Trade bloc - Definition and Overview

A trade bloc is a large free trade zone or near-free trade zone formed by one or more tax, tariff and trade agreements. Typically trade pacts that define such a bloc specify formal adjudication bodies, e.g. NAFTA trade panels. This may include even a more democratic and participative system, as the EU and its parliament.

George Orwell predicted that trade blocs would evolve into continent-spanning empires with ever-changing alliances. The eastward expansion of the EU and use of the Euro, southern expansion of NAFTA into the FTAA, and increasing co-operation in Asia would seem to validate this prediction.

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, which formed the basis of the German Confederation and subsequently empire that came in 1871.

List of trade blocs

• Andean Community (CAN)
• Asia-Pacific Economic Cooperation (APEC)
• Association of Southeast Asian Nations Free Trade Area (AFTA)
• ASEAN + 1 (Mainland China) Free Trade Area
• Caribbean Community and Common Market (CARICOM)
• Central European Free Trade Agreement (CEFTA)
• Closer Economic Partnership Arrangement (CEPA) between Hong Kong, Macau and Mainland of the People's Republic of China
• East African Economic Community (EAEC)
• Economic Community of West African States (ECOWAS)
• European Economic Area (EEA)
• European Free Trade Association (EFTA)
• European Union (EU), formerly the European Community
• Mercado Comun del Sur (MERCOSUR or MERCOSUL)
• Mercado Comun Centro Americano (MCCA)
• North American Free Trade Agreement (NAFTA)
• South Asian Association for Regional Cooperation (SAARC)
• Southern African Development Community (SADC)

Proposed

• Central American Free Trade Agreement (CAFTA)
• Commonwealth of Independent States (CIS)
• Free Trade Area of the Americas (FTAA)
• South Asia Free Trade Agreement (SAFTA)
• South American Community of Nations (SACN)
• ASEAN + 3 (Mainland China, South Korea, and Japan) Free Trade Area

See Also

• Globalization
• Anti-globalization movement
• World Trade Organization
• List of international trade topics
• World Economy
• Economy of Africa
• Economy of Asia
• Economy of Europe
• Economy of North America
• Economy of Oceania
• Economy of South America