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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

introductory of micro economic
Raj Reply
Macroeconomic definetion
farooq Reply
I need short examples for costumer
Palden
we are costumer of this application,
sarajuddin
Marshall 's definition
Arun Reply
perfectly competitive firm earn zero economic profit in the long run.is it true or false
Sapna Reply
False...some, in the long run earn normal profit while some zero or negative profit(loss) which forces them out of the market..
Alex
what is supply
Sapna Reply
supply is the amount of goods and services that supplies are willing and able to sell at a given price at a particular period of time.
Bukari
Hey how Sapna...I have the que... I can see supply does with selling;yah that's great... So cost of production is the determinant of supply though;how does it relate to selling yet? The supply definition u just gave is not complete yet... *SUPPLY* DEFINITION HAS TO DO WITH SELLING AND PRODUCING.
Mahapa
what is difference between elastic and inelastic ?
saqlain Reply
what does a supply curve look like?
master Reply
It's the curve that has a positive gradient
Mahapa
you are right mahapa
Francis
please explain cob doglas thiory
Ibrahim
'cardinal utility implies ordinal utility'.Do you agree?
Bukari
prove
Bukari
what is relative price.?
Harpreet Reply
when the price of 2 commodity is compared with each other,the price of one commodity to another one's price is said to be relative price
Royalranjan
business organization and industry?
ALIYU Reply
history of monetary policy
Estah Reply
instrument of monetary policy
mustapha
open market,funding ,bank rate
Muafue
open market operation,Funding,Bank rate
Muafue
thanks guys
Estah
What is elasticity?
Moses Reply
level or degree of responsiveness of change in quantity as a result of change in price
Alex
is the degree of responsiveness of a quatity demand respond to small charge in price
EBENEZER
the degree of responsiveness of quantity demanded to a change in price, income or other related commodities
Dorothy
what are the Factor affected elastricity of demand and supply
Kelvin Reply
price of other related goods
Frank
fine
Bisrat
Taste. Income.
Chandrapaul
what is economic ?
Cabdulahi Reply
what is price ceiling and price floor
Mokom Reply
price ceiling is a government deliberate act of imposing a limit on prices of goods n services sold in an economy...price floor is exactly the opposite
Alex
both are a form of price control by the government. price ceiling is the subsidy to consumer by setting maximum limit to the price and prducers of good cannot charge a higher price than this price limit which is known as price ceiling
Amber
what's the difference between average product and marginal product
Francis Reply
average cost/revenue and marginal cost/revenue
Alex

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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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