The major trade blocs (or agreements) in the region are the Union of South American Nations, composed of the integrated Mercosur and Andean Community of Nations (CAN). Minor blocs or trade agreements are the G3 Free Trade Agreement, the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA) and the Caribbean Community (CARICOM).
Minor blocs or trade agreements are the G3 Free Trade Agreement, the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA) and the Caribbean Community (CARICOM).
The 10 major regional trading blocs in the world economy September 13, 2020Listing1 0 SHARES ShareTweet The list below comprises ten major regional trading blocs in the world economy.
The North American Free Trade Agreement (NAFTA) The NAFTA is the world’s largest free trade area and has a combined population and GNP greater than 15 EU member states. It was initially a bilateral trade agreement between Canada and the United States, but Mexico joined on 1 January 1994; thereby creating a trilateral trade bloc in North America.
The major trade blocs (or agreements) in the region are the Union of South American Nations, composed of the integrated Mercosur and Andean Community of Nations (CAN). Minor blocs or trade agreements are the G3 Free Trade Agreement, the Dominican Republic – Central America Free Trade Agreement (DR-CAFTA) and the Caribbean Community ...
The Union of South American Nations is an intergovernmental union integrating two existing customs unions: Mercosur and the Andean Community of Nations, as part of a continuing process of South American integration . It is modeled on the European Union.
The Andean Community is a customs union comprising the South American countries of Bolivia, Colombia, Ecuador and Peru. The trade bloc was called the Andean Pact until 1996 and came into existence with the signing of the Cartagena Agreement in 1969. Its headquarters are located in Lima, Peru.
Venezuela announced its withdrawal in 2006, reducing the Andean Community to four member states. Recently, with the new cooperation agreement with Mercosur, the Andean Community gained four new associate members: Argentina, Brazil, Paraguay and Uruguay.
Its major activities involve coordinating economic policies and development planning; devising and instituting special projects for the less-developed countries within its jurisdiction; operating as a regional single market for many of its members (Caricom Single Market); and handling regional trade disputes.
Originally, the agreement encompassed the United States and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and was called CAFTA. In 2004, the Dominican Republic joined the negotiations, and the agreement was renamed DR-CAFTA.
3. G3 Free Trade Agreement: The G-3 is a free trade agreement between Colombia, Mexico, and Venezuela that came into effect on January 1, 1995, which created an extended market of 149 million consumers with a combined GDP (Gross domestic product) of US$486.5 billion.
As of 2019, MERCOSUR’s top external trading partners are China, the EU, the US, Chile, and Mexico. The AEC plays a central role in Asian economic integration, as it was the third largest economy in Asia and the world’s sixth largest economy in 2019.
The Mercado Comun del Cono Sur or Southern Common Market (MERCOSUR) The MERCOSUR is one of the world’s fastest growing trading blocs with its four founding members generating 70% of South America’s GNP. It is also one of the world’s leading economic blocs and the fifth largest economy. It was established on 26 March 1991 with the Treaty ...
The European Economic Area (EEA) The European Union (EU) is the world’s largest trading bloc and the second largest economy in the world. It is also the European Free Trade Association (EFTA)’s largest trading partner, as 70% of imported merchandise in EFTA countries comes from the EU. In order to further strengthen trade ...
The Common Market of Eastern and Southern Africa (COMESA) The COMESA is the largest regional economic organization in Africa. It was formed on 8 December 1994 as a replacement of the former Preferential Trade Area (PTA) which was established in 1981.
The South Asian Association for Regional Cooperation (SAARC) As the South Asian region is the most densely populated region and one of the most fertile areas in the world, the SAARC plays an important role in helping South Asian countries work together in reaching their potential for prosperity.
Currently, its priority areas are: maritime safety and security; trade and investment facilitation; fisheries management; disaster risk management; academic, science and technology cooperation; and tourism and cultural exchange. IORA also has two focus areas, which are Blue Economy and women’s economic empowerment.
Due to its rich natural resources, central location at the crossroads of global oil trade, and fast-growing economies, the Indian Ocean region plays a significant role in the global economy and international trade. The IORA was established on 6 March 1997 as a forum to enhance cooperation within the Indian Ocean region.