Trade bloc

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v t e

A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.^[1]

Description

Stages of economic integration around the World:
(each country colored according to the most advanced agreement that it participates into.)

Economic and Monetary Union (CSME/EC$, EU/€)

Economic union (CSME, EU)

Customs and Monetary Union (CEMAC/franc, UEMOA/franc)

Common market (EEA, EFTA, CES)

Customs union (CAN, CUBKR, EAC, EUCU, MERCOSUR, SACU)

Multilateral Free Trade Area (AFTA, CEFTA, CISFTA, COMESA, GAFTA, GCC, NAFTA, SAFTA, SICA, TPP)

Historic economic blocs include the Hanseatic League, a trading alliance in northern Europe in existence between the 13th and 17th centuries and the German Customs Union (Zollverein) initiated in 1834, formed on the basis of the German Confederation and subsequently German Empire from 1871. Surges of trade bloc formation were seen in the 1960s and 1970s, as well as in the 1990s after the collapse of Communism. By 1997, more than 50% of all world commerce was conducted under regional trade blocs.^[2]

Economist Jeffrey J. Scott of the Peterson Institute for International Economics notes that members of successful trade blocs usually share four common traits: similar levels of per capita GNP, geographic proximity, similar or compatible trading regimes, and political commitment to regional organization.^[3]

Advocates of worldwide free trade are generally opposed to trading blocs, which, they argue, encourage regional as opposed to global free trade.^[4] Scholars and economists continue to debate whether regional trade blocs are leading to a more fragmented world economy or encouraging the extension of the existing global multilateral trading system.^[5]^[6]

Trade blocs can be stand-alone agreements between several states (such as the North American Free Trade Agreement (NAFTA) or part of a regional organization (such as the European Union). Depending on the level of economic integration, trade blocs can fall into different categories, such as:^[7] preferential trading areas, free trade areas, customs unions, common markets and economic and monetary unions.

Lists of trade blocs

Monetary unions.

Customs unions worldwide.

Regional trade blocs:

European Union (EU)

African Union (AU)

Union of South American Nations (UNASUR)

Caribbean Community (CARICOM)

Central American Integration System (SICA)

Arab League (AL)

European Free Trade Association (EFTA)

Eurasian Economic Community (EAEC)

Association of Southeast Asian Nations (ASEAN)

Central European Free Trade Agreement (CEFTA)

North American Free Trade Agreement (NAFTA)

South Asian Association for Regional Cooperation (SAARC)

Pacific Islands Forum (PIF)

List of preferential trade areas
List of free trade areas (bilateral, multilateral)
List of customs unions
List of common markets
List of economic unions
List of monetary unions
List of customs and monetary unions
List of economic and monetary unions

Statistics of trade blocs

*This list is based on the data obtained from United Nations Statistics Division.*
Trade bloc	Population	Gross domestic product (USD)				Members
Trade bloc	Population	2006	2007	growth	per capita	Members
Common markets, Economic and Monetary unions
EMU	324,879,195	10,685,946,928,310	12,225,304,229,686	14.41%	37,630	17 Austria Belgium Cyprus Estonia Finland France Germany Greece Ireland Italy Luxembourg Malta Netherlands Portugal Slovakia Slovenia Spain
OECS	593,905	3,752,679,562	3,998,281,731	6.54%	6,732	6 Antigua and Barbuda Dominica Grenada Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines
OII	504,476	12,264,278,329	14,165,953,200	15.51%	28,081	3 French Polynesia New Caledonia Wallis and Futuna
CCCM	6,418,417	39,616,485,623	43,967,600,765	10.98%	6,850	12 6 OECS members Barbados Belize Guyana Jamaica Suriname Trinidad and Tobago
EEA	499,620,521	14,924,076,504,592	17,186,876,431,709	15.16%	34,400	30 27 EU members Iceland Liechtenstein Norway
Customs and monetary unions
CEMAC	39,278,645	51,265,460,685	58,519,380,755	14.15%	1,490	6 Cameroon Central African Republic Chad Republic of the Congo Equatorial Guinea Gabon
UEMOA	90,299,945	50,395,629,494	58,453,871,283	15.99%	647	8 Benin Burkina Faso Ivory Coast Guinea-Bissau Mali Niger Senegal Togo
Customs unions
CAN	96,924,486	281,269,141,372	334,172,968,648	18.81%	3,448	4 Bolivia Colombia Ecuador Peru
EAC	127,107,838	49,882,030,443	61,345,180,041	22.98%	483	5 Burundi Kenya Rwanda Tanzania Uganda
EUCU	574,602,745	15,331,827,900,202	17,679,376,474,719	15.31%	30,768	33 30 EEA members Andorra San Marino Turkey
GCC	36,154,528	724,460,151,595	802,641,302,477	10.79%	22,200	6 Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates
MERCOSUR	271,304,946	1,517,510,000,000	1,886,817,000,000	12.44%	9,757	5 Argentina Brazil Paraguay Uruguay Venezuela
SACU	58,000,000	1,499,811,549,187	1,848,337,158,281	23.24%	6,885	5 Botswana Lesotho Namibia South Africa Swaziland
Preferential trade areas and Free trade areas
AANZFTA-ASEAN+3	2,085,858,841	10,216,029,899,764	11,323,947,181,804	10.84%	5,429	15 10 ASEAN members Australia China ( Hong Kong) ( Macau) Japan New Zealand South Korea
ALADI	499,807,662	2,823,198,095,131	3,292,088,771,480	16.61%	6,587	12 4 CAN members 5 MERCOSUL members Chile Cuba Mexico
AFTZ	553,915,405	643,541,709,413	739,927,625,273	14.98%	1,336	26 5 EAC members 5 SACU members Angola Comoros Democratic Republic of the Congo Djibouti Egypt Eritrea Ethiopia Libya Madagascar Malawi Mauritius Mozambique Seychelles Sudan Zambia Zimbabwe
APTA	2,714,464,027	4,868,614,302,744	5,828,692,637,764	19.72%	2,147	6 Bangladesh China ( Hong Kong) ( Macau) India Laos Sri Lanka South Korea
CARIFORUM-EUCU-OCTs	592,083,950	15,437,771,092,522	17,798,283,524,961	15.29%	30,060	67 12 CCCM members 33 EUCU members 3 OII members Anguilla Aruba Bahamas British Antarctic Territory British Indian Ocean Territory British Virgin Islands Cayman Islands Dominican Republic Falkland Islands French Southern and Antarctic Lands Greenland Mayotte Montserrat Netherlands Antilles Pitcairn Islands Saint Helena, Ascension and Tristan da Cunha South Georgia and the South Sandwich Islands Saint Pierre and Miquelon Turks and Caicos Islands
CACM	37,388,063	87,209,524,889	97,718,800,794	12.05%	2,614	5 Costa Rica El Salvador Guatemala Honduras Nicaragua
CEFTA	27,968,711	110,263,802,023	135,404,501,031	22.80%	4,841	8 Albania Bosnia and Herzegovina Croatia Kosovo Macedonia Moldova Montenegro Serbia
CISFTA	272,897,834	1,271,909,586,018	1,661,429,920,721	30.62%	6,088	11 6 EAEC members Armenia Azerbaijan Georgia Ukraine Moldova
DR-CAFTA-US	356,964,477	13,345,469,865,037	14,008,686,684,089	4.97%	39,244	7 5 CACM members Dominican Republic United States ( Puerto Rico)
ECOWAS	283,096,250	215,999,071,943	255,784,634,128	18.42%	904	15 8 UEMOA members Cape Verde Gambia Ghana Guinea Liberia Nigeria Sierra Leone
EFTA-SACU	68,199,991	1,021,509,931,918	1,139,385,636,888	11.54%	16,707	9 4 EFTA members 5 SACU members
EAEC	207,033,990	1,125,634,333,117	1,465,256,182,498	30.17%	7,077	6 Belarus Kazakhstan Kyrgyzstan Russia Tajikistan Uzbekistan
NAFTA	449,227,672	15,337,094,304,218	16,189,097,801,318	5.56%	36,038	3 Canada Mexico United States ( Puerto Rico)
TPP	25,639,622	401,810,366,865	468,101,167,294	16.50%	18,257	4 Brunei Chile New Zealand Singapore
SAARC	1,567,187,373	1,162,684,650,544	1,428,392,756,312	22.85%	911	8 Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka
SPARTECA	35,079,659	918,557,785,031	1,102,745,750,172	20.05%	31,435	21 3 OII members 12 PICTA members Australia Marshall Islands New Zealand Palau Timor-Leste Tokelau

Comparison between regional trade blocs

		Activities
Regional bloc		Free Trade Area	Economic and monetary union			Free Travel		Political pact	Defence pact	Other
Regional bloc		Free Trade Area	Customs Union	Single Market	Currency Union	Visa-free	Border-less	Political pact	Defence pact	Other
EU		in force	in force⁷	in force²	in force ¹	in force	in force (Schengen ^{1, 7}, NPU and CTA ¹)	in force	in force (NATO ^{1, 7} and CFSP/ESDP ¹)	ESA ^{1, 7}
EFTA		in force		in force^{2, 7}		in force	in force ^{1, 7}		in force ^{1, 7}	ESA ^{1, 7}
CARICOM		in force	in force	in force ¹	in force ¹ and proposed common	in force ¹	proposed	proposed		NWFZ
AU	ECOWAS	in force ^{1, 3}	in force ¹	proposed^[8]^[9]	in force ¹ and proposed for 2012 ¹ and proposed common	in force ¹	proposed	proposed	in force	NWFZ¹
	ECCAS	in force¹	in force¹	proposed	in force¹	in force			in force	NWFZ¹
	EAC	in force	in force	proposed for 2015	proposed for 2015^[10]	proposed	?	proposed for 2015		NWFZ¹
	SADC	in force¹	in force¹	proposed for 2015	de facto in force ¹ and proposed common for 2016	proposed^[11]				NWFZ¹
	COMESA	in force¹	proposed for 2010	?	proposed for 2018					NWFZ¹
	Common	proposed for 2019	proposed for 2019	proposed for 2023	proposed for 2028			proposed for 2028		NWFZ¹
UNASUR	MERCOSUR	in force	in force	proposed for 2015^[12]		in force		proposed for 2014^[13]		NWFZ
	CAN	in force	in force ¹	proposed¹^[14]		in force				NWFZ
	Common	proposed for 2014 ⁴	proposed for not after 2019	proposed for 2019	proposed for 2019	in force^[15]	proposed for 2019	proposed	in force	NWFZ
EurAsEC		in force¹	in force¹	proposed for 2012¹	Proposed^[16]	in force^[17]			in force ¹
AL	GCC	in force	proposed for 2012^[18]	proposed	proposed ¹	in force
AL	Common	in force¹	proposed for 2015	proposed for 2020	proposed			proposed^[19]
ASEAN		in force ⁵		proposed for 2015^[20]	proposed ⁸^[21]	in force^[22]		proposed for 2015^[23]	proposed for 2020^[24]	NWFZ
CAIS		in force¹	proposed	?		in force¹	in force¹	proposed		NWFZ
CEFTA		in force								RCC⁷
NAFTA		in force							in force ^{1, 7}
SAARC		in force ^{1, 6}
PIF		proposed for 2021¹								NWFZ¹

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 Additionally some non member states also participate (the European Union, EFTA and NATO have overlapping membership and various common initiatives regarding the European integration).
⁸ Additionally some non member states also participate (ASEAN Plus Three)

References

↑ Schott 1991, 1.
↑ Milner 2002, 450.
↑ Schott 1991, 2.
↑ O'Loughlin and Anselin 1996, 136.
↑ Milner 2002, 458.
↑ Mansfield and Milner 2005, 330.
↑ Mansfield and Milner 2005, 333.
↑ WT/COMTD/N/11
↑ WT/COMTD/N/21
↑ cite ibid|http://en.wikipedia.org/wiki/East_African_shilling
↑ "Prensa Latina". Prensa Latina. February 3, 2007.
↑ WT/REG238/M/1
↑ "Definidos critérios para o Parlamento do Mercosul". Senado Federal - Notícias. February 3, 2007.
↑ Twelfth Andean Presidential Council Act of Lima
↑ "?". CNN. February 3, 2007.
↑ GCC countries postpone customs union Nazarbayev proposed to create the SCO's reserve currency
↑ http://www.itar-tass.com/eng/level2.html?NewsID=2847543&PageNum=0
↑ GCC countries postpone customs union move
↑ Yemen Proposes Replacing Arab League With Arab Union, Agence France-Presse, 11 February 2004
↑ "Asean Trade Mins Meet To Speed Up Plans For Single Market". Malaysia Dual Lingual Business News. February 3, 2007.
↑ "Envisioning a single Asian currency". International Herald Tribune. February 3, 2007.
↑ "ASEAN To Sign Accord On Visa-Free Travel". AHN - All Headline News. February 3, 2007.
↑ "ASEAN Leaders Sign Five Agreements at the 12th ASEAN Summit, Cebu, the Philippines, 13 January 2007" (Press release). ASEAN Secretariat. 2007-01-13. Retrieved 2007-01-28. "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."
↑ "ASEAN defense ministers aim for security community". ABS-CBN. February 3, 2007.

Bibliography

Mansfield, Edward D. and Helen V. Milner, "The New Wave of Regionalism" in Diehl, Paul F. (2005). The Politics of Global Governance: International Organizations in an Interdependent World. Boulder: Lynne Rienner Publishers. ISBN 1-55587-654-4.
Milner, Helen V., "International Trade" in Carlsnaes, Walter; Thomas Risse, Beth A. Simmons (2002). Handbook of International Relations. London: SAGE Publications. ISBN 0-7619-6304-9. Cite uses deprecated parameters (help)
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. Cite uses deprecated parameters (help)
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.

v t e International trade

Terminology	Absolute advantage Balance of payments Balance of trade Capital account Comparative advantage Current account Export-oriented industrialization Fair trade Foreign exchange reserves Globalization Import substitution industrialization Net capital outflow Outsourcing Trade justice Trading nation

Organizations and policies	International Monetary Fund (IMF) United Nations Conference on Trade and Development World Bank Group World Trade Organization (WTO) International Trade Centre Economic integration Free trade zone Trade barrier Trade bloc Trade pact

Schools of thought	Economic nationalism Free trade Mercantilism Protectionism

Regional organizations	ACU ASEAN CACM CAN CARICOM CEMAC CUBKR EAC EAEC EU GCC Mercosur RCEP SACU WAEMU

Trading partners	Argentina Canada China European Union India Japan Pakistan United States South Korea

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