The global environment is getting reshaped by multiple important forces and today we noticing a lot of new things in Global Environment of the world. Regional Trading Alliances and World Trade Organizations are known as the main two important features of the global environment. On this page, there is a deep insight into the top features of the regional trading alliances.
Global Environment Trends
Regional Trading Alliances
Regional Trading Alliances are known to be redesigning the global competition. It was a time when there was a term as a country against country, but today it is a region against region. The following are top 5 regional trading alliances that include the two well-known alliances, such as (WTO) World Trade Organization and the South Asian Association of Regional Corporation (SAARC).
The European Union
The European Union is a union that contains 15 European nations along with 25 state members as per December 2004. The purpose behind the creation of the European Union was to wipe out the national barriers/obstacles to travel regarding investment, employment and trade. The following is further clarification and key points.
- The primary purpose in the creation of the EU (February 1992) was to free these member nations to regain their industrial rankings against the industrial power of Japan and the United States.
- In 1999, the EU moved a gigantic step regarding complete unification when 11 countries of 15, agreed to become a division of EMU – The Economic and Monetary Union. It was decided that the participating countries will now share the same currency, the Euro, as modes of exchange.
- The original EU had 12 member countries that include Denmark, Belgium, France, Germany, Ireland, Greece, Luxembourg, Italy, the Netherlands, Spain, Portugal, and the United Kingdom. However, in 1995, a few nations were also included such as Finland, Sweden, Austria, Cyprus, Estonia, the Czech Republic, Hungary, Lithuania, Latvia, Slovakia, Malta, and Slovenia.
The North American Free Trade Agreement
NAFTA is an agreement between Canadian, Mexican and US governments to eliminate all the barriers to free trade. Below are key points of this agreement.
- NAFTA established on January 1, 1994
- Both critics and champions have been in the signing of NAFTA
- Elimination of the barriers (tariffs, customs user fees and import licensing requirement) resulted in the economic development and strength of all 3 countries.
- In 1994, three countries, Columbia, Venezuela and Mexico signed an economic deal for removing tariffs and import duties.
- In addition, 36 countries of the Caribbean region, Central America and South America are also having talks on a Free Trade Areas of the Americas (FTAA) economic agreement.
- The Southern Cone Common Market is also another free-trade block that exists.
The Association of Southeast Asian Nations
ASEAN is a trading alliance that is made of 10 Asian nations. The primary points of this alliance are written below.
- For the upcoming years, the Asian region ensures to be one of the most growing economic regions around the world.
- On July 1, 1997, the return of Hong Kong from British Rule to Chinese Rule was another important event in the region.
The South Asian Alliance for Regional Cooperation
The following are the main features and points of SAARC.
- On December 8, 1985, the SAARC was established officially when its manifesto was accepted by the Heads of the Government or State of regional nations such as Bhutan, Bangladesh, India, Nepal, Maldives, Sri Lanka and Pakistan.
- The main goal of SAARC is to give a single platform where people of South Asia can work together in a relation of friendship, understanding and trust. Its purpose is to enhance the social and economic development of member countries.
- Afghanistan became the 8th member of the South Asian Association for Regional Corporation in 2005.
World Trade Organization
Unlike above 4 alliances, WTO is an international body that has over 100 member countries. Multiple trade agreements had been signed for improvement of the world trade. The WTO body offers help for promoting regional and global trade with favored nation states.