REGIONAL

TRADING BLOCKS

Regional Trade Blocks

Regional trade blocs are
intergovernmental associations that
manage and promote trade activities for
specific regions of the world.

REGIONAL TRADING BLOCKS

Association of nations at a governmental level
to promote trade within the block and defend its
members against global competition.
Defense against global competition is obtained
through established tariffs on goods produced
by member states, import quotas, government
subsidies, heavy bureaucratic import processes,
and technical and other non-tariff barriers.

4 MAJOR
REGIONAL TRADING BLOCKS
1. EU (EUROPEAN UNION)
2. ASEAN (Association of Southeast Asian Nations)
3. MERCOSUR (Mercado Comun del Cono Sul Southern Cone Common Market)
4. NAFTA (North American Free Trade Agreement)

ASEAN (Association of Southeast Asian

Nations)

 Established on August 8, 1967, in Bangkok.

Member States: Brunei Darussalam, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand, and Vietnam.
Goals:
Accelerate economic growth, social progress and
cultural development in the region
Promote regional peace and stability and adhere to
United Nations Charter.

Important Indicators:

Population approximately 584 million;

GDP US$1.506 trillion;
Total Trade US$1.710 trillion (2008).

EU (EUROPEAN UNION)

 Founded in 1951 by six neighboring states as the European

Coal and Steel Community (ECSC).
Evolved into the European Economic Community, then the
European Community and, in 1992, was finally transformed
into the European Union.
Regional block with the largest number of members states
27.
These include Austria, Belgium, Bulgaria, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Poland, Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden, The Netherlands, and the United
Kingdom.

 Population estimated at 499.7 million in

January 2009.
GDP (PPP) estimated at US$15.247 trillion.

European Union
Objectives: Setting up a common market
Continuous & balanced expansion
Closer relations between the member
states.

ACTIVITIES OF EU
Elimination of custom duties, quantitative
restrictions with regard to export & imports.
Establishment of a common custom tariff &
commercial policy.
Abolition of all obstacles for movement of
persons, services & capital.
Application of programs in order to coordinate
the economic policies.

MERCOSUR (Mercado Comun del Cono

Sul - Southern Cone Common Market)

 Established on 26 March 1991.

Members include Argentina, Brazil, Paraguay, Uruguay,
and Venezuela.
Associate members include Bolivia, Chile, Colombia,
Ecuador, and Peru.
Goals:
Integration of member states for acceleration of sustained
economic development based on social justice,
environmental protection, and combating poverty.
Population: More than 273 million people
GDP (PPP) of more than US$2.774 trillion

NAFTA (North American Free Trade

Agreement)

 Agreement signed on 1 January 1994.

Members: Canada, Mexico, and the United States of
America.
Goals: Eliminate trade barriers among member states,
promote conditions for free trade, increase investment
opportunities, and protect intellectual property rights.
Population of over 445 million.
GDP (PPP) US$16.2 trillion (NaftaNow 2007 est.)

Provisions of NAFTA
Duty-free market access.
Trade rules- safeguard, subsidies,
countervailing & antidumping duties,
health & safety standards.
Rules on trade in services & investment
Protection of intellectual property.
Dispute settlement mechanism.

Other regional trade blocks, regional economic

partnerships and free trade associations
ANDEAN (Andean Community Countries) Bolivia, Colombia,
Ecuador, and Peru.
Associate Members: Argentina, Brazil, Chile, Paraguay, and Uruguay.
Observer Countries: Mexico and Panama.
BSEC (Organization of the Black Sea Economic Cooperation)
Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Hellenic Republic,
Moldova, Romania, Russian Federation, Serbia, Turkey, and Ukraine.
CARICOM (Caribbean Community) Antigua & Barbuda, The
Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica,
Montserrat, Saint Kitts & Nevis, Saint Lucia, Saint Vincent & The
Grenadines, Surinam, and Trinidad & Tobago.

CIS (Commonwealth of Independent States)

Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz,
Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan.
COMESA (Common Market for Eastern and Southern Africa)
Burundi, Comoros, Democratic Republic of the Congo, Djibouti,
Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi,
Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda,
Zambia,
Zimbabwe.
ECOWAS (Economic Community of West African States)
Benin, Burkina Faso, Cape Verde, The Gambia, Ghana, Guinea,
Guinea Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal,
Sierra Leone, and Togo.

GCC (Gulf Cooperation Council) Bahrain, Kuwait,

Oman, Qatar, Saudi Arabia, and the United Arab
Emirates (UAE)
MEFTA (Middle East Free Trade Area)
Countries which have signed Free Trade Agreements
(FTAs), Trade and Investment Framework Agreements
(TIFAs), or receive active U.S. support for WTO
accession include Algeria, Bahrain, Egypt, Iraq, Israel,
Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar,
Saudi Arabia, Tunisia, United Arab Emirates, and
Yemen.

SAARC (South Asian Association for Regional

Cooperation)
Afghanistan, Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan, and Sri Lanka.
SADC (Southern Africa Development
Community)
Angola, Botswana, Democratic Republic of
Congo, Lesotho, Madagascar, Malawi, Mauritius,
Mozambique, Namibia, Seychelles, South Africa,
Swaziland, Tanzania, Zambia, and Zimbabwe.
EFTA (European Free Trade Association)
Iceland, Liechtenstein, Norway, and Switzerland.