1. RTA

2. North American Free Trade Agreement
Went into effect on January 1, 1994
Merged the United States, Canada, and Mexico with more than 421 million consumers
Breaks down tariffs and trade restrictions on most agriculture and manufactured products
August 12, 1992 agreements in number of key areas include: agriculture, autos, transport, & intellectual property
January, th anniversary = success and failure

3. About NAFTA On Jan 1, 1994 established Trilateral trade blocs USA
Canada
Mexico
World’s Largest free trade area
Trade has been soared since beginning

4. Cont…
The goal was to eliminate barriers to trade and investments between three nations
Also seeks to protect intellectual property rights
Benefits
Strong economic growth
Job creation
Better prices
Better selection in consumer goods

5. Trade Balances
US goods and services trade with NAFTA $1.6 trillion in latest report
Export - $397 billion
Import - $438 billion
Trade Deficit - $41 billion

6. In terms of purchasing power parity GDP, largest trade bloc in the world and second largest by nominal GDP

8. European Union
Formed in 1957 to improve economic and social conditions
Has grown to 27-nation alliance
Initiative Europe ’92 called for creation of open markets for Europe’s 340 million consumers
Biggest expansion in 2004 – 10 new members from southern and eastern Europe
Observers feared EU would become a trade barrier
EU’s monetary revolution, introduction of the Euro

9. Nations of The EU * * * * * * * * * *

10. Members of Euroland-euro as currency
Austria
Belgium
Cyprus
Estonia
Finland
France
Germany
Greece
Ireland
Italy
Luxemburg
Malta
Netherlands(Holland)
Portugal
Slovakia
Slovenia
Spain

11. The other EU member states.
with own currency
Lithuania: Litas
Poland: Zloty
Sweden: Krona
United Kingdom
Pound Sterling
Czech Rep: Czech Crown
Denmark: Krone
Hungary: Forint
Latvia: Lats
The other EU member states.

12. What is the European Union?
It is a trading bloc of 27 countries who have come together to have;
Free trade (Single European Market)
Economic co-operation
& political co-operation

13. What are the aims of the EU?
Free trade: No customs/import duties between member countries.
Free movement of capital(money) & labour(workers).
Common currency: Only used by 16 member states at present.

14. EU Institutions The European Commission The European Parliament
The Council of The European Union
The European Court of Auditors
The Court of Justice

15. The European Commission
Drafts proposals for new laws.
Enforces new laws.
Manages the EU budget.
Acts in the best interests of the EU.

16. European Parliament 13 MEP’s directly elected by EU citizens.
Debates new laws.
Aproves the EU budget.
Supervises the EU.
Suffers from a democratic deficit.
Even though elected does not actually pass the laws.

17. Council of the European Union
Made up of ministers from each member state.
Depending of topic being discussed.
Eg. Finance, Agriculture etc….
Main decision making body of EU.
Set objectives of EU
Decide on legislation.

18. Decision making process of the EU
The EU commission thinks of ideas.
The EU Parliament debates it and sends amendments back to
The EU Commission, which amends the idea and sends it to
The EU Parliament & Council of the EU, who have the final say.

19. EU Policies
Major programs designed to help specific categories of people in the EU.
Common Agriculture Policy - Farmers
Common Fisheries Policy - Fishermen
EU Social Charter – Workers
Competition Policy - Consumers
Single European Market – Business
Economic & Monetary Union – Common currency

20. What is the Eurozone?
The 16 countries within the EU which have the Euro as their currency.
AKA “Euroland”.

21. Advantages of the
No need to convert currency when trading with these countries, save money.
Easier to compare prices.
More employment due to US companies setting up in Ireland to have access to EU.

22. Disadvantages of the Ireland has no control over its interest rates.
UK BREXIT– major trading partner.
Increased competition as consumers can compare prices easily.

23. Asia Pacific Economic Co-operation
APEC Forum

24. APEC Forum
APEC is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region

25. Birth of APEC 1989
APEC begins as an informal Ministerial-level dialogue group in Canberra, Australia in 1989
12 founding members:
Australia, New Zealand
6 ASEAN economies
Japan and South Korea
Canada and the US

26. Expansion of APEC 1991-1998 1991: China, Taiwan, and Hong Kong
1993: Mexico and Papua New Guinea
1994
Chile
1998
Russia
Vietnam
Peru

28. Host Economy Every year one of the 21 member economies
plays host to APEC meetings
serves as the APEC Chair
chairs the annual
Economic Leaders’ Meeting
Ministerial Meetings

30. APEC Secretariat Based in Singapore Executive Director
Deputy Executive Director
fixed 3-year terms since 2010
mostly diplomats

31. Policy Development Economic Leaders’ Meeting APEC Ministerial Meeting
Annual APEC Ministerial Meetings of foreign and economic/trade ministers
Held immediately before Economic Leaders’ Meetings
Sectoral Ministerial Meetings
edu., energy, env., fin., HR, sci-tech, sme, t.t.

32. Leaders’ Meetings Held annually since 1993
1993, Blake Island, Seattle, US
APEC Leaders Economic Vision Statement

33. ``Three Pillars”
3 specific areas crucial to achieving the Bogor Goals:
Trade and investment liberalization
Business facilitation
Economic and technical cooperation

34. Leaders’ Meetings 1995, Osaka, Japan 1996, Subic, the Philippines
Osaka Action Agenda
concerted unilateral liberalization
1996, Subic, the Philippines
Manila Action Plan
all members submitted individual action plans

35. Shanghai, 2001 2001, Shanghai, China
``Meeting New Challenges In The New Century”
APEC Leaders Statement on Counter-terrorism

36. Leaders’ Meetings 2002-2013 2002: Los Cabos, Mexico
2003: Bangkok, Thailand
2004: Santiago, Chile
2005: Busan, South Korea
2006: Hanoi, Vietnam
2007: Sydney, Australia
2008: Lima, Peru

37. Weaknesses of APEC Decision making by consensus
No mechanism for enforcement
Absence of priorities
Lack of linkage to funding agencies

38. What Is Andean Community?
The Andean Pact
formed in 1969 using the EU model
had more or less failed by the mid-1980s
was re-launched in 1990, and now operates as a customs union
renamed the Andean Community in 1997
signed an agreement in 2003 with MERCOSUR to restart negotiations towards the creation of a free trade area
LO4: Explain the history, current scope, and future prospects of the world’s most important regional economic agreements.

39. Andean Community Bolivia, Colombia, Ecuador, Peru Customs Union
Abolished foreign exchange, financial and fiscal incentives, and export subsidies
Established common external tariffs

40. Mercosur and the FTAA
RTA among Argentina, Brazil, Paraguay, and Uruguay was launched in 1991 with the Treaty of Asunción
Common Market of the South, or Mercosur, took on Chile and Bolivia as associate members in 1996 and 1997, respectively
Suggests that the RTA among the four core members is an actual common market with the free movement of labor and physical capital
However, this is not the case
Mercosur entered into force in 1995 as a FTA with plans to complete a CU by 2006
Free movement of labor and physical capital is a long way off

41. Mercosur
Had a positive impact on amount of trade among its four core members
Technology profile of traded goods is higher for trade within Mercosur than for trade between Mercosur and the rest of the world
However, intra-Mercosur trade is low by world standards
Troubled by two asymmetries that challenge its smooth functioning
Argentina and Brazil dwarf Paraguay and Uruguay in economic size
Smaller members find themselves somewhat sidelined from the core relationship between Argentina and Brazil
Fundamental macroeconomic asymmetries between Argentina and Brazil
Exchange rate asymmetries caused a great deal of friction between Argentina and Brazil

42. Association of Southeast Asian Nations

43. ESTABLISHMENT AND MEMBERSHIP
established on 8 August 1967 in Bangkok
five original Member Countries, namely,
Indonesia, Malaysia, Philippines, Singapore, and Thailand.
Brunei Darussalam joined on 8 January 1984
Vietnam on 28 July 1995
Laos and Myanmar on 23 July 1997
Cambodia on 30 April 1999

44. The Establishment of ASEAN
The ASEAN region has a population of about 500 million,
A total area of 4.5 million square kilometers
A combined gross domestic product of US$737 billion
A total trade of US$ 720 billion.

45. Goals of ASEAN
To accelerate the economic growth, social progress and cultural development in the region through joint endeavors; and
To promote regional peace and stability through abiding respect for justice and the rule of law.

46. ECONOMIC AND FUNCTIONAL COOPERATION
When ASEAN was established, trade among the Member Countries was insignificant
Thus, some of the earliest economic cooperation schemes of ASEAN were aimed at addressing this situation
The Framework Agreement on Enhancing Economic Cooperation was adopted at the Fourth ASEAN Summit in Singapore in 1992, which included the launching of a scheme toward an ASEAN Free Trade Area or AFTA.

47. AEM: ASEAN Economic Ministers AMM: ASEAN Ministerial Meeting
AFMM:  ASEAN Finance Ministers Meeting 
SEOM:  Senior Economic Officials Meeting
ASC:  ASEAN Standing Committee
SOM:  Senior Officials Meeting
ASFOM:  ASEAN Senior Finance Officials Meeting

48. SAARC South Asian Association for Regional Cooperation

49. ABOUT SAARC
South Asian Association for Regional Cooperation (SAARC) was formally launched in 1985
Its seven founding members are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined SAARC in 2007
The main objectives of SAARC are to place regional cooperation on a firm foundation, accelerate the pace of social and economic development of the countries, and further the cause of peace, progress and stability in the region.

50. Country Share of SAARC Regional GDP 2005, (US$ 995.82 billion)
Bhutan 0%
Pakistan
11%
Maldives
Nepal 1%
India
79%
Sri Lanka 2%
Afghanistan
Bangladesh 6%