PROTECTIONISM – TRADE BLOCS

Free Trade Area

North American Free Trade Agreement (NAFTA)

Members: Canada, Mexico, United States

Aims:
 Creating a trilateral trade bloc in North America
 make these countries more competitive in the global marketplace

The North American Agreement on Environmental Cooperation (NAAEC)

NAFTA
North American on Labour Cooperation (NAALC)

Aims:
 To eliminate barriers to trade and investment between the US, Canada and Mexico
 Goods and services are able to move into the market of the partners without limitation
 Prices of the goods and services are to be determined by the supply and demand in the
markets

US Canada 5%
3%

Mexico 4%

Achievements:
 Largest free trade agreement in the world
 Eliminated most tariffs on products traded between the three countries
 Liberalization of trade in agriculture, textiles, and automobile manufacturing
World Trade Organisation (WTO)
formerly known as General Agreement on Tariffs and Trade (GATT)

Aims:
 Regulate international trade
 Provide a forum for negotiating and monitoring further trade liberalisation
 Resolve trade disputes
 Increase the transparency of decision-making processes
 Cooperate with other major international economic institutions involved in global
economic management
 Help developing countries benefit fully from the global trading system

Achievements:
 Information Technology Agreement (ITA) which is the most significant tariff
liberalization arrangement
 Reducing tariffs on pharmaceutical and public health goods
 Trade Facilitation Agreement - expedite the movement, release and clearance of goods,
including goods in transit, and provide for effective customs cooperation
Association of Southeast Asian Nations (ASEAN)

Members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore,

Thailand, Vietnam

Aims:
 maintain political stability in the Southeast Asian region
 helping each other economically, socially and culturally
 enhance the standard of living of the people through cooperation in agriculture, trade and
industrial
 provide cooperation and assistance in the form of training and research
 establish close relationships with regional and international associations or organizations

Aims and Purposes via ASEAN Declaration:

 to accelerate the economic growth, social progress and cultural development in the region
through joint endeavors in the spirit of equality and partnership in order to strengthen the
foundation for a prosperous and peaceful community of Southeast Asian nations
 to promote regional peace and stability through abiding respect for justice and the rule of
law in the relationship among countries in the region and adherence to the principles of
the United Nations Charter

Achievements:
 declared members of ASEAN countries as a Zone of Peace, Freedom and Neutrality
(ZOPFAN)
ZOPFAN - parties publicly stated their intent to keep South East Asia "free from any
form or manner of interference by outside Powers" and "broaden the areas of
cooperation"
 Southeast Asia Nuclear-Weapon-Free Zone, Zon Bebas Senjata Nuklear
does not permit any ship to use its waters and port facilities to transport nuclear material
or weapons
 ASEAN Free Trade Area (AFTA), Zon Kawasan Perdagangan Bebas ASEAN
AFTA - remove trade barriers, promote economic cooperation among ASEAN countries,
create a broad market as the ASEAN population is large, increase in the output of
ASEAN countries will expand the industry and in turn boost the economy of the ASEAN
countries
 ECONOMIC UNION

European Union (EU)

formerly known as European Economic Community (EEC) and European Communities (EC)

Members: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, UK (28)

Currency: Euro

Aims:
 To create a free and safe Europe with no internal boarders
 Internal markets: to ensure smooth and efficient trade with Europe
 Stable and sustainable development: ensure Europe’s sustainable and steady development
 Supports the advancement of science and technology and invests in education
 Promote peace
 Offer, freedom, security and justice without internal boarders
 Respect its rich cultural and linguistic diversity

Achievements:
 Gave 500 million people the freedom to live, study or work anywhere by creating the
Schengen Area, a zone of passport-free, borderless travel
 Created one of the world’s biggest single markets
 Won the Nobel Peace Prize in 2012
International Monetary Fund (IMF)

Type: international financial institution

Aims:
 Promote international monetary cooperation
 Facilitate international trade
 Foster sustainable economic growth
 Make resources available to members experiencing balance of payments difficulties

Achievements:
 Stabilise exchange rates by enlarging the band of fluctuation of exchange rate to ± 2.5
percent
 Promotion of international trade
 Broadening of the credit structure
 Multilateral payments system
 Compromise between gold standard and managed paper standard