Trade bloc
A trade bloc is a large free trade zone or near-free trade zone formed by one or more tax, tariff and trade agreements. Typically trade pacts that define such a bloc specify formal adjudication bodies, e.g. NAFTA trade panels. This may include even a parliament, as in the EU.George Orwell predicted that trade blocs would evolve into continent-spanning empires with ever-changing alliances. The eastward expansion of the EU and use of the Euro, southern expansion of NAFTA into the FTAA, and increasing co-operation in Asia would seem to validate this prediction.
Particularly since the demise of most of the world's empires, a number of international—generally regionally based—economic blocs have been developed to promote trade between member states.
Several blocs also have stated or implicit political goals—notably the EU. Varieties of economic blocs include free trade areas, customs unions, single markets, and economic and monetary unions.
One of the first economic blocs was the German Customs Union (Zollverein) initiated by Bismarck in the 19th century.
| Table of contents |
|
2 See Also |
List of international trade blocs
- Andean Community (CAN)
- Asia-Pacific Economic Cooperation (APEC)
- Association of Southeast Asian Nations Free Trade Area (AFTA)
- Caribbean Community and Common Market (CARICOM)
- East African Economic Community (EAEC)
- Economic Community of West African States (ECOWAS)
- European Economic Area (EEA)
- European Free Trade Association (EFTA)
- European Union (EU), formerly the European Community
- Mercado Comun del Sur (MERCOSUR or MERCOSUL)
- Mercado Comun Centro Americano (MCCA)
- South Asia Association for Regional Cooperation (SAARC)
- Southern African Development Community (SADC)
Proposed
- Free Trade Area of the Americas (FTAA)
- South Asia Free Trade Agreement (SAFTA)
