Maquiladora

A maquiladora is the Mexican name for manufacturing operations in a free trade zone(FTZ), where factories
import material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing
and then export the assembled, processed and/or manufactured products, sometimes back to the raw
materials' country of origin. Currently about 1.3 million Mexicans are employed in one or more of
approximately 3,000 maquiladoras. The term maquiladora, in the Spanish language, refers to the practice of
millers charging a maquila, or "miller's portion" for processing other people's grain.

World Trade Organization

Before giving some information of this Organization, it’s fine to know that what such as organizations need
for. Countries always cannot reach their economical purposes by regional activities. For this reason the
world’s countries are agree with establishing world interconnected organizations which are can be related
economics and financial operations. According to like these agreements, it’s already has been founded several
international organization such as World Trade Organization (WTO), International Monetary Fund (IMF),
and World Bank (WB) and etcetera.

Here we are going to discuss about the World Trade Organization and its essential missions and purposes as
well as what is the importance of this organization.

The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the
General Agreement on Tariffs and Trade (GATT), which commenced in 1948.[5] The organization deals with
regulation of trade between participating countries; it provides a framework for negotiating and formalizing
trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO
agreements, which are signed by representatives of member governments.

Among the various functions of the WTO, these are regarded by analysts as the most important:

• It oversees the implementation, administration and operation of the covered agreements.

• It provides a forum for negotiations and for settling disputes.

Additionally, it is the WTO's duty to review and propagate the national trade policies, and to ensure the
coherence and transparency of trade policies through surveillance in global economic policy-making. Another
priority of the WTO is the assistance of developing, least-developed and low-income countries in transition to
adjust to WTO rules and disciplines through technical cooperation and training.

The WTO is also a center of economic research and analysis: regular assessments of the global trade picture
in its annual publications and research reports on specific topics are produced by the organization. Finally,
the WTO cooperates closely with the two other components of the Bretton Woods system, the IMF and the
World Bank.

The Directors-General of the WTO have been

 Pascal Lamy, 2005–

 Supachai Panitchpakdi, 2002–2005
 Mike Moore, 1999–2002
 Renato Ruggiero, 1995–1999
  Peter Sutherland, 1995

The Directors-General of the precursor organization, GATT, were:

 Peter Sutherland, 1993–1995

 Arthur Dunkel, 1980–1993
 Olivier Long, 1968–1980
 Eric Wyndham White, 1948–1968

The North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement was signed in 1994 between the US, Canada, and Mexico. It
marks a new era of free trade agreements between developed and developing countries and is closely
monitored by economists. With this paper an attempt is made to summaries the literature about its
achievements and failures. It can be said that NAFTA had a positive effect on Mexico’s growth over the last
15 years but simultaneously Mexico has largely missed the opportunity to establish a framework that ensures
sustainable long run growth. Vital policy changes in order to tackle issues that are not explicitly included in
NAFTA have not been made, causing a high dependency on US and other foreign trade as well as
investment.
Introduction
Studies have revealed that since 1985, and particularly since 1995, Mexico has been among the top 10
countries in terms of increasing its share in the world (non-oil) market (Moreno –Brid et al., 2005), shown in
table 1. Mexico is a country of transition: With one of the largest cities and the richest man in the world,
highly valuable natural resources, and an especially mighty neighbor, Mexico is bound to develop further
than other Latin American countries. The North American Free Trade Agreement (NAFTA) between the
United States, Canada, and Mexico is the first in a non-multilateral setting between a developing and
developed countries (Hornbeck, 2004) and was seen as a major chance for Mexico to benefit from the
advanced economic systems of its neighbors. NAFTA’s effects are monitored closely by economists as this
experiment could be applied to other free trade agreements.

This paper summarizes the theoretical and empirical studies about assessing the success of NAFTA with
respect to economic growth. The findings suggest that NAFTA has had a positive impact on trade growth but
it is feared that the positive economic result may be temporary and even harmful for welfare if trade
liberalization is not accompanied by sustainable social and institutional policy alterations. Generally,
NAFTA’s effects are hard to disentangle from other economically relevant events during the same period.
Literature focuses mainly on US-Mexican rather than Canadian-Mexican trade relations in order to extract a
clearer contrasting result as Mexico does not share a border with Canada.
This review is organized as follows. Chapter 1 explains the reform process that led to the implementation of
NAFTA, summarizing Mexico’s expectations from such an agreement. The following chapter focuses on the
direct positive effects, namely trade and Foreign Direct Investment (FDI) by taking a closer look on the
literature regarding trade creating and diverting effects. Finally, chapter 3 outlines productivity and welfare
side effects in conjunction with employment development under NAFTA.
Asia-Pacific Economic Cooperation

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formally Member
Economies) that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region. It
was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the
advent of regional trade blocs in other parts of the world; to fears that highly industrialized Japan (a member
of G8) would come to dominate economic activity in the Asia-Pacific region; and to establish new markets
for agricultural products and raw materials beyond Europe (where demand had been declining).APEC works
to raise living standards and education levels through sustainable economic growth and to foster a sense of
community and an appreciation of shared interests among Asia-Pacific countries. APEC includes newly
industrialized economies, although the agenda of free trade was a sensitive issue for the developing NIEs at
the time APEC founded, and aims to enable ASEAN economies to explore new export market opportunities
for natural resources such as natural gas, as well as to seek regional economic integration (industrial
integration) by means of foreign direct investment. Members account for approximately 40% of the world's
population, approximately 54% of the world's gross domestic product and about 44% of world trade. For
APEC Economic Trends Analysis in 2012, see. An annual APEC Economic Leaders' Meeting is attended by
the heads of government of all APEC members except Republic of China (represented under the name
Chinese Taipei) by a ministerial-level official. The location of the meeting rotates annually among the
member economies, and until 2011, a famous tradition involved the attending leaders dressing in a national
costume of the host member.

The South East Asia Treaty Organization

(SEATO) was an international organization for collective defense in Southeast Asia created by the Southeast
Asia Collective Defense Treaty, or Manila Pact, signed in September 1954 in Manila, Philippines. The formal
institution of SEATO was established on 19 February 1955 at a meeting of treaty partners in Bangkok,
Thailand. The organization's headquarters were also in Bangkok. Eight members joined the organization.
Primarily created to block further communist gains in Southeast Asia, SEATO is generally considered a
failure because internal conflict and dispute hindered general use of the SEATO military; however, SEATO-
funded cultural and educational programs left long-standing effects in Southeast Asia. SEATO was dissolved
on 30 June 1977 after many members lost interest and withdrew
Mercosur or Mercosul (Spanish: Mercado Común del Sur, Portuguese: Mercado Comum do Sul, Guarani:
Ñemby Ñemuha, English: Southern Common Market) is an economic and political agreement among
Argentina, Brazil, Paraguay, Uruguay, and Venezuela; with Bolivia becoming an accessing member on 7
December 2012 to be ratified by the Member State's legislatures. It was established in 1991 by the Treaty of
Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote
free trade and the fluid movement of goods, people, and currency. The official languages are Guaraní,
Portuguese and Spanish. It has been updated, amended, and changed many times since. It is now a full
customs union. Mercosur and the Andean Community of Nations are customs unions that are components of
a continuing process of South American integration connected to the Union of South American Nations.
Mercosur originated in 1985, when Presidents Raúl Alfonsín of Argentina and José Sarney of Brazil signed
the Argentina-Brazil Integration and Economics Cooperation Program or PICE (Portuguese: Programa de
Integração e Cooperação Econômica Argentina-Brasil, Spanish: Programa de Integración y Cooperación
Económica Argentina-Brasil). The program also proposed the Gaucho as a currency for regional trade. The
founding of the Mercosur Parliament was agreed at the December 2004 presidential summit. It should have
18 representatives from each country by 2010, regardless of population. Full membership for Venezuela
became effective on 31 July 2012, after the suspension of Paraguay on 22 June 2012 for the violation of the
Democratic Clause of Mercosur (see Impeachment of Fernando Lugo). Beforehand, Venezuela had signed a
membership agreement on 17 June 2006 but its accession was blocked by the Senate of Paraguay. Bolivia,
Chile, Colombia, Ecuador, and Peru currently have associate member status.
The Dominican Republic – Central America Free Trade Agreement, commonly called CAFTA-DR, is a
free trade agreement (legally a treaty under international law, but not under US law). Originally, the
agreement encompassed the United States and the Central American countries of Costa Rica, El Salvador,
Guatemala, Honduras, and Nicaragua, and was called CAFTA. In 2004, the Dominican Republic joined the
negotiations, and the agreement was renamed CAFTA-DR. CAFTA-DR together with the North American
Free Trade Agreement (NAFTA) and active bilateral free trade agreements, including the Canada-Costa Rica
Free Trade Agreement, are seen as bloc agreements instead of a Free Trade Area of the Americas (FTAA)
agreement. Panama has completed negotiations with the US for a bilateral free trade agreement (ratification
of which is pending), and Belize is a member of the Caribbean Community (CARICOM). Haiti, also a
CARICOM member, was expected to be given certain additional trade preferences with the US under the
Haitian Hemispheric Opportunity through Partnership Encouragement Act before Congress adjourned during
2006.
The European Union (EU) is an economic and political union of 27 member states that are located primarily
in Europe. The EU operates through a system of supranational independent institutions and
intergovernmental negotiated decisions by the member states. Institutions of the EU include the European
Commission, the Council of the European Union, the European Council, the Court of Justice of the European
Union, the European Central Bank, the Court of Auditors, and the European Parliament. The European
Parliament is elected every five years by EU citizens. The EU's de facto capital is Brussels. The EU traces its
origins from the European Coal and Steel Community (ECSC) and the European Economic Community
(EEC), formed by the Inner Six countries in 1951 and 1958 respectively. In the intervening years the
community and its successors have grown in size by the accession of new member states and in power by the
addition of policy areas to its remit. The Maastricht Treaty established the European Union under its current
name in 1993.[18] The latest amendment to the constitutional basis of the EU, the Treaty of Lisbon, came
into force in 2009. The EU has developed a single market through a standardized system of laws that apply in
all member states. Within the Schengen Area (which includes 22 EU and 4 non-EU states) passport controls
have been abolished. EU policies aim to ensure the free movement of people, goods, services, and capital,
enact legislation in justice and home affairs, and maintain common policies on trade, agriculture,fisheries and
regional development.A monetary union, the eurozone, was established in 1999 and is composed of 17
member states. Through the Common Foreign and Security Policy the EU has developed a role in external
relations and defense. Permanent diplomatic missions have been established around the world. The EU is
represented at the United Nations, the WTO, the G8 and the G-20. With a combined population of over 500
million inhabitants, or 7.3% of the world population, the EU, in 2011, generated a nominal gross domestic
product (GDP) of 17.6 trillion US dollars, representing approximately 20% of the global GDP when
measured in terms of purchasing power parity.