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REGIONAL TRADE BLOCKS
REGIONAL INTEGRATIONFree Trade Area No Barriers To Trade of Goods and Services
Among Member Countries No Discrimination of Quota, Tariff, Subsidies
Among Member Countries Member Countries Can Decide Own Policies for
Non-member Countries Variable Tariffs By Each Member Country On
Same Products Imported From Non-member Countries
REGIONAL TRADE BLOCKS
REGIONAL INTEGRATION
Customs Union Step Towards Economic and Political Integration No Barriers To Trade of Goods and Services
Among Member Countries Common External Trade Policy Among Member
Countries Administrative Mechanism To Oversee Trade
Relations With Non-members
REGIONAL TRADE BLOCKS
REGIONAL INTEGRATIONCommon Market Similar To Customs Union No Barriers To Trade of Goods and Services
Among Common and Same External Trade Policy
Free Movement of Factors Like Labour and Capital
No Restrictions on Immigration and Capital Movements
REGIONAL TRADE BLOCKSREGIONAL INTEGRATIONEconomic Unions Closer Economic Integration and Cooperation Than
Common Market No Barriers To Trade of Goods and Services Among
Common and Same External Trade Policy and Free Movement of Factors Like Labour and Capital
Common Currency, Hormonisation of Tax Rates and Common Fiscal & Monetary Policy. A Step Towards Political Union
REGIONAL TRADE BLOCKS
NAFTA January 1994 USA, Canada, Mexico Worlds Largest Free Trade Area Increased Trade and Investments Tariff and Non-tariff Elimination Will Include South American Countries
REGIONAL TRADE BLOCKS
NAFTA
Pact to Eliminate Barriers for 10,000
Products for Trade Between Member Countries
Pact to Benefit Over 380 million Consumers Implementation Over a Period of 15 Years
REGIONAL TRADE BLOCKS
NAFTA
Goals Strengthen Bond of Friendship & Cooperation Catalyst for International Ccoperation Create, Expand and Secure Future Markets Establish Fair Rule of Trade Establish Predictable Framework for Business
Planning
REGIONAL TRADE BLOCKS
NAFTA
Main Characteristics & Benefits Increased Jobs and Demand for Local Products Expand Trade Liberalisation in the Region Elimination of Tariffs and Adjustment Period of
15 Years for Some Products IPR – Higher Levels of Protection GATT Principle of Non-discrimination
REGIONAL TRADE BLOCKS
NAFTA
Main Characteristics & Benefits US gained by Export of Agriculture Products Mexico Imported Worth $8.5 b in 2004 Canada Imported Worth $9.6 b and is Second
Largest Market for US Agriculture Products Incredible Flow of Trade and Investments in
Member Countries During First 10 Years
REGIONAL TRADE BLOCKS
NAFTA
India and NAFTA Countries USA – Largest Business Partner of India India – Preferred Destination for Auto Parts Canada – Imports Electronics and Software Mexico – Focused Destination, Fastest Growing
Country Proximity to Latin America and Member of
NAFTA
REGIONAL TRADE BLOCKS
NAFTA
NAFTA & WTO Regionalisation May Harm WTO Regionalisation Has Helped Mexico There are No Indications That Regionalisation is
Harmful For Economic Growth NAFTA is Complementary To WTO
REGIONAL TRADE BLOCKS
EUROPEAN UNIONPower Center in Global Economy Second Largest Economy 26.6% Share to Global GDP, US Share 32.5%,
Japan Share 12.2% Block of 25 Countries, Population over 450 m 31.1% Share to Merchandise Global Exports, US
Share 11.1% $3300 b Merchandise and $712 b Services in
2004
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Power Center in Global Economy Major Player in Capital Markets – Lending and
Investments Most Important Source of FDI in the World 48 Out of 100 Largest Assets Are In EU 70% Global M&A Are of EU MNCs Major Banking Activities in the East
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Vision The Most Competitive and Knowledge Based
Economy In The World By 2010Capable of Sustainable Economic Growth, With More and Better Jobs and Greater Social Cohesion
Lisbon Strategy 2002
REGIONAL TRADE BLOCKS
EUROPEAN UNIONBackground Headquarters in Brussels Established on Nov 1, 1993 Started As European Coal & Steel Community
in 1951 Became European Community in 1967 12 Members Signed Treaty of EU In 2004 – 25 Member Countries
REGIONAL TRADE BLOCKS
EUROPEAN UNIONObjectivesPromote and Expand Cooperation Economics Trade Social Issues Foreign Policy Security Defence Judicial Matters
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Objectives Common Commercial Policy Reducing Economic Differences Between
Richer and Poorer Members Stabilising Currencies of Its Members
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Beliefs Economic Motives Rests on Larger Markets
Leads To More Competition Greater Productivity & Higher Standards of
Living Economic Strength Is Basis For Political and
Military Power Reduction of Conflict Between The Nations
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Single Market and Common Commercial Policy Competition PolicyPrevent Price Fixing, Collusion and Abuse of Monopoly Free Movement of GoodsCustoms Union, Common Tariff For Imports From Non-
members Free Movements of PersonsWork and Live in Member Countries
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Single Market and Common Commercial Policy ServicesRight to Provide Services In Member Countries CapitalNo Restrictions on Movements of Capital TaxationVAT Not Less Than 15%
REGIONAL TRADE BLOCKS
EUROPEAN UNION
Trade Policy Progressive Liberalisation of TradeLeading to Gradual Opening of Markets Free Access to External Markets Fair Competition Respect of WTO Commitments
REGIONAL TRADE BLOCKS
EUROPEAN UNION
The Lisbon Agenda of EU – 2000 Sustain Economic Growth By Taking Advantage
of Common Market Opportunities & Reduction in Barriers
Promote Entrepreneurship in Energy, Transport, Postal, Financial Services By Reducing State Aid
Reduction in Administrative & Tax Burdens Education and Pension System Reforms
REGIONAL TRADE BLOCKS
EUROPEAN UNION
India and EU India recognised EU in 1962 EU is Largest Trading Partner and Source of FDI India is EU’s 17th Largest Supplier and 20th
Largest Export Destination, in Value Terms High Import Duty in India High Standards, a Barrier for Indian Exporters
REGIONAL TRADE BLOCKS
EUROPEAN UNION
India and EU – Bilateral Agreements Agreement on Sugarcane
Exports to EU, at Guaranteed Price Administrative Agreement on Textile Trade
Management of Quotas and Reduction in Tariff Cooperation Agreement
Agreement on Trade, Economic Cooperation, Environment, Agriculture, Tourism, IPR
REGIONAL TRADE BLOCKS
EUROPEAN UNION
India and EU – Bilateral Agreements Science and Technology Agreement
Covers Health, Agriculture and Natural Resources
Allows Access to Indian Researchers to EU’s Programme of Research and Technologigy Development
Customs Cooperation Agreement
Simplify Customs Procedures as per Intl. Standards
REGIONAL TRADE BLOCKS
ASEAN
Formation August 8, 1967, Signed at Bangkok Signatories
Thailand
Indonesia
Malaysia
Singapore
Philippines
REGIONAL TRADE BLOCKS
ASEAN
Objectives Accelerate Economic Growth, Social Progress
and Cultural Development Spirit of Equality and Partnership for Prosperity
in The Region Promote Peace and Stability, Respect to Other
Nations as per Charter of UN
REGIONAL TRADE BLOCKS
ASEAN
Declaration Collective Will of the Nations to Bind
Themselves Together in Friendship and Cooperation and Through Joint Efforts and Sacrifices. Secure for Their People and For Posterity the Blessings of Peace, Freedom and Prosperity
REGIONAL TRADE BLOCKS
ASEAN
Fundamental Principles
The Treaty of Amity and Cooperation in SE Asia
Signed on February 24, 1976 Mutual Respect for the Independence, Sovereignty,
Equality, Territorial Integrity and National Identity of All Nations
The Right of Every State to Lead Its National Existence Free From External Interference, Subversion or Coercion
REGIONAL TRADE BLOCKS
ASEAN
Fundamental Principles Non-interference in The Internal Affairs of Other
Member Nations Peaceful Settlements of Difference or Disputes Renunciation of The Use of Threats or Force Effective Cooperation Between Themselves
REGIONAL TRADE BLOCKS
ASEAN
Agreements With India Signed on October 8, 2003 Agreement to Create Indo ASEAN Free Trade
Area By 2011 Agreement to Counter Terrorism India Becoming Signatory To ASEAN Treaty of
Amity and Cooperation
REGIONAL TRADE BLOCKS
ASEAN
Trade Opportunities in ASEAN Countries Tourism Open Sky Policy Indian Film Industry BPO Other Areas Like Auto Parts, Natural Resources
REGIONAL TRADE BLOCKS
ASEAN
Trade Opportunities in ASEAN Countries Tourism Open Sky Policy Indian Film Industry BPO Other Areas Like Auto Parts, Natural Resources