Trading Blocs And Trade Agreement

Trade blocs are relationships between countries generally located in the same region to facilitate free trade agreements. Trade blocs include the North American Free Trade Agreement (NAFTA), the Central American Free Trade Agreement (CAFTA), the Association of South Asian Nations (ASEAN), the European Union (EU), Mercado Comun del Sur (Mercosur) and the Southern African Development Community (SADC). Southeast Asia has experienced unprecedented and astonishing economic growth over the past three decades since the creation of ASEAN. In 1967, ASEAN`s total trade was $10 billion. In 2006, total trade reached $1.4 trillion. According to the Congressional Budget Office, since the end of World War II, there has been considerable support, particularly from the United States, to artificially reduce trade barriers and support greater liberalization of international trade. The General Agreement on Tariffs and Trade (GATT) was established shortly after The Second World War between 23 countries to facilitate and coordinate trade between nations. In addition to creating a more liberal trading environment, it also had provisions and charters for employment, commodity agreements, restrictive trade practices, international investment and services. The process of creating a free trade agreement followed a model of discussions, negotiations and, ultimately, erratic negotiations. The whole process is called “rounds” There were eight rounds in the GATT treaty. Despite many difficulties and differences between the countries concerned, GATT has achieved many things; Although some parties have never been fully ratified by all countries. Mercosur. Created in 1991 and updated in 1994, Mercosur – the free trade agreement between Uraguay, Paraguay, Brazil and Argentina – has hosted other nations, including Peru, Bolivia, Chile, Colombia, Ecuador and, in 2006, Venezuela.

These latter nations have only part of the trade agreement. Mercosur reduced tariffs for all Member States, but especially in 2005 for Colombia, which is now able to provide goods and services to more than 200 million people who would not have had access before Mercosur. It depends on where you export. There is much information available online on the UK`s free trade agreements, both inside and outside the EU. In addition, DIT is able to help UK exporters overcome trade barriers, so you can turn to them at any time for advice. An internal market is a kind of trading bloc in which most trade barriers (for goods) have been removed from trading blocs that could distort world trade and reduce the positive effects of specialisation and the exploitation of comparative advantages. The recent round of multilateral trade negotiations within the World Trade Organization continues, as more and more participants have their own views on what should be up to each country, including its own. The appeal of free trade agreements will remain high, as the benefits evolve with a changing global market – with the advent of the Internet and other technologies and English-speaking labour abroad, material goods are no longer content to be exchanged between countries.