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Trade bloc
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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)

Association of Southeast Asian Nations (ASEAN)

Central American Integration System (CAIS)

Caribbean Community (CARICOM)

Commonwealth of Independent States (CIS)

European Economic Area (EEA)

Greater Arab Free Trade Area (GAFTA)

North American Free Trade Agreement (NAFTA)

Pacific Islands Forum (PIF)

South Asian Association for Regional Cooperation (SAARC)

Union of South American Nations (Unasur/Unasul)

Other entities

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
1 not all members participating yet
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

Notes

External links

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