INTERNATIONAL TRADING BLOCS

Presented By Nikhil Upadhye Santosh Mahadeshwar

WHAT IS TRADING BLOCS ?

A Trade Bloc can be defined as a Preferential Trade Agreement (PTA) between a subset of countries, designed to significantly reduce or remove trade barriers with in member countries. When a trade bloc comprises neighbouring or geographically close countries. It is referred to as a regional trade (or integration) agreement.

In brief, a trading bloc as an association of countries that reduces intra-regional barriers to trade in goods.

OBJECTIVES

The main objective is to reduce the tariffs and quotas on imports between the member countries It regulates the trade with in the bloc and with other trading blocs of the world. To encourage Free trade between Member Countries It helps in increasing economic relations among members countries

MEMBERSHIP OF TRADING BLOC DEPEND ON ?

Geographical distance of the member countries Historical and Cultural Relationships Geo political reasons such as controlling trade in a particular commodity and retaining the power.

THE MAIN TRADING BLOCS OF THE WORLD

The European Union - EU The European Free Trade Agreement EFTA European Agreements and The European Economic Area - -EEA The North American Free Trade Agreement - NAFTA The Canada US Free Trade Agreement CUSTA In Latin America The Common Market of South MERCOSUR The Central American Common Market CACM The Latin American Integration Association LAIA The Caribbean Community and Common Market CARICOM The Common Market of Eastern Southern Africa COMESA

THE MAIN TRADING BLOCS OF THE WORLD

The Southern African Customs Union - SACU The Association of Southeast Nations ASEAN The ASEAN Free Trade Area AFTA Australia New Zealand Closer Economic Relations Trade Agreement ANZCERTA