Trade Blocs DEFINITION A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.
TYPES OF TRADE BLOCs
List of Trade Blocs
List of Trade Blocs
OPEC The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the BAGHDAD CONFERENCE on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar Indonesia Socialist Peoples Libyan Arab Jamahiriya United Arab Emirates Algeria Nigeria Ecuador Angola Gabon
OPEC HEADQUARTERS : Vienna OBJECTIVE: To co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers An efficient, economic and regular supply of petroleum to consuming nations To ensure a fair return on capital to those investing in the industry.
Functions of OPEC Review the status of the international oil market and the forecasts for the future in order to agree upon appropriate actions which will promote Price stability in the oil market. Decisions about matching oil production to expected demand are taken at the Meeting of the OPEC Conference. Provides research and administrative support to the Secretariat body who disseminates news and information to the World at large.
European committee (EC) The European Economic Community (EEC) (also referred to European Community, or the Common Market) was an international organization that existed between 1958 and 1993 which was created to bring about economic integration (including a single market) between Belgium, France, Germany, Italy, Luxembourg and the Netherlands. OBJECTIVES : To ensure the economic and social progress of their countries by common action to eliminate the barriers which divide Europe Recognizing that the removal of existing obstacles calls for concerted action in order to guarantee steady expansion, balanced trade and fair competition
European committee (EC) To strengthen the unity of their economies and to ensure their harmonious development by reducing the differences existing between the various regions and the backwardness of the less-favored regions Intending to confirm the solidarity which binds Europe and the overseas countries and desiring to ensure the development of their prosperity Resolved by thus pooling their resources to preserve and strengthen peace and liberty
NAFTA NAFTA is an agreement signed by the governments of the United States, Canada, and Mexico creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. In terms of combined purchasing power parity GDP of its members, as of 2007[update] the trade block is the largest in the world. This agreement will remove most barriers to trade and investment among the United States, Canada, and Mexico. Under the NAFTA, all non-tariff barriers to agricultural trade between the United States and Mexico were eliminated. In addition, many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years. This allowed for an orderly adjustment to free trade with Mexico, with full implementation beginning January 1, 2008.
NAFTA Benefits of NAFTA
UNCTAD Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy. UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development. The organization works to fulfill this mandate by carrying out three key functions: Forum for intergovernmental deliberations Research, policy analysis and data collection Technical assistance
UNCTAD Brief overview of activities:
Free Trade Agreement Definition Sovereign nations join together, usually on a regional scale, to create free trade agreements. Purpose Free trade agreements are created to lower trade barriers and to stimulate trade between member countries. Member countries belonging to the free trade area trade freely with each other while maintaining trade barriers and tariffs for non-member countries.
List of Free trade agreements
Asia-Pacific Trade Agreement (APTA)
ASEAN Free Trade Area (AFTA)
ASEAN Plus Three
ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
African Free Trade Zone (AFTZ)
Caribbean Community (CARICOM)
Central European Free Trade Agreement (CEFTA)
Dominican Republic – Central America Free Trade Agreement (DR-CAFTA)
North American Free Trade Agreement (NAFTA)
South Asia Free Trade Agreement (SAFTA)
Latin American Integration Association (ALADI)
European Economic Area (EEA)
Commonwealth of Independent States Free Trade Agreement (CISFTA)
Economic Community of West African States (ECOWAS)
World Trade Organization Agreements
Agreement on Agriculture
Agreement on the Application of Sanitary and Phytosanitary Measures
Agreement on Technical Barriers to Trade
Agreement on Trade-Related Aspects of Intellectual Property Rights
General Agreement on Trade in Services
Members (including dual-representation with the European Communities) Draft Working Party Report or Factual Summary adopted Goods and/or Services offers submitted Memorandum on Foreign Trade Regime submitted Observer, negotiations to start later or no Memorandum on FTR submitted Frozen procedures or no negotiations in the last 3 years No official interaction with the WTO
WTO Agreements Agreement on Agriculture: The AoA has three central concepts, or "pillars": domestic support, market access and export subsidies. Agreement on the Application of Sanitary and Phytosanitary Measures: Under the SPS agreement, the WTO sets constraints on members' policies relating to food safety (bacterial contaminants, pesticides, inspection and labeling) as well as animal and plant health (imported pests and diseases). Agreement on Technical Barriers to Trade: The object ensures that technical negotiations and standards, as well as testing and certification procedures, do not create unnecessary obstacles to trade".
WTO Agreements Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): The Agreement on Trade-Related Aspects of Intellectual Property Rights sets down minimum standards for many forms of intellectual property (IP) regulation. General Agreement on Trade in Services: was created to extend the multilateral trading system to service sector, in the same way the General Agreement on Tariffs and Trade (GATT) provides such a system for merchandise trade.
WTO Agreements Trade related investment measures (TRIMS): Rules that apply to the domestic regulations, often as apart of an industrial policy. Prohibitions under TRIMS
WTO Agreements and India
Impact on international trade Positive FTAs and trade blocs as drivers for liberalization. Members obtain preferred access to the markets of other members. Reduce trade irritants and restrictions. Negative The problem of trade diversion. FTAs and trade blocs only confer economic advantages when they are negotiated with countries which are significant trading partners. Increase the complexity of the international trading system Raise transaction costs for business. Increased costs for the trading blocks or the organizations.