UNIVERSITY OF ECONOMICS AND FINANCE INTERNATIONAL ECONOMICS MID-TERM ESSAY GROUP 7 - A09E 1 st SHIFT THU & SAT Lecturer: PhD Nguyễn Anh Duy Members of group 7: Võ Thị Thái Ngân Đoàn Thị Ái Vân Nguyễn Xuân Quỳnh Lê Trần Thanh Mai Nguyễn Trần Hoàng Linh October 30, 2021 2 CONTENTS I. DEFINITION OF ECONOMIC INTEGRATION 4 1.1 What is economic integration? 4 1.2 Levels of economic integration 4 II. THE BENEFITS AND CHALLENGES OF VIETNAM’S ECONOMIC INTEGRATION DURING THE PAST 20 YEARS 5 2.1 The benefits of Viet Nam’s economic integration 5 2.2 The challenges of Vietnam’s economic integration 7 III. THE REASON WHY VIETNAM ACTIVELY PARTICIPATE IN MANY FTAs 14 IV. THE BENEFITS AND COSTS OF THESE FTAs 20 4.1 AFTA 20 4.2 CPTPP 23 4.3 EVFTA 24 V. THE RISE OF NON-TARIFF MEASURES 25 5.1. What are Non-tariff measures (NTMs)? 25 5.2. Explain the Rise of Non-tariff measures in recent years? 25 5.3. What are the main motives of these tools? 25 5.4. Some examples of Non-tariff measure 26 VI. THE ARTICLE: HOW TO MAKE TRADE WORK FOR WORKERS - ROBERT E. LIGHTHIZER 29 6.1 The major arguments of the author Robert E. Lighthizer – is US Trade Representative 29 6.2 Conclusion 30 VII. REFERENCES 31 3 I. DEFINITION OF ECONOMIC INTEGRATION 1.1 What is economic integration? Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Economic integration aims to reduce costs for both consumers and producers and to increase trade between the countries involved in the agreement. Economic integration is sometimes referred to as regional integration as it often occurs among neighboring nations. 1.2 Levels of economic integration Economic integration has been one of the main economic developments affecting international trade in the last few years. Countries have wanted to engage in economic cooperation to use their respective resources more effectively and to provide large markets for member countries of the resulting integrated areas. There are mainly four levels of economic integration: + Free trade area: is the least restrictive and loosest form of economic integration among nations. In a free trade area, all barriers to trade among member countries are removed. Each member country maintains its own trade barriers vis-à-vis con-member countries. + Customs union: is one step further in the economic integration process. As in the free trade area, goods and services are freely traded among members. In addition, however, the customs union establishes a common trade policy with respect to non-members. Typically this takes the form of a common external tariff, whereby imports from non-member countries are subject to the same tariff when sold to any member country. + Common market. The common market has the same features as a customs union, but, in addition, factors of production (labor, capital and technology) are mobile among members. Restrictions on immigration and cross-border investment are abolished.