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Global Regional Trade Agreements Overview

Regional trading agreements (RTAs) have proliferated since World War II, with the GATT receiving 124 notifications of RTAs from 1948-1994 and the WTO receiving over 130 additional agreements on trade in goods and services since 1995. RTAs allow preferential reduction of tariffs and other trade barriers among member countries, constituting an exception to the WTO's most-favored-nation principle. Major RTAs include the European Union, NAFTA, ASEAN, APEC, and agreements in Africa, South America, and other regions.

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Deepanshu Kaushik
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Topics covered

  • regional cooperation,
  • economic statistics,
  • trade networks,
  • cultural integration,
  • COMESA,
  • environmental protection,
  • APEC,
  • multilateral agreements,
  • historical context,
  • citizen's rights
141 views10 pages

Global Regional Trade Agreements Overview

Regional trading agreements (RTAs) have proliferated since World War II, with the GATT receiving 124 notifications of RTAs from 1948-1994 and the WTO receiving over 130 additional agreements on trade in goods and services since 1995. RTAs allow preferential reduction of tariffs and other trade barriers among member countries, constituting an exception to the WTO's most-favored-nation principle. Major RTAs include the European Union, NAFTA, ASEAN, APEC, and agreements in Africa, South America, and other regions.

Uploaded by

Deepanshu Kaushik
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Topics covered

  • regional cooperation,
  • economic statistics,
  • trade networks,
  • cultural integration,
  • COMESA,
  • environmental protection,
  • APEC,
  • multilateral agreements,
  • historical context,
  • citizen's rights

REGIONAL TRADING

AGREEMENTS (RTAs)
Topic-3
RTAs- DEVELOPMENT
• - DURING 1948-94, GATT RECEIVED 124 NOTIFICATIONS OF
RTAs, RELATING TO TRADE IN GOODS
• - WTO IN 1995- RECEIVED OVER 130 ADDITIONAL
AGREEMENTS COVERING TRADE IN GOODS & SERVICES

• IMPORTANT: WTO MEMBERS HAVE TO INFORM , TO WHICH


RTA THEY ARE PARTICIPATING

• RTAs- ARE EXCEPTION TO WTO ARTICLE 14, WHERE TARIFF


AND OTHER TECHNICAL BARRIERS CAN BE REDUCED ON A
PREFERENTIAL BASIS BY THE COUNTRIES UNDER A
REGIONAL AGREEMENT
CONCEPTUAL FRAMEWORK OF
INTERNATIONAL INTEGRATION
• TWO MAIN REASONS:

• 1.COMMON HISTORY/ CULTURE SHARING


• - CONSUMER TASTES LIKELY TO BE SIMILAR/
DISTRIBUTION CHANNEL EASY TO ESTABLISH

• 2.DISTANCES ARE SHORT


MAJOR ASPECTS OF RTAs
• 1. TRADE CREATION : ie. GENERATION OF NEW MARKETS
FOR NEWER PRODUCTS & INCREASED TRADE FLOWS IN THE
EXISTING PRODUCT LINES

• 2. TRADE DIVERSION: SHIFT OF TRADE FROM THE MEMBER


PARTNER COUNTRIES TO MORE EFFICIENT NON-MEMBER
COUNTRIES
MAJOR REGIONAL TRADING
BLOCKS
• APEC- ( ASIA PACIFIC ECONOMIC COOPERATION)
• -MEMBERS: USA, CANADA, JAPAN, RUSSIA, CHINA,
AUSTRALIA,NEWZEALAND, KOREA & OTHERS
• MOST DYNAMIC REGION
• ESTABLISHED IN 1989
• - AIM- TO STRENGTHEN THE ASIA- PACIFIC COMMUNITY
• ACCOUNT FOR 65% OF WORLD’S GDP( $19254BILLION)
• -2.6 BILLION PEOPLE
• -47 % OF WORLD’S TRADE
• THREE PILLARS:
• 1.TRADE & INVESTMENT LIBERALIZATION
• 2.BUSINESS FACILITATION
• 3. ECONOMIC & TECHNICAL COOPERATION
NAFTA( NORTH AMERICAN
FREE TRADE AREA)
• - ESTABLISHED ON JAN1, 1994
• POPULATION- 360 MILLON
• - PURCHASING POWER- $6.5 TRILLION

• IMPORTANT MEMBERS: USA, CANADA ,& MEXICO


EUROPEAN UNION(EU)
• MAASTRITCHT TREATY 1992

• FIRST PROPOSED BY FRENCH FOREIGN MINISTER,ROBERT


SCHUMAN ON 9 MAY 1950, ALSO KNOWN AS EUROPE’S DAY

• - INITIALLY EU CONSISTED OF JUST SIX MEMBERS-BELGIUM,


GERMANY, FRANCE, ITALY, LUXEMBOURG & THE
NETHERLANDS
• -1973- DENMARK, IRELAND & UK JOINED
• 1981-GREECE
• 1986-SPAIN & PORTUGAL
• 1995- AUSTRIA, FINLAND& SWEEDEN JINED
• 2004- 10 NEW COUNTRIES JOINED
EU
• -ISSUES- NOT ONLY TRADE & ECONOMY BUT ALSO,
• CITIZEN’S RIGHTS- ENSURING FREEDOM, SECURITY & JUSTICE;
• REGIONAL DEVELOPMENT; ENVIRONMENTAL PROTECTION; &
PROMOTING GLOBALIZATION
• FIVE EU INSTITUTIONS:
• -EUROPEAN PARLIAMENT( ELECTED BY THE PEOPLES OF THE
MEMBER STATES)
• COUNCIL OF EUROPEAN UNION;( REPRESENTING GOVT OF
MEMBER STATES).
• EUROPEAN COMMISSION;
• COURT OF JUSTICE;
• COURT OF AUDITORS
ASEAN
• - ESTABLISHED IN 1967 IN BANGKOK
• -POPULATION 500 MILLION
• AREA- 4.5 MILLION SQ. KM
• -COMBINED GDP $ 737 BILLION
• -TOTAL TRADE: $ 720 BILLION
OTHER RTAs
• EAST ASIAN ECONMIC COUNCIL- CHINA, BRUNEI, HONGKONG,
KOREA, MALAYSIA, SINGAPORE, THAILAND ETC

• GULF COOPERATION COUNCIL(GCC)- 1981-BAHARAIN, QATAR, UAE,


OMAN- ALL FROM PERSIAN GULF

• - SAARC- SEVEN MEMBERS FROM SOUTH ASIA

• -COMMON MARKET FOR EASTERN & SOUTHERN AFRICA( COMESA)


• - ECONOMIC COMMUNITY OF WEST AFRICAN DEVELOPMENT
• SOUTH AFRICA N DEVELOPMENT COMMUNITY(SADC)
• MERCOSUR- IN 1881 BY BRAZIAL, ARGENTINA, PARAGUAY &
URUGUAY , ACCOUNT FOR 80% OF SOUTH AMERICA’S GDP,
• THIRD LARGEST BUSINESS AREA, $ 1 TRILLION COMBINED GDP.
POPULATION 220 MILLION- THEY IMPLEMENTED COMMON TARIFF
STRUCTURE RATES SINCE 1995

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