International & Regional

Organizations
Sarfraz Hussain Ansari
 International Relations
• International Organizations
– League of Nations
– United Nations
– International Court of justice
• Regional Organizations
– European Union
– NAFTA
– ASEAN
– SAARC
– SCO
– ECO
– OIC
Regional Organizations

THE EUROPEAN UNION

 The European Union (EU)
• Political and economic union of 28 member
states of Europe

• The EU has developed an internal single market

• EU policies aim to ensure

– Free movement of people, goods, services and capital
– Enact legislation in justice and home affairs; and
– Maintain common policies

• A monetary union was established in 1999 and came into

force in 2002
– composed of 19 EU member states which use the euro currency.
 History
• The EU traces its origins to
– the European Coal and Steel Community (ECSC)- by
the 1951 Treaty of Paris, and
– the European Economic Community (EEC)-
1957 Treaty of Rome.
• The original members of the European
Communities were;
– the Inner Six:
• Belgium, France, Italy, Luxembourg, the Netherlands,
and West Germany.
• Treaty of Rome (1957–92)- "a first step in the
federation of Europe“

– In 1957- the Inner Six signed the Treaty of Rome,

which established a customs union (EEC).

• The Treaty came into force in 1958

• In 1979, the first direct elections to the European
Parliament were held
• In 1986, the European flag used by the EEC and the Single
European Act was signed.
• Maastricht Treaty (1992–2007)- the Treaty on EU
– The European Union was formally established when
the Maastricht Treaty came into force on 1 November 1993
• In 2002, euro banknotes and coins replaced national
currencies in 12 of the member states.
• Since then, the euro-zone has increased to 19 countries.
• Lisbon Treaty (2007–present)-it established a
Constitution of Europe and ratified all previous Treaties
European Union membership criteria:
Becoming a member of the EU is a complex procedure so is the exist….

• Copenhagen criteria Copenhagen Criteria

• Geographic criteria
• Political criteria • a free-market economy
– Democracy • a stable democracy
– Rule of law • the rule of law
– Human rights
• the acceptance of all EU
– Protection of minorities
legislation, including of
• Economic criteria- the euro
capitalism
• Legislative alignment
• Candidate countries • Potential candidates
• These countries are in • Potential candidate
the process of countries do not yet
integrating EU fulfill the requirements
legislation into national for EU membership:
law: – Bosnia and Herzegovina
– Albania – Kosovo
– Montenegro
– North Macedonia
– Serbia
– Turkey
 Structure
EU

Council Of The European

European European European European Court Of Justice European
Of The Central
Parliament Union Council Commission European Court Of
Limited Union
The
Bank Auditors
Scrutinize Full Interpretation Controls
and
Executive The EU
Scrutinize Executive And The monetary Budget Is
Amend Legislation Authority Application policy of
Authority Of EU Law Scrutinized
Legislation And The the
Treaties Eurozone

Legislative Executive Judicial

 Functions
• The EU operates through a hybrid system
of supranational and intergovernmental decision
making
 Heads of Executive-
Guardian of the
States or Govt Treaties

Council of
National
Ministers

Direct Elections
every 5 years

Organogram of the political system with the seven institutions of the Union in blue, national /
intergovernmental elements in orange
The European Parliament- Scrutinize and Amend Legislation
• consists of 751 directly elected representatives, forming the EU's lower house of its
bicameral legislature.
• It shares with the Council of the EU equal legislative powers to amend, approve or
reject Commission ‘s proposals .
• It elects the Commission's President, approves the College of Commissioners, and
may vote to remove them collectively from office

The Council Of The European Union- Scrutinize and Amend

Legislation
• brings together heads of state/governments.
• It forms the upper house of the EU's
• Its approval is required for any proposal to enter into law.

The European Council- Limited Executive Authority

• sets the general political directions and priorities of the Union by
gathering together its member states' heads of
state/government (elected chief executives).
• The conclusions of its summits (held at least quarterly) are adopted by
consensus.
the European Commission- the "Guardian of the Treaties"
consists of an executive cabinet of public officials
led by an indirectly elected President.
this College of Commissioners manages and directs the Commission's permanent civil
service.

the Court of Justice of the European Union

ensures the uniform application of EU law
resolves disputes between EU institutions and member states, and against EU
institutions on behalf of individuals.

the European Court of Auditors

investigates the proper management of finances within both the EU entities and EU
funding provided to its member states.
provide oversight and advice
refer unresolved issues to the European Court of Justice

the European Central Bank is responsible for monetary stability within member states.
 Economic Blocks: the Shape of the
Future
• The EU is the world’s largest economic block (510 Million) and the
most highly integrated
• Treaty of Rome-1957-EEC (French dominated) for elimination of
tarrifs for free flow of men and material
• The EFTA-1959 as a Britain dominated block
• From 1973 onwards, the EEC membership has increased from 6 to
28
• The Single European Act-1986
– Elimination of customs
– A single banking market
– A uniform VAT
• The Treaty of EU-1991 at Maastricht, Netherland, to finalize their
political and monetary union
 Political Fault Lines Of Economic Integration:
• The Britain and Denmark were skeptical of a fully
integrated economic and monetary union from the start
– Britain questioned the control of her currency by Euro. Bank and
retained the option to ‘opt out’ of EU

• The Maastricht criteria for controlling inflation, budget

deficits, and public debt were difficult to meet for Italy and
Greece
• Even France and Germany found it hard to meet the criteria
• The postwar Europeans had become accustomed to high
spending on social welfare and old age pensions
• The budgetary cuts were difficult to impose at home by the
governments (the major reason as to why Brexit)
• The high levels of unemployment in Europe
 Economic Fault Lines: Euro Bank
• The autonomy of European Central Bank
• There were doubts that political concerns would
dominate
• Maintaining a stable Euro was another challenge
• Germany would assert EU to follow low inflation
policies
• France and Italy were ready to surrender a portion
of their sovereignty over more political control of
the Euro. Policy making
 Economic Fault Lines: Euro Bank
• Despite its steady progress since 1951, the
European economic integration has been neither
smooth nor easy
• Disagreements over trade and monetary policy
still divide EU members (France fears Germany’s
domination)
• Britain fears loosing sovereignty to a continental
institution
• The admission of new members raises additional
concerns both economic and political
 • While no member state has left the EU,
the United Kingdom signified the intention to
leave after a membership referendum in June
2016 and is negotiating its withdrawal
BREXIT
 Brexit-Background Reflections
• In the 1970s and 1980s, withdrawal from the
European Communities was advocated mainly
by the political left
• the Labour Party's 1983 election manifesto
advocating full withdrawal
• From the 1990s, opposition to
further European integration came mainly
from the right
• The Conservative Party led to rebellion over
the Maastricht Treaty in 1992.
 BREXIT?
• What does Brexit mean?
• It is a word that is used as a shorthand way of saying the UK leaving
the EU - merging the words Britain and exit to get Brexit
• Why is Britain leaving the European Union?
• A referendum - a vote in which everyone (or nearly everyone) of
voting age can take part - was held on Thursday 23 June, 2016
• Whether the UK should leave or remain in the European Union.
• Leave won by 51.9% to 48.1%.
• The referendum turnout was 71.8%, with more than 30 million
people voting.
• In June 2016, UK became the first country to leave EU
• On 29 March 2017 the UK formally notified the European Council of
its intention to leave the EU by triggering of Article 50 of the Lisbon
Treaty.
 What was the breakdown across the UK?

• England voted for Brexit, by 53.4% to 46.6%.

• Wales also voted for Brexit, with Leave getting
52.5% of the vote and Remain 47.5%.
• Scotland and Northern Ireland both backed
staying in the EU.
• Scotland backed Remain by 62% to 38%, while
55.8% in Northern Ireland voted Remain and
44.2% Leave
• For the UK to leave the EU it had to invoke
Article 50 of the Lisbon Treaty which gives the
two sides two years to agree the terms of the
split.
• Theresa May triggered this process on 29
March, 2017, meaning the UK is scheduled to
leave at 11pm UK time on Friday, 29 March
2019
 Why do politicians want a deal?

• The main point of having a deal between the

UK and the EU is to ensure as smooth as
possible an exit from the EU for businesses
and individuals - and to allow time for the two
sides to hammer out a permanent trading
relationship.
 What is in Theresa May's deal with the EU?
After negotiation, the UK and EU agreed a Brexit deal. It comes in two parts.

The Withdrawal Agreement

• This is a legally-binding text The Statement on Future Relations
that sets the terms of the UK's
divorce from the EU. • This is not legally-binding
• It covers how much money the • It sketches out the kind of
UK owes the EU - an estimated
£39bn – and long-term relationship the
• what happens to UK citizens UK and EU want to have in a
living elsewhere in the EU and range of areas, including
EU citizens living in the UK. trade, defence and security
• It also proposes a method of
avoiding the return of a
physical Northern Ireland
border.
 Brexit Impact on UK
• Food and Drinks- 16% of UK’s total manufacturing
• Farming-60% is consumed in UK and EU is the biggest
market. Also farm subsidies provides support to UK
farmers
• London’s financial and business services will be
threatened
• impact on UK universities would be negative
• Challenge of retaining highly skilled workforce
• The broad consensus among economists is that Brexit
will likely reduce the UK's real per capita income in the
medium term and long term
• the Brexit referendum itself had damaged the economy
 BREXIT Impact outside UK

• Lowering oil prices

• Dollar getting stronger
• Slowing Chinese economy
• US-China Trade War
• Post-Brexit options for trade with EU
• UK-Irish relations
• UK-EU security, defence and police relations
• Brexit-Climate impact, employment and R&D
 Options outside EU
• The Norway Option-around 28% of EU laws are applicable over Norway
• Joining EFTA
• EU-Canada Option- the Comprehensive Economic
and Trade Agreement
– Free trade in goods only
• The WTO Option
• Looking Beyond Europe
– China rising
– New emerging markets and trade blocks
– Commonwealth counties
 Brexit----as of today
• The UK was originally due to leave on 29 March.
The first extension shifted that date to 12
April.The EU and UK have agreed a further delay
to Brexit until 31 October.
• How will the deadlock be broken?
• The UK could leave earlier if a withdrawal
agreement has been ratified by MPs.
• The country must now take part in European
elections on 23 May
• If it did not, the UK would have to leave the EU on
1 June without a deal.
• the Brexit deal that covers exit terms –
including
– money,
– the transition period,
– citizen's rights
– the border between Northern Ireland and the
Republic.
NAFTA

NORTH AMERICA FREE TRADE

AGREEMENT
• NAFTA-“North American Free Trade Agreement”.

• an agreement between the countries of North America:

Canada, United States, & Mexico.

• NAFTA was signed in 1993 and went into effect on January

1st, 1994.

• NAFTA was written to create a Free Trade Area in North

America.
• “Free Trade” means that countries may freely trade
goods with each other without having to pay a tariff
(tax) on those goods.
• In other words, “free trade” means no trade barriers.
• It eliminates only internal trade barriers
between the three member countries

• It does not set barriers with other states, nor

does it create supranational economic or
political institutions
 History
• January 1989 when US-Canada free trade
agreement took effect
• Incorporating Mexico into it faced opposition
from pressure groups in US
• Substantial economic differences between US
and Mexico
• Even labor/workers in Mexico protested
• Opponents of NAFTA claimed that it had
destroyed American job market
 “It was on Oct. 7, 1992, under an old oak tree in downtown San
Antonio that Mexican President Carlos Salinas, U.S. President
George Herbert Walker Bush and Canadian Prime Minister Brian
Mulroney signed the historic treaty that dropped trade barriers on
the continent.”
 NAFTA: Raison d’etre
• The purpose of the agreement is to:
• Allow free movement of goods and services
• Promote competition in the free trade areas.
• Protect the property rights of people and businesses
• Be able to resolve problems that arise among the
member countries.
• Encourage cooperation among member countries.

• The agreement opened the door for free trade, ending

tariffs on various goods and services, and implementing
equality between Canada, USA, and Mexico.
• Supporters of NAFTA argued that free trade
would create jobs and lower consumer prices

• Also environmental and labor protection laws

would benefit Mexico more in the longer run
• Free trade increases sales and profits for
Mexico, Canada and the U.S.A., thus
strengthening their economies.
• Lack of tariffs has allowed Mexico to sell
its goods in the USA and Canada at
lower prices.
• This makes Mexican products more
competitive in these markets and
increases Mexico’s profits as it tries to
develop its economy.
• Free trade has caused more U.S. job losses
than gains, especially for higher-wage jobs.
• People work for lower wages and there are
fewer labor regulations in Mexico, so
American factories have moved across the
border.
• Mexico does not have as strict environmental
regulations like Canada & U.S., so when
factories move across the border, they are
contributing to North America’s pollution
problem.
• Some argue that our borders should be open
like the EU does in Europe.
• That makes some people angry because
American business owners have enjoyed many
benefits from NAFTA:
• They can move their factories to Mexico and
ship the goods to the US with no tariffs.
• They do not have to pay the workers in
Mexico as much as in the United States.
• There are not as many labor and
environmental regulations for factories in
Mexico.
• They can sell their product for cheaper, but
still make a good profit.
• Most Mexican business owners have mixed
feelings about NAFTA.

• They like NAFTA because they can trade

freely.
• They can ship & sell their products across
the continent without having to pay
tariffs.
• They have a greater area to sell their
products in.

• However, they do not like foreign owned

factories because they would create
• In the early 1990s, Mexico owed a lot of
money to the World Bank, to private banks,
and to other countries.
• Government officials decided the only way
out was to completely restructure
Mexico’s economy and to focus on
exporting.

• They believed NAFTA would be good for the

economy of Mexico.

• They knew that the maquiladoras would

provide jobs for Mexicans.
• Mexican factory workers have benefited from
NAFTA because it has provided jobs in a
country where there were not enough jobs.

• Unfortunately, the wages are very low and

the working conditions are rough.
• Most workers barely make enough money
to provide food for their families, even
though they work very long hours.
Employees work at an American-owned factory located in Mexico.
• As a result of NAFTA, many U.S.
manufacturers moved their operations
south of the border where employees
were cheaper and environmental
standards lower.

• Many American factory workers lost

their jobs because of this.
• Unemployment in the US rose after
NAFTA went into effect.
 “In a 1992 debate with President George Bush Sr. and
presidential candidate Bill Clinton, independent candidate
Ross Perot famously suggested NAFTA would create "a
giant sucking sound" as jobs moved south of the border.”
• American consumers have
benefited from NAFTA.

• Goods made in Mexico cost a lot

less because labor is cheaper there.

• Goods are also cheaper because

there are no tariffs placed on
imports.
• NAFTA now links over 450 million people producing $17 trillion worth of
goods and services.
• It has met many of its goals:
• It created jobs in Mexico and helped build up Mexico's middle class.
• Trade between US, Mexico, & Canada has more than tripled since
1994.
• Unfortunately, NAFTA still has its problems.
• Small farmers in Mexico were put out of business by cheap U.S. agricultural
exports.
• They were forced to move to bigger cities, adding to poverty,
pollution, overcrowding, and illegal immigration to the U.S.
• The population of illegal immigrants in the U.S. in 1990 was 2 million,
now it's around 11 million.
• There is major pollution in the emerging cities in Mexico
 Controversy over NAFTA
• During 1980s, Mexico opened up its economy
• Joined GATT in 1986
• NAFTA is an agreement integrating First and
Third World economies.
• The debate against NAFTA and Mexico is still
going on
• US objects antidemocratic practices of Mexico
• The overall impact of NAFTA has been modest
 Trump’s campaign
• Trump calls "the worst trade deal" ever signed
by the US.
– wiping out US manufacturing jobs
– Unemployment in bordering US states particularly
• Blue-collar workers and college dropouts are the most
affected
– Human and drug trafficking-the Mexican Wall
• NAFTA –renegotiating terms and conditions
 Renegotiations-6 Points
1. Auto companies should manufacture 75 % parts in US,
Canada or Maxic (it’s 62.5%)
2. Canada should open up dairy market
3. More strict IPRs
4. U.S. drug companies can sell products in Canada for
10 years before facing generic competition. It was
eight years under NAFTA
5. Mexican trucks must meet U.S. safety standards
before crossing the border
6. US demands guarantee for her oil companies
regarding dispute resolution
 The Future of NAFTA
• Making NAFTA a Free Trade Area of the Americas (FTAA)
• US opposed Chile's membership
• However, the trade volume between members has
continued to grow (Aprox. US $ 1.02 Tril)
• It has also promoted work specialization and trade in
components/parts manufacturing
• The Mexican Wall- exchange of hot words between
leaders
• Crisis in Venezuela
• Drug and human trafficking
• Association of Southeast Asian Nations
 ASEAN
• The Association of Southeast Asian Nations is a
regional intergovernmental organization
• comprising ten countries in Southeast Asia,
• promotes intergovernmental cooperation
• Headquarters: Jakarta, Indonesia
• Founded: August 8, 1967
• the ASEAN Plus Three, consisting of ASEAN, China,
Japan and South Korea, was created in 1997.
• The group became ASEAN Plus Six with Australia, New
Zealand and India
 History: The Founding of ASEAN
• an organization formed in 31 July 1961 called
the Association of Southeast Asia (ASA)
– a group consisting of
• the Philippines
• the Federation of Malaya, and
• Thailand.
• On 8 August 1967– the Foreign Ministers of Indonesia,
Malaysia, the Philippines, Singapore and Thailand –
signed a document known as
– the ASEAN Declaration.
• the Association of Southeast Asian Nations (ASEAN)
has evolved as the most successful inter-governmental
organization in the developing world today.
• The aims and purposes;
– cooperation in the economic, social, cultural,
technical, educational and other fields, and
– the promotion of regional peace and stability
– respect for justice and the rule of law
– adherence to the principles of the United Nations
Charter.
• It stipulated that the Association would be open
for participation by all States in the Southeast
Asian region subscribing to its aims, principles
and purposes
• v
 The ASEAN Charter
• On 15 December 2008, member states met
in Jakarta to launch a charter
• signed in November 2007
• with the aim of moving closer to "an EU-style
community".
• The charter turned ASEAN into a legal entity
• to create a single free-trade area for the
region of 500 million people.
• It also regularly engages other countries in
the Asia-Pacific region and beyond.
• As a major partner of Shanghai Cooperation
Organisation, ASEAN maintains a global
network of alliances and dialogue partners
• ASEAN and SAARC
Membership Criteria
 Structure
1. The ASEAN SUMMIT-heads of States or Govt
– supreme policy making body
– Meetings held twice annually
2. ASEAN Coordinating Council of Foreign Ministers-
implements decisions and agreements of the Summit
3. ASEAN Community Councils
I. ASEAN Political-Security Community Council
II. ASEAN Economic Community Council
III. ASEAN Socio-Cultural Community Council
4. ASEAN Sectoral Ministerial Bodies
5. ASEAN Committee of Permanent Representatives
6. ASEAN Secretariat
 ASEAN Economic Community
• On 20 November 2007, during the 13th ASEAN Summit
in Singapore, its blueprint was adopted

• ASEAN leaders sign the declaration of the ASEAN

Economic Community during the 27th ASEAN Summit
in Kuala Lumpur, 2015

• An EU-style system is emerging in ASEAN region

• aims to "implement economic integration initiatives"

to create a single market across ASEAN member states.

• ASEAN will rise globally as one market

 The Future of ASEAN
• A rising economic block with geo-strategic
importance
• The influence and presence of the US in the
ASEAN region and the rise of China
– Sino-Russia ties
– Sino-US rivalry
• BRI and the US investments in ASEAN countries
• SCO and ASEAN
• Rising influence of India both in ASEAN and SCO-
options for Pakistan
• Can Pakistan become a member?
 Conclusion
• The complete political, cultural and economic
integration is a long road to traverse for the
ASEAN members due to;
– Diverse political systems
– Types of governments
– Various religions
– Borders and islands’ control issues
– Poverty, crime and weak rule of law
– Evolving regional institutions of ASEAN
– Capacity issues
– Changing regional dynamics