Meaning

Definition A trade bloc refers to a regional arrangement among countries that have established formal mechanisms for cooperation on trade issues.

Restrictions

Aims

Undesirable or desirable

Purpose

Help

Security

Free trade - Free Trade policy

Customs union Common external

Common market- Intra regional factor policy:

Economic union:

EU- EUROPEAN UNION

SAARC- SOUTH ASSIAN ASSOCIATION FOR REGIONAL COOPERATION

CIS- COMMON WEALTH OF INDEPENDENCE STATES

LAIA- LATIN AFRICAN INTEGRATION ASSOCIATION OPEC- ORGANISATION OF PETROLEUM EXPORTING COUNTRIES NAFTA- NORTH AMERICAN FREE TRADE ASSOCIATION EFTA- THE EUROPEAN FREE TRADE ASSOCIATION MERCOSUR ASEAN- ASSOCIATION OF SOUTH-EAST ASIAN NATIONS

ASEAN

EU

NAFTA

MERCOSUR MERCOSUL

1.

Reduction in trade barrier

Tariff imposition and mutual negotiations

2.

3.

Economic Integration
Currency

4.

5.

Maintenance of relations and mutual benefits

Bargaining

6.

7.

Assistance

1. Larger Market

2. Optimum utilization of resources

3. Increased efficiency

4. Tariff liberalization

5. Expansion and Diversification of trade

6. Economic Co-operation

Segregation of world into small-small blocs. Failure of the policies of WTO.

-Article: How WTO lost its meaning?

Exploitation of weak nations within the Trade Bloc. Rivalry between different Trade Blocs.
-Article: CMEA v/s WESTERN EUROPEAN COUNTRIES

Will trade Blocs kill worldwide Free Trade?

-WTO clause of Free Trade.

Trade blocs acting as a Trade barriers to non members countries.

 Much awaited India- Asean free trade agreement Signed on 8th october,2003
Comprised of 10 nation economy with

the increasing growth rate at 7% year on year

For India it would open the doors for greater trade

Expansion and entry in new areas of development

Why still India is not ready to sign the agreement?

Offers given by India On pepper from 70% to 50% On crude oil from 80% to 50% on refined palm oil from 90% to 60% On tea & coffee from 100% to 50% Demands of the member nations On pepper from 70% to 40% On crude oil from 80% to 40% On refined oil from 90% to 30% On tea & coffee from 100% to 20%

Increase in trade
Employment opportunities More tourism Simplification of trade

 Saving the farmers

Initiative by the government

The present budget announcement

 High Attractiveness Of Free Trade Agreement Expansion of trade current trade agreement also takes place.

Conclusion