TRADE BLOCS - CEFTA WEEK 5 MOYO & JOSH.pptx

TRADE BLOCS - CEFTA WEEK

1. Trade blocs in Europe – The Central European Free Trade Agreement GROUP THREE Moyosola & Joshua

2. INTRODUCTION TO TRADE BLOCS Definition - A trade bloc is defined as a collection of nations that have decided to lower or do away with trade restrictions ito promote economic integration and cooperation (Baldwin & Venables, 1995). Trade blocs are important for economic integration. Promote regional investment and commerce (Krugman, 1991). Lower quotas and tariffs to promote economic expansion (Bhagwati, 2008). bolster member countries' economic and political stability (Frankel, 1997). Overview of European Trade Blocs European Union (EU): a single market and customs union, making it the most integrated economic bloc (European Commission, 2022). European Free Trade Association (EFTA): promotes unrestricted commerce between non-EU nations such as Switzerland and Norway (EFTA Secretariat, 2021). Central European Free Trade Agreement (CEFTA): increases regional commerce and gets non-EU nations ready to join (CEFTA Secretariat, 2022).

3. What is CEFTA? A regional trade pact between Central and Southeast European non-EU nations (CEFTA Secretariat, 2022). seeks to promote economic cooperation and remove trade barriers (Baldwin et al., 2005). Goal: Increase non-EU nations' regional trade cooperation Improves regional market access for products and services (CEFTA Secretariat, 2022). Promotes stability and economic progress in economies undergoing transition (World Bank, 2019). Aligns trade practices with EU norms, serving as a phase of preparation for EU membership (Baldwin, 1997). INTRODUCTION TO CEFTA

4. Cefta member states Original members (1992) poland HUNGARY CZECH SLOVAKIA LATER MEMBERS ROMANIA BULGARIA CROATIA MACEDONIA ALBANIA bosnia montenegro serbia KOSOVO

5. By eliminating tariffs, quotas, and non-tariff trade barriers between its member states, CEFTA promotes trade (CEFTA Secretariat, 2022). promotes more seamless international trade and economic collaboration (World Bank, 2019). encourages equitable market access and competitiveness for local companies (Baldwin et al., 2005). Free trade and the removal of obstacles Boosting economic cooperation and investment Foreign direct investment (FDI) rises when regional economic integration is strengthened by CEFTA (Bartlett, 2008). promotes the unification of laws and trade policies in order to establish a stable environment for investment (European Commission, 2022). Increases access to regional markets, which promotes innovation and company growth (World Bank, 2019).

6. KEY FEATURES OF CEFTA Elimination of tariffs and trade barriers By removing tariffs and lowering non-tariff trade obstacles, CEFTA encourages more trade (CEFTA Secretariat, 2022). minimises customs processes to facilitate trade among participating nations (World Bank, 2019). Common trade policies To standardise practices across member states, CEFTA harmonises regional trade laws (European Commission, 2022). creates reciprocal acceptance of certificates and quality standards to promote easier trade (Bartlett, 2008). Protection of intellectual property To protect companies and innovation, CEFTA encourages the enforcement of intellectual property rights (IPR) (Baldwin et al., 2005). promotes conformity to EU patent, trademark, and copyright regulations in order to draw in foreign investment (European Commission, 2022).

7. Free trade and the removal of obstacles By eliminating tariffs, quotas, and non-tariff trade barriers between its member states, CEFTA promotes trade (CEFTA Secretariat, 2022). promotes more seamless international trade and economic collaboration (World Bank, 2019). encourages equitable market access and competitiveness for local companies (Baldwin et al., 2005). Increasing financial collaboration and investment Foreign direct investment (FDI) rises when regional economic integration is strengthened by CEFTA (Bartlett, 2008). promotes the unification of laws and trade policies in order to establish a stable environment for investment (European Commission, 2022). increases access to regional markets, which promotes innovation and company growth (World Bank, 2019). OBJECTIVES OF CEFTA

8. Growth in trade within the region By lowering trade obstacles, CEFTA has significantly increased trade volumes among its members (CEFTA Secretariat, 2022). promotes market expansion and regional economic integration (World Bank, 2019). Job creation and economic expansion Increased trade activity has helped GDP growth in member nations (Bartlett, 2008). employment growth in sectors of the economy that gain from improved trade relations (European Commission, 2022). Attraction of foreign direct investment (FDI) Foreign investors find CEFTA appealing because it offers a more stable and predictable economic environment (Frankel, 1997). promotes the establishment of operations by multinational firms in member states (World Bank, 2019). ECONOMIC IMPACT OF CEFTA

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