Regional Trading Blocs - 2360 Words

INTRODUCTION : A regional trading bloc is a group of countries within a geographical region that protect themselves from imports from non-members. Trading blocs are a form of economic integration, and increasingly shape the pattern of world trade. In general terms, regional trade blocks are associations of nations at a governmental level to promote trade within the block and defend its members against global competition. Defense against global competition is obtained through established tariffs on goods produced by member states, import quotas, government subsidies, onerous bureaucratic import processes, and technical and other non-tariff barriers. Since trade is not an isolated activity, member states within regional blocks†¦show more content†¦This can lead to trade disputes, such as those between the EU and NAFTA, including the recent Boeing (US)/Airbus (EU) dispute. The EU and US have a long history of trade disputes, including the dispute over US steel tariffs, which were declared illegal by the WTO in 2005. In addition, there are the so-called beef wars with the US applying  £60m tariffs on EU beef in response to the EU’s ban on US beef treated with hormones; and complaints to the WTO of each other’s generous agricultural support. During the 1970s many former UK colonies formed their own trading blocs in reaction to the UK joining the European common market. EXAMPLES OF REGIONAL TRADE BLOCS: In terms of their size and trade value, there are three major trade blocks and a larger number of blocks of regional importance. The three major regional trade blocks are, as follows: NAFTA: NAFTA is short for the North American Free Trade Agreement. NAFTA covers Canada, the U.S. and Mexico making it the world’s largest free trade area. NAFTA was launched 20 years ago to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace. As of January 1, 2008, all tariffs between the three countries were eliminated. Between 1993-2009, trade tripled from $297 billion to $1.6 trillion. NAFTA was signed by President George H.W. Bush, Mexican President Salinas, and Canadian Prime Minister Brian Mulroney inShow MoreRelatedImpacts Of The Regional Trading Blocs1192 Words   |  5 PagesWorld War II, the creation of regional economic blocs has become an essential political remedy that gathers countries and nations rather than divide. Essentially, the creation of the economic regional blocs aims to minimize the obstacles between nations that share the same geographic border and to facilitate the circulations of goods and services. In fact, the regional trading blocs differ in terms of political structure and economic objectives, but the rapidity of trading goods and services within theRead MoreThe Worlds Main Regional Trading Blocs1755 Words   |  8 Pages3. The World’s main regional trading blocs Middle East and North Africa (MENA): is a regional economic integration bloc that includes the Middle East and North Africa. The population of the MENA region is about 381 million people, about 6% of the total world population. Map 1: Middle East and North Africa geographical map North American Free Trade Agreement (NAFTA): is a regional economic integration bloc that includes the U.S., Canada, and Mexico. NAFTA represents 450 million people producingRead MoreAdvantages And Disadvantages Of Regional Trading Blocs2228 Words   |  9 PagesBoth advantages and disadvantages can be found in regional trading blocs. I am going to discuss about it, taking into consideration as it has been suggested the context of the Europian Union, since it is an interesting example of regional trading block. Governments impose tariffs with the aim of protecting their economies and to control the prices. They intervene in trades for two main reasons: the first one is economic whereas the second one is political. As far as the economic explanation isRead MoreAdvantages And Disadvantages Of Regional Trading Blocs Such As The Eu1446 Words   |  6 Pagesgeneral the advantages and disadvantages of regional trading blocs such as the EU. Discuss the benefits that UB may now enjoy after acquiring a stake in the Nigerian firm, AP. Regional trading blocs are when a group of countries that lie within a similar geographic area protect themselves, through a form of economic integration, from imports from non-members. To explain briefly, there are several stages of economic integration. A political union represents the potentially most advanced typeRead MoreRegional Trading Blocs : The Eu And Asean ( Association Of Southeast Asian Nations )2511 Words   |  11 Pagesthis report is to compare and contrast two regional trading blocs: the EU and ASEAN (Association of Southeast Asian Nations) and also to discuss and analyse the implications for the marketing managers that operate in these blocs. Schott (1991) defines a trading block as a type of intergovernmental agreement that aims to reduce regional barriers to trade for the participating states. This report will look at the similarities and differences between the two blocs in the first part, with the second partRead MoreRegional Integration Is An Agreement Betwe en Countries With Other Countries Essay835 Words   |  4 PagesRegional Integration Regional integration is an agreement between countries enhancing cooperation to achieve political and economic goals. â€Å"In order to achieve integration, governments must be willing to enter agreements and create policy in favor of investment and trade with other countries. Regional integration may occur between nations because of common cultural backgrounds, geography, or historical links† (Background, 1995). Regional integration has also led to the existence of institutionsRead MoreAdvantages And Disadvantages Of The European Union1123 Words   |  5 Pagesand disadvantages of regional †¨ trading blocs such as the EU. Discuss the benefits that UB may now enjoy after acquiring a stake in the Nigerian firm, AP. United Biscuits (UB) manufactures its products in factories throughout England, Ireland, Belgium, France, and the Netherlands. The advantages and disadvantages of regional trading blocs such as the European Union (EU), since its creation with the Treaties of Rome in 1957, the European Union has shown great progress in regional integration, mainlyRead MoreU.s. Bilateral Trade Agreements1584 Words   |  7 PagesAs discussed before, the recent decades has seen proliferation of Preferential Trade Agreements (PTAs), of which bilateral and regional trade agreements are a part. Of the 162 member countries, Mongolia was the only WTO member without PFA by 2005 (WTO, 2016). There are several motivations behind bilateral trade negotiations, originating from the state of the economic and political situation of participating nations (McMahon, 2006). In the absence of broader trade agreements, bilateral trade agreementsRead MoreThe European Union ( Eu ) And North American Free Trade Agreement1086 Words   |  5 PagesAmerican Free Trade Agreement (NAFTA) both consists of twenty-seven countries that makes it the largest trading bloc in the world. Based on the 2008 figure, the value of the exports of goods/services from European Union to NAFTA was 639. One billion Canadian dollars while the import of goods/services to the European Union from the NAFTA was amounted to 513.9 billion Canadian dollars. Two trade blocs are also highly interdependent by the means of FDI. In 2007, the value of inflows of FDI NAFTA from EURead MorePreferential Trade Agreements Essay1454 Words   |  6 PagesInternational Trading Blocs Preferential Trade Agreements (PTAs) Preferential Trade Agreements or trading blocs are a form of economic integration in which countries agree to create a free trade area or some form of common market to facilitate trade. This agreement can be in different forms and depths, for instance there is Free Trade Area is a trading bloc that has no tariff, then Custom Union is where there is common level of trade barriers, in Economic unions such as European Union, the member