FACTSg

EMERGING MARKETS

Twenty six years ago there were just

10 countries in this sector
representing just 1% of the total value
of shares available to private investors.
Today those 23 nations represent 11%
of the investable market. In the decade
from 2003, emerging markets went
from making up 24% of worldwide GDP
to 43%.
That is not to say emerging markets
investing is risk-free or a one way
ticket. Because of the nature of these
countries development emerging
economies stock markets are liable to
volatile.
Macro events such as the global
recession hit emerging markets hard
with some regions still not fully
recovered. On the whole their
economies and stock markets have

less diverse revenue streams, and tend

to be in part reliant on exports and
commodities: which are controlled by
external factors.

However, many emerging economies

including China are refocussing
themselves to be domestically driven,
much like the current UK economy.
The WTO has reached several
agreements to reduce and end barriers
to global trade. The commission uses
individual countries negotiations for
membership of the WTO to push for
greater freedom in world trade

Types of trade agreement

There are 2 main types of international
trade agreement:

1.

Multilateral agreements are negotiated

between the 157 members of the

World Trade Organisation (WTO) - any
trade concession applies to all
members but with special
considerations for poor countries
2.Bilateral agreements are negotiated
between the EU and other
individual
countries or trading blocs - they include
the Free Trade Agreements (FTAs) the EU
is negotiating with India, Singapore and
Canada
What is TTIP?
The Transatlantic Trade and Investment
Partnership (TTIP) is a free trade
agreement being negotiated between the
EU and the USA. The negotiations started
in July 2013. EU and US negotiators will
meet alternately in Brussels and
Washington. The UK government is
working with the European Commission on
the negotiations.

The trade agreement has the potential

to add up to 10 billion to the UK

economy by:

2.

Reducing tariffs on cross-border trade

between the EU and the USA

2.Reducing other barriers to trade (for

example, reducing
unnecessary
differences in technical and regulatory
requirements, without lowering protection)
3.Lowering trade barriers and trading
costs should make it easier for companies
on both sides to access each others
markets. For consumers, this will lead to a
wider choice of goods at a lower cost.

The EU has signed a free trade

agreement with developing nations
like South Korea, which will make it
easier for British companies to do
business in these countries.
The current economy of the UK is
mainly domestically driven.

The WTO has reached several

agreements to reduce and end barriers to
global trade. The commission uses
individual countries negotiations for
membership of the WTO to push for
greater freedom in world trade.
This arrangement is part of the Common
Commercial Policy an agreement where
the EU represents all its member states in
trade negotiations with non-EU countries.