Regional free trade areas

Résumé du document

A Free Trade Area is an area in which tariffs among members have been eliminated, but members keep their external tariffs.

Can evolve in:

A Customs Union (FTA + common external tariffs).

A Common Market (CU + mobility of services, people, and capital within the union).

Complete Economic Integration (Integration on economic and political levels).

1991 : treaty of Asuncion
Mercosur's birth
•Free circulation of the goods
•Common commercial policy
•Coordination of macroeconomy
•Harmonization of legislation

Economy-The better allocation of means of production
•Wider scales of production
•A useful tool to strengthen and deepen the economic reforms intitiated by individual member states
•A higher degree of industrial complementarity
•Greater incentives to foreign investment
•Greater potential for the integration of small and medium-sized business into international trade
•Improve level of consumer welfare

Extraits

[...] Pros - Develop the region global economy economic growth - Increase production within the area - Lower prices of goods and services - Allow foreing exchange gains - Create jobs (Mexico, wester europe ) Cons - Increase regional economic instability (Greece depts crisis) - Increase pollution and environmental problems - More competitive environment - Less power of member countries as individuals - Destroy low paid jobs (France, USA ) Internet : Wikipédia www.mercosur.org www.sha.asso.fr/Pages/Latinissimo/Dossiers/Mercosur.htm http://www.iheal.univ-paris3.fr/mercosur/ http://www.universalis.fr/encyclopedie/n-a-f-t-a/ http://www.nafta-sec-alena.org/en/view.aspx http://www.fas.usda.gov/itp/policy/nafta/nafta.asp www.touteleurope.eu/fr www.curiosphere.tv/europe/ www.alternatives-economiques.fr www.courrierinternational.com Europe Books: International Business : The Challenge of global competition by D. Ball, J. Geringer, M. minor, J. [...]

[...] Definition Mercosur NAFTA EU A Free Trade Area is an area in which tariffs among members have been eliminated, but members keep their external tariffs. Can evolve in: A Customs Union (FTA + common external tariffs). A Common Market (CU + mobility of services, people, and capital within the union). A Complete Economic Integration (Integration on economic and political levels). [...]

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