NAFTA
January 1, 1989 the U.S.-Canada Free Trade Agreement
went into effect. This agreement phased
out tariffs, liberalized investment laws, and granted “national treatment” to
companies on both sides of the border. The North American Free Trade Agreement
became effective on January 1, 1994.
This created the world’s largest trading bloc. Under the agreement,
tariffs are eliminated over a period of 15 years, non-tariff barriers are
substantially reduce, and capital is allowed to freely flow through the region.
In 2001, the US and 34 other countries began negotiations of the Free Trade
Area of the Americas (FTAA) which would include all of the Western Hemisphere.
NAFTA came into effect
on January 1st 1994 with the objective of eliminating most tariffs and other
restrictions on free trade and investment between the United States, Canada and
Mexico by the year 2003; remaining tariffs will be removed by 2008.
European Union
The European Union
(EU) is a political and economic community of twenty-seven member states ,
located primarily in Europe . It was established in 1993 by the Treaty of
Maastricht , adding new areas of policy to the existing European Community .
With almost 500 million citizens, the EU combined generates an estimated
30% share of the world's nominal gross domestic product ( US$ 16.6 trillion) in
2007.
The Single Market
Based on Free movement of goods ,capital ,persons ,service. France West Germany
Italy Belgium Netherlands Luxembourg are the founding member of European Union
.Its main objectives was sustainable development based on balanced economic
growth and social justice which was able to achieve. EU was able to eliminate customs duties and quantitative restrictions
with regard to export / import among members . It helps to attain freedom,
security and justice without internal frontiers . It helps to achieve a free
single market.
SAARC
The South Asian
Association for Regional Cooperation (SAARC) comprising seven. South Asian
countries; Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka
was formed in 1985 with the adoption of its Charter at its first Summit in
Dhaka, Bangladesh. It was created for the purpose of holding periodic, regional
consultations on matters of mutual interest and to explore the possibility of
cooperation in economics, social, cultural and other fields. The rationale was
based on the success of similar regional groupings elsewhere and strength of
the concerted action in international representation with enhanced competitive
position ensued.
Following the Sixth SAARC summit held in Sri Lanka in 1991,
an Inter-Governmental
Group (IGG) was set up
to prepare an agreement to establish a South Asian Preferential Trade
Arrangement (SAPTA) by 1997. The framework agreement on SAPTA was approved in
1993 and implemented in December 1995, two years ahead of the scheduled.
SAPTA is a
preferential trading arrangement, aims at promoting and sustaining mutual trade
and economic cooperation through exchange of concession within the region through
step-by-step approach.
LAIA
The most important
regional trade association for South America is the Latin American Integration
Association (LAIA), formerly known as the Latin American Free Trade Association
(LAFTA). The intra continental trade consists mainly of commodities such as
wheat, cattle, wine, and bananas. The external trade is the continents
important trade and this consists of mainly trade in agricultural and mining
commodities. South America is a major world contributor of petroleum, coffee,
copper, bauxite, fish meal, and oilseed.
South American
countries have attempted to form trading blocks or associations to protect
markets from outside competitors. The Andean Pact between Bolivia, Chile,
Colombia, Ecuador, Peru and Venezuela was formed in 1969 did not succeed with
these goals. Today several new trade associations have been formed. The most
significant of these being the Southern Cone Common Market (known by its
Spanish acronym MERCOSUR) between Argentina, Brazil, Paraguay, and Uruguay,
with Bolivia as an associate member; the Group of Three between Colombia,
Mexico and Venezuela and also the Association of Caribbean States (ACS), which
includes Colombia, Suriname, and Venezuela
APEC
APEC stands for
Asia-Pacific Economic Cooperation. APEC officially started in 1989 when trade
and economic ministers of 12 countries in the Asia-Pacific region met in
Canberra, Australia on 6-7 November to advance the process of economic
cooperation among countries in the region. Former Australian Prime Minister Bob
Hawke suggested the creation of APEC following various attempts to create an
economic cooperation group in the region. The founding members of APEC are;
Australia, Brunei Darussalam, Canada, Indonesia, Japan, Republic Of Korea,
Malaysia, New Zealand, The Philippines, Singapore, Thailand, and The United
States. It is an organisation of economies in the Asia-Pacific region formed to
foster economic cooperation and trade among them with a view of enhancing
international trade. Its members work together to reduce trade barrier, open
investment opportunities, ease the exchange of goods, services, resources and
technical know-how, and strengthen economic and technical cooperation among
them.
APEC was able to
sustain the growth and development of the region for the common good of its
people and, in this way, to contribute to the growth and development of the
world economy. It helps to develop and strengthen the open multilateral trading
system and to enhance the positive gains, both for the region and the world
economy .APEC to reduce barriers to trade in goods and services and investment
among participants in a manner consistent with GATT principles, where
applicable.
ASEAN
ASEAN Stands for the Association of Southeast Asian Nation was established on 8 August 1967 in Bangkok by the five original Member Countries, namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam joined on 8 January 1984, Vietnam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999. The ASEAN region has a population of about 500 million, a total area of 4.5 million square kilometres, a combined gross domestic product of almost US$ 700 billion, and a total trade of about US$ 850 billion.
ASEAN helps to accelerate economic growth, social progress and cultural development in the region. It helps to promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter.
MERCOSUR
Mercosur, also known
as the Common Market of the South, is a trade bloc agreement that exists
between the following South American countries: Argentina, Brazil, Paraguay,
and Uruguay. The trade bloc was established under the Treaty of Asuncion
in March 1991; it was then expanded under the 1994 Treaty of OuroPreto, which
set up a formal customs union. The main objective of Mercosur is to bring
about the free movement of goods, capital, services, and people among its
member states. The headquarters is located in Montevideo, the capital of
Uruguay, and the official languages of the trade bloc are Portuguese and
Spanish.
In addition to the
four founding members of Mercosur, there are five countries with associate
member status. These countries are Bolivia, Chile, Colombia, Ecuador, and
Peru. As associate members, they are able to join free-trade agreements
but do not receive the benefits of the customs union. Venezuela is
currently awaiting membership, which is contingent upon ratification by
Paraguay, as all other member countries have already ratified Venezuela’s
membership
EFTA
European Free
Trade Association (EFTA), customs union and trading bloc; its current members
are Iceland, Liechtenstein, Norway, and Switzerland. EFTA was established in
1960 by Austria, Denmark, Great Britain, Norway, Portugal, Sweden, and
Switzerland. Iceland joined in 1970, Finland in 1986, and Liechtenstein in
1991. This group was known through the 1960s as the “outer seven” as opposed to
the “inner six” members of the European Economic Community.
EFTA
began with two goals to establish free trade among members and to seek a broader
economic union with the rest of Western Europe. The first was achieved when
most of the intra-EFTA tariffs were abolished. Negotiations toward the second
goal began in 1961.
ANDEAN
ANDEAN was established in 1995 by Bolivia, Columbia, Ecuador, Peru and
Venezuela and has international legal status. Trade is fully regulated .It is a
Customs Union because goods transfer among member economies is duty-free and
that with non-member at common tariffs.
ANDEAN Free Trade Area
formed in 1993 .Peru joined in 1997.ANDEAN helps to promotion of
free trade and investment.It cultural
heritage and social development
According to me the best trading block is North American Free Trade
Agreement (NAFTA).Its is largest trading block in the world on the basis of gdp
.It ranks second in the world on the basis of population ,first in population
is European Union (EU).NAFTA helps to remove trade barriers and motivate free
trade. North American Free Trade Agreement helps to eliminate restriction and
tariff which help to increase trade .
