INFLUENCE OF EU FREE TRADE AGREEMENT
he paper uses an impact assessment methodology with ex-ante indicator for free trade agreement to test the trade of the European Union and countries of the Fennoscandian Peninsula included Iceland. By estimates intraregional trade share, regional trade introversion index and intraregional trade intensity the objective is to evaluate if their trade have any signs for being natural or unnatural and if this could be because of the trade agreements. The foundation in trade theory is that trade should be accomplished by buying (and selling) of the cheapest producer, being neutral in their selection and choosing careful from price is positive. When this requirement does not hold trade could be expensive and therefore negative. When trade is conducted by choice and not by “natural roads” it could be biased, trade should be founded by comparative advantage to be positive and considered natural. The study shows that the European Union free trade agreement have a great capital validity and some small level of bias trade, although this does not mean it is bad, some level of bias trade could be hard to avoid being a Union. The Nordic countries shows a biased trade, even though being members of the EU or EES. The conclusion is that it is not possible to determine if the EU trade agreement is subconsciously developing unnatural trade, but the study shows that some partners in the union have biased trade. If this is because of the trade agreement is at this level left unanswered.