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[...] They account for around 80% of world trade of world production) among themselves, enabling their companies to be present in these markets (notably those of large size), to win new customers, richer consumers with a taste for diversity, and thus increase their sales, market share, outlets, and ultimately their profits. In addition, trade agreements contribute to the development of intra-regional trade in these three regions of the world, between relatively close countries. This phenomenon is particularly due to intrabranch exchanges, i.e. transactions involving the exchange of similar products and international division of labor. Intra-regional exchanges and, in particular, intra-branch trade occupy an increasingly important place for three main reasons. [...]
[...] Furthermore, free trade can increase unemployment, due to the relocation of labor-intensive activities, such as textiles. In addition, free trade increases inequalities in the world, by favoring the super-rich social classes who benefit from the liberalization of capital movements, the valorization of their capital (financial and real estate). Trade agreements can lead to the risk of a poverty-enriching growth, with developing countries that are heavily specialized in natural resources; specialization that can be poverty-enriching if raw material prices fall. Due to these two major limitations that we have developed, many trade agreements remain pending, are not ratified by the States. [...]
[...] The two heads of government thus emphasized the benefits and fair advantages for all parties involved. Since 2017, this agreement has resulted in a more than one-third increase in trade, with a significant agricultural component as well as Canadian minerals (such as lithium, uranium . ) essential for the energy transition. However, this commercial agreement is denounced due to its negative impacts on the environment and the agricultural sector (The Echoes, March 21, 2024). Under these conditions, we wonder how the free trade agreements negotiated by the European Union allow businesses to thrive while at the same time they are criticized for the negative effects they generate on sustainable development and inequalities. [...]
[...] They use, in fact, the international division of production processes, the fragmentation of the global value chain, in order to optimize their production process and maximize their profit. 1.2 Access to lower-cost resources and production Thanks to trade agreements, multinational firms can also organize their production process on multiple sites, located in different states. The parent company is based in one country and its subsidiaries in others. Among the different modalities of implantation in a foreign country, companies can make so-called investments greenfield, this involves creating a production unit. [...]
[...] (2003), Trade and the Environment, Princeton University Press, 2003 Les Echos (22 March 2023), 'The European Union's trade policy facing contradictory injunctions'. Les Echos (21 March 2024), 'Ceta: What you need to know about the disputed free trade agreement with Canada'. Levasseur, S. (2002), 'Direct Foreign Investment and Strategies of Multinational Enterprises', Revue of the OFCE Bis pp. 103-152. Le Monde (31 January 2024), EU-Mercosur Agreement: Why This Treaty Sparks Anger Among Farmers OECD, 'Is Trade Compatible with the Environment'. Stolper, W. F. [...]
