REGIONAL TRADE BLOCKS
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REGIONAL TRADE BLOCKS
Companies need to adjust organizational structure and operating strategy to take advantage of regional trade groups. These are,
01. EU (European Union):
The EU is become a most powerful trade block in the world. It has members of Austria, Belgium, Denmark, Finland, Germany, Greece, Ireland, Italy, Lather lands, Porchukcal, Spain, Sweden, and U.K.
02. NAFTA (North American Free Trade Agreement):
99% of the goods traded between Mexico, Canada, and the U.S. It is a large trading block but includes countries of different sizes and wealth.
Additional provisions are:
– Workers right
– Dispute resolution mechanism
03. LAFTA (Latin American Free Trade Association):
LAFTA and the Caribbean Free Trade Association (CARIFTA) changed their names to the Latin American Integration Association and Caribbean community and common market (CARICOM). It has U.S as their major export market.
04. ASEAN (Association of South East Asian Nations):
It is organized in 1967and it has Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Jan 1, 1993 ASEAN officially formed the ASEAN Free Trade Area (AFTA).
Its goal is to cut tariffs on all intra-zonal trade to a maximum of 5%.
05. APEC (Asia Pacific Economic Co-operation):
It was formed in NOV 1989 to promote multilateral economic co-operation in trade and investment in the Pacific Rim. It is composed of 21 countries that border the Pacific Rim – both Asia as well as the America.
It’s creating new opportunities for American business and creating new employment for American workers.
06. EFTA (European Free Trade Association):
It was established in Jan 1960, EFTA currently joins 4 countries – Norway, Iceland, Liechtenstein and Switzerland. Members are Austria, Finland, and Sweden joined on Jan 1, 1996.
07. SAARC (The South Asian Association for Regional Co-operation):
The SAARC involving seven countries, namely India, Bangladesh, Pakistan, Nepal, Bhutan, Sri Lanka, and Maldives, was formally launched in Dec 1985.
Objectives are:
- To promote welfare of the people of South Asia.
- To accelerate economic growth.
- To strengthen co-operation with other developing countries.
08. SAPTA (The SAARC Preferential Trading Arrangement):
The SAPTA has the members of India, Pakistan, Bangladesh, Nepal, Sri Lanka, Bhutan and Maldives.
- Overall reciprocity and mutually of advantages.
- Step by step negotiations and extension of preferential trade arrangement in stages.
- Inclusion of all types of products – Raw, Semi-processed, Processed.
- Special and favorable treatment to Least Development Countries (LDCs).
09. Indo – Lanka Free Trade Agreement:
According to the Bilateral Free Trade Area Agreement signed by India and Sri Lanka on 28th Dec 1998, a large number of items will be eligible for duty free trade.
It has offered to permit as much as 1000 items on Zero duty from Sri Lanka and Sri Lanka will allow duty free imports of 900 items from India.
Its Objectives are.
- Expansion of trade the harmonious development of the economic relations between India and Sri Lanka.
- Removal of barriers to trade.
- Expansion of world trade.
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Source by A.V.HARIHARAN
