it is a trade agreement between non-EU countries in South-Eastern Europe.

The member countries are:

Albania

Croatia

Kosovo

Macedonia

Moldova

Montenegro

Serbia

Bosnia and Herzegovina

all these countries joined CEFTA after 2002, even though it was estabilished in 1992 but all the original countries have left CEFTA after joining the EU. CEFTA also works as a preparation for the full EU membership.

Within these countries is a free trade area, which has positively affected Croatia as it can now trade more easily after joining CEFTA in 2003.

Croatia's economy suffered badly during the 1991-95 war as output collapsed and the country missed the early waves of investment in Central and Eastern Europe. However, since 2000, Croatia's economy started to improve with a steady GDP growth of 4% to 6%, driven by tourism and increased credit-spending. Nevertheless, difficult problems still remain, including a stubbornly high unemployment rate, a growing trade deficit and uneven regional development. however, the unemployment rate has decreased since 2003, from 21.7% to 11.8% in 2008.

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1 Bahrain

2 Egypt

3 Iraq

4 Jordan

5 Kuwait

6 Lebanon

7 Libya

8 Morocco

9 Oman

10 Palestine

11 Qatar

12 Saudi Arabia

13 Sudan

14 Syria

15 Tunisia

16 United Arab Emirates

17 Yemen

However the agreement only came into effect on the 1st of January of 2005.

The agreement states that each nation must lower its tariffs of goods by 10 percent annually. It also forces these nations to have an agricultural pact in which they share product standards. It encourages communication between nations; to liberalize both goods and services, even investments.

Saudia Arabia's GDP has exploded since Gafta was taken into effect. In 2006 GDP grew by 12.4 percent, to SR1.30 trillion ($346.9 billion). Compared to Saudia Arabia's GDP growth in 2002 SR707 billion in 2002, SR804.6 billion in 2003, SR945 billion in 2004 and SR1,157 billion in 2005. Gafta has had a positive effect on Saudia Arabia's GDP growth and economic developement.

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1 Bahrain

2 Egypt

3 Iraq

4 Jordan

5 Kuwait

6 Lebanon

7 Libya

8 Morocco

9 Oman

10 Palestine

11 Qatar

12 Saudi Arabia

13 Sudan

14 Syria

15 Tunisia

16 United Arab Emirates

17 Yemen

However the agreement only came into effect on the 1st of January of 2005.

The agreement states that each nation must lower its tariffs of goods by 10 percent annually. It also forces these nations to have an agricultural pact in which they share product standards. It encourages communication between nations; to liberalize both goods and services, even investments.

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Brunei Darussalam

Cambodia

Indonesia

Lao PDR

Malaysia

Myanmar

Philippines

Singapore

Thailand

Vietnam

The ASEAN is a free trade area in South East Asia. The agreement is formed so that it cuts tariffs on goods that are traded between member countries. This allows comparative advantage inside the FTA so every country can produce what it is best at producing, focusing on allocating its resources in the best use. The ASEAN also allows the free flow of investment. The ASEAN is now looking for FTA with larger countries and trade agreements such as China and the EU.

Vietnam, which entered the ASEAN after the Vietnam War is now a growing economy. It has profited from the ASEAN and has substantial exponential growth.

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The EEA is composed of the;

     EFTA member countries (except Switzerland)      European Union member-states

 Austria

 Belgium

 Bulgaria

 Cyprus

 Czech Republic

 Denmark

 Estonia

 Finland

 France

 Germany

 Greece

 Hungary

 Iceland

 Ireland

 Italy

 Liechtenstein

 Latvia

 Lithuania

 Luxembourg

 Malta

 Netherlands

 Norway

 Poland

 Portugal

 Romania

 Slovakia

 Slovenia

 Spain

 Sweden

 United Kingdom

The European Economic Area (EEA) came into being on 1 January 1994 following an agreement[1] between member states of European Free Trade Association (EFTA), the European Community (EC), and all member states of the European Union (EU). It allows these EFTA countries to participate in the European single market without joining the EU.

The EEA Agreement provides for:

• Participation in the internal market, with free movement of goods, services, persons and capital. This means that a product approved in one country under the common rules normally has to be accepted in the other 17 countries. Workers and students from other EEA countries are generally entitled to equal treatment with the nationals of the host country, including in the areas of social security and the recognition of occupational qualifications;

• Harmonisation of rules and requirements to which goods and services are subject for reasons of health, safety and environmental protection and to protect consumer interests;

• Common rules regulating competition, state aid and public procurement to ensure a level playing field for all enterprises competing in the internal market;

• Extensive co-operation in other areas of society, most importantly in research, education, environmental protection, consumer policy, cultural affairs, social policy, gender equality, tourism and small and medium-sized enterprises.

The EEA Agreement does not cover the EU’s customs union or its common trade policy with non-member states.

Iceland:

Iceland has been a member of EFTA since 1970 and has a bilateral Free Trade Agreement with the EEC since 1972. Most of Iceland’s economic and commercial relations with the EU are covered by the European Economic Agreement (EEA). It is in force since 1.1.1994 and extends the Single Market legislation, with the exception of Agriculture and Fisheries, from the EU Member States to Norway, Iceland and Liechtenstein. Through the EEA Agreement, Iceland also participates, albeit with no voting rights, in a number of EU Agencies and programs, covering i.a. enterprise, environment, education and research programs. Iceland also, along with its EEA/EFTA partners, contributes financially to social and economic cohesion in the EU/EEA. Trade in fish products is governed by Protocol 3 of the 1972 bilateral agreements and Protocol 9 of the EEA agreement. Currently the duty free entry of fish products covers over 90 % of Iceland’s exports to the EU.

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What kind of trading bloc is it?

It strives to create a common market, as it removes barriers to trade between the countries, has common tariffs and wants to establish a common currency and central bank.

Which countries are involved?

All countries in Africa except Tunisia, Mauritania, Algeria, and Western Sahara.

What’s the impact on this country’s economy from joining the trade bloc?

Egypt:

-developed energy market based on coal, oil, natural gas, and hydro power.

-he IT sector has been expanding rapidly in the past few years

Libya and Chad import very much electricity. By removing the trade barriers and tariffs on electricity, Egypt’s economy greatly benefits as exports increase, and therefore GDP (C+I+G+X-M) also increases.

As we saw in Egypt there was much construction in Cairo. This shows that Egypt is developing, maybe even faster than other African countries. The AEC helps Egypt develop faster and more efficiently by trading goods and services within the continent, and providing access to the least cost centers of production. For all the construction for example, Egypt needs a lot of cement and natural resources like oil and gas. Egypt’s economy will be greatly positively influenced, and will find that it can grow and develop more easily with this beneficial access.

The AEC also has an influence of lowering tariffs between Egypt and countries outside of the AEC, due to the common tariffs that come with the creation of a customs union.

As can be seen from Egypt’s GDP in the recent years, it has experienced such economic growth, as expected from the influence of the union.

2006: 375.7$ Billion grew 7.2% in 2008

2007: 405.9$ Billion

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Members of the ASEAN:

Brunei

Indonesia

Malaysia

Philippines

Singapore

Thailand

Vietnam

Aims: The ASEAN refers to Association of southeast Asian Nations. It is a free trade area who's goal is to create a stable, prosperous and highly competitive region in which there is a free flow of goods, services, investment and a more open flow of capital. ASEAN also wants this economic development to equitable in order to try and reduce poverty and socio-economic disparities by the year 2020.

The free trade area between ASEAN nations is known as the AFTA. It's purpose its to promote the region's competitive advantage if producing as a single production unit. The AFTA is completely tariff free for the member countries in order to try and promote greater economic efficency, productivity and competitiveness.

Interesting Statistics:

We data below shows the improvement ASEAN brought to these nation toward a freer economy.

• 99% of the products of the first members of ASEAN ( Brunei Darussalam, Indonesia, Malaysia, Philippines , Singapore and Thailand) have been reduced to no more than 5 % .

• More than 60 percent of the products have zero tax.

• The average tariff has been brought down from 12% to 2 % today.

Benefits of a member nation: Thailand

By having joined ASEAN Thailand saw a great improvement of its economic status, especially after the ASEAN- China free trade agreement.

This free trade agreement allowed Thailand to experience of 986 percent of fresh longan exports, 21.850 percent! For durian exports , 1911 percent for mangosteen and 150 percent for mango.

Singapore:

Has experience a 10% increase in GDP in 2000. Also the GDP per Capita has increased from 25219US$ to 26564US$. Singapore has also experienced an increase in literacy.

Clearly ASEAN has helped these countries economy overall welfare grow.

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Member states: All member of the EU (Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy Latvia, Lithuania, Luxembourg, Malta, Netherland, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom) and

The members of the EFTA (Liechtenstein, Iceland, and Norway

Switzerland (not part of the EFTA)

What type of trading bloc and its agreements:

This is an example of common market. There are Four Freedoms, which summarize the agreements between the countries:

• The free movement of consumer goods;

• The free movement of labor and citizens, and freedom of establishment;

• The free movement of services;

• The free movement of capital.

Impact the trading bloc had on one member (Bulgaria):

The impact which The EEA trade agreement had on the Bulgaria, it was a former part of the Soviet union, and now it has to option to trade with wealthy countries in the West.

It now has: increase in trade, increase competition (increase efficiency, efficient firms will gain from the new opportunity for trade , more unemployment in the SR, but a gain in GDP in the LR).

The EEA increases competition, specialization and allow and increase in economies of sale. It also factors of productions and resources to move in between countries, so they can be allocated to their best use. This improves the efficiency and drives down cost, as there is more competition.

Exports – commodities:

clothing, footwear, iron and steel, machinery and equipment, fuels

Exports – partners:

Turkey 11.5%, Germany 10.3%, Italy 10.2%, Greece 9.1%, Belgium 6.2%, Romania 4.9% (2007)

Imports – commodities:

machinery and equipment; metals and ores; chemicals and plastics; fuels, minerals, and raw materials

Imports – partners:

Russia 12.3%, Germany 12.3%, Italy 8.7%, Ukraine 7.2%, Turkey 6.9%, Greece 6.2%, Romania 4.5%, Austria 4.3% (2007)

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- This East African community is a customs union in East Africa and it was signed in 2000. They plan to become a common market by 2009.

- This customs union was actually founded on 1967 but then collapsed in 1977 , it was officially brought back in 2000.

- Was a free trade first

- Became a customs union in march 2005

- In 2008, the EAC, after negotiations with the southern Africa development community(SADC), and the common market for Eastern and Southern Africa(COMESA) agreed to an expanded free trade are including the member states of all three.

- Hope for single tourist visa/ east African shilling: plans for common union

- Under the terms of the treaty, Kenya, the regions largest exporter, will continue to pay duties on its goods entering the other four countries until 2010, based on a declining scale. A common system of tariffs will apply to goods imported from third party countries.

- Has increased GDP of the countries, but unfair to Tanzania as it has more land than all the others combined.

- Kenya's involvement in the EAC has helped with meeting the Kyoto protocol.

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SACU currently has five members:

* South Africa

* Botswana

* Lesotho

* Swaziland

* Namibia

Namibia Trade Policy Review:

Trade liberalization and investment promotion constitute key elements of Namibia’s trade policy framework and her development strategy. The following are the main objectives:

- Promotion and further liberalization of trade;

- Expansion of exports and diversification, in terms of both products and markets;

- Provision of tax-based incentives for manufacturing enterprises and exporters;

- Support to small and medium-size enterprises (SMEs); and

- Creation of an environment conducive to investment and growth.

- The corporate tax rate have been reduced to 35%;

- No income tax is payable on dividends accruing to resident shareholders (with the exception of some building societies’ dividends of which only one third is tax free);

- Non-resident shareholder tax (withholding tax) has been reduced to 10%;

- Plant machinery and equipment can be written off over a period of only three years; and

- Buildings can be written off over 20 years, with 20% depreciation allowed in the first year.

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Cambodia

Indonesia

Lao PDR

Malaysia

Myanmar

Philippines

Singapore

Thailand

Vietnam

The ASEAN is a free trade area which was established in 1967 by Thailand, Indonesia, Philippine and Singapore. Their goal was to accelerate their economic growth and to develop the infrastructure so that the nations had a foundation for their economic growth. This provided a peaceful environment in the rather unstable area. Also they established between them a free trade area, a free flow of investment and they have struck trade agreements with other countries such as China and the EU.

As Singapore has in the alliance form the start it has felt its full effects which have lead it to an economic boom. In the last twenty years their level of education increased and with that the literacy rate also increased this is due to the growth in GDP Singapore is experiencing in 2000 they had a 10% growth rate which is remarkable for an city state that just became independent last century. Also the GDP per Capita has increased from 25219US$ to 26564US$. Even though these numbers seem small the relative wealth is great enough for most of the population to be middle class. So the ASEAN has clearly contributed a great deal to the growth of Singapore.

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Members:

Fiji, Papua New Guinea, Solomon Islands (FIC – Forum Island Countries), Tonga, Tuvalu, Western Samoa, Cook Islands, Kiribati, Niue, Australia, New Zealand

Type: Free Trade Area

Goals:

This trade agreement was more of an attempt for the bigger countries to try to export their goods to all the surrounding small-island countries. The agreement states that the FIC have to eliminate tariff barriers. The agreement should overall try to also make it fair for the small islands even though it clearly mostly helps the producers of the big exporting countries like New Zealand and Australia.

Impact on FIC:

Bad because the elimination of tariffs will lead to imports of vast amounts of goods from the larger countries in the agreement such as New Zealand and Australia making it very hard for domestic producers to compete. At the same time, consumers will get better prices for these goods, increasing their surplus. Problem would be if the country does not have enough goods produced that the other countries don’t produce as they won't be able to export anything to gain revenue.

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Members include:

Burundi

Kenya

Uganda

Rwanda

Tanzania

The East African Community (EAC) is an intergovernment Customs union. The Treaty for Establishment of the East African Community was signed on 30th November 1999 and entered into force on 7th July 2000 following its ratification by the Original 3 Partner States – Kenya, Uganda and Tanzania. The Republic of Rwanda and the Republic of Burundi acceded to the EAC Treaty on 18th June 2007 and became full Members of the Community with effect from 1st July 2007.

The EAC aims at widening and deepening co-operation among the Partner States in, among others, political, economic and social fields for their mutual benefit. To this extent the EAC countries established a Customs Union in 2005 and are working towards the establishment of a Common Market by 2010, subsequently a Monetary Union by 2012 and ultimately a Political Federation of the East African States.

CA Trade Hub has helped to develop a common interface between Kenyan & Ugandan customs systems to share and store information to meet international standards as per World Customs Organization rules in the Revised Kyoto Convention

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12 South American countries will be involved in the Unasur trading bloc when it comes into effect in 2009, they are as follows;

1. Argentina

2. Bolivia

3. Brazil

4. Chile

5. Columbia

6. Ecuador

7. Guyana

8. Paraguay

9. Peru

10. Suriname

11. Uruguay

12. Venezuela

These 12 countries represent all the countries in South America except for French Guyana. Unasur is an intergovernmental union formed through the merger of two established customs unions (Mercosur and the Andean Community). Unasur is based on the EU; the leaders of Unasur plan to have a common currency, parliament and passport system1.

The countries involved have a GDP of 2,349 billion dollars (nominal, 2007 IMF est.). The total population of the countries involved is 384 million, and the countries cover an area of 17.7 million square kilometers. It is the world’s foremost agricultural producer2. One of the main goals of Unasur is the elimination of tariffs by 2019 between member states.

Although Unasur is not yet established it is possible that it might have a similar effect on Brazil as the creation of Mercosur did in 1991. Mercosur helped brazil curb its trade imbalance by placing tariffs on non-mercosur goods and helped to make Mercosur members relatively more competitive through the following means

“These measures are: (a) the elimination of export subsidies; (b) the restoration of the "statistical rate" of 3 per cent on non-MERCOSUR imports; and (c) an increase in tariffs on capital goods from 0 to 10 per cent and on telecommunications equipment from 2 to 10 per cent. In April 1995, Brazil adopted a number of measures to stem the surging tide of imports (cumulative trade deficit between November 1994 and April 1995 of US$4.4 billion) as follows: (a) a 32 to 70 per cent increase in tariffs on 109 products (mainly automobiles and durable goods); (b) tariff reduction for a number of products to alleviate inflationary pressures; (c) broadening of the list of exceptions from 300 to 450 products for one year; and (d) the recent establishment of an import quota on cars to 5 per cent of national production, or 85,000 units per year.”

However these measures were intended to be temporary.

Trade within the countries increased drastically, from “ US$4.1 billion to US$10.7 billion” from 1990 to 1994. “In the areas of food, textiles, plastics and construction materials, partnerships have been set up between Brazilian and Argentine producers.” as well as other partnerships which act to encourage specialization among the member states. Tourism and foreign investment into Brazil has also increased drastically. Additionally, in “Brazil, [...] the introduction of the "Plan Real" in July 1994 reduced inflation sharply from a monthly level of over 40 per cent up to June to less than 6 per cent in July and under 4 per cent from August through December.”3. Brazil received perhaps the greatest benefit from Mercosur relative to the other participants.

1. http://tinyurl.com/6lw6a8

2. CIA World Factbook 2005, IMF WEO Database, IMF nominal figures for 2006

3. http://www-old.itcilo.org/actrav/actrav-english/t…

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European Economic Area:

Austria

Belgium

Bulgaria

Cyprus

Czech Republic

Denmark

Estonia

Norway

Poland

Portugal

Romania

Finland

France

Germany

Greece

Hungary

Iceland

Italy

Slovakia

Slovenia

Sweeden

Ireland

Leichtenstein

Latvia

Lithuania

Luxembourg

Malta

Netherlands

UK

The European Economic Area Agreement is also known as the "Internal Market" – a free trade area, which goods, people, services and capital can move around freely. It was introduced the 1st January 1994, bringing together 27 EU countries and 3 EFTA countries. This agreement does not cover the EU's customs or monetary union.

This agreement could bring great benefits to all the countries involved. Goods, services, people and capital would be able to move around freely therefore trade barriers were removed, decreasing prices and allowing "bilateral trade" to occur. France, for example, benefitted from this agreement as it now has many immigrants and goods from other countries that have helped its economy to grow, by allowing french labour to free up in places in which they are best suited for.

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