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Regional trading agreements

There are different types of economic integration across the globe, ranging from free trade agreements , in which participants allow each other’s imports without tariffs or quotas, to common markets , in which participants have a common external trade policy as well as free trade within the group, to full economic unions , in which, in addition to a common market, monetary and fiscal policies are coordinated. Many nations belong both to the World Trade Organization and to regional trading agreements.

The best known of these regional trading agreements is the European Union . In the years after World War II, leaders of several European nations reasoned that if they could tie their economies together more closely, they might be more likely to avoid another devastating war. Their efforts began with a free trade association, evolved into a common market, and then transformed into what is now a full economic union, known as the European Union. The EU, as it is often called, has a number of goals. For example, in the early 2000s it introduced a common currency for Europe, the euro, and phased out most of the former national forms of money like the German mark and the French franc, though a few have retained their own currency. Another key element of the union is to eliminate barriers to the mobility of goods, labor, and capital across Europe.

For the United States, perhaps the best-known regional trading agreement is the North American Free Trade Agreement (NAFTA) . The United States also participates in some less-prominent regional trading agreements, like the Caribbean Basin Initiative, which offers reduced tariffs for imports from these countries, and a free trade agreement with Israel.

The world has seen a flood of regional trading agreements in recent years. About 100 such agreements are now in place. A few of the more prominent ones are listed in [link] . Some are just agreements to continue talking; others set specific goals for reducing tariffs, import quotas, and nontariff barriers. One economist described the current trade treaties as a “spaghetti bowl,” which is what a map with lines connecting all the countries with trade treaties looks like.

There is concern among economists who favor free trade that some of these regional agreements may promise free trade, but actually act as a way for the countries within the regional agreement to try to limit trade from anywhere else. In some cases, the regional trade agreements may even conflict with the broader agreements of the World Trade Organization.

Some regional trade agreements
Trade Agreements Participating Countries
Asia Pacific Economic Cooperation (APEC) Australia, Brunei, Canada, Chile, People’s Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States, Vietnam
European Union (EU) Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom
North America Free Trade Agreement (NAFTA) Canada, Mexico, United States
Latin American Integration Association (LAIA) Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela
Association of Southeast Asian Nations (ASEAN) Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
Southern African Development Community (SADC) Angola, Botswana, Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, Zimbabwe

Questions & Answers

when there is a surplus of a product in an unregulated market there is a tendency for proce to rise or price to fall or quantity demand to increase or quantity supplied to increase
Karen Reply
what is oligopoly?
Nurina Reply
oligopoly is a small industry were there are few firms(not more than ten firms) each firms are likely to be aware of the action of the other firms
Wani
what is difference macro economy and microeconomic
Chhaya Reply
macro means large and micro means small in macro economics we study about whole economy and in micro economics we study about individuals like individual consumer
Wani
thank you
Chhaya
Please explain me the concept of elasticity.
Jainal
what is Is corve
Chhaya
In simple terms, elasticity is defined as the responsiveness of one variable to another. That is, how a change in one variable affects other variables. With that in mind, price elasticity of demand measures how a change in the price of a given product affects its demand
Amos
elasticity shows how much one variable change due to change in another variable
Wani
acha what is valuable demand
Waseem
where from u wani ruhee
Waseem
what is the difference between disequilibrium in balance of payment and balance of trade?please.
kekde
sorry
Chhaya
what is Is curve
Chhaya
what
Jamaala
what is utility
Jamaala
Waseem wani from ANANTNAG district
Wani
utility means want satisfying power of a good
Wani
what is different economic growth and development
Chhaya Reply
It's simple growth is an quantitative concept and development is an quantitative concept. Example: Economic growth of particular country (GDP, Percapita Income) Development of that country( Literacy level, Human development and all).
Paramasivam
In other words, you age is growth, it can be measure. How much skills and knowledge that your having this is Development, It cannot be measure.
Paramasivam
In that first reply it's just typing mistake I am sorry, Development is an qualitative concept.
Paramasivam
thanks
Chhaya
your welcome.!
Paramasivam
right PM
Avijit
Hearty thank you sir.,
Paramasivam
Hi, Economist., Greetings of the day., This is Paramasivam P., PhD Research Scholar of Economics from India
Paramasivam Reply
hello
KJ
hello
Paramasivam
Yah thanks to everyone., Greetings of the day.!
Paramasivam
hi sir..
Jainal
Your contents are very helpful
Jainal
explain economic growth
STK Reply
what causes demand pull inflation
STK
what causes demand pull inflation?
STK
It starts with an increase in consumer demand
Lalthansanga
economic growth is the stability of money - when there is stability people will help the economy grow
Heather
What is scarcity
frank Reply
What cause demand pull inflation
Randy Reply
Ok
frank
what is meaning of scarcity in urdu
Aarif Reply
scarcity means that there is limited resources but unlimited wants.
Cabdulahi
thanks
Aarif
What is sunks cost
Atim
cost that have already incurred by a firm and cannot be recovered in a future.
Cabdulahi
cost taht cannor be avoided bcz they have already incurred
Mumin
is this in urdu books on mbl of am economice
Arham Reply
it is the total quantity of goods a consumer is willing and able to buy at a particular time. with respect to price
Jeremiah Reply
what is demand
Mohammed Reply
demand is  willingness to pay a price for a specific good or service.
Cabdulahi
difference between change in demand and quantity demanded
Respicious Reply
Change in demand is as a result of increase In price or decrease in price of commodities at a particular time. Quantity demanded is defined as total quantity of goods a consumer is willing and able buy at a given price and at a particular time.
Jeremiah
essay about business cycle
Sarah Reply
utility ka hoti hai.. Concept of utility
Aazim
what are the factors that affect quantity demand for a fairly elastic demand
Dennis Reply
cost of production, weather and climate , increase of population,
Abubakar

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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