Presentation on Regional Economic Integration

Presented by : Anita Sharma (5A) Deepali Agrawal(12A)

REGIONAL ECONOMIC INTEGRATION

Regional economic integration is an agreement among countries in a geographic region to reduce and ultimately remove, tariff and non tariff barriers to the free flow of goods or services and factors of production among each others.

Free Trade Area Customs Union

Regional Economic Integration

Common Market

Economic Union
Political Union

Free Trade Area

E.g. EFTA The European Free Trade Association) (1) established in1960 (2) 4 countries (3) free trade in industrial goods (4) with different policy in agriculture and to outsiders

Benefits of Regional Economic Integration

Trade Creation Greater Consensus Political Cooperation Global presence of local businesses

Foreign competition

Drawbacks of Regional Economic Integration Trade Diversion

Shifts in Employment
Less National Sovereignty Backlash of Globalisation

Fact of NAFTA
North American Free Trade Agreement --- becoming law in January 1, 1994 --- three countries: the US, Canada, Mexico

Fact of EFTA

(The European Free Trade Association) (1) Established in1960 (2) 4 countries (3) Free trade in industrial goods (4) With different policy in agriculture and to outsiders

ASEAN: fact file

The Association of Southeast Asian Nations Ten countries: Brunei , Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Viet Nam, Laos and Cambodia

Contd.

*Established : on 8 August 1967 in Bangkok *Population : about 500 million *Area: 4.5 million square kilometers *GDP : US$737 billion *Trade : US$ 720 billion.

Asia Pacific Economic Cooperation (APEC)

Introduction

1) status:

APEC: the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. non-binding commitments and no treaty obligations

APEC is the only inter governmental grouping in the world operating on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis.

Contd.
2) 21 members (December 2004) referred to as "Member Economies" Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam.

2) GDP: approximately 60% of world (US$19, 254 billion) 3) World trade: 40% 4) the most economically dynamic region : generated nearly 70% of global economic growth in its first 10 years. 5) established in 1989

South Asian Association for Regional Cooperation

founded in December 1985

Sri Lanka, Bhutan, India, the Maldives, Nepal, Pakistan, and Bangladesh. Afghanistan

Headquartered in Kathmandu, Nepal.

The 16 stated areas of cooperation are agriculture and rural, biotechnology, culture, energy, environment, economy and trade, finance, funding mechanism, human resource development, poverty alleviation, people to people contact, security aspects, social development, science and technology; communications, tourism .