market convergence, but how?
order for the Grand Alliance to be successful, Europe and America must come together so as to create a
force that would be strong enough to react to Chinaís growing economic power.?This would best be done through the union of
the American and European markets, effectively fusing the economies, as well as
the international interests, of the two regions. ?/span>In fact, such a union is one of the most
direct and immediate goals of The Grand Alliance
(Pelanda, 2007) and is essential to its ultimate goal of a prosperous
global economy. ?/span>Such an objective,
however, leaves many questions to be answered, but none as important as ďHow do
we go about uniting the American and European markets and what exactly do we
need to do to ensure its success and stability??span
style='mso-spacerun:yes'>?The answer to this question can best be found
by using the formation of the European Union as a template and adapting it for
trans-Atlantic convergence.?This would
provide, at the very least, a framework that has proven to be successful in
recent history.?Since Euro-American
convergence is a different situation, however, there may need to be alterations
to some unification procedures.?
Nevertheless, Euro-American unification would be wise to follow in the
example of European convergence.
††††††††††??/span>The primary goal of the European Union was to
form a strong, single market in Europe.?Ideally, this single market is represented by
the four fundamental freedoms of movement for goods, people, capital, and
services throughout the member states.?
These freedoms are institutionalized through norms that require member
states to formally guarantee them, to remove restrictions on them, and to amend
laws that may indirectly constitute barriers to them (Bartolini, 2005).?These freedoms, too, should be the ideal for
a Euro-American union and can be achieved through several agreements between
the European Union and the United
States, illustrated in three major steps
which will be the cornerstones of the integration process.?First, there must be formed a transnational
space for transactions in which the supply and demands of the Euro-American
economic states can operate without interference, such as customs, exchanges,
or any other discriminatory factor.?Second,
this transnational space must have uniform legal foundations for economic
interactions so that all member states can be held to the same legal
responsibilities throughout the community.?
It also shows that there will be a uniform interpretation of community
laws and it establishes community equality and stability.?Finally, the last step should be monetary
integration and centralized administration of a single currency, an act that
quite literally binds the European and American economies.?These steps would lead to a single Western
economy that would be well on its way to limit Chinaís growing global dominance.
first step can be achieved through a series of negotiations paralleling those
previously put into effect through the creation of the European Union.?First of all, it must be established that
trade between the United
States and European countries be free.?In 1968 the European Economic Community
eliminated all quotas and tariffs from trade on goods within the Community, but
this agreement was not complete because there were still differences in
national procedures which made it impossible to market the same product
throughout all of Europe (Meeusen, 2002).?Therefore, not only must Euro-American
convergence create a customs union by eliminating internal tariffs and
establishing a common external tariff, but it must also have common policies on
product regulation, allowing for the free movement of production and
enterprise.?This guarantees to
Euro-American companies the ability to establish themselves in other nations
within the community.?It also grants
them the ability to provide services within other states than the one where
they are established.?Additionally, it
would be wise to follow the European proposal that all import duties should be
paid into the community budget (Blair, 1999).?
This would increase the power of the newly formed Euro-American alliance
and the revenue would be distributed so as to provide for the continued
prosperity of the single market.?From an
American standpoint, convergence can be seen as a great advantage to the
current economic situation.?Economics is
at the heart of the American mentality and such advances would sit well with
the eagerly entrepreneurial American motivation.?Companies that wish to provide services
internationally would have considerably less hurdles to jump in order to
achieve their goal.?A common market also
provides a larger and more diverse consumer base, which facilitates the growth
of small companies that focus on a non-mainstream niche, as well as the growth
of large corporations that cater to the general public.?Nevertheless, there are still some drawbacks
to market unification.?For example, a
single market within developed nations creates increased international
competition and can have a short-term negative impact on certain sectors of the
national economy (Bratton, 1996).?
Ventures that receive national subsidies, such as those currently
supporting agriculture through farms and crop control, may struggle to survive
against its transnational competitors.?
Nevertheless, the United
States, as a model of democracy and a free
market economy, would embrace increased international competition, making sure
to at least stay as economically aggressive as its European peers.?Overall, I feel that there are far more
benefits to convergence than drawbacks and that, if shown these benefits, other
Americans will agree that Euro-American convergence is in their best interest.
aspect of the single market is the establishment of a harmonized external
tariff.?This means that member countries
will have to participate as a sole unit in international trade negotiations.
Trade with external countries will therefore become one of the first tools of
Euro-American integration requiring member states to issue sovereignty as a
single being.?Considering that economic
stability is essential and that it will be imperative for the Euro-American
countries to interact with outside nations, several important organizations and
groups will have to be established to cope with these needs.?One such organization is based on the
European Commission (EC).?This group
puts together the budget for the European Union and directs its uses
(Liebscher, 2006).?Clearly, the United States
will want to be an active participant in overseeing how revenues from import
taxes are allocated and spent in order to ensure that American interests are
preserved.?Additionally, the European
Commission is the chief agent in trade negotiations between the European Union
and non-union nations.?Since this
organization plays such a vital role in the global community and the United States sees itself as such a strong
player in this community, the U.S.
will be sure to seek more than just mere representation, but also seek a
leadership role within the group.?
that is fundamental to the proper functioning of the European Union, and will
have to be adapted for the inclusion of the United States, is the European
Parliament.?This legislative body
manages and approves the budget proposed by the European Commission, appoints
the President of the European Commission, and directs the initiatives of the
European Commission (Blair).?Due to its
control in not only electing who directs the community budget, but also in its expressed
interest in the sustainability of the community as a whole and each of its
parts, this is an extremely important organization for the United States to be
an active member.
organization that would help to govern the Euro-American alliance while
ensuring economic unity would be a Euro-American Court of Justice.?This court would interpret treaties and
provide a uniform interpretation of community law.?The establishment and effective use of this
court would show that community law has become a reality, which is important to
the free movement of goods and the removal of barriers protecting national
markets.?It would enforce market
adherence and thereby uphold the fundamental principles of the single
market.?For example, it would ensure
that it is possible for all community consumers to purchase in their own
country any food product manufactured in another community country.?It would also uphold that in regard to areas
such as production, marketing, and shipping that each state within the
community has to recognize each others?national rules and regulations.?To avoid having to adopt excessive new
legislation, the committee states must simply agree to give each others?laws
and technical standards the same validity as their own.?This court, therefore, is essential to the
maintenance of a unified market.?Another
court, the Court of Auditors, would also need to be adapted to incorporate the United States.?This court would certify that accounting
principles are adhered to within the Euro-American community.?It would also reassure the public that community
money is spent responsibly.?Clearly, the
will desire adequate involvement so as to ensure its money is wisely spent and
that its funds are properly documented.?These
two courts will do well to monitor the efficiency of the single market and see
that its principles are actively in effect.
The interests of
corporations are at the heart of the American economy.?Therefore, U.S. based companies and unions
must be represented in the Economic and Social Committee.?Its aim would be to involve economic and
social interest groups in the development of the unified market and serve as an
organization that exemplifies the economic goals of its member states (Leisink,
2007).?It is currently established in
the European Union but will also be needed in a Euro-American alliance in order
established companies to remain strong and to benefit the local economy by
expressing their regional needs and interests.?
that needs resolving is that of transportation barriers.?Europe and America do not share any borders
and therefore will not have to implement any infrastructure reconfiguration in
order to facilitate the movement of people, goods, services, and capital.†† Instead, the only major modifications that
will have to be made are within seaports and airports.?In the wake of the 11 September 2001
terrorist attacks, however, America
may be reluctant to make transportation into its territory a relatively simple
process.?From an American perspective, I
even see this as a potential security issue for the United States.?This is an issue that will surely not be
transient, but rather one that the people of my generation, the generation that
will soon be the leaders of America,
will recall as defining our adolescence.?
I think that before the United States
will be willing to relax seaport and airport regulations within a Euro-American
alliance, the U.S.
must be sure that regulations on travelers and immigrants into the rest of the
community are just as stringent as its own regulations on these groups.?Therefore, a possible solution would be to
increase port security throughout the European Union and relax Americaís
fear of a similar attack.?
Unionís Committee of the Regions is the final major political organization that
would have to be adapted to incorporate American interests.?This committee represents local and regional
authorities and most closely reflects the interests of the people.?It has previously dealt with drought problems
in Southern Europe and could potentially be useful in America to
areas that continually face economic misfortunes such as natural
disasters.?For example, this committee
would benefit areas like New Orleans
in the aftermath of Hurricane Katrina.?
Such a committee would substantially help reconstruction and economic
growth, in turn aiding the Euro-American economy through the rehabilitation of
a major port city. ?/span>The United States would definitely want
adequate representation in the committee so as to secure funds that would aid
the prosperity of the nation.
Overall, I feel
that the political aspect of Euro-American convergence is possible, but that
the United States
will want more control of many organizations as a condition of
integration.?The U.S. has historically
been a leader in the international community and it will be difficult to
convince Americans that their power is slipping so much that they deserve a
secondary role to their European peers.?America will
have to be taken seriously and their interests legitimately considered if
successful and sustainable convergence is to occur.
The final act in
Euro-American convergence is the monetary integration and centralized
administration of a single currency.?
This step is last because it is not crucial to the functioning of a
single market, but it would still be important for complete convergence.?The creation of a Euro-American Investment
Bank would be an incredible boon to the Euro-American economy.?The bank would raise funds on the capital
markets to finance investments that aid in the growth of the community (Dyson,
2002).?Its main goal would be to improve
energy transfer, telecommunications, and transportation, all of which
facilitate advances in business and negotiations.?Thus, the Investment Bank supports the
foundations of the single market from a monetary, rather than a political,
perspective.?Another organization that
would support the administration of a single currency is a Monetary Institute
whose focus is to coordinate national monetary policy and monitor progress
toward convergence.?This organization
would prepare Euro-American states to lock in exchange rates and anchor their
currencies in order to minimize rate fluctuations and lower inflation rates.?Finally, the development of a Central Bank
would gradually introduce and regulate a single currency throughout the
community, finalizing convergence.?
By and large,
Euro-American convergence will not be a simple process.?Instead, it will take much time to complete
and will have to be an intricate and detailed procedure to ensure that it is
done correctly.?Although current
American independence and power supports the idea that such a convergence is
not probable, it is nevertheless possible if America realizes that its
international influence is diminishing.?
If and when the Western hemisphere is ready for a Euro-American
community, the regions will have to unify their economies, establish political
and legislative bodies to uphold the unification, and then enforce monetary
integration.?With an outline for
Euro-American convergence, the Grand Alliance takes a step closer to realizing
its aim of a successful and prosperous global market not free of Chinese
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Blair, Alasdair.?The European Union since 1945.?New
Bratton, William.?International Regulatory Competition and
Dyson, Kenneth.?European States and the Euro.?New York:?Oxford
Leisink, Peter, Bram Steijn and Ulke Veersma.?Industrial
Relations in the New Europe.?Northhampton,
MA:?Edward Elgar Publishing Limited.?2007.
Liebscher, Klaus, et al.?Financial Development, Integration and
Stability.?Northhampton, MA:?Edward Elgar Publishing Limited.?2006.
Meeusen, Wim and Jose Villaverde.?
Convergence Issues in the European
Union.?Northhampton, MA:?Edward Elgar Publishing Limited.?2002.
Pelanda, Carlo.?The Grand Alliance.?