A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade (tariffsand non-tariff barriers) are reduced or eliminated among the participating states.
Common Market<br /> <br />A common market is a type of trade bloc which is composed of a free trade area (for goods) with common policies on product regulation, and freedom of movement of goods and services. The goal is that the movement of capital, labour, goods, and services between the members is as easy as within them. The physical (borders), technical (standards) and fiscal (taxes) barriers among the member states are removed to the maximum extent possible.<br />
In simple words…..<br />COMMON MARKET: An agreement among two or more nations to eliminate trade restrictions with each other, to adopt a common trade policy with other nations, and to allow free movement of resources among their countries.<br />
A common market is a first stage towards a single market, and may be limited initially to a free trade area with relatively free movement of capital and of services, but not so advanced in reduction of the rest of the trade barriers.<br />The European Economic Community was the first example of a common market.<br />
BenefitsTo Market<br />full freedom of movement for all the factors of production between the member countries<br />Common market is a very competitive environment, avoiding monopolies.<br />lower costs<br />competition will innovate to create new products<br />profitability to be a result.<br />
To Customers<br />Consumers are benefited by the common market in the sense that the competitive environment brings them cheaper products, more efficient providers of products and also increased choice of products. What is more, businesses in competition will innovate to create new products.<br />
Problems<br /><ul><li>Transition to a single market can have short term negative impact on some sectors of a national economy due to increased international competition.
Enterprises that previously enjoyed national market protection and national subsidy (and could therefore continue in business despite falling short of international performance benchmarks) may struggle to survive against their more efficient peers, even for its traditional markets.
Ultimately, if the enterprise fails to improve its organization and methods, it will fail. The consequence may be unemployment or migration.</li></li></ul><li>Major Common Markets<br />European Economic Community(EEC)<br />Association Of South East Asian Nations(ASEAN)<br />Common Market For Eastern And Southern Africa(COMESA)<br />Union of South American Nations(USAN)<br />Caribbean Community<br />
European Economic Community<br />European Economic Community (EEC), organization established (1958) by Belgium, France, Italy, Luxembourg, the Netherlands, and Germany.<br />The European Union's Internal Market seeks to guarantee the free movement of goods, capital, services, and people within the EU's 27 member states.<br />It is also intended to drive economic integration whereby the once separate economies of the member states become integrated within a single EU wide economy.<br />
European Economic Community<br />First important accomplishments of the EEC was the establishment (1962) of common price levels for agricultural products. <br />In 1968, internal tariffs (tariffs on trade between member nations) were removed on certain products.<br />on 29 January 1966 whereby a gentlemen's agreement permitted members to use a veto on areas of national interest.<br />
European Economic CommunityAchievements<br />Free movement of capital<br />Free movement of services<br />Freedom of establishment<br />Freedom of movement of people<br />Free movement of workers<br />Free movement for the non-economically active<br />
Major Member Countries<br />Belgium <br />Denmark<br />France<br />West Germany<br />Greece<br />Ireland<br />Italy<br />Luxembourg<br />Netherlands<br />Portugal<br />Spain<br />United Kingdom<br />
ASEAN<br />ASEAN was preceded by an organisation called the Association of South east Asian Nations, commonly called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961. <br />
ASEAN Economic Community (AEC)<br />ASEAN has emphasized regional cooperation in the “three pillars” of security, sociocultural and economic integration.<br />The regional grouping has made the most progress in economic integration, aiming to create an ASEAN Economic Community (AEC) by 2015<br />
Free Trade Area<br />The foundation of the AEC is the ASEAN Free Trade Area (AFTA), a common external preferential tariff scheme to promote the free flow of goods within ASEAN. <br />The ASEAN Free Trade Area (AFTA) is an agreement by the member nations of ASEAN concerning local manufacturing in all ASEAN countries. <br />
Free Trade Agreements With Other Countries<br />ASEAN has concluded free trade agreements with PR China, Korea, Japan, Australia, New Zealand and most recently India. The agreement with People's Republic of China created the ASEAN–China Free Trade Area (ACFTA), which went into full effect on January 1, 2010.<br /> In addition, ASEAN is currently negotiating a free trade agreement with the European Union. Republic of China (Taiwan) has also expressed interest in an agreement with ASEAN but needs to overcome diplomatic objections from China.<br />
COMESA<br />Vision<br />COMESA’s Vision is to “be a fully integrated, internationally competitive regional economic community with high standards of living for all its people ready to merge into an African Economic Community”<br />
Mission<br />Its Mission to “Endeavour to achieve sustainable economic and social progress in all Member States through increased co-operation and integration in all fields of development particularly in trade, customs and monetary affairs, transport, communication and information, technology, industry and energy, gender, agriculture, environment and natural resources”, <br />
Caribbean Community<br />The Caribbean Community (CARICOM), is an organization of 15 Caribbean nations and dependencies. <br />CARICOM's main purposes are to promote economic integration and cooperation among its members, to ensure that the benefits of integration are equitably shared, and to coordinate foreign policy.<br />
Caribbean Community<br />Its major activities involve coordinating economic policies and development planning; devising and instituting special projects for the less-developed countries within its jurisdiction; operating as a regional single market for many of its members (Caricom Single Market); and handling regional trade disputes.<br />The secretariat headquarters is based in Georgetown, Guyana.<br />
Caribbean Community<br />CARICOM Members-Full member<br /> Antigua and Barbuda<br /> Bahamas<br /> Barbados<br /> Belize<br /> Dominica<br /> Grenada<br /> Guyana<br /> Haiti<br /> Jamaica<br /> Montserrat<br /> Saint Kitts and Nevis<br /> Saint Lucia<br /> Saint Vincent and the Grenadines<br /> Suriname<br /> Trinidad and Tobago<br />
Caribbean Community<br />Free trade<br />From around the year 2000, the Caribbean Community (CARICOM) states have placed a new focus and emphasis on establishing Free Trade Agreements (FTAs) with local and international trading partners. <br />In the past this was done in collaboration with the Caribbean Regional Negotiating Machinery (CRNM), however in 2009 the CARICOM Heads of Government have voted for the CRNM to be moved to the Caribbean Community organisation where it would become renamed the CARICOM Office of Trade Negotiations (OTN) similar to theOCTA of the Pacific Islands Forum.<br />