What Is Economic Integration?

Economic integration is an agreement between countries,

which aims to reduce costs for both producers and consumers.
Its end goal is to remove barriers to the free flow of goods and
services so that member countries can share a common market
and harmonize their fiscal policies.
For example, the EU aims to establish an economic and
monetary union that uses the euro as its primary currency. It
also strives to enhance solidarity among member countries,
promote technological progress and achieve balanced
economic growth. According to its economic integration
policy, freedom, security and justice should have no internal
borders.
Countries that share a free trade area allow for the free flow of
goods, services, capital and labor. When several regions share
a common market, there are no restrictions on immigration
and cross-border investment. An economic union is
characterized by uniform monetary, taxation and
governmental policies. Economic integration in all its forms
aims to ensure peace and security among member countries,
while protecting their shared interests from external threats.
At the same time, it facilitates the exchange of goods and
increases labor mobility.
Advantages of Economic Cooperation
For businesses, international economic cooperation opens up
new opportunities. Companies can hire foreign workers more
easily, access funds from internal sources and trade goods at
lower costs.
Consumers benefit from economic integration, as well. They
can travel without the need for a visa or passport, relocate to
other state countries and more easily find work abroad. For
instance, EU citizens travel within the European Union using
their national ID cards instead of passports. They can also
apply to jobs in higher-paying EU countries without having to
obtain visa sponsorship. This translates into lower costs for
both employees and employers.
Another major advantage of economic integration is its ability
to increase peace and security. Member states benefit from
greater political cooperation, which results in more stability
and peaceful conflict resolution. Moreover, they can borrow
and raise funds directly in the international capital market,
which allows for faster economic growth.
Economic integration is heavily influenced by the political
climate. For example, the United Kingdom voted in 2016 to
leave the EU, which will impact British trade and
immigration. Those who voted for "Brexit," short for "British
Exit," feel having a separate economy will strengthen the U.K.
and allow for stronger immigration laws. Opponents feel that
leaving the EU will make economic trade more difficult.
The U.S. has also made significant changes to its historical
trade agreements with Mexico and Canada. The Trump
administration imposed tariffs on steel and aluminum from
Mexico and Canada early in 2018. In return, Mexico put
tariffs on U.S. steel and farm products In late 2018, Mexico,
Canada and the U.S. signed the new U.S. Mexico Canada
Agreement, which is designed to replace NAFTA. The new
agreement includes protections for workers' rights and the
environment.

Act East: India’s ASEAN Journey

India-ASEAN summit and the 18-nation East Asia

Summit. The focus will be on pitching this crucial
multi-layered relationship with this economically
renascent region, which is home to around 600
million people and accounts for $2.5 trillion GDP,
onto a higher trajectory.
Three Cs

Commerce, Culture and Connectivity are the three pillars of

India’s robust engagement with ASEAN. In the economic
arena, the India-ASEAN relations are poised to scale new
frontiers. The two sides are expected to sign an India-ASEAN
FTA in services and investments soon. This will complement
the FTA in goods which was signed five years ago in 2009
and has led to a quantum jump in bilateral trade, which is
hovering around $80 billion. The two sides are now confident
of scaling it up to $100 billion by 2015 and double that
volume by 2022. The two-way investments are on an
upswing: reached $32.4 billion.
, India-ASEAN relations are headed for a substantive upgrade
in both economic and strategic arenas. Looking ahead, the two
sides will be exchanging notes on the next steps in their
partnership in the form of the 2015-2020 action plan, which is
expected to be firmed up and unveiled at the India-ASEAN
summit next year. The strategic content of the relationship is
set to deepen in days to come as the two sides step up their
collaboration across a range of strategic issues, including
trans-national terrorism, maritime piracy and nuclear
proliferation. Against the backdrop of the churn in the South
China Sea, India has consistently pitched for freedom of
navigation and has pressed for the resolution of all maritime
territorial disputes in accordance with the UN Law of the
Seas.

Connectivity (Map of
Proposed India-Myanmar-
Thailand Highway)

Connectivity, physical,
institutional and mental,
remains the enduring agenda
of the India-ASEAN
engagement. India has been in the forefront of pushing a host
of trans-national projects that seek to weave the region
together in an intricate web of road, rail and maritime links.
Setting new benchmarks for this blossoming relationship,
India has set up an Indian mission to the ASEAN in Jakarta,
and has set up an ASEAN-India Centre which is housed in
New Delhi. Capacity-building, developmental cooperation,
and the burgeoning knowledge partnership are key facets of
what experts are calling India’s ‘Enhanced Look East’ policy.
Cultural Connect
While Commerce, Connectivity and Capacity-building
continue to propel the India-ASEAN relations to new
milestones, Culture and Creativity provide mental and
spiritual fodder to nurture this growing engagement.
Buddhism forms the spiritual nucleus of India-ASEAN
relations as Buddhists from all over the region flock for
pilgrimage to revered shrines like Bodh Gaya, the place where
Lord Buddha attained enlightenment under the Bodhi tree.