Trade zones: ‘© Some examples for trade zones are as follows : European union (EU) © Association of South East Asian Nations (ASEAN) © Group of § (G8) European Union (EU) This consists of 26 European countries. The otigin of this was the European Economic ‘Conumunity established on the treaty of Rome signed by 6 European countries in 1957, ‘While its members maintain common trade policy, agriculture and fisheries policy, zonal development policy it also has introduced a common currency mit called Euro in 1999, EU member countries © Austria © Belgium ¢ Bulgaria ¢ Finlmd = 6 Cyprus © Czech republic © Denmark ¢ Estonia © France © [ealand * Traly © Littania 6 Latvia ¢ Germamy Luxembourg * Malta © Netherland ¢ Poland * Greece © Portugal © Romania © Slovakia ¢ Slovenia ¢ Hungary «Spain. © Sweden Association of South East Asian Nations (ASEAN) This is a society of 10 South East Asian countries which was established for Political and Economic co operation. ASEAN was proceeded by an organisation formed in 1961 called the Association of South East Asia (ASA), a group of countries consisting of Philippines, Malaysia and Thailand, These three countries joined with Indonesia and Singapore and ASEAN was established in 1967, ‘The ASEAN member countries are © Philippines © Malaysia © Thailand © Indonesia © Singapore © Brunei © Viewam © Laos © Myanmar © Cambodia Group of 8 (G8) ‘This san Intemational organisation founded by 8 main stream countries in the world. The oil crisis in 1973 and the global economic recession were the reasons forthe originof this organisation in 1974, Amalgamated with United States ofA metica (USA), West Germany, ‘Tapan and France unofficially with tree other countries was the origin ofthis organisation Once Russia joined the group in 1997 this was officially named as the Group of 8 (G8). G8member counties are: ‘© United states of America © United Kingdom France ¢ West Germany © Taly © Japan, © Canada © Russia+ Trade agreements An agreement created between two or more countries for the trade and exchange of goods duringa specific period is known asa trade agreement. An agreement between fwo countries isknown as Bi lateral agreement whereas an agreement between three ormore countries is called asa mubilaeral azreement, ‘Some examples of trade agreements are given below © North American Free Trade Agreement (NAFTA) South Asian Free Trade Agreement (SAFTA) Asia Pacific Trade Agreement (APTA) North American Free Trade Agreement (NAFTA) Thisis an agreement in which of the USA, Canada and Mexico partnered and which was commenced on the 1* of January 1994. Conditions forthe abolition of trade barriers among these three countries removal of tariffs, ‘Exchange of labour are incinded in this agreement. A specific characteristics ofthis agreement stat it will be Hite to the goods ‘manufactured within these countries only. ‘When the goods mamufactared outside these three countries are exchanged among them and tariff are applicable, Goods will be fre of tariff only when the terms such as Made in USA, Made in Canada, and Made in Mexico ate stated. South Asian Free Trade Agreement (SAFTA) The agreement whichwas made with te intention of spreading trade co-operation within the SAARC zone, creatinga fee zone within South Asia and making economic policies of the SAARC zone counties online with elobalisation, This agreement was signed at the 12°SAARC summit held in Islamabad in 2004. ‘With the different states entering into this agreement. they madea collective agreement to ‘benefit trough the removal of tarifTs on al mports among the countries, ports and transport facilities, provision of services with regard to trading etc. Asia ~ Pacific Trade Agreement (APTA) This agreement commenced as the Bangkok agreement in 1975 and was named as the Asia — Pacific Trade Agreement (APTA) on the 2# November 2005. The member countries of this agreement are Bangladesh, China, India, Laos, Mongolia, Sri Lanka and South Korea This is the oldest and preferred trade agreement inthe Asia Pacific region ‘The objective ofthis agreement sto expedite the economic development of the member coumties through minimising tariff and bantiers as far as possible to import goods and services rather than importing goods and services from other countries.# International organisatioi ‘Organisations that have been established to minimize barriers of tariff exchange control regulations, customs niles and regulations that impose restrictions on foreign trade are known as ntemational organisations. Some examples for such organisations are given below: © World Trade Organisation (WTO) © South Asian Association for Regional Co-operation (SAARC) © Asian Development Bank (ADB) © Intemational Bank of Reconstruction and development (IBRD ) > Intemational Monetary Fund (IMF) ‘World Trade Organisation (WTO) This is an international organisation established to ease and monitor the international trade, ‘Having commenced on the 1* January 1995, this organisation operates globally in ‘connection with the trade rules and regulations among nations. The head office of the WTO is located at Geneva in Switzerland. The main purpose of the WTO is to facilitate discussions among member states for trade promotion, to look down on trade barriers, and to raise the welfare of the people in the member counties. South Asian Association for Reginal Co-operation (SAARC) This is an economic and political association of eight South Asian countries. twas established ‘on December 84 1985, ‘The co-operative activities within SAARC is performed across five areas. ° — Agriculnure and rural development. » Tele commmnication, Science technology and climatology. © Health and population affairs © Transport Human resource development. SAARC member countries © SriLanka © India © Pakistan © Bangladesh © Nepal © Maldives © Binuton © Afghanistan Asian Development Bank (ADB) ‘The Asian development Bank commenced its operations on 19* December 1966. The Head office is situated at Manila in Philippines. Out of 67 member countries at present, 48 are from. the Asian region while the rest 19 from the pacific region. Its main objective isto promote ‘economic and social development of the member countries. This bank takes steps to provide Toans and grants o its member countries for implementing poverty eliminating projects International Bank for Reconstruction and Development (IBRD/ World Bank) The IBRD was commenced on the 27° of December 1945 with the Bretton Woods agreement to re-build the European economy that was destroyed in the 2" world war.‘This bank is known as the bank which provides loan facilities forthe development projects implemented in developing countries with the purpose of eliminating poverty. ‘The establishment of sustainable development and elimination of poverty ae the main objectives of the World Bank, ‘Ithas been established with the objectives of improving global finance co-operation, ascertaining financial stability, facititating for the international trade, widening employment opportunities. providing for sustainable economic development and reducing poverty, International Monetary Fund (IMF) ‘The IMF can be introduced as the intemational organisation that provides financial and technical assistance as well as observes the balance of payment and exchange ratios. Its head office is situated at Washington in USA. thas been established with the objectives of improving global finance co-operation, ascertaining financial stability facilitating forthe intemational trade, widening employment opportunities, sustainable economic development and reducing poverty.