the border
mode 4 is supplier crosses the border temporarily
Which factor goes through customs?
goods
What do customs controls check?
Origin, content and fiscal aspects of goods.
What is Schengen?
Free movement of people without border controls.
Irregular migration can be a challenge in the EU, why?
because once a person enters the Schengen area, they can move relatively freely across internal borders due to the absence of systematic border controls.
Why does migration create tension within the EU?
Because there is free movement within the Schengen area, while migration control remains a national responsibility, creating tension between open internal borders and national control over who enters and stays.
Why are rules of origin not needed in a customs union?
Because all countries have a common external tariff.
What is special about Turkey’s relation with the EU?
Turkey is part of the EU Customs Union, meaning it must apply the EU’s common external tariffs and follow its trade agreements, but it is not involved in EU negotiations. As a result, when the EU signs a trade deal (e.g. with Canada), Turkey must open its market without guaranteed access in return, creating an asymmetric situation.
Why does Turkey still accept this situation?
the EU is 80% if turkey’s exports and imports.
What do customs controls check?
Origin, fiscal system (VAT), content
What is needed to remove customs controls completely?
Alignment of rules of origin, fiscal systems (VAT), and regulations.
Eurasian Union
The Eurasian Union is a common market between countries such as Russia, Belarus and Kazakhstan, aiming for economic integration. However, customs controls are still needed because countries have not fully harmonised their systems. Customs checks focus on the origin of goods (tariffs, quotas, rules of origin), fiscal systems (VAT), and regulatory standards. Since these are not aligned, customs controls remain necessary.
EFTA, which countries? (4)
A trade association between:
Norway
Switzerland
Liechtenstein
Iceland
all are not EU members
What is the EEA?
An agreement between the EU and some EFTA countries (Norway, Iceland, Liechtenstein) that gives access to the Single Market.
What is the disadvantage for EEA countries like Norway?
They must follow EU rules without having decision-making power.
Why is Norway not in the EU but still part of the Single Market?
Because it is not part of the EEA but they can take part in the single market in exchange for adopting EU rules
Why are customs controls still needed between the EU and Norway?
Because Norway is not part of the EU customs union and does not fully align fiscal and trade policies.
Why do countries like Norway, Iceland and Liechtenstein accept being in the EEA instead of joining the EU?
Because most of their trade (around 70%) is with the EU, so access to the Single Market is crucial for their economies.
Why do the EFTA countries accept that they have to adopt EU rules but do not have decision-making power