European Union & Brexit Prof. Dr. Kab-Soo LEE International Trade Department Pusan National University

What my friends think I do. What my parents think I do What my friends think I do. What my parents think I do. What society think I do. What my professors think I do. What I think I do. What I actually do

Part 1.

500 million people – 28 countries The European Union : 500 million people – 28 countries Member states of the European Union Candidate and potential candidate countries

Founders New ideas for lasting peace and prosperity… Konrad Adenauer Alcide De Gasperi Winston Churchill Robert Schuman Jean Monnet

The EU Symbols The European anthem The European flag Europe Day, 9 May The motto: United in diversity

Same root but different fruit Gallian : matres, matrebo 25 official languages Same root but different fruit Sanskrit : matar French : mère Greek : μητέρα (mȇtȇr) Gallian : matres, matrebo Latin : mater German : mutter English : mother Irish : moder Italian : madre 유럽의 많은 언어들이 라틴어나 게르만어에서 갈라져 나온 경우가 많다.

Enlargement: from 6 to 28 countries 1952 1973 1981 1986 1990 1995 2004 2007

The big enlargement : Healing the division of Europe Fall of Berlin Wall – end of Communism EU economic help begins: Phare programme Criteria set for a country to join the EU: • democracy and rule of law • functioning market economy • ability to implement EU laws Formal negotiations on enlargement begin Copenhagen summit agrees enlargement 10 new EU members: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 41989 41992 41998 42002 42004 42007 Bulgaria and Romania join the EU © Reuders 42013 Croatia joins on the 1st of July

Candidate and potential candidate Area (1000 km²) Population (million) Wealth (gross domestic product per person) Croatia; EU member since 2013 56 4.4 15 200 Bosnia and Herzegovina 51 3.8 7 400 Montenegro 13 0.6 10 500 Iceland 100 0.3 28 100 Kosovo under UN Security Resolution 1244 11 2.2 : The former Yugoslav Republic of Macedonia 25 2.1 9 100 Albania 27 3.2 6 500 Serbia 77 7.3 8 300 Turkey 770 73.7 13 000 The 28 EU countries together 4 234 502 25 200

The treaties – basis for democratic cooperation built on law 1952 The European Steel and Coal Community 1958 The treaties of Rome: The European Economic Community The European Atomic Energy Community (EURATOM) 1987 The European Single Act: the Single Market 1993 Treaty of European Union – Maastricht 1999 Treaty of Amsterdam 2003 Treaty of Nice 2009 Treaty of Lisbon 경제 통합 먼저 : 유럽 통합 운동은 서로 앙숙이던 프랑스와 독일의 화해에서 시작되었음. 석탄이 풍부한 독일과 철광이 풍부한 프랑스가 경제적으로 협력하고 그 다음해에 이탈리아와 벨기에, 룩셈부르크, 네덜란드까지 참여하면서 유럽 석탄 철강 공동체 (ECSC)가 가 만들어 짐. 이 것이 성공적으로 끝나자 프랑스, 서독, 이탈리아, 네덜란드, 벨기에 등의 나라가 유럽 경제 공동체를 만들고 1967년 드디어 유럽의 경제 통합을 목적으로 하는 유럽곧통체 (EC)가 만들어졌음.

The Treaty of Lisbon - taking Europe into the 21st century The Treaty will make the European Union: More efficient Simpler processes, full-time president for the Council, etc. More democratic Stronger role for the European Parliament and national parliaments, "Citizens Initiative", Charter of Fundamental Rights, etc. More transparent Clarifies who does what, greater public access to documents and meetings, etc. More united on High Representative for Foreign Policy, etc. the world stage More secure New possibilities to fight climate change and terrorism, secure energy supplies, EU Army etc. 2005

Binding for all the EU's activities 54 articles under 6 titles: The EU charter of fundamental rights Binding for all the EU's activities   54 articles under 6 titles: 4 Dignity 4 Freedoms 4 Equality 4 Solidarity 4 Citizens' rights 4 Justice 유럽이라는 대륙 이름도 신화에서 탄생을 했음. 에우로페 (Europe)는 그리스 신화에 나오는 여신다. 제우스가 아름다운 에우로페에세 한눈에 반해 황소로 변해 그녀를 태우고 다녔는데 이 때 돌아다닌 지방을 그녀의 이름을 따서 유럽(Europe)이라고 부르게 된 것. 에우로페는 죽은 위 여신으로 숭배되었고, 황소는 하늘로 올라가 황소자리가 되었음. 에우로페는 유로화를 비롯해 유럽 이사회등 여러 곳에 유럽의 상징으로 표현되고 있다.

Population in the world

The area of the EU compared to the rest of the world Surface area, 1 000 km² EU China Japan Russia United States 16 889 9327 9159 4234 365 India 3287

How rich is the EU compared to the rest of the world? China Japan Russia United States 12600 5200 4200 1300 10800 25200 5800 26300 12 000 37100 Size of economy: 2011 gross domestic product in billion of euros Wealth per person: 2011 gross domestic product per person India 2600 1200

How big are the EU countries? Surface area in 1 000 km² France Spain Sweden Germany Poland Finland Italy United Kingdom Romania Greece Bulgaria Hungary Portugal Austria Czech Republic Ireland Lithuania Latvia Slovakia Estonia Denmark Netherlands Belgium Slovenia Cyprus Luxemburg Malta 544 506 410 357 313 305 295 244 230 131 111 93 92 83 77 68 63 62 49 43 34 30 20 9 3 0.3

How many people live in the EU? Population in millions, 2014 502 million total 81.7 65.0 62.4 60.6 46.1 38.2 21.4 16.6 11.3 10.6 10.9 10.5 9.9 9.4 8.4 7.5 5.5 5.4 5.3 4.4 3.2 2.2 2.0 1.3 0.8 0.5 0.4 France Spain Sweden Poland Finland Italy United Kingdom Romania Greece Bulgaria Hungary Portugal Austria Czech Republic Ireland Lithuania Latvia Slovakia Estonia Denmark Netherlands Belgium Slovenia Cyprus Luxemburg Malta Germany

GDP per inhabitant: the spread of wealth Index where the average of the 27 EU-countries is 100 Lithuania 275 127 131 129 125 118 120 107 101 99 100 92 82 84 80 83 77 67 66 73 62 58 65 49 45 Luxembourg Ireland Netherlands Austria Denmark Belgium Sweden Finland Germany France Italy Spain EU-27 Cyprus Greece Slovenia Malta Portugal Estonia Hungary Slovakia Latvia Poland Romania Bulgaria United Kingdom Czech Republic 126 108 116

Europe 2020 – Europe's growth strategy EU leaders agreed in 2010 the overall strategy to get out of the economic crisis by means of: 4Smart growth Better education, more research, greater use of communication technologies 4Sustainable growth A resource - efficient, greener and more competitive economy 4Inclusive growth More and better jobs, investment in skills and training, modernisation of the labour market and welfare systems, spreading the benefits of growth to all parts of the EU 4Good economic governance Better coordination of economic policy

Europe's response to the economic crisis 2008: Worldwide financial crisis starts in the United States Coordinated response from the EU's national governments, the European Central Bank and the European Commission: 4Commitment to the euro and to financial stability 4New crisis management tools and reforms of rules: European Stability Mechanism: fund to help extraordinary economic difficulties EU-wide financial supervisory authorities, new laws for stability of banks 4Better economic governance: European Semester: annual procedure to coordinate public budgets Euro+ pact, "Fiscal compact treaty” : mutual commitments to sound public finances

How does the EU spend its money? Sustainable growth: jobs, competitiveness, regional development 46% 2014 EU budget: €147.2 billion = 1.12% of gross national income Citizens, freedom, security and justice 1% Other, administration 6% The EU as a global player: including development aid Natural resources: agriculture, environment 41%

Where does the Money come from? Budget of ECSC Withdrawals of European Development Fund Technology and Development Budget from Euratom. General Account budget Joint Budget Import surcharge of agricultural products (3.6%) Customs revenue (16.9%) Value added tax (52.1%) Contribution based on GDP (28.4%) Tax revenue (own resource)

Research - investing in the knowledge society Spending on research and development in 2014 (% of GDP) 2.0% 3.0% 1.5% 2.9% 3.4% EU EU objective 2020 China Japan United States

The euro – a single currency for Europeans EU countries using the euro EU countries not using the euro Can be used everywhere in the euro area 4Coins: one side with national symbols, one side common 4Notes: no national side 유로화 지폐는 총 7가지, 앞면은 창문과 출입구 그림으로 열려있음을, 뒷면은 여러 종류의 다리를 그려 유럽뿐 아니라 세계를 연결한다는 의미를 나타내고 있음. 동전의 앞면은 유럽연합이 공통적으로 새겨져 있고, 뒷면은 나라별로 다르다.

European Economic and Monetary Union: stable prices Beating inflation European Economic and Monetary Union: stable prices Average annual inflation in the 17 EU-countries that used the euro in 2014

The single market: freedom of choice The single market has led to: significant reductions in the price of many products and services, including internet access and airfares. 40% drop in price of phone calls from 2000-2006 2.8 million new jobs Four freedoms of movement: 4 goods 4 services 4 people 4 capital © Getty Images

4 Comenius: school education 4 Erasmus: higher education Going abroad to learn Over 2 million young people have studied or pursued personal development in other European countries with support from EU programmes: 4 Comenius: school education 4 Erasmus: higher education 4 Leonardo da Vinci: vocational training 4 Grundtvig: adult education 4 Youth in Action: voluntary work and non-formal education © Getty Images

The EU: an exporter of peace and prosperity 4 World trade rules 4 Common foreign and security policy 4 Development assistance and humanitarian aid EU runs the peacekeeping operations and the rebuilding of society in war-torn countries like Bosnia-Herzegovina.

The EU is the biggest provider of development aid in the world Official development assistance per citizen, 2012 93€ 44€ 53€ EU Japan United States The EU provides 60% of all development aid

Three key players The European Parliament - voice of the people Martin Schulz, President of of the European Parliament The European Council and the Council - voice of the Member States Herman Van Rompuy, President of the European Council The European Commission - promoting the common interest José Manuel Barroso, President of the European Commission

The EU institutions European Parliament Court of Justice Auditors Economic and Social Committee Committee of the Regions Council of Ministers (The Council) European Commission European Investment Bank European Central Bank Agencies European Council (summit) EU commission- promoting the common interest : 27개 Court of Justice – upholding the law :27개 European Economic and Social committee : voice of civil society : 344 . - 무역유니언 대표, 고용주, 상인, 농인, … 새로운 EU law와 정치에 대해 Committee of the regions - 344명

How EU laws are made Citizens, interest groups, experts: discuss, consult Commission: makes formal proposal Parliament and Council of Ministers: decide jointly Commission and Court of Justice: monitor implementation National or local authorities: implement

The European Parliament – voice of the people 4 Decides EU laws and budget together with Council of Ministers 4 Democratic supervision of all the EU’s work Number of members elected in each country (January 2012) United Kingdom 12 22 74 73 13 Italy Ireland Hungary Greece 99 Germany France Finland 6 Estonia Denmark Czech Republic Cyprus 18 Bulgaria Belgium 19 Austria Total 753 72 20 Sweden 54 Spain 8 Slovenia Slovakia 33 Romania Portugal 51 Poland 26 Netherlands Malta Luxembourg Lithuania 9 Latvia

The European political parties Greens/European Free Alliance 58 European Conservatives and Reformists 53 Alliance of Liberals and Democrats for Europe 84 European People’s Party (Christian Democrats) 271 Non-attached members 30 Total : 753 Progressive Alliance of Socialists and Democrats 190 European United Left - Nordic Green Left 34 Europe of Freedom and Democracy 33 Number of seats in the European Parliament per political group (January 2012)

Council of Ministers – voice of the member states 4One minister from each EU country 4Presidency: rotates every six months 4Decides EU laws and budget together with Parliament 4Manages the common foreign and security policy

Council of Ministers – number of votes per country 345 Total: 3 Malta 4 Estonia, Cyprus, Latvia, Luxembourg and Slovenia 7 Denmark, Ireland, Lithuania, Slovakia and Finland 10 Austria, Bulgaria and Sweden 12 Belgium, Czech Republic, Greece, Hungary and Portugal 13 Netherlands 14 Romania 27 Spain and Poland 29 Germany, France, Italy and the United Kingdom “Qualified majority” needed for many decisions: 255 votes and a majority of member states From 2014: 55% of the Member States with 65% of the population

Summit at the European Council Summit of heads of state and government of all EU countries 4Held at least 4 times a year 4Sets the overall guidelines for EU policies 4President: Herman Van Rompuy

Part 2.

Trade Policy of EU Trade Policy inside EU: Custom Union/ four freedom of transfer (goods,service, labour,capital)/ Monetary Union Trade Policy outward EU: Multilateralism in WTO/Bilateralism 쌍무주의 (FTA with 50 countries) PTA/CFTA/GSP: Yaunde/Rome/Cotonou Agreement (More 100 ACP countries)

WTO & EU Globalization VS. Regionalism WTO & EU Non-discrimination Trading bloc RTA(regional trade agreement Preferential trade arrangement Non-discrimination

(Single European Market) 유럽경제지대 (EEA):EU+EFTA 관세동맹 FTA: 역외국 대상 비상호적 호혜무역협정(ex:GSP) 비상호적일방적 무역호혜 최혜국 대우(MFN): WTO 다자체계 EU-28 2006년 2013년 유럽 역내단일시장 (Single European Market) 역외시장 (1) (2) (3) KIEP

BREXIT & EU

영국의 국내외 정치상황 이민문제 대두 영국의 EU 분담금 문제 브렉시트의 원인 영국의 국내외 정치상황 이민문제 대두 영국의 EU 분담금 문제 2007 이후 동유럽국가 EU가입으로 동유럽 이민 급증 2015이후시리아 난민유입 유럽 회의주의 대두 보수당-자유당 연립정부 취약 2014년 141억 유로를 EU분담금 지출 실질 수혜금은 71억 유로, EU예산에 대한 불신

탈퇴 절차 EU조약 제 50조에 근거 영국정부가 EU이사회에 탈퇴 의사 고지 EU이사회 협상 가이드 라인 설정 EU집행위원회 협상개시 협상 종료 및 유럽의회 동의 EU이사회 최종 결정 및 신협정 체결 * 협상은 2년 이내 종료되어야 하며 이사회의 동의로 연장 가능하다

브렉시트 이후 브렉시트 이후 영국-EU 관계 OR 하드 브렉시트 소프트 브렉시트 영국 정부의 유럽연합 탈퇴를 통한 유럽연합 EU와의 완전한 사회적, 정치적, 경제적 연대, 유대 관계 정리 명목 상 유럽연합을 탈퇴하지만 유럽연합과의 관계를 완전히 청산하지 않는 것 OR

After-Brexit 관계모형 European Eonomic Area (EEA): 1994 EU-Canada Comprehensive Economic and Trade Agreement (CEFT) :2016 EU-Turkey Customs Union European Free Trade Agreement (EFTA) Common Relationship between WTO members

After-Brexit 관계모형 European Eonomic Area (EEA): 1994 EU-Canada Comprehensive Economic and Trade Agreement (CEFT) :2016 EU-Turkey Customs Union European Free Trade Agreement (EFTA) Common Relationship between WTO members

European Economic Area: Four Freedom of Movement Goods / Services / Capital / Labour EU member states (Croatia) EU member since2013 Provisional EEA member EEA member EFTA signatories that have not ratified EFTA member states

EU-Canada Comprehensive Economic and Trade Agreement (상품) CETA 발효 시 약 9,000개 품목에 대한 관세(약 98%)가 즉시 철폐될 예정 - 승용차, 선박, 농수산물 등은 7년(2024년 까지)에 걸쳐 관세가 철폐될 예정 2016년 10월 30일 정식 체결 (서비스) 국민총생산(GDP)의 70%를 차지하는 서비스에 대한 제재가 완화될 예정- 양자 간의 이민인구 유입, 입국 장벽, 투자 및 소유권 제한을 줄이거나 없애 각국의 서비스 관련 기업들의 투자를 유치할 예정 (투자) 캐나다, 북미 진출을 위한 거점으로 확대될 전망 - 캐나다 기업의 해외진출 가능성을 증가시키고, 유럽 투자자들에게는 안정성과 신뢰성을 보장해 CETA 발효 시 투자가 늘어날 것으로 전망 (정부조달) 캐나다 기업들은 33조 달러에 달하는 EU 정부조달 시장에 진출이 확대될 전망이며 이에 따른 수출 기회가 증가할 것으로 전망 - EU 회원국도 캐나다 정부조달 시장에 대한 제재가 완화돼 유럽 기업에 대한 입찰이 늘어날 것으로 전망

EU-Turkey Customs Union 2015년 5월 12일 관세동맹 갱신을 위한 로드맵 합의 1995년 정식 체결 합의 내용 터키가 EU의 협의 및 의사결정 메커니즘에 참가 하도록 할 것 EU와 제 3국 간 체결한 어떤 자유무역협정에도 터키가 자동으로 일부가 될 것 관세 협정 하에 EU시장 내 터키 상품의 자유 이동을 막는 모든 장애와 관세 철폐 기존 관세동맹에서 제외됐던 농업, 서비스 분야 및 공공 구매를 포함할 것

PTA (Preferential Trade agreements): 상당수준의 개정 필요 브렉시트 이후 영국과 제 3국과의 관계 PTA (Preferential Trade agreements): 상당수준의 개정 필요 영국과 WTO 관계: GSP공여, 정부조달협정, 농어업 분야 양허 문제 BIT (Bilateral Investment Agreements): 무리없이 계승가능 내외국인을 구별하지 않고 투자에 관한 동등한 권리를 부여하는 양자간 투자협정 국가간 투자활동에 대한 규제를 없애는 것을 의미 WTO 체제하에서 선진국이 개발도상국에 일방적으로 양허할 경우 무역 특혜가 허용되는 것을 말하며, 지역무역협정 가운데 가장 초기 단계임

현재 협상쟁점 정산금 EU시민권리 아일랜드국경통제 유예기간

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