EU vs. SADC: Evaluating Integration and Barriers to a Single Market

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This report provides a comparative analysis of the European Union (EU) and the Southern African Development Community (SADC) as regional trade blocs. It begins with an introduction to legal systems, emphasizing the EU's legal framework and its success in creating a single market through the sharing of member states' powers. The report then delves into the EU's economic achievements, including its role as a major exporter and importer, and the benefits of its single market. Subsequently, the report shifts its focus to the SADC, outlining its member states and its objectives of economic development, peace, security, and poverty reduction. The analysis evaluates the level of integration achieved by SADC, comparing it to the EU and highlighting the barriers SADC faces in establishing a single market. The report concludes by summarizing the key differences and challenges in achieving similar levels of integration between the two trade blocs.
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Advanced Legal
Systems
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Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
‘The European Union is the most successful regional trade bloc in the world, but its greatest
success, its Single Market, could not have been achieved without the willingness of its
member states to share their powers on key issues’. ..................................................................4
Using the European Union as the basis for comparative analysis, select another regional trade
bloc, and critically evaluate the level of integration it has achieved. You should also highlight
any barriers to securing the level of integration required to create a single market like the
European Union’s.......................................................................................................................8
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Legal system is the procedure or process through which through which law can be
enforced and interpreted in such a way that it is able to analyse the different aspects of law.
There are different types of legal system that fits in different categories such as common law,
civil law, religious law, customary law and even the mixed systems. The legal system is mainly
conducted in order to maintain the law and order in country with rights provided to people within
the society. The European Union EU has its own separate legal system which means it is
separate from the international law. There is a direct or may be an indirect control on the laws of
member states. The EU is part of the legal system of each of its member states and can also be
considered as a source of law in itself as it has its own separate legal system. There are four main
institutions of European union which are European Parliament, European Commission, Council
of European Union and Court of Justice of the European Union. The law of EU is enforced
through the European Commission where it mainly implements law on employment and
industrial relations in order to take legal form especially of the Directives. This report will cover
the most successful trade bloc in the world which is European power and will deeply analyse the
level of integration in order to create a single market which is same as European Union.
TASK
‘The European Union is the most successful regional trade bloc in the world, but its greatest
success, its Single Market, could not have been achieved without the willingness of its
member states to share their powers on key issues’.
EU is the largest trade bloc in the world and is also one of the biggest exporter of goods
and services that are manufactured by them and even has even spread in hundreds of countries by
being the biggest importer in importing goods and services in the market. The economic growth
of the country is developed or enhanced through the alliance of countries of Europe that is
developed through currency and shared market of Europe1. The main economic engine of EU is
the single market where it able to freely move its goods , services, people and money in a very
convenient manner. European Union is one of the biggest and largest single market in the world
1 Bin Sheng and Chenxin Jin, 'An Evaluation Of The Regional Comprehensive Economic
Partnership Agreement: Market Access And Trading Rules' (2022) 30 China &
World Economy.
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as it is also the most outward oriented economies in the world. The most important founding
principle of EU is to allow free trade among its members in order to open to commitment of free
trade all over the world. In context to international investments, the European Union is ranked
first in relation to its inbound and outbound investments all over the world. It is also very
successful as it is one of the top trading partners among hundreds of countries. The reason of
major success of European Union is the aspect of being biggest exporter in the world with
biggest import market in almost hundreds of countries2. The main purpose of European Union is
to secure the well being of its citizens by promoting peace, security in the country. It mainly
aims to secure the freedom and justice of its citizens with regulation of external borders in order
to prevent the crimes and offences committed within the country.
The single market of Europe is one of the biggest achievements of European Union as it has
helped in multiplying and developing the economic growth with smoothening of process of trade
for the consumers in application of daily conduct of business in the country. The biggest and
largest trading bloc in the world is Regional Comprehensive Economic Partnership (RECP) with
the biggest free trade deal in world. The plan of European Commission is to analyse the overall
potential of single market with application of a single market strategy in order to enable the
citizens of Europe to trade, work, travel and live freely all over the country3. The adoption of
single market act or strategy has helped in bringing various incredible benefits and developments
that has made the life of citizens much easier through it free movement of services, goods and
capital all over the region of Europe. The citizens are able to conduct their business or trade in a
very smooth and easy manner with the adoption of single market strategy. The European single
market is considered to be good and beneficial as it is a single market that is without any borders
and has allowed the citizens to do commercialise their business and trade in a smooth and easy
manner. The single market of Europe has also helped in removing various legal, technical and
2 D.Ya. Hench, 'NATO Bloc Policy In EU Countries' (2019) 5 Contemporary problems of
social work.
3 G. Zorin, 'Single Market: EU And EAEU Experience' [2020] Mezhdunarodnaja
jekonomika (The World Economics).
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bureaucratic barriers that has enables in building a union in capital markets of Europe4. It has
also encouraged businesses of small size to develop their economy by making it a great country
to invest in business with conduct of free and easy trade all over the country.
The success of single market could not be achieved without the willingness of its member states
to share their powers on key issues as it has been a very valuable shield guard at the time of
economic crisis and has also helped the neighbouring countries in handling their problems of
businesses with prevention of beggar-neighbour policies in order to protect the economy of the
country. The main importance of European single market is that it helps in making the process
of trade in a smooth manner by facilitating the trade relations among the citizens of country. It
has fuelled the creation and growth of many jobs with easy access of free trade all over the
country. It has also enabled the consumers to trade in a easy and smooth manner with availability
of free trade throughout the region of Europe. The aspect of single market has influenced the
European market in such a beneficial way that it has strengthen the competition of trade in the
European Union. It has further lead to improving and strengthening the economic growth of the
country with improvement in the efficiency and productivity of businesses in a smooth and easy
manner5. A single finance market has enabled in easily comparing the prices of different
countries that has further helped in boosting the competition in market in order to be beneficial
for the consumers. This easy and free access of trade in business has helped in making the
conduct of business in a easy and free manner with providing affordable prices of trade to people
all over the globe. It has also helped in stabilising the prices with safe and cheap business with
availability of smooth and easy process in conduct of its business6. The aspect of single market
4 George Daskalakis, 'Temporal Restrictions On Emissions Trading And The
Implications For The Carbon Futures Market: Lessons From The EU Emissions Trading
Scheme' (2018) 115 Energy Policy.
5 Gurpreet Kaur and Jasdeep Kaur Dhami, 'Empirical Analysis Between Export And GDP
: A Case Of BIMSTEC As A Regional Trading Bloc' (2016) 5 Arthshastra : Indian
Journal of Economics & Research.
6 Huan Yik Lee, M. Obaidul Hamid and Ian Hardy, 'English And Regional Identity In
ASEAN' [2021] World Englishes.
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has proved to be a major contributor in terms of its growth and development. It has also
improved the area of employment with creation and availability of more jobs and also providing
more of choices to its consumers at affordable and reasonable prices.
There are various advantages of being a member of European Union which includes:
The privilege of being biggest single market in the world.
The citizens are free to live, work and study anywhere in the European Union.
It provides assistance to millions of people all over the globe in the entire world.
There is also peace in the working and stability of business in international market.
The EU is consistently working towards promoting peace, stability and prosperity in the entire
market with enforcement of rule of law all across the globe. The common foreign and security
policy of EU aims to resolve its conflicts with better understanding of international policies
through following and adoption of international rules within the international market7. The
citizens of European region are provided a wide range of rights that are enforced through the
European Union in order to protect the rights of citizens all across the region. The people of
citizens of Europe enjoys all kinds of political, personal, social and economic rights through the
charter of fundamental rights. The workers of the European region also enjoys some of its
employment rights through which the health and safety of workers is protected at the workplace.
The employees are also provided equal opportunities at workplace and are even protected from
discrimination with protection from labour laws in the region. The rights of individual has also
been protected through the enforcement of EU in order to protect the information and data to
have more access over the personal data of individual. The main and primary position of trade
has achieved a strong position in global market with smooth flow of goods and services all
across the international market. European Union has also worked towards protecting the human
rights by development of the human rights policy in order to protect the citizens from torture,
penalty and other violent acts. Therefore, the aspect of single market has achieved a great
7 Konrad Greilich, 'The EU Directive On The Single Digital Market And Its Influence On
The Freedom Of Expression' [2019] SSRN Electronic Journal.
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potential in order to regulate the economic growth and also to make the life of consumers and
European businesses simpler and easier.
Using the European Union as the basis for comparative analysis, select another regional trade
bloc, and critically evaluate the level of integration it has achieved. You should also
highlight any barriers to securing the level of integration required to create a single
market like the European Union’s
SADC which is Southern African Development Community is a regional economic community
which comprises of 16 member states which are Angola, Botswana, Comoros, Democratic
Republic of Congo, Eswatini, Lesotho, Madagascar,Malawi, Mauritius, Mozambique, Namibia,
Seychelles, South Africa, United Republic Tanzania, Zambia and Zimbabwe.
The main purpose of it is to achieve economic development in order to maintain peace and
security and to remove poverty and to improve the standards of people of Southern Africa in
order to support the socially disadvantaged people. The main benefit of this is explore the future
which is to recognise the offence of theft with protection of the background and courses of
training with processing of credit card. The best advantage of being a member is to get best deals
from being a member through group-buying deals.
SADC (Southern African Development Community) is a community with 15 countries with the
fulfilment of common objective, which is of regional integration. It emphasis on maintaining
good trade relations among the member countries in order to enhance the relations in order to
produce or develop a qualitative product. Since 25 years, it has made achievements in various
areas of regional cooperation and integration with achievement in different areas of democracy,
peace and security, infrastructure and services, governance, finance, trade and industry, food,
agriculture, natural resources, agriculture, investment, etc. There are four main types of regional
integration such as Free trade area, common market, customs union and economic union. The
five different levels of economic integration are free trade area, customs union, preferential
trading, economic union, common market, complete economic integration with economic and
monetary union. The main goal of SADC common market is to execute economic liberalisation
and development in various areas of trade8.
8 T. M. Andersen, N. Haldrup and J. R. Sorensen, 'Labour Market Implications Of EU
Product Market Integration' (2000) 15 Economic Policy.
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The ASEAN integration was also one of integration that motive was mainly made to promote the
economic growth with expansion of its business in international markets all over the globe. The
trading in the member countries has been easier with the participation of different countries in a
unified way. There are some advantages and disadvantages in relation to integration of regional
market which are mentioned below:
Advantages:
More of investors – If there is an established and strong company then there are higher
chances of getting investment from foreign investors as the strong foundation of such
company has helped in attracting profitable investors for growth in the business. It does
not matter to have a company established in any particular country as a strong company
will have a commendable mark in any place or country. If the company is in local market
the it can attract the foreign investors which can help in attaining profit in business with
large number of investors.
Larger market – Each and every region has a chance to have a higher chance in merging
its business in order to have a bigger opportunity9. There is a wider scope of availing the
business in neighbour countries with huge potential of expansion of business in
neighbouring countries. The expansion of such business will help in attracting huge profit
for growth and development of business in establishing market.
Disadvantages:
Expensive labor – The main disadvantage of integration is the rising competition among
the competitors in order to expand and grow its business. Due to increasing competition it
will be difficult for the local companies to get strong applicants for conduct of its
business on wider basis. The fluctuation in the price of currency will also lead to prevent
the exchange rates of currency due to which there are higher chances of paying more for
the company and which in turn will prevent the countries to deal in such things. The
9 Verena Višković, Yihsu Chen and Afzal S. Siddiqui, 'Implications Of The EU
Emissions Trading System For The South-East Europe Regional Electricity Market'
(2017) 65 Energy Economics.
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company has also to increase the salary of its applicants in order to get appropriate
candidates.
Stronger competition – The expansion in business has led to increase the competition in
the market. In order to have a higher consumer base, it is necessary to strongly compete
in the market10. The competition in market is very fierce and it is very important to stand
strongly in order to conduct smooth business in market. The process of strategising is not
that easy as there are new competitors in market with a different approach that may
prevail the existing business in the market.
There are various benefits of having a single market which are as follows:
There is decrease in the prices of products and services with more availability to its
consumers.
The opportunities in market has grown increasingly with better opportunities in
employment and services.
The reach to suppliers and consumers is very smooth and easy with quick access for
availability of its services.
The single market has also established itself as a home market for providing goods,
products and services to millions of consumers.
The continuos flow of trade with increase in economic growth and higher opportunities in job
has enabled in reducing the barriers of trade with providing benefit to the economic growth with
its smooth and easy access of trade. A digital single market would also help in providing benefit
to the market which may further help in contributing to various new opportunities for expansion
and growth in its businesses11. The digital single market could help in earning financial stability
which could further help in increasing the business in the market. There might also be increase in
online services with improvement in the service of digital market. There are many barriers in
order to secure the level of integration for creation of single market like the European Union
which means the formation of single market is still incomplete and has not able to reach its full
potential.
10 . Deviatnikovaitė I, 'EU Administrative Law What Are EU-Level Public
Administrators?' (2018) 59 Hungarian Journal of Legal Studies
11 Verena Višković, Yihsu Chen and Afzal S. Siddiqui, 'Implications Of The EU
Emissions Trading System For The South-East Europe Regional Electricity Market'
(2017) 65 Energy Economics.
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There are various challenges that may arise in full integration of single market such as the
different tax issues, logistics, private law issues and other differences across the member states.
There may also not be equal distribution of economic benefits among the member states of EU
which is also a kind of barrier in establishment of complete single market. The size and exposure
of a company may also lead to affect the various sectors of business with difference in it
economic growth. The economic gain can be retained by using and applying various policy
measures in order to attain the economic growth for regulation of services in the market. The
service of free goods may also help in regulating the market for easy and smooth flow of goods
and services all across the globe. The member states could take help from other EU member
states in order to regularise the free movement of goods and services for harmonising of products
in the market.
There is enormous scope in single market with the growth of digital market in the region of
Europe. It may also help in improving the status of local market with growth in the job
opportunities which may in turn help in stabilising economic growth in the market. A single
market may be very beneficial as it may help in allowing the members to access freely with each
other markets through the formal arrangement among the sovereign nations in order to allow
easy access for all the countries. This will allow the goods and services to be moved freely
without any restriction which in turn will allow the labour and capital to be moved freely for the
easy access of such services.
The member states are also working towards decreasing or reducing the barriers of trade in order
to regulate or compensate its economic growth with regulation and stabilisation of financial and
growth in the market. The arrangement through which such economic policies can be regularised
is referred as the arrangement of economic integration. The integration that occurs among
neighbouring nations can also be termed as regional integration which can also be known as
economic integration. It also aims to make the trade relations between the countries on a much
higher notch with decrease or reduction in the cost of its products and services to provide benefit
to the producers and consumers12. Economic integration helps in removing the trade barriers
which further helps in increasing the economic growth with increase in productivity of products
and services in the market.
12 Tomasz MOROZOWSKI, 'Challenges And Opportunities For The EU Digital Single
Market, Brussels, 23 April, 2018' [2018] Przegląd Strategiczny.
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There are seven stages in economic integration which includes free trade area, common market,
customs union, trading area, economic and monetary union, economic union with a totally
complete economic integration13. In the last stage, there is a complete regulation of economic
growth and fiscal policies.
There are various advantages of Economic integration which are mentioned below:
The trade relations are created and enhanced in such a way that it is beneficial for
regulation of such trade practices.
The opportunities in employment or job is also increased with the easy access of products
and services in the market.
There is decrease or reduction in the cost of trade which further helps in cooperation
among the members of business in the market.
There is also enhancement in the availability of goods and services with wider scope in
the international market.
Economic integration helps in increasing the purchasing power of the member nations
which further helps in growing and expanding the business all over the globe.
The opportunities in employment may also be improved or enhanced with the liberalisation of
trade which may further help in expansing its business in the market with availability of online
services through technology and increased investment from the investors. The economic ties can
also be improved with the political cooperation that has existed among countries in order to
make the relationship of the member states stronger. The conflicts among members may also be
resolved with increase in incentive which may lead to increase the stability in market through
political cooperation.
Economic integration also arise with certain costs which includes:
Shift and reduction in employment – If the company finds out that the prices of labour are
cheap, then they can move their operations of production to areas in order to have the
benefit of labour at affordable costs14. Wherever there are better opportunities, the
employees may move to different areas in order to increase their chances of employment.
13 VAN DEN BRINK T, 'The Impact Of EU Legislation On National Legal
Systems: Towards A New Approach To EU – Member State Relations' (2017) 19
Cambridge Yearbook of European Legal Studies
14 Konrad Greilich, 'The EU Directive On The Single Digital Market And Its Influence On
The Freedom Of Expression' [2019] SSRN Electronic Journal.
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Diversion of Trade – If the practice of trade is against the policy of member state then
there can be diversion from non members to members in order to stabilise such services.
Erosion of national sovereignty – It is required from the member of member states to
follow and adopt the rules of trade in order to regulate its fiscal and monetary policies
that are made by a body of policymaking.
Therefore, economic integration is very helpful as it helps in providing various economic
benefits to the neighbouring countries and member states. The free and easy access of such
products and goods helps in regulating the capital flow with easier movement of workers all over
the region15. It also helps in strengthening the ties and bonds of consumers with its investors in
order to ease the process and method of movement of goods and services in the market.
CONCLUSION
From the above report it is concluded that, the process or manner through which law can be
enforced and interpreted is referred as legal system. The most successful regional trade bloc in
the world is of the European Union as it exhibits the system of single market which is beneficial
for people all over the globe. The law of EU is very important as it helps in treating the member
states in an equal manner with fair treatment to other member states. EU is mainly based on rule
of law which means that every action taken by the EU is approved in such manner that it is
agreed in a voluntarily and democratic manner. The aspect of single market has helped in
increasing the economic growth of the country with easy access of goods, products and services
through free movement of trade all over the region of Europe. Association of South East Asian
Nations (ASEAN) is another regional world trading bloc which is working towards stabilising
the economic growth with expansion of the policies of economy of its member states. Singapore
is one of the biggest trading market country for the ASEAN countries. It is also working towards
smoothening the process of trade with decreasing of trade barriers for free flow of goods and
services all over the region.
15 . Merket H, The EU And The Security-Development Nexus (2017)Senyk, M., 2017. The
origin and destination principles as alternative approaches towards VAT allocation.
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REFERENCES
Books and Journals
'Single Digital Market Of The EU' [2018] Актуальные проблемы российского права.
Bin Sheng and Chenxin Jin, 'An Evaluation Of The Regional Comprehensive Economic
Partnership Agreement: Market Access And Trading Rules' (2022) 30 China &
World Economy.
D.Ya. Hench, 'NATO Bloc Policy In EU Countries' (2019) 5 Contemporary problems of social
work.
Deviatnikovaitė I, 'EU Administrative Law – What Are EU-Level Public Administrators?' (2018)
59 Hungarian Journal of Legal Studies
G. Zorin, 'Single Market: EU And EAEU Experience' [2020] Mezhdunarodnaja jekonomika
(The World Economics).
Galera S, Judicial Review (Council of Europe 2010)
George Daskalakis, 'Temporal Restrictions On Emissions Trading And The Implications For The
Carbon Futures Market: Lessons From The EU Emissions Trading Scheme' (2018) 115
Energy Policy.
Gurpreet Kaur and Jasdeep Kaur Dhami, 'Empirical Analysis Between Export And GDP : A
Case Of BIMSTEC As A Regional Trading Bloc' (2016) 5 Arthshastra : Indian Journal
of Economics & Research.
Huan Yik Lee, M. Obaidul Hamid and Ian Hardy, 'English And Regional Identity In ASEAN'
[2021] World Englishes.
Konrad Greilich, 'The EU Directive On The Single Digital Market And Its Influence On The
Freedom Of Expression' [2019] SSRN Electronic Journal.
Merket H, The EU And The Security-Development Nexus (2017)Senyk, M., 2017. The origin and
destination principles as alternative approaches towards VAT allocation.
Michelle Cini and Patryk Czulno, 'Digital Single Market And The EU Competition Regime: An
Explanation Of Policy Change' (2022) 44 Journal of European Integration.
Rahil Mammadov, 'Copyright Infringement In The EU Digital Single Market' [2021] SSRN
Electronic Journal.
Stefanie A. Haller, 'More Intra-Region Direct Investment Through Economic Integration?
Modelling The Experience Of The EU's Single Market' (2010) 25 Journal of Economic
Integration.
T. M. Andersen, N. Haldrup and J. R. Sorensen, 'Labour Market Implications Of EU Product
Market Integration' (2000) 15 Economic Policy.
Tomasz MOROZOWSKI, 'Challenges And Opportunities For The EU Digital Single Market,
Brussels, 23 April, 2018' [2018] Przegląd Strategiczny.
VAN DEN BRINK T, 'The Impact Of EU Legislation On National Legal Systems: Towards A
New Approach To EU – Member State Relations' (2017) 19 Cambridge Yearbook
of European Legal Studies
Verena Višković, Yihsu Chen and Afzal S. Siddiqui, 'Implications Of The EU Emissions
Trading System For The South-East Europe Regional Electricity Market' (2017)
65 Energy Economics.
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