CHALLENGES FACING THE TRANSFORMATION OF THE COMMON COMMERCIAL POLICY OF THE EUROPEAN UNION
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1 CHALLENGES FACING THE TRANSFORMATION OF THE COMMON COMMERCIAL POLICY OF THE EUROPEAN UNION Assc. Prf. Simenka Al. Petrva, PhD D. A. Tsenv Academy f Ecnmics - Svishtv, Bulgaria cpetrva@uni-svishtv.bg Abstract: The trend twards integratin f ecnmic life is ne f the mst imprtant regularities that characterize the wrld ecnmy in the late twentieth century and early twenty-first century. In terms f the restructuring f reginal ecnmies f Eastern Eurpean cuntries Bulgaria adpted a permanent plicy f establishing a new type f relatinship with the Eurpean Unin. In recent decades, the Member States f the Cmmunity are emerging as majr trading partners f Bulgarian businesses. The rerientatin f Bulgaria t the Eurpean Cmmunity and the Assciatin desire it greatly affect natinal trade plicy. Belnging t ne f the majr ecnmic blcs in the wrld requires cmpliance with the adpted Cmmunity plicy n trade, but als creates a number f challenges. The main purpse f this reprt given the dynamics f assciatin at Eurpean level, is t attempt t assess the current trends in trade plicy instruments f the Eurpean Unin and n this basis t determine the reginal dimensins f trade and ecnmic relatins between cuntries States and Bulgaria, but als t utline the main challenges ccurring in this area. The integratin f Eurpe's cmmercial envirnment pses many prblems and challenges fr the future develpment f natinal ecnmy. Key wrds: cmmn cmmercial plicy, prcess integratin. I. Intrductin Trade is ne f the mst rapidly changing and fastest grwing areas f ecnmic activity. It reflected current trends f grwing interdependence and integratin between natinal ecnmies. This gives the glbal ecnmy f the glbal netwrk. In ecnmic terms, the impact f the accessin f Bulgaria t the Eurpean Unin is largely determined by the successful transfrmatin f the dmestic market an integral part f
2 the Eurpean market. In this sense demands a thrugh recnsideratin f experience in ur trade integratin t utline future trade and ecnmic relatins. In 1957, at the signing f the Treaty f Rme establishing the Eurpean Ecnmic Cmmunity, the Cmmunity funders pay special attentin t the external aspects f the custms unin and therefre the cmmn cmmercial plicy f the Member States. This plicy is a significant basis f the integratin prcess. Extending the scpe f the cmmn cmmercial plicy remains in all years after the Treaty f Rme. At present, this plicy includes nt nly trade in gds but als trade in services as well as imprtant aspects f intellectual prperty prtectin and the regulatin f investment activity. Cmmn cmmercial plicy f the Eurpean Unin has a strng impact n the freign trade f Bulgaria, and thus in a wider and n varius ther spheres f the natinal ecnmy. This effect deserves research interest. II. Theretical framewrk f cmmercial transfrmatin Despite the differences in the adjusted literature views and pinins, we can cnclude that the integratin f ecnmic life is an essential part f the prcess f glbalizatin and cmplex multiphase gradual prcess f transfrmatin f natinal ecnmies int a single ecnmic space. Integratin as a prcess largely driven by changes in the dynamics f trade in gds and services, technlgy, capital and labr. Hwever this prcess is the result f certain reasns. In this sense, we share the reasning f G. Arry, accrding t which the main prerequisites fr glbalizatin and in particular the integratin f ecnmics can be reduced t: Ascending develpment f the prductive frces. Glbalizatin ccurs at a certain stage f develpment f the material basis f the glbal ecnmy, and while nt shaped right cnditins, it is nt necessary as a histrical necessity. Expansin f internatinal ecnmic relatins, and they reach the stage f develpment in which the existence f natinal ecnmies is impssible withut them. Leveling the ecnmic levels f the cuntries in the wrld r in its separate areas where glbalizatin has established itself as a prcess.
3 Unify the ecnmic and legal cnditins fr the functining f natinal ecnmies. This creates legal and management fr the impsitin f the glbalizatin prcess in the wrld. Develpment f financial capital thrugh its expansin beynd natinal ecnmies and carve him as a leading ecnmic prcess in the wrld. Establishment and strengthening f integratin prcesses, the peratin f bringing tgether grups f cuntries. The integratin f natinal ecnmies became a feature f the wrld ecnmy. Circle f bth detached imprtant prerequisites fr glbalizatin and integratin f the wrld ecnmy can be extended t add him t the grwing pressure n csts. The latter is reflected in the fact that ecnmic actrs fcus their business activity t certain ecnmic areas, which prvide business with cheap labr and ther prductive resurces. These cnditins f glbalizatin and integratin shuld be cnsidered in unity. Cllectively, they frm its evlvement as an ecnmic reality. The integratin prcess in itself reflects the ecnmic, institutinal and legal characteristics f individual farms. Fr its part, the cmmercial aspect f integratin reduces t: liberalizatin f internatinal trade and build a glbal (wrld) market. Generally liberalizatin f internatinal trade is reflected in certain legislative measures and actins by which reduced restrictins n internatinal traded and partially restres the principle f free trade (free trade). The basis f this principle is the understanding that the internatinal exchange f gds and services nr restrict r prmte the immediate interventin f the state. Therefre, free trade is prtectinism ppsite state, which largely restricts the realizatin f the principles f market ecnmy. The secnd majr manifestatin f the integratin f internatinal trade is building a glbal (wrld) market. Its rle as a single glbal ecnmy as a key. Cmpanies that have achieved a glbal presence, perceive the wrld as a single market. They create their prduct prtfli fllwing a precise assessment f the market envirnment in the fllwing areas: attractiveness f the market (cuntry, regin) cmpetitive frce. In deply type attractiveness f the market can be represented by the fllwing parameters: see. Tabl. 1.
4 Table 1. Definitive characteristics the attractiveness f the market size f the cuntry (regin); grwth f ecnmic develpment; price regulatin; inflatin; state f the balance f trade; strength f influence f plitical factrs; unifrmity f user requirements and mre. The study f ther characteristics f the market - cmpetitive strength requires using extensive market research t measured nes, they are capturing market share and cmpetitive psitin, the degree f cnsumer acceptance f gds r services, and mre. Maintaining prduct prtfli in the glbal marketplace requires an ecnmically ratinal valuatin decisins regarding: which prducts t intrduce, which markets, what new prducts t be created, what brand t use, what is the packaging, which after sales service t prvide, when t enter the market. The basis f such a business rientatin is the ntin glbal prduct fr a glbal client. This means that a cmpany is able t ffer the market a range f prducts, the parameters f which wuld satisfy the requirements f the custmer, regardless f where in the wrld is lcated. The prcess f entering Bulgaria in integrating internatinal market f gds and services must be related t the search f certain psitive effects fr Bulgarian cmpanies. These effects can be summarized as fllws: Develpment f natinal prductin, taking int accunt the real cmparative advantages f the cuntry and pprtunities fr building new prmising industries, supprting mre added value. Imprving access t glbal resurces (material, labr, financial, etc.). Prviding grwth f natinal prductin= Encuraging participatin in internatinal trade and ecnmic agreements (custms, tariff, etc. Agreements) t imprve the terms f trade in gds and services and attracting strategic investrs. Faster access t glbal technlgical develpments (knw hw) and expanding their distributin.
5 Accelerate the standardizatin f manufactured gds, driven by user requirements manifestatin f the glbal quality. Greater chice f gds and services by cnsumers, leading t an imprved standard f living. Increasing mbility f labr resurces, creating better pprtunities fr prfessinal develpment and mre. Alng with the psitive ecnmic effects shuld be reprted and thse with a negative character. In this sense, the pssible negative ecnmic effects f the integratin f ecnmic life n the Bulgarian cmpanies can be reduced t: disintegratin f natinal cnsumptin patterns and life; reducing the level f natinal ecnmic independence; vulnerability f the dmestic market price and the glbal manufacturing recessin; asymmetry effects - rapid disseminatin f negative and slw psitive spillvers. In this cntext, prmting the integratin f natinal markets becmes essential t cnsider the wrld ecnmy as a unified whle. III. Empirical framewrk f the study In rder t achieve the bjective f this study is particularly relevant t attempt t assess the changes in trade rientatin f Bulgaria and n this basis t identify pprtunities in the cuntry fr full integratin int the trading cmmunity f the Eurpean Unin in the cntext f the cmmn cmmercial plicy. Fr this purpse, analyze and evaluate changes in the amunts f exprts and imprts f the cuntry in the perid The perid investigated sixteen creates cnditins fr establishing the level f activity f trade relatins between Bulgaria and the Eurpean Unin in terms f the challenges f integratin. When chsing the study perid int accunt the fact that in 1993 Bulgaria signed the Eurpe Agreement (ECA), which specifies the cnditins fr Bulgarian exprts t member states f the Eurpean Unin, and their exprt t ur cuntry. In the perid after the signing f the ESA is taking steps t create a free trade zne. Gradually reduce tariffs in bilateral trade in industrial gds at a lwer rate n agricultural gds. The new realities f an ever mre glbalized ecnmy determine the imprtance f freign trade, the reginal and glbal trading cmmunities fr ecnmic develpment.
6 Freign trade is becming a majr factr in ecnmic grwth. Its dynamics and structure are defined as a generatr f freign exchange earnings and investments t expand reprductive prcesses t multiply the prductin effect, and t increase emplyment in exprt-riented industries. During the perid , the share f freign trade in GDP tends t increase relatively cnstant. This trend utlined is largely determined by the influence f the fllwing majr factrs: trade liberalizatin; establishing free trade areas; eliminatin f many restrictins n imprts and exprts; a prcess f integratin f Bulgaria int the Eurpean structures. A characteristic feature f the integratin f the natinal ecnmy t the single Eurpean market is the realizatin f free cmmdity mvement. Its measurement can be dne using the parameters vlume and dynamics f trade between Bulgaria and the Member States f the Eurpean Cmmunity. Structural analysis f the magnitude f realized turnver shws that during the perid was fund steady trend f grwth f Bulgaria's freign trade with the Eurpean Unin (see Tabl. 2). Table 2. Share f Eurpean Unin trade f Bulgaria in the perid (%) Indicatrs Imprt 33,30 51,09 54,76 55,69 60,14 57,17 56,45 60,83 59,97 64,93 60,85 Exprt 30,20 44,02 49,35 50,27 55,35 53,06 47,32 58,45 56,70 59,96 58,49 Ttal 31,75 47,56 52,06 52,98 57,75 55,11 50,92 59,36 57,93 61,99 59,55 Surce: NSI. Statistical Yearbk frm 1995 t Data table. 1 shws that frm 2000 t the end f the perid the relative share f trade in the Eurpean Unin f Bulgaria average increased by mre than 2%. The result can be described as legitimate and cnditined by the integratin prcesses in Eurpe. In 2005, the Member States accunted fr 55.11% f the trade, including 57.17% f exprts and 53.06
7 percent f imprts, and in 2010, respectively, 59.55% f the trade, including 60.85% f exprts and percent f imprts. During the perid , the freign trade with the EU is characterized by an increase in Bulgarian exprts by nearly three times, and imprt - frm 2 t 6 times. Keeping in value the Bulgarian exprts t the Eurpean Cmmunity and the lwer grwth rate fr imprts determine the trend in the deficit in the trade balance. This indicates the existence f prblems with psitining f Bulgarian prducts n the Eurpean market resulting frm increased cmpetitive pressure f freign advanced high-tech prducts. A distinctive feature f the cmmdity structure f trade between Bulgaria and the Eurpean Unin is the presence f similar gds industries in exprts and imprts. Thrughut mst f the perid the mst significant part in Bulgarian exprts are textiles (clthing and knitwear) - 21%, machinery and equipment - 12%, fllwed by chemical prducts - 8% [1]. There is a reductin in the number f cases f traditinal fd, beverages, tbacc, etc., As a result f custms and nn-tariff barriers as well as the high quality, sanitary, technical and ther requirements f the Eurpean market. After the Eurpean Unin, the Organisatin fr Ecnmic Cperatin and Develpment (OECD) are the secnd largest trading partner f Bulgaria - with a share f ver 17% (see Fig. 1) (%) ЕU ОECD Central and Eastern Eurpe ОND Fig. 1. Trading partners in freign trade in Bulgaria in the perid Surce: NSI. Statistical Yearbk frm 1995 t 2011.
8 During the perid f active trade relatins with Turkey, the U.S. and Japan remain high. In ttal Bulgarian exprts, the share f exprts in Turkey is arund 10 % and in the U.S. - mre than 4.5 % [2,3]. Next can be put trade relatins with Central and Eastern Eurpe. During the analyzed perid, their share in the ttal value f freign trade varies between 10% and 12% [1]. In 2005, the highest share in the ttal value f freign trade ccupy Rmania, Bsnia and Herzegvina and Macednia - percentage hldings f between 2% and 4% [2]. Bulgarian exprts t the Czech Republic, Hungary and Pland have symblic dimensins, while imprts marked the gradual increase in size, reaching mre than 1.5% f the ttal value f imprts by cuntry. Changes in reginal distributin f cmmdity flws leading t a relative decline in freign trade f Bulgaria with the CIS. Statistics shw that during the perid amng the cuntries in this ecnmic grup with the highest share in Bulgarian exprts and imprts is Russia - nearly 10%, fllwed Gergia. These values are mainly due t imprts f energy cmmdities. During the research perid, the level f purchases f mineral fuels and related prducts in Russia remains high. Particularly ntewrthy analysis f the statistics revealing trade turnver between Bulgaria and Ukraine. In this respect there is a cnstant upward trend f exprts and imprts and cmmdity grups. During the perid there was an increase in the amunt f Bulgarian exprts t Ukraine by 1.8 times and imprts - mre than 1.5 times [1,2]. S review the Bulgarian imprts and exprts by cuntry grups allws the identificatin f the main trade partners f Bulgaria. Frm the adjusted data shw that Bulgaria's freign trade with the Eurpean Unin is develping trend. The rates f change f trade relatins with ther regins are significantly weaker and shuld be lking fr new pprtunities fr expansin and grwth f trade turnver. The rientatin f Bulgaria's freign trade determines the degree f penness f the ecnmy. In turn penness can stimulate desired ecnmic grwth nly if it ccurs parallel t the prcess f expanding cmmercial relatins f the cuntry. In this respect, ecnmic practice indicates the presence f cnstraints psed by the new cnditins in Eurpe and the wrld in which Bulgarian trade remains fcused n a relatively small number f cuntries. Statistics shw that during , the ttal number f cuntries trading partners f Bulgaria changed at the beginning f the perid amunted t 188, and in the end - 200, respectively [1]. This is assciated with the sustainability f emplyment market psitins, giving rise t certain ecnmic effects (see Tabl. 3).
9 Despite the changes in the freign plicy f the cuntry, the transfrmatin f the dmestic market an integral part f the Eurpean market remains a strategic gal. Participatin in the Eurpean marketplace is essential fr Bulgaria, as it prvides access t a large cnsumer demand and create pprtunities fr attracting freign investment. Membership prvides a framewrk f an pen and equivalent freign trade, with a high level f rganizatin and precisin f the rules f the market. Trade partners f Bulgaria Table 3. (number) Indicatrs Exchange f gds Imprt Exprt Surce: NSI. Statistical Yearbk frm 1995 t With a view t full cmmercial integratin f Bulgaria int the Eurpean Unin and the maintenance f active trade and ecnmic relatins with the Member States have the need t vercme a number f challenges. This requires addressing specific prpsals. Amng them as mre imprtant can be distinguished: Cnduct targeted and flexible trade and ecnmic plicy aiming at prmting Bulgarian exprts n the basis f the develpment f strategic industries with the participatin f cmpanies frm member states f the Eurpean Unin, the OECD, Central and Eastern Eurpe, CIS, Ukraine. Expanding the range f gds exprted frm Bulgaria, including fd and agricultural prducts frm hme and lking fr pprtunities t enhance the cmpetitiveness f Bulgarian prducts n the Eurpean market. Prmting investment and trade pprtunities fr the cuntry with the help f prfessinally trained trade and ecnmic fficials. Attracting freign investment t build a cmpetitive exprt-riented industries f interest t the Eurpean market.
10 Increasing the effectiveness f the activities f the Bulgarian Exprt Insurance Agency f cmmercial and nn-cmmercial risks fr exprt. T a large extent the realizatin f the abve bjectives can be achieved thrugh a balanced and sustainable ecnmic grwth, avid excessive deficit; cmpliance with budgetary discipline - rati f budget deficit t GDP and debt t GDP and mre. Within the Eurpean ecnmic system meeting these requirements is defined as an essential criterin fr inclusin. IV. Cnclusins S attempting t determine the cmmercial rientatin f Bulgaria in the perid , and t identify sme f the challenges that accmpany the prcess f its integratin int the trading cmmunity in Eurpe, giving rise t the frmulatin f the fllwing majr cnclusins: In the perid after the signing f the Assciatin Agreement level and pace f trade integratin between Bulgaria and the Eurpean Unin are increasing. Increasing the participatin f Member States in freign trade f Bulgaria. This is due t the cuntry's freign plicy pririties. The cuntries f the Organisatin fr Ecnmic Cperatin and Develpment is becming the secnd largest trading partner, fllwed by Central and Eastern Eurpe. Trade turnver between Bulgaria and the CIS cuntries is characterized by a relative decrease, causing the search fr new pprtunities t expand business activity. While exprts and imprts by cmmdity grups between Bulgaria and Ukraine marked the steady trend f grwth. This trend shuld be maintained and cntinued. The prcess f Bulgaria's accessin t the trading cmmunity f the Eurpean Unin has been accmpanied by a number f challenges in the transfrmatin f natinal markets int an integral part f the Eurpean market. In this cntext, it can be cncluded that the precise definitin f the prblems surrunding the develpment f freign trade relatins f Bulgaria, has particular relevance fr natinal retail cmpanies and their future participatin in sustainable business partnerships with similar structures. The prcess f deepening trade integratin can be ne f the decisive cnditins fr the realizatin f the full ecnmic Bulgaria's accessin t internatinal business life.
11 Literature: 1. Statistical Yearbk, Jurnal Списание Экономика Украйны, SCIENCEDIRECT - Eurpean Ecnmic Review, , Vl. 48, Issue 3, p., FRANCOIS J., MARTIN W., - Cmmercial plicy variability, bindings, and market access (PDF 238 K). 4. Mau, V. The drama f 2008: Frm Ecnmic Wnder t Ecnmic Crisis. Ecnmist, bk 2, Beva, B. Internatinal Marketing. Sfia, Catera, Ph. Internatinal Marketing. 6-th Editin, Hmewd, Illinis, Mencheva, L. et al. Internatinal Business. Sfia., P.H. Prizma, 2005.
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