In: Economics
Identify 3 International and 3 Regional Trade agreements.
For each International agreement and Trade agreement do the following:
A. Summarize each agreement.
B. Explain how it benefits its purpose.
C. What would you do to make it better?
International Agreements::
1. The Asia-Pacific Economic Cooperation
APEC is a forum for 21 Pacific Rim countries that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.APEC countries includes Australia, Brunei, Canada, Chile, China, Hong Kong (Hong Kong, China), Indonesia, Japan, South Korea, Mexico, Malaysia, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Taiwan (Chinese Taipei), Thailand, United States, and Vietnam.It works to raise living standards and education levels through sustainable economic growth and to foster a sense of community and an appreciation of shared interests among Asia-Pacific countries.
APEC benefiting its purpose by Free Trade Area of the Asia-Pacific (FTAAP), by including all APEC member economies.It is the best chance of converging the member nations and ensuring stable economic growth under free trade.
APEC can be made better by liberalizing trade in greater scale and economic and technical cooperation betweeen the countries like sharing technologies and resources without affecting any other countries and strive for economic growth.
2. The General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT) is a multilateral agreement regulating international trade.the purpose of which is the substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis.GATT was signed in 1947 and lasted until 1993, when it was replaced by the World Trade Organization (WTO) in 1995. The original GATT text (1947) is still in effect under the WTO framework, subject to the modifications of GATT 1994.
Although it was not in operation,during its meetings many countries exchanged tariff concessions and reduced tariffs.It boosted trade among the countries and reduced differences between the countries.It created World Trade Organization (WTO) for better organization among the trading countries.
GATT can be made it better by making to follow all guidelines prescribed by organization and by considering all issues of trading countries and formulating reasonable and productive policies which benefits all countries.
3. The North American Free Trade Agreement (NAFTA)
NAFTA is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.It superseded the Canada and United States Free Trade Agreement.NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). The goal of NAFTA was to eliminate barriers to trade and investment among the U.S., Canada, and Mexico.It also seeks to eliminate non-tariff trade barriers and to protect the intellectual property right of the products.
It had brought the immediate elimination of tariffs on more than one-half of Mexico’s exports to the U.S. and more than one-third of U.S. exports to Mexico.This Agreement opened the door for open trade, ending tariffs on various goods and services, and implementing equality between Canada, America, and Mexico.This allowed corporations to trade freely and import and export various goods on a North American scale.
NAFTA is at best as it it is the largest trading bloc in the world.By following the agreement,boosting more exports and imports and technological transfer can illuminate trade among the countries to a major scale.
Regional trade aggrements::
1. ASEAN
Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Laos, Burma and Cambodia are the ten members of ASEAN.The Association of Southeast Asian Nations is a regional intergovernmental organisation comprising ten Southeast Asian countries which promotes Pan-Asianism and intergovernmental cooperation and facilitates economic, political, security, military, educational and socio-cultural integration amongst its members and other Asian countries
It benefited it purpose by maintaining Political-Security, Economic and Socio-Cultural community.It done based largely on consultation, consensus, and cooperation.It established ASEAN bank for financial integration and integrated socio cultural communities by establishing ASCC.
ASEAN can do it better by intergrating with other countries with military and economic purpose as it need more technological and resources coperation among countries.Establish free trade among ASEAN countries and reduce territorial disputes.
2. MERCOSUR
Mercosur is a South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since December 1, 2016. Associate countries are Bolivia, Chile, Peru, Colombia, Ecuador and Suriname.Observer countries are New Zealand and Mexico.
It had established common market council and group,trade commission, free trade zones and protection to investors to benefit thier purpose of free trade and fluid movement of people,goods and currency.
Mercosur can be better off by making nexus between the countries and maintaing balance of power among the members and maintain human rights and political integration for more boost of growth in all aspects.
Gulf Cooperation Council
The Cooperation Council for the Arab States of the Gulf is a regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf, except for Iraq.Its member: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Tighter economic, political and military coordination and reducing their dependence on oil in the future, the GCC states are pursuing unprecedented structural reform initiatives.It established Monetary union and internal market to maintain political balance and icrease free trade among the countries.
GCC can be better by political integration and decreasing its rifts between neighbouring countries, eradicate terrorism and following peace measures and ARAB league to boost its economic trade and political integration.