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BY:-

SUMAN KUMAR SINGH


RAHUL RANJAN SINGH
PRAVEEN KUMAR SINGH
GIRISH SHARMA
Definition :
Regional trade blocks are intergovernmental
associations that manage and promote trade
activities for specific regions of the world

They have political as well as political


implications for example the European union ,
the worlds largest trading block has harbored
political ambitions. The Maastricht treaty which
gave birth to EU calls for joint policies in regard
to military , defense, and citizenship
MAJOR TRADE BLOCKS
 1) EUROPEAN UNION (EU)
 2) NORTH AMERICAN FREE TRADE
AGREEMENT (NAFTA)
 3)SINGAPORE –AMERICAN FREE TRADE
AGREEMENT(SAFTA)
 4) ORGANISATION OF PETROLEUM EXPORTING
COUNTRIES (OPEC)
 5) ASSOCIATION OF SOUTH EAST ASIAN
NATION (ASEAN)
 6) SOUTH ASIAN ASSOCIATION OF REGIONAL
CO-OPERATION (SAARC)
DEBATE ON TRADING BLOCKS
 THERE ARE TWO VIEWS :
 1)ANALYST LIKE PREEG ARGUE THAT
TRADE BLOCS ARE DESIRABLE BECAUSE
THEY COMPLIMENT GLOBAL TRADE.
 2)OTHER ANALYST ARGUE THAT TRADE
BLOCS ARE NOT DESIRABLE BECAUSE
THEY ARE THREAT TO FREE TRADE AND
NEED TO PROTECTIONISM
WHY TRADE BLOCS ARE
DESIRABLE

 TRADE BLOCS COMPLIMENT GLOBAL


TRADE
 THEY PROTECT INTRA REGIONAL
TRADE FORM OUTSIDE FORCES.
 THEY ESTABLISH REGIONAL
SECURITY.
WHY T. B. ARE UNDESIRABLE
 IMPORT QUOTAS(LIMITING THE AMOUNT OF
IMPORTS INTO THE COUNTRY SO THAT
DOMESTIC CONSUMERS BUY PRODUCTS MADE
BY THEIR COUNTRIES IN THEIR REGION).
 CUSTOM DELAYS (ESTABLISHING
BUREAUCRATIC FORMALITIES THAT SLOW
DOWN TRADE FROM THE OTHER REGION)
 SUBSIDIES BARRIER (GIVING HEAVY
SUBSIDIES TO PROTECT REGIONAL TRADE )
 VOLUNTRY BOYCOTTS AND TECHNICAL
BARRIERS.
The Organization of the Petroleum
Exporting Countries (OPEC)
 History:
 The Organization of the Petroleum
Exporting Countries (OPEC) is a
permanent, intergovernmental
Organization, created at the Baghdad
Conference on September 10–14,
1960.

 Functions:
 The OPEC MCs coordinate their
oil production policies in order to
help stabilise the oil market and
to help oil producers achieve a
reasonable rate of return on their
investments. This policy is also
designed to ensure that oil
consumers continue to receive
stable supplies of oil.
 OPEC FUND: The OPEC Fund for
International Development is a
multilateral development finance
institution. It was established in
January 1976, by the member
countries of the Organization of
the Petroleum Exporting
Countries.
OPEC Secretariat
 The Secretariat carries out the executive
functions of the Organization in
accordance with the provisions of the
OPEC Statute and under the direction of
the Board of Governors
 Members: Algeria, Angola, Indonesia,
Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, UAE, Venezuela.
The Organization of the Petroleum
Exporting Countries (OPEC)
 IT’S A PERMANENT ORGANIZATION ESTABLISHED IN
1960 AT THE BAGHDAD CONFERENCE BY IRAN IRAQ,
KUWAIT, SAUDI ARABIA, AND VENEZUELA.
 IT WAS LATER JOINED 8 OTHER MEMBERS.
 ITS HEAD QUARTER IS IN VIENNA.
 ITS OBJECTIVE IS TO COORDINATE AND UNIFY
PETROLEUM POLICIES AMONGS THE MEMBER
COUNTRIES
 TO SECURE FAIR AND STABLE PRICES FOR
PETROLEUM PRODUCERS.
 PROPER PRICE AND REGULAR SUPPLY OF PETROLEUM
FOR CONSUMING NATIONS.
ASEAN
www.aseansec.org
 ESTABLISHED IN 1967 .
 5 FOUNDING MEMBERS : INDONESIA , MALAYASIA,
PHILLIPINES, SINGAPORE AND THILAND.
 LATER ON JOINED BY BRUNEI, MYANMAR,VIETNAM
ETC.
 ASEAN FREE TRADE AREA (AFTA) .
 ASEAN BEYOND TRADE HAS POLITICAL ROLE AS
VISIBLE BY THE FORMATION OF ASEAN REGIONAL
FORUM OF WHICH CHINA, INDIA AND USA ARE
MEMBERS.
 ASEAN AS A TRADING BLOC HAS BEEN A HUGE
SUCCESS LEADING TO PROSPERITY AND
ELIMINATION OF POVERTY IN THE MEMBER COUNTRY
 
 
                                                                                                                                                                 

    SAARC                                         


                                                          
                                            
SAARC (SOUTH ASIAN ASSOCIATION FOR
REGIONAL COOPERATION)
 
                                                                                                                                                                 

    SAARC                                         


                                                          
                                            
 The South Asian Association for Regional
Cooperation (SAARC) was established when
its Charter was formally adopted on
December 8, 1985 by the Heads of State or
Government of Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan and Sri Lanka.
 SAARC provides a platform for the peoples
of South Asia to work together in a spirit of
friendship, trust and understanding. It aims
to accelerate the process of economic and
social development in Member States.
AREAS OF COOPERATION
 Agriculture and Rural Development;
 Health and Population Activities;
 Women, Youth and Children;
 Environment and Forestry;
 Science and Technology and Meteorology;
 Human Resources Development; and
 Transport.
 Recently, high level Working Groups have also been
established to strengthen cooperation in the areas of
Information and Communications Technology,
Biotechnology, Intellectual Property Rights, Tourism,
and Energy.
The SAARC Secretariat
 The SAARC Secretariat was established in Kathmandu
on 16 January 1987. Its role is to coordinate and
monitor the implementation of SAARC activities,
service the meetings of the Association and serve as
the channel of communication between SAARC and
other international organisations. The Secretariat has
also been increasingly utilised as the venue for SAARC
meetings.
 The Secretariat comprises the Secretary General,
seven Directors and the General Services Staff. The
details of its officials and working divisions responsible
for areas of work can be viewed under respective
links.
The SAARC Secretariat
Established Centres

 1.SAARC Agricultural Information Centre (SAIC),


Dhaka
 2.SAARC Meteorological Research Centre (SMRC),
Dhaka
 3.SAARC Tuberculosis Centre (STC), Kathmandu
 4.SAARC Documentation Centre (SDC), New Delhi
 5.SAARC Human Resources Development Centre
(SHRDC), Islamabad
 6.SAARC Coastal Zone Management Centre, Maldives
 7.SAARC Information Centre, Nepal
 8.SAARC Energy Centre, Pakistan
 9.SAARC Disaster Management Centre, India 
North American Free
Trade Agreement

 The North American Free Trade Area is


the trade bloc in North America created by
the North American Free Trade Agreement
(NAFTA) and its two supplements.
 North American Agreement on
Environmental Cooperation (NAAEC)
and the
 North American Agreement on Labor
Cooperation (NAALC), whose members
are Canada, Mexico and the United States.
It came into effect on 1 January 1994.
NAFTA
 BORN IN JANUARY 1994.
 MEMBER NATIONS:US,CANADA AND
MEXICO.
 it’s the WORLD LARGEST FREE TRADE
AREA.
 UNDER NAFTA, ALL NON TARIFF BARRIERS
TO AGRICULTURE WERE ELIMINATED.
 MANY TARRIFFS ARE BEING ELIMINATED
OVER A PEROID OF 5-15 YRS.
NAFTA
 TWO WAY TRADE BETWEEN US & MEXICO
HAS INCREASED BY MORE THAN 55%.
($11.6 BILLION).
 TWO WAY TRADE BETWEEN US &CANADA
INCREASED MORE THAN 50%(16.3
BILLION.)
 HUGE BENEFITS HAVE ACCRUED TO THE
NAFTA MEMBER COUNTRIES.
 NAFTA HAS BEEN A ROARING SUCCESSS.
EU
 IT IS A FAMILY OF DEMOCRATRIC
EUROPEAN COUNTRIES.
 COMMITED TO WORKING TOGETHER FOR
PEACE AND PROSPERITY.
 ITS HISTORICAL ROOTSLIE IN THE
SECOND WORLD WAR.
 IDEA OF EUROPEAN INTEGRATION WAS
CONCEIVED TO PREVENT SUCH KILLING
AND DESTRUCTION FROM EVER
HAPPENING AGAIN.
EU
 Member states of the EU:
 Austria, Belgium, Bulgaria, Cyprus,
Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta,
Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Sweden,
United Kingdom
The Euro: Our Currency
 The euro is the currency of 13 European
Union countries: Belgium, Germany,
Greece, Spain, France, Ireland, Italy,
Luxembourg, the Netherlands, Austria,
Portugal, Slovenia and Finland.
 Euro banknotes and coins have been in
circulation since 1 January 2002 and are
now a part of daily life for 315 million
Europeans living in the euro area
 The Eurosystem, which consist of
the  European Central Bank (ECB)
and the national central banks of
the 13 countries belonging to the
euro area, has the exclusive right to
issue euro banknotes. All decisions on
the designs, the denominations, etc.
of the euro banknotes are taken by
the ECB.
The conduct of monetary policy
 The Eurosystem is in charge of defining
and implementing the monetary policy of
the euro area. Its primary objective in this
respect is to maintain price stability in the
euro area. It furthermore conducts foreign-
exchange operations (consistent with the
exchange-rate policy defined by the
Council), holds and manages the official
foreign reserves of the euro-area Member
States and promotes the smooth operation
of payment systems
Origins of the euro: Early days of the European Union

 19 September 1950: European


Payments Union (EPU)
 18 April 1951: European Coal and
Steel Community established
 25 March 1957: Treaty of Rome
 29 December 1958: European
Monetary Agreement
FIVE EU INSTITUTIONS
 EUROPEAN PARLIAMENT.(ELECTED BY
PEOPLES OF MEMBER STATES)
 COUNCIL OF EUROPEAN
UNION(REPRESENTING THE
GOVERNMENTS OF MEMBER STATES).
 EUROPEAN COMMISION(DRIVING FORCE
AND THE EXECUTIVE BODY).
 COURT OF JUSTICE.
 COURT OF AUDITORS.
 THE RULE OF LAW IS FUNDAMENTAL TO THE
EUROPERAN UNION.ALL EU DECISIONS ARE BASED
ON TREATIES.,WHICH ARE AGREED BY ALL EU
CONTRIES.
 EU CONSISTED OF JUST 6 COUNTRIES:
BELGIUM,GERMANY,FRANCE,ITALY,LUXEMBOURG &
NETHERLANDS.
 FURTHER ADDITIONS HAVE BEEN REAPEATEDLY
TAKEN PLACE.
 LAST INCREASE TOOK PLACE IN 2004,WITH 10 NEW
COUNTRIES JOINING IN.
ACHIEVEMENTS
 IT HAS ENSURE FREEDOM,SECURITY & JUSTICE.
 JOB CREATION.
 REGIONAL DEVELOPMENT & ENVIRONMENTAL
PROTECTION.
 IT HAS HELPED RAISED LIVING STANDARDS,BUILT A
SINGLE EUROPE WIDE MARKET.
 LAUNCHED THE SINGLE EUROPEAN CURRENCY- THE
EURO.
 IT HAS STRENGTHNED EUROPES VOICE IN THE
WORLD.
Learnings
WHY ASEAN IS SUCCESSFUL AND SAARC HAS BEEN
UNSUCCESSFUL.
o ASEAN IS ONE OF THE MAJOR TRADING BLOCS IN
THE WORLD
o IT REPRESENTS 420 MILLION PEOPLE.
o It's a LARGER TRADE BLOCK THAN NORTH AMERICA
AND WESTERN EUROPE.
o SAARC REPRESENTS 22% OF HUMANITY.
o THERE IS A CONTRADICTION, AN IRONY BETWEEN
ASEAN & SAARC.
o WHILE ASEAN HAS BEEN A ROARING SUCCESS &
CALLED ASIAN TIGERS ,SAARC HAS BEEN A SHEER
FAILURE.
REASONS
 IN ASEAN ALL COUNTRIES ARE OF EQUAL
GEOGRAPHIC SIZE.
 LEVEL OF ECONOMIC DEVELOPMENT IS THE SAME IN
ALL COUNTRIES.
 COMMON FEAR OF COMMUNIST CHINA
 ALL OF THEM HAD SIMILAR ECONOMIC
POLICIES.THEY ALL INTRODUCED ECONOMIC
LIBERALIZATION IN 1960s WHICH FURTHER
ACCLERATED ECONOMIC GROWTH.
 WAY OF FUNCTIONING OF ASEAN BASED ON TWO
PRINCIPLES:
1.MUSYAURARAH(CONSENSUS).
2.MUFAKAT(CONSULATATIONS).
 INDIAs TRADE WITH ASEAN IS MORE THAN 20 TIMES THAN
IN CASE OF SAARC.
 IN SOUTH ASIA INDIA IS THE LARGEST COUNTRY.IT
OCCUPIES MORE THAN 70% OF GEOGRAPHICAL AREA.
 SO OTHER NATIONS FEEL THAT STRENGTHENING SAARC
MEANS EMPOWERING INDIA.
 SERIOUS BILATERAL DISPUTES BETWEEN TWO MAJOR
SOUTH ASIAN POWERS i.e INDIA & PAKISTAN.
BILATERAL DISPUTES AND DIFFERENCES BETWEEN OTHER
MEMBER COUNTRIES.
 INDIA,BANGLADESH DISPUTE.
 INDIA ,NEPAL DISPUTE.
 NEPAL MYNMAR DISPUTE.
 PAKISTAN BANGLADESH DISPUTE.
 VAST DIFFERENCE IN ECONOMIC
DEVELOPMENT..
 INDIA IS A DEVELOPED ECONOMY OF
SOUTH ASIA .OTHER CONTRIES ARE
LESS DEVELOPED.
 PURCHASING POWER OF T HESE
CONTRIES IS VERY LOW.THEY
CANNOT ACT EVEN AS A MARKET OF
INDIAN GOODS.

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