TRADE BLOCS

FREE TRADE
Free Trade is a market model in which trade in goods and services between or within countries flow unhindered by government-imposed restrictions. Free trade is a term that includes:
 Trade of goods without taxes (including tariffs) or other trade

barriers (e.g. quotas on imports or subsidies for producers)
 Trade in services without taxes or other trade barriers

 The absence of trade-distorting policies (such as taxes, subsidies,

regulations or laws) that give some firms, households or factors of production an advantage over others
 Free access to markets and market information

 Inability of firms to distort markets through government-

imposed monopoly or oligopoly power  The free movement of labour between and within countries
 The free movement of capital between and within countries

Trade Bloc
 A trade bloc is a large free trade area formed by one or

more tax, tariff and trade agreements. Typically trade pacts that define such a bloc specify formal adjudication bodies, e.g. NAFTA trade panels. This may include even a more democratic and participative system, as the EU.
 A trade bloc is established through a trade pact (or pacts)

covering different issues of the economic integration.

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Afghanistan became its eighth member.Description  The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in Southern Asia. Bangladesh. Pakistan. Nepal. its sphere of influence is the largest of any regional organization: almost 1. at the Association's 14th summit. Maldives and Bhutan. In April 2007. Sri Lanka. It was established on December 8. the combined population of its member states. In terms of population. 1985 by India.5 billion people. .

MEMBERS Headquarters Kathmandu. Nepal Membership 8 member states.6 observers •Islamic Republic of Afghanistan • Kingdom of Bhutan • Republic of India • Republic of Maldives • State of Nepal • Islamic Republic of Pakistan • People's Republic of Bangladesh • Democratic Socialist Republic of Sri Lanka .

 To promote active collaboration and mutual assistance in the economic. cultural.OBJECTIVES  To promote the welfare of the people of South-Asia and to improve their quality of life. social.  To promote and strengthen collective self-reliance among the countries of South Asia. understanding and appreciation of one another’s problems . technical and scientific fields.  To accelerate economic growth.  To contribute to mutual trust.

the leaders adopted thehich was held in New Delhi. The Bangladeshi proposal was accepted by India. which also included Nepal. Maldives and Bhutan. Bangladesh's president Ziaur Rahman proposed      the creation of a trade bloc consisting of South Asian countries. In August 1983. Technology and Meteorology Health and Population Activities Transport Human Resource Development . Science. The seven South Asian countries. agreed on five areas of cooperation: Agriculture and Rural Development Telecommunications.History  In the late 1970s. Pakistan and Sri Lanka during a meeting held in Colombo in 1981.

at the 12th SAARC Summit at Islamabad. 2006. in Dhaka. . Nine years later.4 billion people. This agreement went into force on July 1. SAARC countries devised the South Asia Free Trade Agreement (SAFTA) which created a framework for the establishment of a free trade area covering 1. SAARC members will bring their duties down to 20 per cent by 2007. SAARC countries signed an agreement to gradually lower tariffs within the region. Under this agreement.Free Trade Agreements  In 1993.

 the Kashmir dispute.  However. During the 12th and 13th SAARC summits. extreme emphasis was laid upon greater cooperation between the SAARC members to fight terrorism. political dialogue is often conducted on the margins of SAARC meetings. between India and Pakistan  the Sri Lankan civil war. SAARC has also refrained itself from interfering in the internal matters of its member states. .Political Issues  SAARC has intentionally laid more stress on "core issues" mentioned before rather than more decisive political issues like.

Ineffectiveness  SAARC's inability to play a crucial role in integrating South Asia is often credited to the political and military rivalry between India and Pakistan. It is due to these economic. and territorial disputes that South Asian nations have not been able to harness the benefits of a unified economy. . political.

to infrastructure. that would cover all SAARC programs ranging from social. South Korea and United States of America. The nations also agreed to organize development funds under a single financial institution with a permanent secretariat. .Dhaka 2005  The summit accorded observer status to People's Republic of China. to economic ones. Japan.

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and Thailand – met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration.DESCRIPTION  The ASEAN bloc was established on August 8. commonly known as the Bangkok Declaration. . 1967. when foreign ministers of five countries – Indonesia.  It is an Association for Regional Cooperation among the Countries of Southeast Asia. Malaysia. the Philippines. Singapore.

MEMBERS ORIGINAL MEMBERS (1967) Indonesia Malaysia Phillipines Singapore Thailand Brunei Darussalam (January 1984) Vietnam (July 1995) Myanmar (July 1997 ) Cambodia (April 1999 ) Lao PDR (July 1997 ) .

org .4.500 million  Total Area .US$ 700 billion (approx)  Total Trade .US$ 850 billion (approx) Source : www.5 million square kilometers  Combined Gross Domestic Product .FACTS AND FIGURES  Population .aseansec.

OBJECTIVES  To accelerate economic growth. social progress and cultural development in the region  Preferential trading including reduced tariffs and non- tariff barriers  Guaranteed member access to the markets throughout the region  Harmonized Investment Incentives  To promote regional peace and stability through abiding respect for justice and the rule of law .

ASEAN Free Trade Area  Agreement by the member nations of ASEAN concerning local manufacturing in all ASEAN countries  Signed on January 28. 1992 in Singapore  Elimination of tariff and non-tariff barriers among member countries .

ASEAN Plus Three  A forum for ASEAN plus China. .  Meetings held during each ASEAN Summit  May lead to a common market. single currency and even a new Bloc comprising of Northeast and Southeast Asia. Japan and South Korea primarily to deal with the trade and monetary issues facing Asia.

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. Jamaica.  Currently CARICOM has 15 full members.ESTABLISHMENT AND MEMBERS  CARICOM was established by the Treaty of Chaguaramas on 1st August 1973 and the four signatories were Barbados. Guyana and Trinidad and Tobago. five associate members and seven observers.

The Legislation and The Judiciary The goal of the Secretariat is “To provide dynamic leadership and service. internationally competitive and sustainable Community. toward the attainment of a viable. in partnership with Community institutions and Groups. with improved quality of life for all." .STRUCTURE CARICOM has organised itself into a state like Government structure made up of the following branches: The Executive.

Progressive insertion of the region into the global trading and economic system by strengthening trading links with nontraditional partners . Widening the membership and thereby expanding the economic mass of the Caribbean Community. 3. Deepening economic integration by advancing beyond a common market towards a Single Market and Economy. 2.CARICOM Single Market and Economy (CSME) The CSME is an integrated development strategy (July 1989) has three key Features: 1.

• Trade in goods: All goods which meet the CARICOM rules of origin are traded throughout without restrictions. • Trade in Services and The Right of Establishment: The main objective is to facilitate trade and investment in the services sectors of CSME Member States through the establishment of economic enterprises and CARICOM service providers will be able to offer their services throughout the region . • Caribbean Regional Organization on Standards and Quality (CROSQ): Responsible for establishing regional standards in the manufacture and trade of goods which all Member States must adhere to.

Customs. provides for the free movement of certain categories of skilled labour. (by applying for Skills Certificates) Harmonization of Legislation: Harmonized regimes for Anti-dumping and countervailing measures. . Banking and securities. Free Movement of Capital and Single Currency: The free movement of Capital involves the elimination of the various restrictions such as foreign exchange controls and allowing for the convertibility of currencies or a single currency and capital market integration via a regional stock exchange. Consumer protection. Intellectual property rights etc.Work Permits and the Free Movement of People: The Caribbean Community (CARICOM) Free Movement of Persons Act.

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COUNCIL MEMBERS  The United Arab Emirates  The State of Bahrain  The Kingdom of Saudi Arabia  The Sultanate of Oman  The State of Qatar  The State of Kuwait .

agriculture.  Fostering scientific and technical progress in industry. water and animal resources. customs. . tourism.OBJECTIVES  The basic objectives of the Cooperation Council are:  To effect coordination. trade. finance. mining. integration and inter-connection between Member States in all fields. legislation & administration.  Formulating similar regulations in various fields such as economy.  Strengthening ties between their peoples.

The Ministerial Council  3. .Organization of the Cooperation Council The Cooperation Council shall have the following main organizations:  1. The Secretariat General. The Supreme Council  2.

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. Kiribati. Tonga. Tuvalu. Niue.  Trade Agreement Type  Plurilateral Free Trade Agreement  Participating Nations  Australia.PARTA Pacific Regional Trade Association. Cook Islands.7 billion (of which Australia and New Zealand account for US $640 billion). Fiji. Solomon Islands. Western Samoa  Notes  A PARTA would represent a market of almost 29 million and a total GDP of US $657. Papua New Guinea. New Zealand.

it was agreed that a study be undertaken on options for the creation of a FTA among FICs. negotiations for a Pacific Regional Trade Agreement (PARTA) began.  The Forum members will have an eight year timetable to eliminate tariff barriers. the Forum Leaders directed the Forum Trade Ministers to consider a draft Framework Agreement for the creation of a FTA.Negotiations  At the 1997 meeting of the Forum Economic Ministers Meeting in Cairns. Fiji. In 1998. while the nine Forum members who are Smaller Island States will have ten years to do so. A number of studies have been completed and at the South Pacific Forum (28-30 August) in Nadji. .

.  In March 2001.Contd. and therefore. obstacle to a RTA is how to include Australia and New Zealand in a reciprocal Free Trade Agreement without disadvantaging the smaller Pacific Island economies..  By 2012. Perhaps the most contentious issue amongst Forum Island Countries. it is expected that the free trade area across the Forum Island Countries will be complete.. .

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org/7069.REFERENCES  About SAARC.Forumsec. Retreived Novemeber 25. “ Can Protectionism be eliminated in the 21st century?”.2007 from http://www.htm About ASEAN Summits. Retrieved November 26.2007 from http://en. Retreived May 17.org/wiki/Carribean Community About GCC. W. 1999 from www.org.2007 http://en.wikipedia. Retrieved November 20.org/wiki/Association_of_Southeast_Asian_nations# ASEAN_Summit Levi.saarc      sec.aseansec.wikipdia.org/ .org/wiki/southasian Association For Regional Cooperation About ASEAN.php About SAARC Summits.2007 from http://en.org/main. Noel. Retrieved November 20.2007 from http://www.wikipedia. Retrieved November 25.2007 from http://www.fj/news About CARICOM. Retrieved November 24.gcc-sg.

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