Trade bloc

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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. NAFTA trade panels. This may include even a more democratic and participative system, as the EU and its parliament.

Particularly since the demise of most of the world's empires, a number of international— generally regionally based—economic blocs have been developed to promote trade between member states.

Several blocs also have stated or implicit political goals—notably the EU. Varieties of economic blocs include free trade areas, customs unions, single markets, and economic and monetary unions.

One of the first economic blocs was the German Customs Union (Zollverein) initiated in 1834, formed on the basis of the German Confederation and subsequently German Empire from 1871.

A trade bloc is established through a trade pact (or pacts) covering different issues of the economic integration.

Contents

[edit] Most active regional blocs

Most active regional blocs in the world.
Most active regional blocs in the world.

It is possible that a country is member of two (or more) different blocs. To avoid overlapping for this classification such countries are only included in the most active of the blocs in question. The "activity" of each block is measured by the following three criteria:

  • to have greater real practical achievements (not only declarations that are not followed by actual actions by its members)
  • to have more recent (or regular) activities (meetings, new agreements, other internal procedures)
  • to have more ambitious plans for future integration and a tighter timescale for it.

Also a country may be classified here as part of the less active regional bloc if the country itself is more active in it; Venezuela, for example, is a member of both the Andean Community and Mercosur. While Mercosur is a more active bloc than the Andean Community, Venezuela itself is much more active in the Andean Community than in Mercosur. Therefore Venezuela is assigned to the Andean Community for the purpose of this classification. (This is only an example. So, note, that Venezuela is planning to completely integrate with Mercosur by 2010).

Priority is given to such regional blocs that have ambitions for integration in more spheres than just economy (i.e. political, defense and other spheres). Sometimes activities are divided between different (but related) blocs with small deviations in membership (e.g. NATO and EU members are almost the same).

Some colors on the map are used multiple times for different blocs. A darker color means full member; a lighter color means associate state, observer state, prospective member, candidate, acceding state or a similar status.

Most active regional blocs
(as of 2004, except as noted)
Regional bloc1 Area Population GDP ($US) Member
states1
km² sq mi in millions (PPP) in millions (nominal) per capita (PPP) per capita (nominal)
AU 29,797,500 11,504,879 897,548,804 1,515,000 1,131,850 1,896 1,261 53
ASEAN (2007 est.) 4,497,493 1,736,000 566,500,000 3,115,480 1,173,000 5,541 2,041 10
CACM 422,614 163,172 37,816,598 159,536 84,792 4,219 2,242 5
CARICOM 462,344 178,512 14,565,083 64,219 24,020 4,409 1,649 (14+1)3
CCASG / GCC 2,285,844 882,569 35,869,438 536,223 717,800 14,949 20,011 6
CEFTA 298,148 115,116 28,929,682 222,041 122,001 7,675 4,217 (7+1)3
EU (2007 est.) 4,324,782 1,669,808 497,000,000 14,953,000 16,574,000 28,213 33,482 27
EurAsEC 20,789,100 8,026,720 208,067,618 1,689,137 1,125,528 8,118 5,409 6
EFTA (2007 est.) 529,600 204,480 12,660,623 567,500 743,300 44,828 60,000 4
GAFTA 9,421,946 3,637,834 280,727,416 1,341,298 N/A 4,778 N/A (16+1)3
GUAM 810,506 312,938 63,764,600 456,173 106,469 7,154 1,670 4
NAFTA (2007 est.) 21,783,850 8,410,792 445,000,000 15,857,000 15,723,000 35,491 35,564 3
PARTA 528,151 203,920 7,810,905 23,074 N/A 2,954 N/A (12+2)3
SAARC 5,136,740 1,983,306 1,467,255,669 4,074,031 N/A 2,777 N/A 8
Unasur / Unasul 17,339,153 6,694,684 370,158,470 2,868,430 N/A 7,749 N/A 12
UN and countries
for reference2		 Area Population GDP ($US) Units4
km² sq mi in millions (PPP) in millions (nominal) per capita (PPP) per capita (nominal)
UN 133,178,011 51,420,318 6,411,682,270 55,167,630 48,245,198 8,604 7,524 192
Brazil (2007 est.) 8,514,877 3,287,612 183,888,841 1,804,000 1,067,706 10,073 6,842 27
Canada (2007 est.) 9,984,670 3,855,103 33,000,000 1,274,000 1,406,000 38,200 42,738 13
India (2007 est.) 3,287,590 1,269,346 1,120,000,000 4,726,000 1,089,000 4,182 1,004 35
Japan (2007 est.) 377,873 145,898 127,433,494 4,346,000 4,346,000 33,800 38,341 47
PR China5 (2007 est.) 9,596,960 3,705,407 1,321,851,888 7,043,000 3,420,000 5,300 2,800 33
Russia (2007 est.) 17,075,200 6,592,772 142,500,000 2,076,000 1,286,000 14,600 9,056 83
USA (2007 est.) 9,826,630 3,794,083 302,000,000 13,543,000 13,794,700 43,500 45,594 50
Source: CIA World Factbook 2005, IMF WEO Database, IMF nominal figures for 2006.[citation needed]
Legend
     smallest value among the blocs compared     largest value among the blocs compared

Footnotes
1 Including data only for full and most active members.
2 Including the largest five countries by area, population (not #4), GDP (PPP) (not #5), and GDP (nominal) (not #3 or #5).
3 Including non-sovereign autonomous areas of other states.
4 Members or administrative divisions.
5 Data for the People's Republic of China does not include Hong Kong, Macau, or the independent Republic of China (Taiwan) (over which PRC claims sovereignty).

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[edit] List of regional blocs

[edit] European Economic Area (EEA)

[edit] Central European Free Trade Agreement (CEFTA)

[edit] Caribbean Community (CARICOM)

[edit] Union of South American Nations (Unasur/Unasul)

[edit] Economic Community of West African States (ECOWAS)

[edit] Economic and Monetary Community of Central Africa (CEMAC)

[edit] East African Community (EAC)

[edit] Southern African Customs Union (SACU)

[edit] Common Market for Eastern and Southern Africa (COMESA)

[edit] Greater Arab Free Trade Area (GAFTA)

[edit] North American Free Trade Agreement (NAFTA)

[edit] Association of Southeast Asian Nations (ASEAN)

[edit] South Asian Association for Regional Cooperation (SAARC)

[edit] GUAM Organization for Democracy and Economic Development


[edit] Eurasian Economic Community (EEC)

[edit] Pacific Regional Trade Agreement (PARTA or PIF)

[edit] Central American Common Market (CACM)

Cooperation in the framework of the bloc currently stalled and status in light of DR-CAFTA is unclear

[edit] African Economic Community (AEC)

Under the umbrella of the African Union it is expected that ECOWAS, CEMAC/ECCAS, SACU/SADC, COMESA/IGAD and EAC will join into a common African Economic Community in 2019.

[edit] Other states or entities

  • Americas:
    • Cuba: isolated because of U.S. embargo and political system. Possibility for CARICOM or CACM
    • Greenland (non-sovereign autonomous entity of Denmark): left the EU in 1985; status regarding FTA and customs union is unclear.
    • Panama: possibility for Unasur or CACM

[edit] Comparison between regional blocs

Activities
Regional bloc Free Trade Area Customs Union Economic and monetary union Free Travel Political pact Defence pact Other
Single Market Currency Union Visa-free Border-less
EEA EU in force 2 in force in force in force 1 in force in force
(Schengen 1 and CTA 1)		 in force in force
(NATO 1 and CFSP/ESDP 1)		 Euratom
EFTA in force in force 1 in force 1 in force 1 in force
(Schengen treaty 1)		 in force1
(EFTA Court EFTA Surveillance Authority)		 in force
(NATO 1)		 ESA 1, Euratom
Common in force1 in force1 in force1 in force1 in force
(Schengen treaty 1)		 in force
(NATO 1)		 Euratom
CEFTA in force in force in force in force
CARICOM in force in force in force 1 in force 1 and
proposed common		 in force 1 proposed proposed
Unasur/Unasul MERCOSUR in force in force in force proposed for 2014 [8]
CAN in force in force 1 in force
Common proposed for 2014 4 proposed for not after 2019 proposed for 2019 proposed for 2019 in force

[9]

 proposed for 2019
ECOWAS in force 1, 3 in force 1 in force 1 and
proposed for 2009 1 and
proposed common		 in force 1 proposed proposed in force
CEMAC in force in force proposed in force proposed in force
EAC in force in force proposed for 2009 proposed proposed for 2010
SACU in force in force proposed for 2012 de-facto in force 1 and proposed common for 2016 proposed [10]
COMESA in force 1 proposed for 2008 proposed for 2025
GAFTA Agadir in force
CCASG/GCC in force in force in force proposed for 2010
Common in force
NAFTA in force proposed proposed proposed in force
(NATO 1 Security and Prosperity Partnership of North America and NORAD)		 Commission for Environmental Cooperation
ASEAN in force 5 proposed for 2015 [11] proposed [12] in force [13] proposed for 2015 [14] proposed for 2020 [15]
SAARC in force 6 proposed proposed proposed
GUAM in force[16] proposed[16] proposed [16] proposed [16] proposed[17] proposed[18]
EurAsEC proposed proposed proposed in force [19] in force 1
PARTA in effect, proposed in force1 proposed proposed
CACM in effect7, proposed proposed proposed
AEC
(for reference)		 proposed for 2019 proposed for 2019 proposed for 2023 proposed for 2028 proposed for 2028

1 not all members participating yet
2 involving goods, services, telecommunications, transport (full liberalisation of railways from 2012), energy (full liberalisation from 2007)
3 telecommunications, transport and energy - proposed
4 sensitive goods to be covered from 2019
5 least developed members to join from 2012
6 least developed members to join from 2017
7 status is unclear

[edit] See also

  • The McGill Faculty of Law runs a Regional Trade Agreements Database that contains the text of almost all preferential and regional trade agreements in the world. ptas.mcgill.ca

[edit] Notes

 This article or section uses citations that are either broken or outdated.
This article or section uses citations that link to broken or outdated sources, and are deemed unreliable. Please improve the article or discuss this issue on the talk page. Help on using footnotes is available. This article has been tagged since December 2007.
  1. ^ "Timor Leste Keen To Be Asean Member In Five Years", Malaysian National News Agency - BERNAMA, Saturday, February 03 2007. 
  2. ^ "India, Bhutan's Big Question: China in SAARC", The Indian Express, Saturday, February 03 2007. 
  3. ^ Nepal, Bangladesh, Pakistan want China in SAARC - Irna
  4. ^ [1]
  5. ^ [2]
  6. ^ seeks further integration with ASEAN"Australia Seeks Free-Trade Accord, Asean Membership at Summit", Bloomberg, Saturday, January 13 2007. 
  7. ^ "Iran Considering to Join SAARC, Says Kharrazi", Arab News, Saturday, February 03 2007. 
  8. ^ "Definidos critérios para o Parlamento do Mercosul", Senado Federal - Notícias, Saturday, February 03 2007. 
  9. ^ "CNN", CNN, Saturday, February 03 2007. 
  10. ^ "Prensa Latina", Prensa Latina, Saturday, February 03 2007. 
  11. ^ "Asean Trade Mins Meet To Speed Up Plans For Single Market", Malaysia Dual Lingual Business News, Saturday, February 03 2007. 
  12. ^ "Envisioning a single Asian currency", International Herald Tribune, Saturday, February 03 2007. 
  13. ^ "ASEAN To Sign Accord On Visa-Free Travel", AHN - All Headline News, Saturday, February 03 2007. 
  14. ^ ASEAN Secretariat (2007-1-13). "ASEAN Leaders Sign Five Agreements at the 12th ASEAN Summit, Cebu, the Philippines, 13 January 2007". Press release. Retrieved on 2007-1-28. “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.”
  15. ^ "ASEAN defense ministers aim for security community", ABS-CBN, Saturday, February 03 2007. 
  16. ^ a b c d GUAM’s New Impetusunit. Civil Georgia (May 23, 2006). Retrieved on 2007-05-04.
  17. ^ Organizational structure of the GUAM. GUAM_Organization for Democracy and Economic Development. Retrieved on 2007-05-04.
  18. ^ Ukraine suggests setting up GUAM peacekeeping unit. Today.az (May 31, 2006). Retrieved on 2007-05-04.
  19. ^ "Itar-Tass", Itar-Tass, Saturday, February 03 2007. 

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