DIFFERENT TRADE BLOCKS EUROPEAN UNION Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,

Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom OPEC MEMBER COUNTRIES Austria, Australia, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, New Zealand, Netherlands, Norway, Poland, Portugal, Republic of Korea, Slovak Republic, Sweden, Switzerland, Turkey, United Kingdom, United States of America COMMONWEALTH MEMBER COUNTRIES Antigua and Barbuda, Australia, The Bahamas, Bangladesh, Barbados, Belize, Botswana, Brunei Darussalam, Cameroon, Canada, Cyprus, Dominica, Fiji Islands, The Gambia, Ghana, Grenada, Guyana, India, Jamaica, Kenya, Kiribati, Lesotho, Malawi, Malaysia Maldives, Malta, Mauritius, Mozambique, Namibia, Nauru, New Zealand, Nigeria, Pakistan, Papua New Guinea, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Samoa, Seychelles, Sierra Leone, Singapore, Solomon Islands, South Africa, Sri Lanka, Swaziland, Tonga, Trinidad and Tobago, Tuvalu, Uganda, United Kingdom, United Republic of Tanzania, Vanuatu, Zambia NATO MEMBER COUNTRIES Belgium, Bulgaria, Czech Republic, Canada, Denmark, Estonia, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, uxembourg, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Turkey, United Kingdom, United States of America SAARC MEMBER COUNTRIES Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka OPEC MEMBER COUNTRIES Founder Member: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela Full member: Qatar, Libya, Indonesia, United Arab Emirates, Algeria and Nigeria Associate member: Gabon EFTA MEMBER COUNTRIES Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Switzerland, United Kingdom

APEC MEMBER COUNTRIES Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States of America, Vietnam ASEAN MEMBER COUNTRIES Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam NAFTA MEMBER COUNTRIES Canada, Mexico, United States of America ANDEAN COMMUNITY Bolivia, Colombia, Ecuador, Peru, Venezuela CARRIBEAN COMMUNITY Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago MERCOSUR / MERCOSUL COUNTRIES Argentina, Brazil, Paraguay, Uruguay SADC MEMBER COUNTRIES Angola, Botswana, DR Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe COMMONWEALTH OF INDEPENDENT STATES Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan BALTIC STATES, FORMERLY PART OF THE SOVIET UNION: Estonia, Latvia, Lithuania PACIFIC COMMUNITY / COMMUNAUT DU PACIFIQUE American Samoa, Australia, Cook Islands, Fiji, France, French Polynesia, Guam, Kiribati, Marshall Islands, Micronesia, Nauru, New Caledonia, New Zealand, Niue, Northern Mariana, Palau, Papua New Guinea, Pitcairn islands Samoa, Solomon islands, Tokelau, Tonga, Tuvalu, UK, USA, Vanuatu, Wallis and Futuna GULF COOPERATION COUNCIL MEMBER CONTRIES Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, U.A.E.

ECONOMIC COMMUNITY OF WESTERN AFRICAN STATES ECOWAS Benin, Burkina Faso, Cape Verde, The Gambia, Ghana, Guinea, Guinea Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, Togo http://www.ecowas.int COMESA MEMBER CONTRIES Angola, Burundi, Comoros, D.R.Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe http://www.comesa.int/

THE ROLE AND FUNCTION OF REGIONAL TRADE BLOCS What are regional trading blocs? Regional trade blocs are intergovernmental associations that manage and promote trade activities for specific regions of the world. Trade bloc activities have political as well as economic implications. For example, the European Union, the worlds largest trading block, has harbored political ambitions extending far beyond the free trading arrangements sought by other multistage regional economic organizations (Gibb and Michalak 1994: 75). Indeed, the ideological foundations that gave birth to the EU were based on ensuring development and maintaining international stability, i.e., the containment of communist expansion in post World War II Europe (Hunt 1989). The Maastricht Treaty which gave birth to the EU in 1992 included considerations for joint policies in regard to military defense and citizenship. The decisions reached by development policy makers on whether regionalism or globalized trade should be pursued may influence a countrys earnings from trade. Regionalism differs from globalization in the size and area of markets. From the perspective of developing countries skeptical of free trade, regional trade blocs offer some form of protection against an aggressive global market.

The European Union (EU) is a family of democratic European countries, committed to working together for peace and prosperity. It is not a State intended to replace existing States, nor is it just an organisation for international cooperation. The EU is, in fact, unique. Its member states have set up common institutions to which they delegate some of their sovereignty so that decisions on specific matters of joint interest can be made democratically at European level. The historical roots of the European Union lie in the Second World War. The idea was born because Europeans were determined to prevent such killing and destruction ever happening again. In the early years, the cooperation was between six countries and mainly about trade and the economy. Now the EU embraces 27 countries

and 490 million people, and it deals with a wide range of issues of direct importance for our everyday life. Europe is a continent with many different traditions and languages, but also with shared values such as democracy, freedom and social justice. The EU defends these values. It fosters cooperation among the peoples of Europe, promoting unity while preserving diversity and ensuring that decisions are taken as close as possible to the citizens. In the increasingly interdependent world of the 21st century, it is more necessary than ever for every European citizen to work together with people from other countries in a spirit of curiosity, openness and solidarity.

The North American Free Trade Agreement (NAFTA) eliminated the majority of tariffs on products traded among the United States, Canada

and Mexico, and gradually phases out other tariffs over a 10-year period. Restrictions were to be removed from many categories, including motor vehicles, computers, textiles, and agriculture. The treaty also protects intellectual property rights (patents, copyrights, and trademarks), and outlines the removal of investment restrictions among the three countries. The agreement is trilateral in nature (that is, the terms apply equally to all countries) in all areas except agriculture, in which stipulations, tariff reduction phase-out periods and protection of selected industries, were negotiated on a bilateral basis. Provisions regarding worker and environmental protection were added later as a result of supplemental agreements signed in 1992. NAFTA was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1988. NAFTA is a treaty under international law, though under United States law it is classed as a congressional-executive agreement rather than a treaty. What is the North American Free Trade Agreement? In January 1994, the United States, Mexico and Canada entered into the North American Free Trade Agreement (NAFTA), creating the largest free trade area and richest market in the world. The NAFTA is the most comprehensive regional trade agreement ever negotiated by the United States and is scheduled to be fully implemented by the year 2008. In 1996, U.S. two-way trade in goods under the NAFTA with Canada and Mexico stood at $420 billion--a 44 % increase since the NAFTA was signed.

What are some of the key goals of the NAFTA?

to reduce barriers to trade to increase cooperation for improving working conditions in North America to create an expanded and safe market for goods and services produced in North America to establish clear and mutually advantageous trade rules to help develop and expand world trade and provide a catalyst to broader international cooperation

Why should consumers care about the NAFTA?

U.S. consumers participate in international trade each day as they purchase goods and services that cross international borders. Therefore, they are affected daily by what they pay for the products and how safe they are. Trade is considered "free" or "open" when goods and services can move into markets without restrictions, and prices are determined by supply and demand. Nations sometimes erect barriers to this free movement of goods and services, such as quotas limiting the quantity of products imported, or non-tariff barriers, such as registration or labeling requirements, that create obstacles to selling foreign goods. These barriers can significantly increase the cost of the product.

Mercosur or is a Regional Trade Agreement (RTA) among Brazil, Argentina, Uruguay and Paraguay, founded in 1991 by the Treaty of Asuncin, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people, and currency. Mercosur/Mercosul origins trace back to 1985 when Presidents Ral Alfonsn of Argentina and Jos Sarney of Brazil signed the ArgentinaBrazil Integration and Economics Cooperation Program or PICE Bolivia, Chile, Colombia, Ecuador and Peru currently have associate member status. Venezuela signed a membership agreement on 17 June 2006, but before becoming a full member, its entry has to be ratified by the Paraguayan and the Brazilian parliaments. The organization has a South and Central American integration vocation. The founding of the Mercosur Parliament was agreed at the December 2004 presidential summit. It should have 18 representatives from each country by 2010 Some South Americans see Mercosur as giving the capability to combine resources to balance the activities of other global economic powers, especially the NAFTA and the European Union. The organization could also potentially pre-empt the Free Trade Area of the Americas (FTAA); however, over half of the current Mercosur member countries rejected the FTAA proposal at the IV Cumbre de las Amricas (IV Summit of the Americas) in Argentina in 2005. However, development of the Union of South American Nations seems to suggest that the countries of South America are not opposed to regional integration but merely wary of the United States-backed FTAA. The development of Mercosur was arguably weakened by the collapse of the Argentine economy in 2001 and it has still seen internal conflicts over trade policy, between Brazil and Argentina, Argentina and Uruguay, Paraguay and Brazil, etc. The free movement of individuals has been a matter of practical controversy,as Argentina unilaterally charges a 5 Pesos fee from Mercosur citizens going through the countryIn addition, many obstacles are to be addressed before the development of a common currency in Mercosur In December 2004 it signed a cooperation agreement with the Andean Community trade bloc (CAN) and they published a joint letter of intention for a future negotiations towards integrating all of South America. The prospect of increased political integration within the

organization, as per the European Union and advocated by some, is still uncertain. The bloc comprises a population of more than 263 million people, and the combined Gross Domestic Product of the member nations is in excess of 2.42 trillion dollars a year (PPP) according to World Bank numbers, making Mercosur the fifth largest economy in the World.

The Association of Southeast Asian Nations or ASEAN was established on 8 August 1967 in Bangkok by the five original Member Countries, namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam joined on 8 January 1984, Vietnam on 28 July 1995,

Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999. The ASEAN region has a population of about 500 million, a total area of 4.5 million square kilometers, a combined gross domestic product of almost US$ 700 billion, and a total trade of about US$ 850 billion.

OBJECTIVES The ASEAN Declaration states that the aims and purposes of the Association are: (1) to accelerate economic growth, social progress and cultural development in the region and (2) to promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter. The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of ASEAN, agreed on a shared vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. In 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established comprising three pillars, namely, ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. STRUCTURES AND MECHANISMS The highest decision-making organ of ASEAN is the Meeting of the ASEAN Heads of State and Government. The ASEAN Summit is convened every year. The ASEAN Ministerial Meeting (Foreign Ministers) is held annually. Ministerial meetings on the following sectors are also held regularly: agriculture and forestry, economics (trade), energy, environment, finance, health, information, investment, labour, law, regional haze, rural development and poverty alleviation, science and technology, social welfare, telecommunications, transnational crime, transportation, tourism, youth. Supporting these ministerial bodies are committees of senior officials, technical working groups and task forces.

To support the conduct of ASEANs external relations, ASEAN has established committees composed of heads of diplomatic missions in the following capitals: Beijing, Berlin, Brussels, Canberra, Geneva, Islamabad, London, Moscow, New Delhi, New York, Ottawa, Paris, Riyadh, Seoul, Tokyo, Washington D.C. and Wellington. The Secretary-General of ASEAN is appointed on merit and accorded ministerial status. The Secretary-General of ASEAN, who has a fiveyear term, is mandated to initiate, advise, coordinate, and implement ASEAN activities. The members of the professional staff of the ASEAN Secretariat are appointed on the principle of open recruitment and region-wide competition. ASEAN has several specialized bodies and arrangements promoting inter-governmental cooperation in various fields including the following: ASEAN Agricultural Development Planning Centre, ASEAN-EC Management Centre, ASEAN Centre for Energy, ASEAN Earthquake Information Centre, ASEAN Foundation, ASEAN Poultry Research and Training Centre, ASEAN Regional Centre for Biodiversity Conservation, ASEAN Rural Youth Development Centre, ASEAN Specialized Meteorological Centre, ASEAN Timber Technology Centre, ASEAN Tourism Information Centre, and the ASEAN University Network. In addition, ASEAN promotes dialogue and consultations with professional and business organisations with related aims and purposes, such as the ASEAN-Chambers of Commerce and Industry, ASEAN Business Forum, ASEAN Tourism Association, ASEAN Council on Petroleum, ASEAN Ports Association, Federation of ASEAN Shipowners, ASEAN Confederation of Employers, ASEAN Fisheries Federation, ASEAN Vegetable Oils Club, ASEAN Intellectual Property Association, and the ASEAN-Institutes for Strategic and International Studies. Furthermore, there are 58 Non-Governmental Organizations (NGOs), which have formal affiliations with ASEAN.

General debates on trade blocs The debates surrounding the feasibility of regionalism contain sharp disagreements. Gibb and Michalak note, the multilateral trading

system is in decline and regionalism is on the ascendancy (Gibb and Michalak 1994: 1). Although scholars such as OBrien (1992) and Hopkinson (1992) argue that globalization may usher in the end of geography, regionalism has emerged as an alternative form of trade that attempts to counter more aggressive policies of free trade, especially as espoused by the WTO. Some analysts such as Preeg (1989) argue that trade blocs are desirable because they complement globalized trade. Others view regionalism as a threat to free trade because trade blocs advocate and install protectionist policies that shield bloc members from the effects of free trade (Schott 1989). However, Gibb and Michalak remind us that theoretical analysis based on liberal economic principles is inconclusive in evaluating the impact of trading blocs on living standards, redistribution of income and welfare (1994: 32). Furthermore, they note, no overall consensus is likely to be reached in the foreseeable future[and] preferential trading arrangements may or may not bring welfare gains for participating counties (1994: 33). Regardless of the position taken on regionalism, the fact is very few countries develop and reduce inequality via regional trade alone. This is primarily due to the size of the market: globalization taps into a world market whereas trade blocs emphasize into regional markets, which are larger than the domestic market of a given country, but still smaller than the world market. Trade blocs have a range of reasons to protect the trade interests of their region: (1) To establish some form of regional control regarding trade that fulfills the interests of nations within that region; (2) To establish tariffs that protect intra-regional trade from outside forces; (3) To promote regional security and political concerns or to develop trade in such as way as to enhance the security in the region; (4) To promote South-to-South trade, e.g., between Africa and Asia, and between Latin American countries; (5) To promote economic and technical cooperation among developing countries (Malaysiaexports.com); They also use several measures to restrain global competition: (1) import quotas (limiting the amount of imports into the country so that domestic consumers buy products made by their countries in their region); (2) customs delays (establishing bureaucratic formalities that slow down the ability for the imported product from abroad to enter the domestic market;

(3) subsidies (government financial assistances toward sectors of the home economy so that they have an influx of capital); (4) boycotts and technical barriers; (5) bribes and voluntary restraints. Although the notion that the world is fragmenting into trade blocks is popular, what must be remembered is that there is not a clear definition of what a trade bloc is (Bliss 1994). Similarly, development and reduction in inequality has not been reduced by regionalism. Myanmar (formerly Burma) is a classic example: although a member of ASEAN since 1967, members of ASEAN--especially Thailand--have continued to conduct business with the oppressive military junta due to Myanmars abundant natural resources of teak, gems, and oil. Bliss appropriately cautions us on giving too much credit to trade blocs for development, noting that the efficacy of trade blocs depends upon the definition of a trade bloc which must also include an assessment of current political conditions of the region (1994:1).