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Where Will Your Next Holden Come From? The 2004 EU Enlargement and Trade with Australia
Author(s) -
Pomfret Richard,
Sourdin Patricia
Publication year - 2017
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12211
Subject(s) - accession , resizing , international trade , czech , value (mathematics) , european union , business , economy , political science , economics , linguistics , philosophy , machine learning , computer science
The impact on Australia of the 2004 EU enlargement highlighted a major change in the global economy. Previous EU enlargements, notably British accession in 1973, diverted trade from third countries such as Australia. After 2004, trade between Australia and new Eastern European EU members boomed. Deep integration allowed EU firms to create regional value chains. Cars produced in regional value chains, often with final assembly in Eastern Europe, are globally competitive. Reduced trade costs contributed to competitiveness, even in distant Australia, where Volkswagen, Audi, Peugeot and Holden cars are imported from Slovakia, the Czech Republic, Hungary and Poland.