TRADE

ASSOCIATIONS/TREATIE
S AND EMERGING
GROUP OF NATIONS
 CONTENTS
G Groups
EAGLEs
CIVETS
Next 11
Trade agreements:
NAFTA
SAFTA
 INTRODUCTION TO G
GROUPS
In the uncertain years following the
1971 collapse of the Bretton Woods
system of fixed international
exchange rates tied to the price of
gold and the 1973 oil crisis, the
need for better co-ordination of
economic and financial policy at
the highest level became evident.
 G GROUP
On March 25, 1973, the finance
ministers of Britain, France, Germany
and the United States & Japan met and
formed a group subsequently known
as the Group of Five, which met
periodically for more than a decade
In 1976, the group was expanded to G
Seven, with the addition of Canada
and inclusion of Italy
 G GROUPS
Russia began participating in some of
the sessions with G7 leaders during
their summits and,
At the invitation of the G7, Russia
formally joined the group in 1997
The G7 thus became the G8
 G GROUPS
The initial composition of the group clearly
represented the dominant economic powers of
the day, and these countries shared the
additional characteristics of being democratic,
largely Atlantic-oriented and militarily allied
to the United States
This attempt to secure good behaviour
through co-option has been only a partial
success as Russia remained different from the
original seven both politically and
economically
 G GROUPS
Over the years, while the agenda has
remained focused on economic and financial
issues, increasingly, leaders have taken on a
broader range of topics, from security matters
to development to the environment
By the late 1990s, however, a series of
financial crises centred largely in Latin
America and Asia had convinced the G7
finance ministers that key emerging
economies were insufficiently included in
global economic management efforts
 G20
After four initial meetings in 1998 and 1999
involving larger groups of countries,
In December 1999, a set Grouping of 20 was
established, consisting of the G8 along with key
regional powers plus the European Union
The members include 19 individual countries
Argentina,Australia,Brazil,Canada,China,France
,Germany,India,Indonesia,Italy,Japan,
South Korea,Mexico,Russia,Saudi Arabia,
South Africa,Turkey,United Kingdomand
United Statesalong with the European Union(EU)
 SUMMITS

To be conducted every Year

5 Groups including 4 countries each
To be hosted by one member country
belonging to a certain group
2016 in China
 Emerging And Growth Leading
Economies
Are a grouping of keyemerging markets developed
byBBVAResearch.
The EAGLE economies are expected to lead global
growth in the next 10 years, and to provide
important opportunities for investors
This is a dynamic concept where country members
can change over time according to their forecasted
performance relative to developed economies
The membership of the EAGLEs is subjected to a
yearly revision and can change according to their
forecasted economic performances relative to
developed economies.
 CIVETS
TheCIVETSare six favoured
emerging marketscountries
Colombia,Indonesia,Vietnam,Egypt
,TurkeyandSouth Africa
These countries are favoured for
several reasons
Such as "a diverse and dynamic
economy" and "a young, growing
population"
 CIVETS
The economies that are part of this group are
considered to be very promising because they have
reasonably sophisticated financial systems,
controlledinflation, and soaring young populations
As well as being seen as attractive markets, the role
of CIVETS countries in global governance is also
discussed, especially at theG20, of whichIndonesia
,South AfricaandTurkeyare members.
They are already perceived as "development
providers investing in peer-to-peer learning and
horizontal partnerships and are bound to become
strategic players at the G20, UN and IFI levels
 NEXT 11
TheNext Eleven(known also by the
numeronymN-11) are the eleven countries
Bangladesh,Egypt,Indonesia,Iran,Mexico,
Nigeria,Pakistan, thePhilippines,Turkey,
South KoreaandVietnam
Identified byGoldman Sachsinvestment bank
and economist Jim O'Neillin aresearch paper
as having a high potential of becoming, along
with theBRICScountries, among the world's
largest economies in the 21st century
 NEXT 11
The bank chose thesestates, all with promising
outlooks for investment and future growth, on
December 12, 2005
At the end of 2011, the four most prominent
countries in the Next Eleven, Mexico, Indonesia,
South Korea and Turkey, made up 73 percent of
all Next Eleven GDP
The criteria that Goldman Sachs used were
macroeconomic stability,political maturity,
opennessof trade and investment policies, and
the quality of education
 TRADE AGREEMENTS
Treaty between two or more countries to establish a
free trade area where commerce in goods and
services can be conducted across their common
borders, without tariffs or hindrances but (in contrast
to a common market)
Capital or labour may not move freely
Member countries usually impose a uniform tariff
(called common external tariff) on trade with non-
member countries
TYPES
Multilateral
Bilateral
North American Free Trade Agreement

An agreement signed byCanada,Mexico, and

theUnited States, creating a trilateral
trade blocinNorth America
The agreement came into force on January 1,
1994.[3]It superseded the
CanadaUnited States Free Trade Agreement
between the U.S. and Canada
NAFTA has two supplements: the
North American Agreement on Environmental C
ooperation
(NAAEC) and the North American Agreement
on Labour Cooperation
 South Asian Free Trade Area

TheSouth Asian Free Trade Area(SAFTA) is an

agreement reached on 6 January 2004 at the
12th SAARC summitinIslamabad,Pakistan
It created afree trade areafor people inAfghanistan
,Bangladesh,Bhutan,India,Maldives, Nepal,
PakistanandSri Lanka
The seven foreign ministers of the region signed a
framework agreement on SAFTA to reduce
customs dutiesof all tradedgoodsto zero by the
year 2016
The SAFTA agreement came into force on 1 January
2006 and is operational following the ratification of
the agreement by the seven governments