1. Trade Blocks 1
TRADE BLOCKS &
BUSINESS CENTRES

2. Economic Integration
2
 Countries create business opportunities for
themselves by integrating their economies
 To avoid unnecessary competition among
themselves & also from other countries
 Covers different kinds of arrangements
between or among countries
Trade Blocks

3. Different kinds of Economic
3
Integration
 Free Trade Area:
 Group of countries
 Agree to abolish all trade restrictions &
barriers
 Or charge low rates of tariffs
 Countries impose w.r.t trade with countries
other than members of the group
Trade Blocks

4. Different kinds of Economic
4
Integration
 Custom Unions:
 2 basic features:
 Member countries abolish all restrictions &
barriers on trade among themselves or charge
low rates of tariffs
 They adopt uniform commercial policy of
barriers & restrictions jointly w.r.t. trade with
non-member countries
Trade Blocks

5. Different kinds of Economic
5
Integration
 Common Market:
 3 basic characteristics:
 Allow free movement of HR & capital among
the member countries
 Thus superior than customs union
Trade Blocks

6. Different kinds of Economic
6
Integration
 Economic Union:
 4 basic characteristics:
 Achieve uniformity in monetary policy & fiscal
policy among the member countries
 Economic union>common mkt>customs
union>free trade area
Trade Blocks

7. Advantages of integration..
7
Trade Blocks

8. European Union
8
 Origin: European Coal & Steel Community
(ECSC)
 Formed by West Germany, France, Italy, Belgium,
Netherlands & Lexumbourg – 1952
 Aim: to eliminate import duties on coal, iron ore,
steel & scrap
 Facilty then extended by Treaty of Rome in 1957
 & gave birth to European Economic Community
Trade Blocks

9. European Union
9
 Requirements for joining:
 Country – to be European
 Democratic country
Trade Blocks

10. Objectives..
10
Trade Blocks

11. Activities..
11
Trade Blocks

12. Organization of EU
12
 European Council – main administrative body
of EU
 Each member country – represented by –
minister of this council
 Each member holds presidency – 6 months
 Committee of permanent representatives –
Secretariat
 Committee also called “Corper”
 Makes all imp decisions
 Link between EU & member govt…
Trade Blocks

13. NAFTA
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 North American Free Trade Agreement – 1st
January 1994
 USA, Canada & Mexico
 Objectives..
 Measures..

Trade Blocks

14. The Association of South-East
14
Asian Nations ( ASEAN)
 6 countries
 Singapore
 Brunei
 Malaysia
 Philippines
 Thailand
 Indonesia
Trade Blocks

15. Asean Free Trade Area (AFTA)
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 Objectives:
 Encourage inflow of foreign investment into
this region
 Establish free trade area in member countries
 Reduce tariff
Trade Blocks

16. AFTA & India..
16
Trade Blocks

17. European Free Trade Association
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(EFTA)
 1959
 Austria
 Norway
 Portugal
 Sweden
 Switzerland
 Associate member countries are:
 Finland
 Iceland
 Great Britain
 Denmark
Trade Blocks

18. European Free Trade Association
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(EFTA)
 Objectives:
 To eliminate almost all tariffs among member
countries
 To abolish trade restrictions regarding imports &
exports among member countries
 To enhance economic development,
employement, incomes & living stds of people of
member countries
 Enable free trade in Western Blocks
Trade
Europe

19. Latin American Integration
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Association (LAIA)
 Latin American Free Trade Association (LAFTA)
 Countries:
 Argentina
 Brazil
 Chile
 Mexico
 Paraguay
 Peru
 Uruguay
 Colombio
 Venenzula
 Bolivia
Trade Blocks

20. Latin American Integration
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Association (LAIA)
 Objectives:
 To eliminate restrictions on trade among the
member countries
 To reduce the customs & tariffs & eliminate
them gradually
Trade Blocks

21. Organization Structure
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Council of Ministers
Foreign Ministers of Member Countries
Conference of Contracting Parties
Makes Decisions on Joint Issues
Secretariat
Performs Technical & Administrative Functions
Trade Blocks

22. Operations
22
 Members prepare a list of goods on which they
consider duty reductions
 They negotiate once in 3 years for complete
exemption on tariffs &
 Decide the list of products eligible for complete
exemption of tariffs…
Trade Blocks

23. South Asian Association for
23
Regional CO-operation (SAARC)
 December 6, 1985
 India
 Bangladesh
 Bhutan
 Pakistan
 Maldives
 Nepal
 Sri Lanka
Trade Blocks

24. Objectives..
24
Trade Blocks

25. Organization Structure
25 The Council
Highest Policy-Making Body
Council of Ministers
Represented by foreign Ministers of Member Govts
Formulates Policies, reviews the Functioning
Standing Committee
Represented by Foreign Secretaries of member govts
Monitors & Co-ordinates the Programmes
Trade Blocks

26. Organization Structure
26
Programming Committee
Represented by Senior Officials of the Member govt
Scrutinizes Budget & Annual Schedule
Technical Committees
Comprises representatives of all countries
Formulates, Implements & Monitors Projects
Trade Blocks

27. The Economic & Social
Commission for Asia & The Pacific
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(ESCAP)
 48 member countries & 10 associate countries
 Sub-divided into:
 Pacific Island countries
 The developing ESCAP countries
 ASEAN
 Developed ESCAP countries
 China & newly industrializing countries
 South Asian Countries
Trade Blocks

28. Asia-Pacific Economic Co-
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Operation (APEC)
 Forum for facilitation economic growth, co-
operatio, trade & investment in Asia-Paacific
region
 Established in 1989 – to enhance economic
growth & prosperity for the region & to
strengthen the Asia-Pacific Community
 Worked to reduce tariffs & other trade barriers
across Asia-Pacific region Blocks
Trade

29. Asia-Pacific Economic Co-
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Operation (APEC)
 Free & Open trade & investment in Aisa-
Pacific
 Free Trade:
 helps economies to grow
 Create jobs
 Provides greater opportunities for international
trade
 Lower the costs of production & reduces prices
of goods & services
Trade Blocks

30. MERCOSUR
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 Treaty of Asuncion signed by Argentina,
Paraguay – march 26, 1991 created
MERCOSUR
 Chile & Bolivia – associate member – 1996
 South America’s largest trade block
Trade Blocks

31. ANDEAN
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 Sub regional organization endowed with an
international legal status
 Made of
Bolivia, Colombia, Ecuador, Peru, Venezuela
Trade Blocks