Group items tagged

This is an excellent article from The Telegraph that sheds some light on the possible creation of the world's largest trading bloc. This bloc would include the removal of trade barriers between the U.S., Great Britain, and all of the E.U., and would be of incredible importance and power given that this new trade relationship could strengthen all nations involved in order to rival the growth of nations like China and India. 

EU and US economies account for nearly half of the world's economic output and a third of global trade, meaning that a transatlantic free-trade bloc would hold great sway over emerging economic superpowers China, Brazil and India.

The trading bloc presents in the article is the ASEAN trading bloc, which includes 10 nations. India and ASEAN are negotiating on a free trade agreement on services and investments. However, some nations of the ASEAN have not agreed on the agreement. The agreement, if implemented, will help boost movement of Indian professionals in the ASEAN region and it will increase more investments in services sector. This article is a great example of a trading bloc and how nations that are a part of the trading bloc must agree on an agreements. Here, India is not negotiating with all 10 nations instead of just one. Combining all nations help strengthen all nations economically.

It is an article about the trade bloc created between Byelorussia, Russia and Kazakhstan. This Customs Union in its three-member format of Russia, Belarus and Kazakhstan still appears tiny beside the European Union, however countries like Kyrgyzstan and Armenia have declared interest in joining this group due to the energetic privileges that Russia offers to the countries members. One of the strongest points of this Custom Union is its large population that creates a big consumer market. On the other side the countries members of this block will have to accept the high interest rates of the Russian government. This article has a very good conclusion that I Would like to write down: ''The market is global but there is no global regulation,'' Valovaya says. The response has been a rush to recruit nations into regional trade blocs. It is a rivalry recalling the Cold War, but these new trade groups are mostly creedless structures, able to espouse little if any distinguishing ideology.

This is a perfect example of how a Latin American bloc that includes Colombia, Mexico, Peru and Chile on Thursday agreed to eliminate tariffs on most goods to promote free trade between the countries and increase exports to Asia. This is what the actual purpose of trade blocs are meant to achieve, an increase in the GDP of the country that will encourage better living standards and ways of life. The presidents of the four countries decided to remove tariffs on 90% of all goods and to eliminate duties on the remaing 10%. Increasing profits consequently leading to growth.

This article talks about the new monetary union between Kenya, Tanzania, Uganda, Rwanda and Burundi. Leaders of the countries have recently signed an agreement with the expectation that it will to boost the economy through the change of currency. That change would not only encourage the trade between the countries, but also would attract more investors. Kitariko,chief executive officer at African Alliance Uganda, said, however, that achieving a successful monetary union would require convergence of the union's economies, hinting that some challenges lay ahead.

This article shows how there are regional trade barriers within Africa.

The leaders of five East African countries signed a protocol on Saturday laying the groundwork for a monetary union within 10 years that they expect will expand regional trade.

This article is about the East African Community (EAC) choosing to pass a monetary union deal. The trade comprising of Kenya, Rwanda, Uganda, Burundi and Tanzania has decided to adopt a single currency for all the five countries. They plan to converge their currencies and establish a central bank, helping them to harmonize fiscal policies and increase commerce. Kenyatta, the leader of the biggest economy in the east Africa say that 'Businesses will find more freedom to trade and invest more widely, and foreign investors will find additional irresistible reasons to pitch tent in our region'.

The leaders of the Mexico, Colombia, Peru and Chile recently announced that they are finishing up their negotiations about the removal of the trade tariffs. The tariffs will be removed from 92% of goods, with most of the remainder disappearing over the next few years. Such legislation is expected to encourage a free trade between the countries of Latin America and be an example for the rest of the world. Ministers are seeking to push free market policies to spur growth, attract more foreign investment and integrate their capital markets and energy networks. Overall, free trade between the listed above four countries will result in lower prices of goods and services, better allocation of the resources and close cooperation of the economies.

United States proposed a Trans Pacific Partnership (TPP) with a goal of reaching a deal by year-end. The U.S. aims to discuss the trade deal with other nations during the World Trade Organization meeting. The TPP talks aim to establish a free-trade bloc that covers 800 million people, a third of world trade and accounting for 40 percent of the global economy. The goal is to promote remove trade protectionisms and also set standard for workers' rights, environmental protection and intellectual property rights. This article can be related to our topic this week as it involves trade protectionism. This TTP deal argues against protectionism measures as they believe the removal of protectionism will promote growth. For instance, Obama believes that more export will provide more U.S. jobs. On the other hand, opponents against the deal state that the deal will only provide multinational corporations powers against national policies in the name of free trade.

This is quiet a good example of how countries defend themselves from imports. In this specific case the USSR has haulted imports from Lithuanian of dairy imports, turning up pressure on the EU. Its haulted the trade because it fears that the imported goods arent up to quality or standard, but its also a strategical move as nearly 85% of all eastern blocs dairy exports go to Russia which would affect Russia's own local dairy production. This hault in imports creates loses for the overseas firms and alows Russian local firms to recover and gain the upper hand. Although its portrayed as a safety measure in the article i think its more a strategical move towards upping the Russian dairy industry!