The European Union

The international trade is a trade between countries. Most of the countries within the same region or continent form a trading block that enables them to make decisions that would benefit their citizens with regards to local and international consumptions of goods and services. Sometimes countries from different continent come to an agreement entailing import and export of commodities. In this regards, we are going to analyze the decision made by Brazil to quite the World Trade Organization WTO. From the context, Brazil has flourished in the manufacturing of aircraft whose market is in the European Union. I am asked to give an advice to the European Union on how to restrict the importation of aircraft from Brazil.

One of the concerns raised by the European Union is that Brazil will consider boosting its aircraft manufacturing. One of the reasons contributing to this fact is that the aircraft manufacturing firms have a huge influence on the government decision. Since Brazil will no longer be part of the world trade organization, it may enter into regional trade agreements leading to bilateral and multilateral forms of trade with other countries. Brazil may enter into agreements with other countries as the best trading partners, therefore, influence them to buy her products which include the Airbus. Secondly, the Brazilian government may encourage the local consumption of the Airbus produced by the local manufacturers other than buying from the international market. These are some of the trends that could be found in the Brazilian Airbus market. These trends would be required to be countered by the European Union.

The European Union may apply one of the policies that could bring them and the Brazilian government together. One of the policies that I would advise the European Union to apply is making Brazil the Best Trading Partner (BTP). Brazil produces a number of products that cannot be completely consumed in the local market. For example, the country is the world leading coffee producer. Taking this into the account, Brazil is required to seek for an alternative foreign market. I would advise the European commission to institute a delegation that would seek an agreement with the Brazilian government. The agreement would ensure that the European Union opens its market for the Brazilian coffee. On the other hand, the European commission would pledge to support the Brazil Airbus industry with expertise and other technical services.

Brazil is ranked 14th best country in the Best Trading Partner profile page. This page lists the countries whose imports and exports are extremely high. In this regards, the country has a lot of products that it sells to the foreign market as well as high products it buys from the foreign market. When the Brazilian government exits the World Trade Organization, there will be a great effect on the foreign products required in the country as well as the surplus products produced within the nation. Therefore, the European commission would offer to bridge the gap left only if Brazil would agree to be one of their trading partners.

The world trade organization recognizes the liberalization of trade. Choosing an international trade partner is part of the practicing liberal trade. Therefore, the world trade organization would agree to the European Union to the policy of working with one of the trading partners for the benefits of their countries. This advice will go a long way in ensuring that both the European Union and the Brazilian government continue to exploit each other’s market as it was when the country was still a member of the world trade organization.

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