regional trade blocks

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 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 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


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


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


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


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


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


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


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


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


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


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


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


EUROPEAN UNIONObjectivesPromote and Expand Cooperation Economics Trade Social Issues Foreign Policy Security Defence Judicial Matters


EUROPEAN UNION

Objectives Common Commercial Policy Reducing Economic Differences Between

Richer and Poorer Members Stabilising Currencies of Its Members


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


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


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%


EUROPEAN UNION

Trade Policy Progressive Liberalisation of TradeLeading to Gradual Opening of Markets Free Access to External Markets Fair Competition Respect of WTO Commitments


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


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


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


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


ASEAN

Formation August 8, 1967, Signed at Bangkok Signatories

Thailand

Indonesia

Malaysia

Singapore

Philippines


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


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


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


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


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


ASEAN

Trade Opportunities in ASEAN Countries Tourism Open Sky Policy Indian Film Industry BPO Other Areas Like Auto Parts, Natural Resources

regional trade blocks

Documents