Regional trading blocs

create distinction between those countries in your block, and those outside. By definition, this goes against the principles of free trade (no preferences).  This is often called a "two-tier" system, where there are two sets of regulations, tariffs and rules depending on whether you are inside or outside of the block. 

Examples include:

North America

• NAFTA

Latin America

• Mercosur

   

• Andean Community:   Venezuela joined the Andean pact in 1973, with the promise of reducing trade and investment barriers for regional partners, but increasing barriers for outside countries, and effectively isolating the group from the rest of the world.   This fit in nicely with the theory of "dependency", and the desire to be independent from outside influence.   The Andean Pact included Venezuela, Colombia, Ecuador, Peru and Bolivia.    (But, Venezuela dropped out in retaliation when Peru signed a free trade agreement with the USA)
• Union of South American Nations (União de Nações Sul-Americanas, Spanish: Unión de Naciones Suramericanas, and abbreviated as Unasur and Unasul)

Why its an issue?

With the failure of the Doha Round, the trading system in the 21st century will require substantial reform. The problems of the Doha Round and the proliferation of regionalism confront WTO members with many challenges.  We are moving away from the ideal of one single set of rules that would govern world trade, and toward a system of plularlism.  

Links from KookyPlan

• Doha trade round [edit] Delivering on Doha: Farm Trade and the Poor by Kimberly Ann Elliott
• TRIPS [edit] From Wikipedia: The Agreement on Trade Related Aspects of Intellect
• WTO [edit] ! WTO an international organization designed to supervise and liberalize inte

• Andean Community [edit]
• Mercosur [edit]
• NAFTA [edit]
• USA free trade agreements [edit]
• Union of South American Nations [edit]
• free trade movement slows down in 2008 [edit]
• regional trading blocks [edit]
• KORUS FTA [edit]

• China trade data [edit] 4/2008: Meanwhile China’s trade surplus with Europe is on the rise –
• USA free trade agreements [edit] USA Free Trade agreements see: US Trade.gov website updated inf
• USA trade data [edit] 2008 http://www.census.gov/foreign-trade/statistics/highlights/toppartner
• fair trade [edit] What is Fair Trade? see http://en.wikipedia.org/wiki/Fair_trade The
• free trade movement slows down in 2008 [edit] page director: Brian D. Butler contributors: if you are interested in contri
• international trade [edit] Investors: should watch carefully for changes in regulations. If local content
• terms of trade [edit] terms of trade, which are our prices relative to foreign prices.
• trade barrier [edit] Types of restrictions that limit international trade 1. Limits based on p
• trade deficit [edit] Trade Deficit A trade deficit occurs when a country imports more than
• trade liberalization [edit] USA Free Trade agreements see: USA free trade agreements
• trade weighted basket of currencies [edit] page director: insert your name here contributors: if you are interested in c
• world economy [edit] Main Industries (by country) This entry provides a rank ordering of indust
• tariff [edit] Tariff a tax on imported goods, which raises the price. This is one of t
• mercantilism [edit] Mercantilism related to colonialism * when Feudalism died, Mercantilism
• balance of payments [edit] Balance of Payments is like the overall balance sheet for a country. As the nam
• TRIPS [edit] From Wikipedia: The Agreement on Trade Related Aspects of Intellect
• globalization [edit] page director: Brian D. Butler contributors: if you are interested in contri
• import quota [edit] Import Quota restriction on the quantity of goods that can be imported.
• Entering the US market from overseas [edit] Entering the USA market see also: market entry , Marketing, stra