![]() ![]() These different forms are described below, going from the lowest to highest level of economic integration. Trading blocs take different forms according to the level of economic integration. ![]() A BTA could also comprise an agreement between two trading blocs, such as the European Economic Area (EEA), which is a trade agreement between the European Union (EU) and the small group of European countries that belong to the European Free Trade Agreement (EFTA). This may comprise just two countries, such as China and the U.S.A, or it could be an agreement between a single country and a trading bloc, such as the CETA agreement between Canada and the European Union. Where there are just two parties to a trade agreement it is known as a bilateral trade agreement (BTA). They are therefore sometimes known as regional trade agreements (RGA). ![]() Trading blocs are usually comprised of countries which are geographically close to each other. This involves the partial or complete elimination of trade barriers. Trading Blocs and the World Trade Organisation (WTO) What is a trading bloc?Ī trading bloc is a group of countries which have preferential trading arrangements between members. Conflicts and Trade-Offs Between Objectives and Policies.Equilibrium Levels of Real National Output.The Benefits and Costs of Economic Growth.The Characteristics of Aggregate Demand.The UK Economy - Performance and Policies.Positive and Normative Economic Statements.Alternative Views of Consumer Behaviour.Free Market Economies, Mixed Economy and Command Economy.Price, Income & Cross Elasticities of Demand.Specialisation and the Division of Labour.Introduction to Markets and Market Failure.Wage Determination in Competitive and Non-competitive Markets.Business Behaviour and the Labour Market.Factors Influencing Growth and Development.Macroeconomic Policies in a Global Context.Trading Blocs and the World Trade Organisation (WTO).Strategies Influencing Growth and Development.ASEAN (Association of Southeastern Asian Nations) – Founded in 1967, ASEAN now consists of 10 Southeast Asian nations with the shared goal of creating trade-friendly policies, promoting economic growth, and ensuring peace and stability between member states.The goal of the EU is to promote the “Four Freedoms”: the free movement of goods, services, people and money across borders within the member countries. EU (European Union) – This agreement consists of 27 European countries 19 of which share a common currency: the Euro.A new version with updated terms was signed by the United States in 2020. NAFTA (North American Free Trade Agreement)/USMCA (US-Mexico-Canada Agreement) – This agreement, which took effect in 1994, promotes trade between the United States, Mexico and Canada.Three important examples of trading blocs are: These rules are designed to limit trade barriers such as subsidies, tariffs, and quotas. ![]() Trading blocs are simply groups of countries that establish rules for trade between all participating countries. When these agreements contain multiple countries, we refer to them as Trading Blocs. Because there are many benefits to participating in trade, countries often make agreements with other countries to facilitate the free and fair flow of goods and services between them. ![]()
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