Regional Trade Blocs

it is a ppt on international business

1. Regional Trade Blocs Members:- Rabinarayan Gupta Rani Shikha Rajesh Singh Senger

2. Regional Trade Blocs Regional trade blocs are intergovernmental associations that manage and promote trade activities for specific regions of the world.

3. Major Trade Blocs EU (European Union ) NAFTA (North American Free Trade Agreement) MERCOSUR (Mercado Comun del Cono Sur, also known as Southern Common Markets (SCCM) ASEAN (Association of Southeast Asian Nations) SAARC (south Asian association for regional cooperation)

4. European Union Objectives:- Setting up a common market Continuous & balanced expansion Closer relations between the member states.

5. ACTIVITIES OF EU Elimination of custom duties, quantitative restrictions with regard to export & imports. Establishment of a common custom tariff & commercial policy. Abolition of all obstacles for movement of persons, services & capital. Application of programmes in order to coordinate the economic policies.

6. ASEAN Established in 1992 Total six members- Singapore, Brunei, Malaysia, Philippines, Thailand & Indonesia. To establish a common effective preferential tariffs (CEPT) plan. The CEPT allows for tariffs cut ranging from 0.50% to 20.00% beginning with 15 products. In 1994, ASEAN countries formed AFTA in order to develop inter ASEAN trade.

7. Objectives of AFTA To encourage inflow of foreign investment into this region. To establish free trade area in the member countries. To reduce tariff of the products produced in ASEAN countries (40% value addition in the ASEAN countries to the product value is treated as manufactured in ASEAN countries).

8. NAFTA Initially bilateral trade between Canada & U.S. NAFTA went into effect in 1994 after the joining of Mexico. U.S.- Canada trade is the largest bilateral trade in the world. The U.S. 1 st Mexico’s & Canada largest trading partner. NAFTA is a powerful trading bloc with a combined population and GNP greater than 15 member EU.

9. Provisions of NAFTA Duty-free market access. Trade rules- safeguard, subsidies, countervailing & antidumping duties, health & safety standards. Rules on trade in services & investment Protection of intellectual property. Dispute settlement mechanism.

10. MERCOSUR Established in 1991 by Brazil, Argentina, Paraguay, Uruguay. These four members generate 70% GNP of south America. By 1996, MERCOSUR had abolished tariffs on goods accounting for 90% of the trade between its members countries, with remaining tariffs to be abolished by 2000. MERCOSUR & EU Signed a cooperation agreement to pave the way for a free trade accord in 2001.

11. SAARC Established in August 1983. Members-India, Bangladesh, Bhutan, Pakistan, Srilanka The Maldives & Afghanistan

12. Objectives of SAARC To improve the quality of life & welfare of the people of the member countries. To develop the region economically, socially & culturally To provide the opportunity to the people of the region to live in dignity & to exploit their potentialities. To enhance the mutual assistance among member countries in the areas of economic, social, cultural, scientific & technical field. To enhance cooperation to other trade blocs.

13. SAPTA The council of ministers have signed the SAARC preferential trading arrangement agreement on April 11, 1993.

14. Objectives of SAPTA To gradually liberalize the trade among members of SAARC. To eliminate trade barriers among SAARC countries & reduce or eliminate tariffs. To promote and sustain mutual trade & economic cooperation among member countries.

15. Thank You…