INTRODUCTION NAFTA is a treaty that was ratified by the legislatures inCanada, Mexico & U.S. & went into effect in 1994. It reduces or eliminates tariffs & trade barriers among this country. The industries most affected includes agricultural products, automobiles, pharmaceuticals & textiles. It will create the largest free trade in the world i.e.,360 million people. It solves a variety of issues: such as protection of intellectual property, the environment issues, a special panels is created to resolve disputes of unfair trade practices & investment restrictions.
NAFTA could eventually include North & South America; 850 million people with over $18 trillion in annual purchasing power. A free trade agreement was signed by USA & Canada in 1989 later on it was extended to Mexico in 1994. NAFTA is expected to eliminate all tariffs & trade barriers among these countries. NAFTA has a population of 363 million & hence it is one of the significant treading areas in the globe.
It was designed to promote economic growth by spurring competition in domestic markets and promoting investments from both domestic and foreign sources. They have restructured to take advantage of economies of scale in production & intra-industry specialistion. Trade relations among Canada, Mexico & US have broadened substantially since NAFTA’s implementation, though experts disagree over the extent to which this expansion is a direct result of the deal. Trade with NAFTA partners now accounts for more than 80% of Canadian & Mexican trade, and more than a third of U.S trade.
OBJECTIVES OF NAFTA To create new business opportunities particularly in Mexico. To enhance the competitive advantage of the companies operating in USA, Mexico & Canada in wider international markets. To reduce the prices of the product & service. To enhance industrial development & there by employment throughout the region. To provide stable and predictable political environment for the investors. To develop industries in Mexico in order to create employment and to reduce migration from Mexico to USA.
To assist Mexico in earning additional foreign exchange to meet its foreign debt burden. To improve & consolidate political relationship among member countries.
TREAD COMMODITIES OFNAFTA Livestock Products Grains, Oilseeds, and Products Vegetables Citrus and Products Fresh Fruits
ASEAN(ASSOCIATION OF SOUTH- EAST ASIAN NATIONS)
INTRODUCTION The formation of ASEAN, enable the membercountries to have1. Close cohesiveness,2. Share their economic and human resources and3. Achieve synergyin the development of their1. Agricultural sector,2. Industrial sector and3. Service sectors.
A group of six member countries, viz.,1. Singapore,2. Brunei,3. Malaysia,4. Philippines,5. Thailand and6. Indonesia, agreed in Jan 1992 to establish a CEPTplan. This plan helped to create an ASEAN’s free trade area in 15yrs with effect from Jan 1993. The CEPT allows for tariffs cut ranging from 0.50% to 20.00% beginning with products.
Vietnam also become the member of ASEAN in 1995, In 1997, Laos and Myanmar In April 1999, Cambodia got its membership, with the object of securing mutual understanding & cooperation.Its Aims includes: Accelerating economic growth, Social progress, Cultural development, Protection of regional peace, stability and opportunities among its member countries.
The emergence and successful operation of EEC and NAFTA gave impetus for forming of ASEAN. The ASEAN member countries have developed economically at a fast rate in the global. Their strength enabled them to achieve faster industrialization. ASEAN countries have the determination to develop south-east Asia a nuclear weapons free area & a zone of peace, freedom & neutrality.
OBJECTIVES OF ASEANThe aims & purposes of ASEAN are: To accelerate the economic growth, social progress and cultural development in the region. The spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of South-East Asian Nations. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries. To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical & administrative fields.
To provide assistance to each other in the form of training and research facilities in the educational, professional, technical, and administrative spheres. To collaborate more effectively for the greater utilization of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples.
To promote South-East Asian studies. To maintain close & beneficial cooperation with existing international & regional organization with similar aims & purposes, & explore all avenues for even closer cooperation among themselves.
TRADE COMMODITIES IN ASEAN Electric machinery, equipment and parts; sound equipment; television equipment; Mineral fuels, mineral oils & products of their distillation; bitumen substances; mineral wax; Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof; Vehicles, parts & accessories; Plastics & articles; Rubber & articles;
Natural or cultured pearls, precious or semiprecious stones, precious metals and imitation jewelry; coin; Organic chemicals; Optical, photographic, cinematographic, measurin g, checking, precision ,medical or surgical instruments/apparatus; parts & accessories; Animal or vegetables fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes.