Presentation made under MBA internal assignments. Covers NAFTA, SAARC, ASEAN, EU.

1. 1
MBA (III Sem)
PROJECT
Presented by:
KARAN KSHEERSAGAR
MAMTHA RATHORE
KUMARI PUJA
NAGILLA SHRAVYA
KOCH PRATYUSHA

2. What is a TRADE BLOC?
2
A trade bloc is a type of
Intergovernmental agreement, often
part of a regional intergovernmental
organization, where barriers to trade
(tariff and others) are reduced or
eliminated among the participating
states

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5. 1. SEVEN PIGEONS ?
2. BUDDHA EYE ?
3. THUMB ?
4. HAND ?
5. GOLDEN COLOR ?
What LOGO represents?
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6. The South Asian Association for Regional
Cooperation is an economic and geopolitical
organization that was established to promote socio-
economic development, stability, and welfare
economics, and collective self-reliance within its
member nations.
Established: 8 Dec 1985.
Head Quarters : Kathmandu, Nepal.
Members: India, Pakistan, Bangladesh, Bhutan,
Nepal, Sri Lanka, Maldives and Afghanistan
About SAARC
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7. Objectives
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8. • First Meeting1905
• Bangladesh Contribution1977-80
• Integrated Program Of
Action
1983
• Charter Dec 08 , 19851985
• Economic Union Dream2010
• Single Currency2015
History
8

9. Structure of SAARC
Technical Committee
Programming Committee
Standing Committee
Council of Ministers
The Council : Highest Policy-Making Body
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10. Observers
MyanmarMauritius
AustraliaJapa
n
Iran
European
Union
ChinaUnited
States
South Korea
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11. Areas Of Co-operation
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12. Conventions
• Prevention Of Trafficking1
• Promotion On Welfare Of
Children2
• Mutual Assistance On Criminal
Matters3
• Narcotic Drugs4
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13. Agreements
• Establishment Of Saarc Arbitration
Council.1
• Custom Matters.2
• Charter of SDF 31st JULY 2008.3
• Establishing SAARC Food Bank.4
• Avoidance Of Double Taxation.5
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14. The Agreement on SAARC Preferential Trading Arrangement
(SAPTA) was signed on April 11, 1993, and entered into force
on December 7, 1995, with the desire of the Member States of
SAARC to promote and sustain mutual trade and economic .
Trade Policies
1. SAPTA
Objectives:
1. To reduce the trade barriers of the members contains of the SAPTA
agreement.
2. To reduce the discrimination of businesses among the regions.
3. To reduce the non trade barriers of the member countries of the
SAPTA agreement.
4. Gradual liberalization of trade among the SAARC members.
5. Elimination of trade barriers among the SAARC nations. Especially;
Tariff reduction.
6. Promoting and sustaining trade and economic cooperation among the
member nations of SAARC.
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15. The South Asian Free Trade Area (SAFTA) is an
agreement reached on January 6, 2004, at the 12th
SAARC summit in Islamabad, Pakistan.
2. SAFTA
Objectives:
1. Elimination of Trade Barriers.
2. Promoting conditions of fair competition.
3. Creation of Effective Mechanism.
4. Framework for regional co-operation.
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16. India’s Bilateral Trade
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17. A brief idea of stages of
working of SAARC
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18. Recent in News
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21. About EU
It is political and economic union of 28 member
states.
It operates through a system of supranational
independent institutions and intergovernmental
negotiated decisions by the member states.
The European Union is set up with the aim of
ending the frequent and bloody wars between
neighbors, which culminated in the Second World
War.
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22. History
Year Event
1945 End of world war 2
1951 Treaty of Paris
1957 Treaty of Rome
1967 ESCS,EEC and EURATOM merge
1979 First Direct Elections of the EP
1992 The Treaty of Maastricht
2002 The Euro is Adopted by 12 Member Countries
2004 The Big Bang of EU Enlargement
2007 Treaty of Lisbon is Signed
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23. Founding
Members
Belgium
France
Germany
Italy
Luxembourg
Netherlands
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26. Functioning of EU
 Common agricultural policy
 Common fisheries policy
 European monetary union
 Factor mobility-
i. ERM
ii. ECU
iii. European monetary cooperation fund.
 Regional development policy
 Common transport policy.
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 Complying with all the EU’s standards and rules…
 Having the consent of the EU institutions and EU
member states
 Having the consent of their citizens –as expressed
through approval in their national parliament or by
referendum
Conditions for EU
Membership

28. Member criteria – who can join?
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The treaty onthe european union states thet any european
country may apply for membership if it respects the
democratic values of the EU and is committed to
promoting them.
 A functioning market economy and the capacity to cope
with competition and market forces in the EU
 The ability to take on and implement effectively the
obligations of membership, including adherence to the
aims of politcal, economic and monetary union.
What is negotiated?
 Financial arrangements .
 Transitional arrangements.

29. EU Trade Policy
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 The EU manages trade and investments relations
with non-EU countries through the EU’s trade
and investment policy
 Trade policy is an exclusive power of the EU
 Trade policy is set down in Article 207 of the
treaty on the functioning of the European Union

30. Main Trade Policies
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European neighbourhood policy
Trade defence policy
Anti dumping policy
Anti subsidy policy
Safe guard measures

31. How does the EU spends its money
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32. EU in world trade
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 EU is the world biggest trader, accounting for
16.5% of the worlds import and export
 Trade – a global system
 Trading as a world leader
 Building a fair and ope playing field

33. Imports and Exports
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34. EU trade with INDIA
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 India was one of the first countries to develop relations with
the european union. In 2004 India and European union
became ‘strategic partners’
 the EU is India’s largest trading partner with 12.5%of india’s
overall trade b/w 2015 & 2016,china(10.8%), US(9.3%).
 India is EU’s 9th largest trading partner with 2.4%of the EU’s
overall trade.
 Trading in services have also triped b/w 2005 and 2016,
reaching 28.9 billion euros

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EU-INDIA FTA

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“India, European Union may
announce end of free trade
agreement talks as key
differences remain unresolved”
NEWS : Jul 19, 2018

41. BREXIT
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On 23 june 2016 referendum organised by former PM David
Cameron
51.9% of britons chose to leave EU
On 29 march 2017, Tim Barrow(permanent representative of
UK) presents letter announcing the launch of Article to Donald
Task(president of european council)
Now they have 2 Years i.e, till 29march 2019 to prepare for the
effective exit until then the country remains as a member of the
EU
Present PM theresa may is appointed in july 2016 (who is
former home secretary) is leading the discussions

42. Phases of BREXIT
 Divided into two phases
Divorce agreements
Future relationships
 Divorce agreements
Citizens rights
Settlement of UK financial commitments
 Irish border
 EU has made a clear statement that no discussions are held
regarding future Relationship before ‘sufficient Progress’ has
been made on the D.A
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44. The Association of Southeast Asian Nations or
ASEAN was established on 8 August 1967 in
Bangkok by the five original Member Countries,
namely, Indonesia, Malaysia, Philippines,
Singapore, and Thailand.
Brunei Darussalam joined on 8 January
1984,
 Vietnam on 28 July 1995,
 Laos and Myanmar on 23 July 1997,
Cambodia on 30 April 1999.
About ASEAN
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45. I. To accelerate the economic growth, social progress and
cultural development in the region through joint endeavours
in the spirit of equality and partnership in order to
strengthen the foundation for a prosperous and peaceful
community of Southeast Asian nations, and
II. To promote regional peace and stability through abiding
respect for justice and the rule of law in the relationship
among countries in the region and adherence to the
principles of the United Nations Charter.
In 1995, the ASEAN Heads of States and Government re-
affirmed that “Cooperative peace and shared prosperity
shall be the fundamental goals of ASEAN.”
Objectives
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46. The fundamental principles
includes:
1. Political and Security co
operation.
2. Economic co operation
3. Functional co operation
4. Development co operation
These co operation formed
the Road Map for the
ASEAN Community.
Fundamental Principles
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50. This year is the Golden Jubilee of ASEAN
This year is the Silver Jubilee of ASEAN – Indian
Relations(1992)
Both are natural partners that share Geographical,
Historical and Civilization ties.
1992 : India started relations with ASEAN
2010 : Signed Free trade Agreement
2012 : Upgraded relations to a strategic partnership
by focusing on defense and security ties
2015 : Service trade and Investment agreement
Trade 2016-17: 70 billion
India – ASEAN Relations
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52. 1. ASEAN is the most powerful instrument to accomplish the
purpose of the Act East Policy (AEP).
2. Focusing on trade in services with ASEAN will give India an
opportunity to use its competitive strength to become the regions
services export hub.
3. The ASEAN occupies a central place in the “security
architecture” of the Asia-Pacific region and has the “unique
ability” to reflect the larger interests of the world.
4. ASEAN will provide India to connect itself with global value
chains.
5. The northeastern states are both the facilitators as well as the
beneficiaries of Indo-ASEAN relationship and the larger Asia
Pacific regions. A strong, stable and prosperous northeast is of
outmost important to India.
Why ASEAN is important for India?
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53. 7. The Japanese financial services major has dubbed India
and ASEAN-5 (Indonesia, Malaysia, the Philippines,
Thailand and Vietnam) as “Asia’s tiger cubs”, and FDI
inflows to these nations will increase from around $100
billion per year now to around $240 billion by 2025
8. ASEAN will also play an
instrumental role in India as the
Regional Comprehensive
Economic Partnership (RCEP).
RCEP consists of: ASEAN FTA
partners, Australia, People’s
Republic of China, India, Japan,
Republic of Korea, and New
Zealand.
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54. 1. India has announced a line of credit worth $1 billion to
promote projects that support physical and digital connectivity
with ASEAN, and a Project Development Fund with a corpus of
$77 million to develop manufacturing hubs in Cambodia, Laos,
Myanmar and Vietnam.
2. India contributes to three major cooperation funds with ASEAN,
namely the
1. ASEAN-India Fund,
2. ASEAN-India Science and Technology Development
Fund
Recent Initiatives
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55. 3. Besides that discussions on an India-Myanmar-Thailand motor
vehicles agreement are underway. A task force for maritime
connectivity and ASEAN-India working groups on regional air
services and shipping arrangements have also been set up.
4. India had also put forward specific proposals regarding the
installation of a regional high-capacity fibre-optic network,
supplemented by national rural broadband networks and
digital villages in remote areas.
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57. About NAFTA
An agreement : creating a trilateral trade bloc
in North America.
Member: United States, Canada, and Mexico
Establishment: January 1, 1994.
Aim: to foster trading activities among the
nations that are party to it.
How: eliminating most tariff and non-tariff
barriers to free trade and investment
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58. : Source
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59. Two Supplements of NAFTA
• North American Agreement on Environmental
Cooperation
• was a response to environmentalists' concerns that the
United States would lower its standards if the three
countries did not achieve consistent environmental
regulation
NAAEC
• North American Agreement on Labour Cooperation
• endeavors to create a foundation for cooperation among
the three countries for the resolution of labour problems,
as well as to promote greater cooperation among trade
unions and social organizations in order to fight for
improved labor conditions
NAALC
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60. NAFTA Structure
 Oversees NAFTA’s
performance and
evaluation
 Dispute settlement
 Composed of member
counties union trade
representatives
 Serves as
administrator to FTC
 Located in separated
national offices i.e.,
México city, Ottawa,
Washington DC
 Located in Mexico
 To administer labour
and environment
issues inside NAFTA
 Day to day operations
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61. 2014
Data
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62. India NAFTA Trade policy
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http://commerce.gov.in/InnerContent.aspx?Id=68

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64. Pros of NAFTA
 Low tariffs →
reduced import
prices less → risk of
inflation → low
interest rate
 Reduced U.S.
reliance on oil
imports from the
Middle East
and Venezuela and
imports from Canada
and Mexico.
 Lowered the prices
of fresh vegetables,
chocolate, fruit
(except bananas),
1. Low prices of Products
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65. 2. Good for GDP
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(Organization for Economic Co-operation and Development is an
intergovernmental economic organization with 36 member countries, founded in
1961.)

66. Post-NAFTA, it is argued, the heads of state of the U.S.,
Canada and Mexico meet more frequently and put a higher
value on their diplomatic relations.
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3. Enhanced Diplomatic Relations
4. Job Creation
In NAFTA's first four years, manufacturers created 800,000
jobs.
5. Created regional production blocs
NAFTA led to cooperation between countries, creating new,
regional industries, where different parts are made in the
different signatory countries. This in turn, some analysts say,
has helped North America compete with Asian manufacturing
powerhouses.

67. The U.S. auto sector lost roughly 350,000
jobs between 1994 and 2016. Many of those jobs were taken up
by workers in Mexico, where the auto sector added over
400,000 jobs in the same period
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Cons of NAFTA
1. Loss of U.S. manufacturing jobs

68. It allowed U.S. government-
subsidized farm products into
Mexico. Local farmers could not
compete with the
subsidized prices. As a result,
1.3 million farmers were put out
of business, according to the
Economic Policy Institute.
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2. NAFTA hurt the economic prospects of
Mexican small farmers and small business
owners
3. NAFTA suppressed wages for non-college-
educated workers in the U.S
Wages decreased in many other sectors that don’t require
workers to have a college degree. Competition from workers
in Mexico, who earn lower wages than U.S. workers on
average, exerted downward pressure on U.S. wages, too.

69. Small farmers in Mexico were unable to compete with larger
agribusinesses, cross the border illegally to find work. In
1995, there were 2.9 million Mexicans living in the United
States illegally. It increased to 4.5 million in 2000, probably
due to NAFTA.
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4. Illegal Mexican Immigrants to US

70. Unemployed Mexican farmers work in substandard
conditions in the maquiladora program.
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5. Substandard working condition
Established in 1965 by Mexican govt, that allows duty-free importation of raw
materials needed for the assembly or manufacture of finished goods for
subsequent export. The program originated from the need to industrialize
northern Mexico and slowdown migration to the U.S. by creating jobs along the
border.

71. Future of NAFTA
NAFTA created both winners and losers. If you think the trade
agreement resulted in a net loss for the U.S., you probably
oppose it and similar deals. If you think NAFTA produced a
net gain for the economy, you might support NAFTA, even
while criticizing certain pieces of the deal.
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72. THANK YOU!!!
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