A trade bloc is a large free trade area formed by one or more tax, tariff and trade agreements. Typically trade pacts that define such a bloc specify formal adjudication bodies, e.g., North American Free Trade Agreement (NAFTA) trade panels. This may include even a more democratic and participative system, as the European Union (EU) and its parliament.
Particularly since the demise of most of the world's empires, a number of international— generally regionally based—economic blocs have been developed to promote trade between member states.
Several blocs also have stated or implicit political goals—notably the EU. Varieties of economic blocs include free trade areas, customs unions, single markets, and economic and monetary unions.
One of the first economic blocs was the German Customs Union (Zollverein) initiated in 1834, formed on the basis of the German Confederation and subsequently German Empire from 1871.
A trade bloc is established through a trade pact (or pacts) covering different issues of the economic integration.
Most active regional blocs
It is possible that a country is member of two (or more) different blocs. To avoid overlapping for this classification such countries are only included in the most active of the blocs in question. The "activity" of each block is measured by the following three criteria:
- to have greater real practical achievements (not only declarations that are not followed by actual actions by its members)
- to have more recent (or regular) activities (meetings, new agreements, other internal procedures)
- to have more ambitious plans for future integration and a tighter timescale for it.
Also a country may be classified here as part of the less active regional bloc if the country itself is more active in it; Venezuela, for example, is a member of both the Andean Community and Mercosur. While Mercosur is a more active bloc than the Andean Community, Venezuela itself is much more active in the Andean Community than in Mercosur. Therefore Venezuela is assigned to the Andean Community for the purpose of this classification. (This is only an example. So, note, that Venezuela is planning to completely integrate with Mercosur by 2010).
Priority is given to such regional blocs that have ambitions for integration in more spheres than just economy (i.e., political, defense and other spheres). Sometimes activities are divided between different (but related) blocs with small deviations in membership (e.g., NATO and EU members are almost the same).
Some colors on the map are used multiple times for different blocs. A darker color means full member; a lighter color means associate state, observer state, prospective member, candidate, acceding state or a similar status.
List of regional blocs
African Economic Community (AEC)
- full members of ECOWAS: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo
- full members of CEMAC: Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon
- full members of ECCAS: Democratic Republic of the Congo, São Tomé and Príncipe
- full members of EAC: Burundi, Kenya, Rwanda, Tanzania, Uganda
- full members of SACU: Botswana, Lesotho, Namibia, South Africa, Swaziland
- full members of SADC: Angola, Madagascar, Malawi, Mauritius, Mozambique, Seychelles, Zambia, Zimbabwe
- full members of COMESA: Sudan, Ethiopia, Eritrea, Djibouti, Comoros
- full members of IGAD: Somalia
- full members, other: Sahrawi Republic
Association of Southeast Asian Nations (ASEAN)
- full members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
- candidate: Timor-Leste
- ASEAN+3 partners: Japan, South Korea
Central American Integration System (CAIS)
- full members: Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Panama
- BCIE partner: Taiwan
Caribbean Community (CARICOM)
- full members: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago
- full members, non-sovereign autonomous entities of the United Kingdom: Montserrat
- associate members, non-sovereign autonomous entities of the United Kingdom: Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Turks and Caicos Islands
- candidates for associate membership: Netherlands Antilles (currently an observer)
- observer: Puerto Rico
Commonwealth of Independent States (CIS)
- full members of EAEC: Belarus, Kazakhstan, Kyrgystan, Russia, Tajikistan, Uzbekistan
- full members of GUAM: Azerbaijan, Georgia, Moldova, Ukraine
- full member, other: Armenia
- associate member: Turkmenistan
- prospective member: Iran, Mongolia, North Korea
European Economic Area (EEA)
- Central European Free Trade Agreement (CEFTA)
- full members: Albania, Bosnia and Herzegovina, Croatia, Republic of Macedonia, Montenegro, Serbia
- full members, non-sovereign entities administered by the United Nations: Kosovo
- European Free Trade Association (EFTA)
- full members: Iceland, Norway, Switzerland, Liechtenstein
- prospective member: Faroe Islands
- European Union (EU)
- full members: 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
- overseas countries and territories: Aruba, Falkland Islands, Mayotte, Pitcairn Island, Saint Helena (including its dependencies Ascension Island and Tristan da Cunha), Saint Barthélemy, Saint Martin, Saint Pierre and Miquelon, Wallis and Futuna
- candidates: Turkey
- Schengen area partner: Gibraltar
- customs unions with: Akrotiri and Dhekelia, Åland Islands, Guernsey, Isle of Man, Jersey
- currency unions with: Andorra, Kosovo, Monaco, San Marino, Vatican City
- prospective special partner: Israel
Greater Arab Free Trade Area (GAFTA)
- full members of the Agadir Agreement: Egypt, Jordan, Morocco, Tunisia
- full members of the CCASG/GCC: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates
- full members, other: Iraq, Lebanon, Libya, Palestinian Authority, Syria, Yemen
- candidate/s: Mauritania
- prospective members, other: Algeria
North American Free Trade Agreement (NAFTA)
- full members: Canada, Mexico, United States of America
Pacific Islands Forum (PIF)
- full members: Australia, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu
- full members, non-sovereign autonomous entities of New Zealand: Cook Islands, Niue
- associate members: French Polynesia, New Caledonia, Tokelau
- SPC partners: American Samoa, Guam, Northern Mariana Islands
South Asian Association for Regional Cooperation (SAARC)
- full members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka
- candidates: China
Union of South American Nations (Unasur/Unasul)
- full members of MERCOSUR: Brazil, Argentina, Paraguay, Uruguay, Venezuela
- full members of the CAN: Bolivia, Colombia, Ecuador, Peru
- full member, CAN associate member: Chile
- LAIA partner: Cuba
Other entities
- Dependent territories:
- Christmas Island: territory of Australia; unlikely to join any bloc
- Cocos (Keeling) Islands: territory of Australia; unlikely to join any bloc
- Greenland (overseas country of Denmark): left the EU in 1985; status regarding FTA and customs union is unclear
- Hong Kong: SAR of China; WTO and APEC member
- Macau: SAR of China; WTO member
- Norfolk Island: territory of Australia; unlikely to join any bloc
- Svalbard: territory of Norway under the Svalbard treaty; unlikely to join any bloc
- U.S. Virgin Islands: organized territory within the United States; unlikely to join any bloc
- Unrecognized states:
- Abkhazia: problems with status
- Nagorno-Karabakh: problems with status
- Somaliland: problems with status
- South Ossetia: problems with status
- Transnistria problems with status
- Northern Cyprus: legally part of the EU but refuse to cooperate due to dispute with the south; status regarding FTA and customs union is unclear
Comparison between regional blocs
| Activities | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Regional bloc | Free Trade Area | Customs Union | Economic and monetary union | Free Travel | Political pact | Defence pact | Other | |||
| Single Market | Currency Union | Visa-free | Border-less | |||||||
| AEC | CEMAC | in force | in force | proposed | in force | proposed | in force | |||
| COMESA | in force 1 | proposed for 2008 | proposed for 2025 | |||||||
| EAC | in force | in force | proposed for 2009 | proposed | proposed for 2010 | |||||
| ECOWAS | in force 1, 3 | in force 1 | in force 1 and proposed for 2009 1 and proposed common | in force 1 | proposed | proposed | in force | |||
| SACU | in force | in force | proposed for 2012 | de-facto in force 1 and proposed common for 2016 | proposed | |||||
| Common | proposed for 2019 | proposed for 2019 | proposed for 2023 | proposed for 2028 | proposed for 2028 | |||||
| ASEAN | in force 5 | proposed for 2015 | proposed | in force | proposed for 2015 | proposed for 2020 | ||||
| CARICOM | in force | in force | in force 1 | in force 1 and proposed common | in force 1 | proposed | proposed | |||
| CAIS | in force1, proposed | proposed | proposed | in force and proposed | ||||||
| CIS | GUAM | in force | proposed | proposed | proposed | proposed | proposed | |||
| EurAsEC | proposed | proposed | proposed | in force | in force 1 | in force 1 | ||||
| Common | proposed | proposed | proposed | proposed | in force 1 | |||||
| EEA | CEFTA | in force | in force | in force | in force | |||||
| EFTA | in force | in force 1 | in force 1 | in force 1 | in force (Schengen treaty 1) | in force1 (EFTA Court EFTA Surveillance Authority) | in force (NATO 1) | ESA 1, Euratom | ||
| EU | in force 2 | in force | in force | in force 1 | in force | in force (Schengen 1 and CTA 1) | in force | in force (NATO 1 and CFSP/ESDP 1) | Euratom | |
| Common | in force1 | in force1 | in force1 | in force1 | in force (Schengen treaty 1) | in force (NATO 1) | Euratom | |||
| GAFTA | Agadir | in force | ||||||||
| CCASG/GCC | in force | in force | in force | proposed for 2010 | ||||||
| Common | in force | |||||||||
| NAFTA | in force | proposed | proposed | proposed | in force (NATO 1 Security and Prosperity Partnership of North America and NORAD) | Commission for Environmental Cooperation | ||||
| PARTA | in force1, proposed | in force1 | proposed | proposed | ||||||
| SAARC | in force 6 | proposed | proposed | proposed | ||||||
| Unasur/Unasul | MERCOSUR | in force | in force | in force | proposed for 2014 | |||||
| CAN | in force | in force 1 | in force | |||||||
| Common | proposed for 2014 4 | proposed for not after 2019 | proposed for 2019 | proposed for 2019 | in force | proposed for 2019 | ||||
2 involving goods, services, telecommunications, transport (full liberalisation of railways from 2012), energy (full liberalisation from 2007)
3 telecommunications, transport and energy - proposed
4 sensitive goods to be covered from 2019
5 least developed members to join from 2012
6 least developed members to join from 2017
See also
- Globalization
Notes
External links
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Last updated on Saturday July 26, 2008 at 14:56:40 PDT (GMT -0700)
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