1. Regional Trade Blocs Prepared by Pradipti Chanda VtP 0629

2. Regional trade blocks are inter governmental associations that manage and promote trade activities for specific regions of the world. They have political as well as political implications for example the European union, the worlds largest trading block has harbored political ambitions. The Maastricht treaty which gave birth to EU calls for joint policies in regard to military, defense and citizenship. Introduction

3. Major trade blocks European Union (EU) North American free trade agreement (NAFTA) Singapore – American free trade agreement (SAFTA) Organization of Petroleum exporting countries (OPEC) Association of South East Asian Nation (ASEAN) South Asian Association of Regional Cooperation (SAARC)

4. Debate on Trading Blocks There are 2 views 1.Analyst like preeg argue that trade blocs are desirable because they compliment global trade. 2.Other analyst argue that trade blocs are not desirable because they are threat to free trade and need to prootectionism.

5. Reasons of trade blocs Trade blocs complement global trade. They protect intra regional trade form outside forces. They establish regional security.

6. Why trade blocs are undesirable Imports quotas (limiting the amount of imports into the country so that domestic consumers buy products made by their countries in their region). Custom delays (establishing bureaucratic formalities that slow down trade from the other region) Subsidies barrier (giving heavy subsidies to protect regional trade) Voluntary boycotts and technical barriers.

7. South Asian Association of Regional Cooperation (SAARC)

8. The South Asia Association for Regional Cooperation (SAARC) was established when its charter was formally adopted on December 8, 1985 by the Heads of State of Govt. of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan & Sri Lanka. SAARC provides a platform for the peoples of South Asia to work together in a spirit of friendship, trust ad understanding. It aim to accelerate the process of economic and social development in member states. SAARC

9. Areas of Cooperation Agriculture & Rural development Health & Population Activities Women, Youth & Children Environment & Forestry Science & Technology & Meteorology Human resource Development & Transport Recently, high level working groups have also been established to strengthen cooperation in the areas of Information & Communications Technology, Biotechnology, Intellectual Property Rights, Tourism, and Energy.

10. Established Centers  SAARC Agricultural Information Centre (SAIC), Dhaka  SAARC Meteorological Research Centre (SMRC), Dhaka  SAARC Tuberculosis Centre (STC), Kathmandu  SAARC Documentation Centre (SDC), New Delhi  SAARC Human Resource Development Centre (SHRD)  SAARC Coastal Zone Management Centre, Maldives  SAARC Information Centre, Nepal  SAARC Energy Centre, Pakistan  SAARC Disaster Management Centre, India

11. SAARC Born in 1985 7 members countries Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan & Nepal. It has 1.3 billion inhabitants Represents 22% of the world population but only 1.9% of the world GNP. SAARC has been a sheer failure. The total external trade of the region – 0.8% of world exports and 1.3% of world imports. The reason being political dispute between member countries. Still some progress has been achieved. SAPTA (South Asia Preferential Trading Agreement) has come into force in 1995. Consensus on SAFTA (South Asian Free Trade Area) has been reached.

12. NAFTA

13. NAFTA The North American Free Trade Area is the trade bloc in North America created by the North American Free Trade Agreement (NAFTA) and its two supplements, the North American Agreement on Environment and The North American Agreement of Labor Cooper (NAALC), whose members are Canada, Mexico and the United States. It came into effect on 1 st January, 1994.

14. NAFTA Secretariat The NAFTA Secretariat, comprised of a Canadian Section, a Mexican section and a United States Section, is responsible for the administration of the dispute settlement provisions of the North American Free Trade Agreement (NAFTA).

15. NAFTA  Born in January 1994  Member nations: US, Canada & Mexcio  It’s the world largest free trade area  Under NAFTA, all non tariff barriers to agriculture were eliminated.  Many tariffs are being eliminated over a period of 5-15 yrs.  2 way trade between US & Mexico has increased by more than 55%.  2 way trade between US & Canada increased more than 50%.  Huge benefits have accrued to the NAFTA member countries.  NAFTA has been a roaring success.