18-01-2013, 10:34 AM
REGIONAL TRADE BLOCK
REGIONAL.doc (Size: 41 KB / Downloads: 26)
INTRODUCTION:
Regional trade blocks are associations 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, onerous bureaucratic import processes, and technical and other non-tariff barriers.
since trade is not an isolated activity, member status with in regional block also cooperate in economic, political, security, climatic and other issues affecting the region.
In terms of their size and trade value, there are four major trade blocks and a larger number of blocks of regional importance.
A trade bloc is a large free trade area formed by one or more tax, tariff and trade agreements. Typically trade pacts that define such a bloc specify formal adjudication bodies, e.g., North American Free Trade Agreement (NAFTA) trade panels. This may include even a more democratic and participative system, as the European Union (EU) and its parliament.