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Trading Blocks
Trading Blocks
Definition :
Regional trade blocks are intergovernmental associations that manage and promote trade activities for specific regions of the world They have political as well as political implications for example the European union , the worlds largest trading block has harbored political ambitions. The Maastricht treaty which gave birth to EU calls for joint policies in regard to military , defense, and citizenship
Functions:
The OPEC MCs coordinate their oil production policies in order to help stabilise the oil market and to help oil producers achieve a reasonable rate of return on their investments. This policy is also designed to ensure that oil consumers continue to receive stable supplies of oil.
OPEC FUND: The OPEC Fund for International Development is a multilateral development finance institution. It was established in January 1976, by the member countries of the Organization of the Petroleum Exporting Countries.
OPEC Secretariat
The Secretariat carries out the executive functions of the Organization in accordance with the provisions of the OPEC Statute and under the direction of the Board of Governors Members: Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE, Venezuela.
ASEAN www.aseansec.org
ESTABLISHED IN 1967 . 5 FOUNDING MEMBERS : INDONESIA , MALAYASIA, PHILLIPINES, SINGAPORE AND THILAND. LATER ON JOINED BY BRUNEI, MYANMAR,VIETNAM ETC. ASEAN FREE TRADE AREA (AFTA) . ASEAN BEYOND TRADE HAS POLITICAL ROLE AS VISIBLE BY THE FORMATION OF ASEAN REGIONAL FORUM OF WHICH CHINA, INDIA AND USA ARE MEMBERS. ASEAN AS A TRADING BLOC HAS BEEN A HUGE SUCCESS LEADING TO PROSPERITY AND ELIMINATION OF POVERTY IN THE MEMBER COUNTRY
SAARC
The South Asian Association for Regional Cooperation (SAARC) was established when its Charter was formally adopted on December 8, 1985 by the Heads of State or Government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. SAARC provides a platform for the peoples of South Asia to work together in a spirit of friendship, trust and understanding. It aims to accelerate the process of economic and social development in Member States.
AREAS OF COOPERATION
Agriculture and Rural Development; Health and Population Activities; Women, Youth and Children; Environment and Forestry; Science and Technology and Meteorology; Human Resources Development; and Transport. Recently, high level Working Groups have also been established to strengthen cooperation in the areas of Information and Communications Technology, Biotechnology, Intellectual Property Rights, Tourism, and Energy.
The Heads of State or Government welcomed the entry of the Islamic Republic of Afghanistan into SAARC. This was a historic moment as Afghanistan assumed its rightful place as a valued member of the SAARC fraternity
Established Centres
1.SAARC Agricultural Information Centre (SAIC), Dhaka 2.SAARC Meteorological Research Centre (SMRC), Dhaka 3.SAARC Tuberculosis Centre (STC), Kathmandu 4.SAARC Documentation Centre (SDC), New Delhi 5.SAARC Human Resources Development Centre (SHRDC), Islamabad 6.SAARC Coastal Zone Management Centre, Maldives 7.SAARC Information Centre, Nepal 8.SAARC Energy Centre, Pakistan 9.SAARC Disaster Management Centre, India
SAARC
BORN IN 1985 7 MEMBERS COUNTRIES :BANGLADESH, BHUTAN, INDIA,MALDIVES,NEPAL,PAKISTAN AND SRI LANKA IT HAS 1.3 BILLION INHABITANTS REPRESENTS 22% OF THE WORLD POPULATION BUT ONLY 1.9% OF THE WORLD GNP. SAARC HAS BEEN A SHEER FAILURE. THE TOTAL EXTERNAL TRADE OF THE REGION 0.8% OF WORLD EXPORTS AND 1.3% OF WORLD IMPORTS THE REASON BEING POLITICAL DISPUTE BETWEEN MEMBER COUNTRIES
SAARC CONTD.
STILL SOME PROGRESS HAS BEEN ACHIEVED SAPTA (SOUTH ASIAN PREFERENTIALTRADING AGREEMENT) HAS COME INTO FORCE IN 1995 CONSENSUS ON SAFTA(SOUTH ASIAN FREE TRADE AREA)HAS BEEN REACHED
NAFTA Initialing Ceremony, October 1992. From left to right: (Standing) Mexican President Salinas, US President Bush, Canadian Prime Minister Mulroney (Seated) Jaime Serra Puche, Carla Hills, Michael Wilson.
e) create effective procedures for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes; and f) establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement.
2. The Parties shall interpret and apply the provisions of this Agreement in the light of its objectives set out in paragraph 1 and in accordance with applicable rules of international law.
NAFTA
BORN IN JANUARY 1994. MEMBER NATIONS:US,CANADA AND MEXICO. its the WORLD LARGEST FREE TRADE AREA. UNDER NAFTA, ALL NON TARIFF BARRIERS TO AGRICULTURE WERE ELIMINATED. MANY TARRIFFS ARE BEING ELIMINATED OVER A PEROID OF 5-15 YRS.
NAFTA
TWO WAY TRADE BETWEEN US & MEXICO HAS INCREASED BY MORE THAN 55%.($11.6 BILLION). TWO WAY TRADE BETWEEN US &CANADA INCREASED MORE THAN 50%(16.3 BILLION.) HUGE BENEFITS HAVE ACCRUED TO THE NAFTA MEMBER COUNTRIES. NAFTA HAS BEEN A ROARING SUCCESSS.
EU
IT IS A FAMILY OF DEMOCRATRIC EUROPEAN COUNTRIES. COMMITED TO WORKING TOGETHER FOR PEACE AND PROSPERITY. ITS HISTORICAL ROOTSLIE IN THE SECOND WORLD WAR. IDEA OF EUROPEAN INTEGRATION WAS CONCEIVED TO PREVENT SUCH KILLING AND DESTRUCTION FROM EVER HAPPENING AGAIN.
The Eurosystem, which consist of the European Central Bank (ECB) and the national central banks of the 13 countries belonging to the euro area, has the exclusive right to issue euro banknotes. All decisions on the designs, the denominations, etc. of the euro banknotes are taken by the ECB.
19 September 1950: European Payments Union (EPU) 18 April 1951: European Coal and Steel Community established 25 March 1957: Treaty of Rome 29 December 1958: European Monetary Agreement
FIVE EU INSTITUTIONS
EUROPEAN PARLIAMENT.(ELECTED BY PEOPLES OF MEMBER STATES) COUNCIL OF EUROPEAN UNION(REPRESENTING THE GOVERNMENTS OF MEMBER STATES). EUROPEAN COMMISION(DRIVING FORCE AND THE EXECUTIVE BODY). COURT OF JUSTICE. COURT OF AUDITORS.
THE RULE OF LAW IS FUNDAMENTAL TO THE EUROPERAN UNION.ALL EU DECISIONS ARE BASED ON TREATIES.,WHICH ARE AGREED BY ALL EU CONTRIES. EU CONSISTED OF JUST 6 COUNTRIES: BELGIUM,GERMANY,FRANCE,ITALY,LUXEMBOURG & NETHERLANDS. FURTHER ADDITIONS HAVE BEEN REAPEATEDLY TAKEN PLACE. LAST INCREASE TOOK PLACE IN 2004,WITH 10 NEW COUNTRIES JOINING IN.
ACHIEVEMENTS
IT HAS ENSURE FREEDOM,SECURITY & JUSTICE. JOB CREATION. REGIONAL DEVELOPMENT & ENVIRONMENTAL PROTECTION. IT HAS HELPED RAISED LIVING STANDARDS,BUILT A SINGLE EUROPE WIDE MARKET. LAUNCHED THE SINGLE EUROPEAN CURRENCY- THE EURO. IT HAS STRENGTHNED EUROPES VOICE IN THE WORLD.
CASE STUDY
WHY ASEAN IS SUCCESSFUL AND SAARC HAS BEEN UNSUCCESSFUL. o ASEAN IS ONE OF THE MAJOR TRADING BLOCS IN THE WORLD o IT REPRESENTS 420 MILLION PEOPLE. o It's a LARGER TRADE BLOCK THAN NORTH AMERICA AND WESTERN EUROPE. o SAARC REPRESENTS 22% OF HUMANITY. o THERE IS A CONTRADICTION, AN IRONY BETWEEN ASEAN & SAARC. o WHILE ASEAN HAS BEEN A ROARING SUCCESS & CALLED ASIAN TIGERS ,SAARC HAS BEEN A SHEER FAILURE.
REASONS
IN ASEAN ALL COUNTRIES ARE OF EQUAL GEOGRAPHIC SIZE. LEVEL OF ECONOMIC DEVELOPMENT IS THE SAME IN ALL COUNTRIES. COMMON FEAR OF COMMUNIST CHINA ALL OF THEM HAD SIMILAR ECONOMIC POLICIES.THEY ALL INTRODUCED ECONOMIC LIBERALIZATION IN 1960s WHICH FURTHER ACCLERATED ECONOMIC GROWTH. WAY OF FUNCTIONING OF ASEAN BASED ON TWO PRINCIPLES: 1.MUSYAURARAH(CONSENSUS). 2.MUFAKAT(CONSULATATIONS).
INDIAs TRADE WITH ASEAN IS MORE THAN 20 TIMES THAN IN CASE OF SAARC. IN SOUTH ASIA INDIA IS THE LARGEST COUNTRY.IT OCCUPIES MORE THAN 70% OF GEOGRAPHICAL AREA. SO OTHER NATIONS FEEL THAT STRENGTHENING SAARC MEANS EMPOWERING INDIA. SERIOUS BILATERAL DISPUTES BETWEEN TWO MAJOR SOUTH ASIAN POWERS i.e INDIA & PAKISTAN. BILATERAL DISPUTES AND DIFFERENCES BETWEEN OTHER MEMBER COUNTRIES. INDIA,BANGLADESH DISPUTE. INDIA ,NEPAL DISPUTE. NEPAL MYNMAR DISPUTE. PAKISTAN BANGLADESH DISPUTE.
VAST DIFFERENCE IN ECONOMIC DEVELOPMENT.. INDIA IS A DEVELOPED ECONOMY OF SOUTH ASIA .OTHER CONTRIES ARE LESS DEVELOPED. PURCHASING POWER OF T HESE CONTRIES IS VERY LOW.THEY CANNOT ACT EVEN AS A MARKET OF INDIAN GOODS.