INTERNATIONAL TRADE

ASSOCIATIONS

BY

MOHD . YUSUF MIDDEY

&

RAHIL MERCHANT

ROLL NO : 52 & 53
 International Trade
Associations
vIn order to promote equal development in all the states of the
world a trade bloc was created .
v
vA trade bloc is a type of intergovernmental agreement , often
part of a regional intergovernmental organization , where regional
barriers to trade ( tariffs and non - tariff barriers ) are reduced
or eliminated among the participating states .
v
vIn order to fulfill this with the approval of GATT which turned
to be WTO different unions were formed .
v
vUnder this union or trade bloc their were less restrictions ,
less interference , less barriers less duties were laid down by
the government .
v
vThis associations not only provide development to the poorer
nations but also is made accessible by the rich once .
v
vTotal care i . e . the political , cultural , social , technological &
environmental aspects are been taken into consideration for the
development purpose .
v
vThe bridge between the poor & rich is brought down to a greater
extent .
v
vThere are many unions prevailing in the World the most common &
South Asian Association for Regional
Cooperation
vEstablished in 1985 .

vPolitical & Economic Reform of 8

countries .

vCountries Comprising Bangladesh , Bhutan ,

Maldives , Nepal , Pakistan , India and Sri
Lanka .

vIdea initiated by the Bangladeshi

President Ziaur Rahman .

vFirst meeting in Colombo in April 1981 .

vLater on Afghanistan was added on 2007 .

 The objectives of SAARC are :
1 ) To promote the welfare of South Asia &
improve their quality of life .

2 ) To develop culture , economy & social

progress with active collaboration &
mutual cooperation .

3 ) Give all individuals the potential to

live in dignity .
1)
4 ) To make the countries for collective
nature of autonomous for development .
1)
5 ) Working on mutual trust & understanding
of each other .
1)
6 ) To get hold with the developed nations .
1)
7 ) To cooperate with regional &
international organization with the
 EU
European Union

vA Political & Economic community .

v With the signing of the Treaty of Paris ( 1951 ),

following the " Schuman Declaration " and the later
the Treaties of Rome .

vThe strongest community of the world .

vStarted in 1957 with 6 members

vIn 1993 the EU got stronger by introducing

EAEC ( European Atomic Energy Community ) &
EEC ( European Economic Community ).

vIn 1999 the EU introduced a common currency .

vCurrently consist of 27 members .

v
 The principle aims & objectives of the
European Union are to :
vTo promote peace , its values and the well - being of its
peoples .

vTo offer trade without much restrictions & competition in

the internal market .

vSustainable development of Europe along with economic ,

social , territorial cooperation & harmony among member
nations .

vTo combat social discrimination , promote social justice

and protection , equality between women and men .

vRespecting its rich cultural and linguistic diversity and

shall ensure that Europe's cultural heritage is
safeguarded and enhanced .
v
vTo protect & uphold its values and interests in its
relations with the wider world .

vContributing to peace , security & sustainable development

of the Earth .

vEradication of poverty and protection of human rights , as

 NAFTA

North American Free Trade

Agreement
vA trilateral bloc created by the US ,
Canada & Mexico .
v
vInitially was started between US &
Canada in 1988 .
v
vCombination of three countries came
into picture in 1994 .
v
vSecond most strongest after the EU .
v
vHas two supplements North American
Agreement on Environmental Cooperation
( NAAEC ) and the North American Agreement
 OBJECTIVES OF NAFTA
1 ) Eliminate customs barriers and
facilitate cross - border trade in goods
and services .
2)
3 ) Guarantee conditions of equitable
competition in the free trade zone .
4)
5 ) Substantially increase investment
opportunities in the three member
countries .
6)
7 ) Provide for the protection and adequate
application of intellectual property
rights in each country .
8 ) Adopt efficient implementation , joint
administration and dispute settlement
procedures .
9 ) Improve trilateral cooperation to extend
 LAFTA
Latin American Free Trade Association

vFormed in the Treaty of Montevideo in 1960 .

vCountries comprise of by Argentina , Brazil ,

Chile , Mexico , Paraguay , Peru , and Uruguay .

vCame into in effect in 1962 .

v
vFurther was called as Latin American Integration
Association ( LAIA )

vThe signatories hoped to create a common market

in Latin America and offered tariff rebates among
member nations .

vFurther added 4 more countries Bolivia , Colombia ,

Ecuador , and Venezuela , Cuba

vAny Latin American country is free to join this

 Objectives of LAFTA
vThe goal of the LAFTA is the creation of a
free trade zone in Latin America .
v
vTo make economically more strong to the
nations which are weaker .
v
vTo cope up with EU & NAFTA .
v
vCreating employment opportunities for the
people of Latin America .
v
vTo clear out the loans taken from the IMF
& world bank .
v
vAim for a sustainable development &
keeping the environment in mind .
 SAFTA
South Asian Free Trade
Area
vIt was initially presented at the 12 th SAARC
summit .
v
vThe seven foreign ministers of the region signed
a framework agreement on SAFTA which came into
existence on 2006 .
v
vSAFTA requires the developing countries in South
Asia , that is , India , Pakistan and Sri Lanka , to
bring their duties down to 20 percent in the
first phase of the two year period ending in 2007 .

vIt was created to zero down customs duty on the

trade of practically all products in the region
by end 2016
v
vThe least developed nations in South Asia
consisting of Nepal , Bhutan , Bangladesh and
Maldives have an additional three years to reduce
tariffs to zero . India and Pakistan have signed
 The objectives of SAFTA are
1 ) To promote and enhance mutual trade and
economic cooperation among the 'Contracting
States ’.
2)
3 ) Eliminating barriers to trade in , and
facilitating the cross - border movement of
goods between the territories of the
Contracting States ;
4)
5 ) Promoting conditions of fair competition in
the free trade area , and ensuring equitable
benefits to all Contracting States , taking
into account their respective levels and
pattern of economic development ;
6)
7 ) Creating effective mechanism for the
implementation and application of this
Agreement , for its joint administration and
for the resolution of disputes ; and
8)
9 ) Establishing a framework for further
 OAU
Organization of African Unity
vOAU was established on 25 May 1963 .
v
vIt was than disbanded into AU
v
vThe advent of the African Union ( AU ) can be described as
an event of great magnitude in the institutional evolution
of the continent .
v
vOn 9 . 9 . 1999 , the Heads of State and Government of the
Organisation of African Unity issued a Declaration ( the
Sirte Declaration ) calling for the establishment of an
African Union .

vFor accelerating the process of integration in the

continent .
v
vTo enable it to play its rightful role in the global
economy .
vAddressing multifaceted social , economic and political
problems compounded as they are by certain negative
aspects of globalisation .
v
vAll members having a common concern regarding
development of economy of the member states , environment &
 Objectives OAU :
vTo achieve greater unity and solidarity between the African
countries and the peoples of Africa .
vTo accelerate the political and socio - economic integration of the
continent .

vTo encourage international cooperation , taking due account of the

Charter of the United Nations and the Universal Declaration of
Human Rights .
v
vTo promote peace , security , and stability on the continent .

vTo promote democratic principles and institutions , popular

participation and good governance .

vTo promote and protect human and peoples' rights in accordance

with the African Charter on Human and Peoples' Rights and other
relevant human rights instruments .
vTo establish the necessary conditions which enable the continent
to play its rightful role in the global economy and in
international negotiations .
vTo promote sustainable development at the economic , social and
cultural levels as well as the integration of African economies .
vTo promote co - operation in all fields of human activity to raise
the living standards of African peoples .
vTo coordinate and harmonize the policies between the existing and
future Regional Economic Communities for the gradual attainment
of the objectives of the Union .
vTo advance the development of the continent by promoting research
in all fields , in particular in science and technology .
vTo work with relevant international partners in the eradication
of preventable diseases and the promotion of good health on the
 ASEAN
Association of Southeast Asian Nations

vCommenced on 1967 with Indonesia , Malaysia , the

Philippines , Singapore and Thailand .
v
vSince then , membership has expanded to include
Brunei , Burma ( Myanmar ), Cambodia , Laos , and Vietnam .
v
vRanked as one of the strongest combined GDP in 2009
i . e . ( USD $1 . 5 trillion )
v
vProtection of peace and stability of the region , and
to provide opportunities for member countries to
discuss differences peacefully .
 As set out in the ASEAN Declaration , the
aims and purposes of ASEAN are :
vTo accelerate the economic growth , social progress and cultural
development in the region .

vTo promote regional peace and stability through abiding respect for
justice and the rule of law in the relationship among countries of
the region and adherence to the principles of the United Nations
Charter .
v
vTo promote active collaboration and mutual assistance on matters of
common interest in the economic , social , cultural , technical ,
scientific and administrative fields .
v
vTo provide assistance to each other in the form of training and
research facilities in the educational , professional , technical and
administrative spheres .
v
vTo collaborate more effectively for the greater utilization of
their agriculture and industries , the expansion of their trade ,
including the study of the problems of international commodity
trade , the improvement of their transportation and communications
facilities and the raising of the living standards of their
peoples .

vTo promote Southeast Asian studies spirit of equality and

partnership in order to strengthen the foundation for a prosperous
and peaceful community of Southeast Asian Nations .
vTo maintain close and beneficial cooperation with existing
 A FINAL WORD
Having trade blocs not only
helps the country to grow but
also the poorer nations are
been made exposed to the world .
The bridge between rich & poor
can be cut down with the
introduction of International
Trade Association because
after all it is bringing the
world a common place for
development for all .