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Trade bloc

From Wikipedia, the free encyclopedia
Intergovernmental open trading group

Atrade bloc is a type ofintergovernmental agreement, often part of a regionalintergovernmental organization, wherebarriers to trade (tariffs andothers) are reduced or eliminated among the participating states.

Trade blocs can be stand-alone agreements between several states (such as theUSMCA) or part of aregional organization (such as theEuropean Union). Depending on the level ofeconomic integration, trade blocs can be classified aspreferential trading areas,free-trade areas,customs unions,common markets, oreconomic and monetary unions.[1]

Use

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Stages ofeconomic integration around the World (each country colored according to the most integrated multilateralagreement that it participates in):
  Economic and monetary union (ECCU/XCD,Eurozone/EUR,Switzerland–Liechtenstein/CHF)
  Common market (EEA–Switzerland)

Historic trading blocs include theHanseatic League, a Northern European economic alliance between the 12th and 17th centuries, and theGerman Customs Union, formed on the basis of theGerman Confederation and subsequently theGerman Empire from 1871. Surges of trade bloc formation occurred in the 1960s and 1970s, as well as in the 1990s after thecollapse of Communism. By 1997, more than 50% of all world commerce was conducted within regional trade blocs.[2]Economist Jeffrey J. Schott of thePeterson Institute for International Economics notes that members of successful trade blocs usually share four common traits: similar levels of per capitaGNP, geographic proximity, similar or compatible trading regimes, and political commitment to regional organization.[3]

Some advocates of globalfree trade are opposed to trading blocs. Trade blocs are seen by them to encourage regional free trade at the expense of global free trade.[4] Those who advocate for it claim that global free trade is in the interest of every country, as it would create more opportunities to turn local resources into goods and services that are both currently in demand and will be in demand in the future by consumers.[5] However, scholars and economists continue to debate whether regional trade blocs fragment the global economy or encourage the extension of the existing globalmultilateral trading system.[6][7]

Terminology

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Acommon market is seen as a stage of economic integration towards an economic union[8] or possibly towards the goal of a unified market.

Asingle market is a type of trade bloc in which most trade barriers have been removed (forgoods) with some common policies on product regulation, andfreedom of movement of thefactors of production (capital andlabour) and ofenterprise andservices.

Statistics

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This article needs to beupdated. The reason given is: newer GDP numbers needed. Please help update this article to reflect recent events or newly available information.(January 2023)
Selection of GDP PPP data (top 10 countries and blocs) in no particular order
Trade blocPopulationGross domestic product (USD)Members
20062007growthper capita
Economic and monetary unions
EMU324,879,19510,685,946,928,31012,225,304,229,68614.41%37,630
OECS (sovereign states)593,9053,752,679,5623,998,281,7316.54%6,732
OII504,47612,264,278,32914,165,953,20015.51%28,081
CCCM6,418,41739,616,485,62343,967,600,76510.98%6,850
Customs and monetary unions
CEMAC39,278,64551,265,460,68558,519,380,75514.15%1,490
UEMOA90,299,94550,395,629,49458,453,871,28315.99%647
Customs unions
CAN96,924,486281,269,141,372334,172,968,64818.81%3,448
EAC127,107,83849,882,030,44361,345,180,04122.98%483
EUCU574,602,74515,331,827,900,20217,679,376,474,71915.31%30,768
33
GCC36,154,528724,460,151,595802,641,302,47710.79%22,200
MERCOSUR271,304,9461,517,510,000,0001,886,817,000,00012.44%9,757
SACU58,000,0001,499,811,549,1871,848,337,158,28123.24%6,885
Preferential trade areas andFree trade areas
AANZFTA-ASEAN+32,085,858,84110,216,029,899,76411,323,947,181,80410.84%5,429
ALADI499,807,6622,823,198,095,1313,292,088,771,48016.61%6,587
12
AFTZ553,915,405643,541,709,413739,927,625,27314.98%1,336
APTA2,714,464,0274,868,614,302,7445,828,692,637,76419.72%2,147
CARIFORUM-EUCU-OCTs592,083,95015,437,771,092,52217,798,283,524,96115.29%30,060
CACM37,388,06387,209,524,88997,718,800,79412.05%2,614
CEFTA27,968,711110,263,802,023135,404,501,03122.80%4,841
CISFTA272,897,8341,271,909,586,0181,661,429,920,72130.62%6,088
DR-CAFTA-US356,964,47713,345,469,865,03714,008,686,684,0894.97%39,244
ECOWAS283,096,250215,999,071,943255,784,634,12818.42%904
EEA (EU +EFTA)499,620,52114,924,076,504,59217,186,876,431,70915.16%34,400
EFTA-SACU68,199,9911,021,509,931,9181,139,385,636,88811.54%16,707
9
EAEC207,033,9901,125,634,333,1171,465,256,182,49830.17%7,077
USMCA449,227,67215,337,094,304,21816,189,097,801,3185.56%36,038
TPP25,639,622401,810,366,865468,101,167,29416.50%18,257
SAARC1,567,187,3731,162,684,650,5441,428,392,756,31222.85%911
SPARTECA35,079,659918,557,785,0311,102,745,750,17220.05%31,435
Pacific Alliance218,649,1151,371,197,216,1401,525,825,175,04511.28%6,978
This list is based on the data obtained from United Nations Statistics Division.

Comparison between regional trade blocs

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Activities
Regional blocFree Trade AreaEconomic and monetary unionFreeTravelPolitical pactDefence pactOther
Customs unionSingle marketCurrency unionVisa-freeBorder-less
EUin forcein force7in force2in force1in forcein force
(Schengen1, 7,NPU andCTA1)		in forcein force
(CFSP/ESDP1)		ESA1, 7
EFTAin forcein force2, 7in forcein force1, 7in force1, 7ESA1, 7
CARICOMin forcein forcein force1in force1 and
proposed common		in force1proposedproposedNWFZ
AUECOWASin force1, 3in force1proposed[9][10]in force1 and
proposed for 20121 and
proposed common		in force1proposedproposedin forceNWFZ1
ECCASin force1African Continental Free Trade Agreement (AfCFTA)1in force1proposedin force1in forcein forceNWFZ1
EACin forcein forceproposed for 2020sproposed for 2024proposed?proposed for 2023NWFZ1
SADCin force1in force1proposed for 2015de factoin force1 and proposed common for 2016proposed[11]NWFZ1
COMESAin force1proposed for 2010?proposed for 2018NWFZ1
Commonin force1proposed for 2019proposed for 2023proposed for 2028proposed for 2028NWFZ1
Pacific Alliancein forcein forceNWFZ
USANMERCOSURin forcein forceproposed for 2015[12]in forceproposed for 2014[13]NWFZ
CANin forcein force1proposed1[14]in forceNWFZ
Commonproposed for 20144proposed for not after 2019proposed for 2019proposed for 2019in force[15]proposed for 2019proposedin forceNWFZ
EEUin forcein force1in forceProposed[16]in force[17]in force1
ALGCCin forcein force[18]proposedproposed1in forcein force
Commonin force1proposed for 2015proposed for 2020proposedproposed[19]
ASEANin force5proposed for 2015[20]proposed8[21]in force[22]proposed for 2015[23]proposed for 2020[24]NWFZ
CAISin force1proposed?in force1in force1proposedNWFZ
CEFTAin forceRCC7
USMCAin forcein force1, 7
SAARCin force1, 6proposedproposedin force9
PIFproposed for 20211NWFZ1

1 not all members participating
2 involvinggoods,services,telecommunications,transport (fullliberalisation ofrailways from 2012),energy (full liberalisation from 2007)
3telecommunications,transport andenergy - proposed
4 sensitive goods to be covered from 2019
5least developed members to join from 2012
6least developed members to join from 2017
7 Additionally some non member states also participate (theEuropean Union,EFTA have overlapping membership and various common initiatives regarding theEuropean integration).
8 Additionally some non member states also participate (ASEAN Plus Three)
9 Limited to "entitled persons" and duration of one year.

See also

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Lists of trade blocs

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References

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  1. ^Mansfield and Milner 2005, 333.
  2. ^Milner 2002, 450.
  3. ^Schott 1991, 2.
  4. ^O'Loughlin and Anselin 1996, 136.
  5. ^Lal, Deepak (1993)."Trade Blocs and Multilateral Free Trade"(PDF).Journal of Common Market Studies.31 (3):349–358.doi:10.1111/j.1468-5965.1993.tb00468.x.
  6. ^Milner 2002, 458.
  7. ^Mansfield and Milner 2005, 330.
  8. ^"Stages of Economic Integration: From Autarky to Economic Union".
  9. ^"WT/COMTD/N/11".wto.org. Archived fromthe original on 2009-03-25.
  10. ^"WT/COMTD/N/21".wto.org. Archived fromthe original on 2009-03-27.
  11. ^"Prensa Latina". Prensa Latina. February 3, 2007. Archived fromthe original on September 27, 2007.
  12. ^"WT/REG238/M/1".wto.org. Archived fromthe original on 2009-03-04.
  13. ^"Definidos critérios para o Parlamento do Mercosul". Senado Federal – Notícias. February 3, 2007.
  14. ^Twelfth Andean Presidential CouncilAct of LimaArchived 2010-07-07 at theWayback Machine
  15. ^"?". CNN. February 3, 2007.[dead link‍]
  16. ^"Russia, Kazakhstan, Belarus form Eurasian Economic Union".Washington Post. May 29, 2014. RetrievedJune 1, 2014.
  17. ^"Archived".www.itar-tass.com. Archived fromthe original on September 30, 2007.[dead link‍]
  18. ^"GCC customs union fully operational". The Peninsula. 2016-08-13. Archived fromthe original on 18 January 2015. Retrieved11 January 2015.
  19. ^Yemen Proposes Replacing Arab League With Arab Union,Agence France-Presse, 11 February 2004
  20. ^"Asean Trade Mins Meet To Speed Up Plans For Single Market". Malaysia Dual Lingual Business News. February 3, 2007. Archived fromthe original on 2007-09-28.
  21. ^"Envisioning a single Asian currency". International Herald Tribune. February 3, 2007.
  22. ^"ASEAN To Sign Accord On Visa-Free Travel". AHN – All Headline News. February 3, 2007. Archived fromthe original on 2007-09-26.
  23. ^"ASEAN Leaders Sign Five Agreements at the 12th ASEAN Summit, Cebu, the Philippines, 13 January 2007" (Press release). ASEAN Secretariat. 2007-01-13. Archived fromthe original on 2012-03-16. Retrieved2007-01-28.On the first day of the 12th ASEAN Summit, five Agreements have been signed by ASEAN leaders – reinforcing their commitment in the continuing integration of ASEAN and enhancing political, economic and social cooperation in the region.
  24. ^"ASEAN defense ministers aim for security community". ABS-CBN. February 3, 2007. Archived fromthe original on June 27, 2006.

Bibliography

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  • Mansfield, Edward D. and Helen V. Milner, "The New Wave of Regionalism" inDiehl, Paul F. (2005).The Politics of Global Governance: International Organizations in an Interdependent World. Boulder: Lynne Rienner Publishers.ISBN 978-1-55587-654-8.
  • Milner, Helen V., "International Trade" inCarlsnaes, Walter; Thomas Risse; Beth A. Simmons (2002).Handbook of International Relations. London:SAGE Publications.ISBN 978-0-7619-6304-2.
  • O'Loughlin, John; Luc Anselin (1996). "Geo-Economic Competition and Trade Bloc Formation: United States, German, and Japanese Exports, 1968–1992".Economic Geography.72 (2):131–160.doi:10.2307/144263.JSTOR 144263.
  • Schott, Jeffrey J. (1991). "Trading blocs and the world trading system".World Economy.14 (1):1–17.doi:10.1111/j.1467-9701.1991.tb00748.x.
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