upcScavenger » Wiki: Trade Bloc

Trade bloc

Use
Terminology
Statistics
Comparison between regio..

Lists of trade blocs

See also
References
Bibliography

C O N T E N T S

Force Lightgreen Proposed Trade

Rank: 100%

Wiki
Comments
Media

A trade bloc is a type of trade pact, often part of a regional intergovernmental organization, where barriers to trade ( and others) are reduced or eliminated among the participating states.

Trade blocs can be stand-alone agreements between several states (such as the USMCA) or part of a regional organization (such as the European Union). Depending on the level of economic integration, trade blocs can be classified as preferential trading areas, , , , or economic and monetary unions.Mansfield and Milner 2005, 333.

Use

Historic trading blocs include the Hanseatic League, a Northern European economic alliance between the 12th and 17th centuries, and the Zollverein, formed on the basis of the German Confederation and subsequently the German Empire from 1871. Surges of trade bloc formation occurred 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 within regional trade blocs.Milner 2002, 450. Economist Jeffrey J. Schott of the Peterson Institute for International Economics notes that members of successful trade blocs usually share four common traits: similar levels of per capita GNI, geographic proximity, similar or compatible trading regimes, and political commitment to regional organization.Schott 1991, 2.

Some advocates of global free trade are opposed to trading blocs. Trade blocs are seen by them to encourage regional free trade at the expense of global free trade.O'Loughlin and Anselin 1996, 136. Those who advocate for it claim that global free trade is in the interest of every country, as it would create more opportunities to turn local resources into goods and services that are both currently in demand and will be in demand in the future by consumers. However, scholars and economists continue to debate whether regional trade blocs fragment the global economy or encourage the extension of the existing global Multilateralism trading system.Milner 2002, 458.Mansfield and Milner 2005, 330.

Terminology

A common market is seen as a stage of economic integration towards an economic union or possibly towards the goal of a unified market.

A single market is a type of trade bloc in which most trade barriers have been removed (for goods) with some common policies on product regulation, and freedom of movement of the factors of production (capital and labour) and of capitalism and services.

Statistics

EMU	37,630
OECS (sovereign states)	6,732
OII	28,081
CCCM	6,850
CEMAC	1,490
UEMOA	647
Andean Community	3,448
EAC	483
EUCU	30,768
GCC	22,200
MERCOSUR	9,757
SACU	6,885
AANZFTA-ASEAN+3	5,429
ALADI	6,587
AFTZ	1,336
APTA	2,147
CARIFORUM-EUCU-OCTs	30,060
CACM	2,614
CEFTA	4,841
CISFTA	6,088
DR-CAFTA-US	39,244
ECOWAS	904
EEA (EU + EFTA)	34,400
EFTA-SACU	16,707
EAEC	7,077
USMCA	36,038
TPP	18,257
SAARC	911
SPARTECA	31,435
Pacific Alliance	6,978	+ This list is based on the data obtained from Statistics Division.

Comparison between regional trade blocs

European Union		in force	in force⁷	in force²	Eurozone¹	in force	in force (Schengen treaty^{1, 7}, NPU and CTA¹)	in force	in force (CFSP/ESDP¹)	ESA^{1, 7}
EFTA		in force		in force^{2, 7}		in force	Schengen treaty^{1, 7}		in force^{1, 7}	ESA^{1, 7}
CARICOM		in force	in force	in force ¹	in force¹ and proposed common	in force¹	proposed	proposed		NWFZ
African Union	ECOWAS	in force^{1, 3}	in force¹	proposed	in force¹ and proposed for 2012¹ and proposed common	in force¹	proposed	proposed	ECOMOG	NWFZ¹
	ECCAS	in force¹	African Continental Free Trade Agreement (AfCFTA)¹	in force¹	proposed	in force¹	in force		in force	NWFZ¹
	EAC	in force	in force	proposed for 2020s	proposed for 2024	proposed	?	proposed for 2023		NWFZ¹
	SADC	in force¹	in force¹	proposed for 2015	de facto in force¹ and proposed common for 2016	proposed				NWFZ¹
	COMESA	in force¹	proposed for 2010	?	proposed for 2018					NWFZ¹
	Common	in force¹	proposed for 2019	proposed for 2023	proposed for 2028			proposed for 2028		NWFZ¹
Pacific Alliance		in force				in force				NWFZ
USAN	MERCOSUR	in force	in force	proposed for 2015		in force		proposed for 2014		NWFZ
	Andean Community	in force	in force¹	proposed¹Twelfth Andean Presidential Council Act of Lima		in force				NWFZ
	Common	proposed for 2014⁴	proposed for not after 2019	proposed for 2019	proposed for 2019	in force	proposed for 2019	proposed	in force	NWFZ
EEU		in force	in force¹	in force	proposed	in force			in force¹
Arab League	GCC	in force	in force	proposed	proposed¹	in force			in force
Arab League	Common	in force¹	proposed for 2015	proposed for 2020	proposed			proposed Yemen Proposes Replacing Arab League With Arab Union, Agence France-Presse, 11 February 2004
ASEAN		in force⁵		proposed for 2015	proposed⁸	in force		proposed for 2015	proposed for 2020	NWFZ
CAIS		in force¹	proposed	?		in force¹	in force¹	proposed		NWFZ
CEFTA		in force								RCC⁷
USMCA		in force							in force^{1, 7}
SAARC		in force^{1, 6}	proposed	proposed		in force⁹
PIF		proposed for 2021¹								NWFZ¹

¹ not all members participating
² involving goods, services, telecommunications, transport (full liberalisation of 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 have overlapping membership and various common initiatives regarding the European integration).
⁸ Additionally some non member states also participate (ASEAN Plus Three)
⁹ Limited to "entitled persons" and duration of one year.

Lists of trade blocs