TRADE BLOC The concept of trade blocs crucial in the context of international trade blocs are free trade zone designed to encourage trade activities across nations. Intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade are reduced or eliminated among the participating states.
The two principal characteristics of a trade bloc are that: (1) it implies a reduction or elimination of barriers to trade, and (2) this trade liberalization is discriminatory, in the sense that it applies only to the member countries of the trade bloc, outside countries being discriminated against in their trade relations with trade bloc members. Though few, there exist as well regionial integration agreements in which co-operation rather than preferential market access is emphasised. Trade blocs can also entail deeper forms of integration, for instance of international competition, investment, labourand capital markets (including movements of factors of production), monetary policy, etc.
TRADE BLOCS REFLECTION In this complex world of international trade, to sustain the competition from developed countries and to achieve competitive and strategic benefits, developing countries are resorting to trade alliances among themselves, which make them combat hegemonic power with a collective strength during the down of the twentieth century and after the world wars, many regional economic blocs come in different forms-free trade areas,
THE ROLE AND FUNCTION OF TRADE BLOCS Trade blocs activities political as well as economic implications. Eg. The European union the world largest trading blocs has harbored political ambition extending far beyond the free trading arrangement sought by other multistage regional economic organizations.
WHY TRADE BLOCS ARE DESIRABLE Trade blocs compliment global trade They protect intra regional trade form outside forces. They establish regional security.
WHY T. B. ARE UNDESIRABLE Import quotas(limiting the amount of imports into the country so that domestic consumers buy products made by their countries in their region). Custom delays (establishing bureaucratic formalities that slow down trade from the other region) Subsidies barrier (giving heavy subsidies to protect regional trade ) Voluntary boycotts and technical barriers.
The Organization of the Petroleum Exporting Countries (OPEC) History: The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960. Functions: The OPEC MCs coordinate their oil production policies in order to help stabilize the oil market and to help oil producers achieve a reasonable rate of return on their investments. This policy is also designed to ensure that oil consumers continue to receive stable supplies of oil.
WORLD TRADE BLOCS EUROPEAN FREE TRADE ASSOCIATION(EFTA) NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) ORGANIZATION OF PETROLIAM EXPORTING COUNTRIES (OPEC) ASSOCIATION OF SOUTH EAST ASIA NATIONS (ASEAN) SOUTH ASIAN ASSOCIATION FOR REGIONAL CORPORATION (SAARC)
The Organization of the Petroleum Exporting Countries (OPEC) It’s a permanent organization established in 1960 at the baghdad conference by iraniraq, kuwait, saudiarabia, and venezuela. It was later joined 8 other members. Its head quarter is in vienna. Its objective is to coordinate and unify petroleum policies amongs the member countries To secure fair and stable prices for petroleum producers. Proper price and regular supply of petroleum for consuming nations.
SAARC (SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION)
The SAARC Secretariat The SAARC Secretariat was established in Kathmandu on 16 January 1987. Its role is to coordinate and monitor the implementation of SAARC activities, service the meetings of the Association and serve as the channel of communication between SAARC and other international organizations. The Secretariat has also been increasingly utilized as the venue for SAARC meetings. The Secretariat comprises the Secretary General, seven Directors and the General Services Staff. The details of its officials and working divisions responsible for areas of work can be viewed under respective links.